The Joys Of The Nissan Leaf

January 27th, 2012

The Nissan Leaf (Leading, Environmentally friendly, Affordable, Family car) is an all-electric vehicle that was introduced in 2010. Recharging the batteries requires that it be plugged into a 110 volt outlet or a recharging station.

Paul Chesser writes about the driving experience of Stephen Smith who is an enthusiast of electric vehicles. In light of this real life demonstration of the Leaf’s capabilities, one has to wonder what Nissan was thinking when they introduced it.

This article appears on the National Legal and Policy Center website.

“As for “why Tennessee” as part of this EV system rollout, you might ask? Thanks be to taxpayers there, also, as Nissan has in its back pocket a $1.4 billion federal loan to retrofit a plant in Smyrna – just outside Nashville….”

“Waist Deep in the Big Muddy”

January 27th, 2012

Peter Schiff has written an excellent commentary on the Fed’s decision to maintain near zero interest rates. His piece appears on Safe Haven.

Ben Bernanke And QE3

January 26th, 2012

After sounding optimistic for months, the Fed is now reversing and saying that the economy is not doing so well, so more stimulus may be helpful. Since $2.3 trillion did not produce any results, more quantitative easing may be needed, is the thinking. Chairman Ben Bernanke has also established a target inflation rate which will erode savings and pension plans at a nice controlled rate.

This piece is posted on Reuters.

“”The framework makes very clear that we need to be thinking about ways to provide further stimulus if we don’t get improvement in the pace of recovery and a normalization of inflation,” he [Ben Bernanke] told a quarterly news conference.”

Trouble For Portugal

January 26th, 2012

Portugal which has been down the list of near bankrupt nations has just had a bond sale that produced astounding yields. This piece on CNN Money by Ben Rooney tells the story.

Some analyst had the temerity to say that Portugal was not going to default any time soon. At those interest rates, their only way out will be default. And looking from the other side, why would investors buy bonds that pay that kind of yield when all indicators say Portugal will default? Is 21% a good rate when the bond may lose more than 50 percent of its value?

“On Thursday, the yield on 10-year government bonds spiked above 15%, the highest level since the euro currency was launched in 1999, while yields on 3-year notes surged to nearly 21%.”

“The United States Of Envy”

January 26th, 2012

Our President is making class warfare respectable. It is all about power and wealth, which politicians like for themselves, but they villify in others. If enough people buy into what is basically an attack on property rights, then we will lose our liberties.

Terence Corcoran has written a piece on Mr. Obama’s blatant class warfare. It appears on Financial Post.

“The Occupy Wall Street movement, born in the United States of Envy, aligns 99% of the population against the 1%, the rich that are America’s past.”

Capitalism In Crisis?

January 25th, 2012

Bloomberg has conducted a global poll, and the results are not surprising. Uncontrolled capitalism is dividing the world into the 99% and the 1%. Just what the questions were we are not told, but the results indicate that a majority believe that income disparity is a major problem and should be solved by government. To Americans’ credit we were not so quick to recommend government action, where the rest of the world strongly supported that.

It is ironic that government action is considered necessary to fix capitalism, when it is government that has caused the problem. What we are being told is capitalism is just a variant of socialism, or crony capitalism. Economic bubbles are created by government in collusion with the Federal Reserve, failed banks are given preferential treatment and saved with taxpayer money, trillions of dollars are pumped into the economy, interest rates are kept artificially low, and the federal debt is ballooning out of control. This has nothing to do with free market capitalism. Too much government intervention is the problem.

““It requires government intervention on an enormous scale, because an economy cannot survive if it does not invest in the younger generation,” Derks said.” [Michael Derks, London broker]

Americans Are Deleveraging

January 24th, 2012

Zerohedge brings us this article on consumer debt reduction in the U.S. Americans have been up to their proverbial ears in debt, which is now on the decline. That can be a good thing or a bad thing. It is good to the extent that debt is being paid off, but that does not appear to be the major deleveraging mechanism. A large part of private debt reduction is the result of abandoned mortgages and bad credit card debt.

No mention of student loan defaults was made in the piece, but in the last year defaults have risen significantly. I have not seen a number on the amount of loans that are considered bad, where the loan was written off as uncollectable.

Government Debt And Gold

January 24th, 2012

Nick Barisheff delivered a speech this month at a Canadian luncheon gathering. His topic was the relationship between government debt and gold, and he did an excellent job of revealing the future of most currencies which is, as he explains, directly related to debt.

Financial Sense posted his speech.

“The sovereign wealth funds as well as the more conservative central banks will have little choice but to re-allocate to gold in order to outpace currency depreciation.”

Airplane Tribute To Steve Jobs

January 24th, 2012

Virgin America has honored Steve Jobs on one of its airplanes. CNET carries this item.

Greece And Illinois

January 23rd, 2012

Greece is going to default, and Europe has its problems all around, so no one seems to notice the fiscal plight of the states. But that will change. John Rubino describes the problems in Illinois, which is not the worst of the states, but it will do for an example. When all of the financial liabilities are totaled, I suspect that California may top the list.

“How a state with a constitutional mandate to balance its budget can do this in the first place — and how an “unpaid bill” can be excluded from the annual budget — is a question for future prosecutors.”

For some comparative data this website, from the Center on Budget and Policy Priorities, has info on the various states. The data is for budget expenses, so pension shortfalls are not shown.

JP Morgan’s PR Firm

January 23rd, 2012

Somewhere in the past the news media was considered to be the guardian of an informed public. That has long since ceased to be. Greg Hunter reports on the interview with JP Morgan CEO, Jamie Dimon, by USA Today. He focuses on what was left unsaid.

This piece appears on USAWatchdog.

“…“Courthouse News Service” reported allegations JP Morgan bank was “going so far as to Photoshop documents to “create the illusion” of standing “in tens of thousands of bankruptcy cases,” according to a federal class action.”

War On The Rich

January 23rd, 2012

Does it make sense for Barack Obama to socialize with the rich and then villify them for not paying their share of taxes? That is what John C. Goodman of the National Center for Policy Analysis explores in his piece on Townhall.

Betting With Taxpayers’ Money

January 22nd, 2012

When the federal government becomes a venture capitalist bad things often happen. The private venture capitalist expects to see a return on his investment and investigates the opportunities and risks inherent in a start-up business. However, the government is not investing its own money and often has an not-for-profit agenda, which may be purely political. The results are often squandered taxpayers’ money and no accountability for the losses.

Paul Chesser of the National Legal and Policy Center documents some of the DOE’s investments in the renewable energy sector.

The All-American Meat

January 22nd, 2012

Chef Georgia Pellegrini has come to appreciate some things in her profession that few chefs even encounter, like a hunting and cooking squirrel. She confesses: “…I wanted to pay the full karmic price of the meal. And so I set out to learn how to hunt.”

Fox News carries the chef’s article.

“Even as a city chef turned hunter, the popularity of the squirrel surprises me still, perhaps because I had never understood squirrel, or had never cared to until now.”

German Solar Energy

January 21st, 2012

At one time solar energy was considered the cutting edge of Germany’s renewable energy policy. In the excitement of creating the legal structure and subsidies that encouraged solar power generation the government lost sight of basic economics, and some basic science too.

Spiegel Online published this story by Alexander Neubacher.

“Solar energy has the potential to become the most expensive mistake in German environmental policy.”

