Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: hubris

Moody’s Revelation: “Managed” Economies fail

This article was published by The McAlvany Intelligence Advisor on Friday, May 26, 2017:  

Perhaps without knowing it, Moody’s downgrade of China one full notch on Wednesday exposed the fallacy of managed economies: that government bureaucrats with fancy degrees from the University of Chicago, Harvard, or Yale know what they’re doing. One of those fallacies that have been promoted for years came from Yale grad Arthur Laffer as far back as the Reagan administration. On the surface it sounds eminently logical: cut taxes and the economy will grow. The fallacy is knowing just how much to cut, whose to cut, when to cut, and how long to cut.

The Laffer Curve undergirds the whole idea of “supply side economics” –

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Disgruntled Professor Quits, Using Concealed Carry in His Classroom as His Excuse

This article was published by The McAlvany Intelligence Advisor on Friday, May 12, 2017:

English: Holster for Glock pistol Svenska: Höl...

In a fit of pique, KU associate professor Jacob Dorman decided to burn his bridges behind him when he left the faculty last week. Instead of packing up in the middle of the night, he chose instead to have his resignation letter published in the Topeka Capital-Journal. It was an infantile move that he is likely to regret for years to come.

He used Kansas’ new constitutional carry freedom as cover:

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OPEC: A Lesson in Why Cartels Fail

This article was published by The McAlvany Intelligence Advisor on Wednesday, March 15, 2017:

OPEC countries

OPEC countries

Every cartel comes together when individual members think they can obtain a greater economic benefit working together than they can alone. Every cartel breaks apart when members think they can do better alone. If a cartel is sanctioned by a government, it becomes a monopoly.

Since 1960, OPEC has largely stayed together with the collusion of governments and Big Oil interests around the world. But the fracking revolution, operating in the free market, is blowing up the model. Specifically,

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Venezuela’s Dictator Fires Head of Central Bank; Inflation at 1,600 Percent

This article appeared online at TheNewAmerican.com on Monday, January 23, 2017:

Nicolas Maduro

Venezuela’s Marxist dictator, Nicolas Maduro (shown), fired the head of his country’s central bank on Friday. Without fanfare or any public statement from either Maduro or his banker, Nelson Merentes, the firing is the latest move by the president to place the blame for the collapse of his country anywhere but where it belongs: on his socialist policies.

For months The New American has tracked the retrogression of a country which was once one of the leading economies in South America to a banana republic where people are starving, sick people are dying for lack of care, and a black market has replaced a once-thriving free economy. Last June, the New York Times was finally forced to admit the cause:

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Venezuela: Some Lessons Must be Learned Over and Over Again

This article was published by The McAlvany Intelligence Advisor on Monday, January 23, 2017:

George Santayana most famously said: “Those who cannot learn from history are doomed to repeat it.” But he wasn’t the only one. Aldous Huxley put it this way: “That men do not learn very much the lessons of history is the most important of all the lessons of history.” Said Samuel Taylor Coleridge: “If men could learn from history, what lessons it might teach us! But passion and party blind our eyes, and the light which experience gives us is a lantern on the stern which shines only on the waves behind.”

There’s a lesson being taught to the hapless and now helpless citizens (shown above) of Venezuela. It’s a lesson so often taught but not learned that one may, with great confidence, predict the final outcome.

On Friday Venezuela’s Marxist dictator, Nicolas Maduro, fired his banker,

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Obama’s Rush to Leave a Legacy Leaves a Mess Instead

This article appeared online at TheNewAmerican.com on Tuesday, January 17, 2017:

English: Barack Obama delivers a speech at the...

Goodbye

In Greek mythology Augeas is best known for his stables, which housed 3,000 head of cattle. The stables hadn’t been cleaned for 30 years, and Heracles’ job — to keep working until he had cleaned the stables entirely — was deemed impossible, as the cattle were immortal.

