What I'm reading:
A Bound Man Shelby Steele
What I'm listening to: Langley Schools Music ProjectWhat I'm watching: There Will Be BloodWhat I'm playing: Speed Racer
Order these from Amazon.com
at Amazon's normal low prices...
and a fraction of your order goes to help support this site. Thanks!
Copyright 2002 thru 2008 Donald L. Luskin All rights reserved. "The Conspiracy to Keep You Poor and Stupid" and "Krugman Truth Squad" are trademarks of Donald L. Luskin www.poorandstupid.com
"The road is cleared," said Galt. "We are going back to the world." He raised his hand and over the desolate earth he traced in space the sign of the dollar.
Some of the sites that have linked to us! * recently updated
Chronicle of the Conspiracy
Join us as we discover, document, expose and challenge the bad people, the bad institutions and the bad ideas that stand in the way of wealth creation -- and show you how to fight back!
Saturday, June 30, 2007
KUDLOW REPLAY
Here's the YouTube video of yesterday's appearance, in which I uncover the Clinton administration's new scandal "CPI-gate," refute the financial televangelism concept that debt is sin, and delcare that the Democrats are wrong to call taxation a "contribution to government."
NOW THIS IS SICKO
Gen LaGreca posts on George Riesman's blog a short fable, call it a mockumentary, aimed at Michael Moore:
People like Moore believe...people have a "right" to free healthcare simply because they need it.
If so, why stop at medicine? Couldn't we claim the same "right" to other necessities? Take food, for instance. What if the government seized control of the food industry and fed us for free with a new entitlement, "Foodcare"?
Initially Foodcare will empty the horn of plenty into your lap. With your appetite and wallet parting company, the lobster you ate only on your birthday will become regular fare, as will your favorite Belgian chocolates and filet mignon.
Because the same idea occurs to 300 million others, costs skyrocket, and a Foodcare crisis develops. Big Brother can no longer foot the bill for your busy mouth, so he must limit your mastication. This requires new agencies, bureaucrats, and a 100,000-page rulebook.
You visit your favorite restaurant to find it changed. Gone are the tablecloths, flowers, and cheerful hostess to greet you, enhancements you had gladly paid for in the price of your meal. The Department of Restaurants eliminated them as frivolous indulgences of the people’s resources.
The menu is reduced to a few modest offerings. Missing are the savory specials of the talented chef, whose last creation took forty pounds—not of ingredients but of paperwork—to gain approval from the New Recipe Administration.
You want steak, but getting it requires that the chef call a central office to obtain pre-authorization. With the clock ticking and a long line waiting to slide into your barely warm seat, you order hamburger instead. You notice your neighbor eating steak—and sitting at the best table. You remember when he was laid off and you bought him dinner. Back then, he thanked you for your charity and quickly got another job. But now that he has a “right” to food, he's stopped working to eat courtesy of your tax dollars.
...As time passes, everyone forgets how it started, but the crisis worsens. Michael Moore makes a pilgrimage to North Korea in search of adequate food.
[A 60 year old man] who had a history of heart trouble, suffered severe chest pains a few weeks ago. He wisely went to the hospital seeking treatment. He was told that there was no space available for him. He was advised to go home and call back later to see if a room might have become available. He did so, but was told repeatedly that the hospital remained full to capacity. Several days later this man died at home, never having received hospital treatment.
This incident, while true, is also an anecdote. It doesn't prove anything about the merits or demerits of France's universal-health-care system compared to those of the (still somewhat) private system in the U.S. But this sad event does reveal that merely declaring, statutorily, that every citizen has a right to health care, or that health care is "free" to every citizen, does not make health care available to all or "free."
Okay, it's only an anecdote. But even as such, as long as it's a true anecdote, then it proves that the promise of universal health care has not been fulfilled.
Warren Buffett, the third-richest man in the world, has criticised the US tax system for allowing him to pay a lower rate than his secretary and his cleaner...
Mr Buffett, who is worth an estimated $52 billion (£26 billion), said...that US government policy had accentuated a disparity of wealth that hurt the economy by stifling opportunity and motivation.
