Podcast 446

Media Manipulation. Checking out the news cycle before and after the debates, and in the last few weeks it sure feels like we’re being manipulated. You can’t say anything about anyone these days without a stream of tweets and posts about what’s politically correct, or charges that ‘you’re in the tank’ for this or that candidate. New story lines about Donald Trump are actually laughable. After his comments on the San Bernardino Terror Attack (not the San Bernardino shooting, as Hillary Clinton likes to characterize a terror attack) Trump was a racist, a fascist and a demagogue. Now that a new poll has been released showing Trump breaking through forty percent, with his closest challengers as much as twenty points behind, the story line is its the fading middle class, or dumb white high school only ‘blue collar’ workers who support him. Or, that Ted Cruz is suddenly ‘the nominee’ because he beat Trump by one point in a poll in Iowa. Because people in Iowa don’t know that they’re being surveyed, interviewed and chronicled to death as they ‘pick the next president’. Meanwhile not a vote has been cast. Kudos to the Cruz campaign for working hard in Iowa but let’s not forget Iowa (which is somewhere down there between New York and Los Angeles, for those of you in the media) Republicans voted for Mike Huckabee in 2008 and Rick Santorum in 2012 and gave Michele Bachmann a big boost in the Straw Poll in 2012. Were any of those people the Republican nominee, or even president? At the same time, almost no ink has been devoted to Hillary Clinton’s compulsive lying or Bernie Sanders’ fairy tales about how to fix the economy, or solve all of America’s social problems with another government program. While the pundits and commentariat blabs on and on trying to predict the future, manufacturing is in a recession, government and corporate debt are at record levels, companies are merging to pump up their fourth quarter earnings, Chinese officials admit making up economic numbers, commodities are depressed  and the Fed is about to raise interest rates. Iran has pulled its troops out of Syria because they’re getting their ass kicked by ISIS, which by the way is expanding into Afghanistan where they will get an assist, no doubt, from the guy we had locked up in Gitmo, but let go to get a deserter back. Don’t worry about that right now though, Anderson Cooper is on talking about Carly Fiorina’s dress, Donald’s smack down of Jeb! and the Cruz Rubio rivalry. Hey did the Wild win? Maybe we’re better off with astrologers. As long as its Vedic astrology, right? Sponsored by Pride of Homes and Luke Team Real Estate and Hydrus Performance. 

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Podcast 407

Killing The Golden Goose. We’ve all heard the parable; The greedy farmer and his wife with the goose that lays the golden egg. As ‘back to school’ looms, the beginning of reengaging in the political process begins with a look at what the real issue might be in our economy and by extension, our politics in the United States. The question is, which is the goose and greedy farmer? Think of the economy – the sum total of all we consume and produce —  as a force of nature, like a hurricane rather than as some kind of Rube Goldberg device with dials and switches and levers. Or, as a golden goose. If the government takes more and more to sustain its operations and debt, where does that money come from? It comes from the individual. Can the government spend too much, and so require too much from the proverbial golden goose? You don’t hear this question discussed too much in the political arena these days. What you hear is a lot of nonsense about individual tax plans for the middle class, or taxing the so called ‘rich’. The fact is, the government takes your income — your wealth if you will — and uses it for its own aims. We’re supposed to have a conversation with our politicians regarding what those aims are, but we usually don’t. If government spending now, without calculating perpetual obligations like social security and other entitlements including medicaid, medicare and the so called Affordable Care Act is almost 40 percent of the country’s total economy, maybe this is the reason why our economy isn’t growing fast enough. Is it possible the greedy farmer is in the process of killing the golden goose? And if so, what do the perfumed princes on the campaign trail intend to do about it? The grey area between what is a public good, and greedy government is the crossroads where we are stuck. If we don’t figure out how to talk about it and to solve the problem, our goose is cooked. Sponsored by X Government Cars and Ryan Plumbing and Heating of Saint Paul. 

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Podcast 238

Economic Doom. Inflation, Deflation, Disinflation. Is the economy booming, or crashing? In the fantasy world created by the media, there are only winners or losers. The reality is somewhere in between. What is inflation, deflation and disinflation? Do we have inflation in the United States, or not? Despite the Federal Reserve pumping trillions into the banking system in America, we’ve seen only slow growth at best; Not enough growth to bring out self-mothballed workers from the ranks of those who have given up looking for work. Yet, we are told the US is reaching ‘full employment’, and that the economy is ‘roaring’ back. With only 76 percent of our industrial capacity utilized, a significant amount of that capacity in the oil, and mining sectors, the concern is disinflation, and perhaps deflation. In the Euro Zone, the ECB is worried about Deflation. In China they’re worried about a slow down. In Japan, huge inflows of cash from the central bank and government has produced mixed results. Yet, with a new set of economic numbers this month, economists, reporters and political cheerleaders are saying the US economy is ‘set to grow’ and we’re back to the Rosy Scenario. When things don’t pan out as they predict, it will be ‘unexpected’ or ‘surprising’. Reporting like this is devoid of context, and grossly misinforms the public, leaving them confused and angry when they can’t get a higher paying, better job. For instance, the much vaunted consumer is constantly told he accounts for 70 percent of the US Economy. Not true. We are being told new housing construction is up. In fact its apartment houses. We’re told the housing market is back, but a closer look reveals many cash buyers who are buying homes to rent out. A recent drop in housing sales is attributed to cash buyers pulling out of the market because homes are ‘too expensive for cash buyers’. Inflation and Deflation have both been associated with stagnant growth in various countries, sometimes disaster. We’re told ‘cheaper gas’ gives consumers the where-with-all to spend, and yet gasoline has only been somewhat less expensive for about a month. (Editors Note: Yeah gas is cheaper, but I’m not taking the money I’ve ‘saved’ on a shopping spree.) With Europe and China and other parts of the world in a seeming synchronized slow down, oil and commodities dropping, the markets moving and up and down wildly, suddenly some are alarmed and concerned. Is it possible that years of government borrowing and spending, and central bank intervention in markets have added so much malinvestment, the chickens are finally coming home to roost? Why do governments and big debtors love in inflation, and fear deflation? The takeaway is, it’s time to start thinking about what we expect these sclerotic and expensive governments to actually do, and start demanding they operate with as little debt as possible, and that our money be based on something stable like, uh…Gold or Silver. The reason? When governments can print their way out of debt, citizens actually pay the cost in higher taxes and inflation. Sponsored by Depotstar.  

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