Krugman is the reason i took Nobel Prizes off my bucket list. It is a wonder we have not all perished.
God says time after time in the Bible, "my people perish for lack of knowledge." Another way to say, you can't fix stupid. But we keep trying. Just sayin'
Bill..One of your best! Makes a lot of sense...but who in the Government understands that. It's always "business as usual." We get screwed without even a kiss. Keep up the good work!
Bill has a good time writing satires about government and we have a great time reading it. The sadness of it is that the satire is the truth.
Bill suggests an auction of the many useless assets. What about the many useless humans that occupy positions in our government that the country could do without. How about bringing the salaries of congressional useless leaders down including Joe the Plumber. How about the many benefits these Royal Americans receive. Let them earn their keeps. Let them start acting like representatives of the people not the political lobbies, self interest, corporate leadership (thatโs what they call them). They are busy managing full time their own wealth and delegate the business to others that earn a minute fraction of what they earn.
Ask yourself, is a corporation truly a capitalist entity. The CEO and a few of his cronies earn millions while those that make it happen are slaves.
Take into account that a corporation is not a private entity. How does one measure value of an individual in a corporation? The CEO earns 20 million for example and an average employee 50,000 dollars per annum. The ratio of 1:400 sounds right. How about a different interpretation. An average employ has to work 400 years to earn what a CEO earns in one year. One can go on and on. Soviet Union failed because a system without motivation has no foundation to exist. Can our system survive endlessly?
I would hire AOC. I heard she was a pretty good bartender, and I've been drinking a lot lately. And if she's busy mixing me drinks, she won't have time to do any more damage to our country with her idiotic ideas.
Lol, a trillion dollar coin, I believe the credit for such an idea is belongs to Zimbabwe. Why is it that Africans are always cheated out of their recognition for truly great inventions?
Why not do with the Moon what the European countries did with the Americas? They landed on the shore, planted a flag, and claimed the territory for the mother country. The government would sell off portions of the claimed land to rich folks. Well, the US has landed on the Moon several times, planted flags, so why not claim it for the USA and sell off rights to exploit its resources to the highest bidder to help pay off the national debt? Elon Musk could provide transportation for a handsome profit to the our government. Just asking...
And monthly our country sells millions of dollars of all manner of military goods via its Foreign Military Sales program. (One nation, however, gets a free ride: Israel. Congress gives this country enough foreign aid with which Israel then uses to buy military equipment from the US).
Although it costs money to be a major power, this doesn't mean that economies can't be found.
Thank you. I think they also were locked into T-bills that paid low rates, and when rates were raised, they had to borrow at the higher rates, depositors pulled their money from the bank to buy bonds at higher rates, and the spread worked against them instead of for them.
Just another consequence of artificial, low rates, and rates manipulated by a central body instead of being set by the free market.
Today's diary reminds me of something I read by Tom Woods (I don't remember if it was his idea, or he credits someone else):
If the war effort ended the Depression, let's stage a battle between the US and Japan in the middle of the Pacific, without humans, only ships. Make it as big as we need to boost the economies of both countries.
I believe that they were forced to buy bonds at high prices to make them resilient and then the feds raised interest rates to make the bonds worthless. The feds then engineered bank runs and gave the banks to goldies and other mates.
The failed banks had invested a good portion of their deposits, in long term Government Bonds.
Normally not a bad thing.
But with the rise in Interest rates, those Government Bonds dropped in value.
Again not a problem normally.
But if people are getting antsy about leaving their cash in your bank, you need cash to cover those withdrawals, when they happen.
Unfortunately, SVB (Silicon Valley Bank) did not have enough to cover the withdrawals. SVB had to sell some of those government bonds, at a loss.
After announcing this to the public, all the rest of their depositors made a "run on the bank" (see Mary Poppins, the movie, for what that looks like). On March 9, 2023, $42 Billion with a capital B, was requested to be withdrawn by depositors. The bank couldn't do it, and was shut down by regulators later that day.
Krugman is the reason i took Nobel Prizes off my bucket list. It is a wonder we have not all perished.
God says time after time in the Bible, "my people perish for lack of knowledge." Another way to say, you can't fix stupid. But we keep trying. Just sayin'
Is winning a Best Actor Oscar on your Bucket List? It's on mine. ๐
I personally would like to start the bidding for a 2-bit congressman. Only trouble would be, what would I do with them after I won him/her for a day?
Still, would be funny as hell when I gave them a shovel and asked them to dig me a ditch.
Just don't tell him it's a two-fer because when he's done you're going to throw him it so it'll also function as his grave.
I have long known that Krugman is a journalist, not an Economist. Cull retard says it best.
But we all know that his arrogance prevents from offering sensible solutions.
Bottom line is that heโs covering for democrat ass.
Krugman is all โeaten up with the dumbassโ.
Best option is let the U.S.Government default.
Letโs see what happens.
