Sunday, June 30, 2019

You Will Be Shocked at the Government Economics Behind Major Fires

The Shovel Creek Fire
Update below: More on the fire 

By Robert Wenzel

This "firefighting" story will give you an entirely new perspective on how government operatives can milk a situation for lucre. Government firefighting is a crony business.

There is a major fire burning near Fairbanks, Alaska, the Shovel Creek Fire.

It is now estimated that 3,424 acres have burned. More than 500 personnel are now battling the blaze.

But just how did this fire get out of control?

Saturday, June 29, 2019

Now They Are Calling For a "Global" Minimum Wage

CounterPunch has just published an essay calling for a global minimum wage.

Yes, a global minimum wage! "Not uniform across countries, but based on a common formula for a living wage."

In the essay, there is simply a total lack of basic understanding of supply and demand economics and how wages are set. The essay seems to be based on an analytical perspective of nothing more than kumbaya and "We are the world" chants playing in the background, as if higher minimum wages could be set by magic declaration in honor of organized socialist-leaning labor organizations.

I am not making this up, from the piece:

Friday, June 28, 2019

Trump May Introduce a Massive Tax Break for Investors

Tax break coming?
By Robert Wenzel

President Trump is all over the place when it comes to economic policy, however, indications are that he is aggressively pushing for a tax break that would directly benefit investors.

His national economic adviser, Larry Kudlow, is reportedly behind the move.

Thursday, June 27, 2019

Traffic Snapshot

A snapshot of current traffic to EPJ (via Statcounter)


-RW

TRUMP TRIGGERED: Is He About to Dump Jay Powell As Chairman of the Federal Reserve?

By Robert Wenzel

President Trump has been triggered by Federal Reserve Board chairman Jay Powell.

A day after Powell asserted his independence from the White House during a speech in New York City at the Council on Foreign Relations,  Trump went on another attack against the Fed chairman.

This is the Powell comment in front of the elitist group that likely triggered Trump:

Wednesday, June 26, 2019

JPMorgan Chase Analyst Destroys the Idea That Nordic Countries Are Successful "Socialist" Countries

JPMorgan Chase analyst Michael Cembalest is out with a report about the Nordic countries.

It takes a powerful swipe at the claim made by American socialists, such as Bernie Sanders and Alexandria Ocasio-Cortez, that the Nordic states are primary examples of successful socialist states.

Tuesday, June 25, 2019

AN ASSESSMENT: Nineteen Billionaires Call for Wealth Tax

By Robert Wenzel

Well, this is something for the tight-fisted boys of Bohemian Grove to chew over this summer.

A group of 19 US billionaires has come out in favor of a wealth tax.

An open letter by the group was published at Medium and calls for "a moderate wealth tax on the fortunes of the richest 1/10 of the richest 1% of Americans. "

It was signed by:

Monday, June 24, 2019

Fed Chairman Powell Capitol Hill Testimony Set For July

Jay Powell
Federal Reserve Chairman Jerome Powell will deliver his semiannual monetary policy report to the House Financial Services Committee on July 10, the committee has announced.

Powell will testify before the Senate Banking Committee the following day, July 11.

-RW

BREAKING Trump Says He’s Imposing Sanctions on Iran’s Supreme Leader


MULTIPLE UPDATE|S BELOW:  U.S. Sanctions Mean Diplomatic Path Closed ‘Forever’

The escalation continues.

President Donald Trump said he’s imposing sanctions on Iran’s supreme leader, Ayatollah Ali Khamenei, and those in his office, reports Bloomberg.

Trump told reporters at the White House that the sanctions would deny Khamenei access to financial resources. Trump said the supreme leader is responsible for Iran’s hostile conduct.

This is a developing story. Return to this post for updates.

