Quote of the Week
“[T]the political classes will do everything they can to make an end run around markets and impose something that would make Rube Goldberg proud. In the end, they force the economy into depression and then place the blame on everyone but themselves.” – William L. Anderson
Ron Paul Wins in Iowa: Big Media Out to Lunch
Given the coverage by the MSM it would be almost impossible to know that Ron Paul came in 2nd in the Iowa Straw Poll, finishing behind Michelle Bachman by a mere 192 votes, and outdoing 3rd place finisher Tim Pawlenty by over 2000 votes or about 100%. The Huffington Post has the numbers here.
David Franke makes a good argument for why Ron Paul was, in fact, the real winner, mainly because Bachman’s regional appeal and the perfect mix of positive and negative media coverage should have given her much more than a 1% advantage over Paul.
Meanwhile, Jack Kenny, at the New American analyzes big print media’s coverage of the straw poll results, focusing on the usual suspects, WaPo, NYT, etc. Activist Post sets the Reuters coverage ablaze and in doing so provides a nice critique of Rick (molest me like your the TSA) Perry.
These are the papers of record, right? At least in name, which calls into question whether these people in big media are merely incompetent or whether they are simply propagandists. Of course, most of us have already made up our minds and this incident only confirms how corrupt the Government-Financial-Media-War Complex is.
They refuse to cover Ron Paul because they are afraid, “afraid that Ron Paul will wake up average Americans to the fact that liberal and conservative special interests captured the government many decades ago, that their perception of American society as free and prosperous is a lie, that the leviathan state was never their benefactor, but rather designed specifically to rip them off, and that the whole thing is coming to an end.”
Jon Stewart’s has a perfect montage called “Corn Polled”. It’s telling, freaking hilarious, and gives a good run down of how big TV media covered the results.
If you can deal with some extreme vitriol I invite you to check out Howard Kunstlers’s latest column entitled “High Corn“.
40 Years off the Gold Standard
This week marks the 40th anniversary of when Richard Nixon took the United States off the gold standard. Granted that system was not perfect, but it did allow foreign governments some check on Uncle Sam’s printing press. After Nixon pulled the plug, even foreign governments would not be able to exchange dollars for gold. Since then the Federal Reserve has printed money with abandon, which in turn has caused several serious asset bubbles, has decimated the middle-class with its rampant inflation, and has brought forth a deluge of debt which is set to wash both the United States and her citizens away in a storm of red ink.
We are witnessing the slow motion collapse of the largest Ponzi scheme in the history of the world.
Some more on Nixon’s actions that day in 1971 can be found here.
Of course no week would be complete without an obligatory essay on why fiat money is a disaster. This one is a 40th anniversary version.
by Gonzalo Lira
“I might have missed it, but I don’t think anyone has noticed this simple truism:
“The structural causes that led to the Global Financial Crisis of 2008 are identical to the structural causes that are leading us to another systemic financial crisis in 2011.
“You saw this one already?
“The only difference is the kind of debt at the core of the looming crisis: Mortgage-backed securities in 2008, as opposed to European sovereign debt in 2011.
“And of course, the debt hole in 2011 is bigger than in 2008—a lot bigger.” more…
by Thomas Sowell
“[W]hat Mayor Nutter said undermines a whole vision of the world that has brought fame, fortune and power to race hustlers in politics, the media and academia. Any racial disparities in hiring can only be due to racism and discrimination, according to the prevailing vision, which reaches from street corner demagogues to the august chambers of the Supreme Court of the United States.
“Just to identify the rioters and looters as black is a radical departure, when mayors, police chiefs and the media in other cities report on these outbreaks of violence without mentioning the race of those who are doing these things. The Chicago Tribune even made excuses for failing to mention race when reporting on violent attacks by blacks on whites in Chicago.” more…
by Christopher Preble
“If the job isn’t done, it should be. And soon. There will certainly be violence in Iraq for the foreseeable future, but a U.S. troop presence is not going to prevent these horrific incidents and often serves as a pretext for them. The continued violence shouldn’t obscure one unalterable fact: the Iraqis must solve their internal security problems. That, in turn, will likely require them to also solve their political problems, something that they have so far refused to do.” more…
- Warren “tax me more” Buffet is at it again.
And Now the Numbers…
DOW Jones Industrials – 10,817.65 (-451.37/-4.01%)
S&P 500 – 1,123.53 (-55.28/-4.69%)
VIX – 43.05 (+6.69/18.40%)
CSI 300 (China) – 2,807.664 (-67.701/-2.35%)
BSE 500 (India) – 6,311.34 (-318.16/-4.80%)
MICEX (Russia) – 1,438.74 (-31.82/-2.16%)
BOVESPA (Brazil) – 52,447.629 (-1,025.723/-1.92%)
Nikkei 225 (Japan) – 8,719.24 (-244.48/-2.73%)
RICI (Commodities) – 3,842.14 (+25.20/0.66%)
Oil/bbl (Brent) – 108.62 (+0.59/0.55%)
Corn/bu – 725.25 (+10.75/1.50%)
Wheat/bu (CBT) – 761.25 (+29.00/3.96%)
Rough Rice (CBOT) – 17.05 (-0.08/-0.47%)
Copper/lb – 400.25 (-3.10/-0.77%)
Gold/oz – 1,852.20 (+109.60/6.29%)
Silver/oz – 42.467 (+3.353/8.57%)
EUR-USD – 1.4398 (+0.015/1.05%)
USD-JPY – 76.5458 (-0.1692/-0.22%)
USD-BRL – 1.5996 (-0.0121/-0.75%)
NZD-USD – 0.8182 (-0.014/-1.68%)
3 Month Treasury – 0.00 (-0.01/-100.00%)
2 Year Treasury – 0.19 (UNCHG)
10 Year Treasury – 2.06 (-0.19/-8.44%)
30 Year Treasury – 3.39 (-0.34/-9.12%)
3 Month LIBOR – 0.30 (+0.01/3.45%)
U.S. Public Debt (official) – 14,620,196,583,424.20 (+32,285,277,428.20/0.22%)
Baltic Dry Index (BDIY:IND) – 1,462.00 (+175.00/13.60%)
Sorry I haven’t written at the end of this for a few weeks. It’s been pretty busy. There are some great articles this week, so check ’em out. Definitely watch the Daily Show clip.
We’ve got our bi-monthly liberty breakfast tomorrow morning at Classic Cup. Hopefully some of you will be able to make it out. It’s been pretty slim over the last few months.
Wonderful Wife and Baby Girl got back from a terrific visit to New Mexico. I stayed home this time. We’ll be back out in early October though.
Speaking of Wonderful Wife, she’s working tonight, and it’s just me and Baby Girl. She’s turned in early though, and so it’s just me. And the dogs. They like to hang out in my office all day when I’m working, which is what they’re doing now too. Lazy dogs…
Over the last few weeks I’ve been reading a history of ships and in particular their use in commerce and war. It’s been a fascinating book. I’m impressed because it spent a good deal of time on the older 17th and 18th century ships. Of course the modern stuff gets it’s glory too, but sometimes these technological histories tend to be overweight on modern developments. This one is not. I’m reading about WW II right now.
After this one I’ve Yacht Design, The Ghost King, and Code Complete on the queue. We’ll see which one is actually next. I’m leaning toward doing some reading on software engineering.
Well that’s about it for tonight. Again, please check out some of the articles. It’s a really nice bunch this week. And as always, have a great weekend!