Category Archives: Economics

“Green” Socialism is Still Socialism, by Thomas DiLorenzo

Green socialism often combines bad science with bad economics. From Thomas DiLorenzo at lewrockwell.com:

Upon taking control of the U.S. House of Representatives the first thing America’s Marxist Party did was to propose a Soviet-style, communistic destruction of American capitalism labeled a “Green New Deal.”  The Party chose as its spokesperson for this totalitarian venture a young woman named Sandy Ocasio who grew up in one of the wealthiest enclaves in America, Westchester County, New York, but who decided to lie about this to get into politics by calling herself “Alex from the Bronx.”  Sandy sounds like a poorly-educated-but-well-indoctrinated young communist with a ninth-grade mentality.  She proudly labels herself a “democratic socialist” but as Ludwig von Mises explained, there really is no difference between communism and socialism: they are both attacks on private property and economic freedom.  She seems clueless about just about everything she talks about in public, whether it is the Constitution, especially the economy, the structure of government, history, etc.  This is the person the American Marxist Party has chosen as its front person in its proposal to destroy American capitalism, prosperity, and the American dream forever—and to give itself totalitarian control over virtually all aspects of American life.

The first thing to understand about the proposed “Green New Deal” is that the first New Deal not only failed to end the Great Depression but made it more severe and longer-lasting.  Its only “success” was in creating endless patronage opportunities and levers of political bribery and extortion for the Democratic Party, opportunities that the Republican Party happily embraced whenever it could to expand its own power and wealth in the succeeding decades.  The proposed Green New Deal would do the same, only many orders of magnitude worse.

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These 8 Red Flags Warn Us We’re Speeding Toward an Economic Collapse RIGHT NOW, by Daisy Luther

We’ve been speeding toward economic collapse for a long now, but maybe the capitalized RIGHT NOW means it’s just around the corner. From Daisy Luther at theorganicprepper.com:

This isn’t exactly an article loaded with Christmas cheer, but there’s a very good reason that my family has strictly limited our holiday splurges this year. It’s because all the signs right now seem to indicate the US is hurtling toward an economic collapse.

It’s inevitable, of course. Our economy has been artificially propped up for decades, since abandoning the gold standard. We’re $21 trillion dollars in debt, an unfathomable number. The fact that other countries still lend us money boggles the mind. If the United States was a person with such a high ratio of debt that we aren’t paying off, we wouldn’t even be able to buy a car with one of those 25% interest loans, that’s how bad our credit would be.

Not only that, but there are some parties who seem to want to see the economy go belly up for their own greedy and nefarious purposes.

Here are the red flags that have me concerned about an imminent economic collapse.

The stock market is crashing.

Right now, the market is on track for a month that is equivalent to the crash of 1929, when the Great Depression began.  Both the Dow Jones Industrial Average and the S&P 500 are down by 8% during a month that is usually really good. Michael Snyder reported:

The ferocity of this stock market crash is stunning many of the experts, and many investors are beginning to panic.  Back in early October, the Dow hit an all-time high of 26,951.81, but on Monday it closed at just 23,592.98.  That means that the Dow has now plunged more than 3,300 points from the peak of the market, and many believe that this stock crash is just getting started. (source)

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All (Political) Roads Lead To Massively Higher Government Spending, by John Rubino

All of the revolutions, quasi-revolutions, and proposed revolutions out there are pushing for higher spending and less taxes. That’s problematic when the overthrown governments are deeply in debt. From John Rubino at dollarcollapse.com:

The past few years have seen more than the usual amount of political upheaval. But, interestingly, most regime changes have resulted in pretty much the same thing: Higher government spending and bigger deficits.

Apparently the only “reforms” today’s voters will accept – which is to say the only actions that don’t get a leader kicked out of office – involve spending rather than saving money.

Three recent examples:

The US
Republicans – the party of smaller government – gained control of the White House and Congress in 2016, and proceeded to take a meat ax to bloated entitlements, lowering the government’s share of the economy to levels not seen since the Reagan years.

Just kidding. They tried to eliminate the newest entitlement, Obamacare, but failed to produce even a coherent proposal. So instead they cut taxes, expanded the military and left everything else on autopilot. Now, nine years into a recovery with official unemployment below 4% — and with the small-government party in charge:

U.S. budget deficit approaches $1 trillion

(MarketWatch) – The Treasury Department says that adjusted for timing-related transactions, the deficit would have been $270 billion over the last two months compared to $250 billion during the same period the prior year, with tax revenue up by 1% but spending up by 4%.

The budget picture is deteriorating as the U.S. taxes individuals and companies less and spends more, mostly on defense and benefit payments to an aging population. Though a growing economy is softening the blow, it’s possible that the annual deficit will top $1 trillion this year.

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The Empire’s Sea of Woes, by Robert Gore

The noose cinches.

Second-rate George H.W. Bush got a first-rate Washington send-off. For one day it interrupted the downtrend in equity markets. It may mark the US apotheosis of inflated grandiosity. Across the Atlantic, Emmanuel Macron, pretentious popinjay of Gallic grandiosity, has gotten a deserved comeuppance. Brexit, Trump’s election, and nationalist uprisings in Southern and Eastern Europe apparently insufficient warning to the globalists who would rule us, the French rioters are sending yet another wake-up call. If that’s not enough, so too are many of the nations outside the Euro-American welfare state asylum.

