By Sydney M. Williams

Obama Statement on the Budget and SequestrationNero, allegedly, fiddled while Rome burned. Today we have a Commander in Chief who seems equally unhinged from reality. In a world fraught with Islamic terrorists and muscle-flexing autocratic nations, the enemy on which he is focused is climate change. On the Wednesday before Memorial Day, President Obama came to the Coast Guard Academy in New London, Connecticut to warn the newly graduated second lieutenants of the far-reaching consequences of climate change, and of man’s responsibility to halt its effects. Like the Norse King Canute who, after conquering Denmark, England and Norway, tried to hold back the waves, Mr. Obama went to Denver in 2008 and promised that his Presidency would bring the time “when the rise of the oceans began to slow.” Global warming is the yardstick he has used to define his Presidency.

→']);" class="more-link">Continue reading

facebooktwittergoogle_plusredditpinterestlinkedinmailby feather

By Sydney M. Williams

The off-duty, undercover cop who watched while members of a bike gang hauled the driver out of an SUV on New York’s West Side Highway last year and beat him was asked why he did nothing. His response: “If I knew what was going to happen, I would not have gotten out of bed”.

The question currently being asked of candidates – knowing what we know now, would you have invaded Iraq in 2003? – does little to reveal the judgment, temperament or character of the one being asked. It serves no purpose, other than to fill the questioner with supercilious indignation, and to make the interrogate, no matter the response, look foolish.

→']);" class="more-link">Continue reading

facebooktwittergoogle_plusredditpinterestlinkedinmailby feather

By Bohumir Zidek

From the 10th to the 12th of April, on the first really warm weekend of this spring in Central Europe, European Students for Liberty organized their 4th annual conference in Berlin.

This year’s schedule featured a lot of interesting names. Among them the MEP and self-described “Old Whig”, Daniel Hannan, the Danish journalist responsible for publishing of controversial Prophet Muhammad’s cartoons in 2005 and also a staunch defender of free speech, Flemming Rose, and the man who ended Orban’s two-thirds majority in Hungary, Zoltan Kesz.

Libertarian” Islam vs. “Communist” Islamism →']);" class="more-link">Continue reading

facebooktwittergoogle_plusredditpinterestlinkedinmailby feather
By John E. Charalambakis Ph.D., Managing Director

 

In a recent study by the McKinsey Institute total credit market debt in China is shown as the largest in the world, and that is only what we know of. The dangers are not limited just to China but are extended to the global financial system. In a world where financial institutions are interconnected and where credit flows create a maze, the overextension of credit in an economy endanger the global financial architecture with a hard landing that could quickly unravel the real economies due to the size of leverage that all leading countries have accumulated in the last 15 years.

 

facebooktwittergoogle_plusredditpinterestlinkedinmailby feather

 “For the history of our race, and each individual’s experience, are sown thick with evidences that a truth is not hard to kill, and that a lie well told is immortal.”                                                                                                                                                                                                                               Mark Twain                                                                                                                                                                                                                                  “Advice to Youth,” 1882

Stock Market An old joke goes: “How can you tell when a politician is lying?” The answer: “When his lips are moving.” While that may not be universally true, lying and deceit have infested our culture to an extent we no longer expect the truth. Lying is not new, but it has become pervasive.

White lies have always been around; they have always been acceptable and, in fact, are critical to a smoothly-functioning society. What characterizes such lies is that they are told to make someone else feel good, with little or no harm inflicted. For example, when my wife shows off a new outfit it is in my interest to express admiration. In turn, she will say things to inflate my ego, while (I am sure) crossing her fingers behind her back. Lying begins early. I recall occasions when, as a child, lying was preferable to the spanking I would get for a broken window or letting goats into the garden. The 2009 film “The Invention of Lying” depicted what the world would be like without lying – intentionally blunt and cruel, with no religion and no fiction. →']);" class="more-link">Continue reading

facebooktwittergoogle_plusredditpinterestlinkedinmailby feather

By Sydney M. Williams

Obama Statement on the Budget and SequestrationMr. Obama will be a relatively young man when he retires from the most powerful position on earth – the Presidency of the United States. He will be 55, just a year older than Bill Clinton was when he left office, and seven years younger than was George W. Bush. What will he do for an encore? Will he go back to Hawaii and paint, like Mr. Bush? Will he use his years in public service as a means to accumulate personal wealth, as Bill Clinton has done? Or will he use the Presidency of the U.S. as a stepping stone to become the leader of the world – free and not free?