UPDATE 1

Samuelson Slams Mankiw Over the Fed and the Great Recession

Robert J. Samuelson writes in The Washington Post:
Harvard professor N. Gregory Mankiw is one of the most influential economists in the United States. But the 61-year-old’s authority does not stem from advancing an arcane scholarly finding. Nor has Mankiw coined some catchy phrase that captured the popular imagination (see, for example, “The Affluent Society” by John Kenneth Galbraith). Instead, Mankiw’s power derives from his position as the author of one of the most widely used introductory college economics textbooks.

The New Sanctions Against Iran and the Threat to Middle East OiI

By Robert Wenzel

Justin Raimondo wrote in April 1998:
Among the conventional weapons in the arsenal of the modern Warfare State, none is crueler or more indiscriminate than economic sanctions. While a bomb, missile, or other military ordnance can devastate an entire neighborhood in a moment, the slow death of economic strangulation can so degrade an entire people that they are reduced to a pre-civilizational state, modern savages living at a subsistence level.

Sunday, June 23, 2019

Trump Claims to Have Studied the Laffer Curve Years Before Laffer Actually Sketched the Curve


@daveweigel tweets:

Belatedly noticed this line from Trump’s ceremony for Art Laffer’s Medal of Freedom.

Debt, Deficits, and the Costs of Free Lunches

Richard Ebeling emails:

Dear Bob,

I have a new article on the website of the American Institute for Economic Research (AIER) on, “Debt, Deficits, and the Costs of Free Lunches ”:

Saturday, June 22, 2019

How William F. Buckley Jr. Defended the Anti-Capitalist Bailout of Chrysler

William F. Buckley Jr. 
David Von Drehle informs:


A very long time ago, via a series of unlikely turns, I found myself — a 19-year-old nobody from the Denver suburbs — splitting a bottle of expensive champagne with William F. Buckley Jr. The celebrated conservative was charming and amused as I explained, as only a college sophomore can, all the ways in which he was mistaken about the world. For example, the Chrysler Corp. was seeking a government bailout at the time, and I scolded Buckley that capitalists would have a lot more credibility while extolling the free market if they didn’t go begging to the government every time the market ruled against them.

Kushner Unveils Economic Portion of Middle East Peace Plan

Jared Kushner
The White House on Saturday outlined a $50 billion Middle East economic plan designed by Jared Kushner that would create a global investment fund to lift the Palestinian and neighboring Arab state economies, and fund a $5 billion transportation corridor to connect the West Bank and Gaza, reports Reuters.

What AOC's Favorite "Socialist" Country is Really Like

Deirdre Nansen McCloskey explains:
Alexandria Ocasio-Cortez
A non-technical definition of “socialism” would be “bossy and obstructive and high-handed government.” Sweden certainly has a good deal of that, inspired for example by the eugenicists Gunnar and Alva Myrdal in the 1930s. Sweden, with other Protestant countries, led the world in compulsory sterilization and persecution of gays into the 1970s. It’s an example of the way the Swedes go along with their government too much, sometimes because they assume too easily that whatever is widely agreed must be right. An old Swedish woman left her worn-out frying pan in a trash container for metal packages. She was arrested for committing a crime against the environment, freed only after trial, and fined. Nice...

VIDEO Fighting the Minimum Wage: Dishwashing Robots

"We are deploying our first units this year and I could not be more excited about the future of the restaurant industry."
-Linda Pouliot, CEO & Founder, Dishcraft




-RW

The $15 Minimum Wage Will Put Me Out of Business

By Larry Fox

Want to earn a living wage in Alabama? Try working in a full-service restaurant.

I’m a restaurant franchisee with nine locations throughout Alabama and Florida, and my tipped employees report an hourly wage between $18 and $28, inclusive of base pay and gratuities. That’s more than the living wage for a single adult in Alabama, as calculated by the Massachusetts Institute of Technology.

A Florida City Paid a $600,000 Bitcoin Ransom to Hackers Who Took Over Its Computers

The city council of Riviera Beach, Florida, 50 miles north of Fort Lauderdale, Florida, voted on Monday to pay a ransom of $600,000 in Bitcoin to hackers in hope of getting back the city's compromised data, CBS News reports.

