The Syrian Rebels tell us what they think about the Russians by firing a Mortar on their Embassy

Posted by PITHOCRATES - September 22nd, 2013

Week in Review

President Obama warned the Syrian regime that if they use chemical weapons that they will have crossed a red line.  And if they did the president warned the Assad government that he would be indecisive and dither.  Well, someone used chemical weapons.  And the president true to form was indecisive and dithered.  Until the Russians stepped in.  And told the world that they would take care of everything so the Syrian regime does not use chemical weapons against the rebel forces again.  Something that was guaranteed to please all parties concerned (see Mortar fired at Russian embassy in Damascus by Associated Press posted 9/22/213 on The Guardian).

A mortar round landed in the Russian embassy compound in Damascus on Sunday, Syria’s state news agency said. There was no immediate report of casualties.

The Syrian Observatory for Human Rights, a UK-based activist group, reported that the embassy had been the target of several previous failed rocket attacks by rebels. Russia is a leading backer of Bashar al-Assad, Syria’s president.

Guess the rebels don’t like the Russians as much as President Obama.  And probably won’t be pressing a ‘reset button’ any time soon.

It is rather ironic.  The country responsible for the brutal attacks by the Assad regime on the rebel forces—Russia—is the country President Obama has entrusted the safety of the rebels to.  In fact, there is a good chance Assad got his chemical weapons from the Russians to begin with.  At least those not gifted to him by Saddam Hussein on the eve of the Iraq War.

Way to go, President Obama.  That’s showing Assad and his sponsor.  Russia.  Telling them that if they don’t stop their brutal attacks on the opposition then he’ll have no choice but to help Assad and Russia win the Syrian civil war.  Your pull numbers may be falling here.  But Vladimir Putin must love you.  He doesn’t respect you but a former KGB officer couldn’t think of a better president to be in office during Russia’s ascendancy to past Soviet domination.

Who would have ever imagined that when Hillary Clinton pressed that reset button with the Russians it would take things back to like they were during the Cold War?

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The Fed keeps Printing Money and People keep Leaving the Labor Force

Posted by PITHOCRATES - September 22nd, 2013

Week in Review

The Federal Reserve has failed to bring down the unemployment rate.  So the Fed will continue to devalue the dollar.  In their fervent Keynesian hope that it will actually do good.  While it continues to do a whole lot of bad (see STOCKS EXPLODE, RATES COLLAPSE AFTER FED SHOCKER: Here’s What You Need To Know by Sam Ro posted 9/18/2013 on Business Insider).

No taper. The Federal Open Market Committee (FOMC) shocked the markets by announcing that it would continue its monthly purchases of $85 billion worth of Treasury Securities and mortgage bonds. Most economists were looking for a reduction, or tapering, of around $5 to $10 billion dollars…

Markets went nuts. The Dow and S&P 500 surged to new all-time highs. Interest rates collapsed, the dollar tanked, and gold surged.

During the press conference, Bernanke said that the tightening of monetary policy (i.e. raising the Fed’s benchmark rate) may not begin until the unemployment rate is considerably below 6.5%. He also said that an inflation rate floor could be a sensible modification to its forward guidance policy.

The only thing lowering the unemployment rate is people leaving the labor force.  The labor force participation rate is at record lows.  Which means more and more people who can’t find work have just given up trying.  And because they have the labor department doesn’t count them anymore as unemployed.  Which brings down the unemployment rate.

So for the Obama economic policies to lower the unemployment rate below 6.5% will require bringing the labor force participation rate lower still.  Because the Obama economy is not growing.  Obama’s policies, especially Obamacare, are the greatest job killers to ever come down the pike.  If the unemployment rate drops below 6.5% in this jobless ‘recovery’ we’ll have Great Depression unemployment.  Tens of millions of real people out of a job despite what the official unemployment rate says.

