Entries Tagged as 'Socialism'

How to Play the Situations In China and Greece

The following is an excerpt from Private Wealth Advisory...

Stocks are rallying today because of:

1)   Hype and hope of a Greek deal.

2)   China has stopped trading of 49% of stocks and threatened to arrest anyone who is short-selling the market (talk about a backstop!).

Regarding Greece, no deal has been made. Greek PM Tsipras has submitted a proposal for a new deal… which is almost EXACTLY the same as the deal that 61% of the Greek population rejected via referendum last week.

Tsipras has completely backed himself into a corner. He used up a lot of goodwill with EU officials when he let Greece default by staging a referendum for Greek voters AFTER the due date on Greece’s debt.

The voters obviously voted “No” on the EU’s deal… so Tsipras has had to come up with a new proposal. The only thing he can suggest that would possibly sit well with Greek voters is “debt forgiveness,” which Germany has stated it is absolutely opposed to.

So now Tsipras must decide… does take a bad deal (the same one voters said “no” to last week), which will force a popular revolt in Greece (and likely his expulsion from office) or is he the man who takes Greece out of the Eurozone?

 

His finance minister has already quit his post… and doesn’t seem too upset about it. Perhaps Tsipras will follow suit, Greece will elect another PM and the whole charade can start all over again?

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The Greek drama has engaged in “extend and pretend” for five years now. It’s highly likely that it will continue this time around with Greece accepting a bad deal and plunging further into economic collapse until the next debt problem emerges.

As for China…

Anyone who bothered to look at the actual data coming out of China (the un-massaged data, not the fictitious GDP numbers), knew the China economy was in collapse. It was only a matter of time before its stock bubble joined suit.

Sure enough, the bubble burst, and the Chinese stock market has erased over $3 trillion in wealth in the space of three weeks.

The Chinese Government, which we are told is moving towards free market capitalism, has thus far dealt with the crisis by halting 49% of stocks from trading and threatening to arrest (and likely “disappear”) anyone caught short-selling stocks or somehow promoting market “instability.”

The market is bouncing on this… it’s now coming up against the first line of resistance (blue line) established by the uptrend from late 2014. If we break above that we could even bounce to retest the longer-term bubble bull market trendline (green line).

However, after that we’re heading DOWN in a big way. The bubble has burst. Bubbles NEVER reflate after bursting.

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Crises never unfold in straight lines. Investors forget that when the Tech Bubble burst, stocks were a roller coaster with over EiGHT moves of 16% or greater in the span of six months.

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China’s bubble was even larger than the Tech Bubble. The price volatility will be even more severe… but the bubble has definitively burst… and the market will be heading lower in the coming weeks.

In short… the two biggest reasons for the markets to be rallying today (Greece and China) are simply temporary issues. They will resolve, very likely for the worse, in the coming weeks. Smart investors should be using this bounce to prepare for the next wave of the Crisis.

If you’re looking for actionable investment strategies to profit from this trend we highly recommend you take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Mover Mike Hit 2,000,000

After an incredible June, Mover Mike hit 2,000,000 page views. I have been blogging since 2004 and it is nice to see that more people are finding this blog. Sometimes, I have considered quitting, thinking why bother, no one reads me. However, conservative fiscally, Libertarian socially, this blog joins many others who don’t like the path the U.S. is on.

No longer can we discuss things rationally and heatedly.  Now it seems the play book says to ignore the message, savage the messenger. We are seeing that currently with Trump and we read that Hillary hasn’t answered the press questions in two weeks. AND…more and more people are considering leaving the country.

Mexico”sends” their unemployed to the U.S.. How long will 93,000,000 unemployed and under employed wait to move south? How long will the drought stricken  in the south west wait to move? What happens when the U.S. becomes like Greece and can’t feed the 43,000,000 on EBT?

Stay tuned, dear reader. I hope to cover it and provide some answers. Thanks for reading Mover Mike

Interest Rate Hike

Fed holds off on interest rate hike, downgrades economic forecast, Says the LA Times

“The economy still isn’t strong enough to handle it.

