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You know a city is in deep trouble when its mayor invites Wall Street but not the press and not private citizens to a closed meeting to discuss the future, including a sell-off of city assets.

Philadelphia Mayor Michael Nutter, whose municipality has the lowest credit rating of the five most-populous U.S. cities, did just that.

My translation: Philadelphia is bankrupt. However, that easily discernible fact will of course be denied until it officially happens.

Please consider Philadelphia Holds Closed Meeting With Wall Street
Philadelphia Mayor Michael Nutter, whose municipality has the lowest credit rating of the five most-populous U.S. cities, will address investors at a conference financed by underwriters and closed to the public and the press.

The invitation bills tomorrow’s meeting as a chance to hear “Philadelphia leaders and investors discuss building the city’s future.”

Philadelphia is hoping to attract investors for the city, which is rated three steps above junk by Standard & Poor’s. The city and its authorities have $8.75 billion in outstanding debt as of September, according to bond documents. Philadelphia’s pension system is 47.6 percent funded this year, the documents say.

Tours of city assets are set for the second day of the conference, including the Philadelphia Gas Works, the largest municipally owned natural-gas utility in the U.S. The city plans to hire a broker to steer the sale of the system, which may fetch as much as $496 million, according to Lazard Ltd. (LAZ)

Sam Katz, chairman of the Pennsylvania Intergovernmental Cooperation Authority, created in a 1991 state law that oversees the city’s finances, said that with the conference being held locally, it “certainly created some concern on the part of people that it should be made public.”

He’s more troubled, however, by the fact the school district isn’t on the agenda, he said. Facing a $304 million deficit, school officials have asked the city for $60 million and the state for $120 million.

“The school district’s in a crisis,” Katz said. “They’re the same tax base.”

Philadelphia officials facing a $1.35 billion spending gap over five years voted in March to shut 9 percent of its public schools.

Read more at Mish’s Economic Blog

George Offerman

I would hate to be B.S. Bernanke. I would hate to be the one in charge of what will be the most spectacular monetary collapse in the history of the world. I would hate the mere thought that I would be the most despised person to have ever been born on this rock. I could not live with myself knowing the policies I implemented stole money from the neediest and those dependent upon fixed incomes and gave it to my greedy bastard masters and banksters who salivate over amounts of money uncountable and unimaginable. I hate and despise the whole existence and purpose of the Federal Reserve and hold in the highest contempt those who dare, in the name of ‘fairness and equity’ openly steal the wealth of the people for their own private use and abuse.

But let us return to the purpose of this posting, the suicide mission the Fed has embarked on. It ought to be most apparent to even the deadest of zombies out there, that the Fed has chosen to destroy the dollar in favor of keeping its power and giving the incompetent inbred idiots, known as the money powers, their last vestige in getting their affairs in order before the hungry and homicidal mobs seek them out. This policy of purchasing dead Treasury Bills at 0% interest rates on an unlimited basis demonstrates there are no other avenues to pursue, and that no one or entities or countries are interested in our toxic toilet paper. Instead of default, they have opted for hyper inflation and will keep printing the garbage and selling it as ‘securities’ until the streets are littered with its burnt remnants and their buildings are nothing more than empty husks.

There can no longer be any credible claim by the Fed’s or the government that they give a rat’s rear end about you, me or anyone not an elitist, as all paper products will soon go much lower, with some going to zero. These elitists are willing and able to allow the average American to lose everything they have ever worked for, and have no plan and no intention of making restitution for their crimes. Make no mistake: the dollar will be printed into oblivion and the official policy was set into motion yesterday. The only question on anyone’s mind ought to be how much time one has to prepare for this devastating and complete financial collapse of this once great nation.

For those who propose ‘austerity’ measures to ‘save’ the current economic model; there are not enough people working who are paying enough in taxes to even cover the bare minimal of budgetary items. We have set records for the most unemployed, but eligible workers with 87 million, set the record for the costliest year of social security ($596 billion for the first 11 months of this year) and the largest percentage of people on disability EVER in the nation’s history (slightly under 10 million). Structurally, it is impossible to tax high enough to pay for this, and the only other ‘tool’ in the economic Keynesian toolbox is borrowing. The only way this country can ‘borrow’ at this time is the fraudulent and very illegal ‘purchasing’ of treasuries by the Fed’s to keep the party going long enough for the government to get its defenses prepared for the inevitable riots and civil unrest that will soon manifest itself.

