Wednesday, August 31, 2011

Is The Need for Stimulus "Undeniable"? As Schiller says.

A recent article by the best known Keynesian economist at Yale, Robert Schiller, begins this way: "[A] ... fact... about our current economic situation... can no longer be denied: our economy is in desperate need of government stimulus."

Does the rest of the article provide a defense of stimulus? No. Since the need for stimulus it is undeniable, there is no need to defend it. No reasonable person would disagree. Right?

Wrong. There is a problem here. Reasonable people do disagree, strongly disagree. Robert Barro, the distinguished Harvard economist, wrote an article about the same time as Schiller's explaining why neither logic nor evidence supports government stimulus programs. Barro is far from alone, among either economists or the general public.

Click here for the article.

Saturday, August 27, 2011

My piece: Is There a Conspiracy Against Ron Paul




The Ron Paul piece I did for my column in the Culpeper Star-Exponent on Thurday was widely shared and was even the first thing that came up in Google for "Ron Paul" for nearly 24 hours on Friday.


Thanks for sharing folks :)

A story missing from our media: Iceland's on-going revolution

As one European country after another fails or risks failing, imperiling the Euro, with repercussions for the entire world, the last thing the powers that be want is for Iceland to become an example. Here's why:

Click here for the story.

Wednesday, August 24, 2011

NOW they are scared of Ron Paul




By Nick Sorrentino


I am not one for conspiracy theories. One of the important things I learned in my brief time in Washington DC is that it is very hard to keep a secret secret in politics. But in the wake of Ron Paul’s near victory (he lost by less than 1%) in the Iowa Straw Poll I had to fight the thought that there was a concerted effort among many to keep Ron Paul as far off the radar screen of Americans as possible.

It was truly bizarre. As a long time fan of Dr. Paul’s I long ago got used to the shabby treatment given to Paul by most of the media. But after the poll, media shabbiness was taken to a whole new level.

It started with the head of the Iowa GOP announcing the winner, Michelle Bachman, and then wishing everyone a good night without announcing the rest of the placing. This was never done before. Traditionally the other places were announced. Of course Ron Paul had never placed second in the Iowa Straw Poll before.

I watched the Sunday morning talk shows the next day. Michelle Bachman (a native of Iowa) was on every channel crowing as she had every right to, she won. However, Ron Paul was nowhere. That seemed nearly as weird as the winner announcement the day before.

In fact when talking about the poll results most of the Sunday shows did not even mention Ron Paul. They mentioned Bachman. They mentioned Pawlenty because he dropped out. They mentioned Perry (who was not even on the ballot) because he had just entered the race. And they mentioned Romney because someone declared him the “frontrunner.” Nothing, I mean nothing, about the man who nearly won the contest, Ron Paul.

The next day Paul announced that he had been scheduled to be on one of the Sunday morning shows but that the show had called and canceled. He declined to say which one it was.

When I heard that I knew it was official. The establishment was now scared of Ron Paul. It thinks he can win the presidency if things break right for him a couple of times. But both the establishment left and the establishment right do not plan on allowing any breaks to come Paul’s way.

It’s like this.

The establishment left fears Paul because he is actually serious about reducing the size of government, by a lot. They see a Paul presidency coupled with an even more powerful Tea Party in Congress as the possible death of the New Deal dream. This blows their minds. Obamacare under a President Paul? Not likely.

The establishment right fears Paul because he is a threat to the massive warfare (and now surveillance) state that this country has built since World War II. If we bring our troops home, if we end the wars that are bankrupting the country, if we abolish the TSA, if we reign in the Department of Homeland Security, how is the establishment right going to get money to the people who give the establishment right politicians money?

So there you have it. Both sides don’t want Paul to be president, and because Paul represents change, not fake Obama “change” but real change, they will do everything they can to make sure their club remains intact.

Why do you think there is the new, and in my opinion highly unconstitutional “Super Committee” in Congress? It is an end run around the Tea Party by both the old GOP and the Democrats to make sure their power is not reduced.

That darn Constitution keeps getting in the way. Doesn’t the Tea Party (and Ron Paul) know that it is we who are the ones in charge. This is our country. We are the big shots. You, the peons are to follow as you always have. Do as we say. Don’t even THINK of voting for Ron Paul.

Tuesday, August 23, 2011

Earthquake in DC- Tweets of scorn

Quake provides field day for Washington wise-acres

Click here for the story.

