Nightmare On Pennsylvania Avenue

By: Jeff Berwick | Tue, Aug 30, 2011
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I stopped reading fiction books or watching fiction movies a long time ago. I even stopped reading mock-news comedy sites like theonion.com. Why? Because none of them can compare to the insanity of real life.

Take this one, as example. The prince of peace, Barack Obama, nominated a new man to head the "White House Council of Economic Advisors" on Monday.

I have to admit, for a split second I almost leapt off my balcony to the beach 29 floors below! I thought it said that Krugman - Paul Krugman - had been nominated to be Barack Obama's top financial advisor!

Considering that Paul Krugman has been lobbying for war to get the economy working and his latest scheme that he drew up in his lab was to fake an alien attack (see "Krugman's New Extraterrestial Economic Plan For America") so we could put everyone back to work building light sabers and plasma rays. Then, after everyone had spent a few years focusing all their efforts on that he would announce that it was all just a grand ruse to "get the economy going". In his mind, we'd all fawn over him for coming up with such a great way to get us all back to work! Sure, we spent two years destroying incalculable human and natural resources. But, hey, that's better than not having anything to do, right?

Thankfully, I had misread and it wasn't Paul Krugman.


Alan "Freddy" Krueger

It was Alan Krueger... a man who has been working in the White House for two years and who has his doctorate in Keynesian Economics from Harvard University.

I knew, just from reading that he had his PhD from Harvard that he would be a moron. That's just a given with those "credentials".

I strapped myself in (to ensure I wouldn't throw myself off my balcony) and began reading his list of "accomplishments".

It starts by saying that he wrote a book whose mission was to convince people that raising the minimum wage does not increase unemployment.

Thank goodness I was strapped in tight! Are you kidding, Krueger? I can refute your entire book in one sentence and there is no rational thing you can say in response. Ready?

If that is true then raise the minimum wage to $1,000/hour and tell me how that will not result in unemployment rising to 99.5% or higher. At that rate, only people currently making more than $1,000/hour would be employable.

I mean, really. This is Obama's new senior advisor?? This will probably shock him then, but removing the minimum wage completely would result in full employment. Heck, I'd even hire Alan Krueger to wash my car all day long for $0.15/hour. That may be something he is actually good at, too.

But, maybe he has accomplished something in his career... let's read on.

The next big thing he is known for is being "instrumental in the cash-for-clunkers program".

Yes, what a stroke of genius that was! Let's offer heavily indebted Americans incentives to trade in their perfectly good, working used cars and to go further into debt to buy new cars. Then, let's take the used cars and destroy them. Yes, good, working cars... throw them on a scrap heap. Net result? Americans are more indebted and hundreds of thousands of good cars are destroyed (causing the price of used cars to rise 20% btw).

Sheer genius, Alan!

What's your next masterpiece? Cash for Houses? Anyone with an older house that they have paid off can call the government and have them come and burn it to the ground and then offer them incentives to buy a new, much more expensive house that they can't afford! This keynesian economics stuff is easy! I'm surprised anyone even has to go to Harvard for this. Just pick something... anything. Destroy it and have the government write you a cheque for doing so!

Paul "Mad Man" Krugman

The U.S.S.R. failed 20 years ago this month. It failed because it made the incorrect assumption that the economy can be managed from the top down by a bunch of propellerheads with mathematical equations.

Economists and thinkers like Ludwig von Mises and Murray Rothbard, who had stated that socialism and economic central planning would not work were vindicated at that time. You can see a speech by Murray Rothbard just days after the fall of the Soviet Union here:

 

 

Mises, Rothbard and the Austrian school of economics was right. It continues to be right and will always continue to be right. However, politicians and the public in general don't like the message. The message is that there is no free lunch. Now, the lure of trying to centrally manage an economy has made a great comeback. This time, in the U.S.S.A.

This nomination of Alan "Freddy" Krueger only ensures that the Nightmare on Pennsylvania Avenue will continue on to the bitter end.

Our holdings in real assets, gold, silver, precious metals stocks and internationalizing our assets, especially outside the US, continues to be the most rational of choices.

 


 

Jeff Berwick

Author: Jeff Berwick

Jeff Berwick
Chief Editor
The Dollar Vigilante

Jeff Berwick

Anarcho-Capitalist. Libertarian. Freedom fighter against mankind's two biggest enemies, the State and the Central Banks. Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast. Jeff is a prominent speaker at many of the world's freedom, investment and gold conferences as well as regularly in the media including CNBC, CNN and Fox Business.

Jeff's background in the financial markets dates back to his founding of Canada's largest financial website, Stockhouse.com, in 1994. In the late '90s the company expanded worldwide into 8 different countries and had 250 employees and a market capitalization of $240 million USD at the peak of the "tech bubble". To this day more than a million investors use Stockhouse.com for investment information every month.

Jeff was the CEO from 1994 until 2002 when he sold the company and still continued on as a director afterwards until 2007. Afterwards, Berwick went forth to live on and travel the world by sailboat but after one year of sailing his boat sank in a storm off the coast of El Salvador. After being saved clinging to his surfboard with nothing but a pair of surfing shorts left of all his material possessions he decided to "live nowhere" and travel the world as spontaneously as possible with one overarching goal: See and understand the world with his own eyes, not through the lens of the media.

He went on to visit nearly 100 countries over four years and did and saw things that no education could ever teach. He met and spoke with a plethora of amazing people, from self-made billionaires to some of the brightest minds in finance - as well as entrepreneurs from a broad range of backgrounds and locations from tech companies in southern China to resource developers in Mongolia, Thailand, Russia and Chile. He also read everything he could find on how the world really works... politically and financially. A pursuit he continues to this day.

He expatriated, long ago from his country of birth, Canada, and considers himself a citizen of the world. He has lived in numerous locales since including Los Angeles, Hong Kong, Bangkok and currently lives in Acapulco, Mexico and is building a home in Cafayate, Argentina. In essence, everything he writes about here for TDV he has done or is doing.

As well, during his travels, both real and virtual (through the internet), he met some amazing people who have a similar shared vision of what is currently going on in the world and enticed them to come aboard TDV and provide their own brand of analysis.

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