Recession Here We Come

When are people going to wake up that liberalism and socialist democracy don’t work?

At http://www.kitco.com: Comex gold pops higher following fresh batch of weak US economic data. Thank you, Ben!!!

Liberal Logic 101:

Picture the Titanic. If the Captain had called for “full speed ahead” and rammed the iceberg a second time, not only would the ship not have sunk, it would have become more efficient and more luxurious!

Geithner and the Bernank are stealing your savings as we click-clack.

Absolutely not, Ted. It rather proves that corporate socialism which has dominated much of the 20th and this the beginning of the 21st century does not work. We have not had a truly free market economic system. rather, we have had a system over-regulated by the Federal Government which rewards businesses that it likes, and penalizes those which it doesn’t like. This is particularly true in e energy industry where coal and nuclear power plants are penalized, but useless solar and wind energy subsidized while natural gas reaps profit hand over fist. If the regulatory playing field were leveled, and fossil fuel, nuclear power, solar and wind generators were held to the same standards of cleanliness and emissions (yes, solar and wind pollute tons of heavy metals to the environment) without any government subsidy, nuclear would win hands down because one eraser sized pellet of uranium equals tons of coal and tens of thousands of cubic feet of natural gas. But Government interferes. So you’re 100% incorrect on this score. We do NOT have a free market system.

How would you know, Ted? We haven’t had it in this country since 1965 and only in limited fashion since 1932.

How can people protect their savings from the license taken by B & G under Obama?

“There is no free market.  The stock and bond markets are puppets dancing on the Fed’s strings.”

That’s why whenever anyone claims that unfettered Capitalism caused this, I just want to scream! We are NOT a Capitalist society, but a Corporate Socialist one and have been for at least the last few decades if not past century since FDR’s New Deal.

That little part about fdic ending soon is very not little. Then, what to do? Be like a the squirrels?

After trying to understand, for a long time, statements like “Oh, Patty, we’re not in business to make money.”, this may be it. Corp. socialism v Capitalism. Is it?
Would that be a something a well compensated corp. socialist would say when looking at the loss on a tax return? Is it that individual responsibility for a business is removed to corporate oblivion?

I have ever failed to understand how anything but pure capitalism works. Profit and wise husbandry are the purest motive of business. Time and money driving out waste of either are the marks of a business that works – sort of on par with good household budgets.

It seems to a bookkeeping cash flow brain that the corp. socialist format is susceptible to varieties of grave dishonesty and theft. So, the .gov is both of and for well paid mismanagement specialists with no responsiblity to we the taxpayers or to we the people in its care because it’s so complicated that they get away with it?!.

Mike Flynn at “Big Government.”

“Make no mistake, the deteriorating economic situation is the result of Obama’s policies. Since the end of the recession we’ve had massive stimulus, auto bailouts, cash for clunkers, ObamaCare, Dodd Frank and a host of new regulations. We have also been promised a huge tax increase should Obama win reelection. If you were intentionally trying to trigger a recession, you’d be hard pressed to come up with more effective policies.

“Obama’s reelection campaign is predicated on the myth that the economy, while weak, is steadily improving. It isn’t–at all. Come November, Obama ought to take his rightful place in the unemployment line.”

“Pure economics is without morality (and to me that also means godless), whether it is pure capitalism or pure socialism. And the line between pure capitalism and pure socialism is a continuum. The only thing we argue about is where on that line we should be at any point in time. ”

In Quod Apostolici Muneris, Pope Leo XIII was very clear about where on that line we should be:

http://www.vatican.va/holy_father/leo_xiii/encyclicals/documents/hf_l-xiii_enc_28121878_quod-apostolici-muneris_en.html

well this article wasn’t filled with any hyperbole now was it?

This may be insane – that is submitting a note for the 5th time and expecting a different result. I don’t suppose it was Einstein who said something like “this could be a hole with no bottom,” but I feel compelled to answer Paul WP, Mac (as I see you called), T Shaw (yes, I just turned 65) and add a note to my prior comments:

1) I studied economics as a science at The George Washington University. Science is amoral (as is God’s universe). I think you can check with Galileo on that. Ayn Rand promoted laissez-faire economics, which is not real world, but is a science. She may have overstated her case, but who doesn’t in today’s day and age when that is what it takes to make your point.