An “Isolated” Iran

January 21st, 2012

Every day we are treated to news about the dangers that Iran poses to the world, courtesy of the pop media. We all know that Iran is trying to build a bomb which will transform Ahmadinejad into a regional Hitler. Some objective questions need to be asked. Why are we concerned about the evil intentions of Iran and not about North Korea? What part does oil play in this? What part does the petrodollar play in this? And lastly, are the allegations against Iran even true? Keep in mind the rationale we used to go to war against Iraq. Meanwhile, we are imposing sanctions on Iran and expecting the rest of the world to go along.

Asia Times carries this piece by Pepe Escobar. He takes a long look at what is going on with Iran and the longstanding involvement that the U.S. has had in the region.

“In fact, Iran already supplies no less than 15% of China’s oil and natural gas. It is now more crucial to China, energy-wise, than the House of Saud is to the US, which imports 11% of its oil from Saudi Arabia.”

“The IAEA is positive: no bomb-making is involved. Nonetheless, Washington (and the Israelis) continue to act as though it’s only a matter of time – and not much of it at that.”

Debt Supercycle

January 20th, 2012

Financial Sense carries this piece by James Puplava. He analyzes what is called the “debt supercycle”. The history of the supercycle involves the creation of sovereign debt in amounts unheard of before, as well as a derivatives market that permits leveraging debt. It is a long piece, but is an impressive explanation of what we are now experiencing.

Mitt Is The Man?

January 20th, 2012

Writer Ian Bremmer is puzzled why the media does not just announce that Mitt Romney going to be the Republican candidate and stop all of the waste of ink on the others. A part of the problem he says is: “…that candidates with no chance of winning the nomination are refusing to get out of the race.”

Mr. Bremmer is a good writer, but his point is apparently all about picking a winner, like going to the horse races. Ideology, beliefs, and political record don’t have any place in his thinking. Just who is going to be the winner?

As for Ron Paul who is the only one who has real conservative credentials and presents a genuine alternative to Obama, he is simply dismissed as irrelevant. Acknowledging that Ron Paul, “…who consistently garners high percentages in polls and now in the New Hampshire primary,…”, Bremmer concludes that he is “too far outside the Republican mainstream to win the nomination,….”

What is the Republican mainstream? Is the mainstream defined by the pop media, or defined by the primary voting, or is it defined by the political elites that control the national party? Actually, option A and option C are the same. The correct answer should be B.

Well folks, IMHO, the fix is in. The Republicans will have as their candidate a pseudo-conservative, political animal, maybe Mitt Romney. Ron Paul has generated a huge base of support, and is in effect the “gold standard” by which conservative candidates for national office will be measured. Win or lose, he is doing a great service for his country.

Ian Bremmer’s piece is posted on Reuters.

A Bad Energy Decision

January 19th, 2012

The U.S. procures more than 35% of its imported oil from countries that are non-friendly to the U.S. We have a friendly neighbor whose economy is intimately tied to the U.S., and they are willing to sell us even more oil than we are now buying from them, but we refuse to allow the pipeline that will make that possible. That is insanity, or worse.

The Shaddow Government blog addresses the Keystone Pipeline issue in a piece by Jose R. Cardenas.

Creating Value

January 19th, 2012

Paul Hsich reminds us of some basics of a free market economy. In a day when successful companies are expected to “give back to the community”, we need to be remember that the goods or services that were generated is what was given to the community. There is no debt or obligation created by being successful.

His piece appears on Realclearmarkets.com.

“If I buy a new laptop computer from you for $500 in a free market, it means I value the computer more than the $500 and you value the $500 more than the computer.”

The Great Mercury Scare

January 19th, 2012

The great mercury scare is one of the environmental “truths” that is accepted without question. Once more I will remind you of Likelicorice Axiom #1 which states that any idea that is widely promoted in the media is probably a lie.

The Washington Times Opinion section carries this commentary by Mary Anne Hansan. She writes on the topic of mercury contamination of fish, which through the promotion of the EPA and environmental groups has advanced to dictating the amount of fish one may safely consume. What is amazing is that the Japanese, who consume huge amounts of seafood, are not extinct or severely brain damaged. The reality is that eating seafood is healthy, not hazardous.

“No one pointed to well-publicized research led by the National Institutes of Health, which concluded that children whose mothers eat no fish during pregnancy are 29 percent more likely to have abnormally low IQs.”

Ms. Hansan is vice president of the National Fisheries Institute, which may sully her credibility on this topic, so I did some research and found the website, Mercuryfacts.org. They have posted data on the historic levels of mercury in fish which contradicts the EPA story.

“The best science suggests that the tiny amounts of mercury in fish aren’t harmful at all. A recent twelve-year study conducted in the Seychelles Islands (in the Indian Ocean) found no negative health effects from dietary exposure to mercury through heavy fish consumption.”

“Ambergris, Treasure Of The Deep”

January 18th, 2012

In the long history of perfumery, one has to wonder how ambergris came to be an ingredient. It is one of the secret ingredients of expensive perfumes. This article from Businessweek will tell you more about the world of ambergris.

IMF Needs Money

January 18th, 2012

“The IMF currently has a lending capacity of about $380 billion and estimates demand could be about $ 1 trillion in the medium-term.”

The International Monetary Fund (IMF) should rightly be called the International Bailout Fund. From the IMF website its Core Role is described as:
“A country in severe financial trouble, unable to pay its international bills, poses potential problems for the stability of the international financial system, which the IMF was created to protect. Any member country, whether rich, middle-income, or poor, can turn to the IMF for financing if it has a balance of payments need—that is, if it cannot find sufficient financing on affordable terms in the capital markets to make its international payments and maintain a safe level of reserves.”

The statement above, “cannot find sufficient financing on affordable terms”, simply means that where bond investors will not lend money to countries that are bad credit risks, then the IMF will take on the toxic debt and at below market rates. Lenders who expect to get their money back at a reasonable rate of interest don’t loan money that way. In the rarified air of international finance the normal rules do not apply, especially when the lender can get others to pony up more money on demand.

Certainly in the case of Europe, we are seeing the IMF bailout countries who have mismanaged their finances by spending well beyond their incomes. Nations who have some surplus (supposedly) are expected to save these deadbeat nations by chipping in more money to the IMF. Also, somewhere in this process the banks who have bad sovereign debt on their books are also being saved from their bad investments.

In the normal world, debtors who cannot pay declare bankruptcy and take their licks, and investors who have loaned money to those debtors suffer their losses. The whole experience teaches debtors to be more frugal and lenders to be more careful. But in international finance it doesn’t work that way. Americans and Brits and Germans will pay for the profligacy of Greece and Italy and Spain. So, who will pay to bail us out?

Reuters published this piece by Lesley Wroughton and Krista Hughes.

An Economic Recovery Or Not

January 18th, 2012

Forbes brings us this piece by Peter Ferrara. He takes a look at the record of the Obama administration in how it has dealt with the economy.

“Supposedly a forward looking progressive, Obama proved to be America’s first backward looking regressive. His first act was to increase federal borrowing, the national debt and the deficit by nearly a trillion dollars to finance a supposed “stimulus” package, based on the discredited Keynesian theory left for dead 30 years ago….”

ECB’s Tricks To Solve The Crisis

January 17th, 2012

Spiegel Online posted this article on the European Central Bank’s (ECB) efforts to solve the sovereign debt problem. Mario Draghi, president of the ECB, is getting a warm feeling after several bond auctions got a good reception, but a dose of reality is coming.

A big question is: will the budget cuts in Greece, Italy, and Spain work or will popular rebellions erupt? And a great deal depends on these countries not going into a recession, which seems like a given.

“But for all intents and purposes, the ECB’s new strategy is just that — a trick. By flooding the banks with cheap money, it is artificially generating demand for sovereign bonds.”

Chinese Steel To Rebuild The U.S.