Sunday, August 21, 2011

Queensboro Bridge in NYC sign hacked reads: Ron Paul 2012

The bridge is now named for Ed Koch the former NYC mayor. He isn't happy appearently. I can understand.

Click here for the story.

Saturday, August 20, 2011

The lack of posts, AgainstCronyCapitalism.org

My apologies to my regular visitors. Over the past 2 weeks I have been trying to get a couple of websites up for people who payme. As I am a fan of being paid I have focused my attention there and have neglected this site. It looks like the new sites are ready to leave the nest so I will begin posting daily here again.

One of my projects, AgainstCronyCapitalism.org is one that might be of special interest to readers of the LER. It is a partnership between me and legendary investor Hunter Lewis, founder of Cambridge Associates. They manage the Harvard endowment along with 3/4 of all the other college endowments in the USA. You'll like his stuff, so please VISIT.

Sunday, August 14, 2011

Baby Boomers Exit, Leave Mess

By Nick Sorrentino

Last night I couldn’t sleep. Between a rather nasty summer cold and what has been happening in the stock market I just couldn’t rest. It looks like I may be in for some more restless nights in the weeks ahead.

I wish the world economy only had a cold. Unfortunately it has something much more serious. The world has waited and waited for a recovery, but the economy is still bed ridden two years into its “recovery.” We are in very serious trouble I am afraid.

Despite two years of cheerleading from the Federal Reserve, the media (both financial and otherwise,) and the White House, we are stuck. We are lucky that things are not much worse. Unfortunately our luck may have just run out.

Though much has been made of the downgrade of US debt by S&P, this is only a small part of what is driving what looks like another leg down in the “Great Recession.”

Europe and the death of its unsustainable welfare state is a much bigger part of the picture. Europe has made promises to its people based upon bizarro economics. Somehow everyone was supposed to have a month and a half vacation, and the ability to retire at 55, and things were to just chug along even with economic stepchildren such as Greece and Portugal clinging to the Euro zone’s skirts.

It was the European, post World War II dream. That dream is quickly turning into a nightmare.

But even Europe isn’t the biggest problem. It’s us.

The United States doesn’t want to come to grips with reality. That’s why we see such consternation and gnashing of teeth these days.

The American post World War II dream is dying right along with Europe’s. The days of a constantly expanding international empire fueled by an “almighty dollar” are coming to a close. As this order ends we will continue to see economic and political dislocation. But we don’t want to accept it.

For some this new reality is a catastrophic state of affairs and it’s just nearly impossible to accept.

For those approaching retirement there is a cold wind blowing across their portfolios. Not only that, social security is subject to the same demographic realities that are hammering Europe and is unlikely to survive in its current form. What had once seemed fairly sure, a comfortable retirement fueled by dividend heavy mutual funds and Social Security no longer looks so sure. In fact it looks pretty unsure.

For 70 years we have expanded government and put the cost of paying for it off on the next generation. The problem is that on a worldwide level, across what is generally referred to as “The West,” the generation exiting the scene is larger than the one replacing it. Since the state must be funded by those who are working, by-and-large, this is a major problem.

Add the dislocations of a postindustrial society and you have a recipe for massive change.

The Tea Party had little to due with the recent S&P downgrade despite the talking points coming from the White House and filtered through the establishment press. As I said the S&P rating is not the prime mover of the new market crisis anyway. Interestingly investors are actually piling into US Treasuries despite the downgrade looking for “safe haven.”

So that could be construed as encouraging.

On the other hand if investors are still buying US debt for safety reasons, despite a $60 trillion obligation that likely will never be paid back, one has to ask how bad the rest of the world economy is.


Friday, August 12, 2011

Ron Paul wins poll from debate, FOX removes results




Great map of votes form last night's Fox News debate poll across the country. Ron Paul wins in almost every state. Not worth reporting though.


The establishment is flat out scared.



Tuesday, August 9, 2011

Bernanke Fed Admits QE Has Failed


Is the Fed "throwing in the towel?" as this article says? I am sure not. But this is a new tone from the Fed and one that will confuse the markets in the near term I think.


"It appears that QE has failed. In its latest post-rate setting meeting statement, the Federal Reserve noted that the economy’s growth rate remains “considerably slower” than expected, while noting that temporary factors only explain part of the problem."

Click here for the article.

Friday, August 5, 2011

About Me

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Nick Sorrentino is the Editor of The Liberty and Economics Review and CEO of Exelorix.com a social media management company.