All articles written by Economics9698
The drip drip of breaking news exposing the Clinton Corruption just never seems to end these days. Nor is it likely to stop until she either drops dead of whatever ails her or she loses to Donald Trump in November.
After-all the Clinton pair have been busy at this corruption business for at least 40 years.
Yesterday Dave from thoughtsaloud.com found this video … so I will share it with you here. It is important these messages get spread to as much of the public as we can.
So thank you Dave 😉
This is a clip of the former Haitian Senate President, Bernard Sansaricq as he exposes the Clinton Foundation as the corrupt ‘charity’ that it is.
At a Donald Trump function Bernard Sansaricq talks about the Clinton’s attempting to bribe him, and how the Clinton Foundation stole money from Haiti during the 2010 earthquake, as well as how they use Haiti to funnel drugs and drug money to the United States.
Money which ended up in Washington D.C. and even the White House in cornflakes cereal boxes.
AMAZING but certainly not surprising.
FOR IMMEDIATE RELEASE
Contact: Adam H. Sudbury, Esquire
(407) 395-4111 (Office), (407) 335-0646 (Mobile/Text) or email@example.com
February 21, 2013; Orlando, FL. Mark E. Schmidter appeared in court today, Thursday, February 21, 2013, before the Honorable Belvin Perry Jr. for resentencing on one count of criminal contempt of court. The resentencing occurs after the Fifth District Court of Appeal in December found that Schmidter’s First Amendment right to free speech was violated by requiring him to stand within “free speech zones” at the Orange County Courthouse. However, the appeals court also found that restricting distribution of literature to jurors summoned for jury duty was legally permissible, and that Schmidter’s conviction for contempt on those grounds should be upheld. Schmidter was re-sentenced today to serve 145 days in the Orange County Jail, and was immediately taken into custody.
“Judge Perry views Mark’s actions as being a form of jury tampering. That just isn’t the case,” said Adam H. Sudbury, Schmidter’s attorney. “Jury tampering requires an intent to interfere with a specific case. Mark is simply trying to inform jurors that they have the right to acquit people charged under unjust or immoral laws.”
The organization with which Schmidter is affiliated, the Fully Informed Jury Association (“FIJA”) has had widespread success in advancing the cause of “jury nullification,” which is the right of a juror to judge both the facts and the law under which a person is charged.
“This case isn’t about jury nullification, or whether you agree or disagree with it. It is about our First Amendment freedom of speech. Mark has every right to tell jurors and non-jurors what he believes their role to be in our constitutional republic,” said Sudbury.
According to Sudbury, the next stage of the proceedings is to file a Petition for Writ of Habeas Corpus in federal court. He expects these papers to be filed at some point early next week. “Our case is currently pending before the Florida Supreme Court, and we also have a federal declaratory judgment action in the United States District Court for the Middle District of Florida. We will try to get Mark released by filing a habeas corpus petition as soon as we are able,” said Sudbury.
Questions about this release should be directed to: SUDBURY LAW, 407-395-4111 or firstname.lastname@example.org .
Wall Street analysis has been bearish on Wall Street since 2009. The DJIA recently hit 14,000 again, the first time since 2007 but this is a “nominal” number that does not take into inflation. Inflation adjusted the DJIA is still 9.4% below it’s 2007 high.
Despite this discount Hussman is still bearish on stocks and bonds. The only reason equities have been performing the last four years have been the massive Federal Reserve interventions in the marketplace called by various names notably quantitative easing and operation twist.
Here is what Hussman had to say about the value investors can expect to see in the near future:
“In recent years, I’ve gained the reputation of a “perma-bear.” The reality is that I’m quite a reluctant bear, in that I would greatly prefer market conditions and prospective returns to be different from what they are. There’s no question that conditions and evidence will change, unless the stock market is to be bound for the next decade in what would ultimately be a low-single-digit horserace with near-zero interest rates. For my part, I think the likely shocks are larger, and the potential opportunities will be greater than investors seem to contemplate here. Investors who are eager to lock in whatever prospective return might be available at present valuations – or have operationalized their investment discipline and tested its outcomes across market cycles over history – can certainly ignore the evidence that drives my own concerns. Even then, I expect that the perspectives here would augment the performance of that discipline. But for investors who have tested no discipline at all, and have little data to support the enthusiasm that surrounds them, what follows is a summary of my concerns.
Present market conditions now match 6 other instances in history: August 1929 (followed by the 85% market decline of the Great Depression), November 1972 (followed by a market plunge in excess of 50%), August 1987 (followed by a market crash in excess of 30%), March 2000 (followed by a market plunge in excess of 50%), May 2007 (followed by a market plunge in excess of 50%), and January 2011 (followed by a market decline limited to just under 20% as a result of central bank intervention). These conditions represent a syndrome of overvalued, overbought, overbullish, rising yield conditions that has emerged near the most significant market peaks – and preceded the most severe market declines – in history:
S&P 500 Index overvalued, with the Shiller P/E (S&P 500 divided by the 10-year average of inflation-adjusted earnings) greater than 18. The present multiple is actually 22.6.
