Economy

QE3: A Nice Kickback For Bankers

Merely two weeks after Ben Bernanke announced one more round of quantitative easing (QE3), the results are already becoming apparent. And once again, it shows how the culture of “too big to fail” is both immoral and economically devastating.

The immorality of QE3 can be summarized by this quote, from Businessweek: “It’s very good to be a mortgage originator right now,”

Gosh, I wonder why? Is it perhaps because QE3 is benefiting banks/bankers…to the detriment of everyone else? But I thought our president wanted the top 1% to “pay their fair share”! So how do bankers and loan originators end up cashing in on yet another bailout? Yes, I realize I shouldn’t be shocked by a politician saying one thing…and doing the opposite. But I am.

Since images often speak louder than words, here’s an illustration of why it’s “…very good to be a mortgage originator right now”.

This is what Bernanke imagines QE3 is doing:

And here is what is ACTUALLY happening:

I rest my case.

More about libertarianism, fusionism, and the Romney campaign

Jason Pye has written a great blog post about libertarians and the Romney campaign already. He asked me my opinion about it, perhaps even with the possibility of a “point-counterpoint” sort of thing. I pretty much agree with what he’s saying, particularly about Ron Paul and the Libertarian Party. We are not a monolithic group; we are a very wide and very diverse range of individuals who just want to increase individual liberty.

What I want to add is that, while Republicans and conservatives complain about us, and want us to support them in elections, they have done nothing to earn such support. Let me show you a few examples:

To which I responded with:

And to which I got this response:

“No More Solyndras?” Well, maybe just one more…

DemsGOP_energy.jpg

House Republicans have recently put forward a new bill, H.R. 6213, otherwise known as the “No More Solyndras Act.” It was passed by the House Energy & Commerce Committee on August 1st, and sounds quite promising when you consider the colossal mistake that Solyndra, supported by federal loans, was. It’s estimated that taxpayers will lose over half a billion dollars on Solyndra, which went bankrupt last year. Preventing that from happening again is a great idea.

Unfortunately, the Republicans backing this bill are not really saving you from another Solyndra, or Beacon Power, or Abound. For the “No More Solyndras Act” leaves a gaping hole—as in, everything before December 2011 is still totally cool.

See, it’s “No More Solyndras,” not “No Solyndras.” As the text of the bill makes plain, the Act only prevents new applications from new companies, not applications from ones “grandfathered” in:

Occupy DC Infiltrated, Calls for Violent Revolution

Occupy Wall Street - what’s that?  They’ve gone away, right? They haven’t.  They’re regrouping and preparing to ramp up.  Nick Tomboulides, Andrew McCaughey, and Danielle Saul recorded some remarks made by Mike Golash, former President Amalgamated Transit Union, Local 689, and others at a OccupyDC meeting held August 19, 2012.

They are not hiding their goals anymore - and no matter what your stance on the current state of our government, what is being said here should shock all patriots.

GOLASH: Progressive labor is a revolutionary Communist organization.  Its objective is to make revolution in the United States, overthrow the capitalist system, and build communism.  We’re trying to learn something from the historical revolutions of the past, the Russian revolution, the Chinese revolution, the revolutions in Cuba and Eastern Europe.

What can we learn from them so we can build a more successful movement to transform capitalist society?

The “historical revolutions of the past” don’t include the American Revolution - a revolution which created true freedom and prosperity and has been a model for such - but includes revolutions in which dictators were created who brutally tortured and slaughtered millions of their own people?

Regulatory Compliance Costs Don’t Always Have a Dollar Figure Attached

Cross-posted from Friction Tape.

Francois Hollande

Recently elected socialist French president François Hollande.

While I’m not sure I always buy whole-hog the amorphous concept of “regulatory uncertainty,” brought on by the administrative state, as a catch-all explanation for everything wrong with the private sector and our nation’s current unemployment crisis, a fascinating Bloomberg Businessweek Global Economics feature from May 2012 looks at French labor policy (emphasis mine):

[France] has 2.4 times as many companies with 49 employees as with 50. What difference does one employee make? Plenty, according to the French labor code. Once a company has at least 50 employees inside France, management must create three worker councils, introduce profit sharing, and submit restructuring plans to the councils if the company decides to fire workers for economic reasons.

French businesspeople often skirt these restraints by creating new companies rather than expanding existing ones.

Hey, Let’s Not Nationalize Facebook

Dislike (Radiant)

There are dumb ideas…and then there are really dumb ideas. And then there are, so to say, Congressional politicians. We’re not quite at that level yet, but it seems like it. I am of course, referring to a rather silly piece in Slate magazine titled “Let’s Nationalize Facebook,” written by one Phillip N. Howard, a professor of communications and information technology from the University of Washington. His reasons for doing so are:

Over the last several years, Facebook has become a public good and an important social resource. But as a company, it is behaving badly, and long term, that may cost it: A spring survey found that almost half of Americans believe that Facebook will eventually fade away. Even the business side has been a bit of a disaster lately, with earnings lower than expected and the news that a significant portion of Facebook profiles are fake. If neither users nor investors can be confident in the company, it’s time we start discussing an idea that might seem crazy: nationalizing Facebook.

Sentences I Hate: “Americans Are Hungry for Leadership.”

