Politicians are no more
likely to embrace evidence than are their supporters.
Putin
On The Ritz: In order to scare Russia,
which produces more oil than any other nation, the US is going to
release 5 million barrels of petroleum from its Strategic Reserve.
That's less than half of one day's use for the US, about 6% of one
day's global production. It was enough to make traders - who can't
do math and don't understand their own specialty - drop the price of
WTI by a couple of bucks. It's
foreign policy, it doesn't have to make sense.
All
Things Being Unequal: An economist at
the Paris School of Economics says it is likely that inequality is
not going to decline, rather that the 1% will steadily add to their
pile, growing it from 20% of national incomes to half. Or more.
What's to stop them, you?
Noted:
In real terms, the US minimum wage has fallen 32% since 1968, and it
doesn't get much realer than that.
Change,
Change, Change: The housing market
'rebound' has not really been a rebound and has not been about the
housing market. What we've been seeing is an easy-money asset
bubble driven by investors seeking quick returns and has little or
nothing to do with any sustained signs of life in the actual housing
market where real people buy houses because they want them for homes.
Buying up foreclosed properties drives up the price of foreclosed
properties and – if investors wet dreams work out – will draw
lots of former home owners and potential home buyers into the rental
market. This will have little if any effect on consumer spending or
the underlying housing markets in Real America.
Straight
Man: The Chairman of the Joint Chiefs
says the US is ready for "military actions" in Ukraine.
Retreat comes to mind.
Failing
The Future: According to the latest IPCC
data, it is unlikely that technology, changing consumer and business
practices or new national and international policies will emerge in
sufficient time to prevent a far too warm future. “The most likely
scenario is that we will find out just how bad the climate change
problem is."
Over
There: US corporations added over $200
billion to their stash of overseas dollars hiding from the IRS,
bringing their total 'offshore funds' to nearly $2 trillion, the tax
on which would sure help a lot of veterans and school kids.
Bullshit
Detector: In NJ the auto dealers have
convinced Governor Christie that it is immoral and fattening to let
Telsa Motors cut into their private herd of customers by selling
directly to them instead of letting dealers siphon off unnecessary
profits. NJ isn't alone in banning the auto makers from direct sales
to customers. There is no benefit to the customers in this, but it
does add a middleman who in turn fattens politicians' pockets.
Just
Asking:
If the U.S. economy is getting better, then why are major retail
chains closing so many stores?
Somebody
Else’s Game: A vast majority of
Americans have not been fooled by the five-year free-money fueled
stock market bloom. They understand that it is the rich and Wall
Street that have benefited from all of the money printing. Even those
who have a few bucks in retirement accounts understand that they earn
less than 0.5% of their income from capital gains, interest and
dividends, while the rich make more than 10% that way - mostly tax
free.
Devil/Details: Evidence suggests that in the short run making the citizenry healthier makes a nation poorer – fewer die unnecessarily and thus there are more people to share the wealth. In the longer run there are small gains in wages and productivity. And smaller chances of social unrest, so maybe it's worth the trouble.
Speak
Softly: A reliance on debt denominated in
foreign currency exposes emerging market economies to a risk of
exchange rate rises. I think that means 'watch out below!'
The Parting Shot:
Bluestriped Lizardfish,
Synodus saurus.
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