The Liberty and Economics Review

THANK YOU READERS!

2011-11-05T09:29:00.004-04:00

Dear Readers,

I have decided to put LibertyandEconomics.com in stasis. I am not taking the site down and I very likely will write in it again. Time however forces me to focus efforts elsewhere for now.

I am continuing to write at AGAINSTCRONYCAPITALISM.ORG. I hope you will join me there and read often.

In the mean time, keep fighting for liberty. Don't despair when losses come. Be contained when wins happen. Just keep moving toward a freer society.

Sincerely,

Nick

New euro 'empire' plot by Brussels

2011-10-23T12:18:00.001-04:00

The proposal, put forward by Herman Van Rompuy, the European Council president, would be the clearest sign yet of a new “United States of Europe” — with Britain left on the sidelines.

Click here for the story.

China begins to unwind.

2011-10-13T09:39:00.002-04:00

China Bad Debt May Reach 60% of Bank Equity, Credit Suisse Says

As we have said quite a few times here China's penchant for central control and opacity would eventualy chip away at the Chinese "miracle." And frankly it HAS been a miracle. However, the ride is about to get bumpy we think.

Click here for the story.

What I saw at Occupy DC.

2011-10-08T18:09:00.004-04:00

Protestors love sunny weather. Yesterday there wasn’t a cloud in the sky, so there were a lot of protesters in Freedom Plaza for the Occupy DC rally.

As I walked up the first thing I saw was a girl holding a sign that said “Love not hate.” OK, I’m for love, I can definitely go with that. I crossed the street to the main shindig.

At the end of the plaza a stage had been erected where people who seemed more inclined toward hanging out in sociology department lounges than working ranted about Wall Street and it’s greed, the wars, and the death penalty.

Frankly, the beefs most of the people had seemed at least somewhat legitimate. But almost all of the speakers I heard identified “capitalism” as the cause of their problems. It was to be expected but was nonetheless frustrating. As Michael Moore said earlier this week, and I am paraphrasing, “We don’t need to end the Fed, we need to end capitalism.”

Most of the people I saw yesterday probably agreed with that statement.

Click here for the rest of my piece in AgainstCronyCapitalism.org

Important poll on the nature of the Tea Party- How libertarian is it?

2011-09-29T16:14:00.004-04:00

A good bit it appears. I had estimated the conservative/libertarian split to be about 60% "Teaocons" and 40% more or less libertarian. Turns out I'm about right!

The media characterizes the Tea Party as a socialy conservative movement. This makes it much easier to demonize. This poll shows, as most of us know, that the compolsition of the Tea Party is more complicated than the establishment might think.

Click here for an article on the poll at Reason.com

These are the issues that define the GOP presidential race at this moment.

2011-09-22T22:39:00.004-04:00

For those who don't know these (above)are word clouds. They are the words most associated with an issue according to Google at this moment. They represent the issues that candidates neglect at their peril.

Gamers solve puzzle which stumped scientists for years and could hold key to curing AIDS

2011-09-20T11:49:00.000-04:00

Interestingly gaming is ideal way to organize mass collaboration. There are a set of rules by which people must abide (which focuses the endeavor) but beyond that the individual if free to riff off of other individuals at they see fit. Gaming allows for an "intellectual jam session."

Click here for the story.

DoD Biggest Employer In the World

2011-09-15T16:46:00.003-04:00

Great post in LewRockwell.com. Our DoD bigger than the Peoples Liberation Army of China. And Walmart too.

Click here for the story.

'Buy All the Euro You Can' If Greece Defaults: Jim Rogers

2011-09-09T16:27:00.000-04:00

A Greece bankruptcy would actually be a good thing because "it's time for people to acknowledge reality," well-known investor Jim Rogers told CNBC Friday.

Click here for the story.

Is The Need for Stimulus "Undeniable"? As Schiller says.

2011-08-31T07:37:00.000-04:00

A recent article by the best known Keynesian economist at Yale, Robert Schiller, begins this way: "[A] ... fact... about our current economic situation... can no longer be denied: our economy is in desperate need of government stimulus."

Does the rest of the article provide a defense of stimulus? No. Since the need for stimulus it is undeniable, there is no need to defend it. No reasonable person would disagree. Right?