Friday, June 21, 2019

George Soros Receives Joseph A. Schumpeter Award

Joseph Schumpeter
Earlier today, George Soros, the chair and founder of the Open Society Foundations, was presented with the globalist (in the worst sense of the term) Joseph A. Schumpeter Award for innovative achievements in the field of business, economics, or economic policy, at a ceremony at the National Bank of Austria, in Vienna.

Mises' Suggested Research Topics: 1950-1968

Ludwig von Mises
Robert Wenzel <rw@economicpolicyjournal.com>
Walter Block  <wblock@loyno.edu>

Hi Walter,

When you originally referenced Mises discussing research topics and called for research ideas, I thought for sure

IMF's Chief Economist Takes Subtle Slap at Trump

IMP Chief Economist Gita Gopinath
Speaking to CNBC in Portugal on Wednesday, the chief economist of the International Monetary Fund Gita Gopinath took a subtle slap at President Trump.

Thursday, June 20, 2019

Does Judy Shelton Really Want the Fed to Push Interest Rates to Zero AND a Gold Standard?

Judy Shelton
By Robert Wenzel

Some from the Cato crowd are trying to bail out possible Trump nominee to the Federal Reserve Judy Shelton after she made unclear remarks to Washington Post reporter Heather Long.

In comments to the Post, Shelton made statements which give the impression that she is in favor of lowering interest rates to near zero.

VIDEO: Trump Presents Medal of Freedom to Reagan Adviser Arthur Laffer

On Wednesday, President Trump awarded supply-side economist Arthur Laffer the Presidential Medal of Freedom. Laffer acknowledged part of his "team" during his remarks including Stephen Moore, Steve Forbes, Larry Kudlow and his Yale roommate Dick Cheney :



Here's what Murray Rothbard thought about supply-side economics and the Laffer curve:

Why Are Progressives so Bad at Governing?

NYC Mayor Bill de Blasio
By William L. Anderson


In the aftermath of Hurricane Katrina, Paul Krugman declared that the Bush administration failed in its response to the flooding of New Orleans because the administration consisted of people, according to Krugman, who didn’t “believe in government.” One cannot say that about progressives who truly believe in government, and believe in unlimited government at that. Yet, it also is clear that when in power — and especially when they face no real opposition — progressives generally govern very badly. Why this is so — in direct contradiction to Krugman’s stated belief — requires an examination of the progressive mindset, something Krugman probably is intellectually and emotionally incapable of doing.

Wednesday, June 19, 2019

Sound Money Advocates Should Be Very Concerned If Trump Nominates Judy Shelton for a Federal Reserve Spot

Judy Shelton
By Robert Wenzel

Judy Shelton has discussed a potential role on the Federal Reserve Board with the White House and has begun the paperwork, she said, but she has not been formally nominated or mentioned by Trump, reports The Washington Post.

She has occasionally said positive things about gold but sound money advocates shouldn't think she is a hard money advocate. Her monetary policy thinking appears schizophrenic.

BREAKING: Rocket Hits Site of Foreign Oil Firms in Iraq's Basra



A rocket landed at the headquarters for several global major oil companies, including US giant ExxonMobil, near Iraq’s southern city of Basra early on Wednesday, wounding two Iraqi workers, police said.

This is a developing story. Return to this post for updates.


UPDATE 1

Trump Tightening the Vise Around Fed Chairman Powell's Head

First, we had a report early Tuesday from Bloomberg TV that the White House had asked the general counsel's office to determine the legality of stripping Jay Powell of his chairmanship of the Federal Reserve Board.

Tuesday, June 18, 2019

White House Explored Demoting Fed Chairman Powell

Federal Reserve Board
Chairman Jay Powell
UPDATE BELOW: Larry Kudlow responds

The White House explored the legality of demoting Federal Reserve Board Chairman Jerome Powell in February, according to a report by Bloomberg Television.

