..But the proof that these were unsustainable bubbles fostered by the state rather than real growth and prosperity arising from the free market became acutely evident after the turn of the century. Then another round of Greenspan bubble finance and the George W. Bush fiscal profligacy converged in a temporary spree of phony prosperity: the domestic consumption boom and the real estate bubble. Yet now that these have gone resoundingly bust, the data starkly reveal that the nation’s economic fundamentals have relentlessly deteriorated for more than a decade.
Long-term investment has grown by less than 1 percent annually since 2000 and the nonfarm payroll count has hardly increased at all for 12 years. Likewise, the real incomes of the middle class have fallen back to 1996 levels–even as the American economy has tumbled into a frightful debt to the rest of the world. In short, the American economy did not falter due to a mysterious “contagion” in September 2008. It had been heading for a crash landing for the better part of three decades. — David Stockman in The Great Deformation (2013)
Monetary Mayhem Lectures
All Times are Central Standard Time or 1 hour behind Eastern (New York) Time, but double-check to be sure. Go to www.mises.org
Watch These AERC Lectures Live,
Wednesday, March 20th, 2013
1:30 – 2:30 p.m. The F.A. Hayek Memorial Lecture sponsored by Toby Baxendale (Austrian Hedge Fund Manager). Nikolay Gertchev, European Commission Brussels “From Monetary Nationalism to Monetary Imperialism: Fractional-Reserve Banking and the Inter-Government Cooperation”
4:30 – 5:30 p.m. The Murray N. Rothbard Memorial Lecture sponsored by Helio Beltrao Brendan Brown Mitsubishi UFJ Securities “The Global Curse of the Federal Reserve: How Its Monetary Virus Stimulates Destructive Waves of Irrational Exuberance and Depression”
The Ultimate Effects of the Fed’s Policies
How the Federal Reserve’s policies are destroying social trust (must read) here:http://www.zerohedge.com/news/2013-03-11/dylan-grice-explains-how-crackpot-central-bankers-are-destroying-human-society
and…..destroying wealth: “Contrary to popular thinking, loose monetary policy, which leads to a misallocation of resources, weakens the economy’s ability to generate final goods and services, i.e., real wealth.
This means that loose monetary policy not only cannot provide support to the economy, but on the contrary undermines the foundations for economic growth.
The so-called recovery that Bernanke and most commentators are referring to is nothing more than the revival of various unproductive or bubble activities, which in a true free market environment wouldn’t emerge in the first place.” More…http://www.mises.org/daily/6385/Should-Bernanke-Park-the-Helicopter
A traditional economist’s view: Why so gloomy? All is well.
http://scottgrannis.blogspot.com/2013/03/the-fed-is-not-printing-money.html (True, but no mention of the massive distortions caused by the Fed’s zero interest rate policies or don’t prices mean anything?)
PS: I will tackle the three valuations this weekend. Right now I am too busy researching mining stocks.
Be careful: http://greenbackd.com/2013/03/21/sp-500-operating-eps-estimates-are-too-optimistic-and-the-market-is-expensive/
HAVE A GREAT WEEKEND!
Fireside chat with Buffett on payment systems: http://vimeo.com/62209937
Van den Berg’s Investment outlook: http://centman.com/insights/2013/03/arnold-van-den-berg-speaks-at-the-texpers-annual-conference/