Consider that if you are going to do an experiment to test the result of radiating some organic compound, you can’t throw a handful of carbon on the compound in the middle of the experiment or you corrupt your science.

Same with economics. If you are going to make what is in your wallet your ration book you can’t throw guilt or conscience or compassion into the middle of the transaction and use it as some form of payment. Forget feelings, you can’t even inject an Arab oil embargo, such as we had in the 1970s, and expect valid scientific results.

2) I learned economics as a philosophy (amongst a bunch of liberals who I respected immensely – their social attitudes didn’t impact their economics) at the Bureau of Economic Analysis (BEA) using matrix algebra to forecast the US economy. I studied the US economy in several hundred pieces and tried to forecast the interaction of those several hundred pieces with each other. An example of two among those hundreds of numbers might be the buy/sell statistics of the auto industry with the steel industry. This was the advent of computers and the accurate mathematics was simply impossible before it could be programmed into a mainframe. Vassily Leontief got the Nobel Prize in 1973 for coming up with the idea. I grooved on that stuff for several years! But got my comeuppetance when the Arabs embargoed oil. After all exogenous variables cannot be forecast, and an arbitrary stoppage of a major import/export defines exogenous.

I’m not advocating anything. I’m just pointing out that the economic poligy decisions are not simple. There probably isn’t any “right” answer. As for Leo XIII, I have a backlog or JP II’s encyclocials, so I haven’t read too many of Pope Leo’s lately. I suspect he was not too specific on where on the continuum between pure capitalism and pure socialism we should be. I believe he was condemning Marxism and government control of “production, distribution and exchange.” (ah – John McKendrick would be proud that I remembered that definition). The solution of course comes from Christ – “. . . love God with your whole heart and your whole soul and your whole being . . . love your neighbor as yourself. . .” I don’t think of that as ambiguous, but go ahead and try to be specific about where that falls on the continuum and then repeat that it isn’t ambiguous. It seems He, with a capital, wants us to figure it out.

Getting back to Obama and his worshipers: as an trained economitrician, i. e. economist specializing in statistical methods, (former – or should I say archaic), as an entrepreneur (former) as a small business owner (former), as an employee (21 years) of a fortune 100 company (retired), as a landlord of low income property (sold in 2009), as an investor (current); as the wearer of many hats over half a century I truly believe that job creation by people in all of the above enumerated positions are what we need today and that won’t happen until the people in those positions, whether at your local ice cream parlor or at Coke, can forecast what their liabilities are in creation of those jobs. “Trust me” as repetitively uttered by Obama doesn’t do the trick.

Well I might advocate something. Back at BEA when our econometric models didn’t give us the results we expected we always looked for what we were missing; what we didn’t understand, or hadn’t included. We constantly teased about getting the “correct” results by simply including “Phaniglier’s variable constant.” If we simply added, subtracted multiplied or divided by it we always came out perfect (a smile is solicited!) That is what we see in politics today, included in EVERY statistic, and it isn’t even limited to the politics of economics!. I think of it more simply as lying.

Anybody ever read “The Begatting of the President”? — It was a take off of the bible. Chapter 1, Verse 1: “In the beginning LBJ created the Great Society.” (but I’m old, I could be wrong). Wish I still had a copy but it got lost in a move somewhere. There was a good line about Eisenhower and his propensity to play golf. The essence was that sometimes it is about what presidents (and even more so the congress) don’t do, such as screw with the economy, which are important, not what they do. It also had a line about Humphrey being “defeated by the jawbone of an ass.” Hope Mitt doesn’t meet the same fate.

Thanks for letting me vent.

Mary De Voe, read Daniel chapter 4. Nebuchadnezzer was called by God to deport the rebellious children of Judah into exile for their sins. But he filled with pride and as chapter 4 explains was made to eat grass like an oxen for 7 years, himself for that period exiled from his own throne, until he repented and acknowledged the supremacy of the Lord God Almighty. We have a God who does not change and who always does the right thing in the right way every time. What happened to arrogant Nebuchadnezzer can happen equally well to Barack Hussein Obama. God will not allow arrogance to go unchecked forever.