“Fed officials sharply downgraded their economic forecast for this year. They projected the economy would grow between 1.8% and 2% this year, well below the range of 2.3% to 2.7% in its last forecast in March.

“If they’re correct, annual growth would be the worst since 2011 and would be far from the breakout performance some economists had hoped for this year.”

The economy is stagnating, the middle class hasn’t seen any wage increases adjusted for inflation for at least 10 years. He is priced out of the housing market, over loaded with debt, lives paycheck to paycheck, and doesn’t have the extra money to get the economy moving. I think the people in charge ought to be fired for incompetence; 92 million people out of work or looking for work; almost 50 million people on EBT.

NO WAY TO RUN A RAILROAD

NO WAY TO RUN A RAILROAD

Written by Richard Rahn at To The Point News

If taxpayers suddenly stopped subsidizing Amtrak, what do you think would happen?

Before trying to answer that question, it is useful to review U.S. railroad history. The first railroads were built in the United States in the late 1820s, and by 1900, only 70 years later, almost every town in the country had rail access.

Railroads were high tech, the Internet of their time. The system was built and profitably operated by private companies.

Amtrak and the modern freight railroad companies use the infrastructure that was built long ago. The 180-year-old privately built Canton Viaduct (an incredible stone bridge – see link) in Canton, Massachusetts and the 100-year-old Hell Gate Bridge (the model for the Sydney Harbor Bridge in Australia) over the East River in New York are still used by Amtrak.

The investor-owned Pennsylvania Railroad built the hugely expensive North River Tunnels under the Hudson River in 1904-1908, which were technological wonders of the time. They are still used by all of those who ride Amtrak from New Jersey to New York.

(As an aside, I found it rather ironic when President Obama claimed that private business only succeeded by using government infrastructure —  “You did not build that” — when, in fact, government mostly uses privately built infrastructure.)

Once the railroads were built, state and local governments began heavily taxing every mile of track and other railroad facilities, and the federal government imposed endless regulations, including regulating fares.

The predictable result was that expenses grew faster than revenues — causing deferred capital spending and maintenance. Eighty years ago, trucks, automobiles and airplanes began to lure away rail’s customers. As a result, the rail industry began a death march after World War II.

Railroad companies ripped up thousands of miles of track to save on expenses and tax levies. Today, the United States has a fraction of the number of miles of railroad tracks compared to what it had 100 years ago. Route mileage peaked at 254,251 miles in 1916 and fell to 139,679 miles in 2011.

By the late 1960s, most of the nation’s railroads were in deep trouble as a result of new forms of competition, disastrous tax and regulatory policies, and inflexible unions. In 1971, the federal government created Amtrak as a government corporation to operate intercity passenger rail service.

By contrast, freight rail was finally deregulated in 1980, now resulting in the most efficient and profitable freight railways in the world.

Amtrak has eaten through more than $45 billion in taxpayer subsidies in its 44-year history. The only line it has that it claims to be profitable is the Northeast corridor from Washington to Boston, which was shut down for six days following last week’s fatal train crash near Philadelphia.

It is widely acknowledged that Amtrak is poorly managed — as are most government enterprises — but nothing is done about it by either the administration or Congress. Amtrak even manages to lose money on its food service, which is hard to do when one has a captive market and serves only mediocre food at high prices.

Studies show the government could save money by giving away airline tickets to everyone who rides some of the long-distance Amtrak routes, because the subsidy per passenger exceeds the cost of an airline ticket over the same route.

It is no surprise that many of those who call for more taxpayer spending on Amtrak are the affluent media and political folks who frequently travel between New York and Washington. To pay for their subsidies, they seem to have no trouble taxing lower-income folks in much of America who have no access to Amtrak.

The rail tunnels under the Hudson River are now more than a hundred years old and will need to be rebuilt or replaced. Many members of Congress are calling for billions of taxpayer dollars to be spent to rebuild these tunnels.

Yet we have many examples of private companies that are willing to invest in transportation infrastructure, such as bridges, tunnels and roads, when they are allowed to charge market prices for use of the infrastructure. No taxpayer dollars need be spent.

Again, if the subsidies were eliminated, what would happen?

