We're Not Greece; We're Not Portugal!

Presented without comment.  (But a background for those that don't follow, Greece is in an economic meltdown, Portugal is not that far behind them, and Ireland is in very similar position). 

Black & Decker: Crony Capitalism Comes to Maryland

What's that you say?  We have a budget deficit here in the State of Maryland?  Oh, we just raised the alcohol tax?  Other fees and taxes were raised?  You say that we are probably destined to getting hit with tax increases during the special session for gerrymandering this fall?  However, Stanley, Black & Decker of Towson is getting a favorable loan from Maryland and Baltimore County to "spruce up their campus?" 

It's so nice to see crony capitalism at work here in Maryland.  If the company can afford to make the payments on the note, plus the interest, why can't it afford to make the improvements without the aid of the state.  Surly the Fortune 500 company could tap the open market for debt, but perhaps the interest rate from the state and the county is more favorable?

Nothing like some good old vote buying huh? 

Sprawl of the Slums

Author's Note:  This is months old, but just now getting around to releasing it.  Hope it was worth the wait.

If you have ever visited FerFAL's blog (old or new), he has many times talked about the plight that is a socioeconomic collapse of society due to government mismanagement and rampant inflation.  With this, comes things like urban slums, shanty towns, squatting and other forms of communal ownership of property that may or may not be through purchase or legal transfer. 

From Business Insider comes an article that highlights slums from around the world via sat photos.  (A USA version of this article can be found here). 

At any rate, FerFal is always talking about slums and the disease, filth, and crime that comes with them.  These sat photos certainly put the towns into perspective from a geographical stand point.  Any person with common sense an a basic understanding of demographics would quickly assume that crime is a problem, but so too there would be an environmental impact as well.  When population densities hit multi-thousands of people in put a few square miles (or kilometers), no wonder FerFAL often writes about trash, poor drinking water, and waste water and sewage problems.

These pictures have to call into question the claims of environmental-wackos that economic growth is what contributes to pollution and green house gases.  Just looking at the population densities and to know what countries these slums are in, it isn't hard to see that there is a negative environmental impact associated with recessions or depressions.  Which, if we extrapolate our common sense thinking, means that economic growth and sound private sector business profits fund the tax coffers which help governments to pay for environmental "mitigation" projects as a way to find balance between business and planet.

I'd say that these type of slum cities are worse from an ecological health stand point.  I can only imagine that when you have population densities this high in cities that are marginally 1st world countries, the lack of  running water and the waste water control are probably BIG problem.  Not to mention the amount of physical refuse that is generated and probably just piled around without collection and safe disposal.  I would also venture to guess that since these kind of places don't have much in the way of central planning and zoning, meaning that none of these cities manages their storm water runoff to account for erosion and sediment (thus impacting downstream health).

While environmentalism push groups like to clamor that the USA and it's consumption is the problem, in reality, first world countries that have economic might, can do some good for the environment through conservation projects.  Obviously, we can sit here and debate about tax revenues and proper use thereof, but the point being, economic growth allows a population to take into account some projects of nobility to preserve open space and the environment.  That is something of a contradiction to my limited government stance, but there is no reason that the government and business can't co-op to be able to achieve a mutually beneficial society.  The problem is, as is exampled here, unchecked growth is a negative to eco-health, but unchecked government intervention (and crony capitalism) can cause an economic decline that allows for a degradation of society into the cheapest means of living, often resulting in the most egregious, negative environmental impact. 

As an avid hunter and sport fishermen, no one understands more the balance that is necessary to the survival of the human populace and the planet as we know it.  The problem that is generated by those on the left is there outright assault on economic and human progress in the "name" of the planet.  After all, the unintended consequences of protectionist environmental practices and ineffective monetary policy can be and are, quite catastrophic. 

Generic Trader's Desktop

From ZeroHedge and John Lohman, the generic Trader's Desktop.