January 17th, 2012

Dan McNichol’s report on the use of Chinese steel for American construction is good reading. It illuminates a problem and how it can be solved, though maybe not the way we would prefer. In a globalized economy certain types of businesses and manufacturing will gravitate to countries that can compete best in a particular market.

For a number of reasons which we cannot discuss here, the U.S. has lost most of its steel manufacturing capability. Is the solution to “buy American” and pay a premium price, or save on costs and use a foreign supplier? The illustration that Mr. McNichols uses also has some serious time constraints, which make buying U.S. steel impractical.

The piece appears on CNBC Guest Blog.

“Three issues are driving the use of foreign steel over domestic steel: capacity, capacity, capacity.”

Making The Government More Efficient

January 16th, 2012

Iain Murray has a good point, we don’t want an efficient federal government. A slow moving, cumbersome, and inept governmental machine means that we have fewer of our liberties trampled, or maybe trampled more slowly. We do have one thing working in our favor, by its very nature because it is not a profit motivated enterprise, government is inefficient. Still, merging agencies and departments into a single massive organization is not good. His commentary is posted on Openmarket.org.

“The authority to create his own departments, secretaries, and agencies without congressional approval is how we ended up with the separate Departments of Education and Health and Human Services under Carter, and Veterans Affairs under Reagan.”

Most Futile Congressional Year

January 16th, 2012

The Washington Times posted this piece by Stephen Dinan, and it points out that the last year was one of the most futile in terms of laws passed. Let’s hear three cheers for congressional inaction. The truth is that most of what Congress passes are restrictions on our freedoms. Increased budgetary spending, increased entitlements, anti-terrorist legislation, more business regulation, and Obamacare are tearing down our Constitutional republic. Additionally, they choose to do nothing about the President’s usurpation of power and the continually growing reach of the various departments. We would probably do quite nicely if Congress were to take the next twelve months off.

Here is a fantasyland thought. Imagine Congress only passing legislation that met Constitutional standards, meaning that Congressmen and Senators would abide by their oath of office. That would indeed be a banner year for inaction.

Governor Brown’s Nightmare

January 15th, 2012

Here is a piece on Governor Jerry Brown and his state budget problems. The article appears on Reuters and was written by Peter Henderson and Dan Levine. Basically, it is a fun piece and gives some insight in the maneuvering to resolve California’s budget problems, which have little or no chance of being fixed. After all of the nonsense that has gone on in that state, it is hard to take any of this too seriously. Think of their budget follies as just entertainment reading delivered by the news media.

J.R.R. Tolkien In Quotes

January 15th, 2012

The wide world is all about you; you can fence yourselves in, but you cannot forever fence it out.

The wise speak only of what they know.

The burned hand teaches best.

It does not do to leave a live dragon out of your calculations, if you live near him.

Some who have read the book, or at any rate have reviewed it, have found it boring, absurd, or contemptible; and I have no cause to complain, since I have similar opinions of their works, or of the kinds of writing that they evidently prefer.

Friendship with Lewis [C.S. Lewis] compensates for much, and besides giving constant pleasure and comfort has done me much good from the contact with a man at once honest, brave, intellectual–a scholar, a poet, and a philosopher–and a lover, at least after a long pilgrimage, of Our Lord.

A Greek Default, Inevitable

January 14th, 2012

“”When it comes to Greece, it’s clear that it’s hopeless,” said Hans-Werner Sinn, president of the Munich-based Ifo Institute. “It would be better for the country to finally leave the euro and transform its foreign debts to drachma, than to constantly beg for new aid and set itself up for lasting charity.”"

From all indications Greece is not going to be able to manage its debt even with bail out money. Their austerity measures will only insure that the Greek economy tanks. All of the optimistic pronouncements are just wishful thinking. Spiegel Online posted this piece by Stefan Kaiser.

When Greece defaults how will that affect Italy, Portugal, and Spain? Will an epidemic of fear spread among investors and destroy the debt refinancing of these countries? Also, how will U.S. banks deal with the crisis? I think we will see the Fed do what it does best, print money.

Fleckenstein’s Ideas

January 14th, 2012

Bill Fleckenstein has always seemed to be a smart, level-headed kind of investor. His recent piece bears that out, I think. His commentary appears on MSN Money.

“…ECB has embarked on a money-printing mission, even though it refuses to call its actions that. (Basically, “long-term refinancing operation” is European for “quantitative easing.”)”

Tim Tebow’s Pregame Ritual

January 14th, 2012

For an NFL quarterback Tim Tebow may have the most unusual pregame ritual of any. This ABC news video clip gives some insight into what makes Tebow tick.

What Price The Debt?

January 13th, 2012

As our U.S. debt grows we are not only paying interest on more borrowed money, but as some point in time there is a high probability that the interest rate will ramp up, significantly. Higher interest rates for the EU nations’ bonds are causing havoc with their finances, and the same can happen here, only worse.

The difficulties in Europe are making U.S. treasuries look good by comparison. That happy turn of events has helped keep our interest rates low, but it may not last.

The Washington Times posted this editorial.

“…consider the assessment of economic analyst Craig Steiner: “The problem is that the United States, with a $14 trillion national debt, cannot afford to pay a higher rate of interest.”"

Insourcing Opportunity

January 13th, 2012

The President says he wants to discourage “outsourcing” of American jobs (overseas jobs) and encourage “insourcing” of jobs to improve the employment numbers. Yet it is his administration that has made the political decision to stop the Keystone pipeline. Penny Starr wrote this piece for CNS News.

“…noting that the pipeline has cleared a three-year environmental review and that now politics are standing in the way of the project moving forward.”

Fitch Issues A Warning

January 12th, 2012

A number of European countries may have their credit rating lowered within weeks according to Fitch Ratings. All the EU’s summit meetings and declarations have been mostly window dressing. The Washington Post carries this article.

The fundamentals have not changed, and in fact are growing worse. It appears that any solution will involve the creation of lots of money, euros and dollars.

“Italy has a debt burden of around €1.9 trillion ($2.4 trillion), way more than the backstop the eurozone has so far provided and more than the debt levels [of] Greece, Ireland and Portugal.”

The Fed And Economic Recovery

January 12th, 2012

The pop media and the Fed have promoted every optimistic bit of data on our economy as proof that we are in a recovery. Now, the Fed has shifted gears and is making pessimistic noises. Michael Pento gives his views in this piece posted on SafeHaven.

“And now, as unbelievable as it sounds, the individuals who are supposedly responsible for preserving the value of our currency are close to adopting a specific inflation target for the rate of its depreciation.”

“Our debt now exceeds the total of our GDP and the annual deficits pile on an additional $1.3 trillion each year to that accumulated debt.”

Man-made Earthquakes

January 11th, 2012

Recently we have witnessed a growing concern about earthquakes that appear to be caused by petroleum fracturing wells and waste water injection wells. Both types of wells inject fluids into underground rock strata under extreme pressure. Forbes posted this article by Christopher Helman on that subject. He maintains that earthquakes from well activity are not new and have been a known phenomena since the 60′s.

“That’s because man-made quakes are nothing new. Humans have been causing earthquakes for decades.”

European’s Pension Bomb

January 11th, 2012

Europe’s sovereign debt problems are bad and urgent, but something else is coming down the road that will dwarf that. It is the state-funded pension plans, and they are estimated to cost ultimately $39 trillion. Bloomberg carries this article.

“State pension obligations in France and Germany are three times the size of their economies, according to data compiled by Mercer.”