All of the trains now operated by Amtrak, other than the Northeast corridor, would cease operation. But then many private entrepreneurs would buy up some of the rail cars or buy new ones, and make contracts with the railroads to run trains over their tracks (Amtrak uses the private railroad companies’ tracks).

Private passenger rail companies might well successfully compete with airplanes, buses and cars on some routes by providing luxury services with great dining cars as an alternative transportation experience, as they do in other parts of the world.

We now know that a socialistic, government-regulated, -taxed and -operated passenger rail does not work. So let’s get rid of Amtrak and its taxpayer subsidies, and see what magic free-market rail entrepreneurs might create.

Richard W. Rahn is a senior fellow at the Cato Institute and chairman of the Institute for Global Economic Growth.

LIBERALS AND BALTIMORE

From To The Point News by Sean Collins

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Amazing scenes from Baltimore: rioters throwing bricks at police, looting and burning down a CVS pharmacy and other stores, stomping on police cars and setting them on fire.

The rioting followed the funeral of Freddie Gray on Monday (4/27), a black man who died in police custody in uncertain circumstances. The next day (4/28), National Guard in camouflage patrolled the streets, and a curfew was imposed.

The rioters also burned down a housing project for seniors and a community centre, a $16million investment by the Southern Baptist Church that was due to open in six months. It was meant to be a sign of hope in a blighted area.

Reverend Donte Hickman, who worked for years on the project, said “My eyes have been filled with tears.” Of the arsonists, Hickman said “I can”t make sense out of nonsense”.

What is so sad about the degeneration of protesting over Gray’s suspicious death into rioting and arson is how self-destructive it all is. Rather than strike a blow against the police, the political authorities or “the system,” the rioters mainly hurt their own communities, making life worse for local people and even themselves.

And yet, despite the evident self-destructiveness, some were claiming that the rioters were “uprisers” that represented a “rebellion”. Morehouse College professor Mark Hill Lamont told CNN that the turmoil in Baltimore was “resistance to oppression” rather than rioting.

Salon commentator Benji Hart called the rioting a “legitimate political strategy”: “When we see police cars being smashed and corporate property being destroyed, we should see reasonable responses to generations of extreme state violence, and logical decisions about what kind of actions yield the desired political results.”

But there was nothing “political” in the rioting and looting. It wasn’t a continuation of protests by other means. In fact, in political terms, destroying one’s neighborhood is a big setback for those who want to have legitimate concerns about policing addressed and effect other changes.

Indeed, most people in Baltimore, including those in the deprived areas, do not see the rioting as being in any way positive or political. One resident, Clarence Cobb, told the New York Times he was heartbroken: “It’s sad, this don’t make no sense.” He added: “It comes to a point where you just got to take pride in your own neighborhood. This makes us look real bad as a city.”

Freddie Gray’s cousin, Carron Morgan, told a Baltimore Sun reporter: “This is not justice. This is just people finding a way to steal stuff.”

Many people’s image of Baltimore is shaped by the excellent TV series, The Wire, which examined the problems besetting the city from different angles. David Simon, the show’s creator, had a robust retort to those endowing the rioting with progressive content:

“The anger and the selfishness and the brutality of those claiming the right to violence in Freddie Gray’s name needs to cease… If you can’t seek redress and demand reform without a brick in your hand, you risk losing this moment for all of us in Baltimore. Turn around. Go home. Please.”

Later, when he was accused of blaming the victim, Simon replied: “Looting a CVS and some liquor stores and burning a senior centre site and the backs of some Federal Street rowhouses? Yeah, I got no problem showing my contempt for that.”

As we know from The Wire and elsewhere, the people of Baltimore, like those in many of America’s inner cities, do face enormous obstacles to getting on in life. Unemployment in Baltimore is high, with more than 50 per cent out of work in certain areas of the city, and many people are poor. Violent crime is more than three times the national average, and black men are incarcerated at high levels. Relations between the population and the police are seriously strained – and that can’t be neatly blamed on race, as Baltimore has for many years had a black mayor and a black police commissioner, and 40 per cent of the police officers are black.