S&P 500 Index overbought, with the index more than 7% above its 52-week smoothing, at least 50% above its 4-year low, and within 3% of its upper Bollinger bands (2 standard deviations above the 20-period moving average) at daily, weekly, and monthly resolutions. Presently, the S&P 500 is either at or slightly through each of those bands.
Investor sentiment overbullish (Investors Intelligence), with the 2-week average of advisory bulls greater than 52% and bearishness below 28%. The most recent weekly figures were 54.3% vs. 22.3%. The sentiment figures we use for 1929 are imputed using the extent and volatility of prior market movements, which explains a significant amount of variation in investor sentiment over time.
Yields rising, with the 10-year Treasury yield higher than 6 months earlier.
The blue bars in the chart below identify historical points since 1970 corresponding to these conditions.”
CATO Scholar Dan Mitchell’s Golden Rule: “Good fiscal policy exists when the private sector grows faster than the public sector, while fiscal ruin is inevitable if government spending grows faster than the productive part of the economy.”
Okun’s Law when unemployment falls by 1%, GNP rises by 3%.
Gresham’s law “Bad money drives out good”
And so forth.
One of the debates that will intensify when the fiat currencies collapse around the world is how to keep federal governments around the world from exploiting their positions of power over the people. By this I mean running up the debt and creating invisible taxation in the form of inflation on the people.
Hopefully we will have competing currencies from private banks and this will not be a big issue, when money is based on hard precious metals it is very difficult for government s to run deficits, but if some countries remain on fiat money there is a way to discipline them, call it Thompson’s Rule.
It is relatively simple:
1. Restrict federal spending to a percentage amount. Here in the USA because we have income, payroll and corporate taxes but no value added tax (VAT) we have historically collected around 18% of the GDP in federal revenues. This has varied little since WWII with the exception of today and the late 40s. Other countries will have to evaluate this percentage on a country by country basis but keep in mind for ever 10% of government created the economy loses 0.5% to 1.0% in GDP growth per year. This adds up over time very quickly.
2. Subtract two years from the budget year. 2013 – 2 = 2011. 18% of the nominal 2011 GDP.
18% of the 2011 GDP is $15.075 trillion x (0.18) = $2.7135 trillion. Current tax receipts are $2.671 trillion with the resulting deficit of 42.5 billion. Quite a difference from the trillion dollar deficits we are currently running.
Let’s check a few years to make sure this works.
2000 GDP was $9.951 trillion x 0.18 = $1.79 trillion in spending for 2002. Taxes collected in 2002 $1.859 trillion for a modest surplus.
1990 GDP was $5.800 trillion x 0.18 = $1.04 trillion in spending for 1992. Taxes collected in 2002 $1.148 trillion for a modest surplus.
1980 GDP was $2.788 trillion x 0.18 = $502 billion in spending for 1992. Taxes collected in 2002 $617.4 billion for a modest surplus.
Most years there will be a surplus. Only in bad economic times like today will there be a deficit. If the federal government is forced to run a surplus in the good economic times then deficit spending will not be such a politically and economically traumatic event in the bad years. This is how a federal government is supposed to operate, evening out the business cycle.
A couple of more advantages to this system is if greedy politicians want to spend money to buy votes they are forced to pass legislation that grows the economy. The less the economy grows the less they have to spend.
Second this forces greedy politicians to look at the hidden inflation tax as a negative not a positive like today. If the value of 2011 money is diluted by inflation the politicians will have less to spend to buy votes. This is the reverse of the system we have today where politicians have every incentive to create inflation as a hidden tax on the gullible public.
I would argue that this is better than a balanced budget amendment. With a balanced budget amendment what is to stop politicians from passing a VAT and increasing spending to 25% or 30% of the GDP?
Politicians will win that battle every time.
This system is simple and incentivizes politicians to control inflation and pass legislation that encourages economic growth.
If other economists want to steal this idea they are more than welcome.
According to the myth after the 1929 stock market crash, capitalism failed, and FDR with his great economic central planning saved the day. There is usually no explanation of why if FDR was inaugurated in 1933 we were still in a depression in 1940 with unemployment at 14.6%. During those years the textbooks focus on the central planning work programs and regulations like the SEC and the WPA.
Anyway, so in 1941 the USA began preparations for the possible entry into WWII and on December 7, 1941 we were officially at war. The economy was saved at last by massive federal planning and spending. There is usually an economic endorsement of this planning is needed for a modern economy to exist. Without this central planning evil capitalist would employ children in steel mills and we would revert back to the darkest days of the industrial revolution. This is the standard version of economic history in just about any textbook in any high school in America.
100% propaganda and balderdash.