And you know it’s bad when “interest rates collapsed, the dollar tanked, and gold surged.”  They’re printing so much money ($85 billion each month) that massive inflationary pressures are building up in the pipeline.  There’s so much money out there that there is more than people (other than Wall Street investors) want to borrow.  Hence the low interest rates.  Because they’re printing so much money each dollar is worth less and less.  Which is why the dollar tanked.  Because the Fed is going to continue to devalue it.  And when inflationary pressures are building and are just waiting to explode people want to protect their assets with gold.  So when inflation explodes and our money becomes worthless gold will hold its value.  Why?  Because you can’t print gold.  That’s why Keynesian economists hate it.  It forces governments to be responsible.  Something anathema to a Keynesian.

The economy under the Obama policies is now just a train wreck waiting to happen.  And when it does the fallout will be Great Depression bad.  Because of Keynesian economics.  The worst and most destructive theories ever to be implemented by government.  In fact, everything wrong in government finances today can be traced to Keynesian policies.  Expanding the money supply to stimulate the economy has only made recessions worse.  And increasing government spending (to replace private spending during recessions) has burdened governments so much that they are flirting with bankruptcy throughout the world.  Even a city in the United States.  The City of Detroit.  A harbinger of what is to come.

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The High Taxation of the Welfare State leads to Substandard Daycare

Posted by PITHOCRATES - September 22nd, 2013

Week in Review

Governments everywhere on the left want state-funded daycare.  As they want state-funded everything.  But state-funded daycare is especially insidious.  Many parents can’t raise their families on a single income.  Because of high taxation in an advanced economy with a nanny state.  Which has to keep raising tax rates and adding new taxes to pay for the expanding welfare state.  Which is why both parents have to work.  And the left’s solution to this is even more taxation to pay for state-funded daycare.  When if they just shrunk the size of the welfare state parents could raise their children on a single income.  And fewer things like this would happen (see Listeria found in Toronto daycare where child died posted 9/2/2013 on CBC News).

Food in the kitchen of a private daycare north of Toronto where a two-year-old girl died in July tested positive for the potentially deadly food bacteria listeria, according to an inspector’s report.

The York Region Public Health inspection also found expired food in the refrigerator and freezer and other sanitation problems at the daycare located at 343 Yellowood Circle where two year old Eva Ravikovich died on July 8.

A day after Ravikovich’s death, inspectors arrived to find inadequate dishwashing capacity, unsanitized toys and improperly stored food…

Education Minister Liz Sandals said in July that officials received three complaints in late 2012 about the number of children being monitored at the Vaughan facility.

Ministry officials only followed up on one of the complaints with a site inspection, Sandals said, calling the lack of action “unacceptable.”

Calver said the province’s failure to act decisively on previous complaints puts children at risk…

Don Giesbrecht, chief executive of Canadian Child Care Federation, said that while many unlicensed private daycares fill a need for working parents, there is little government oversight into how they operate.

Giesbrecht also said the demand for daycare spaces in Canada far outstrips supply. He added there are 900,000 licensed daycare spaces in Canada but three million children with parents in the workforce.

What’s also insidious about state-funded daycare is the true reason why the state wants to provide this.  To help mothers return to work as quickly after child birth as possible. Why?  Because a stay-at-home mother is not earning income that they can tax.  Which is why they want these women to return to the workforce as quickly as possible.  The children will be better off with a stay-at-home parent.  But the state isn’t interested in children.  They’re interested in taxpayers.

Now there are some women who want to return to work to continue their career.  As the left has told them that a career is what defines a woman.  Not providing the best possible home for a child to grow up in.  One with a stay-at-home parent that loves his or her child.  And doesn’t look at him or her as yet another annoying task to do like taking out the garbage.  Or doing the laundry.  If you’re relieved to drop your kid off at daycare so you can do what you love best then why did you ever become a parent?

Of course if we based our decisions on what was best for our children instead of what was best for us there would be no daycare.  We would wait until we were married and one spouse was established in a career before even having children.  But even that is not possible for everyone due to the high taxation of the welfare state.  Which is the real problem here.  This is why there is substandard daycare.  Because the government creates such a high demand for daycare with their high taxation to support the welfare state.  For one parent just can’t earn enough these days to raise a family.

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President Obama’s Lies being exposed in California as Obamacare increases the price of Health Insurance

Posted by PITHOCRATES - September 22nd, 2013

Week in Review

There is no way Obamacare can lower the cost of health insurance.  Because when you mandate that insurance providers pay for more health care services it will cost the insurance companies more money to do so.  And where do they get their money?  From insurance premiums.  So if they have to spend more they have to charge more (see Obamacare Doctor Rationing Begins in California by Lanhee Chen posted 9/16/2013 on Bloomberg).

