Web Resource: The Classic Liberal and Economics

It seems every time you turn on the news, listen to talk radio or pick up a news paper or stop by your favorite conservative blog you will invariably run across a news article or discussion about economics, money supply, The Fed or inflation.

If you want to understand these subjects in more depth, an excellent resource on the internet is friend of motorcitytimes, and all around good guy, Mike from The Classic Liberal.

Mike holds a B.A. in Finance and has professional experience as a stockbroker, entrepreneur, and bank officer. He also has a solid background in Austrian economics.

Click on the following links to learn more about how the Federal Reserve, our money supply and inflation work:

  1. What is Money (Currency)?
  2. Money (Currency) Inflation Explained
  3. Money, Inflation, and the Federal Reserve
  4. Inflation Illustrated
  5. Federal Reserve Bank: Counterfeiting Machine
  6. Fractional Reserve Banking: Money Out of Thin Air
  7. Possibility of Money Inflation in America
  8. The Very Real Threat of Currency Inflation
  9. Gold and Central Banks
  10. History of the Federal Reserve Bank

And People Wonder Why Detroit Is In The Condition It’s In

****a post I rescued from the great Google cache *****

Seriously, this is really, really dumb. Ultra Liberal Detroit News columnist Laura “I Have A Serious Case Of Palin Derangement Syndrome” Berman is extolling the virtues of turning Detroit in to an urban farm.

OK….High tech farming in the city of Detroit.

The United States has an overabundance of AgraBuisness already. Who exactly is is going to purchase this new, high tech lettuce, apples and Christmas tress (kudos for calling them Christmas trees)?

This to me seems like a solution looking for a problem.

But, even with this new, hip and trendy idea (Detroit leaders are always looking for a silver bullet solution) this plan is running into a core problems for Detroit. Bureaucracy.

If Detroit would get serious about business and not look for the next fad, the city would finally start its turn around.

The Raconteurs: Level

Very cool song…

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State Governors Asking Washington For Handouts Adding To Federal Debt

This is not helpful. Via Pat Dollard:

But both men said states can’t continue to climb out of the recession alone, and a majority of governors renewed their bipartisan appeal for Congress to pass stalled jobs legislation that includes billions of dollars in aid to states.

Just days before the new budget year began July 1, the House and Senate failed to complete legislation that would have extended, through June 2011, important parts of the federal stimulus program enacted last year to provide unemployment insurance and help offset recession-driven cuts to education, health care and public safety.

The measure offered $35.5 billion for unemployment benefits for the long-term jobless and $16 billion for Medicaid, the public health care program for the poor. It also would have added an estimated $33 billion to the deficit.

Even so, several Democratic and Republican governors suggested in interviews and during panel discussions that the short-term gain was worth the long-term pain.

“We need more help from Washington to protect against job cuts and health care cuts,” Gov. Pat Quinn, D-Ill. “”If we don’t do that, we’re following Herbert Hoover economics.” (emphasis added)

We are not following Herbert Hoover economics. We are implementing FDR economics. You know, the economics that extended the Great Depression.

Liberals In Michigan Are Unhappy That Granholm Was Unable To Extend Taxes To Services

With opinion leaders* in our state thinking like this, it is no wonder Michigan is in the shape it is. Via MLive:

Take her proposal for extending the sales tax on services, something just about every economist not on the payroll of one of the countless right-wing think tanks thinks is a good idea. Our economy is service-based, so it makes sense for the tax code to catch up.

Back in February, the guv popped a modest plan to drop the sales tax rate to 5.5 percent and extend it to some services in exchange for phasing out the hated Michigan Business Tax surcharge. It would have raised an extra $400 million or so this year and been revenue-neutral in a few years.

I’m going out on a limb, but I’m reasonably sure the IMF (International Monetary Fund) is not on the payroll of the Heritage Foundation and the IMF has found that for every $1.00 of  ‘stimulus’  spending by a government will only produce $0.70 of economic activity (i.e. GDP). Furthermore, economists have know for a long time that tax cuts increase tax cuts and in a recent study economists have calculated that for every every dollar of corporate tax cuts, $2.76 of new GDP is created.

If Granholm would’ve cut taxes (even modestly) for all business in Michigan several years ago rather providing ‘green energy’ project grants (stimulus spending), our economy would be in much better shape today.