Cross-posted from Friction Tape.

By United States Congress [Public domain], via Wikimedia Commons

The Wall Street Journal editorial board today floats House Budget Chairman Paul Ryan as the best possible vice presidential running mate for presumptive GOP presidential nominee and former Massachusetts governor Mitt Romney:

The case for Mr. Ryan is that he best exemplifies the nature and stakes of this election. More than any other politician, the House Budget Chairman has defined those stakes well as a generational choice about the role of government and whether America will once again become a growth economy or sink into interest-group dominated decline.

Against the advice of every Beltway bedwetter, he has put entitlement reform at the center of the public agenda—before it becomes a crisis that requires savage cuts. And he has done so as part of a larger vision that stresses tax reform for faster growth, spending restraint to prevent a Greek-like budget fate, and a Jack Kemp-like belief in opportunity for all. He represents the GOP’s new generation of reformers that includes such Governors as Louisiana’s Bobby Jindal and New Jersey’s Chris Christie.

As important, Mr. Ryan can make his case in a reasonable and unthreatening way. He doesn’t get mad, or at least he doesn’t show it. Like Reagan, he has a basic cheerfulness and Midwestern equanimity.

Freedom isn’t just economics, it’s a story too

Usually, when we argue for the cause of freedom and liberty, we do so by engaging in arguments using economics. The broken window fallacy, third-party payer problems, supply and demand, etc. They do work, to an extent, and they are good tools. But they aren’t the only tools in the basket.

My good friend Sean Malone, the Director of Video Production* over at the Charles Koch Institute, has put together a new series of videos for the Economic Freedom Project, which tell the stories of small business entrepreneurs who are forced to survive in an environment marred by over regulation, cronyism, corruption, and a far too large business. The first had yours truly as a video assistant, which really meant that I went into the break room to steal the “guest only” Coke Zeros for Sean. But don’t tell anyone.

We have to remember that we’re not fighting for liberty just because it’s more economically efficient, or that it fits some philosophical message. (Well, it does, but…) We’re doing it because there are people out there, people who are legitimately suffering from too much government and not enough freedom. If more Americans see this—hell, if more homo sapiens see this—then maybe they will wisen up and realize that the “1%” or whomever is the target of today’s Two-Minute Hate is not some intangible, inanimate object, but is in fact a real human being, and deserves to be treated as such.

That’s what really matters. And that’s what we need to be telling people.

Timid Mitt: Romney Unable or Unwilling to Fight Back

Mitt Romney

Over the last few weeks, the Obama campaign and their friends in the main stream media have had a field day.  First, going after Romney for having a Swiss bank account and several offshore accounts.  This line of attack, has been followed by a relentless series of attacks over exactly when Mitt Romney left Bain Capital.

Both of these attacks were opportunities for Romney and his campaign team to turn the tables aggressively on Obama and on the media.  At a time when unemployment remains over 8% and with our nation teetering on the verge of fiscal collapse, the Obama/media fascination with the minutiae of Mitt Romney’s background is an example of grotesque political slight of hand.  It is the ultimate distraction from the issues that matter most.

Unfortunately, Mitt the timid and his camaign have - so far - failed miserably at fighting back.

On the issue of the offshore accounts, why didn’t Romney come forward and say “yes, I had accounts in Switzerland and the Cayman Islands, but guess what?  There is absolutely nothing illegal about these accounts and, indeed, these accounts are the product of an overly complex and uncompetetive tax code that Obama and Democrats are hell bent on defending!”

On the issue of when he left Bain, why hasn’t Mitt and his campaign said “who cares!?”  What if Romney was still at Bain after 1999?  Does that suddenly change Obama’s failed record as President?  Does that suddenly balance our budgets?  Does it suddenly create jobs?  Of course not.  Why in God’s name is the Romney campaign taking the bait on these distractions?

If Mitt the timid thinks he can just run out the clock and win this election, he is sorely mistaken.  The Obama campaign has shown how ruthlessly it will distort and distract, and Obama has the giant megaphone of the main stream media as his willing accomplice.

Profiles in Liberty: Grover Norquist, Anti-Tax Warrior

As a long-time leader in the conservative movement, Grover Norquist of Americans for Tax Reform become famous in recent years for his Taxpayer Protection Pledge.

The Pledge, which was rolled out in 1986 with the endorsement of President Ronald Reagan, requires office holders to oppose increases in the marginal income tax rates (personal & business) and to vote against any net reduction or elimination of deductions unless the changes are matched, dollar for dollar, by further reducing tax rates.

With signers in every state, more than 1,100 state officeholders, from state representative to governor, have signed the Pledge. Liberals and wayward Republicans blame it (and Mr. Norquist personally) for deadlock in Congressional budget debates.

Mr. Norquist is also involved in many center-right organizations, such as the National Rifle Association, the American Conservative Union, ParentalRights.org, and GOProud. He is also a Contributing Editor of The American Spectator.

Recently, Mr. Norquist co-wrote a book with Professor John Lott, Debacle: Obama’s War on Jobs and Growth and What We Can Do Now to Regain Our Future. It is a brilliant take down of President Obama’s radical policies, and you should buy multiple copies today.

With a dry sense of humor, Mr. Norquist tweets @GroverNorquist.

Grover Norquist


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