Archive for October, 2016

Fear Politicians, Not Clowns

Monday, October 31st, 2016

Clowns have been on a rampage this year, with creepy clowns—sometimes armed—threatening victims not only throughout the U.S., but in other countries. According to a poll conducted by Chapman University, Americans are more afraid of clowns than they are of climate change.clown

Clowns? Don’t make me laugh. Even the “Killer Clowns from Outer Space” are sugar-and-spice-and-everything-nice compared with The Hillary and The Donald. This Halloween, trick-or-treaters have cast their votes in favor of both presidential candidates. They don’t need no stinkin’ clowns to scare people. They’re dressing as two of the scariest people in America.

What makes politicians so scary? Consider just a few examples:

Obamascare. Premiums are jumping an average of 25% for the benchmark plan on Healthcare.gov. But don’t worry about Americans losing their coverage. Most of the coverage is paid for by us taxpayers. Tell me again … why is it called the Affordable Care Act?hill-mask

Obamascare II. Hillary Clinton, if elected president, will seek to expand the Affordable Care Act. With also-very-scary U.S. Senators Bernie Sanders and Elizabeth Warren there to push things along, socialized medicine will likely be inevitable, just as retiring baby boomers are beginning to add to the strain on the system. Socialism, here we come! Americas will no longer have to cross into Cuba for real health care.

Donald Trump would like to repeal of the Affordable Care Act, although we’re not sure what he’d put in its place. Could it be any worse?

We’re all going to be poor. The federal debt doubled under President Obama. It’s approaching $20 trillion, but it’s projected to grow even more rapidly in the future.trump (more…)

Finally! The Election’s Almost Here!

Monday, October 24th, 2016

It seems as though the presidential campaign season has gone on for years. Few people we’ve talked to are happy with either candidate, but as the election gets closer, we’re finding that the candidates are even worse than we thought, the media is even more biased than we thought and the country is in even greater danger than we thought.presidents

Consider just a few issues that have led us to these conclusions:

Deny, Deny, Deny. With the election just weeks away, media have been publishing stories about Donald Trump’s womanizing, which raises a few questions:

Is anyone surprised that Donald Trump is a womanizer?

Where have these tapes and wronged women been for all of these years? Why are they emerging now, just before the election?

The Donald has followed the Hillary playbook, which can be summarized as “Deny, deny, deny.” It works for her … why doesn’t it work for him?

Does anyone anywhere still think the media is objective?  On any given day, how many stories do you read or watch that are critical of Clinton?  How many do you read or watch that are critical of Trump?

If the primaries started over today, would Donald Trump have a chance of being the Republican nominee?

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Obama’s Legacy: Adults Living with Their Parents

Monday, October 10th, 2016

There’s a bright side to the upcoming presidential election, even if you dislike both candidates—it will bring an end to the Obama administration.

That may seem like a harsh assessment, but the past eight years have not been good to the U.S. economy, which has been weaker than instant coffee.  As POTUS, President Obama bears much of the responsibility.oecd-2_0

How bad has economic performance been? Today, about 66.6% of American youth aged 15 to 29 are living with their parents. That’s up from 62.8% before the Great Recession. Fifteen-year-olds should, of course, be living at home. But 29 year olds? Adults don’t typically live with mom and dad if they can afford to live away from home.

Talk all you want about the Great Recession, but that was eight years ago. And if you think tax cuts and insufficient spending by the Bush administration resulted in the economic malaise of the past eight years, you may want to consider reading economists other than Paul Krugman.

President Obama’s Forecasts vs. Reality

The Wall Street Journal may not be a fan of the president, but the recent review it published of the Obama economy by Lawrence Lindsey, a former Federal Reserve governor and assistant to President George W. Bush for economic policy, couldn’t have been fairer. It compares what President Obama said would happen with what actually happened. (more…)

The Apolitical Fed and the “Big, Fat, Ugly Bubble”

Monday, October 3rd, 2016

“ … nothing at the Fed is political.”                                                     Neil Kashkari, new head of the Minneapolis Fed

The Federal Reserve Board was designed to be a nonpartisan entity, existing solely for the benefit of the American economy. Apparently, there is a flaw in the design.

During the first debate between presidential candidates Hillary Clinton and Donald Trump, Mr. Trump accused the Federal Reserve Board of keeping interest rates near zero to help Democrats in November, while creating a “big, fat, ugly bubble” that will pop after the election when the central bank raises rates.

According to Ruchir Sharma, chief global strategist for Morgan Stanley, “This riff has some truth to it.”djia

“Since the Fed began aggressive monetary easing in 2008,” Sharma wrote on Zero Hedge, “my calculations show that nearly 60% of stock market gains have come on those days, once every six weeks, that the Federal Open Market Committee announces its policy decisions.

“Put another way, the S&P 500 index has gained 699 points since January 2008, and 422 of those points came on the 70 Fed announcement days. The average gain on announcement days was 0.49%, or roughly 50 times higher than the average gain of 0.01% on other days.”

It must be a coincidence that gains are 50 times higher on days when the FOMC announces policy decisions.

Sharma’s conclusions are further supported by this chart from Showrealhist.com, which shows an inflation-adjusted Dow Jones Industrial Average.  Note the upward surge that began when the Fed began QE in 2008. (more…)