The Baltimore Sun recently reported that “over the past four years, more than 100 people have won court judgments or settlements related to allegations of brutality and civil-rights violations. Victims include a 15-year-old boy riding a dirt bike, a 26-year-old pregnant accountant who had witnessed a beating, a 50-year-old woman selling church raffle tickets, a 65-year-old church deacon rolling a cigarette, and an 87-year-old grandmother aiding her wounded grandson.”

In other words, Freddie Gray’s death was seen by many as only the latest example of a deeply disturbing pattern.

These are facts. Yet it does not follow that current circumstances in Baltimore provide the “fuel” for rioting or otherwise explain it. Commentary that effectively says “black people in Baltimore live in poor conditions, they are justifiably angry, so of course they are going to smash things up” is patronizing.

Most of those who express this view begin by saying “this is not to excuse…”, such as when Obama said: “There’s no excuse for the kind of violence that we saw yesterday.”

But Obama and others then quickly move on to outline a litany of conditions that somehow are supposed to explain the rioting. This is a more subtle view, seemingly analytical and sympathetic, but it betrays low expectations of local people. And based on interviews in the aftermath of the rioting, it is not how the people of Baltimore see themselves.

Too many are claiming that the rioting was predictable and inevitable. But rioting is not inevitable. Saying “Well, what do you expect them to do?” is not progressive; it is insulting.

A minority of the Baltimore population rioted. Essentially some people in Baltimore opportunistically used legitimate concerns about policing as an excuse for destructive, illegitimate ends. This does not mean that it is not serious.

Attempts to downplay the rioting as no big deal, and to blame the media for covering it (like when City Council president Bernard Young says he is “disturbed by the way the media is focusing on the negativity of this city”), are an evasion. But it does mean that there is the potential for the majority to assert itself.

The rioting in Baltimore exposes a breakdown in social order and a vacuum of authority. Leaders, from politicians to the police, do not appear able to assert and obtain authority. They have all seemed to be caught off-guard and out of touch, especially with younger people.

The police in particular lack authority. They can’t command people simply with their presence in the way they once might have done, and they now have only two modes of operation: stand by, or go in with excessive force. And after authorities in Ferguson were widely criticized, both politicians and the police are not clear on what to do.

It is not just those at the top who lack authority. Parents, pastors and other community leaders do not seem capable of taking control, either. They are all appalled that this is happening, but seem one step behind.

In that regard, one mom, Toya Graham, has been rightly praised for stopping her son from rioting. In a video that went viral, Graham is seen pushing her masked son away from the crowd, slapping him on the head over and over, and screaming at him.

Not all support Graham – an Occupy activist said “the violent mother’s actions constitute second-degree child abuse” – but the popularity of the hashtag #momoftheyear shows that many do. That’s encouraging, even if moms on their own can’t solve all of the problems.

Those who have visited Baltimore will know that it is, despite its problems, a wonderful city. People are friendly and will call strangers “hon” (short for “honey”). Cuisine, culture and sports are all vibrant. The city is more than a poverty-stricken mess, and the people protesting, cleaning up afterwards and volunteering to help others are more representative than those who rioted.

The people of Baltimore have the potential to achieve their aspirations. But liberals do them no favors, nor show them true support, if they gloss over what happened, dismiss residents as inevitably prone to rioting, or try to glorify destructiveness and claim it is a form of political protest.

Sean Collins is a writer based in New York.

Fiddled Global Warming Figures

Christopher Booker wrote about fiddled global warming figures in the Telegraph, “Last month, we are told, the world enjoyed “its hottest March since records began in 1880”. This year, according to “US government scientists”, already bids to outrank 2014 as “the hottest ever”. The figures from the US National Oceanic and Atmospheric Administration (NOAA) were based, like all the other three official surface temperature records on which the world’s scientists and politicians rely, on data compiled from a network of weather stations by NOAA’s Global Historical Climate Network (GHCN).

“But here there is a puzzle. These temperature records are not the only ones with official status. The other two, Remote Sensing Systems (RSS) and the University of Alabama (UAH), are based on a quite different method of measuring temperature data, by satellites. And these, as they have increasingly done in recent years, give a strikingly different picture. Neither shows last month as anything like the hottest March on record, any more than they showed 2014 as “the hottest year ever”.”