Hmmm... those low marginal tax rates don't seem to have stifled Buffett one bit. And how about this?
...inheritance tax, which raises about $30 billion a year from the assets of about 12,000 rich families..."You could take that $30 billion and give $1,000 to 30 million poor families. Or should you favour the 12,000 estates and make 30 million families pay an extra $1,000?”
So failing to give $1000 to someone is the same thing as taking $1000 from him? How did this idiot ever get so rich?
Thanks to reader Brad Peterson for the link.
Update... An old friend comments,
You neglected to mention that Warren has essentially exempted himself from estate tax by donating most of his money to the Bill and Melinda Gates Foundation. Apparently when it comes to spending his money, he also believes the government is an inefficient proxy as opposed to privately directed charitable organizations. Perhaps Warren should consider redirecting his $30B to those 30,000 families. The down side to that approach is his heirs probably would not get those cushy high-paying jobs working for the Gates Foundation.
Update 2... Reader Brian Hart adds,
Buffett is a board member of the “I’ve got my money so f*** the rest of you club”. That club’s chaired by Robert Rubin.
You also could have mentioned that Buffett is full of crap in claiming his secretary paid 30% of a $60,000 salary in taxes. She would have to voluntarily donate to the government to pay that much.
Update 3... Reader "Dave the Heartless Libertarian" says,
I think Mr. Buffet is including FICA taxes-from both employer and employee-to get to that 30%.
FICA wouldn't make that much difference to him, even if he does pay it (instead of dodging it by paying himself entirely in dividends and stock
options) because the $90,000 salary level at which FICA caps out is such a small chunk of his multi-million dollar income.
You know, I could do a lot better than Uncle Sam if SS would let me have that 12% of my paycheck to invest for retirement.
"CARD CHECK" CHECKED IN THE SENATE
Further evidence that the Democratic congress doesn't really want to pull all the stops out for its union masters, and that the GOP minority is a unified bulwark against the worst craziness. From the Wall Street Journal:
Democrats did their duty for the AFL-CIO yesterday, offering and then quickly losing a vote on the Senate floor to eliminate secret ballots for union organizing elections. Democrats could muster only a single Republican vote -- Arlen Specter of Pennsylvania -- and so the bill went down to a GOP filibuster, 51-48.
The way the vote was managed says a lot about how little Democrats really wanted to debate this "card check" legislation in public. ...Leaving workers to fend for themselves against the gentle persuasion of, say, the Teamsters isn't a big political winner.
So it's not surprising that Democrats staged their losing vote the same day as a key immigration vote that was certain to get far more public attention. Democrats also did little PR work, and the vote itself had a ritual quality to it, like some of those Republican votes on cultural issues when Tom DeLay was House Majority Leader: Hold a largely symbolic vote, check off a box to pay off your election supporters, and move on to something that most Americans might even care about.
Nearly every business lobby made the vote one of its main priorities for judging which Members to support in 2008, suggesting how dangerous they believe this would be if it ever did become law.
The idea barely merits comment as to its economics. But as to its marketing brilliance, I'll point only to the last sentence, which is typical Reich. He says,
And it's good policy.
Which means what exactly? It doesn't quite mean "I think it's good policy," because that just repeats the obvious fact that the advocate is doing some advocating. No, it's a bit of comforting blather meant to create the impression in the mind of the impressionable that this is, objectively, good policy, as though that were a fact that could be asserted and presumably proven if necessary. If you stop and think about it, it has about the same intellectual force as an advertisement for a hand lotion that says nothing more persuasive than, "It's good!". There's a reason why advertisements are a little cleverer than that.
AT LAST! THE STOCK MARKET EXPLAINED!
Reader Matthew Cowie has had an investment strategy breakthrough! He's correlated the moves in the S&P 500 to the timeline of Paris Hilton's arrest and imprisonment. Sorry investors, the conclusion is not so bullish.