Side note: I hate it when Excel or another piece of productivity software automatically fills patterns for you, thinking it is smarter than you. 

Click through for the full size and description. 

W00T! We're Number 1 In Something! (Wine Sales)

Take that Frenchies!  We're a Number 1 producer of something! 

1000' Zones: Fail at Food Distribution Too

 One thousand foot zones are good for more things than just guns apparently (sorry that this is a month old).

Seems as though Old El Passo (not the salsa or taco brand) has a thing against mobile food vendors and thus prohibits them from stopping to do business within 1,000 feet of any brick and mortar restaurant.  Regardless of the insanity of preventing free enterprise, perhaps one could find a way to incorporate the "bicycle lunch" whereby people have to pedal to transact for their meals.  Think about the business opportunity as customers get exercise for free while they pay you for their lunch.  It's a win-win for the customer as they get a BOGO.

Something tells me though, vending beer to someone on a bicycle could create a potential liability for DUIs.

The Crazy Cunucks are Ahead of US?

Well, when it comes to the free market, yes, those crazy northern neighbors that say "Eh?" are ahead of the United States.  Seems that our free market economy is now the 9th most free in the world. 

Ninth?  The worlds biggest economy is not the most free?  According the Heritage Foundation's Index on Economic Freedom, we are behind Hong Kong, Singapore, Australia, New Zealand, Switzerland, Canada, Ireland, and Denmark.  DENMARK?  CANADA?!?  Whiskey Tango Foxtrot! 

These nations all outscored the U.S. across ten categories, including taxes, free trade, regulation, monetary policy, and corruption.

As the article continues, it seems that the top ten ranking is only by the skin of our teeth.  We beat out No. 10 Bahrain by one tenth of a point and No. 11 Chile by four tenths of a point.  (Yeesh, what a rough crowd to be thrown in with.)  Breaking down the results in further detail, the study shows that the world's poorest nation, Rwanda, is advancing by jumping to the No. 75th rank from 93 in the year prior.  A backwards, poor nation is better able to advance it's personal freedom, opportunity and hope for it's citizens in one year while we continue a slide?  Just how far has the US slid into the doldrums of ineptitude? 

Facts remain, that until we can become more like (shudders) Rwanda and move away from big government and big regulation, big bureaucracy, our economy will not right itself.  There is hope, yes that's true, but we have to fix the mess in Washington first, before we can actually start to solve our own house. 

Helo Ben Says "Dollar System Flawed" = "Say Good Bye to Soverignty"

Even though Thanksgiving was last week, we find something to be thankful for every day of the week.  Today, I say that I am thankful for the internet (for as long as it remains free of FCC regulation, which is a story for another day).  It is not hard to find an absurd story (or ten) every day via my Google reader, and thus they turn into blog material for you, the dear reader.  So, yes, I am quite thankful for the internet as a facilitator to why we can better educate one another, chart history, and add in some common man's sense and perspective every now and then.  Ultimately, it means that we the people get our say in what is news and what is not news, instead of being spoon feed the garbage by the cable news networks or the lame stream media. 

As the headline of this post depicts, this is a story that almost no American media outlets reported.  While I've hinted at the US economic leadership engaging in trade wars in prior postings (mainly from Zero Hedge), this is one for the record books.  Helicopter Ben has basically said outright, expect tariffs, quantitative easing / dollar devaluation, and any other radical efforts to get trade to rebalanced through out the world.  If read correctly, and as Robert Morley pointed out, the meaning of Ben's speach is that is China to be blamed for all the trade problems in the entire world. 

Huh?  Did I just read that right?  Bernanke just blamed China for the irrational exuberance in the United States that has persisted for the better half of the last century?  Now, we want to pick a trade war with our largest non-Federal Reserve debt holder?  Seems like a wonderful way to achieve that trade re-balancing now doesn't it?  Of course, while the Fed's printing processors tack on more zeros by the millisecond to the green back's money supply, the Fed's chairman is out shouting from the roof tops that we need a new internationally run money scheme that will help solve the imbalance of trade.

