Surely it is the inalienable right of every citizen to go to hell in his own way.
- Michael Know Beran
Bush Third Term
Just so we are clear...
10 years ago
Thursday, November 5, 2009
Wednesday, November 4, 2009
We're Gonna Need Reagan Back Soon
This is a slightly disturbing group of statistics. Will we see the formation of another Soviet Union. Unlikely given the expansion of the European Union, but discontent breeds revolution. A quick end to the recession in the Eastern Bloc would help raise these numbers some, but the fact that the public's view of democracy and capitalism has fallen so drastically in several years indicates that there is a more deep-seeded problem than the current recession.
Tuesday, November 3, 2009
The G-20 Meeting - Archer Daniels Midland Report
The current economic crisis is endangering the American way of life. Following the bursting of the housing bubble, the credit crisis and the collapse of the investment banking industry, both the American and World economies have been left in turmoil. In order to alleviate the financial burden on the American population and specifically the American farmer, Archer Daniels Midland has developed a plan to calm the recession and restore the American economy to its pre-recession levels.
The most important thing for the American government to do currently is to allow the United States dollar to fall relative to other currencies. The current account deficit that we currently run with China and the overall trade deficit we run worldwide are detrimental to the American economy. By allowing the dollar to slide relative to foreign currencies, American exports will become more competitive with foreign goods, specifically, the American agricultural goods cultivated by the American farmer. As the backbone of the United States spirit and an important part of the economy, agricultural exports rising are beneficial to the economy on the whole.
In addition to allowing the dollar to slide, the United States government must lower corporate taxes. The current restraints on corporate profits such as the capital gains tax and other windfall profit taxes take money out of the economy that could be used in reinvestment in the United States economy. By lowering these and other corporate taxes, the American corporation would be free to invest in new technology, increase employment and generate more revenue. Coupled with a sliding dollar, the amount of American exports would skyrocket, putting the United States trade deficit in the past.
Increasing the amount of agricultural subsidies given to United States farmers and agricultural exporters would stimulate the economy and allow both consumer and corporate spending to increase. With increased capital flow, the American farmer can reinvest that money in ways beneficial to the United States economy. Whether it is the purchasing of a large investment such as a new combine or reaper, or something on a smaller scale such as supporting local businesses, increased subsidies for the American farmer would put money back in the economic circle. Similarly, increased subsidies for agricultural corporations such as Cargill and Archer Daniels Midland would reinvigorate the American economy. Investment in new agricultural procedures and equipment on a large scale would add capital back into the economy, and allow the business cycle to again grow.
The final step in improving the current economic situation is the Federal Reserve maintaining the current interest rates. Low interest rates promote economic investment and boost the amount of capital in the economic cycle. The money multiplier effect is utilized much more efficiently when money continues to flow in and out of banks. The amount of loans being offered currently could reinvigorate the American economy across the board, not only in the agricultural sector.
The most important thing for the American government to do currently is to allow the United States dollar to fall relative to other currencies. The current account deficit that we currently run with China and the overall trade deficit we run worldwide are detrimental to the American economy. By allowing the dollar to slide relative to foreign currencies, American exports will become more competitive with foreign goods, specifically, the American agricultural goods cultivated by the American farmer. As the backbone of the United States spirit and an important part of the economy, agricultural exports rising are beneficial to the economy on the whole.
In addition to allowing the dollar to slide, the United States government must lower corporate taxes. The current restraints on corporate profits such as the capital gains tax and other windfall profit taxes take money out of the economy that could be used in reinvestment in the United States economy. By lowering these and other corporate taxes, the American corporation would be free to invest in new technology, increase employment and generate more revenue. Coupled with a sliding dollar, the amount of American exports would skyrocket, putting the United States trade deficit in the past.
Increasing the amount of agricultural subsidies given to United States farmers and agricultural exporters would stimulate the economy and allow both consumer and corporate spending to increase. With increased capital flow, the American farmer can reinvest that money in ways beneficial to the United States economy. Whether it is the purchasing of a large investment such as a new combine or reaper, or something on a smaller scale such as supporting local businesses, increased subsidies for the American farmer would put money back in the economic circle. Similarly, increased subsidies for agricultural corporations such as Cargill and Archer Daniels Midland would reinvigorate the American economy. Investment in new agricultural procedures and equipment on a large scale would add capital back into the economy, and allow the business cycle to again grow.
The final step in improving the current economic situation is the Federal Reserve maintaining the current interest rates. Low interest rates promote economic investment and boost the amount of capital in the economic cycle. The money multiplier effect is utilized much more efficiently when money continues to flow in and out of banks. The amount of loans being offered currently could reinvigorate the American economy across the board, not only in the agricultural sector.