30 Story Building Built In 15 Days

January 10th, 2012

What this video shows is almost miraculous. Floor and wall sections are preassembled and transported to the construction site. The whole concept seems to be quite a departure from any multi-story construction that I have seen. For those with an engineering bent, the video may create more questions than it answers.

This is posted on the Irish Independent website.

“The Dollar’s Lucky Streak”

January 10th, 2012

As Peter Schiff points out, were it not for the lousy economic situation in Europe our economy would look much worse. His piece appears in Financial Sense.

The Oil Spill Disaster That Wasn’t

January 9th, 2012

The BP oil spill in the Gulf of Mexico turned out to be far less than the environmental disaster that the pop media advertised. Perhaps the prime factor in destroying the leaked oil was naturally occurring bacteria in the Gulf that feeds on oil. Scientific American carries this article by David Biello.

For a more detailed explanation of the role of bacteria in controlling oil in the world’s oceans go to this site.

“Oil is not new,” says Lee, who has also been monitoring the plumes of oil beneath the surface. “There are so many natural seeps around the world that if it wasn’t for microbes we would have a lot of oil in the oceans.”"

The Goldman Sachs Connection

January 9th, 2012

Did you ever wonder why the name Goldman Sachs seems to be mentioned so frequently in the news, and not just related to events directly involving the investment banking business? This piece by William D. Cohan on Bloomberg caught my attention. He contends that the investment banking business has become a cartel of maybe six companies with Goldman somewhere at the top.

From that I did a search to see how many Goldman people are involved in the Obama administration. There are a multitude of articles on the topic, but I will mention one, a piece posted on Firedoglake. I think one can comfortably say that Goldman Sachs owns the current administration, and very possibly both national political parties.

“But that’s just the tip of the Goldman Sachs iceberg. Here you will find, I believe, the most comprehensive list of people-groups yet available to show how Obama’s administration has really become the Goldman Sachs administration.”

Teen Mom Protects Herself

January 8th, 2012

Maybe you have read this story already, but it makes such a critical statement that I had to post it. Sarah McKinley protected her life and that of her baby with her shotgun (and a handgun was ready too). This is one of approximately 2.5 million self-defense protection incidents using a gun that occur each year in the U.S. Not all of them result in the death of the assailant; in fact about 98% involve no actual use of the gun, just the threat of the weapon protects the innocent party. Fox News carries the article.

It is worth noting that she called the police on 911, but she was forced to defend herself and her child rather than wait for the arrival of police protection.

The Scourge Of Child Labor?

January 8th, 2012

This Bloomberg piece on child labor caught my attention. It opens with the following statement: “The scourge of child labor has proven difficult to eradicate. The International Labor Organization estimates that 215 million children are still being exploited for work, much of it hazardous.” Child labor sounds like a worldwide crisis, and just the term certainly evokes an emotional response.

So let’s take a look at the info on the problem and give it some thought. The International Labor Organization (ILO), an agency of the U.N., is supposed to be the authority. An ILO position paper can be found at this website:

After reading the “Facts On Child Labor” report I noticed that no where was child labor defined. What ages encompass child labor? How can they wage a campaign against child labor without defining it? A clue seems to be given in the findings list where ages 5 – 17 are cited: “…an alarming 20 per cent increase in child labour in the 15-17 years age group – from 52 million to 62 million.” But why are 15-17 year old working children considered child labor. Let’s be honest. In most of the world when a child reaches that age, or even younger, they are expected to help earn a living. The majority of the world’s population does not live like the U.S. or other western nations where teenagers might choose to get a part time job to make some spending money. The income of a third world teenager may be the difference between survival for himself and/or his family or starvation.

Note too that one of the key findings state: “Most child labourers continue to work in agriculture (60 per cent). Only one in five working children is in paid employment. The overwhelming majority are unpaid family workers.” That sounds like children helping out on the family farm. What is wrong with that. Of course, they are unpaid. They are expected to help the family. How is that child labor?

If child labor involves forced labor, where the child is a captive of the enterprise that puts him to work, then that is abhorrent. But voluntary labor provides the child with income, and may be the better choice over begging on the street or stealing. Naturally, if the pay is substandard, the child has the option of seeking some other source of income. It is easy for Americans to sit in our position of prosperity and look upon the meager standard of living of most of the world and declare that a child may not work until he or she is at least 18 years old, and only then with a nice wage and pleasant working conditions. Enforcing those conditions would doom many millions to poverty or starvation.

The ILO considers itself to be the arbiter of what is acceptable in international labor markets. Founded in 1919, the organization became an agency of the United Nations in 1946. Their budget for the past year was $726.7 million, and they are anticipating a $861 million budget this next year. In the last year staff costs ran $496 million. As with any bureaucracy, I question the usefulness of the ILO and suggest that they are primarily interested in maintaining their crusade against various labor “evils” as a means of perpetuating their jobs.

The ILO Programme And Budget statement may be found here.

Gun Control And Jobs

January 7th, 2012

What does gun control have to do with jobs? It comes down to goverment regulations and the “uncertainty factor” that plagues all businesses. Richard Diamond wrote this piece that appears in The Washington Times.

Regulatory And Other Excesses

January 7th, 2012

Europe has its economic follies created by government regulations and spending, and the U.S. is no slouch in that area either. The author could have made his list much longer, but he seem to have his pet peeves. This is a Washington Times editorial.

“A culture of dependence has gradually supplanted the traditional American values of self-reliance and individualism.”

What The Banda Islands Tell Us

January 7th, 2012

Among the islands of Indonesia are a small group call the Bandas, which have a unique history. Writing on The Curious Capitalist Michael Schuman tells the story of the islands, and how they played a major part in world trade.

“In fact, the risk is that, in a quest to keep what the U.S. has, the country ends up getting left behind, like the Bandas.”

“Ponzi Planet”

January 6th, 2012

Spiegel Online gives us this analysis by Alexander Jung on the nature of debt, and particularly sovereign debt which he correctly calls a Ponzi scheme. The candor and honesty of the author is remarkable, and quite surprising coming from the pop media. I am calling Spiegel Online pop media, but they may be a notch or two better.

The original piece was in German and has been translated into fluid English by Christopher Sultan.

“Old debts are paid with new ones, with borrowers giving not the slightest thought to repayment. This has been going on for a long time, far too long, in fact. It was only with the eruption of the financial crisis in 2007 and the outrageously expensive bailouts of banks and economies that many people realized that the entire world is living on credit.”

“As the saying goes, if you start flirting with inflation, you will have to marry it.”

The Con Con Con

January 6th, 2012

Several vocal groups are pushing for a Constitutional Convention with the goal of repairing some of the weaknesses in the current document. That is a noble plan, but entirely misguided and dangerous. As Tom DeWeese points out in this piece, once a convention is convened, it would be autonomous in what kind of document it could create. The original intent of the states calling the convention would be irrelevant. At this time in our history I cannot think of an event that would threaten our freedoms more.

“Today, we have entrenched power forces led by the likes of Barack Obama, Nancy Pelosi and Harry Reid. And we have notoriously weak leaders like current House Speaker John Boehner and Senate Minority Leader Mitch McConnell who rarely miss a good compromise to keep the peace. These are the people who will decide the rules for the convention, including delegate selection.”

Waiting For Surgery In Canada

January 5th, 2012

Our neighbor to the north who has enjoyed the benefits socialized medicine for fifty years has to live with one of the downsides to the system. The Fraser Institute documents the latest data on wait times for surgery in Canada. It has jumped from 18.2 weeks to 19.0 weeks in the last year. This piece on the Fraser Institute website has the details.

“Ontario has the shortest total wait time (the wait between referral by a general practitioner and receiving treatment) among all provinces at 14.3 weeks,….”