The balance of this article is really bizarre as one of Michigan’s opinion leaders* bounces randomly from bashing Granholm for not raising taxes to bashing Sarah Palin for no real reason.

The most likely landing place for Granholm is cable TV. MSNBC would be a logical ideological match, but CNN’s cringe-worthy “Odd Couple” paring of conservative columnist Kathleen Parker and hooker-befriending Eliot Spitzer is sure to fail, so there could be an opening there.

I’d personally like to see Granholm kick Sarah Palin’s “mama grizzly” butt in a new version of “Crossfire,” but the half-term Alaska governor is at least smart enough not to go toe-to-toe with a Harvard-trained attorney who bested Joe Biden in VP debate prep.

While its amazing that Liberals can’t get Sarah Palin out of their minds for a second, the more astounding point is that Michigan’s economy is a disaster due to its high tax rates and a general lack of competitiveness and Michigan’s opinion leaders* are calling for more of the same.

*I realize that the author of the MLive article, Susan J. Demas, is not exactly a household name but she mirrors the thinking of many liberal “opinion leaders.”

Going ‘Green’ Without Thinking Things Through: Reusable Shopping Bags Found Contaminated With E. Coli

The law of unintended consequences creeps up again. Via Discovery News:

Over the past few decades fewer supermarkets have begun offering traditional brown paper shopping bags, and most have turned to lightweight, strong plastic bags. This convenience comes at a price when the bags end up in landfills, strewn along highways, or in the ocean where they can choke and kill marine life.

In the age of “reduce, reuse, and recycle,” re-using sturdy shopping bags makes good sense and is a logical solution. If you’re going shopping anyway, just bring along your own bag. You’ll save the environment (and, in many stores, save a nickel).

I never knew those little bags could be so dangerous. I mean they choke and kill marine life and you can literally save the entire environment by banning those nasty little bags.

But, there always is a trade off. If you spend a few bucks for a single bag to save a nickel, you could wind up with a nasty problem:

Most folks don’t give the hygiene of their reusable bags any thought, but according to a new study from researchers at the University of Arizona and Loma Linda University, they should.

The study, “Assessment of the Potential for Cross Contamination of Food Products by Reusable Shopping Bags,” found that nearly all (97%) of shoppers who use reusable bags do not regularly (if ever) clean them. Furthermore, most of us freely mix meats, vegetables, and other foods in the same bag, and don’t think twice about it.

According to the study, “Reusable bags, if not properly washed between uses, create the potential for cross-contamination of foods. This potential exists when raw meat products and foods traditionally eaten uncooked (fruits and vegetables) are carried in the same bags, either together or between uses. This risk can be increased by the growth of bacteria in the bags.”

Indeed, half of the bags that researchers examined tested positive for coliform bacteria, and 12 percent had E. coli bacteria. These bacteria, and others, contribute to the 76 million cases of food poisoning each year. (emphasis added)

Not only do you have to spend $2.99 for a single bag (less the nickel you save at check out) and you need to store the bags in your car or urban folding bicycle that converts to a shopping cart so they are with you when you get to the store. Now you have to wash the things regularly as well.

I ‘m sure the energy, water and detergent needed to wash my reusable is not a good trade off. Plus, you would probably want to dry them as well because you wouldn’t want the damp canvas bags laying around the house. You never know what could grow in the damp canvass after a couple of days.

Obama Supports Business… Only The Businesses He Likes

Obama and his economic wrecking crew (9.4% Unemployment and 2.2 million fewer jobs) has “launched a coordinated campaign to push back against the perception taking hold in corporate America and on Wall Street that President Obama is promoting an anti-business agenda.”

To prove his point he is calling on congress to provide $5 billion dollars in tax credits for clean energy technology. Via CNSNews:

Obama told an audience at the University of Nevada that a $5 billion increase in clean energy manufacturing tax credits could generate nearly 40,000 jobs. Some of those could arrive in Nevada, where 14 percent unemployment threatens to undermine Reid’s argument that his position as majority leader pays dividends to his state.

“If an American company wants to create jobs and grow, we should be there to help them do it,” Obama said.

Setting aside the facts that Spain has proven that ‘green energy’ costs 2.2 non subsidized private sector jobs for every 1 heavily subsidized ‘green energy’ job created and the technology can’t reliably provide electricity for a community of 87 people, this is nothing more than pandering it worst.

