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"One should either write ruthlessly what one believes to be the truth, or else shut up."

Arthur Koestler 

Tuesday
Apr022013

Chickenomics

This may be the strangest video I have ever posted. It attempts to explain free market economics, but I kept laughing at the wrong parts.  I couldn't help it...it stars the famous San Diego Chicken and is narrated by cowboy singer/movie star Rex Allen. This looks and sounds like something we would have watched in Jr. High. Enjoy!


Monday
Apr012013

The Answer is Here!

My HeroI did not really explain MMT, Modern Monetary Theory, when I talked about it on Saturday. In preparation for this blog post I watched a few YouTube videos and concluded that it was true. MMT teaches that the way to economic prosperity and full employment is to print enough money and spend prosperity into the economy. There is no limit to the amount of money we can give our hard-pressed people. Happy Days are here again.

Former Vice President Dick Chaney was right, deficits don't matter. The obvious thing to do is print more money. There is no need to cut Social Security or Medicare. We can afford our empire with just throwing a few switches at the Department of Treasury.

Here is an interview with one of the founders of the movement, well no not really, it is just fun.



Not convinced? Here is another presentation without crash dummies. No one this pretty could be wrong.



MMT Explained Graphically!Financial salvation has arrived at the cost of a few trees for the paper. No doubt a few virtual trees will be cut as well.

Think of it! We have the chance to dwell in the Garden of Eden again. The Kingdom of God is just a few runs of the printing press away. Prosperity beyond our wildest dreams is just around the corner. We have found the pot of gold at the end of the rain ... oh, wait, never mind, that is a bad analogy.

Jesus has returned in the Form of the New Economic Perspectives.

Amen. 

Sunday
Mar312013

Mission Impossible

One of my favorite songs, so I always like to see a different version. 

Saturday
Mar302013

Modern Monetary Theory

Are there people who think money grows on trees? Yes, Virginia there are. Sometimes you just have to shake your head in wonder. 

 

 What Norman does not seem to understand is that increasing the money supply cannot create wealth. There is no perpetual motion machine. You can get "Money for nothin' and your chicks for free," according to the Dire Straits song. But looking at washed-up rock stars, we can easily see the end of that path. 

If you print money, you change nothing. The same real estate existed as before; the same factories exist; no new assets suddenly appear. If the amount of money increases as in the hypothetical money volcano cartoon on the right, everything costs more. But the people in the cartoon have been lucky, they got there first so they get the advantage of using the debased money first. 

Why is there no inflation? It is simple: the money is mostly sitting on the sidelines waiting for better days—two trillion worth. The speed at which money circulates has been declining as well. This cannot last forever. But it can last a good long time. Use that time wisely. 

Here is Peter Schiff's view of Mike Norman. It includes a debate between them in 2006, right before real estate crashed. 

 

Friday
Mar292013

Gilligan’s Island as a Metaphor

Hearing my daughter play the theme from Gilligan's Island over and over again as she practices piano has led me to consider the hapless castaways. They seem to be a metaphor for the mess we are in. As you can see, others have had this thought too. I even saw an author interviewed on his book on the subject. But I doubt that each islander represents one of the seven deadly sins. Maybe the castaways were actually dead and in hell. No, No, that can't be right, no TV show would do that! Nor do I think Sherwood Schwartz's explanation that the show is a metaphor for international relations is valid, if he really said this. (It is dumb enough to be true.) 

But the analogies are so obvious they could not have been intended.

First there is the millionaire, and his wife. They never actually seem to do anything, and he seems to always have an alcoholic drink with a straw. Everyone seems to have brought along a lot of possessions for a three hour tour—the Howes especially. The wealthy actually do a lot more than is realized, but often stereotypes have some basis in reality. The Howes are always ready to provide advice as long as no work is involved. What is weird is that every other castaway gives then deference even though on the island there is no reason for it. 

The professor represents old-fashioned American ingenuity. He will get them off the island! But the Skipper and Gilligan seem to always mess everything up.

This is natural as the Skipper and Gilligan are the authority figures, the government, on the island. The government always messes everything up. 

My blogging predecessor suggested that Ginger represents the propaganda machine. Maybe. In any event I always picture her meeting up in the jungle with the professor. 

This leaves the unfortunate Mary Ann. Neither she nor the professor were important enough to be mentioned in the first season's theme song. She represents the common person who does all the work. While it seemed that Ginger helped, Mary Ann seemed to do most of the cooking. 

Poor Mary Ann!Romantically Mary Ann's choices were limited—the Skipper or Gilligan. Not the best of choices. That's right, Mary Ann's only options, just like the common man she represents, was to be screwed by the government. 

As for our heroes in real life, they got no residuals for their work. In real life they got screwed too.