Being Constitutionally Eligible

January 5th, 2012

A Georgia judge has ordered a hearing on the Constitutional eligibility of Barack Obama as a presidential candidate on the Georgia ballot. The Western Center For Journalism carries this news item.

Growing Old In China

January 5th, 2012

China is facing a massive problem of caring for their aging population. Migration of the youth to cities for work, and more importantly, the one-child policy has disrupted the tradition of Chinese caring for their families. Bloomberg provides this news item.

The article opens with a description of Beijing Songtang Caring Hospice, a poor excuse for old age care, and says that the heating system is broken. Maybe the author was told that, but having been to China in the winter, I found out that central heating is the exception and not the rule.

““It’s a demographic tsunami,” says Joseph J. Christian, a fellow at the Asia Center at the Harvard Kennedy School, …“The whole multi-generational housing model has disappeared.””

Examples of up-scale retirement care are cited, and I found it interesting that one couple had four children and another lady had two. Because of China’s one-child policy, having more than one requires a government permit which only the wealthy can afford to buy.

Officially, China maintains that their aging problem will be handled. “The aging of the population will be an issue in China that runs through the 21st century,” said Li [Li Zhihong of the National Committee on Aging] in an e-mailed response to questions. “The Chinese government has all the financial capabilities and capacity to protect the basic needs of the elderly.” Yet the policy of one child will necessarily limit the productive population in China and produce an ever increasing number of dependent elderly people with no immediate family to care for them.

“Do you really believe that the government cares for us?” he asks with a wry smile. “Don’t think about it too much. That is the way the country runs.” [81-year-old Luo Jinxiang]

The Gold Bull Marches On

January 4th, 2012

When an investment trend runs for eleven years, would you imagine that every investment advisor and broker would be touting that phenomenal event? King World News carries this excerpt from Richard Russell’s newsletter.

Planned Parenthood Annual Report

January 4th, 2012

CNS News gives us this story on Planned Parenthood’s annual report. Did you know that Planned Parenthood received $487 million dollars in taxpayer money in their 2009/2010 fiscal year, and a significant product of the business was 329,455 babies killed?

““With over a billion in net assets and a business model centered on abortion and government subsidies, it is time for Planned Parenthood to end its reliance on taxpayer dollars,” Dannenfelser said in a statement.”

EEOC Insanity

January 3rd, 2012

This one has to go down as one of the stupidest government ideas, and if it is enacted, one of the most destructive. The Equal Opportunity Employment Commission (EEOC) is considering the requirement by employers that an job applicant have a high school education to be a violation of the American with Disabilities Act. The Washington Times carries this editorial.

However, the proposal fits with the Obama administration’s policy of putting every impediment in the path of increased employment. Among others they have severely curtailed offshore drilling, put a major pipeline project on hold, and dramatically increased federal regulations on business.

“After presenting its convoluted argument, the EEOC notes, “The employer is not required to prefer the applicant with a learning disability over other applicants who are better qualified.””

The Poverty Industry

January 3rd, 2012

It seems that every president launches a new program to eradicate poverty. Each employs different methods, but the most successful seems to be putting more people on the government payroll. Here is Brian Birdnow’s view of the “poverty industry” in his piece on Townhall.

Investment Glossary

January 2nd, 2012

This is unique. Every wonder what contango means, or what Elliott Wave Theory is? Moneyweek has published a glossary that covers dozens of investment terms. You will be sounding like an expert in no time.

Spain Struggles

January 2nd, 2012

Spain is working diligently to cut spending and increase tax revenues. Though not a desperate situation as in Greece, the country has serious fiscal problems. This piece was posted on France24 news.

“Spain’s jobless rate is 21.5 percent, the highest in the euro zone.”

New Greek Govt. And Still Problems

January 1st, 2012

Greece installed a new government and has agreed to abide by new fiscal policies to get the EU/IMF bailout package, but it is not working. SpiegelOnline posted this piece by Ferry Batzoglou.

A socialist regime creates a multitude of vested interests, all wanting their piece of the pie from the government. There are the civil servants, the labor unions, the pensioners, business owners, welfare recipients, the bankers who hold govt. debt, and of course the politicians. No one will take responsibility for their contribution to the crisis, and everyone wants to be exempted from the pain of austerity measures.

What we see playing out in Greece will likely occur in Italy and Spain, and soon. Americans would like to think that this is just something that hapless Europeans will have to deal with, but the same situation is coming to the U.S. Unfortunately, the solution may be much easier for us, because we can just print more money and make everyone happy, until the dollar is destroyed.

“The October EU summit also promised Greece an urgently needed further megaloan totalling €130 billion — but only if the country meets strict conditions that amount to political dynamite.”

The Existence Of God

January 1st, 2012

This essay is part of a book by R.C. Sproul titled, 1 and 2 Peter, which is a study of those two books of the Bible. The topic may seem a little strange to come out of that book, but when I came across the section I was intrigued.

Sproul is a philosopher, theologian, and pastor and has written more than sixty books. I highly recommend his work. The following is from pages 166 and 167.

“Virtually every argument that has been lodged against the existence of God, in the final analysis becomes some type of an argument of self-creation. In the final analysis, the universe creates itself. When the Hubble spacecraft was sent into outer space, an American astrophysicist said, “Sixteen to eighteen billion years ago, the universe exploded into being.” He knew that the universe is not and cannot be eternal, because it does not have sufficient reason for its own being. Every particle of it is the result of something antecedent to it, and therefore it manifests contingent being. Scientists understand that, so they have to posit that there was a time when things started. The usual argument is that sixteen to eighteen billion years ago, all the energy and matter in the universe was compressed into an infinitesimal point of singularity, which remained in a perfect state of organization until, at a particular moment in time, it exploded.”

“Of course, the law of interia says that things at rest tend to remain at rest unless acted upon by an outside cause, or things in motion tend to stay in motion unless acted upon by an outside cause. The law of inertia is what makes the game of golf so frustrating. The ball goes into motion against the forces of gravity, but other forces stop its progress much sooner than the golfer would like. At the same time, if the law did not exsist, if there was nothing to act against that ball in motion, the golfer would have only one shot–the original tee-shot, which would go forever. Eighteen holes would take an eternity to accomplish.”

“Many years ago I corresponded with Carl Sagan about this matter, and I asked him about the outside force that supposedly produced the big bang. He said that we can take it back to the final nanosecond before everything changed, and he was satisfied to stop his inquiry at that point. I suggested that stopping at that point is where he stopped being a scientist because he did not care to seek a sufficient reason for the theory.”

“Some time ago a Nobel Prize winner said that we can no longer believe in that earlier form of self-creation called “spontaneous generation,” in which things supposedly just pop into being. We now know, he said, through better scientific analysis that spontaneous generation does not happen. In fact, it cannot happen because we cannot get something from nothing quickly; it takes time, he said, so we must consider “gradual spontaneous generation.” Such intelligent people seem to be educated beyond their intelligence when they make such arguments. It is laughable to think of nothing producing something in any circumstance, yet such thinkers say that Christians are weak-minded for believeing that a self-existent, eternal, omnipotent being created the universe out of no preexisting matter.”

The Millionaire Tax

December 31st, 2011

Representative Darrell Issa has written an opinion piece in The Washington Times where he examines the supposed panacea to our budget crisis, higher taxes on the wealthy.

“The idea that we can tax our way into fiscal order is a fallacy. A wealth tax doesn’t necessarily create greater revenue; it just gives government more excuses to further delay making the tough decisions about our spending excesses.”