EVIL?: Facebook Announces Cryptocurrency Project Libra

Facebook founder Mark Zuckerberg
This could very well be the dark step that moves the world toward government tracking of all transactions.

Amazon Hits Back Against Alexandria Ocasio-Cortez

Alexandria Ocasio-Cortez
During an interview on ABC News’ “This Week” on Sunday, the socialist congresswoman Alexandria Ocasio-Cortez charged that Amazon was paying its workers "starvation wages."

Monday, June 17, 2019

Again, Trump Disses Federal Reserve Chairman Jay Powell

Oh yeah, President Trump is a serious inflationist.

Over the course of two days, ABC News' chief anchor George Stephanopoulos spent 30 hours with Trump, during that period Trump bashed Federal Reserve Board chairman Jay Powell for pushing interest rates too high.

From the transcript:

NOT GOING TO HAPPEN: Wilbur Ross Says U.S.-China Trade Deal Won't Happen at at G-20 Meeting

Wilbur Ross
The trade haters appear to be in control in the Trump administration.

The odds of the Trump administration implementing new tariffs on China early in July seem to be quite high.

President Trump has ordered plans be drawn up to impose tariffs of as much as 25% on the rest of the $300 billion in imports of Chinese goods not yet hit with levies.

Orval Watts On Dealing With Milton Friedman On the Question of Equality

Milton Friedman
Vernon Orval Watts (1898-1993) was a leading free-market economist of the World War II era and the former Editorial Director of the Foundation for Economic Education. 

In the mid 1970s, Watts was interviewed by Dall Wilson, a young features writer and photographer.The interview, which was never published, took place in Watts's office at Campbell College in Buies Creek, North Carolina. In 2019, Wilson shared with FEE a transcript of the interview. Below is Watts discussing his interaction with Milton Friedman.

Sunday, June 16, 2019

Chris Wallace Put Bernie Sanders on the Spot About Universal Healthcare

This morning on "Fox News Sunday," Chris Wallace put a very important question to Bernie Sanders about universal healthcare. To paraphrase, he asked, "Just who the hell is Bernie Sanders to decide for everyone what their medical care should look like?"

This is pretty much the question that I asked the architect of Obamacare, the evil Ezekiel Emanuel:

Trump's Trade Wars Expand to India

India  Prime Minister Narendra Modi
India has responded to the Combover bully.

It announced late Saturday that it would raise tariffs on 28 categories of imports from the United States.

What Would Howard Roark Have Done?: UBS Puts Economist On Leave Over 'Chinese Pig' Comment

UBS has placed one of its economists, Paul Donovan, on leave after a Chinese financial group suspended business with the Swiss bank because of his remarks about swine fever in China, reports the Financial Times.

Saturday, June 15, 2019

EU Leaders Terrified Italy's Parallel Currency Threat Could Collapse Eurozone

By Robert Wenzel

Is the Eurozone about to be tossed on the ash heap of failed statist experiments?

The Government Debt Situation On the Eve of the Tsunami of Baby Boomer Retirements

By David Stockman.

Well, that was timely. The US Treasury just posted a record $207 billion deficit for May and record monthly spending of $440 billion. That brought the rolling 12 month deficit to just shy of the trillion dollar mark at $986 billion.

Off-Topic Weekend: Treasury Secretary Mnuchin's Wife Stars in a New Movie Where She Plays a Sociopathic Bisexual Who Kills and Eats Men

Louise Linton on the set of "Me, You, Madness"
Louise Linton, wife of Treasury Secretary Steve Mnuchin, recently wrote a movie script in two weeks that casts her as a sociopathic bisexual who kills and eats men.

Friday, June 14, 2019

Rent Control Horror Returning to NYC; Real Estate Developers in Shock

By Robert Wenzel

This is very bad.