Sept. 7: Officers arrest Paris Hilton in Hollywood for investigation of driving under the influence after she was spotted "driving erratically." -- S&P 500 0.48%
Jan. 9: Hilton's lawyers enter not guilty pleas on her behalf to one count each of driving under the influence and driving with a blood-alcohol level of .08 or above. --- S&P 500 -0.05%
Jan. 15: Hilton is pulled over by California Highway Patrol and informed that her license is suspended. She signs a document acknowledging she is not to drive. -- S&P 500 0.08%
Jan. 22: Hilton pleads no contest to a reduced charge of alcohol-related reckless driving. She is placed on three years probation, ordered to enroll in alcohol education and pay $1,500 in fines. -- S&P 500 -0.53%
Feb. 27: Hilton is ticketed for misdemeanor driving with a suspended license. A copy of the document signed Jan. 15 is found in her glove compartment. -- S&P 500 -3.47%
May 3: Prosecutors recommend Hilton serve 45 days in jail for a probation violation. -- S&P 500 0.43%
May 4: Judge Michael Sauer sentences Hilton to 45 days in jail. -- S&P 500 0.22%
May 16: Sheriff's officials say Hilton will serve 23 days in a special unit away from the general population. -- S&P 500 0.86%
June 3: Hilton reports to the Century Regional Detention Facility in Lynwood after attending the MTV Movie Awards and saying she's ready to serve her sentence. -- S&P 500 0.37%
June 7: Hilton is released from jail because of an undisclosed medical problem and is ordered serve the rest of her sentence in home confinement. Prosecutors object to her release and Hilton is ordered to appear in court the next day. -- S&P 500 -1.76%
June 8: Judge Sauer sends Hilton back to jail to serve the rest of her sentence. She is confined in the medical unit of the Twin Towers jail in downtown Los Angeles. -- S&P 500 1.14%
June 13: Hilton transferred back to Century Regional Detention Facility for women in Lynwood. S&P 500 1.52%
June 26: Hilton is released from jail. -- S&P 500 -0.32%
The market lost a total of 5.60% on days when Hilton caused trouble. The market gained 4.07% with Hilton in court or in jail.
One thing many people don't realize is that there is often a lot more behind the opinion pieces written by people like Paul Krugman, Greg Mankiw, Hal Varian, Dani Rodrik, Tyler Cowen, George Borjas, Robert Barro, Martin Feldstein, and others than it appears on the surface. That's not true in every case, but it is generally true when reputable economists weigh in on an issue.
Indeed, "not true in every case." For example:
"I predict that in the years ahead Enron, not Sept. 11, will come to be seen as the greater turning point in U.S. society."
I HAVE NO IDEA WHAT THIS GUY IS REFERRING TO
A little jewel in my email inbox, from a stranger named Guy Munselle, about whom I know nothing other than that, apparently, he was dropped on his head repeatedly as an infant:
Tough guy aren't you? what idiot would lambaste somebody without allowing that person to rebut? I see you can use big words but have a small mind. Do you think that people are gpoing to fall for your crap? What you say about him is what you think about me and many many others. You can group us, label us,, even attempt to grow a public sentiment against us, even be so foolish as to try to censor us. Make sure you realize that we are the American people. I wonder who is slipping you a check behind the scenes?
Update... Reader Chris Janutol writes,
If I were a betting man, I'd wager that one of your "freegans" scored a computer. And internet access.
Update 2...
A friend who would probably prefer anonymity writes, Did you check out Guy Munselle's website, based on his email domain name? It's http://fetdirect.com/, featuring "fetish based webdesign."
For example:
"Do you want to work in a clean, safe and 'drama' free atmosphere? We welcome top quality Dommes with experience..."
Or:
"Welcome! I am a Los Angeles based Professional Dominant that focuses on counseling and training for slaves and couples interested in exploring various aspects of BDSM. See My Interests page for more info."
Maybe Guy isn't a guy at all. And maybe Guy met "him" (PK?) through the website.
At least we know for sure now that Guy is sincere when he says "we are the American people" -- at least "the American people" who are sex workers. What a world...
It was billed as the most environmentally friendly festival ever, with a climate change campaign taking centre stage and an array of green facilities intended to help revellers cut down on their carbon footprints and their waste.
