Kel Kelly @ January 13, 2011 # No Comment Yet
Investors are happy today that a deal was reached on “tax cuts for the rich.” Lower taxes definitely help the real economy, but, except for a one-time pop, they can’t raise the stock market.
Only money/bank credit can push stock prices higher.
See here and here for explanations.
Kel Kelly @ January 13, 2011 # No Comment Yet
This topic needs no introduction. We hear discussions in the national media weekly about the possible threat an economically resurgent China poses to the United States — and even to other countries. So how concerned should we really be about China’s economic and military might? Answer: China’s economic development itself is not in any way […]
Kel Kelly @ January 13, 2011 # No Comment Yet
Cuba is once again opening its economy in order to prevent further economic retrogression. Raul Castro says that this time it’s the real thing. But, he notes, that the act of permitting more capitalism is for the sake of strengthening socialism. What he’s really saying, obviously, is that socialism is not working and Cuba needs […]
Kel Kelly @ January 13, 2011 # No Comment Yet
Freedom Swiss style: Pay a per head tax on your pet or the state will kill it.
So much for private property—one’s pet—being one’s own. If pet owners don’t pay the state money, most of which goes into someone else’s pocket, it will come after them. A local Swiss politician described it for what it is:
“It’s meant […]
Kel Kelly @ May 28, 2010 # No Comment Yet
The stock market and other financial markets do not rise and fall based on a strong or weak economy. The stock market and the economy are unrelated—ignoring superficial and loosely-related links—except to the extent that it is money supply that inflates both stocks and GDP.
But if financial markets move up and down primarily based […]
Kel Kelly @ May 31, 2009 # No Comment Yet
One of the tools Keynesians are most proud of is their so-called “multiplier,” which they seem to think is equivalent to magic. The idea is that new additional spending of money creates new incomes. Keynesians believe that the formation of any additional spending in the economy, that is in turn spent by its receivers and […]
Kel Kelly @ May 31, 2009 # No Comment Yet
South Korea’s economic bust has paralleled the bust of every other developed world economy, since all developed economies are intimately connected via the various world central banks’s coordinated monetary policies, and since their bubbles largely stem from our trade deficit. Yet South Korean officials have blamed and arrested an unemployed blogger for causing the decline […]
Kel Kelly @ May 31, 2009 # No Comment Yet
This article reveals how the French government is attempting to make Amazon.com’s free shipping illegal. Why would a government intervene in the voluntary trade between two private parties and prevent its citizens from receiving free services from a book seller that they obviously value? To protect local, independently-owned French book sellers, of course. Had French […]
Kel Kelly @ January 20, 2009 # No Comment Yet
How’s The Economy Doing? Don’t look to GDP for the answer. While GDP is universally regarded as the prime measurement of economic growth and rising standards of living, in reality, this mathematical calculation is, first, mostly a measure of inflation and, second, a measure of spending on consumption of goods as opposed to spending on […]
Kel Kelly @ January 14, 2009 # No Comment Yet
In this column, quasi-economist Paul Krugman advocates one form of government manipulation (government spending) over another (printing money). However, our current problem is the result of decades of pursuing precisely these strategies on a daily basis. Contrary to popular opinion, both printing money and government spending were carried out on a massive scale during the […]