Democrats in the state of New York have announced new bills that would significantly bring back the horrors of rent control that crushed much of New York City real estate for decades and made it near impossible to find an apartment.

New York City developers are in shock.

Sign of a Trade Breakthrough?: United States Suspends WTO Intellectual Property Litigation Against China

The United States has halted a World Trade Organization dispute over China’s treatment of intellectual property rights until Dec. 31, the WTO dispute panel hearing the case said in a statement published on Friday, reports Reuters.

How Comrade Trump is Just Like His Opponents on the Left

Richard Ebeling emails:

Dear Bob, 

I have a new article on the website of the American Institute for Economic Research (AIER) on, “America’s Economic Commissar of Trade”:

COMING SOON: "Bagehot: The Life and Times of the Greatest Victorian"

James Grant's latest book, Bagehot: The Life and Times of the Greatest Victorian, is scheduled to be released July 23.

From the blurb:

Thursday, June 13, 2019

Elizabeth Warren is Not Cool and Cutting-Edge

Elizabeth Warren
Here’s a Don Boudreaux letter to National Review:
Editor:
Kevin Williamson, with his usual eloquence, exposes the pretensions and fallacies that infest Elizabeth Warren’s scheme of “economic patriotism” (“Colbert Reports,” June 9). And Mr. Williamson is exactly correct to note that this policy – far from being cool, cutting-edge, and ‘progressive’ – was perfected by French Minister of Finance Jean-Baptiste Colbert in the 17thcentury. These policies, as Mr. Williamson wryly notes, “did not do much for France.”

Two Ships Attacked in Gulf of Oman (Near Strait of Hormuz)


Two ships were hit in suspected attacks in the Gulf of Oman near the Strait of Hormuz, multiple news outlets report, sending oil prices as much as 4% higher.

Why Cash is So Important

Massive protests have been occurring over the last few days in Hong Kong. Hundreds of thousands of residents have taken to the streets.

So far protesters have been successful in forcing lawmakers to postpone a debate on legislation that would allow extraditions to mainland China — a measure Hong Kong residents fear would subject them to China's Communist Party and its clampdown on anti-state activities.

Wednesday, June 12, 2019

Will This Latest Move By Socialist NYC Mayor de Blasio Result in the Closing of the Iconic Strand Bookstore?

The de Blasio administration has tagged the iconic Strand Bookstore’s building with the dreaded "landmark designation" — a move the owner says was a concession to locals so the mayor can build a tech hub in the area, reports The New York Post.

The Landmarks Preservation Commission voted 8-0 to make the bookseller’s home at 828 Broadway a landmark, according to the Post — triggering onerous maintenance requirements that could send the 92-year-old shop’s ledgers into the red, according to owner Nancy Bass-Wyden.

Trump is Right

By Robert Wenzel

Well, I found something I can support Combover man on.

Yes, the President has sent out a tweet I can support---almost completely.

On Tuesday morning, the president tweeted:

Tuesday, June 11, 2019

Martin Feldstein Has Died

Martin Feldstein (1939-2019)
Martin Feldstein, the former chairman of the Council of Economic Advisers during the Reagan Administration, has died at age 79.

Hey, Kids, That's A Wall Street Trap Door You're Standing On!

By David Stockman
Zero Hedge got that right. It described the latest melt-up spasm in the casino as the Nike Market---just buy it!

Should Financial Markets Take Seriously Anything Trump Says?: Mexico Denies Trump’s Claim of Secret Concessions in Deal

By Robert Wenzel

President Trump has been claiming that there is more to the recent deal announced by the United States and Mexico that caused Trump not to carry through with his tariff threat.

Monday, June 10, 2019

Trump Issues Direct Personal Threat to President Xi

The Bully-in-Chief is at it this morning.

President Donald Trump said this morning during a telephone interview that additional tariffs on Chinese goods will be levied if Chinese President Xi Jinping does not attend this month’s G-20 meeting in Osaka, Japan.