The two fronts of your most crucial war
By Don Hank
We Americans are at war and although we are often bombarded with the idea that our enemy is politicians, the real enemy is ignorance. Thus, each of us must wage this war with all our heart and soul on two fronts. On one front, the target is each other. In the other, it is ourselves. For example, in the case of Don Hank, the targets are:
1—my own ignorance (including biases that interfere with my own objectivity).
2—my neighbors’ ignorance (including biases that interfere with their objectivity).
Each front is equally important. I can’t fight the war on my readers’ ignorance unless I can come to grips with my own ignorance. So my foremost and biggest job is to defeat my own ignorance.
But why does the war on ignorance matter?
Because America – and the rest of the world – cannot get out of this economic and political crisis without knowledge. By that I mean, the conviction that the “economists” and the politicians they control, who got us into this mess, cannot — and don’t want to — get us out of it.
If America had done its homework, combating its own ignorance and ideological prejudices, not one of the scoundrels like Barney Frank who engineered the housing crisis would ever have been elected in the first place.
America cannot regain a degree of freedom by ignoring readable, layperson-accessible analyses by those who have done their homework and know how the crisis started and why, and who in Washington and Wall Street was responsible.
Readers who are still confused about the how, who and why of our life-threatening economic crisis need to catch up quickly before it is too late. The wolf is at the door and we can’t afford to get it wrong again.
As evidenced by their support for bailouts, both Bush and Obama subscribe to Keynesianism to some extent, and America is going broke as a result. Therefore, just voting Republican cannot save us. There are Republicans who get it, but probably just as many who don’t, or worse, will not vote their principles.
I have an acquaintance who teaches economics and believes – or rather believed — in Keynesian economics, or essentially what Reagan called voodoo economics. The cult’s founder John Maynard Keynes once famously said that if the government hired workers to dig a ditch and fill it back up, that would stimulate the economy. That’s how smart he was, and that is how smart Obama is, whom Rush has correctly identified as a “moron, economically” (true, Obama intends to bring down America, but the unemployment rate is too high to cover up or frame as a Bush hangover and that is causing people to trust Republicans more in economic affairs. Obama truly believes that spending more of your money will help. He had not immediately spent that TARP money, hoping to invest it around election time. But the voodoo is not working).
My economist acquaintance would usually try to rebut articles written by conservative / classic liberal economists and published at Laigle’s Forum. One of her main arguments was that the issues were too complex for normal people to grasp, that she had worked for years as a market broker and was an insider so she just knew things that mortals like me could not. In other words, she proffered the same sleight of hand, devoid of clarifying details, resorted to by Bernanke and his cronies in their plea for bailout money. But I always had a counter-rebuttal that she could not respond to, because no amount of insider savoir-faire is a fair substitute for common sense and facts. She no longer rebuts, so she may have gotten awake. After all, the current situation can certainly wake up the most Keynesian among us.
The Keynesians look back at FDR, a Keynesian president, and claim he “got us out of the depression.” In fact, an analysis by UCLA economists Harold L. Cole and Lee E. Ohanian, replete with painstakingly gathered data, shows that FDR’s policies prolonged the depression by 7-8 years. Many other economists agree. The fact that there is still any debate over this at all is a tribute to the hard work of academics who worship FDR as an economic shaman and roundly reject common sense.
So how can America get up to speed on a crisis that threatens our very existence, our money and our jobs?
You need to read sound analyses. It’s hard work, but you’re an American and you know that hard work is why we are great.
I haven’t seen better readable analyses of our economic crisis than the ones by Steph Jasky of FedUpUSA. Steph is one of the few bloggers who do their homework and know whereof they write and speak. Like me, she and her family were personally affected by the housing crash and wanted to know the identity of the monster that ate their investment. After arduous research, she succeeded in identifying that many-headed shape-shifting monster and is still working hard to inform you and me about its ongoing misdeeds.
I strongly recommend you subscribe to Steph’s newsletter and scan her site. Here is the latest column you can’t afford to miss:
Just trash the dollar and it’s good (this column is full of charts compiled by Wall Street itself)
Chart is the SPX, white line is the dollar by comparison. That’s where the ramp the last month has come from. That’s an OVERT currency devaluation – 7%.
And what’s the SPX change? About 10%.
Oil? Oh, it’s up 17%. Hope you like much more expensive gas and…. this winter…. heating oil.
Other sites can also be helpful, even some of the ones trying to sell you their services and products. Because they can only sell if they can demonstrate to you, through cogent arguments and analysis, that they know a lot about the economy and keep abreast of economic affairs.
One such site is Taipan Publishing Group, which features, for example, the following vital and informative piece:
Massive foreclosure errors will collapse the housing market (again)
The worst excesses of the housing market bubble and bust are coming back to haunt us. Now is the time to prepare for another home price collapse, with fresh rounds of “quantitative easing” sure to follow.
It would be hilarious were it not so tragic. Come to think of it, it’s hilarious anyway. The country has not yet paid for the idiotic shenanigans of the late great housing market bubble. The latest debacle virtually ensures that the U.S. housing market will collapse.
“Wait a minute,” you may ask. “Hasn’t the housing market ALREADY collapsed?”
Well, yes. But the collapse isn’t over yet. There is another implosion coming – a crushing leg down that will pulverize all hopes of recovery into talcum powder. And another tidal wave of public outrage will likely come with it… all thanks to our wonderful friends in Washington and on Wall Street.
I wish I were exaggerating here, but I’m not. We have flat-out Disaster coming with a capital “D.” Follow along and you’ll understand why.
To first set the stage, let’s briefly cycle back in time to the glory days of the housing bubble…
Friends, the information America needs to pull out of this economic crisis – caused by dangerous politicians from both sides of the aisle that you never should have voted for – is all available for free (although I do recommend you push the Donate button at FedUpUSA if you can afford to).
Need I say more?
Further reading on the economic crisis: