Free kibbles

FEDERAL RESERVE:

How the euro created the problems in the eurozone.

"A centrally directed monetary policy through the ECB in Frankfurt promoted a program of instability for over a decade. A unique interest-rate policy for the greater monetary union led to wildly divergent real interest rates. High-inflation periphery countries — those affectionately known as the PIIGS (Portugal, Ireland, Italy, Greece, and Spain) — witnessed their real interest rates dive to the lowest levels that most of their citizens had ever witnessed."

"A spending frenzy resulted from these low real rates. Interest-rate-sensitive assets — houses and other construction projects — were ballooned to the point of excess. The Spanish economy built 700,000 new homes in 2006, more than Germany, France and the United Kingdom (which experienced its own housing boom) could produce combined. Today Spain sits on one million empty housing units, more than the whole of the United States."

"Two years ago Iceland found itself in the midst of the world's worst economic collapse of the 21st century. While several international bailouts were brokered to save the economy, the sheer size and depth of the problem soon became apparent —Iceland's economy was too big to bail. An oversized and bankrupt banking system was allowed to fail.

The short-term effect seemed disastrous — the stock market collapsed 95 percent, and Iceland's currency (the krona) fell 60 percent against the euro. Two positive effects resulted. First, a decimated exchange rate returned the country to sustainability — a large trade deficit has turned around into a growing surplus. Second, the effective bankruptcy caused the Icelandic government to reduce expenditures drastically. Instead of continuing to fuel an unsustainable situation, the Icelanders tightened their belts and turned fiscal deficits into surpluses."

This is why the US should default on its debt sooner instead of later: so we can begin a shorter recovery process sooner instead of a longer one later. Praise for Tragedy of the Euro.

Milton Friedman was wrong about central banks and monetary policy, and if he was alive today, he would admit his errors. But since he's dead, Paul Krugman uses him as a tool to espouse his Keynesian doctrine. Krugman is not just wrong. He's not just a partisan. He's not just a fool. He's a ghoul too.

EDUCATION:

Headline reads:

"Healthier school lunches will cost more, but who will pay?"

It's a trick question. School lunches will become more unhealthy and expensive because the feds centralized authority over them.

GLOBAL WARMING:

If an environmentalist sh*** in the woods, lights her used toilet paper on fire and starts the biggest forest fire in Israeli history, will the global warming frauds blame it on global warming? Of course.

POLICE STATE:

On web posting instructing Americans on how to spy on each other, Homeland Security identifies "controversial issues being discussed" as a sign a group of people might be a terrorist.

It looks like the Patriot Act will be quietly renewed.

POLITICS:

So now we hear the assassin was a leftist. I'm not buying that either. There's no way it's that simple. At least these charges come from some analysis. The only accurate, simple description of him was he is a whacko. Doctor's now confident in Congresswoman's recovery. That's excellent news.

MISC:

Scientists discover life trapped inside 34,000 year old salt crystals.