Friday, February 21, 2014
Yellenomics
http://www.bloomberg.com/news/2014-02-11/yellen-says-recovery-in-u-s-labor-market-is-far-from-complete-.html
yellen yellen.... walking into a minefield created by bernanke and greenspan and which she helped to create... those 2 managed to escape in time and breathe a sigh of relief, but I'm afraid yellen won't be so lucky.
In the future when scholars study this era of gross monetary mismanagement, these 3 people will certainly go down in history as the Fed's worst chairmen.
yellen yellen.... walking into a minefield created by bernanke and greenspan and which she helped to create... those 2 managed to escape in time and breathe a sigh of relief, but I'm afraid yellen won't be so lucky.
In the future when scholars study this era of gross monetary mismanagement, these 3 people will certainly go down in history as the Fed's worst chairmen.
The definition of insanity
http://mobile.bloomberg.com/news/2014-02-12/boe-updates-guidance-with-renewed-pledge-to-keep-record-low-rate.html
If it fails (as it has for ages throughout history), repeat the same tactic again with renewed vigour. Last i remember, Einstein had a nice quote for this kind of behaviour.
If it fails (as it has for ages throughout history), repeat the same tactic again with renewed vigour. Last i remember, Einstein had a nice quote for this kind of behaviour.
Multiplier effect?
Economists often say that creating inflation (printing money) has a "multiplier effect" in the economy and therefore it is good.
It is akin to saying that alcohol has a "multiplier effect" on my happiness and is therefore good for my happiness.
You see, it is unsustainable. Once the alcohol (and money printing) stops, the big hangover/ crash is inevitable.
It is akin to saying that alcohol has a "multiplier effect" on my happiness and is therefore good for my happiness.
You see, it is unsustainable. Once the alcohol (and money printing) stops, the big hangover/ crash is inevitable.
Preparing for civil unrest?
http://www.prisonplanet.com/u-s-postal-service-announces-giant-ammo-purchase.html
Interesting. The US Government has been purchasing firearms and ammunition off of the market at an alarming rate. Preparing for civil unrest?
Interesting. The US Government has been purchasing firearms and ammunition off of the market at an alarming rate. Preparing for civil unrest?
Tax the rich...not!
http://occupiedpalestine.wordpress.com/2012/11/20/gazaunderattack-realmadrids-cristiano-ronaldo-donated-his-golden-boot-worth-e1-5-million-gaza-children-please-save-us/
What the rich do with their money:
1. keep in banks as savings, which are loaned out to businesses or other people
2. do investments, which grows the economy and provide jobs
3. donate to help the less fortunate
But people love to tax the rich disproportionately and give money to the bureaucrats. Hmmm
What the rich do with their money:
1. keep in banks as savings, which are loaned out to businesses or other people
2. do investments, which grows the economy and provide jobs
3. donate to help the less fortunate
But people love to tax the rich disproportionately and give money to the bureaucrats. Hmmm
Minimum wage
http://www.mises.org/daily/6665/How-SpecialInterest-Groups-Benefit-from-Minimum-Wage-Laws
Good intentions, unintended consequences.
Fun fact: The minimum wage law in the US does not apply to the mentally challenged. Why? Because the bureaucrats understood (hopefully) that employers will be less likely to hire them. This shows that the lawmakers understood (hopefully) that the minimum wage law discriminates against the less-skilled workers. This is also one major reason why youth unemployment is so high. It is also the reason why there are more and more unpaid interns, because the company will run afoul of the law if they pay you some money.
====================================================
"Unions top that list. A higher minimum wage increases the demand for union workers by reducing competition from lower-skilled workers. For instance, if the minimum wage was $8 and the union wage was $40, employers give up 5 hours of low-skilled work for every union worker-hour utilized. But increasing the minimum to $10 means employers give up 4 hours of low-skilled work for every union worker hour."
Good intentions, unintended consequences.
Fun fact: The minimum wage law in the US does not apply to the mentally challenged. Why? Because the bureaucrats understood (hopefully) that employers will be less likely to hire them. This shows that the lawmakers understood (hopefully) that the minimum wage law discriminates against the less-skilled workers. This is also one major reason why youth unemployment is so high. It is also the reason why there are more and more unpaid interns, because the company will run afoul of the law if they pay you some money.
====================================================
"Unions top that list. A higher minimum wage increases the demand for union workers by reducing competition from lower-skilled workers. For instance, if the minimum wage was $8 and the union wage was $40, employers give up 5 hours of low-skilled work for every union worker-hour utilized. But increasing the minimum to $10 means employers give up 4 hours of low-skilled work for every union worker hour."
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