Here’s a graph of the raw data:
fiddled global warming figures

Looks to me that temperatures are the same as back in 1950, even with increased CO2. Here’s the same data adjusted to reflect global warming:

fiddled global warming figures

Why would someone do that? Because it is propaganda designed to convince. It’s a big lie designed to enrich someone’s pockets. It’s a hoax to seize power! It’s a way to put fear into the minds. It’s a crock.

Coming Change in Chile?

From To The Point News: By Richard Rahn

Why do very successful nations often adopt policies that lead to their undoing?

After a revolution or major reform, some countries allow a high degree of economic freedom, establish the rule of law, protect private property rights and establish low tax rates with strict limits on government spending and regulation.

The economy takes off, the citizens become far richer and then the government mucks it up, usually by attempting to redistribute income and expand state control.

Is Chile, which has been one of the bright spots in the world economy, falling into this pattern under socialist President Michelle Bachelet?

For the past three decades, Chile has outperformed the other South American countries and now has the highest per-capita income in South America, averaging approximately $22,000 per year on a purchasing power parity basis.

The World Bank lists Chile as a “developed economy,” and it was the first Latin American country to become a member of the Organization for Economic Cooperation and Development. The average Chilean has a per capita income about three times higher than in 1983.

And now the Chilean people seem poised to let Ms. Bachelet throw it all away.

Continue reading at…

Two Buddies

 

Laugh it up boys!

Laugh it up boys!

The mandate from the 2014 election doesn’t matter as long as these two are buddies.


‘Utopia’ Shows What Happens to Cities Under ‘Progressives’

Joel Gilbert’s new documentary film, “There’s No Place Like Utopia,” depicts Barack Obama as the wizard in an Oz-like story that offers some surprises.

Such as that Peggy Joseph – the Florida voter who became infamous during the 2008 presidential campaign for saying Barack Obama would “pay for my gas and my mortgage” – no longer supports the president.

“Obama has made promise after promise that have all turned out to be empty, all turned out to be lies,” said Gilbert. “The people I met who supported him were literally in dungeons in the witch’s castle, everything had changed for the worse – Detroit, South Side Chicago, Newark.

“Fifty years of progressive control over these cities demonstrated that no one was progressing, they were all regressing.”

The movie takes viewers on a journey of discovery across America, emulating the highly successful style of progressive filmmaker Michael Moore.

In it, Gilbert depicts Barack Obama as “the Wizard” in the Land of Oz.

Order your copy of “There’s No Place Like Utopia” now.

Outlets such as Amazon Instant Video won’t have “There’s No Place Like Utopia” until Dec. 2.

I’m Appalled At Such Nonsense!

Appearing at a Boston rally for Democrat gubernatorial candidate Martha Coakley on Friday, Hillary Clinton told the crowd gathered at the Park Plaza Hotel not to listen to anybody who says that “businesses create jobs.”

“Don’t let anybody tell you it’s corporations and businesses create jobs,” Clinton said.

“You know that old theory, ‘trickle-down economics,’” she continued. “That has been tried, that has failed. It has failed rather spectacularly.”

The last thing this country needs is a person who believes this nonsense!

UPDATE: This from Godfather Politics:

“If corporations and businesses don’t create jobs, then who or what does? Government? Governments don’t create jobs. All government jobs are “created” by taking money from businesses, corporations, and workers through taxes. If businesses and corporations didn’t exist, government wouldn’t have any money to tax, thus, there wouldn’t be any government jobs.

“Microsoft was founded in 1975. Prior to this date, Microsoft did not employ anybody. Today, Microsoft employs 126,000 people worldwide. Microsoft does not stand alone as a corporation. Millions of other people are employed indirectly from a company like Microsoft.

“The same is true of Apple, General Electric, Wal-Mart, and every other big company that liberals seem to hate for their “greed.””

Read more at http://godfatherpolitics.com/17983/hillary-clinton-says-corporations-businesses-dont-create-jobs/#MzuqtMjXVkxqlbGi.99

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