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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (108533)	2/19/2010 11:24:43 AM
From: mishedlo	3 Recommendations Respond to of 116555

As Credit Contracts, Keynesian and Monetarist Clowns Snipe at Bernanke globaleconomicanalysis.blogspot.com Keynesian and Monetarist clowns were upset with Bernanke about bank lending and money suppy, even before Bernanke's discount rate move. Please consider US bank lending falls at fastest rate in history. ... Mish

To: mishedlo who wrote (108533)	2/19/2010 12:19:01 PM
From: Hawkmoon	1 Recommendation Respond to of 116555

3. live within our means So.. 20% of this country's unemployed workforce should be living in tents or homeless shelters, right? 4. embrace free trade How about both Free AND FAIR trade? Because when one country is running a trade surplus with another, it's hardly "fair" trade because it distorts BOTH economies. the dollar will soar, prices will drop, houses will become affordable Great.. so American products will become more expensive in overseas markets, Foreign companies will continue have an advantage in our own markets, and those who still have a job MIGHT be able to afford to buy one of those homes. Should we just rewrite the US Constitution and replace it with "Power and Market"? Should our children rise every morning and pledge allegiance to the Austrian School? How about replacing George Washington on the currency with Von Mises? My god man.. when the angry mobs from Main Street finally rise up against your economic dogmatism, I suggest all of your economist sycophants find a very dark corner to hide in. And btw, to revisit military spending, it's ALREADY BEEN CUT 70% from 1955 levels when Eisenhower warned everyone about the "Military Industrial Complex". As for playing global police, that's not correct. We're more like a self-appointed Sheriff who's taking on the job because no one else wants to. And that Sheriff is increasingly dependent upon raising posses to track down black hats. There has to be a global security framework for collective security and conflict resolution or the world defaults to local and regional security blocs, if not outright chaos. If you think we can stand alone, isolated from, and indifferent to, conflicts raging around the world, you're just conveniently ignoring the historical record. Besides.. CNN just won't permit it. The evil around this world is so great that only someone who demonstrates utter emotional detachment can CHOOSE to ignore it. Would you care for me to provide some photos/videos to prove it? Hawk

To: mishedlo who wrote (108533)	2/19/2010 12:53:28 PM
From: Hawkmoon	2 Recommendations Read Replies (1) \| Respond to of 116555

Let me rephrase my points... There is a belief amongst some individuals that economics theories should be the prevailing wisdom by which humanity should guide it's existence. I get the distinct feeling you are one of these people. But I learned long ago that NO sub-set of Social Science, whether it be Economics, Political Science, or Social Psychology can stand alone as measures or explanations for human interaction. They are all interdependent. I've stated before that I believe economic theories exist to serve humanity, not the reverse. They exist to help explain human behavior, but they cannot divorce themselves from the political, psychological, and even anthropological influences that influence our daily lives and drive our economic decisions. Economics can drive political decisions, but there is just as strong an argument that political decisions drive economics. It's very easy to preach free trade. I've done it myself, to a point. But should such a sermon permit or advocate the use of child or slave labor to produce the goods/services we consume? Does free trade mean we should tolerate, or even encourage, 7 day work weeks in other countries exporting their goods into our markets? Is mankind's purpose on this earth to pursue optimal economic efficiency, or the progress of humanity? Do we permit mercantilist policies from other countries, resulting in tremendous trade surpluses on their part (and deficits on ours) in the name of advocating free trade? Do we permit free flow of labor, documented or undocumented, transiting our borders, regardless of their citizenship status? And should we permit it even though our neighboring countries do not? What price do we pay for free trade? And if we're for free trade, while others are for protectionism, do we still hesitate to exercise tariffs to defend our economic interests? Mish, it's all well and good to look to an economic theory as a Utopian" ideal, but in doing so you cannot divorce yourself from political realities, whether domestic or international. Global trade requires global political stability. It also requires a mutually accepted and respected set of economic and political rules to govern and guide it. It also necessitates a collective security framework of enforceable treaties and alliances to protect those rules and punish those who would violate them. Hawk

To: mishedlo who wrote (108533)	2/19/2010 2:29:28 PM
From: niceguy767	2 Recommendations Read Replies (2) \| Respond to of 116555

You are articulating something that is almost too sensible but few wish to embrace for whatever reason, not the least of which is the "comfort loss" exacted on so many who are now feeding at the public trough were your suggestions put into play. The reason hor the apathetic response of the voting public to the gross abuses enacted by the Fed, Obama and the rest of the cabal running the country may well be that today the majority of that voting public is now feasting at the same trough as the Fed, Obama and the cabal, and don't wish to rock the boat too much. Problem is the boat is overloaded now and beginning to take on water in the form of borrowing vast amounts to pay interest on government debt. If rates rise, not only will gov't debt become ever more onerous but so too will mortgage refinancings. Calamity awaits if the Fed ramps up the rates. For that matter, calamity looks to be lurking no matter the course this bloated boat sets out.

To: mishedlo who wrote (108533)	2/19/2010 6:09:55 PM
From: Crimson Ghost	6 Recommendations Read Replies (1) \| Respond to of 116555

Mish I disagree on unions, but do support the idea of slashing the war budget and getting out of the empire business. If the US stopped trying to be the global cop, minded its own business, and took an even handed position on Middle East disputes there would be no need for a so-called "war on terror" and a $ 1 trillion "defense" budget.