Week in review

Quote of the week

“The role of government is commonly misunderstood. It is thought to be an impartial judge…an objective arbiter between competing interests, always asserting the common interest over the narrow interests of the competitors themselves. It is nothing of the sort. It has its own interests…its own delusions of competence…its own lusts for power and money.” – Bill Bonner

The First Leftist

by Dean Russell

“The first leftist would not be popular in America today. That is true because the original leftists wanted to abolish government controls over industry, trade, and the professions. They wanted wages, prices, and profits to be determined by competition in a free market, and not by government decree. They were pledged to free their economy from government planning, and to remove the government-guaranteed special privileges of guilds, unions, and associations whose members were banded together to use the law to set the price of their labor or capital or product above what it would be in a free market.” more…

Once Considered Unthinkable, U.S. Sales Tax Gets Fresh Look

by Lori Montgomery

“With budget deficits soaring and President Obama pushing a trillion-dollar-plus expansion of health coverage, some Washington policymakers are taking a fresh look at a money-making idea long considered politically taboo: a national sales tax.” more… (ed. This proposal is in addition to the income tax.)

Class of ‘09: You’re Screwed

by Bill Bonner

“The luck of one generation is the curse of the next. Like Pericles, your parents inherited a dollar; they leave you a peso. They took over the strongest, richest, most competitive nation in the world. And like Pericles they minded everyone’s business but their own. Now, not only does the US owe money all over town, its government puts out trillions more in IOUs every year – each one with your name on it. You’re not even out in the real world yet, and you’re getting the bill for 50 cents of every dollar the feds spend – almost none of it earmarked for you. But that is the thing about the real world your teachers probably forgot to tell you about. It is more unreal and fantastical than anything you studied.” more…

The Great Ethanol Scam

by Ed Wallace

“It now appears that in just a few years since the government forced ethanol use on the country, engine and fuel system failures caused by ethanol are causing major damage to more and more new and used vehicles. This means the hapless owners are not only paying for snake oil in lower fuel efficiency and more smog, but pay again when it damages their vehicles and lawn mowers.”  more…

In the news…

  • North Korea tests nuclear bomb then more missiles.
  • We shall have an Internet Security Czar.
  • Girl sues sperm bank for her disabilities.
  • A guide to copyright law.
  • Bitterness may come to be classified as a mental disorder.
  • Visteon has filed for bankruptcy.
  • Homeland Security will begin a pilot program in Atlanta and Detroit to fingerprint non-citizens leaving the country.
  • Demand for ammunition is out pacing supplies.
  • Brazil is set to open up its off shore oil fields.

Vidoes

  • Some information about the national debt.
  • Peter Schiff on Fox Business about gold and debt.

And now the numbers…

DOW Jones Industrials – 8,500.33 (+223.01/2.69%)
S&P 500 – 919.14 (+32.14/3.62%)
VIX – 28.92 (-3.71/-11.37%)
CSI 300 (China) – 2,759.712 (+19.035/0.69%)
BSE 500 (India) – 5,520.25 (+284.56/5.44%)
MICEX (Russia) – 1,123.38 (+69.35/6.58%)
BOVESPA (Brazil) – 53,197.73 (+2,629.242/5.20%)
RICI – 2,949.00 (+133.40/4.74%)
Gold/oz – 980.30 (+21.40/2.23%)
Silver/oz – 15.75 (+1.055/7.18%)
Copper/lb – 219.75 (+10.00/4.77%)
Oil/bbl (Brent) – 65.52 (+4.74/7.80%)
Wheat/bu (CBT) – 637.25 (+24.75/4.04%)
Corn/bu – 436.25 (+6.00/1.39%)
EUR-USD – 1.4158 (+0.016/1.14%)
USD-JPY – 95.34 (+0.563/0.59%)
USD-BRL – 1.9702 (-0.0565/-2.79%)
3 Month Treasury – 0.13 (-0.04/-23.53%)
2 Year Treasury – 0.91 (+0.03/3.41%)
10 Year Treasury – 3.46 (+0.01/0.29%)
30 Year Treasury – 4.34 (-0.04/-0.91%)
U.S. Public Debt (official) – 11,311,681,705,086.09 (+6,008,207,051.90/0.05%)
U.S. Public Debt (actual est.) – 61,319,072,000,000.00 (NEW)
Baltic Dry Index (BDIY:IND) – 3494.00 (+708.00/25.41%)

Well, I must say that it was a weak week. I am just not too happy with the articles I dug up, and it’s not that I didn’t read as much as I usually do. Yeah, I know I have no link to the prospective new Supreme Court Justice story. Oh well. If you haven’t gotten that somewhere else you probably aren’t reading this anyway.

Nothing on the GM bankruptcy and massive government stake in it either. That one just makes me sick. All I can say is “screw Government Motors (and Chrysler too)”. Buy a Ford or really anything else but the car from the government run company. And lest you forget, don’t forget the banks. It’s too bad most people don’t pay attention enough or care enough about free enterprise to actually care or do anything about this mess that we are creating for ourselves.

Did you ever wonder how the United States become prosperous? Two major factors: individual freedom and abundant natural resources. We are losing the former in spades, and as to the later… Sure we’ve used a lot of our resources, but we far from depleted. It just seems like everything is under government lock and key. So much for private ownership of things.

And that brings me to cap and trade. Another topic I am not linked to; another topic that makes me sick. Estimates say that such legislation will raise the average household’s bills by up to $3000 per year. After taxes… What will Al Gore do? Shall we all be enserfed or just 90 or so percent of us?

Then there’s China and rising long term treasury rates. China is apparently buying short term treasury bills, as opposed to the long term bonds. This move implies they do not trust our currency nor our government in the long term (can’t say I blame them there). So now with the long term bond rates going up it means that it’s going to be more expensive for our derelict Uncle Sam to borrow, which means more interest payments on the debt. Of course since the country is cash flow negative, has been for years, and will be for years… (forever?), well you do the math.

Meanwhile, California wants the US government to buy its bonds.

Finally there’s the cockamamie national sales tax idea, value-added tax, or VAT for short. That’s a funny name “value-added”. Doublethink abounds these days. The rate that is being floated is 25%. Okay, so 25% income tax (at the very least), 6% local sales tax, 4% state income tax, 25% VAT, doubling utility bills. What the hell is left? Shall we all be slaves? Who owns whom anyway?

Then there’s the new cyber security czar, North Korea, government healthcare, generally rising commodity prices, quantitative easing, and lest we forget it, the overseas empire. The list just goes on and on and on. America is burning. This is fascism.

Anyway that concludes my rant. Please think about the “F” word, and as always, have a great weekend!

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