When 70 students attending economics professor Greg Mankiw’s Economics 10 class on November 2nd walked out in protest, they wrote an open letter to him explaining why: "Today, we are walking out of your class…in order to express our discontent with the bias inherent in this introductory economics course…...
At an APEC (Asia-Pacific Economic Cooperation) summit last weekend in Hawaii, President Barack Obama told CNSNews that the United States needs to step up its courtship of foreign dollars. He said America has been “a little bit lazy” in promoting itself to overseas investors.
He added, “It’s important to remember that the United States is still the largest recipient of foreign investment in the world, and there are a lot of things that make foreign investors see the U.S. as a great opportunity — our stability, our openness, our innovative free market culture.”
But the concepts of stability and free markets have taken a hit during his administration, and not because free markets don’t work. A real unemployment rate of what critics say is closer to 20 percent than nine, a downgrade of the United States' debt rating, and a huge national debt don’t reflect stability. How does Obama propose to promote this climate as stable, open, and innovative?
“One of the things that my administration has done is set up something called SelectUSA that organizes all the government agencies to work with state and local governments where they’re seeking assistance from us to go out there and make it easier for foreign investors to build a plant in the United States, and put outstanding U.S. workers back to work in the United States of America,” he told CEOs and others at the summit.
Italy’s new Prime Minister Mario Monti, who rose to power in what critics called a “coup d’etat,” is a prominent member of the world elite in the truest sense of the term. In fact, he is a leader in at least two of the most influential cabals in existence today: the secretive Bilderberg Group and David Rockefeller’s Trilateral Commission.
Nicknamed “Super Mario,” Monti is also an “international advisor” to the infamous Goldman Sachs, one of the most powerful financial firms in the world. Critics refer to the giant bank as the “Vampire Squid” after a journalist famously used the term in a hit piece. But its tentacles truly do reach into the highest levels of governments worldwide.
One of the biggest mistakes taxpayers made in this country is permitting government employees to unionize. They created a real Frankenstein: unions that can hold the taxpayers hostage in order to get all of the benefits they feel entitled to. Governor Walker in Wisconsin was successful in curtailing the bargaining power of the government employee unions, but now that the unions have won in Ohio, they are determined to unseat Governor Walker and restore the benefits they lost. Will the taxpayers of Wisconsin allow that to happen? We shall see.
Meanwhile, conservatives have learned a hard lesson in Ohio. The unions will stop at nothing to retain their power and privileges, and the taxpayers will be forced to pay for it all — or go bankrupt. Of course, President Obama was overjoyed by the results of the election in Ohio. He is totally dependent on the unions for their power to keep him in office, and the signal from Ohio is that the unions have the means and strategy to give him a second term.
How did this upset happen in Ohio, where Governor John Kasich has done all in his power to reduce the cost of state government and expected the taxpayers to back him up by voting for the proposition that would have curtailed the bargaining power of the unions? It happened because the unions spent more money than the opposition and frightened the public by painting dire pictures of what would happen if cops and firemen were laid off and the public was left at the mercy of criminals.
“Civilizations die from suicide, not by murder,” said British historian Arnold Toynbee.
We’re seeing exactly that today in Greece, Italy, Portugal, and Ireland. In all those cases, the ineptness of government and the mismanagement of domestic economic policy have turned once-great nations into beggar states.
In Italy, bloated levels of government spending, rising levels of red ink, political opposition to any meaningful austerity package, and the prospect of a debt default have spooked investors, ignited a capital flight from Italian bonds and raised borrowing costs.
In August, Italy paid buyers of a new 10-year bond a yield of 5.22 percent. By October, the rate was 6.06 percent. In early November, the price of borrowing to Italy via the same 10-year bond rose to 6.73 percent, an escalation in costs that only added to the red ink and deepened the debt crisis.
Economist Mario Monti, a former European Union Commissioner, was named “senator for life” by Italian President Giorgio Napolitano on November 9, followed several days later by the appointment of Monti as Italian prime minister after Silvo Berlusconi stepped down.
A year ago Dagong Global Credit Rating reduced its rating on the sovereign debt of the United States from AA to A+. In August it dropped it another notch to A. In an interview on Saturday the agency’s chairman, Guan Jianzhong, said it is nearly inevitable that the agency will further reduce its rating of U.S. sovereign debt: "We are continuing to monitor this closely. First of all we need to look at this year’s economic growth [in the US] and then predict next year’s trends. If in the year 2012 the overall projections are not very good, meaning that the sources of payment – and liabilities – are bad and cannot be changed, or change for the worse, then we will lower the rating once again."
American taxpayers are sending over $100 million per year to a bloated international bureaucracy that has morphed into a “cartel enforcer” for welfare-state politicians seeking to prevent tax competition, according to a new study.
Entitled "Cartelizing Taxes: Understanding the OECD's Campaign Against 'Harmful Tax Competition,'” the paper examines the Organization for Economic Cooperation and Development and its increasingly fierce campaign to “cartelize” global taxes. And the picture that emerges is troubling to say the least, according to experts.
Competition between nations for jobs, capital, and business has served to restrain big government and harmful policies for centuries. If one regime raised taxes too much, companies and workers could simply move to another jurisdiction.
But now, with massive U.S. taxpayer subsidies representing about a quarter of the bureaucracy’s budget, the OECD is working feverishly to end tax competition, according to the paper. And the schemes are designed to benefit high-tax welfare states determined to stem the flight of businesses and capital to more business-friendly environments.
After voters rejected a measure on November 8 to rein in public-servant unions in Ohio, activists who led the successful campaign to nullify ObamaCare in the state are now trying to end government-mandated membership in labor organizations. The constitutional amendment, known as the “Workplace Freedom Amendment,” would make Ohio one of almost two dozen “right-to-work” states in America. If approved by voters it would allow government and private-sector workers to freely choose whether or not to join a union and pay union dues.
The list of crimes committed by members of the leftist Occupy Wall Street movement has grown to at least 204. And John Nolte, of BigJournalism.com, reports that the leftist media is hiding the scope of criminality and hatred the OWS movement represents to mislead the public about the movement’s true nature. Nolte keeps a tally of OWS crimes at the Big Journalism website. At least six people have died at OWS events, Gateway Pundit has reported, including two men shot to death on Thursday, one in Oakland and one in Burlington, Vermont.
In his Forbes magazine article published Thursday, Nathan Lewis makes it sound easy to get back to a gold standard. After all, it has been accomplished numerous times in history around the world, including in America following the Civil War.
The first way is a “return to prior parity,” which would mean making a dollar redeemable in gold at $35 an ounce. Lewis points out that this would be impossible as it would entail a huge shrinkage in the money supply and a consequent depression. So option one is out.
The second way is to make a dollar redeemable in gold at a figure close to gold’s current price at between $1,500 and $1,700 an ounce. Lewis notes that this would also require a major restructuring — “a long price adjustment” — in his words, and “would probably cause a recession.” Not such a good option.
Lewis says there is a third option: Simply replace the currency with another one and make it redeemable in gold at some arbitrary value that the present gold supply would support. He points out that although the dollar is weak and getting weaker, few are ready for this. This option would apply only after the complete destruction of the dollar, something similar to what happened in the German Weimar Republic in the early 1920s. So that option isn’t feasible either. At least not yet.