One guess as to who is on the hook for that negative $75 trillion. From Simon Black at sovereignman.com:
Usually around the middle of February each year, the US Treasury Department releases an annual report of the federal government’s financial condition.
It’s called the Financial Report of the US Government… and it looks a lot like an annual report that you might see filed by a big company like Apple or Facebook.
Except that, unlike Apple and Facebook, the US government’s annual report is absolutely gruesome.
This year’s report is no exception, save for one humorous anecdote: they -just- released it. In other words, they’re a month and a half LATE (given that the report is typically released in mid-February).
I actually CALLED the Treasury Department myself in early March, asking when they would publish the report.
The bewildered individual on the other end of the line said that he had no earthly idea, given that the government had been shut down for so long earlier this year.
Anyhow, if you want to see the report for yourself, you can download it here.
Raúl Ilargi Meijer examines the Boeing crashes. From Meijer at theautomaticearth.com:
We had already been told that in the Ethiopian Airlines flight ET302 crash which killed all 157 people on board, the 4-month old 737 MAX 8’s anti-stall software reengaged itself four times in 6 minutes as the pilots struggled to straighten the plane post-takeoff. In the end, the anti-stall software won and pushed the plane nose-down towards the earth. Now, Ethiopia -finally?!- released its report in the March 10 crash:
Minister of Transport Dagmawit Moges said that the crew of the Ethiopian Airlines flight from Addis Ababa to Nairobi on 10 March “performed all the procedures repeatedly provided by the manufacturer but were not able to control the aircraft.” As result, investigations have concluded that Boeing should be required to review the so-called manoeuvring characteristics augmentation system on its 737 Max aircraft before the jets are permitted to fly again, she said.
The results of the preliminary investigation led by Ethiopia’s Accident Investigation Bureau and supported by European investigators were presented by Ms Moges at a press conference in Addis Ababa on Thursday morning.
Ethiopia is being kind to Boeing. However, though the anti-stall software played a big role in what happened, Boeing’s assertion (hope?!) that a software fix is all that is needed to get the 737MAX’s back in the air around the globe rests on very shaky ground (no pun intended whatsoever).
Government spending does not promote recoveries or economic growth, especially when it goes down the rat holes to which most such spending goes. From Bradley Thomas at mises.org:
A growing number of economists are predicting the current economic boom will turn to bust in 2019. When recession does come, will economists simply call for more of the same — namely endless government spending?
After all, in the wake of the 2008 financial crisis, most economists told us the problem was the private sector was not spending and investing enough. So, we were told, government must step in and make up the difference with deficit spending to get “idle resources” — like capital goods and labor — back to work.
But what should the government be spending on? Apparently, anything.
This is not an exaggeration. For example, noted Cal-Berkeley economist Brad DeLong insisted in 2009 “At this point, anything that boosts the government’s deficit over the next two years passes the benefit-cost test — anything at all.”
Such thinking reveals one of fatal flaws of mainstream economics: the idea that all the economy is one big homogeneous blob. As Friedrich Hayek put it, “Mr. Keynes’ aggregates conceal the most fundamental mechanisms of change.”
You can’t inflate your way to prosperity. From Alasdair Macleod at mises.org:
Last week, the ECB announced the reintroduction of targeted long-term refinancing operations for the third time. TLTRO-III is scheduled to start from next September. The idea is to make yet more money available for the banks at attractive rates on condition they increase their lending to non-financial entities.
The policy is justified because the ECB sees growing signs the Eurozone economy is stalling, possibly badly. The weaker Eurozone economies are moving into outright recession, and Germany’s motor exports appear to have dramatically slowed, putting a constraint on her whole economy.
The ECB’s reintroduction of TLTRO is an offer of yet more monetary and credit inflation, despite the evidence that unprecedented waves of monetary inflation in the last ten years have failed in all the objectives for which they were designed, except two: governments have continued to get the funds to spend without meaningful restraint, and insolvent banks have been preserved.
Only two months after its asset purchase programme officially ended, the inflationists are at it again. But one wonders why the ECB bothers to delay TLTRO-III until September. If it is such a good thing, why not introduce it now?
If the US were to adopt the “Swedish model,” so beloved by so-called democratic socialists, the US would become more capitalistic. Sweden is a mixed economy, but it is certainly not socialistic, and by many measures its economy is freer than the US’s. From Michael Munger at aier.org:
Josh Billings famously diagnosed a problem with beliefs: “I honestly believe it is better to know nothing than to know what ain’t so.” I am astonished at how many students, and for that matter adults, in the U.S. honestly believe that the U.S. should model itself after Sweden because Sweden has shown that socialism works.
I will leave aside the question of whether the U.S. should try to “be like” Sweden; they are very different countries, with different histories and different institutions. But it is important to refute, using simple and widely available empirical evidence, the claim that Sweden is “socialist.” It is not. In fact, Sweden is one of the most robustly capitalist nations on earth.
By socialism, I mean a system that relies on state ownership and control of the means of production, state direction of production decisions, and direct state control of education and employment decisions of individuals. If one does not mean those things, then that would require a little more thinking about what “socialism” means. If by “socialism” you mean prosperity and rule of law, then you are confused.
There are several important issues to discuss, to understand the differences between capitalism and socialism.
The Tesla company, its cars, and global warming are articles of faith among a certain set. That faith is going to be tested. From Tom Luongo at tomluongo.me:
As the center of the U.S. freezes this weekend, Elon Musk is trying to figure out how to save Tesla from going the way of Enron.
Religions die hard. It takes an orgy of evidence to change a person’s mind on a subject that is integral to their moral and ethical structure.
In the case of Tesla, the mania surrounding it over the past decade has been inextricably bound up with the hysteria of global warming.
For years investors ignored the obvious warning signs that Tesla would never be able to graduate from a boutique, hand-built car manufacturer and technology skunk works to a mass producer.
I’ve been very hard on Musk in the past, with good reason. But, as a guy with vision I applaud him getting Tesla off the ground and legitimizing the idea of the upscale electric car.
But it was never going to work as a mass production scheme because Musk isn’t that guy. He’s a dreamer and a schemer, not a builder. And, as I’ve said multiple times, he should have stepped down as CEO of Tesla ages ago.
A man has got to know his limitations as The Man once said.