“As currently constituted, the international monetary system has a structural flaw,” said America’s chief banker. The dollar system is broken. “It lacks a mechanism, market based or otherwise, to induce needed adjustments by surplus countries, which can result in persistent imbalances” (emphasis mine throughout).

So, we need a new system, one that would be run by the IMF or potentially the United Nations, which will effectively force United States citizens into the servitude of the international bankers and politicians?  Sorry, not on my watch.  Color me a bit of a gold bug, but isn't that exactly why the United States had the gold standard?  Money at a fixed rate that was mean to prevent the manipulation of the money supply that has led to these "persistent trade imbalances?"  I'll save you from looking if you didn't already know that the answer was yes. 


Look, the short answer to these problems is, start spending less, fix the structural problems in our own economy (over taxation, over regulation, and over indebtedness) and world trade will fix itself.  We are seeing an end to the great world experiment with socialism and welfare and perhaps even fiat money.  Personally, I say, GOOD RIDDANCE!  It's time that we found out what things are really worth, and how the individual can pay for the things he wants and needs.  If that's too hard on people, well, too damned bad. 

Oh, and Helo-Ben, why don't you stop trying to piss of the largest external bond holder in the world?  They can certainly fight this trade war better than you, and I wouldn't put it passed them to be ready to do exactly that! 

Bank of Ireland Art Sale

What happens when a state run bank needs money?  Simple, it sells off its physical assets?  Except, that's not why the art collection is being sold.

Instead of using the proceeds of such a sale to cover operating expenses in the Irish budget or the bank's budget, or as a reduction to the nation's debt, the money will be used to fund art initiatives throughout Ireland.  "So, screw austerity!  We'll just use the proceeds of an art sale as a transfer of wealth." 

Not even the people of Ireland are fooled by this egregious act according to the Telegraph's article.

"The banks have mismanaged everything for the last 12 years. Why should we now entrust them with this collection?" asked Gemma Mastroianni Carroll, one of a group of protesters outside the hotel. "These are valuable assets for our future. The banks will default, and they will leave this country with absolutely nothing."

While she is right in that the banks will default, what is it to say that her government won't do the same?  Considering all signs point towards a sovereign debt default in Ireland coming to a precipitous in 2011, the sale of a few pieces of art into the hands of private collectors is probably the least of the worries by any government officials. 

It certainly makes me wonder just how much fine art and antiques exist inside the halls of the US Federal Reserve, and just how much it is worth and how much us taxpayers have paid for it's procurement.

State Tax Climate: Where's Your State Rank?

If you're in my state of Marylandstan, we rank 44th over all!  A breakdown between sales tax and personal income tax shows there is a vast disparity between the two methods of taxation.  My state has a fairly decent sales tax ranking of No. 11 but the disgusting, punitive income tax rank of 49th is only one away from worst!  Further still, the study from the Tax Foundation for 2011 fiscal year says we've gone from 25th to 44th in the course of 5 short fiscal years. 

Before someone shouts that one of those year's was under the leadership of Bob Ehrlich, you are correct, it is!  And he left us @ number 25 in the country.  Not the worst, not the best, we were average.  Something to be happy with in life.  However, under the dictatorship of Martin Owe'Malley, we've flunked to 44th!  The 12th percentile of success where 100% is the best! 

I am not sure why anyone in their right mind would vote for someone that has effectively run us into the ground from average to a miserable fail in four short years, but then again, that is the Maryland voter. 

Tuesday my friends!  Tuesday!  Vote early and often! 

California Welfare Follow Up

From the American Thinker this week, we get a similar story of UK welfare waste.  Click through to the UK Daily Mail's story on how a women from England earns roughly $65,000 a year and has never worked a day in her life.

As opined above, these programs are the true costs of our economic undoings.