Monday, November 2, 2009
Krugman: What a dick. Smart, but a dick
Krugman: The Return of Depression Economics and Crying
Paul Krugman’s newest book, The Return of Depression Economics and the Crisis of 2008 offers historical accounts of previous 20th century international economic crises as well as a breakdown of the rudimentary causes of the current global financial crisis. While his breakdown of these calamities is wonderfully orated through language more in tune with the economic layman such as a wonderfully picturesque and simple baby-sitting cooperative model, in the end he offers no very specific cures for the current crisis.
The historical perspective offered on the previous financial crises is extensive, covering the Latin American, Japanese and Asian economic crashes of the 1990’s. The similarities between all of these crises and the current economic situation are readily apparent, whether it be the inability of current American monetary policy to make any significant dent in the recession much like the Japanese were unable to do in the 1990’s or the arrival of a currency crisis similar to the one that plagued Argentina in 2002. However apparent these may be, the pontifical manner in which Krugman continues to state that indicator signs were “generally ignored” gives this book a patronizing feel.
His arguments for the initial causes of the incident are the most relevant to understanding the current financial crisis, for without knowledge of the problem a solution cannot be reached. Krugman’s analysis that there are four distinct causes of the current crisis appears to be accurate. The bursting of the overvalued housing market, the lack of regulation in the shadow banking industry that led to 21st century bank runs, a monumental currency crisis and the lack of the Federal Reserve Bank to gain any hold on the recession through monetary policy all appear to be sound explanations for the current economic slump. However, the remedies for each of these problems that he offers are not only flawed in themselves to an extent, but also unrealistic.
Krugman’s main idea for an economic revival basically comes down to support for a massive bailout. However, the roughly $800 million dollar bailout that was the brainchild of the Obama administration appears to be not drastic enough for Krugman, as he would like a capital infusion more along the lines of $2 trillion dollars. In this book, he comments on the prevalence of economic corruption that can occur with government economic involvement, but apparently he believes that the United States is a corruption free zone. Naïve, to say the least. In addition to his stimulus endorsement, Krugman wants stringent fiscal regulations imposed on the shadow banking industry. What is already apparent to the observant is that the shadow banking industry is dead, and that regulation on the remaining shadow banks would kill they rest of them, as it would drive down profit margins. With firm regulations in place, an entire sector for economic growth would die.
Ultimately, Krugman gives every indication of being a pompous wretch, viewing himself as a beacon of intellectual light that was ignored. Rather than simply offering solutions to the current problem (he spends only 7 ½ pages on this in a 191 page book) he wags his proverbial finger at the economic elites that have in his mind contributed to this crisis, all the while claiming, “I told you so”.
Paul Krugman’s newest book, The Return of Depression Economics and the Crisis of 2008 offers historical accounts of previous 20th century international economic crises as well as a breakdown of the rudimentary causes of the current global financial crisis. While his breakdown of these calamities is wonderfully orated through language more in tune with the economic layman such as a wonderfully picturesque and simple baby-sitting cooperative model, in the end he offers no very specific cures for the current crisis.
The historical perspective offered on the previous financial crises is extensive, covering the Latin American, Japanese and Asian economic crashes of the 1990’s. The similarities between all of these crises and the current economic situation are readily apparent, whether it be the inability of current American monetary policy to make any significant dent in the recession much like the Japanese were unable to do in the 1990’s or the arrival of a currency crisis similar to the one that plagued Argentina in 2002. However apparent these may be, the pontifical manner in which Krugman continues to state that indicator signs were “generally ignored” gives this book a patronizing feel.
His arguments for the initial causes of the incident are the most relevant to understanding the current financial crisis, for without knowledge of the problem a solution cannot be reached. Krugman’s analysis that there are four distinct causes of the current crisis appears to be accurate. The bursting of the overvalued housing market, the lack of regulation in the shadow banking industry that led to 21st century bank runs, a monumental currency crisis and the lack of the Federal Reserve Bank to gain any hold on the recession through monetary policy all appear to be sound explanations for the current economic slump. However, the remedies for each of these problems that he offers are not only flawed in themselves to an extent, but also unrealistic.
Krugman’s main idea for an economic revival basically comes down to support for a massive bailout. However, the roughly $800 million dollar bailout that was the brainchild of the Obama administration appears to be not drastic enough for Krugman, as he would like a capital infusion more along the lines of $2 trillion dollars. In this book, he comments on the prevalence of economic corruption that can occur with government economic involvement, but apparently he believes that the United States is a corruption free zone. Naïve, to say the least. In addition to his stimulus endorsement, Krugman wants stringent fiscal regulations imposed on the shadow banking industry. What is already apparent to the observant is that the shadow banking industry is dead, and that regulation on the remaining shadow banks would kill they rest of them, as it would drive down profit margins. With firm regulations in place, an entire sector for economic growth would die.
Ultimately, Krugman gives every indication of being a pompous wretch, viewing himself as a beacon of intellectual light that was ignored. Rather than simply offering solutions to the current problem (he spends only 7 ½ pages on this in a 191 page book) he wags his proverbial finger at the economic elites that have in his mind contributed to this crisis, all the while claiming, “I told you so”.
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