Islam And Jihad

December 31st, 2011

This documentary video, titled “Islam: What The West Needs To Know”, was produced by SnagFilms, and I think it is a must see. Our political leaders and the pop media have painted Islam as a religion of peace, and it is anything but that. It is a political system and a religion which is bent upon world domination.

The video is 98 minutes long, but I can promise if you watch even 15 minutes of it, you will want to see it all.

Paper Vs. Physical Markets

December 30th, 2011

The silver and gold markets are experiencing a shift that will have profound implications on both pricing and the market mechanisms. In the recent past the paper futures market has had a direct connection with the physical market. Supposedly, futures buyers could take delivery of their contracts.

For some time the market participants have suspected that much more paper exists than physical metal. As with anything where a paper substitute can represent a physical asset, the paper tends to expand to multiples of the physical asset. The reality is that the Comex has only a fraction of the physical gold and silver in inventory that should back up the futures trading. Now the MF Global scandal has exposed another aspect of the futures market that is destroying investor trust.

Jim Willie has written a commentary on the loss of trust in the gold and silver futures markets, and what will be the likely outcome. His piece is carried on Kitco.com.

“Grand divergence dynamics are becoming clear. Ann Barnhardt explained in detail how the COMEX will not default, but rather fall into irrelevance, as it is shunned from lost trust.”

EU Carbon Plan For Airlines

December 30th, 2011

The global warming myth is a fully accredited legal fact in the EU as witnessed by the upcoming carbon tax to be applied to airlines. U.S. airlines have been joined by Chinese airlines in a legal challenge. The details are provided by this piece from EUObserver.

“Some airlines, such as America’s cargo giant UPS, are already thinking about re-routing flights in order to side-step the scheme and cut costs, reports the Wall Street Journal.”

New Solar Technology

December 29th, 2011

John C.K. Daly of Oilprice.com brings us this piece on a new solar cell technology. It has the potential to be much cheaper than conventional solar cells, BUT it only has an efficiency of 1% compared to the 15% attainable with conventional technology. No doubt its efficiency can be improved, but a 15x improvement would only make it equal to commercial cells, which is still not enough to overcome the basic economic problems.

The popular attraction to solar power seems to be that it is “free”. In reality it is anything but free to produce in any economic quantity. And the advocates seem to forget that solar cells will not produce electricity for half of the day, meaning that an equivalent amount of conventional generation must be ready to supply the load during dark hours, and on cloudy days. Another consideration is the huge amount of land that is used by solar power.

The author wrote a similar piece which is referenced in this post.

Incidentally, I recently saw a poster in a European airport which claimed that .3% of the Sahara desert could supply all of the electrical needs of Europe (obviously touting solar power). Without extensive research, I can’t address the amount of generating capacity or the megawatts consumed by Europe, but some simple arithmetic can be applied to other aspects of the idea.

First, .3% of the Sahara would be 10,000 square miles of solar cells. Think of a solar array covering a tract of land 100 by 100 miles. Now consider the transmission line that would be necessary to go from say Tunisia to Rome, air line, a fairly short run to get to Europe. The line would run 500 miles which is a very long transmission line. Just the interconnecting lines within the solar array would be hundreds of miles long. Those lengths are not practical for power transmission. Another issue is: would Europe want to be dependent upon power generated in northern Africa? That would put them at the mercy of every terrorist with some dynamite. Because of the massive amounts of land required for solar power, it is not practical to install close to cities and farms, but neither is it practical to ship it for long distances.

If we can ignore the practical problems of solar power, it is really a grand idea.

The New Turnaround

December 29th, 2011

According to the pop media, called the mainstream media by Greg Hunter, we are experencing a “turnaround” in the economy. In his piece on USAWatchdog Greg Hunter disagrees. As usual, if the media is promoting the idea, it is almost assuredly a lie.

“According to the official government number, it is running at 3.4% annually. If you compute inflation the way the government did in 1980 and earlier, it would be 11% (according to Shadowstats.com.)”

National Defense Authorization Act

December 28th, 2011

Ron Paul sounds a warning about the recently enacted National Defense Authorization Act. In the name of fighting terrorism we are destroying the very rights we are supposedly protecting.

Terrorists of whatever stripe are achieving a victory over America by subverting our own Constitutional rights. They could not have captured America, or even a single city, by force of arms, but are now giving our own government the pretext to destroy our nation. The war on terrorism has become on ourselves.

“The PATRIOT Act, as bad is its violation of the 4th Amendment, was just one step down the slippery slope. The recently passed National Defense Authorization Act (NDAA) continues that slip toward tyranny and in fact accelerates it significantly.”

Santa Forgot

December 28th, 2011

Doug Bandow of the Cato Institute has an unfulfilled Christmas list, but remains hopeful, maybe next year. His ten wish-list items are things I can relate to, until he gets to number nine. He loses me on the one where he says of Barack Obama, “…gives no sign of being anything other than a patriot. He is liberal, yes, but certainly not a “socialist thug”….” In fact, I also would contest his very gentle assessments of several of our previous presidents.

Still, to agree with 90 percent of what the man says may be pretty good. He has put some serious thought into his Christmas list. His piece is posted on Forbes.

“Next, I wish the people of the world would stop confusing Uncle Sam with Joan of Arc. It seems everyone everywhere expects America to show up and save them.”

“Number three is that Washington stop lecturing other nations about democracy while sucking up to corrupt thugs who jail anyone foolish enough to support democracy there. You know, like the Saudi royals.”

Marc Faber Says

December 27th, 2011

We have not posted anything from Marc Faber in some time, and so here is a summary of some of his newsletter commentary and segments from an interview. The piece is carried on Business Intelligence Middle East.

“The renowned investor clearly disagrees with Keynesian policies that seek to get out of the crisis caused by too much borrowing and spending by spending and borrowing even more.”

“Faber said: “There is no doubt that QE3 will come in one form or the other, and in Europe also”.”

MF Global And The Missing $1.2 Billion

December 27th, 2011

Explaining the loss of $1.2 billion continues to be baffling, however some of the money may have been found. Jesse’s Cafe Americain published two pieces on the lost money.

It is becoming obvious IMHO, that there is a major cover-up going on. Needless to say, MF Global clients are taking a hit, and the supposedly regulated investment business offers the customer much less protection than advertised.

“Secular Theocracy”

December 26th, 2011

The rise of a secular theocracy is the subject of this piece by David J. Theroux. Governments have become the new religion, along with other subordinate theologies like science, education, media, and economics, all of whom demand obedience. Theistic religions have been pushed to the periphery of society.

In the U.S., these secular centers of power are major influences in our public life while Christianity is being marginalized. There was a time when all of life was heavily influenced by Christianity, and now the mere mention of Christianity or its traditions is considered distasteful, if not unlawful. As C.S. Lewis noted, we cannot divide our lives into secular and sacred without paying a penalty in the moral fabric of society.

The Independent Institute posted this piece.

“…William Cavanaugh similarly notes that for Augustine and the ancient world, religion was not a distinct realm separate from the secular.”

“In the Middle Ages, Aquinas further viewed religion not as a set of private beliefs but instead a devotion toward moral excellence in all spheres.”

2011: The Year In Volcanos

December 26th, 2011

The past year seems to have been a particularly active year for volcanos. The Atlantic “In Focus” feature gives us 36 photos of volcanic activity around the world. Most of us have little appreciation of what a volcanic eruption means. This photo collection will help fill that void.

Unto Us A Savior Is Born

December 25th, 2011

But you, Bethlehem Ephrathah, though you are small among the clans of Judah, 
out of you will come for me 
one who will be ruler over Israel, 
whose origins are from of old, from ancient times.”

