Category Archives: Economics

Obama’s War on America’s Energy Infrastructure.

No, going into green energy is not a good thing if it is not economical, and it is not. Obama blew $150 billion, stolen from the taxpayers, on these essentially “crony capitalist”, anti-free market projects.

Obama Subsidizes U.S. Solar Energy

Spain’s economy was basically destroyed by the fanatical green energy movement there –
Spain’s Green Disaster a Lesson for America

Really it’s a kind of insanity that government officials think they know better than a free market does, and they repeat the failures of centralized command and control (socialist) systems over and over again. So excluding the bogus “CO2 pollution” argument, why do they want renewable energy? They claim it’s because we will run out of fossil fuels! However, as fossil fuels get used up or more expensive to extract, they will become more scarce and their price will necessarily rise. At some point, between rising prices and improved technology, entrepreneurs will bring economical alternative energy to the market. NO “GOVERNMENT SOLUTION” NECESSARY. Instead government distortions of the market simply result in our industries being less price competitive with foreign companies whose government economic policies are not so fucked up.

And no, it was never about “investment in green technology” – that was just the public excuse. R&D is already a tax write-off for companies. Instead, the money was a pay-off to Obama backers, to protect them from market forces of free enterprise and competition, but the economics of “green energy” are so bad that many of those companies went bankrupt anyway. Since it was not their own hard-earned money (like it would have been an entrepreneur), they could waste it on hookers and blow – and kickbacks to the Democrat Machine.

…These programs might be the greatest—and most expensive—example of crony capitalism in American history. Tens of billions of dollars went to firms controlled or owned by fundraisers, bundlers, and political allies, many of whom—surprise!—are now raising money for Obama again.

Analysis: 80% of DOE green energy loans went to Obama backers

The electricity utilities are happy to sell you a “green energy plan” where you pay more for the same amount of energy, but getting the government to force everyone to do it by Dictate, just means a lowered standard of living for everyone. The facts are most people simply can not afford it:

  • 62% of Americans have less than $1000 of savings
  • 15% of households have negative wealth
  • 100 million Americans are out of work; 50% of working age Americans are not working ; the lowest labor force participation rate in 40 years.
  • 50 million Americans would starve without government food payments.
  • A record high 15% of Americans live in poverty.

Blacks are worse off under Obama/Clinton!

I was wondering about how polls could say 95% of black voters are for Killary, when all the numbers says blacks are much worse off now after 6 years of “Democratic leadership”.

Townhall – Blacks worse off under Obama
Expansion of black misery under Obama
National Review – blacks worse off under Obama

I’m thinking what brainwashed chumps! It’s like a litmus test of whether people are living a fantasy when they still support him.

I have heard that Clinton’s “tough sentencing” law in 1994 doubled black incarceration rates, which is true, but they’ve been climbing since Reagan’s Drug War in the early ’80’s. Total rates were declining a little since 2009, but crime started exploding in 2015 and I have not been able to find more recent stats on the rates…

Breitbart – crime spikes in 2015

The Greater Fool

I have heard repeatedly people say they can’t fathom how anyone would lend money to a government for a negative interest rate. This is true only if they keep the bond to maturity, and they have no intention of doing so! If investors expect future interest rates to become even more negative, then the value of their existing bond, on the open market, will gain a premium over YTM. This is simply the “Greater Fool Theory” and is exactly the same as investors in the housing market expecting to flip their houses for ever greater prices, no matter how over-priced they are already.

Misery Index

Remember the Misery Index? Misery Index is just unemployment rate + inflation rate. Ronald Reagan campaigned on it when it hit an “outrageous 21%” in 1979. Since then the govt has just been making ever more elaborate lies about what the numbers are. See this good article –

, and the first comment:

real unemployment rate is between 20% and 40%

Every statistic about the US economy is now a lie as David Stockman looks at 5.5% unemployment:

At the present time, there are 210 million adult Americans between the ages of 16 and 68—to take a plausible measure of the potential work force. That amounts to 420 billion potential labor hours, if we accept the convention that all adults are at least theoretically capable of holding a full-time job (2,000 hours/year) and pulling their share of society’s need for production and work effort.

By contrast, during 2014 only 240 billion hours were actually supplied to the US economy, according to the BLS estimates. Technically, therefore, there were 180 billion unemployed labor hours, meaning that the real unemployment rate was 42.9%, not 5.5%!

Yes, we have to allow for non-working wives, students, the disabled, early retirees and coupon clippers. We also have drifters, grifters, welfare cheats, bums and people between jobs, enrolled in training programs, on sabbaticals and much else.…

Inflation in the land of the free is not so phantom though – Chapwood Index shows real inflation in US. In 2014, it was 9.7% – 1212% of official US inflation (0.8%)

The Chapwood Index shows the actual price inflation for the 500 items people buy most often. It has been 9-10% every year in Dallas for the past 4 years. So something less than 43% unemployment and 10% inflation and the misery index is pushing 50%!