The Los Angeles Times reported yesterday that Californians will actually be paying more for less because of the “Affordable” Care Act…

The basic reason Obamacare raises premiums is simple: It fundamentally changes the marketplace for health insurance by putting in place a number of onerous and highly restrictive federal regulations. Most notably, the law requires insurers to cover all comers, regardless of pre-existing health conditions. Obamacare also severely limits the factors that insurers may account for in pricing their policies. For example, insurers may not vary premiums based on health status and must charge a 64-year-old no more than three times as much for the same plan as they would charge an 18-year-old. Finally, the law mandates that insurers cover a number of benefits that they may not have had to previously.

In tension with these economic and regulatory factors working to raise premiums is the political pressure being applied by the Obama administration, particularly in states like California, to keep premiums as low as possible. One of the only ways left, then, for health plans to meet these competing demands is to restrict access to certain care providers — limiting patients’ ability to choose specific doctors or hospitals, lengthening wait times or forcing them to see a new doctor because their current one isn’t part of an insurer’s provider network.

Clearly, then, Obamacare is not about lowering the cost of health insurance.  It’s all about destroying the private health insurance industry.  Why?  Because once Obamacare destroys the private health insurance industry the way is clear for national health care.  Which is the single purpose of Obamacare.  At least based on the “onerous and highly restrictive federal regulations.”

President Obama lied profusely to the American people about Obamacare.  And he treaded lightly in the role out of his great lie.  For if the people caught on before the 2012 election the Republicans might have taken back the Congress and the White House.  And restored sanity to the land by repealing Obamacare.  So to avoid that from happening he delayed the role out and the exposing of the many lies he told until after the 2012 election.  But did he wait too long?  Having waited so long and delayed many parts of it for political reasons has only allowed people to begin experiencing pieces of Obamacare.  To see his lies exposed.  Strengthening the opposition to this horrible piece of legislation.  And now the 2014 mid-term elections are just around the corner.

The plan was to get as many people enrolled between 2012 and 2014 as possible.  To get them dependent on Obamacare.  So should the Republicans take both houses of Congress and the White House in 2014 because enough voters were angry with the Democrats for ruining their health care that there would be too many people enrolled in Obamacare to simply repeal it.  Have these delays put Obamacare at risk?  Have they given the people too much time to see the lies they were telling?  Will the Republicans be able to repeal it once they become the majority power again?

We are approaching the point of no return.  So far the Democrats’ lies have been winning the day.  But they have been destroying the economy in the process.  Will they destroy our health care as well?  We shall soon find out.

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The Greatest Threat to an Oppressive Dictatorship is Free Market Capitalism

Posted by PITHOCRATES - September 22nd, 2013

Week in Review

When people enter economic exchanges voluntarily everybody wins.  For example, let’s say one person has a hundred dollars of spare cash.  And another person owns a mountain bicycle that sells for $350 new.  The one with the money wants to buy a mountain bicycle.  The one with the mountain bicycle needs cash and wants to sell the bike. These two people meet.  And exchange the $100 for the bicycle.  And both walk away with something they valued more.  The person originally with the $100 valued the bicycle more than the $100.  And the person originally with the bicycle valued the $100 more than the bicycle.  Each person wins in this voluntary economic exchange.

Now contrast that to a managed economy.  Where a few decide for everyone else.  Such as in socialism.  Or communism.  Say, in the former Soviet Union.  Where the economic planners decide to make more tractor parts and less toilet paper and laundry detergent.  Resulting in shelves full of tractor parts no one wanted to buy.  And empty shelves where there was once toilet paper and laundry detergent.  As you can see, when you have forced economic exchanges no one wins.

