A MarketPlace of Ideas                        

"Washington has cut off credit to small business and are channeling the money into big government, big banks, and big corporations," he claims. "It's almost a contemplated attack on small businesses] by Washington and it's having its effect."

The the interview with Aaron Task here.

The chinese are getting better every day that passes.  Good music with the free expression of an idea.  Very good sign indeed.   Article explaining lyrics here.

This snip is from:  http://dailyreckoning.com/the-wants-and-fears-of-george-soros/

To understand the speech, one must know what the wants and fears of George Soros are. In my book, Endless Money (John Wiley & Sons 2010), I develop a unique perspective on the topic of liberal billionaires such as Soros and Buffett. Specifically, I argue that their vested interest in maintaining the trend towards socialism and feeding its insatiable appetite with voluminous money creation through bank lending preserves a tax structure that imperils the middle class and results in unprecedented accumulation of wealth among the super-rich. Billionaires love a system in which banks double the money supply every seven years through issuing credit-backed currency, because it sets asset prices on an upward trajectory. More than half of wealth accumulation of the super-rich comes from this rather than accumulated net income or the earning of ordinary income, and this rise in net worth is generally untaxed since it is unrealized. And not to worry – it can be monetized free of taxation through manageable amounts of borrowing at government-suppressed interest rates and even hedged out with derivatives.

The interesting part that I had not foreseen was how billionaires can put their hands on unrealized gains of physical assets by borrowing against them.  Things make alot more sense now!

Making quick moves and while not waiting to see the results of previous moves is the mark of an inexperienced amateur.  They are excitable and anxious because they are doing something new.  Sounds like Obama to me.   But you alread knew that he was nothing but be a community agitator before election.  After election we have this typical flailing behavior of a newbie.    Democracy is a business just like everything else in the world.   If you do not run it right you put it out of business.

That is ObamaFish for you!

Do you trust government?   

Do you think Rand Paul was wrong when he said the civil rights act of 1964 theoretically goes too far when it bans discrimination in a private business?  If you do then you are substantively against private property rights.   Keep that in mind as you watch Broken Rainbow.  Had the Navaho and Hopi been treated according to the morality and legal philosophy of a libertarian they would have been compensated for their land.   Instead we played by the rules of the Neofeudalist class.   Since Navaho and Hopi did not have many votes to offer they were run over.   By not believing in private property and libertarianism you open the door to all manner of "sharp operators".  Many of whom end up in the United States Government.

Note when watching this video that the left romanticize primitive cultures and would have you believe several obviously false things.  They would have you believe had the native americans not been hoodwinked by actors in the U.S. Government and Peabody coal that they would have refused to allow mining on their land.  This is a tall assumption.   A more plausible reality is that the price paid by Peabody and company would have risen to market value and the Navaho and Hopi would have sold out sooner or later. 

The left sees opportunity in people treated shabbily.  However their eyes are always on making names for themselves or opening new territories in legal standing and representation.  This is not unlike opening wide open frontier land with little competition.  What would you expect? So many of them are lawyers.  If they do not see a chance for recovering on your claim you will get very little love from them.

   Note:  May 24, 2010

   LIBOR = London interbank offered rate 

   According to Spengler if LIBOR hits the 2 year US Government bonds rate they are going to get hit badly.  Quoting Spengler:

• If LIBOR continues to creep up and reaches, say, 75 bps, it no longer will be economical for banks to own US 2-year notes. In that case the US Treasury market will be in trouble. That’s when you head for the bomb shelter.
  
• Short 2 year notes
  

I know the people in the financial centers of NYC and London like to auto exalt.  They think the only valuable thinking goes on in financial centers because usually that is where the ideas catch on and go big time.  Nouriel Roubini gets much of the credit for foreseeing the financial crisis of 2008 and included the cause in his predictions.  The great financial centers like to pretend that other prognosticators do not exist.  Very convenient but what is the truth?

Reality?  Any one of the rusty pickup truck millionaires in the midwest of the USA could have told you just about everything this guy told you about the housing crisis and subsequent sovereign debt crisis.   The shame is they knew there were problems long before Roubini did.  The minute the crisis shows any signs of abating the lessons of the crisis will be lost again.  Worse yet the lessons of the rusty pickup truck millionaires about how to live, be happy and have a healthy economy will be ignored.   

In the economy of ideas we are headed down a path where we attempt to control the collective mind of humanity.   I can not condone this.  The video Rip – remix manifesto makes this point very well.

…..that said ….the documentary Rip – remix manifesto misses the point in the end using somewhat worn out dated leftist tropes.  They posited that Brazil has a political equivalent of "remix".  I spend alot of time in Brazil I can squarely tell you their form of government is nothing but the politics of the self centered corrupt left.  There is nothing forward looking about it. The joke in Brazil goes is that the corrupt politician steals 90% of project budget wonders how the USA does so well.  The punch line is when the American politician tells him he only steals 10 percent.

Gonzalez was in Argentina as a student when the crash came.  He saw the nation go from what appeared to be prosperous to one with hyperinflation.  Later he was in Iraq and saw how make work projects distorted the local economy and left people worse off than before by introducing distortions into the economy.  Highly recommended that you listen to this interview.

Charles Goyette interview with Edward M. Gonzalez.

The experiences detailed by Gonzalez are too important to risk loss due to other websites removing pages.  Thus I have a locally stored copy of the Goyette interview of Gonzalez here.

Related Links

• http://www.edwardmgonzalez.com/