In those days Caesar Augustus issued a decree that a census should be taken of the entire Roman world. (This was the first census that took place while Quirinius was governor of Syria.) And everyone went to their own town to register.

So Joseph also went up from the town of Nazareth in Galilee to Judea, to Bethlehem the town of David, because he belonged to the house and line of David. He went there to register with Mary, who was pledged to be married to him and was expecting a child. While they were there, the time came for the baby to be born, and she gave birth to her firstborn, a son. She wrapped him in cloths and placed him in a manger, because there was no guest room available for them.

And there were shepherds living out in the fields nearby, keeping watch over their flocks at night. An angel of the Lord appeared to them, and the glory of the Lord shone around them, and they were terrified. But the angel said to them, “Do not be afraid. I bring you good news that will cause great joy for all the people. Today in the town of David a Savior has been born to you; he is the Messiah, the Lord. This will be a sign to you: You will find a baby wrapped in cloths and lying in a manger.” Suddenly a great company of the heavenly host appeared with the angel, praising God and saying, “Glory to God in the highest heaven, and on earth peace to those on whom his favor rests.”

When the angels had left them and gone into heaven, the shepherds said to one another, “Let’s go to Bethlehem and see this thing that has happened, which the Lord has told us about.” So they hurried off and found Mary and Joseph, and the baby, who was lying in the manger. When they had seen him, they spread the word concerning what had been told them about this child, and all who heard it were amazed at what the shepherds said to them. But Mary treasured up all these things and pondered them in her heart. The shepherds returned, glorifying and praising God for all the things they had heard and seen, which were just as they had been told.

She will give birth to a son, and you are to give him the name Jesus, because he will save his people from their sins.
For the wages of sin is death, but the gift of God is eternal life in Christ Jesus our Lord.
Salvation is found in no one else, for there is no other name under heaven given to mankind by which we must be saved.
For God so loved the world that he gave his one and only Son, that whoever believes in him shall not perish but have eternal life.
(New International Version)

U.S. True Money Supply

December 24th, 2011

Sometimes the best explanation is a graph, and that is just what Alasdair Macleod supplies in this piece that is posted on GoldMoney. The graph of US True Money Supply is rather scary. A second graph of gold price is also revealing.

Certificates Of Performance

December 24th, 2011

Here is a speech by Walter Williams which is typical, clear and insightful Walter Williams. The man understands free market economics. I wish that just five percent of Americans had the same understanding.

The video is posted on Ideas Matter.

“Really, Really Big Questions”

December 24th, 2011

Gregg Easterbook discusses some huge questions about dark matter, dark energy, and astronomy. This stuff is way beyond who will be president in 2012 or the fate of the Euro. His piece is published on Reuters.

“A baseball is solid at the macro scale: at the subatomic scale, it seems to be made of rapidly spinning packets of nothingness.”

“Physicist Charles Townes…wryly observed, “To posit the existence of an infinite number of unobservable universes seems considerably more freewheeling than positing a single unobservable God.”

Are Traditional Values The Counterculture?

December 23rd, 2011

In about fifty years our culture has literally shifted 180 degrees. What was good and honorable is now largely reviled and ridiculed. Some of the details of this shift are examined by Dan Gainor on the Business and Media Institute website. He could have written a book on the subject; still his short article will get the message across.

We can blame the pop media for much of the depravity in our culture, but the responsibility must ultimately be laid on the consumer who patronizes the movies, tv shows, internet sleaze, and tabloid news.

“Actor Charlie Sheen was covered like he was actually somebody important. He’s not. Still, ABC, CBS and NBC used 38 separate broadcasts to give viewers 4 hours, 51 minutes and 1 second of Sheen.”

Peter Grandich Interviewed

December 23rd, 2011

Resource Clips published this interview with Peter Grandich. He talks about manipulation of the gold market, gold equities, the Euro and the dollar. His experience in the markets make him a man to be heard.

“Europe is just the opening act; the real problem will come when it hits the shores in America. In terms of a safe haven, the lows on the US dollar index was around 70, we’re at 80; so we’re talking about a market that’s about only 15% up from its multi-decade lows.”

The Teacher Salary Myth

December 22nd, 2011

We have all heard complaints about low teacher pay, and out of sympathy have probably bought into the idea. Forbes brings us this piece by Warren Meyer where he discusses this issue with some numerical data. He makes some good points.

“The problem with salaries for government workers like teachers is that, in a monopoly (particularly one enforced by law), the usual checks and balances on compensation simply don’t exist.”

New Power For Brussels

December 22nd, 2011

New rules proposed by the European Commission would limit the sovereign powers of the member states. The move is aimed at forcing EU countries to give some of their budgeting authority to unelected EU bureaucrats. EUobserver published this piece by Leigh Phillips.

It may well come to pass, and I suspect that the gradual integration of the European Union has been planned from the start. However, these nations have been at war with each other over the centuries for less provocation. Making their national budgets subject to a supranational authority sounds strange indeed.

“”The EU is doing what it does best: creating new rules and layers of governance that undermine national sovereignty,” said MEP Jan Zahradil, the Czech chairman of the ECR.”

The Coming European Bailout

December 20th, 2011

We have covered the European crisis more than once, and have addressed the Feds probable involvement in it. Still, Ron Paul has a beautiful way of illuminating these economic events, and this latest piece by him is well done.

“A bailout of European banks by the European Central Bank and the Federal Reserve will exacerbate the crisis rather than alleviate it. What is needed is for bad debts to be liquidated. Banks that invested in sovereign debt need to take their losses….”

Stability Preservation In China

December 20th, 2011

Stability preservation and social management are key policies in the Peoples Republic of China (Red China). View these policies as you would the control of inmates in a prison. Liberty and justice are not part of the plan, just control and management of people, as is typical of Communist governments. Reuters carries this report on China.

The ongoing protest at the village of Wukan is an example of the protests that are springing up throughout China. This recent post gives some information on that village uprising.

“‘Stability preservation is the party’s defensive response to a society that is growing more fluid and assertive,’ said Cui.”

“He called the campaign – which has been given added urgency by upheavals rippling from the Arab world – a strategic task to ‘consolidate the ruling status of the party’ and protect order.”

“But Cui, the Beijing-based writer, said the stability drive would ultimately buckle under the weight of costs, corruption and pent-up social pressures. Wukan could be a forerunner of what Xi must confront.”

The View From The Mainstream Media

December 20th, 2011

Greg Hunter writes his usually incisive piece on USAWatchdog. This time he examines the one-sided reporting of the mainstream media.

“My new friend is 75 years old and gets a Social Security check every month. She’s pretty sharp, but I don’t blame her for being misinformed. She gets her news the old fashioned way—from the mainstream media (MSM).”

The Great Cellphone/Driving Hazard

December 19th, 2011

We have all been told about the growing problem of cellphone use and automobile accidents. The National Transportation Safety Board chief Deborah Hersman has voiced her concern for the problem. Or is there a problem?

Walter Olsen posted this item on Cato@Liberty where he reveals that the government is totally misrepresenting the data (read lying).

“…as columnist Charen notes, that overall highway deaths have been dropping steadily, from 44,599 in 1990 to 32,885 in 2010, even though there are now more licensed drivers and cars on the road, and of course vastly more phones. That’s no “epidemic.””

The Realities Of Socialized Medicine

December 19th, 2011

Obamacare is moving steadily toward implementation, whereupon the U.S. will receive its own version of socialized medicine. Had we given the plan any thought, we could have looked at the British or Canadian health systems to see that government run medical care does not work.

Forbes carries this piece by Sally Pipes on the ugly and inherent problems of socialized medicine.

