China’s real national debt: $46 trillion, 330% of GDP

 

While we are concerned with our mounting debt, apparently China is having its own financial issues. Recall how President Reagan outspent the Soviet Union in defense spending to their detriment as they attempted to keep up with us. It looks like things are not so swell over China way. With China, they have a population of over one billion. Should we be concerned about a restless unhappy population? I am no expert on China by a long shot. Will it end like the Soviet Union if the Chinese can’t get their financial ship in order? Will they become more aggressive if there is a financial crisis? Zero Hedge goes on in the link below regarding the censorship China is implementing concerning the bad financial news.

 

 

China’s Shadow-banking system is collapsing (and with its China’s economic-fuel – the credit impulse), it’s equity market has become a slow-motion train-wreck, its economic data has been serially disappointing for two years, and its bond market is starting to show signs of serious systemic risk as corporate defaults in 2018 hit a record high.

But, if you were to read the Chinese press, none of that would be evident, as The New York Times reports a government directive sent to journalists in China on Friday named six economic topics to be “managed,” as the long hand of China’s ‘Ministry of Truth’ have now reached the business media in an effort to censor negative news about the economy.

The New York Times lists the topics that are to be “managed” as:

  • Worse-than-expected data that could show the economy is slowing.
  • Local government debt risks.
  • The impact of the trade war with the United States.
  • Signs of declining consumer confidence
  • The risks of stagflation, or rising prices coupled with slowing economic growth
  • “Hot-button issues to show the difficulties of people’s lives.”

The government’s new directive betrays a mounting anxiety among Chinese leaders that the country could be heading into a growing economic slump. Even before the trade war between the United States and China, residents of the world’s second-largest economy were showing signs of keeping a tight grip on their wallets. Industrial profit growth has slowed for four consecutive months, and China’s stock market is near its lowest level in four years.

“It’s possible that the situation is more serious than previously thought or that they want to prevent a panic,” said Zhang Ming, a retired political science professor from Renmin University in Beijing.

Mr. Zhang said the effect of the expanded censorship strategy could more readily cause people to believe rumors about the economy. “They are worried about chaos,” he added. “But in barring the media from reporting, things may get more chaotic.”

More at Zero Hedge

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Flashback Obama: ‘What magic wand does Trump have to bring jobs back?’

 

Trump and his magic wand. This for my Flashback Saturday. Enjoy!

 

Our former community organizer never had a clue. It seems like a million years ago we put up with Obama but we did. Here are the magic words.

 

Donald Trump used his magical wand to bring jobs back to America. The United States economy is booming because of the wand and corporations have been quick to move back to America. Barack Obama unfortunately mocked Donald Trump for having “A Magic Wand” during his 2016 presidential campaign. However he was very very wrong indeed… Here are some examples from 2017 of Trump using his magic wand to bring jobs home.

 

Obama thanks Obama for robust economic growth

 

After all, Obama must stay relevant. I wonder if he will take credit for the good work being done getting rid of Isis?

The most unsurprising brag stretch of the week:

Former President Barack Obama is taking credit for the robust economic growth that is taking place under President Trump.

At a conference of mayors in Chicago, Mr. Obama congratulated himself Tuesday for strong employment numbers in the U.S. this year, saying his climate-change policies have contributed to growth.

“As we took these actions, we saw the U.S. economy grow consistently,” Mr. Obama said. “We saw the longest streak of job creation in American history by far, a streak that still continues by the way.”

He added wryly, “Thanks, Obama.”

H/T: Michelle Malekin

Recall this? 

So much for that!

Posted in Obama. Tags: . 19 Comments »

The Looney Left

by Mustang

No one I know on the right believes that capitalism is perfect.  No one I know on the right thinks that our economy should operate without any regulation or oversight.  What we do believe on the right is that they, who govern least, govern best.  And while I think there should be oversight, we should pay as much attention to those who are doing the oversight, as we are to those whose corporate behaviors we intend to monitor.  I am confounded by the fact that placing government in an oversight role is akin to hiring a fox to guard the hen house.