Briefly, Hoover plunged the economy into the depression with higher taxes 25% to 63%, the Smoot-Hawley tariff bill, increased spending, 48.9% by 1932 with, of course, the ensuing deficits. He also organized agricultural cartels that worked to fix prices of basic food products at artificially high price levels establishing the USDA to serve as the price enforcement police. Fought against price reductions in crude oil when huge deposits were discovered in West Texas, and largely unknown in any history books, fought for high union wages and demagogue companies that cut wages even though prices of goods and services were plummeting.
FDR was the same as Hoover to a large extent. He raised taxes to 79%, confiscated gold from the people, devalued the dollar from $20.67 to $35 for an ounce of gold, or 69%, with the predictable inflation passed along to Main Street America at a time they could least afford it, passed pro union legislation making wages in many industries noncompetitive resulting in the predicable layoffs, and for good measure the Federal Reserve doubled the reserve requirement for banks.
One minor economic myth about the Federal Reserve from 1929 to 1933 is that they reduced the money supply; the usual number is 27%. This is completely false. The money supply was indeed rapidly shrinking but only because of the incompetence of Hoover and fear that the banks had overextended their balance sheets. Both 100% correct. The reality, according to the Federal Reserve, is that the monetary base, the money used to increase loadable funds to the public, was increased from $6.1 billion in 1929 to $7.6 billion in 1933 by the time FDR was inaugurated.
The textbooks never tell these stories, or that the Federal Reserve created the stock market and real estate bubble of 1925-29 by increasing the money supply 61.8%. The standard textbook tells of capitalism mysteriously exploding in 1929 and our wise overlords steering the economy back to health with great public’s works programs, regulations, and finally WWII spending.
The results of this successful propaganda campaign are remarks like the following appearing on a newspaper message board:
“In my opinion we can out grow the deficits if we can get the economy running at full capacity and growing. It is how we took care of the deficit after WWII which was a much bigger piece of the GDP than the present deficit.”
This thinking embraces the standard Keynesian economic thought we have today where if the government just spent enough money the economy would grow.
But isn’t this what happened after WWII?
Not even close.
There is simply no way the economy would have recovered after WWII if the federal government would have continued spending money and consuming resources. The official White House record on this is very clear.
Spending and Deficits.
1940 spending $9.7 million. 1940 federal consumption, percent of the GDP 9.8%. 1940 deficit -3.0%
1943 spending $78.6 million. 1943 federal consumption, percent of the GDP 43.6%. 1943 deficit -30.3%
1945 spending $92.7 million. 1945 federal consumption, percent of the GDP 41.9%. 1945 deficit -21.5%
1948 spending $29.8 million. 1948 federal consumption, percent of the GDP 11.8%. 1948 surplus +4.6%
The percent of the economy going to federal consumption in 1943 was an astonishing 43.6%. In real terms of the 1940/1943 comparison the public consumed $91.5 in 1940 compared to $86.6 million dollars worth of goods in 1943. In 1943 people had LESS to consume than before the war even though GDP had increased an astonishing 96%. This should be obvious, if the federal government increases its consumption of goods and services there is less in the private sector to meet the needs of the people. In real terms you may have had a job in WWII but you definitely consumed less.
By 1948 consumption had increased to $237 million, a 174% increase in consumption with a reduction in federal spending by 68%, from $92.7 million to $29.8 million. Clearly the economic lesson of WWII is when the federal government finally let go of the American people with poor central banking, poor economic regulation, less federal spending, and budget surpluses the economy responded with a huge economic boom.
Please feel free to verify this publicly available data using the White House Historic Data Tables and the Federal Reserve Economic Data web sites.
Economic policy is two parts, fiscal and monetary. Both can be mismanaged as is what happened from 1929 to 1940. Having sound fiscal and monetary policies means people can make a decent honest living without government assistance.
To simplify good fiscal policy is when the federal government sets spending limits as a percent of the GDP, say 18%, and sticks to a budget. There is no magic money fairy. Federal spending comes from taxes, borrowing, or printing money. The federal government may provide desirable programs but they are not free, they cost society resources that must come from the productive private sector of the economy.
Sound monetary policy is even simpler, stop printing money, stop setting artificial interest rates, stop setting the reserve requirement for banks. Artificially low interest rates are preventing the economy from recovering today and set the stage for the housing boom and bust in 2003-04 when the federal funds rate was lowered AFTER the 2001 recession to 1%. It is that simple, stop printing money for Wall Street and politicians, stop artificially interfering with interest rates, let banks manage their own reserves.
The politicians and economists who work predominately for government universities try to confuse the public about the subject of economics. The ulterior motive is greed and power. Wall Street benefits by the central bank indirectly stimulating stocks and increasing liquidity in member banks like Goldman Sachs and JP Morgan. Politicians benefit by having their budget deficits monetized by the Federal Reserve. The loser is the public who pays for this theft with taxes and inflation.