Archive - Mar 3, 2013

Nathan Lewis proposes a "gold standard" which is not based on gold. He argues that since gold's only job is to regulate the quantity of paper, we can just tweak the policy of the Fed. Instead of buying bonds to control the rate of interest, they can buy bonds to control the gold price. This is like trying to steer a car by opening and closing the windows.

Don't hate me, and don't shoot the messenger. As a matter of fact, don't argue with simple arithmetic. Those high falutin' Ivy diplomas just ain't worth the time & money & here's a simple way to PROVE IT!!!

Think US is the biggest financial bubble in the world? You are right.

During times of universal deceit, telling the truth becomes a revolutionary act--George Orwell

The love affair with Abe is a short.

The gravy train that poses as the Electoral College in the States is rigged to make it near impossible for anyone other than the Democrat or GOP nominee to get into the White House.... In Europe it is very different. We can vote for the Monster Raving Looney Party – yes there truly is such a thing – the Beer party and one day soon the Blessed Nigel of Farage. To get on the list of candidates over here you have to stump up £500, be a UK, Commonwealth or Republic of Ireland (how did that happen?) citizen, be seconded by 10 voters in the constituency and not be a police officer, in the military or a member of the House of Lords or bankrupt or bonkers. UKIP may well have won the Eastleigh by-election had Farage stood as a candidate – along with 13 others - but as it was Diane James took votes off the Tories and Liberal Democrats in equal measure. This may have been spun as an inconsequential protest vote the happenings in Italy earlier in the week is beginning to cause the establishment some angst.

A few days ago, to the surprise of many, the European Parliament voted through substantial curbs on banker pay, limiting bonuses to twice the annual salary (we have yet to see the list of pre-existing loopholes, which we are confident will be wide enough for Arnold's hummer to pass through). Today, in a less surprising, although perhaps more notable development, more than two-thirds of the Swiss people voted through a proposal to curb "fat cat-ism" in Switzerland, and impose strict controls on executive pay, including compensation vetos and payout bans. The development is notable, because unlike other insolvent nations, Switzerland is actually one of the most affluent sovereigns in the world, and class warfare is hardly as much an issue as it is in the US. The fact that Swiss society is as polarized as it was confirmed to be this morning, shows just how deep the rich vs, well, non-rich tensions truly lie, even in the most wealthy of societies. One can then imagine how close to snapping they are in other less well-off places, read most countries, in the world.

With now daily reports that the smog levels in Beijing are frequently literally "off the charts", it was only a matter of time before some aspiring Chinese entrepreneur decided to provide a much demanded product: clean air. As expected, Xinhua reports  that "philanthropist" Chen Guangbiao is now actively selling canned air to willing and eager Beijingites, tired of inhaling toxic, carcinogenic smog particles. The cost: $0.80 for a can of fresh air.