But what is it, exactly, that the leftist believes about the economy?  There are several variables, of course.  Some of these people are Keynesian ideologues who dream about a welfare state through industrial democracy.  Others believe government should nationalize the economy and govern through central planning.  One might recall that the Soviet Union tried central planning, too.  Yet, the American left persists with this twaddle.  It is the classical demonstration of insanity—at least according to Albert Einstein.  Still other leftists are anarchist communists.  Amazingly, while many of these people denounce globalization, they seek to impose it through their illogical support of the United Nations.

Still other leftists advocate in favor of Marxian economies.  They seek to make a distinction between Marx the philosopher, and Marx the economist.  I suspect they do this in order to mask their goal of imposing communism on the rest of us.  It is convoluted even for leftists, which is why the leftist mentality is at best inane.  If there is anything we can count on from the left, it is the regurgitation of talking points that make no sense to anyone, including the leftists themselves.

And then we are blessed with the left-leaning libertarians who demand a decentralized economy run by trade unions, worker’s councils, and cooperatives —people I like to think of as fascists wearing sheep’s clothing.  Leftist will argue that a society without substantial equality will distort the development of not only deprived persons, but also those who privileges undermine motivation and their sense of social responsibility.  It is a collectivist mentality, and might I add, the bane of a free society —for whom better to dictate to everyone else than the leftist with all the best ideas?

Ah, but there’s the catch.  Leftist ideas are not the best ideas; among clear-thinking people, they are unfathomable.  Who but a mentally deficient person, or a psychotic, can prefer regulation in place of free markets, or bureaucracies more than corporations, or government controlled insurance plans, rather than private insurances, and more government control over the economy rather than less.

We do have to acknowledge the consistency of the American left, however, for in spite of all that history tells us about the failure of communism and socialism in the 20th Century, American leftists remain committed to its irrational concepts.  Still, we must remind ourselves that it was not an easy task to produce such troglodytes: it has taken 100 years to brainwash these people.  As we have seen, leftists live in a bizarre world.  It is a world of opposites where progressive is regressive.  It is the land of Cheech and Chong.

When government policy seeks to diminish capital investments, no one in a proper mental state will want to risk their capital.  Without capital, businesses cannot remain competitive.  A non-competitive business is only a few steps away from closing its doors.  This doesn’t mater to leftists, however.  What matters is that government regulates businesses —for their own good— and when people begin losing their jobs, well … we can put them on government assistance programs.

Still, our topic is far too complex for the space allocated to a blog post.  For example, we have not even touched upon corrupt government, which forces corporations to find some way of profiting within a sullied framework.  If businesses want to survive in a corrupt environment, they have to find some way of accommodating the devil; and they do find ways.

Our question to the leftist provocateur remains: who will hire American workers when government bureaucracy replaces the American corporation?  Who will pay salaries when businesses have been taxed or regulated out of existence?  When businesses fold, when workers are unemployed, when the US no longer manufactures anything, when the economy is destroyed (we’re close to that now), then who will carry the tax burden for the United States?

Oops.  I guess the left didn’t think about that.  Maybe government will round everyone up and march them off to government-controlled factories, a la the Soviet Union.  Yes, that should work!

Department of Labor to ban financial advice from the airwaves?

Anyone out there who might have a clue how the Department of Labor controls what programming we have on the radio or television? Really, we know what this is about. Beginning of the Ministry of Thought Control being granted the purview to eliminate programing by ‘Rule.’ First the airwaves, soon the internet. Follow the link at the bottom of the post if you wish to get into the weeds and the politics of the issue.

Radio stations which carry money-related broadcasts like Dave Ramsey, Clark Howard and others will force the hosts to stay away from individual calls. Even telling an individual or family that it would be a good idea to put away the plastic and get out of debt is technically a form of “financial advice” that ultimately affects their ability to retire comfortably (or at all).

A proposed 33-page rule applying to investment advisers emanating from the Department of Labor would redefine the fiduciary relationship between investment advisers and their clients investing for retirement, which is the predominant objective of most investors. According to the Wall Street Journal, the rule “could be released as soon as this month.”

One side effect of the rule is that it could mark the beginning of the end of financial talk radio and TV broadcasts. Since such programs tend to lean center-right (there are exceptions, including Suze Orman), it seems mighty convenient for the government and its regulatory army that the press, particularly the Associated Press, has paid no visible attention to this apparently imminent rule.