Bill..One of your best! Makes a lot of sense...but who in the Government understands that. It's always "business as usual." We get screwed without even a kiss. Keep up the good work!
Bill has a good time writing satires about government and we have a great time reading it. The sadness of it is that the satire is the truth.
Bill suggests an auction of the many useless assets. What about the many useless humans that occupy positions in our government that the country could do without. How about bringing the salaries of congressional useless leaders down including Joe the Plumber. How about the many benefits these Royal Americans receive. Let them earn their keeps. Let them start acting like representatives of the people not the political lobbies, self interest, corporate leadership (thatโs what they call them). They are busy managing full time their own wealth and delegate the business to others that earn a minute fraction of what they earn.
Ask yourself, is a corporation truly a capitalist entity. The CEO and a few of his cronies earn millions while those that make it happen are slaves.
Take into account that a corporation is not a private entity. How does one measure value of an individual in a corporation? The CEO earns 20 million for example and an average employee 50,000 dollars per annum. The ratio of 1:400 sounds right. How about a different interpretation. An average employ has to work 400 years to earn what a CEO earns in one year. One can go on and on. Soviet Union failed because a system without motivation has no foundation to exist. Can our system survive endlessly?
I would hire AOC. I heard she was a pretty good bartender, and I've been drinking a lot lately. And if she's busy mixing me drinks, she won't have time to do any more damage to our country with her idiotic ideas.
Lol, a trillion dollar coin, I believe the credit for such an idea is belongs to Zimbabwe. Why is it that Africans are always cheated out of their recognition for truly great inventions?
๐๐๐๐๐๐ป
Why not do with the Moon what the European countries did with the Americas? They landed on the shore, planted a flag, and claimed the territory for the mother country. The government would sell off portions of the claimed land to rich folks. Well, the US has landed on the Moon several times, planted flags, so why not claim it for the USA and sell off rights to exploit its resources to the highest bidder to help pay off the national debt? Elon Musk could provide transportation for a handsome profit to the our government. Just asking...
Krugman has lost all respect for economics, and now provides wry entertainment for insiders who also see behind the curtain.
The Federal government does have a long standing history of selling Federal property it no longer needs.
In particular, the Defense Department and Congress have been selling military facilities. For details, see: https://www.epa.gov/fedfacts/base-realignment-and-closure-act-brac-siteschedules the sale
And monthly our country sells millions of dollars of all manner of military goods via its Foreign Military Sales program. (One nation, however, gets a free ride: Israel. Congress gives this country enough foreign aid with which Israel then uses to buy military equipment from the US).
Although it costs money to be a major power, this doesn't mean that economies can't be found.
Palladium and platinum are 2 different elements .
The budget should be balanced,
the Treasury should be refilled,
public debt should be reduced,
the arrogance of officialdom should be tempered and controlled, and
the assistance to foreign lands should be curtailed lest the state
become bankrupt.
People must again learn to work, instead of living on public
assistance.
Marcus Tullius Cicero (107--44 BC)
The Australia Federal Treasurer today released details of the budget for
the next financial year (July 2023 - June 2024). Much to howls and
gnashing of teeth from the Greens and other grifters and grafters, there
will be a small surplus which will help to curtail inflation, and be
used to pay down the Australian National Debt.
Thank you. I think they also were locked into T-bills that paid low rates, and when rates were raised, they had to borrow at the higher rates, depositors pulled their money from the bank to buy bonds at higher rates, and the spread worked against them instead of for them.
Just another consequence of artificial, low rates, and rates manipulated by a central body instead of being set by the free market.
Today's diary reminds me of something I read by Tom Woods (I don't remember if it was his idea, or he credits someone else):
If the war effort ended the Depression, let's stage a battle between the US and Japan in the middle of the Pacific, without humans, only ships. Make it as big as we need to boost the economies of both countries.
Thanks again, so much fun to read.
I would love to read a simple explanation of why the banks are collapsing now. Has it been covered already? Did I miss it?
I believe that they were forced to buy bonds at high prices to make them resilient and then the feds raised interest rates to make the bonds worthless. The feds then engineered bank runs and gave the banks to goldies and other mates.
Bank runs.
The failed banks had invested a good portion of their deposits, in long term Government Bonds.
Normally not a bad thing.
But with the rise in Interest rates, those Government Bonds dropped in value.
Again not a problem normally.
But if people are getting antsy about leaving their cash in your bank, you need cash to cover those withdrawals, when they happen.
Unfortunately, SVB (Silicon Valley Bank) did not have enough to cover the withdrawals. SVB had to sell some of those government bonds, at a loss.
After announcing this to the public, all the rest of their depositors made a "run on the bank" (see Mary Poppins, the movie, for what that looks like). On March 9, 2023, $42 Billion with a capital B, was requested to be withdrawn by depositors. The bank couldn't do it, and was shut down by regulators later that day.
https://www.youtube.com/watch?v=XakH6Z2-RzQ&ab_channel=AmitSengupta
Very informative, thanks!