Happily President-elect Donald Trump’s challenge to undo egregious Obama administration actions isn’t as overwhelming as Heracles’. Consider Obama’s parting gift of

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Trump Meets With Former Banker Who Wants to End the Fed

This article appeared online at TheNewAmerican.com on Tuesday, November 29, 2016: 

John Allison BB&T

John Allison

Donald Trump met with former banker John Allison on Monday in a meeting that was largely ignored by the mainstream media. It remains unclear whether Allison was being interviewed for the job of secretary of the Treasury or was just giving Trump some advice from a free market perspective.

Either way, it’s a breath of fresh air in an era where statism and excessive hubris (the idea that mere politicians and economists can guide, even stimulate a $20-trillion-dollar economy with monetary policy) has reigned for decades.

Right after graduating Phi Beta Kappa from the University of North Carolina in 1971,

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Ethanol Mandates Mean Big Profits for Big Oil

This article appeared online at TheNewAmerican.com on Friday, October 28, 2016:  

When the Energy Independence and Security Act of 2007 was signed into law by then-President George W. Bush, it was well-intended: It would increase America’s oil independence and reduce dependence on foreign oil, it would produce cleaner air, and it would help farmers.

The Act required refiners to add ethanol to every gallon of gasoline they produced. If a refiner decided it couldn’t (too costly) or wouldn’t (internal decision) do so, it would be required to

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John B. Taylor: Perfect Example of Hubris-Lathered Economist Who Thinks He Can Steer the Economy

This was article was published by The McAlvany Intelligence Advisor on Wednesday, September 16, 2015:  

John B. Taylor, economics professor at Stanford University (where he got his PhD), thinks the massive, highly complex U.S. economy, generating nearly $20 trillion of goods and services every year, can be fine-tuned with rules and policies. Further, if those rules can be implemented clearly, the economy will do even better. He thinks of the economy as one gigantic organism with a mind and purpose of its own. That’s why he likes Fed Chair Janet Yellen:

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“Kafkaesque” Ruling from FCC Fines AT&T $100 Million

This article was published by The McAlvany Intelligence Advisor on Friday, June 19, 2015: 

Franz Kafka

Franz Kafka, author of the chilling novel, The Trial, in 1926

 

In The Trial, Franz Kafka told the story of a man arrested and prosecuted by a remote, inaccessible authority, with the nature of his crime revealed neither to him nor to the reader. Left unfinished at his death, a ghostwriter completed the novel, which became one of Kafka’s best known and most frightening novels.

In it, Kafka described perfectly the ruling announced on Wednesday by the hidden anonymous commissars of the Federal Communications Commission:

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“He Who Lives in a Glass House, Shouldn’t”

This article first appeared at The McAlvany Intelligence Advisor on Wednesday, May 13, 2015:

English: U.S. Congressman

George Nethercutt

 

According to his own Wikipedia page, George Nethercutt touts himself as a “conservative.” After all, in the 1994 Republican landslide that gave the Republican Party control of the House for the first time in 40 years, Nethercutt replaced Speaker of the House Tom Foley. It was close: just 4,000 votes out of more than 215,000 cast. But that was enough.

In truth that meant that Nethercutt won by 2,000 votes, as that was the number of votes to be changed to allow Foley to keep his seat. Nethercutt’s promise that he would leave after three terms likely made the difference. After all, Foley had been representing Washington for 30 years as a hard left liberal Democrat, and voters had finally had a bellyful of him.

Unfortunately Nethercutt was in Washington, DC, long enough to drink the Kool-Aid of excessive hubris and self-importance, and when it came time for him to honor his promise,

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Will this be OPEC’s Final Failed Gamble?

This article first appeared at The McAlvany Intelligence Advisor on Wednesday, February 18, 2015: 

Cover of "The Prize: The Epic Quest for O...