Countries with economic systems based on free market capitalism where people enter economic exchanges voluntarily have historically had the highest standards of living.  Whereas countries with managed economic systems have had the lowest standards of living.  Liberty and prosperity are synonymous with the United Kingdom, the United States, Canada, Australia and Hong Kong.  Which were once all part of the British Empire.  Which ruled the world and kept the peace for a hundred years or so.  The Pax Britannica.  She was able to do this because of her wealth.  Generated from free market capitalism.  The rule of law.  Representative government.  Sound money.  And free trade.  Things that today give these nations immigration problems.  Because everyone wants to go to these nations for a better life.

In capitalist nations people live better because there is a profit incentive.  Whereas the countries these immigrants left typically put people before profits.  Where instead of letting market forces set prices and allocate limited resources that have alternative uses the government decides.  Like they did in the former Soviet Union.  And the more government interferes with these market forces the more these economic decisions become political.  Where friends of the ruling power get those limited resources first and at favorable prices.  Allowing them and the ruling powers to profit handsomely from this political favoritism.  At the expense of the people who have to do with less.

The profit incentive puts people first.  Because in free market capitalism market forces are the people.  Hundreds of millions of people coming together to make voluntary economic exchanges.  Where each individual person looks out for his or her best interests.  But when a ‘caring’ government manages the economy to put the people first that government interferes with those market forces.  And goes against the will of the people.  Making the people worse off.  Which is why immigration is always from a country where there is less free market capitalism to a country where there is more free market capitalism.  Because the quality of life increases with increasing amounts of capitalism.  So we should be careful what we ask for when we ask to put people first.  Even when the Pope joins the ‘put the people first’ choir (see Pope condemns idolatry of cash in capitalism by Lizzy Davies posted 9/22/2013 on theguardian).

Pope Francis has called for a global economic system that puts people and not “an idol called money” at its heart, drawing on the hardship of his immigrant family as he sympathised with unemployed workers in a part of Italy that has suffered greatly from the recession…

“Where there is no work, there is no dignity,” he said, in ad-libbed remarks after listening to three locals, including an unemployed worker who spoke of how joblessness “weakens the spirit”. But the problem went far beyond the Italian island, said Francis, who has called for wholesale reform of the financial system…

Sardinia, one of Italy’s autonomous regions with a population of 1.6 million, has suffered particularly badly during the economic crisis, with an unemployment rate of 20%, eight points higher than the national average, and youth unemployment of 51%.

Last summer the island’s hardship became national news when Stefano Meletti, a 49-year-old miner, slashed his wrists on television during a protest aimed at keeping the Carbosulcis coal mine open.

There was one other thing these nations born of the British Empire shared.  Judeo-Christian values.  They lived by the Ten Commandments.  And the Golden Rule.  The good Christians of the British Empire followed the teachings of Christ.  “Do unto others as you would have them do unto you.”  These Judeo-Christian values went hand-in-hand with free market capitalism.  It’s what made us choose to live by the rule of law.  To honor the contracts we made with one another.  To voluntarily enter economic exchanges instead of just stealing and pillaging our neighbors.

Money doesn’t have value.  It’s a temporary storage of value.  It is our human capital that has value.  Our ability to create things that have value.  Things that other people will voluntarily enter into economic exchanges to trade for with things of value they created.  Whether it be a physical good.  Or money from a paycheck they earned creating value for an employer who uses it to produce a service or good.

Capitalists don’t worship money.  For money only makes those economic exchanges more efficient.  By eliminating the search costs of the barter system.  It’s human capital that capitalists are interested in.  This is what they worship.  People.  Unlocking the latent talent in all of us.  To bring incredible things into existence.  Sanitation.  Waste water treatment plants.  New farming advancements.  Coal-fired power plants.  Things that allowed greater groups of people to live together in growing cities.  Where we have food, clean water and shelter.  Things we take for granted in capitalists nations.  Things that are luxuries in North Korea.  An anti-capitalist country that puts people before profits.  Where people worship the ruling dictator (primarily to avoid imprisonment, torture and death).  And the only people that do well are those close to the ruling power.

We don’t need a new financial system.  We just need to return to what it was before governments intervened into the free market economy to put people first.  Before we completely forget the Ten Commandments.  And the Golden Rule.  For once we use the power of government to nullify contracts to help their crony friends we no longer have a nation of laws.  But one of political favors.  Where the friends of power do well.  While those with no power live at the mercy of those in power.

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