Wrong. There is a problem here. Reasonable people do disagree, strongly disagree. Robert Barro, the distinguished Harvard economist, wrote an article about the same time as Schiller's explaining why neither logic nor evidence supports government stimulus programs. Barro is far from alone, among either economists or the general public.

Click here for the article.

My piece: Is There a Conspiracy Against Ron Paul

2011-08-27T21:26:00.003-04:00

The Ron Paul piece I did for my column in the Culpeper Star-Exponent on Thurday was widely shared and was even the first thing that came up in Google for "Ron Paul" for nearly 24 hours on Friday.

Thanks for sharing folks :)

A story missing from our media: Iceland's on-going revolution

2011-08-27T21:21:00.001-04:00

As one European country after another fails or risks failing, imperiling the Euro, with repercussions for the entire world, the last thing the powers that be want is for Iceland to become an example. Here's why:

Click here for the story.

NOW they are scared of Ron Paul

2011-08-24T21:47:00.002-04:00

By Nick Sorrentino

I am not one for conspiracy theories. One of the important things I learned in my brief time in Washington DC is that it is very hard to keep a secret secret in politics. But in the wake of Ron Paul’s near victory (he lost by less than 1%) in the Iowa Straw Poll I had to fight the thought that there was a concerted effort among many to keep Ron Paul as far off the radar screen of Americans as possible.

It was truly bizarre. As a long time fan of Dr. Paul’s I long ago got used to the shabby treatment given to Paul by most of the media. But after the poll, media shabbiness was taken to a whole new level.

It started with the head of the Iowa GOP announcing the winner, Michelle Bachman, and then wishing everyone a good night without announcing the rest of the placing. This was never done before. Traditionally the other places were announced. Of course Ron Paul had never placed second in the Iowa Straw Poll before.

I watched the Sunday morning talk shows the next day. Michelle Bachman (a native of Iowa) was on every channel crowing as she had every right to, she won. However, Ron Paul was nowhere. That seemed nearly as weird as the winner announcement the day before.

In fact when talking about the poll results most of the Sunday shows did not even mention Ron Paul. They mentioned Bachman. They mentioned Pawlenty because he dropped out. They mentioned Perry (who was not even on the ballot) because he had just entered the race. And they mentioned Romney because someone declared him the “frontrunner.” Nothing, I mean nothing, about the man who nearly won the contest, Ron Paul.

The next day Paul announced that he had been scheduled to be on one of the Sunday morning shows but that the show had called and canceled. He declined to say which one it was.

When I heard that I knew it was official. The establishment was now scared of Ron Paul. It thinks he can win the presidency if things break right for him a couple of times. But both the establishment left and the establishment right do not plan on allowing any breaks to come Paul’s way.

It’s like this.

The establishment left fears Paul because he is actually serious about reducing the size of government, by a lot. They see a Paul presidency coupled with an even more powerful Tea Party in Congress as the possible death of the New Deal dream. This blows their minds. Obamacare under a President Paul? Not likely.

The establishment right fears Paul because he is a threat to the massive warfare (and now surveillance) state that this country has built since World War II. If we bring our troops home, if we end the wars that are bankrupting the country, if we abolish the TSA, if we reign in the Department of Homeland Security, how is the establishment right going to get money to the people who give the establishment right politicians money?

So there you have it. Both sides don’t want Paul to be president, and because Paul represents change, not fake Obama “change” but real change, they will do everything they can to make sure their club remains intact.

Why do you think there is the new, and in my opinion highly unconstitutional “Super Committee” in Congress? It is an end run around the Tea Party by both the old GOP and the Democrats to make sure their power is not reduced.

That darn Constitution keeps getting in the way. Doesn’t the Tea Party (and Ron Paul) know that it is we who are the ones in charge. This is our country. We are the big shots. You, the peons are to follow as you always have. Do as we say. Don’t even THINK of voting for Ron Paul.

Earthquake in DC- Tweets of scorn

2011-08-23T21:06:00.001-04:00

Quake provides field day for Washington wise-acres

Click here for the story.

Queensboro Bridge in NYC sign hacked reads: Ron Paul 2012

2011-08-21T10:22:00.004-04:00

The bridge is now named for Ed Koch the former NYC mayor. He isn't happy appearently. I can understand.