DOL’s rule, once in effect, would require advisers to act in their clients’ “best interests,” a stricter standard than the current requirement that they place their clients in “suitable” investments.

More at Newsbusters

Recall Obama striked the CLASS act portion from Obamacare?

Now there are questions about the legality of Obama picking and choosing portions of Obamacare? And this is just a delay supposedly.Wait, wait. Am I the only one who remembers the CLASS Act that is part of the bill? That was the long-term care plan that was included. Not one peep from the GOP when this was summarily dismissed from the bill by Sebelius. Even better is the clip I have.The very same people who were extorting the miracles of Obamacare’s CLASS portion. Now?  Enjoy.

In October, 2011 I posted Obamacare’s Class Act – fully paid for, oh wait! No??

Health and Human Services Secretary Kathleen Sebelius announced Friday in a blog post on the liberal Huffington Post website that the administration did not see a way to make the program sustainable. Sebelius indicated her agency hadn’t been able to figure out a way to ensure the program providing long-term care paid for itself as required by law

“Friday the Department of Health and Human Services announced the CLASS Act portion of Obamacare was a no-go“.

In March of 2010 we were told that the CBO estimated the CLASS (long-term care) provision of Obamacare would reduce the deficit by $70 billion. Today the Obama administration announced that CLASS is being eliminated because it’s too expensive, the Wall Street Journal reported.

Uploaded on Oct 17, 2011

Democrats praise CLASS Act

(Recall earlier the administration warned it would veto the bill without the CLASS Act)?

Today, White House officials suggest that President Obama would veto any bill repealing the measure, according to The Hill.

“We do not support repeal,” the official said Monday. “Repealing the CLASS Act isn’t necessary or productive. What we should be doing is working together to address the long-term care challenges we face in this country.”

Over the weekend, The Hill has learned, an administration official called advocates of the Community Living Assistance Services and Supports (CLASS) Act to reassure them that Obama is still committed to making the program work. That official also told advocates that widespread media reports on the program’s demise were wrong, leaving advocates scratching their heads.. More at  Lonely Conservative

Farm bill is chock-full of agribusiness pork

Apparently, Congress has not received the message from the voters. It is going to be “pork’ on steroids. Amazing that these same people will present themselves for re-election in 2014. For the House, all of them. So while they wail about the massive over spending that is a threat to the survival of our nation, the debt we are burdening the next generations that will be impossible to repay, it’s spend, spend, spend. So they roll food stamps into the farmers pork bill. Better to see you my dear. And we do. A nice piece over at Hot Air that let’s us know what is going down while the thieves in chief spy on our behaviors.

This behemoth and pork-filled bill is going to be directing a full decade’s worth of federal policy, but it’s going to fly on through under the radar to the tune of a trillion dollars paying for all kinds of miscellaneous programs, like expanding broadband in rural communities and cleaning up the Chesapeake Bay; it’s nothing short of a raging party funded by the taxpayer’s dime, and everybody’s invited!

The Heritage Foundation points out, this is all a lot of hemming and hawing over what is a much more expensive bill than the last go-around, plain and simple:

BL-farm-bill-CBO-costs

As the WSJ points out, peanut, cotton, and sticky-rice farmers are going to be some of the big winners of the price guarantees in the bill:

The federal subsidy in the House bill guarantees farmers of Japonica Rice that if market prices drop below 115% of the average price of all types of rice, they will get a government payment to make up the difference. …

The move shines a light on guarantees against drops in commodity prices that are in some ways replacing the much-maligned direct payments to farmers Congress is seeking to end. Subsidies for products such as corn, wheat and cotton cost taxpayers about $5 billion a year. Rice growers have received a total of more than $2.6 billion in subsidies since 1995, according to the Environmental Working Group…

The sticky-rice provision won strong support from, among others, two Northern California lawmakers from neighboring districts, according to congressional aides and people working with the rice industry: Freshman Republican Rep. Doug LaMalfa, a fourth-generation Japonica Rice farmer who sits on the House agriculture committee; and Democratic Rep. John Garamendi, a rancher and pear farmer.

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