“The incentives are wrong. The government’s main priority is keeping costs low — not providing quality care. Patients can’t choose how they receive their care — it’s one-size-fits-all medicine. And the entrenched NHS bureaucracy has no reason to improve efficiency.”

Obama Economics

December 18th, 2011

Peter Ferara has written an analysis of the Obama administration’s economic policies, their Marxist roots to the crisis in which we now find ourselves. His piece appears on Townhall.com.

“All of this is documented in the public record. This is the man the Democrat party took off the streets of Chicago, then pursuing a career as a Marxist street agitator, and launched into the White House, favoring him over Hillary Clinton because she was too moderate for the party.”

“Of course, essential to all of President Obama’s essential spending is to increase tax rates on the rich, otherwise known in English as the nation’s investors and job creators.”

Silver Forecast

December 18th, 2011

Silver seems to be in the news lately, mainly because it has dropped in price, but that does not change the fundamentals which are solidly in favor of higher prices for the metal. Paul Tracy writing on Street Authority produced this commentary on silver which I think is good, though not as thorough as I would like.

He makes the comparison of the 1980 price of silver to what it would sell for today adjusted for inflation. The price of silver generally follows the gold price, which is obviously manipulated by our government, and a case might be made that the silver price also is being manipulated down. So today’s prices are considerably below what the market would set, but the market will ultimately have its way, and prices will rise, and I think dramatically.

Paul Tracy did not mention the growing investment demand for gold and silver from international investors. Unquestionably silver is being consumed increasingly as an industrial metal, but investment demand is growing, especially from overseas investors who see silver as a safe haven. Chinese and Indian investment demand will be a major force in the market.

At the last of his article he cites the growth in above ground gold, which I think is misleading. Gold is almost entirely a monetary metal, so obviously it is not consumed as is silver. It is held by central banks and investors as the ultimate stable asset, unaffected by inflation or counter party risks. International investor demand likely will become the driving force in the price of gold.

Climategate – Now U.S. Govt. Collusion?

December 17th, 2011

Climategate 2.0 e-mails published in November have revealed another aspect to the promotion of man-made global warming by the University of East Anglia. It appears that the U.S. Dept. of Energy was encouraging the suppression of temperature data.

The question that should be answered is why was temperature data that was funded by the U.S. Dept. of energy treated as classified information, and why was the processing methodology of the data also kept a secret. Open review of data and data analysis is a fundamental tenet of scientific inquiry. One would have to be brain-dead to not conclude that the research was deliberately biased.

The report by Maxim Lott was published on Fox News.

“Two months later, Jones reiterated that sentiment to colleagues, saying that the data “has to be well hidden. I’ve discussed this with the main funder (U.S. Dept of Energy) in the past and they are happy about not releasing the original station data.””

Belgium Rating Cut

December 17th, 2011

Belgium has just had its credit rating cut by Moody’s Investors Service. The debt contagion continues to spread in the Euro zone.

Reuters carries this piece.

“”The fragility of the sovereign debt markets (in the euro zone) is increasingly entrenched and unlikely to be reversed in the near future,” Moody’s said in a statement.”

What Makes A Good School?

December 16th, 2011

The Atlantic gives us this piece by Jordan Weissmann. He presents a study by Roland Fryer who gathered data on what produced academic achievement in New York City charter schools. The old concept that small class size, high spending per student, and credentialed teachers makes for educational excellence proved wrong.

What Roland Fryer has discovered probably explains why spending more and more money on education has produced dismal results.

“Fryer found that class size, per-pupil spending, and the number of teachers with certifications or advanced degrees had nothing to do with student test scores in language and math.”

Polar Bears And Coca-Cola

December 16th, 2011

The Coca-Cola Company may be the poster child of eco-friendly companies. Coke has enthusiastically bought into the politically correct environmental agenda. Paul Chesser reports on the company’s many carbon friendly, sustainable, and energy saving programs. And let’s not forget that they are committed to saving the polar bears which have survived many millennia without man’s assistance.

Mr. Chesser’s article was posted on the National Legal and Policy Center website.

““Coca-Cola Enterprises is determined to grow more and to use less, and we are very proud to achieve the highest carbon performance score ever awarded by the Carbon Trust Standard,”….”

Please Don’t Break The Internet

December 15th, 2011

The Stop Online Piracy Act (SOPA) has gained some opposition from major internet executives who see the act as a means of censoring internet content. As with many federal laws it will likely have unintended consequences which will be worse than the problem being addressed.

CNN Money carries the piece by Dan Mitchell.

Vanishing Course

December 15th, 2011

The author is quite right in his analysis, and opens his article with “It is astonishing that those in the West are living through the near extinction of their civilization.” Using the term “near extinction” may be a little optimistic. The current generation may well see the end of western values. Herbert London laments the demise of the Western Civilization course that was basic to college education.

With little or no understanding of what we call western civilization and how it came to be, can the next generation preserve what they enjoy? Even if they are shallow enough to just want their material prosperity, that will not be maintained with the loss of western values.

Accuracy In Media published this piece.

Europe’s Banks, An Interview

December 14th, 2011

What is happening in Europe is like a three ring circus. It is hard to know what to watch because so much is going on. And all of this is not just so much amusement. Bank failures, recession, or the break up of the EU will drastically affect us.

Spiegel Online interviewed the head of the European Banking Authority, Andrea Enria, and the interviewer definitely asked the hard questions.

“Enria: There are other ways to raise the capital ratio: Banks can issue new equity…
SPIEGEL: …which no one will buy.
Enria: …and they can retain earnings…
SPIEGEL: …which won’t be too high in a difficult year like 2011.”

Voyager I Still Traveling

December 14th, 2011

Voyager I was launched in 1977 with the goal of collecting data from the outer edges of our solar system. The spacecraft continues to operate, but at a reduced level, and sends data back to the earth as it approaches the edge of interstellar space.

NPR posted this article.

Protesting Chinese Village

December 14th, 2011

More and more news of Chinese popular protests are making the news. These events have been covered up by the government in years past, but are now coming to the front, probably as a result of internet communications.

The residents of Wukan village have been incensed by the illegal confiscation of land by local officials. Protestor Xue Jinbo was killed allegedly as the result of a police interrogation. Reuters carries this piece.

Another Chinese protest was reported in this post of November 26.

“”Contrary to international human rights law and standards, Chinese citizens rarely have an opportunity for genuine consultation before eviction, rarely receive adequate information on the nature or purpose of the eviction and often receive little or no compensation,” the group said in a statement.”

Now It’s India’s Debt

December 13th, 2011

If the EU were not enough, now India is having its fiscal problems with a deficit climbing beyond expectations. Individual Indian states are also incurring debt at a rapid clip.

Yahoo Finance India carries this article.

The Real Antarctica

December 12th, 2011

If the massive layer of ice were stripped away from Antarctica, what would be left? Radar surveys of the continent have produced a map of the rock surface, complete with its high mountain peaks and deep valleys.

BBC News has this story by Jonathan Amos, science correspondent.

Robert E. Lee In Quotes

December 12th, 2011

Duty is the most sublime word in our language. Do your duty in all things. You cannot do more. You should never wish to do less.

I like whiskey. I always did, and that is why I never drink it.

I tremble for my country when I hear of confidence expressed in me. I know too well my weakness, that our only hope is in God.

It is well that war is so terrible. We should grow too fond of it.

Private and public life are subject to the same rules– truth and manliness are two qualities that will carry you through this world much better than policy or tact or expediency or other words that were devised to conceal a deviation from a straight line.

My chief concern is to try to be an humble, earnest Christian.