Click here for the story.

The lack of posts, AgainstCronyCapitalism.org

2011-08-20T11:15:00.006-04:00

My apologies to my regular visitors. Over the past 2 weeks I have been trying to get a couple of websites up for people who payme. As I am a fan of being paid I have focused my attention there and have neglected this site. It looks like the new sites are ready to leave the nest so I will begin posting daily here again.

One of my projects, AgainstCronyCapitalism.org is one that might be of special interest to readers of the LER. It is a partnership between me and legendary investor Hunter Lewis, founder of Cambridge Associates. They manage the Harvard endowment along with 3/4 of all the other college endowments in the USA. You'll like his stuff, so please VISIT.

Baby Boomers Exit, Leave Mess

2011-08-14T16:05:00.003-04:00

By Nick Sorrentino

Last night I couldn’t sleep. Between a rather nasty summer cold and what has been happening in the stock market I just couldn’t rest. It looks like I may be in for some more restless nights in the weeks ahead.

I wish the world economy only had a cold. Unfortunately it has something much more serious. The world has waited and waited for a recovery, but the economy is still bed ridden two years into its “recovery.” We are in very serious trouble I am afraid.

Despite two years of cheerleading from the Federal Reserve, the media (both financial and otherwise,) and the White House, we are stuck. We are lucky that things are not much worse. Unfortunately our luck may have just run out.

Though much has been made of the downgrade of US debt by S&P, this is only a small part of what is driving what looks like another leg down in the “Great Recession.”

Europe and the death of its unsustainable welfare state is a much bigger part of the picture. Europe has made promises to its people based upon bizarro economics. Somehow everyone was supposed to have a month and a half vacation, and the ability to retire at 55, and things were to just chug along even with economic stepchildren such as Greece and Portugal clinging to the Euro zone’s skirts.

It was the European, post World War II dream. That dream is quickly turning into a nightmare.

But even Europe isn’t the biggest problem. It’s us.

The United States doesn’t want to come to grips with reality. That’s why we see such consternation and gnashing of teeth these days.

The American post World War II dream is dying right along with Europe’s. The days of a constantly expanding international empire fueled by an “almighty dollar” are coming to a close. As this order ends we will continue to see economic and political dislocation. But we don’t want to accept it.

For some this new reality is a catastrophic state of affairs and it’s just nearly impossible to accept.

For those approaching retirement there is a cold wind blowing across their portfolios. Not only that, social security is subject to the same demographic realities that are hammering Europe and is unlikely to survive in its current form. What had once seemed fairly sure, a comfortable retirement fueled by dividend heavy mutual funds and Social Security no longer looks so sure. In fact it looks pretty unsure.

For 70 years we have expanded government and put the cost of paying for it off on the next generation. The problem is that on a worldwide level, across what is generally referred to as “The West,” the generation exiting the scene is larger than the one replacing it. Since the state must be funded by those who are working, by-and-large, this is a major problem.

Add the dislocations of a postindustrial society and you have a recipe for massive change.

The Tea Party had little to due with the recent S&P downgrade despite the talking points coming from the White House and filtered through the establishment press. As I said the S&P rating is not the prime mover of the new market crisis anyway. Interestingly investors are actually piling into US Treasuries despite the downgrade looking for “safe haven.”

So that could be construed as encouraging.

On the other hand if investors are still buying US debt for safety reasons, despite a $60 trillion obligation that likely will never be paid back, one has to ask how bad the rest of the world economy is.

Ron Paul wins poll from debate, FOX removes results

2011-08-12T11:04:00.004-04:00

Great map of votes form last night's Fox News debate poll across the country. Ron Paul wins in almost every state. Not worth reporting though.

The establishment is flat out scared.

Click here for the map and poll results.

Bernanke Fed Admits QE Has Failed

2011-08-09T18:55:00.004-04:00

Is the Fed "throwing in the towel?" as this article says? I am sure not. But this is a new tone from the Fed and one that will confuse the markets in the near term I think.

"It appears that QE has failed. In its latest post-rate setting meeting statement, the Federal Reserve noted that the economy’s growth rate remains “considerably slower” than expected, while noting that temporary factors only explain part of the problem."

