by Charles Hugh-Smith
If you set out to design a system that would implode with devastating consequences, it would be the Keynesian Cargo Cult’s neofeudal financialization debtocracy.
The heart and soul of the Keynesian Cargo Cult is the dogma that the cure for all economic ailments is more aggregate demand, i.e. consumption. The Keynesians’ fanatic faith in boosting consumption would be merely childishly naive if it didn’t directly support a parasitic neofeudal debt-serfdom. [...]
The Perils Of Underestimating Complexity And Mispricing Risk
by Keith Fitz-Gerald of Peak Prosperity,
“If you’re rich you get a bailout. If you’re poor you get a handout. And if you’re middle class you get left out. ” That’s not a sustainable way to run the system, exclaims investment strategist Keith Fitz-Gerald.
A cancer at the core of our current economy is the magical thinking, “no pain, all gain” philosophy, pursued by those running it. [...]
So far, the analysis of President Obama’s deficit speech has focused largely on its vagaries, obfuscations, and outright lies. Charles Krauthammer rightly blasted Obama’s speech as “shallow … hyper-partisan … intellectually dishonest.” He cited Obama’s “numbers suspended in mid-air with nothing under them with all kinds of goals and guidelines and triggers that mean nothing.” Krauthammer wasn’t alone – many commentators ranging from David Limbaugh to Larry Kudlow have targeted [...]
I think it’s fair to say the entire Republican field, including supposed “moderates” Romney and Huntsman, subscribe to this same magical thinking. They find it borderline treasonous for others to suggest America must follow the same laws of physics as everyone else, and it’s an article of faith in the GOP that the only thing holding us back from “energy independence” and even returning to net exporter status is job-killing [...]
Apple CEO Steve Jobs refused to allow surgeons to perform what could have been life-saving surgery on his pancreatic cancer, says his biographer Walter Isaacson. In one of his deepest discussions with him, Isaacson says Jobs told him he regretted his decision to try alternative therapies and said he put off the operation because it was too invasive.
Complete coverage: Steve Jobs: 1955-2011
Isaacson reveals these and many other inner thoughts [...]
by Charles Hugh Smith from Of Two Minds
In the Land of Self-Interested Pygmies, No One Advocates for the Nation
Does slavishly pursuing narrow self-interest benefit the nation? Clearly, the answer is no; a nation of self-interested pygmies leaves no one to advocate for the national interest.
The great cold lie at the heart of present-day America is that the nation will magically benefit if we each single-mindedly [...]
At any rate, the G20 plan calls for the US to cut its existing budget deficit to only 3% of GDP by 2013. For the US this would represent a decline from a $1.4 trillion deficit to a roughly $420 billion deficit, or ~$1 trillion in cuts in just three years.
Without getting too technical, this is just not going to happen. Cutting a trillion in federal spending would cut 7% [...]
The US wanted continued stimulus and thin-air money printing and made its plea for this policy stance very publicly in the days and weeks leading up to the G20 meeting.
The reasons for this stance are numerous and complex, but one stands out prominently: Elections are coming up. If you are an incumbent, now is not the time to cut off the stimulus efforts.
The story here is that the US wants [...]