→']);" class="more-link">Continue reading

facebooktwittergoogle_plusredditpinterestlinkedinmailby feather
By John E. Charalambakis Ph.D., Managing Director 
Image by © Dreamstime

 

Over the course of the last two weeks, we have been observing a twist in the bond markets. Yields are rising and consequently bond prices dropping. More than $420 billion worth of paper wealth has been wiped out in the bond markets across the globe.

The rooster of negative yields and the trajectory of a negative equilibrium we started talking about three weeks ago (see http://blacksummitfg.com/2960 and http://blacksummitfg.com/2987) came crowing home, telling us that the mirage of deflation and secular stagnation may just be a propaganda.

On top of this, the reality of supply and demand for Treasuries and bonds in general (given the QE has deprived markets of good collateral) as well as the fact that bond buyers (and especially the primary dealers of the Fed) may be hearing the rooster of even higher deficits to finance an unsustainable situation, create an environment of financial purgatory as explained below.

The speed by which the bond market changed direction not only is rare but also indicative of the volatility that will continue characterizing the markets this year. German yields on two and five year notes were negative, assuring that investors who held those notes until maturity will lose money! This is the epitome of absurdity in an environment where placebo treatments are taken as scientific prescriptions that cure the financial cancer of debt overhang. The graphs below demonstrate the significant turnaround we have been observing in the bond markets and particularly in the German bunds (in terms of dropping prices and higher yields).

facebooktwittergoogle_plusredditpinterestlinkedinmailby feather

Friedrich Hayekby Gregoire Canlorbe

The Austrian school of economic thought has returned to Europe after an American renaissance. French economist Pascal Salin represents a new generation of European “Austrians.” They are trying to explain to an audience that is still generally hostile to economic freedom that capitalism didn’t cause the recent crisis in the world economy. Grégoire Canlorbe sat down with Professor Salin to discuss Austrian business cycle theory (ABCT) and how to promote economic thinking to a skeptical public. 

Continue reading….

facebooktwittergoogle_plusredditpinterestlinkedinmailby feather
Image by © Sani Saidi

Image by © Sani Saidi

 

In occasion of Free Market Road Show Zagreb, Matt Kibbe was interviewed by the Croatian newspaper  Vecernji List – Croatia.

Matt Kibbe is one of the most influential advocates for minimal government and free markets and plays a very important role on Capitol Hill, lobbying for his powerful organization -FreedomWorks. He is a co-author of the Tea Party Manifest, a bestseller from 2010.

During his visit to Zagreb for the Free Market Road Show event, he talked about the Croatian economic system and tax reforms that should be implemented. Kibbe stated that he is not against all taxes, as he explained further – he is in favor of those taxes that would efficiently finance the basic functions of the state.

Continue reading…

facebooktwittergoogle_plusredditpinterestlinkedinmailby feather

By Mark Littlewood

This article was originally published on CapX

Image by © Dreamstime

Image by © Dreamstime

When posed with the question, ‘economic liberalism: damned, discredited or indispensable?, my own view is that all three are true.  Economic liberalism has been unfairly damned, wrongly discredited and remains emphatically indispensable, especially in areas where it has barely been tried. I’ll come on to the lessons from and aftermath of the financial crash shortly.

Continue Reading

facebooktwittergoogle_plusredditpinterestlinkedinmailby feather
1 2 3 99