Month: November 2016

A primer in free market economics: property, markets, prices, labor, competition, cooperation, etc. .. Read his book, “Economics in One Lesson” to get the full treatment ..

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“Henry Hazlitt (1894-1993) was the great economic journalist of the 20th century. He is the author of Economics in One Lesson among 20 other books.”

The Five Institutions of the Market Economy | Henry Hazlitt

Let us see what the basic institutions of the market economy are. We may subdivide them for convenience of discussion into (1) private property, (2) free markets, (3) competition, (4) division and combination of labor, and (5) social cooperation. As we shall see, these are not separate institutions….

https://fee.org/articles/the-five-institutions-of-the-market-economy/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+FEE-Freeman+%28Foundation+for+Economic+Education+-+The+Freeman+Latest+Articles%29

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These things will continue to happen as long as money is backed by debt ..

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““The idea of a dollar shortage sounds strange to many observers,” Jim Rickards concedes. “Didn’t the Fed print $3.4 trillion of new money from 2008–2015? How could there possibly be a dollar shortage with that much new money around?””

“The answer, says Jim, is that the world created new dollar-denominated debt faster than the Fed created money. Every dollar printed by the Federal Reserve has been lugging around a 20-fold pyramid of debt on its back.”

“That means the monetary machine cranked out over $60 trillion of new dollar-denominated debt from 2009–2015. Much of it ended up overseas.”

““This huge debt pyramid was fine,” Jim adds — “as long as global growth was solid and dollars were flowing out of the U.S. and into emerging markets.””

“But under current market conditions — what Jim calls “growth depression,” with a “technical recession looming” — servicing debt could become an impossible burden. A stronger dollar means dollar-denominated debt is more expensive. And debtors don’t have the dollars to pay back those debts. Hence, a dollar shortage.”

“Jim says this “mismatch” between all that dollar-denominated debt and the investment flows needed to service them speeds the global economy toward crisis:”

“It raises the prospect of a new liquidity crisis and financial panic worse than 2008… There are not enough dollars to go around. The losses will be enormous… We are closer to the stage (last seen in September 2008) where “everybody wants her money back.” When that happens, there’s never enough money.”

“Everyone wants their money back at once, and it’s just not there. Then they default on their own obligations. And so on. And so on.”

The Coming Dollar Shortage

Is the Fed about to drag the world into another financial crisis? How can there be a dollar shortage?. Brian Maher has the answers…

https://dailyreckoning.com/coming-dollar-shortage/

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Rushna

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Get a grip .. Your minds are slipping away .. Once you go down that rabbit hole, there’s no coming back to sanity ..

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Reality Check: Why The Media’s Claims That the “Alt Right” are all White Supremacists is Wrong

https://www.youtube.com/watch?v=U9u8IiDbhm4

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Those rates are low or negative not because the market has set them at that level, but because central banks have short circuited the market buying all the debt and have driven rates that low ..

In the event that the central banks perceive inflation, stop buying the debt with new dollars, and allow rates to rise, it isn’t at all clear that the market will step in to buy the debt at these low or negative rates ..

As it stands right now, most of the debt outside of the US is bought by Japan, China, Saudi Arabia, and so forth .. These countries buy the debt because they have a surplus of dollars from the trade imbalance with the United States .. If we impose tariffs on them, balance out the trade, and sop out their dollar surpluses, they too will cease to buy treasuries, leaving the Fed in a peculiar position of having to buy all that debt with new money .. I guess the hope is that the US consumer will instead step in to buy that debt .. But that’s a hard sell considering that the US consumer will have to buy US products at inflated prices ..

I’m not at all convinced that these guys understand what they’re doing with their mercantilist trade policies and keynesian spending proposals ..

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“Like [Andrew] Jackson’s populism, we’re going to build an entirely new political movement,” he told The Hollywood Reporter. “It’s everything related to jobs. The conservatives are going to go crazy. I’m the guy pushing a trillion-dollar infrastructure plan. With negative interest rates throughout the world, it’s the greatest opportunity to rebuild everything. Shipyards, iron works, get them all jacked up. We’re just going to throw it up against the wall and see if it sticks. It will be as exciting as the 1930s, greater than the Reagan revolution – conservatives, plus populists, in an economic nationalist movement.”

“If we deliver we’ll get 60 percent of the white vote, and 40 percent of the black and Hispanic vote and we’ll govern for 50 years,” he said. “That’s what the Democrats missed, they were talking to these people with companies with a $9 billion market cap employing nine people. It’s not reality. They lost sight of what the world is about.”

Steve Bannon: ‘I’m Not a White Nationalist… I’m an Economic Nationalist’’

President-elect Donald Trump’s chief strategist tells The Hollywood Reporter: ‘The globalists gutted the American working class.’

https://www.usnews.com/news/politics/articles/2016-11-18/steve-bannon-im-not-a-white-nationalist-im-an-economic-nationalist

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Racism is finally over .. Kanye would have voted for Trump ..

Kanye West Confesses at Concert: ‘I Would Have Voted on Trump’

“I told you I didn’t vote,” Kanye admitted to the SAP Center audience. “But if I voted, I would have voted on Trump.”

http://www.billboard.com/articles/news/7581276/kanye-west-confesses-at-concert-i-would-have-voted-on-trump

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Bank opening ..

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“Modi dropped a bombshell on Nov. 8 by abolishing 500 and 1,000 rupee notes that accounted for 86 percent of cash in circulation. The move was aimed at cracking down on the shadow economy but has brought India’s cash economy to a virtual standstill.”

“Farmers have been left stranded as traders have no cash to pay for their produce, while millions of Indians lined up outside banks and post offices for the ninth day to exchange old banknotes or withdraw rationed money from their accounts.”

“Many of India’s 260 million farmers have no bank accounts and depend on local money lenders to fund sowing, which means those that have to borrow to sow winter crops like wheat or rapeseed could face debt trouble without a good harvest.”

Day 1 of the banks opening

Poor, desperate people, whom the government treats like slaves or perhaps insects. Somehow these people have been brainwashed into thinking they live in a fr…

https://www.youtube.com/watch?v=EM1tmm-X6pQ

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India has banned all currency denominations above 100 rupees ($1.50) .. Hahahaha .. I love central planning .. How are Indians reacting you ask? Let’s watch ..

Uncertainty has gripped the populace.

Not everyone is capable of grasping the situation and dealing with it.

https://www.youtube.com/watch?v=5BaPyOgdphU

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