Why does the ‘green energy’ industry get even more tax breaks? Why are they more deserving than any other industry? Why not you an me, the average consumer? Because Obama only supports business he likes.

If Obama truly supported business he would drop the pursuit of the off shore drilling moratorium, the ‘Wall Street’ regulation legislation and the largest tax hike in American history that is going to hit January 1, 2011.

116 days until November 2nd, 2010

Global Cooling Is The New Global Warming

Via Greenie Watch:

The justifiable alarmism will be about shortages in both global food supplies and global energy supply. The food supply will be reduced because of the shortened growing seasons in the “temperate food supplying regions” of the world resulting from this global cooling. This reduction in food supply will only exacerbate the current global food crisis caused by Kyoto “carbon credit initiatives” that have turned “food crops” into “biofuel crops” with the resultant widespread starvation of the poorest people in the poorest nations.

The potential energy shortages will result from the increased energy demand dictated by the cooler temperatures. This shortage will be far more severe than it should be because of the costly, inefficient, and limited solar and wind power initiatives and the virtual stagnation in expansion of efficient and high volume energy producing facilities for the past decade that have resulted from The Kyoto Protocol initiatives and exorbitant “Carbon Capture and Sequestration” (CCS) requirements that have made expansion of fossil fuel power production facilities economically unfeasible.

The global data demonstrates that there was only 23 years, from 1975 to 1998, during which there was actual global warming concurrent with rapid increases in CO2 emissions from fossil fuels. Prior to that, the world cooled from 1942 to 1795 with increasing CO2 emissions that went from 4gt/year in 1942 to over 20gt/year by 1975. During the rapid global warming that preceded this cooling period, there was only a minor increase from 3.5gt/year at the start of the warming in 1910, to 4gt/year by 1942 when the warming ended.

It’s like the 70′s all over again. Remember the TV Show In Search Of… hosted by Leonard Nimoy?

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Obama Science Czar John Holdren Supports Fraudulent Climate Data

****a post I rescued from the great Google cache *****

Obama’s Science Czar John Holdren, the man who believes in mass sterilization to “save the planet” and that trees should have legal standing, again to “save the planet” is fighting back and supports the fraudulent climate data used in the ClimateGate e-mail scandal:

“The e-mails do nothing to undermine the very strong scientific consensus … that tells us the earth is warming, that warming is largely a result of human activity,”

Never mind that the e-mails discuss deleting data and records. Never mind that scientist in New Zealand  ‘adjusted’ data to get the desired results (showing ‘global warming’ where none exists). Never mind that NASA is stonewalling a FOIA request regarding their ‘global warming’ data:

Mark Hess, public affairs director for the Goddard Space Flight Center which runs the GISS laboratory, said they are working on Mr. Horner’s request, though he couldn’t say why they have taken so long.

“We’re collecting the information and will respond with all the responsive relevant information to all of his requests,” Mr. Hess said. “It’s just a process you have to go through where you have to collect data that’s responsive.”

He said he was unfamiliar with the British controversy and couldn’t say whether NASA was susceptible to the same challenges to its data. The White House has dismissed the British e-mails as irrelevant.

The data in question is where NASA ‘recalculated’ data to show that 1998 and 2006 and not 1934 were the warmest years  on record for the United States.

Getting Back To Obama’s Science Czar, John Holdren, he is fighting back because he is tied to the ClimateGate scandal as well. He testified earlier this week that the there is no dispute, planet is warming:

Into the mix comes White House science adviser John Holdren, whose apocalyptic and bizarre views of humanity and science should disqualify him from participation in any serious discussion. He testified Wednesday before the House Select Committee on Energy Independence and Global Warming that human activity is “beyond any reasonable doubt” the primary cause of global warming.

And the author of the IBD article adds this:

However this controversy comes out,” he said of the CRU scandal, “the result will not call into question the bulk of our understanding of how the climate works or how humans affect it.” Even if that understanding is based on fudged and deliberately manipulated data designed to “hide the decline” in global temperatures?

Obama, Holdren and the rest of the anti-freedom Democrats think that we should destroy our economy and surrender our freedom based on manipulated data because, you know, all the scientists agree that there is global warming.

No ‘global warming’ or ‘climate change’ here in the last 60 years