Without a new metals based monetary system, this old system will crash upon its own weight. There is no other outcome possible, no matter how one crunches the numbers or wallpapers over the reality. This country is hopelessly bankrupt and the only method of keeping the party from turning into a massive hang over event, is to spike the punch with very devalued dollars and convince those not paying any attention that ‘all is ok, and continue watching football and drinking the cheap beer’. Well, very soon the cable TV and the lights are going to go out, and the taps that serve the cheap beer will dry up. It is only then, that the masses will ‘get’ what happened, and realize their government and the ‘Federal Reserve’ scammed them out of everything they have and ever will have. The anger will be unquenchable and God can only have mercy on any bankster who happens to be anywhere in this country.

The Federal Reserve is on a suicide mission. They are very aware there is no way out of this game they set up nearly 100 years ago. And B.S. Bernanke is so arrogant, and believes he is such a savior that he is positioning himself for a reappointment as Chairman. What a fool. This is a system that is mathematically going to fail, guaranteed. The only questions those in power have is how they will get out of town in intact skins. This is going to turn out horribly, and it is not time to place one’s head in the sand or any other orifice and pretend things will magically get better. The dollar is going to crash, and virtually every financial instrument denominated in dollars is going to crash and burn and all of the blame can be laid at the feet of the Federal Reserve. Glad I’m not one of those folks on that day, because I enjoy my head being attached to the rest of my body.

Source: Prolife Defender

By Daniel J. Sanchez
Wednesday, August 8th, 2012
BY JAKUB BOŻYDAR WIŚNIEWSKI (Original Post)

1. Austrian economists make it their priority to make sure that the theorems they formulate are derived from self-evident axioms and constructed according to the proper rules of logical deduction. These considerations are at best of secondary importance to their mainstream colleagues.

2. Austrian economists make it their priority to make sure that the assumptions they base their theorems on are thoroughly realistic, i.e., corresponding to the state of the world as it is. Mainstream economists, on the other hand, admit that their hypotheses are based on deliberately false assumptions.

3. Austrian economists make it their priority to make sure that the theorems they formulate elucidate exact causal connections between economic phenomena, rather than deliberately assuming away their existence or importance by falling back on the physics-inspired notion of mutual determination.

4. The predictive track record of Austrian economists is incomparably superior to that of their mainstream counterparts (see, e.g., here and here).

5. The theorems and conclusions of Austrian economics are perfectly comprehensible to every intelligent layman, which cannot be said about the mathematical puzzles of mainstream economics.

6. In terms of their views on the method and aims of economic theorizing, Austrian economists have a much better claim than their mainstream colleagues to being the heirs and successors of the classical economists, such as Smith, Hume, Say, and Bastiat.

7. Austrian economists never tire of emphasizing the strictly value-free character of their discipline. Thus, unlike their mainstream counterparts, they never presume that the existence of any non-voluntary extra-market institution is justified, and, a fortiori, never make any “public policy recommendations” based on such presumptions. On the contrary, they confine their scholarly research to investigating the logical origins and outcomes of various economic processes and phenomena as they are, not as they would like them to be.

8. Identifying the concept of demonstrated preference as the keystone of economic analysis allows Austrian economists to avoid the twin pitfalls of behaviorism and psychologism, which their mainstream colleagues cannot navigate in any principled and methodologically robust manner.

9. Austrian economists reject academic and professional hyperspecialization in their discipline, thus stressing the holistic, integrated nature of the science of economics. In the words of F. A. Hayek, “the physicist who is only a physicist can still be a first-class physicist and a most valuable member of society. But nobody can be a great economist who is only an economist – and I am even tempted to add that the economist who is only an economist is likely to become a nuisance if not a positive danger”.

10. Austrian economists cannot retreat into the safe haven of epistemological nihilism when the logic of their arguments turns out to be faulty. Mainstream economists, on the other hand, when the facts fail to correspond to their hypotheses, can always claim that “this time things are different”, which is a straightforward implication of the fact that any given set of sufficiently complex empirical data is compatible with a number of mutually exclusive empirical (but not logical) interpretations.

Source: Mises.org


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