The crazies’ kings, queens, and courtiers face a dwindling inheritance and mounting debt, but spend lavishly to keep up appearances. Falling markets and rioting taxpayers are unwelcome reminders that the money’s running out, leaving behind a stack of IOUs that won’t be paid. The aristocracy wants to offload the pain to the peasantry, but the riots demonstrate that the peasantry has other ideas. Our betters also want to blame their sea of woes on Eurasia’s leaders, but Russia, China, Russia, Turkey, and Iran are having none of that. They are, however, delighted to see the West crumbling and will do nothing to stop it.

Empire is America’s noose, hubris America’s curse. Once upon a time it didn’t matter much to the American people or their politicians what happened in Asia, Africa, the Middle East, or even Europe. During the nineteenth century, for the most part we minded our own business, and what a business it turned out to be. America became the world’s industrial, technological, and commercial powerhouse.

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Nearly Two-Thirds of Non-Citizen Households on Welfare, by Joe Schaeffer

SLL has said ad nauseum that open arms welfare states are not compatible with welcome mat immigration policies. From Joe Schaeffer at libertynation.com:

Another day, another revelation as the great fleecing of the U.S. taxpayer continues unabated. A Center for Immigration Studies review of U.S. Census Bureau data reveals a stunning 63% of households in the U.S. headed by non-citizens are on some form of welfare. That’s just shy of two out of every three proving to be a burden to the American people. So much for the lie that massive immigration enriches our nation.

Dead Weight

The information CIS uncovered is infuriating in a number of ways. The 63% figure is almost twice the rate of native-headed American households that use welfare, which is a disturbingly high 35% as it is. But non-citizen households (45%) also utilize food programs at a much higher rate than natives (21%), and disproportionately tap into Medicaid programs as well (50% vs. 23%).

The most telling statistic in the review, however, is that welfare use rises among non-citizens the longer they are in our country. “Of households headed by non-citizens in the United States for fewer than 10 years, 50 percent use one or more welfare programs; for those here more than 10 years, the rate is 70 percent,” CIS discovered.

Rather than serving as a temporary safety net, our welfare programs are proving to be a lifestyle staple for non-citizens sponging off the American taxpayer. Of course, many of these non-citizens do work, but they are low-skilled Hispanics from Central America laboring at poverty-level jobs. A 2015 CIS report found that 67% of households headed by immigrant farm workers are on public assistance of some form. Swollen-eyed Big Ag industrial farmers crying out about the need to find workers willing to do “the jobs Americans won’t do” are in fact having their cheap payrolls subsidized by the welfare programs of this nation.

Bitter Factors

At a time when native-born Americans are working long hours with less vacation time and fewer benefits, we are being forced to carry the millstone of foreign squatters on our backs. Massive immigration has led to overcrowded cities and towns, aggravating traffic congestion that leads to an even more draining daily commute for Americans just so we can we have the privilege of having our wages heavily taxed to financially support the very same invaders who are making our work day more exhausting. This is madness.

Immigrants also suppress wages, especially for low-skilled workers, so that 35% figure of natives utilizing some form of welfare may be so high in part due to the fact that the non-citizens abusing our welfare programs are also making it impossible for a portion of our citizen population to find decent-paying jobs. Thus non-native interlopers are increasing the welfare burden beyond just what they actively take for themselves.

The Trump administration’s Department of Homeland Security has released a draft proposal to prevent immigration by those who are likely to be a public burden on the American people. This new CIS report overwhelmingly confirms the urgent need for such a policy. Anyone opposing this sane safeguard through hollow accusations of “racism” or self-serving pleas for cheap labor is an enemy to the American working man and woman. And we will remember them for it.

Lenin would be so proud, by Simon Black

By socializing risk, in other words by making others pay for someone else’s mistakes, we make sure those risks will be taken again and again. From Simon Black at sovereignman.com:

Several years ago back in 2004-2006, if you had a pulse, you could borrow money from a bank to buy a house.

In fact, bank lending standards were so loose back then that there were some infamous cases of people who DIDN’T have a pulse who were still able to borrow money.

That’s right. Some banks were so irresponsible that they actually loaned money to dead people.

Of course, it turned out that lending money to dead people… or people with terrible credit who had a history of default, was a bad idea.

And the entire financial system almost blew up as a result of this reckless stupidity.

But then something even crazier happened: the Federal Reserve came in and bailed out all the banks with trillions of dollars of free money.

That was utterly nuts. Instead of being wiped out by their idiotic mistakes, the banks learned that they would always be bailed out no matter how stupid or greedy they acted.

The key lesson was that there would be zero consequences for bad behavior.

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On The Road to a Post-G20 World, by Pepe Escobar

Various multilateral trading blocs have formed and will continue to form as a counterweight to the US’s global dominance. From Pepe Escobar at consortiumnews.com:

The ascendence of China and multilateral trading blocks could eventually spell the doom of the G20 and U.S. global dominance, as Pepe Escobar explains.

The trade war launched by the Trump administration against China may not have been solved by a 2½-hour dinner between Chinese President Xi Jinping and Donald Trump at the G20 in Buenos Aires on Saturday. But it may have opened a path towards a drastic realignment.

Way beyond the histrionics surrounding the “family pic” – and whose nods and winks signaled surefire geopolitical capital – the G20 walked and talked like a last gasp to “save” the current turbo-capitalist world (dis)order.

The sherpas at the G20 lost sleep for two consecutive nights trying to come up with a final declaration capable of appeasing Trump. As virtually every nation at the G20 supports multilateralism on trade, nobody wanted to upset even more the real Big Boss in Buenos Aires: Xi Jinping.

The climax in any case was the U.S.-China bilateral – which carried the potential, if things went downhill, to derail the global economy.

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