Quote of the Day: “Are we turning Japanese? I really think so.” — The Vapors
Subject: What we are failing to learn from Japan’s example
“The Vapors” were a band whose only big hit, “Turning Japanese,” could be the theme song for the so-called stimulus package. Congress too is a one-hit wonder whose one solution to every problem is more government spending.
But they should pay attention to the example of Japan, and turn back from their desire to “turn us Japanese.”
“Japan’s rural areas have been paved over and filled in with roads, dams and other big infrastructure projects, the legacy of trillions of dollars spent to lift the economy from a severe downturn caused by the bursting of a real estate bubble in the late 1980s. During those nearly two decades, Japan accumulated the largest public debt in the developed world — totaling 180 percent of its $5.5 trillion economy — while failing to generate a convincing recovery.”
“In total, Japan spent $6.3 trillion on construction-related public investment between 1991 and September of last year, according to the Cabinet Office. The spending peaked in 1995 and remained high until the early 2000s, when it was cut amid growing concerns about ballooning budget deficits.”
“In the end, say economists, it was not public works but an expensive cleanup of the debt-ridden banking system, combined with growing exports to China and the United States, that brought a close to Japan’s Lost Decade. This has led many to conclude that spending did little more than sink Japan deeply into debt, leaving an enormous tax burden for future generations.”
As we’ve reported a number of times in the past, Doug Wead is in the forefront of those gung-ho for the potential 2012 Presidential run by Ron Paul, and the possibilities of success. This time he focuses on the state of the economy and the fact that only Ron Paul and like-minded economists were able to foresee the current calamity, and that once Obama’s immense spending package succeeds in totally wrecking everything, perhaps the populace will be ready to listen to other ideas.
…it is becoming clear that the “changes” we wanted are not going to be ushered in by Barrack Obama. If anything, he is feeling the need to reassure the establishment and the institutions of his political base, the unions and other constituencies and the liberal clique on Capitol Hill, that it is not risky to put an African American at the helm. What we are getting is old liberalism, a 1960’s, Lyndon Johnson liberalism. Re-cycled programs that we have already tried and have seen failed. We are seeing the treasury used to pay off political debts to unions and other constituencies. There is increased spending, centralization of power in Washington, D.C. New regulations. The Swedenization of America. And it is coming at a breathtaking pace.
…
Over the years, only one national politician has been warning about this coming crisis, clearly and consistently, while others smirked and laughed at him, secure in their knowledge that “the experts” on Wall Street knew what they were doing. And that politician was Ron Paul.
Ron Paul was interviewed by Paul Westcott today on Clear Channel Radio.
They discuss the economy in general and the so called stimulus package being debated in Congress. Ron Paul reiterates many of the main points of his economic and foreign policy philosophy. He predicts that the shift to putting money in the hands of individuals and private companies will give us inflation.
Glenn Beck has found a new favorite guest. Tom Woods was on his TV show tonight for a short segment, but this morning Beck interviewed Woods for over 15 minutes. It was a great discussion.
I find it amusing that Beck is the first to bring up Ron Paul, but again mentions that he doesn’t agree with him on everything, but on the economy he is “so right”.
They also discuss Austrian Economics with special mentions of Ludwig Von Mises and Hayek, among others. Beck, obviously doesn’t know who Mises is nor the Mises Institute, but it sounds like he’s about to get an education.
Beck ends the interview saying he wants Woods to come on his show “a few more times this week” and write an article for his newsletter. This is yet another baby step towards educating the masses about the “other way” out of our economic mess. Kudos to Beck for having Woods on his show.
Listen to the audio here:
Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.
Judge Napolitano discusses Obama’s decision to shift the Census taking methods from the Commerce Department to Rahm Emmanuel and some other topics regarding constitutionality.
Are you wondering why gold is being propped up as the ultimate safe-house of value? Why people are calling for the return of some sort of Gold Standard? If so, take a look at this article by Hugo Salinas Price at Bullionmark:
The world needs to return to gold as the international means of payment. All imbalances must be paid, monthly, in gold. No fiat money “payment” allowed!
If a nation does not have gold to export, it must do without or manufacture what it needs, itself: there you have the clue to restoring jobs in the US and in Europe. This is not “nationalism”, it is simply good economics.
The US has to limit its imports drastically, not by protectionism and tariffs, but by returning to the Gold Standard. Jobs will mushroom in the US beyond what anyone can dream as soon as its market must buy locally or not buy at all, for thousands upon thousands of articles. A return to gold, will achieve that aim very quickly, to be sure.
The Gold Standard is the friend and protector of the worker and of the investor, as well as the basis for harmonious relations between the nations of the world.
…
…a monetary system based on gold is an obstacle to the criminal credit expansion perpetrated by the bankers. Gold based money puts shackles on bankers, forcing them to be careful. A fiat money system enables financial criminality – it’s as effective in restraining criminality in finance as tying up a dog with a string of sausages.
Quote of the Day: “The natural proclivity of democratic governments is to pursue public policies which concentrate benefits on the well-organized and well-informed, and disperse the costs on the unorganized and ill-informed.” — by Peter Boettke
It’s important to keep in mind the world in which the politicians live. Who do they hear, what do they know, and, as a result, how do they think? Politicians talk . . .
* To each other
* To the politicians
* And to a standard set of establishment experts.
This leads them to cover the same stories, at the same time, in the same way, like a herd moving in unison.
The politicians hear this media chatter too. It’s mostly a constant reinforcement of their beliefs.
We, in turn, must constantly remind ourselves of these realities, and take them into account. We must recognize our “leaders” live in an Echo Chamber, and devise a way to penetrate that Echo Chamber with new sounds, thoughts, and ideas.
How do the politicians hear what we think? And what do they think when they don’t hear from us? Isn’t it obvious? When they don’t hear from us they must think, “Hey, we must be doing okay. No one’s objecting.” By comparison . . .
No doubt about it: thing are getting worse, economically speaking. Many forecasts are calling for more real estate busts, especially in the commercial arena. Balance sheets are in severe trouble. Yahoo has compiled a list of 15 companies that just might night make it through to the end of the year:
Leave it to Peter Schiff to come right out and say that pretty much everything the feds are doing to combat the economic correction is only going to worsen and lengthen the problem. Here he continues to point out that we need less spending, not more. Less borrowing, and move saving and more production.
The Obama plan will result in an “unmitigated disaster”.
We are in a “Ponzi economy”.
Hyperinflation. “Prices are going to be spiraling out of control”.
Ron Paul delivered another video message today. This time he explains his opposition to the Republican re-negotiated stimulus bill. He argues that whether the bill is $900 billion or $800 billion it is still a bad bill.
Ron Paul immediately describes the bill as a spending bill, not a stimulus bill. I think he’s being too nice. The bottom line is that the bill is a progressive agenda. It is a wish list for the progressive movement of the past 8 years. Now it appears that it will pass thanks to 3 moderate Republicans agreeing to vote for it.
Liberty Maven
“.
Loading ...