Click here for the article.

Ron Paul can beat Obama, It's not just me saying it.

2011-08-06T23:16:00.001-04:00

Ron Paul gets some respect on CNBC

2011-08-06T22:17:00.001-04:00

The E-Trade Baby loses it all!

2011-08-05T11:06:00.001-04:00

The "Super Congress" The people lose yet more power

2011-08-03T20:48:00.001-04:00

Social liberalism and the Tea Party

2011-07-27T16:54:00.004-04:00

By Nick Sorrentino

In the 60s there was a revolution. Drugs, sex, rock and roll, it all happened. Then the 70s came when the kids of the 60s become “adults.” Then the 80s with the BMWs. Then we elected the first boomer President Bill Clinton.

Now we have another revolution percolating. But this is vitally important- it is NOT a counter revolution.

My lefty friends are scared out of their minds that the Tea Party is out to turn America into some 21st Century soft right fascist, Leave it to Beaver, pre-60s America.

To be sure there are plenty counter revolutionaries out there, but they are dieing off. The libertarian/Tea Party revolt is however about reigning in the state, not about reigning in liberties.

This is important. Even Sarah Palin has said that she thinks marijuana legalization is something best left to the states. For many in the Tea Party issues such as gay marriage for instance are also things that should be relegated to the states and not worth working up a lather about. Many in the establishment left do not understand this very important nuance within the Tea Party.

Basically the people who are doing the freshest thinking in politics today are in the Tea Party. Sorry Daily Kos, and Moveon.org, which got co-opted by the Democrats (don’t you just feel, well, you know,) the Tea Party has stayed independent without a real leader for nearly 2 years.

This is unheard of for a 3rd party (which is what the Tea Party really is, only through the 2 party system,) and it gives the Tea Party immense power because it is legitimate. Legitimacy is what changes nations, even this one.

Change is coming, make no doubt. Not the pre-packaged “change” of our current figure head, with a trade marked logo, but real change. The kind where the people who have made this country have their say. Where the state is rolled back. Where the tax payers shrug.

The young people who are inclined toward less government are completely fed up and were ready 2 years ago, but the older folks who grew up thinking social security was a right, and that Vietnam was a good idea have been slower to come around.

Finally however they have started to understand the idea of a truly smaller state, even if this means tolerating people they may not like.

Indeed social conservatism is anathema to a smaller government. One is unlikely to see anyone who identifies with the Tea Party advocating the “Defense of Marriage Act.” Though undoubtedly there are a few out there somewhere who care about the DOMA, these sorts of issues are not that important to much of the “Don’t Tread On Me” crowd.

What does spike the Tea is the need to reduce government and it’s power, and it is this belief that has engaged whole swathes of people who here-to-for did little more than vote in Presidential elections.

This is a very dangerous development for some.

It is interesting to me to observe the groups that have railed most vehemently against the Tea Party Revolt. Over the last 2 years I’ve watched it very closely.

Almost without exception it is not the social liberals freaking out, gays, anti-drug war advocates, anti-war people, and similar folks. It is instead the big government liberals, government employees and union members who benefit from the largess of the state.

So as the Tea Party movement continues to grow, people who just want to be left alone, people who have traditionally considered themselves “liberal” for social reasons, have nothing to worry about, indeed they have much to gain. Don’t worry, the social revolution of the 60s is intact.

The state and the people who benefit from it however are in for a rough ride in the years to come.

Peace.

McConnell and Obama want an unconstitutional "Super Congress."

2011-07-24T11:28:00.008-04:00

This can not be happening. (Unfortunately it looks like this is real.) Apparently the legislative process outlined in the Constitution isn't working in their eyes, so Obama and congressional leadership, of both parties think a new congressional star chamber, a "Super Congress" composed of- surprise- party leadership is the answer.

Such a group would be completely unconstitutional and we must not allow this to happen. They might as well pull the Constitution out of the Library of Congress and burn it on Youtube.

This is extremely serious if it gets any traction.

Time for liberals and libertarians and conservatives to get together on something. Judging by what is popping up on blogs across the political spectrum today everyone is unhappy with this idea.

Click here for the story.