If we are facing in the right direction,
all we have to do is
keep on walking.
Buddhist Proverb
Shot of the Day at the Fed
I've been repeatedly saying similar things, e.g., if we could simply monetize the debt, why bother taxing the people? From Tyler Durden of Zero Hedge:
What is amusing, is the constant state of shock of supposedly serious people who are stunned that despite the Fed being constantly in the markets, and buying up trillions in securities, the US economy has not responded in a favorable manner. Of course, nobody has pointed out that if all it took to generate growth out of thin air without consequences was for the Fed to print, i.e., monetize debt, this would have started 100 years ago in 1913, and by now the US economy would be so advanced it would be colonizing Uranus. Logic, however, is not a Keynesian economist's best friend.IPPON! Look at all the economic growth from Greenspan and Bernanke's easy money policies since 2000:
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| Via Zero Hedge |
As for me, I've made it clear that I want none of them. I don't want an activist money printer--or anyone with his or her hands dirty over the bubble-generating Fed policies over the past generation. I still think Yellen has the inside track; after all, Obama chose her to succeed Kohn as vice chair in 2010. Here's an interesting Washpo piece on why the White House might pass over Yellen. However, realizing that Obama is not about to nominate a monetarist or an Austrian School economist, Obama could do worse than nominate Stan Fischer, Helicopter Ben's PhD adviser at MIT whom has plenty of experience at the IMF and running Israel's central bank.
Pittsburgh--Ticketing Residents for Parking in Their Own Driveway
HT CBS via Libertarian Republic
How bad off is Pittsburgh that ticket-quota cops are harassing homeowners parking in their own driveways within 30 feet of the curb:
“We’re no longer allowed to use our driveway to park, because of a law that says you have to park at least 30 feet away from the street,” said Freedman. She says there wouldn’t be space to park 30 feet back between her home and the neighboring one because it’s just too narrow. A pregnant mother of seven who lives across the street is trying to follow the rule, but can’t get out of the driver’s side of her van anymore. She has to crawl out of the passenger’s side when she parks the vehicle between her home and her neighbor’s./
Rand Paul Continues to Impress...
I think the reason this image appeals to me is because I recently condemned Obama in similar terms, being the prosecutor, judge and jury of other heads of state (i.e., Assad of Syria).
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| Via The Libertarian Republic |
Obama's Hypocritical Environment Agenda and Double Standards: Big Wind Power vs. Conventional Power
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| Courtesy of wattsupwiththat HT Carpe Diem |
Some Cautions to Perky Economics
It's not just the Carpe Diem blog; Roger Altman in a recent Time piece put the best face forward on the miserable reality of this jobless, low-growth recovery. (Yes, Altman does pay lip service to the labor rate participation problem and other stagnating issues in income, net worth and/or demographic participation, but it's clear that he thinks a surging economy is in the cards and will alleviate these issues).
Any investor reader realizes that bond yields pushing up have had a negative effect on REIT's in general over the past few weeks. Refinancing applications have dropped off by up to two-thirds over the summer leading in the announced layoffs of thousands at big banks like Wells Fargo and Bank of America.
Charles Hughes Smith, via Zero Hedge, points out some pessimistic trends in employment:
- Though the 3-year average annual change has improved to near-zero, the 5-year (i.e. longer-term trendline) is still solidly negative.
- Decline of full-time jobs and the rise of part-time jobs
- Stagnation of high-wage employment and increases in lower-wage job sectors.
He points out that job postings for higher-income positions in healthcare, IT, manufacturing and education are starting to correct, while postings are up for lower-income/lower-skill jobs in hospitality, transportation and retail.
Political Cartoon
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| Courtesy of Henry Payne and Townhall |
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| Courtesy of Steve Kelley and Townhall |
Lionel Richie, "Say You, Say Me"