QOTD: Lasting Recession Effects

A joint IMF-ILO report said 30m jobs had been lost since the crisis, three quarters in richer economies. Global unemployment has reached 210m. "The Great Recession has left gaping wounds. High and long-lasting unemployment represents a risk to the stability of existing democracies," it said.

The study cited evidence that victims of recession in their early twenties suffer lifetime damage and lose faith in public institutions. A new twist is an apparent decline in the "employment intensity of growth" as rebounding output requires fewer extra workers. As such, it may be hard to re-absorb those laid off even if recovery gathers pace. The world must create 45m jobs a year for the next decade just to tread water.

Today's quote comes from an article written by the best journalist on the planet, Ambrose-Evans Pritchard.  While I do not welcome prolonged employment mediocrity, I do welcome the skepticism of our government overlords, the world over.  Our US system of government was born out of skepticism and our overall distrust of the officials who had been entrusted to treat us as ends in ourselves.  Today, that skepticism is returning and people have to look into the hearts and minds of those in power and see where things are headed. 

Hopefully, the keepers of the US Republic have been awakened enough to change our course towards moderation and balanced budgets and away from irrational exuberance.  Obama was correct in running on change, because change we have got, and change will continue to come. 

America Not Immune to Hyper-Inflationary Risk

As usual, Zero Hedge has a great article shared off their site today.  Derailed Capitalism's "How Hyper-Inflation Will Happen," is a must read for everyone if you're concerned about dollar risk and potential economic / US Treasury bond meltdown. 

Agonizingly well thought out and mind blowing in terms of the "scary" level, if you are still skeptical as to how hyper-inflation will occur in the USA, this will get you off the fence and into prep-mode.  Take a good 15 minutes to read and digest this piece, it's highly worth it.

Helo Ben's Facebook Page

Zero Hedge has been doing a series of artist renderings of political and economic leadership's "desktops" lately.  Yesterday, they took it a step further and did a rendering of Helicopter Ben Bernake's Facebook profile. 

The rendering comes from William Banzai who's blog is full of financial parodies and is worth a look for the (un)amusing factor.  Meaning, that the pics are so satirical, that they portray the reality that the political and economic leadership don't want us to know (hence why they are "un"amusing). 

Enjoy and happy hump day. 

HI JAPAN! We're You're Newest Lost Decade Member

Seems that Kansas City Fed President, Thomas M. Hoenig, is concerned we could be seeing the beginnings of a Boom Bust cycle much like Japan has experience for the last two decades.  The inflation hawk is concerned that free money is deteriorating the underlying structure of the US economy, and could stoke future inflationary challenges. 

In other words, Hoening isn't telling us anything we didn't already know, but just happens to carry some extra clout as a Fed member.  I wonder how many Yuan I can get for my thousands of dollars in about five years, perhaps I should purchase them now.

Summer of Recovery: For Everyone but American People

While the American Regime is busy spending your tax dollars on "Summer of Recovery," from AKFan we get that in reality, your tax dollars are being spent to ship high tech jobs over seas.  Precisely the jobs that the President claimed to be for keeping here and now he is apparently against keeping them here?  Twenty-two million dollars is being pushed to an initutive to better train approximately three thousand IT specialists in  South-Asia. 

Further evidence that the President could care less about the American public and their plight to crawl out of the double dipping recession. 

Read about it here.

Be More Like Germany?

While, admittedly, I despise most of Europe for their historical nonsense and disdain for individual freedom, it's a sad state of affairs when the New York Slimes economists are saying we need to be more like Germany. 

Excerpted:

IN many countries, including the United States, there are calls for the government to spend more to jump-start the economy, and to avoid the temptation to cut back as debts mount.

Germany, however, has decided to cast its lot with fiscal prudence. It has managed rising growth and falling unemployment, while putting together a plan for a nearly balanced budget within six years. On fiscal policy and economic recovery, Americans could learn something from the German example.

Yikes.  The NY Times saying we need to follow fiscal solvency plans?  Enter Seinfeld Bizzaro World.