Saturday, December 31, 2016

Obama is the New Jimmy Carter

The parallels are striking.  When Reagan entered the White House, the economy was a mess and Jimmy Carter had been totally humiliated in foreign affairs (more than 100 American hostages were held in Tehran at the time).  Carter, himself, seemed to be completely befuddled by the unfolding of events.

Now enter Obama.  It seems eerily the same.  The economy has been whimpering along for several years and the foreign policy disasters have been steadily mounting.  The US economy is a mess and its relationships in the world are a disaster.  In short, Obama, like Carter, has become a national and world embarrassment.

Meanwhile, the press reactions seem the same.  Reagan, according to the press at the time, was unfit to hold office.   That's the same song that the press is singing today about Trump.  Reagan was pushing lower taxes and regulatory rollback.  So is Trump.

Maybe, just maybe, Trump might be another Reagan.  We can hope.

Thursday, December 29, 2016

Obama Careens Off the Deep End

Without providing a whit of evidence, the Obama Administration has expelled 35 Russian diplomats and denied access to Russian embassy staff to two its US locations.  Nothing prompted this action apparently other than the thin reed of alleged "interference in the US elections" and alleged harassment of US embassy personnel in Moscow.  Whew!  This guy Obama is mad and way off the reservation of normal diplomatic activity.

All of this is continued sour grapes at the election losses of November and the prospect of a Trump Administration that promises to obliterate the Obama legacy, such as it is.

Still waiting patiently for any evidence that there was any Russian involvement at all in the email hacking that took place earlier this year, the American public is witnessing an historic imploding of a presidential administration.  In short, Obama is losing it.  His amateurish behavior, refusing to accept the will of the American public, is shocking.  Obama and his pal Harry Reid are stark examples of arrogant, un-democratic, petty losers.  Obama's incompetence, arrogance and pettiness is without precedent in American presidential history.

Trump and Jobs

It is interesting to see Trump make claims for job creation by a variety of companies during this transition period.  It is very unlikely that Trump himself deserves much credit for these jobs.  The decisions that created such jobs were probably made long before Trump appeared on the horizon.

That said, it is certainly a good thing that jobs interest the soon-to-be President.  Such concerns held little interest for his predecessor, who seemed consumed about the possibility of warmer temperatures sometime in the future and not much concerned with the here and now.

Trump is proving to be a surprising President-elect.  His proposed cabinet does not seem stuffed with the usual political hacks and bureaucrats that are ponied up every four years.  Instead, his cabinet choices are successful people, who don't need politics to make their living. This is a very refreshing breath of fresh air.

Most folks that served in the Obama cabinet and other parts of his administration would be starving to death were it not for government largesse (except the super rich ones like John Kerry, who married his way to fortune).   Most of the Obama folks are unemployable in the private sector, except as influence peddlers and lobbyists.  Trump brings a significant change in that regard.  Trump's designees don't need a government paycheck to keep them afloat.  They have succeeded without dipping into the taxpayer's pocket.

Change is good.

John Kerry's Speech

John Kerry's attack on the state of Israel revealed just how petty and incompetent the Obama Administration is.  A feeling of relief, no doubt, was felt by many Americans that this buffoon, meaning John Kerry, never made it to the White House.  The two things George W. saved us from was Al Gore and John Kerry presidencies.  For that, Americans should forever be thankful to George W.

Revealing an appalling lack of knowledge and an even more astounding lack of understanding of the Israel-Palestine peace process, Kerry devoted much of his talk to a highly personal attack on the current leadership in Israel.  I suppose that the current Hamas leadership in Gaza is more to Kerry's liking. 

As the architect of the Iran nuclear pathway and the payoff to Iran of $ 150 billion, Kerry had earlier revealed himself as an ignoramus on a world stage.  Yesterday's speech just added to his legacy of incompetence.  Kerry probably thinks the Syria outcome is his most impressive achievement -- more than half a million deaths on his watch.  Congratulations to Kerry.  But, it looks like he wants more deaths apparently.

