Do no Harm

A Do-Nothing Congress as reported in TheUpshot by Derek Willis has me in pig heaven.  The last thing we need is more legislation, especially in finance. Good on you Congressamn Jeb Hensarling of Texas.

Sisi of Egypt

Egypt Scrambles to Raise Voter Turnout is hilarious if it weren't tragic. That the military backed government thought a one sided election with a majority of voters feeling disenfranchised would be a popular success is an indication of the closed end reality loop they are operating in.  In none of the commentary, however, has there been any mention of the economy. It appears to this observer that Egypt will remain a paternalistic crony capitalist haven without the courage to get rid of subsidies and embrace a free market economy.  Until Egypt entertains the Chicago Boys the prospects are dismal.

A Beautiful Deleveraging

How the Economic Machine Works by Bridgewater's Ray Dalio has an interesting take on rich versus poor and the social upheaval that comes from a depression.  The presentation ends with the idea of a beautiful deleveraging, where money is kept in good enough supply to allow growth without inflation.  It is what we are experiencing now.

28 May 2014 Comment

The rise is Europe of reactionary parties such as Le Pin's National Front in France is a symptom of poor stewardship of the economy.  It is what Ray Dalio's presentation shows what happens if the deleveraging is ugly.

Spring Time for Bankers

Paul Krugman's New York Times editorial about Obama's inability to more quickly repair the Great Recession with the passing of a really big and effective stimulus bill should more properly be placed with Tim Geithner's policy of coddling bankers. While coddling the better actors was necessary some should have been put through show trials to direct the public's venom to the perpetrators and not the victims of the predatory lending that caused the crisis. Obama's honeymoon in 2009 only lasted thirty days rather than the more usual hundred when Rick Santelli had his rant that started the Tea Party.  By summer of 2009 the public was disgusted with a perception of Obama paying Wall Street bonus's and giving Main Street the shaft so he lost control of the economic levers.  

Best example of Robert's court passage of McCutcheon V Federal Elections Commission

Billionaire Democrat Set Eye on Senate Races in today's New York Times is a perfect example of the type of contribution to the Democratic party that this recent Supreme Court decision made possible. Instead of hand wringing, Democrats should be applauding.

Campaign Finance Schemes are Authoritarian

Joe Nocera's "Rethinking Campaign Finance" brought out all the Authoritarian rants about controlling campaign spending in the comments. For example the NYT Picks:

Let all elections be financed with public funds, with candidates receiving relatively equal amounts. No more free lunches, no more trips, no more money in funds that a candidate can pocket after leaving office, no more lobbying outside the hearing rooms of the Capitol, make all testimony televised (no exceptions), no more gifts of any kind.

Okay.  So who decides who gets financed and who doesn't?

Conversely the Robert's Court recent decisions has been very good for moderates. In McCutcheon versus The Federal Election Commission the two party's central offices benefit but the Democrats are best organized to work it because of Obama's successful  and centrally directed 2012 campaign apparatus is already in place for 2014 midterm elections. Republican's centralized and therefore coordinated efforts for campaigning are actually hampered by the stupid money gathered with the 2010 Citizens United decision where fund raisers can not communicate with candidates.      

Lowell Weicker's Observation

Is that the Republican Party is irrelevant in Connecticut, as mentioned in yesterday's NPR's "Where We Live" with John Dankowsky.  He suggests a primary system which allows independents to vote as well.  He's right.  The GOP delegates work in a closed end information loop that strays from reality as it gravitates towards the money.  Independents are bigger voting block than Republicans and they are excluded at the party's peril.

Jeb Bush Blast's de Blasio

While my political view is the polar opposite of Mayor Bill de Blasio I am completely in the camp of Local not Federal solutions. In their criticism of the Mayor, Republicans are showing their Federalist Authoritarian roots. What business is it of Jeb Bush to root out a liberal progressive from New York?

Rand Paul's Editorial in New York Times

"Show Us The Drone Memo" brings up the sort loyal opposition issue that resonates in comparison to Fox generated idiocy such as that regarding Benghazi.

More Climate Change

"A new scientific report on global warming released this week, the National Climate Assessment, named Miami as one of the cities most vulnerable to severe damage as a result of rising sea levels. Alton Road, a commercial thoroughfare in the heart of stylish South Beach, is getting early ripples of sea level rise caused by global warming — even as Florida’s politicians, including two possible contenders for the presidency in 2016, are starkly at odds over what to do about it and whether the problem is even real."

There is no denying that sea levels are rising and so is the CO2 percentage in the atmosphere. What can be denied is that stopping fossil fuel burn entirely! Today! Would freeze up the polar caps so that Miami and all other cities on the planet at or below sea level would recede from peril. There is too much momentum to turn this Titanic situation away from danger.  Its time for the lifeboats! Miami and other of the world's cities need to consult with Amsterdam on how to cope with dwelling below sea level.  Act locally !  The Feds are the orchestra playing "Eine Kleine Nachtmusik".

Global warming's upside-down narrative by Bjorn Lomborg

Climate Change and Science

Democrats who want to deal with climate change in a drastic manner spout some pretty lame debate points and are as close minded as those who insist that creationism be taught in public schools.  Try putting up Nuclear as a partial solution to climate change and you really get a really unscientific earful.

Malinvestment

Paul Krugman’s “Why Economics Failed” comes from a sheer  over exuberance of the good times.  Paul is pushing a string.  Without the “my investment is more valuable than it it was yesterday impetus” the inflationary juices just do not juice up the entrepreneurial  spirits. It isn’t as easy as declaring it is a lack of demand. Lack of demand is a lesson where my investment is not more valuable, its less valuable! That is a tough reality to overcome.  The reticent reaction to economic stimulus is from a temporary lack of interest in investing that is not easily corrected.

New Inquiry Sought on Benghazi Attack

Republican Conservatives are forcing Congressional Investigation of the attack for publicity in the upcoming midterm elections in November.  It is the sort of issue that will really connect with the grumpy old white men who dream of having their salacious way with those Foxy young blondie newscasters.