Yesterday, however, Glastonbury's eco-credentials were undermined somewhat when it emerged that festival-goers urinating in a river that runs through the site - after they had been drinking and taking drugs - had left it dangerously toxic for the surrounding wildlife.
An emergency team of self-declared "green police", who are patrolling festivities to ensure minimal damage to the environment, were ordered to cordon off Whitelake stream after the Environment Agency informed them it contained levels of ammonia so high they were life-threatening for fish.
Be sure to read the whole thing -- it's the only way you'll learn what a "shepee" is!
Zimbabwe's official inflation is 4,500% but independent economists and retailers say it is really above 11,000% and picking up speed...
Hyperinflation is spreading poverty, as even basic goods become unaffordable. Supermarket trollies lie idle as few can afford to buy more than a handful of goods. Government regulations only permit the withdrawals from banks of Z$1.5m a day, which is not enough to buy a week's worth of groceries.
Golfers pay for drinks before they set off on their round, because the price will have gone up by the time they have finished the 18th hole. One Zimbabwean was recently told by a pension company that it would no longer send him statements as his fund was worth less than the price of a stamp...
Strangely, this article offers not the slightest insight into why it is happening. My be like a drought, or an earthquake, or a plague. Just happens. Soon enough the United Nations will blame it on global warming.
WHY YOU JUST GOTTA LOVE RON PAUL
Who else would have the balls to introduce bill HR 2755?
A BILL
To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Federal Reserve Board Abolition Act'.
SEC. 2. FEDERAL RESERVE BOARD ABOLISHED.
(a) In General- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Board of Governors of the Federal Reserve System and each Federal reserve bank are hereby abolished.
(b) Repeal of Federal Reserve Act- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Federal Reserve Act is hereby repealed.
(c) Disposition of Affairs-
(1) MANAGEMENT DURING DISSOLUTION PERIOD- During the 1-year period referred to in subsection (a), the Chairman of the Board of Governors of the Federal Reserve System--
(A) shall, for the sole purpose of winding up the affairs of the Board of Governors of the Federal Reserve System and the Federal reserve banks--
(i) manage the employees of the Board and each such bank and provide for the payment of compensation and benefits of any such employee which accrue before the position of such employee is abolished; and
(ii) manage the assets and liabilities of the Board and each such bank until such assets and liabilities are liquidated or assumed by the Secretary of the Treasury in accordance with this subsection; and
(B) may take such other action as may be necessary, subject to the approval of the Secretary of the Treasury, to wind up the affairs of the Board and the Federal reserve banks.
(2) LIQUIDATION OF ASSETS-
(A) IN GENERAL- The Director of the Office of Management and Budget shall liquidate all assets of the Board and the Federal reserve banks in an orderly manner so as to achieve as expeditious a liquidation as may be practical while maximizing the return to the Treasury.
(B) TRANSFER TO TREASURY- After satisfying all claims against the Board and any Federal reserve bank which are accepted by the Director of the Office of Management and Budget and redeeming the stock of such banks, the net proceeds of the liquidation under subparagraph (A) shall be transferred to the Secretary of the Treasury and deposited in the General Fund of the Treasury.
(3) ASSUMPTION OF LIABILITIES- All outstanding liabilities of the Board of Governors of the Federal Reserve System and the Federal reserve banks at the time such entities are abolished, including any liability for retirement and other benefits for former officers and employees of the Board or any such bank in accordance with employee retirement and benefit programs of the Board and any such bank, shall become the liability of the Secretary of the Treasury and shall be paid from amounts deposited in the general fund pursuant to paragraph (2) which are hereby appropriated for such purpose until all such liabilities are satisfied.
(d) Report- At the end of the 18-month period beginning on the date of the enactment of this Act, the Secretary of the Treasury and the Director of the Office of Management and Budget shall submit a joint report to the Congress containing a detailed description of the actions taken to implement this Act and any actions or issues relating to such implementation that remain uncompleted or unresolved as of the date of the report.
Thanks to our monetary policy correspondent "Irrational Exuberance" for the link.