While only a few days remain on the Obama watch, there is more damage that Obama can do to a country that he appears to hate -- the US.  More unilateral, likely illegal, acts are yet to come by this vicious and angry loser.  He seems intent on establishing himself as the worst president in the history of the country.  Kerry's speech is just one more example of a team that seems to be cheering for the enemies of freedom and the enemies of the US.

Wednesday, December 28, 2016

Following the Castro-Chavez Playbook

Barrack Obama, as he gracelessly slinks through the final weeks of his presidency, is showing all the petulance that you would expect for someone with a limited world view.  Obama believes, apparently, that the US and its allies are the evil empire, that capitalism is fundamentally evil, and that democratic processes and procedures are for the other guy.

Fortunately, January 20th is coming and this disgraceful presidency will come to an end.  Obama's arbitrary and destructive acts of the last few weeks have made Donald Trump, of all people, play the role of the country's savior.  Trump doesn't despise America and American values.  That means that Trump provides a sharp contrast to Obama.

Obama's long standing support for terrorists, brutal dictators, and civic repression has put the world in a precarious position.  His main ally, Angela Merkel, has all but destroyed the future of the European Union and guaranteed for Germany, as Obama has for the US,  generations of home grown terrorists.  Both Obama and Merkel have strangled their economies and humbled two of the world's (formerly) greatest economic engines.

So much damage in so little time.  In just eight years, the Obama clique has crushed the US economy, made terrorism much, much stronger, destroyed much of the Middle East, is responsible directly for hundreds of thousands of deaths due to his bait and switch policy in Syria, provided massive support and aid to Iran as well as a safe pathway for Iran to nuclear weaponry with American approval.

Arrogance has consequences.  Values have consequences.  Obama has the former, but not the latter.

Economic Growth is the Ticket

There is no reason to settle for the pitiful economy of the past eight years.  Economic growth of 1-2 percent is the worst economic recovery record in American history.  Only stifling regulations and an over-taxed economy could produce this result.

Historically, the American economy has averaged 3-4 percent economic growth and it can do so again.  All that is needed is the absence of roadblocks -- high taxes, suffocating regulation, arbitrary executive actions.  Eliminating these three things, even without any infrastructure spending, will do the trick.

Free markets don't need anything but freedom to do their work.  Let the bureaucrats find something else to do.  For whatever Donald Trump's faults might be, he doesn't hate capitalism and free markets.  That cannot be said of his predecessor.

Tuesday, December 27, 2016

Our Failing Universities

A university education costs an absurd amount of money these days.  Strange!  Education should have gotten cheaper, given technology.  Why has higher (sic) education gotten so expensive?

The right answer is that "education" has gotten cheaper -- much cheaper.  But, universities have gotten much more expensive.  Is there a contradiction here somewhere?   Not really.

Universities have less and less to do with education and more and more to do with social activities and political indoctrination.  New majors and fields of study have been created that typically do not require anyone with an advanced degree to park themselves in front of the classroom.  Just being an activist with far left political opinions can suffice to receive tenure at even the most "competitive" universities these days.

Most of these new majors and fields of study have no available career path for student graduates except somewhere in a government bureaucracy.  The private sector would be reluctant to even consider folks with these new majors -- and frankly for good reason.

Meanwhile, the dorms and student housing now compete with the most modern apartment living, complete with pools, fitness centers, and on and on.  This stuff costs money.

Actual education, in the traditional sense, costs virtually nothing.  Much of it can be obtained without bothering with a university.  Online courses, many of them free, are available in almost every subject..  Most of these courses are dramatically better than what is offered today in the elite universities, who show little interest in undergraduate teaching quality.  Why not?  Networking opportunities are the main reason for attending an elite university anyway.  Education is a side issue.

The Achilles Heel of the modern university is the political indoctrination program that is rife within these institutions.  Free speech is no longer tolerated at most elite schools.  Instead, the administration and faculty insist on far-left ideology as the only permitted conversation.  Anything else is effectively banned.  Sooner or later, the folks providing the funding for these universities will wake up to the fact that these institutions are run by people who despise democracy, free institutions, free speech and free markets.  So, why fund these places?

Wealthy donors and governments at all levels should take a second look at where their money is going.  It certainly isn't going for education.


Thursday, December 22, 2016

The "Economist" Joins the Echo Chamber

It wasn't long ago that the magazine, the Economist, was viewed as a reasonable and independent source of economic news about the global economy.  That is no longer the case.  Take a peek at the latest issues.

The Economist is awash with articles condemning the incoming Trump Administration as if the new Administration were an enemy of capitalism.  What planet is the Economist living on?  An administration committed to lower taxes, reduced regulation and a pro-business spirit can hardly be viewed as an enemy of capitalism.  This is especially true coming after an Obama Administration that seemed to view successful businesses as criminal enterprises.

The rule of law has been savaged by the Obama Administration, which took the attitude that if Congress wouldn't bow to the wishes of the Obama crowd, then Obama could just do whatever he wanted, with or without Congressional consent.  This dictatorial -- to hell with the rule of law attitude -- applied to international treaties like the Iran Deal and the Paris Accords, as well as to the incredible, arbitrary and mostly illegal executive actions on domestic policy taken in the final two years of the Obama Administration.

The American public demanded a return to free markets and capitalism and they will, no doubt, get that return from the incoming Trump Administration.  The Economist needs to hear other voices.  They are living in the NYTimes-Washington Post echo chamber.   American citizens want freedom and free markets and they have an excellent chance of getting that from a Trump Administration.  They had no chance of that from a second Clinton Administration.

Wednesday, December 21, 2016

Another Obama Record

Having shattered the old records for number of Americans on food stamps and the number of Americans who have given up hope and abandoned looking for work, Obama has now achieved another record:  most Americans between the ages of 18 and 35 living at home with parents or relatives.  See today's Wall Street Journal laying out the dismal facts of this new Obama record.

This, of course, is on pace to challenge the Europe records for stay-at-home young adults.  With no job prospects and no future, the youth of Europe simply return home.  That is the trend now in America as well, thanks to the Obama presidency.

Quite a set of records!  This is the true Obama legacy.

Tuesday, December 20, 2016

The Media Opines on Economics

We have been deluged, since the election with media articles about the coming disaster of the incoming Trump Administration.  These articles are completely ridiculous. 

The Washington Post and the NY Times are the worst offenders. 

Interestingly, Paul Krugman is not one of the authors of these absurd articles.  Krugman, these days, mainly opines on politics, not economics.  He has become little more than a Democratic Party mouthpiece and less and less does he ever discuss economics. 

Instead of reporting news, almost the entirety of the front page articles in the Post and Times are hatchet jobs about the Trump Administration.  It is hard to find any facts in these articles, but there is extraordinary amount of uninformed opinion -- especially about economics.

The stock market rally, since the election, must be truly embarrassing to these ignorant journalists.  How do they explain that they, untrained in economics, know more than markets?

According to the Post and the Times, the economy only prospers when you strangle it with taxes and regulations.  That's why Europe is doing so well, I suppose.

Contrary to the views of the so-called journalists at the Post and the Times, the markets prefer freedom to dictatorial and arbitrary government.  Modern Venezuela and Cuba are the poster children for the kind of economy the Post and the Times would like the American economy to become. 

Fortunately, the public (and their votes), see things differently and have elected people at every level of government in the US who thinks the Post and the Times are wrong.

Freedom is a good thing, contrary to what the elitists at the Post and the Times seem to think.  Finally the economy and the folks at the bottom of the economic pile have real hope for improvement.  The elitists are striking back through the Post and the Times, but no one listens to them anymore.....fortunately.

Sunday, December 18, 2016

Trumponomics Versus Obamanomics

The Obama Administration seemed to be of the opinion that more regulation and more government interference, especially arbitrary rule changes, were good for American business.  Maybe the reason the Obama crowd felt that way was that there were no business folks in the Obama Administration.

Everyone in the Obama Administration, with very few exceptions, was a political hack with zero private sector experience.  32 year old lawyers, making six figures, and dwelling in the leafy suburbs of Washington DC, were making the rules for business.-- a world they knew nothing about  This is much like someone who has never seen a football game providing the rules and the referees for NFL football.   No doubt, such folks think they know what they are doing, if they are arrogant enough, but the likelihood that NFL football could survive such nonsense is slim to none.

The American economy, under Obama guidance, was rapidly making its way toward the economic stagnation of modern day Europe.  Obama's counterparts, Democrat politicians in California, Illinois, New York and elsewhere are inexorably leading their states to a US version of modern Greece.  No doubt, these Democrats were hoping that a friendly Democratic president would bail them out of their wayward ways.  That looks unlikely now.

Trump appears to be taking a different path.  His first appointees seem to be mainly business folks or business-friendly folks.  They don't hate the private sector as almost all of Obama's henchmen do.  Wilbur Ross, the incoming Secretary of Commerce -- a friend of mine, by the way -- has spent his life in the private sector.  He knows whereof he speaks.  Hardly anyone in Obama's Administration had any idea how things work in the private sector.  They had never been there.

All of this is a breath of fresh air.

It makes Democrats and their hand-maidens in the media angry.  The media, especially, is full of the most arrogant folks in the country.  Having zero experience in the private sector, the media is constantly opining on what is best for the economy.  Knowing nothing seems to be the only credentials necessary for the Wolf Blitzers, Chuck Todds, Chris Matthews of the world to pronounce judgment on what is best for the American economy.  Their echo chamber just repeats over and over the same nonsense as the American economy slipped into somnolescence.

But help is on the way.  The Trump appointees are solid citizens with the most valuable experience such appointees can have -- almost no experience in government and/or politics.  Hooray!!

Maybe now the average American, the poor, the left-out minority community will find a champion.  Such a champion will promote free markets -- the only hope for folks at the bottom of the economic pile.

The rich and the elitists want to continue their hegemony over average Americans.  That won't happen with free markets.  If you are a minority, then you will always bow to the majority, when free markets are quashed.  The best hope for the disenfranchised and the poor are free markets.  Free markets don't care about skin color, gender, social status, etc.

The single most beneficial policy of a new Trump Administration is an across-the board regulatory rollback.  Tax reform and simplification comes next.  Attacking the plight of inner-city America by use of vouchers in education and regulatory and tax rollback should be a high priority.  America does best when every American has a chance to succeed, not just those favored by the benevolence of the Democratic Party.

Abolish the Department of Education, reform the Justice Department, reform the EPA, reform the SEC, abolish the PBOAC,  reform the IRS, modernize the Defense Department, privatize the Veterans Administration, abolish the Labor Department (transferring its real functions to the Commerce Department), reform the judiciary by appointing real judges, as opposed to left wing idealogues to the bench.

The future could be astoundingly good, if the Trump folks follow through.

Thursday, December 1, 2016

Huge Small Stock Rally in November

The S&P small stock index surged 12.55 percent in the month of November, far and away the strongest performing sector of the stock market.  Why the huge run in November?  The results of the election. 

Finally, with the regulatory shackles hopefully being loosened, the spirit of American capitalism can breathe again.  Small stocks are the main beneficiaries.  Note that large growth stocks gained a mere 1.22 percent.  Large companies benefit from stifling regulation which is why their corporate leadership supported Hillary Clinton, almost unanimously.  But, small stocks, just like average Americans, benefit from economic freedom, which one suspects, may be on the way.