Six years ago historian Daniel Yergin wrote in The Prize about OPEC’s failed gamble in 1986. The cartel tried to secure its preeminent place among the world’s oil producers by forcing crude oil prices down:

Was the price now poised for a great fall? Most of the exporters [primarily OPEC] thought so, but they expected no more than a drop [from more than $30 a barrel] to $18 or $20 a barrel, below which, they thought, production … would not be economical….

 

Actually, operating costs – the cash costs to extract oil – were only $6 per barrel [at the time], so there would be no reason to shut down production at any price above that.

The cartel was hoping to squeeze out marginal producers, which would result in cuts in supply, allowing it to raise prices at will. It didn’t work then, and it isn’t working now. The Saudis apparently suffer from an appalling lack of understanding about how the free market works.

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Food Police Targeting Sugar Just in Time for Halloween

This article first appeared at TheNewAmerican.com on Friday, October 31, 2014:

Joe Helm’s exposé on the food police’s next target — candy — enraged Fred Smith, a self-admitted sugarholic who saw immediately what the food police are after: control. Helms, for his article in the October 24 Washington Post, tracked down the chief of the food police, Margo Wootan (pictured above), director of nutrition policy at the Center for Science in the Public Interest (CSPI), who told him:

Governments are deciding that it really doesn’t make sense for them to have obesity campaigns, which are often high-profile and a big priority, and then you walk into the health department or any public building and they have these vending machines that are chock-full of candy and soda and chips.

Being fully persuaded that government has the right, and the power, to do something about this awful contradiction — people ignoring government’s plea to do the right thing and stay away from fatty foods — Wootan believes government should use force to get its way, rather than persuasion: 

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OPEC’s Hegemony is over

This article was first published at The McAlvany Intelligence Advisor on Monday, October 27, 2014:

English: Saudi Arabia

Saudi Arabia

Tim Treadgold, a Forbes contributor who watches the world’s energy markets, decided to break the journalist’s unspoken rule: never forecast the demise of an individual (or an institution) until he is holding the coroner’s report (or bankruptcy judgment) in his hand:

At grave risk of committing [that] cardinal sin … this time it might be different because OPEC is steadily losing control of the oil market….

The irony, he said, was staggering:

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Chinese Economist at IMF warns of Global Housing Bubble

Board of Governors - International Monetary Fu...

Board of Governors – International Monetary Fund (IMF) (Photo credit: Wikipedia)

The false assumption that regulators can be safely counted upon to steer economies – local, national or global – to full employment with minimal inflation while avoiding booms and busts was unknowingly exposed in the latest yelp from the Deputy Managing Director of the International Monetary Fund (IMF), Zhu Min. In Chinese, his name means “people rule” or “democracy” but his ideology is firmly rooted in the Keynesian fallacy that economies can be successfully managed by experts without assistance or input from the common folk.

In announcing that the IMF has launched a new website, Global Housing Watch, Min delights in thinking that the world’s economy can be driven by looking through the rear view mirror. He said:

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Connecticut’s Governor as King Canute

Seal of the Governor of Connecticut.

Seal of the Governor of Connecticut. (Photo credit: Wikipedia)

This article first appeared at the McAlvany Intelligence Advisor on Monday, March 31, 2014:

King Canute appears to have been reincarnated in the body of Connecticut Governor Dannel Malloy. On Thursday, the governor announced, with great fanfare, that by raising the state’s minimum wage to $10.10 an hour, he will be simultaneously raising people out of poverty, restoring business confidence, and bringing days of wine and roses back to the Nutmeg State:

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Is the Dingell Dynasty in the House Over?

This article first appeared at The McAlvany Intelligence Advisor on Friday, March 7, 2014:

The encomiums poured in following the announcement by John Dingell (D-Mich.) last week that he wouldn’t be seeking a 30th term in the House. Tweeted Gary Peters (D-Mich.): “Today we honor the service and legacy of Michigan’s greatest Congressman. His accomplishments will never be forgotten.” Such praise would reasonably be expected from a hard-left progressive like Peters who

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Age and Acrimony End Dingell Dynasty in the House

Born in Colorado Springs in 1926, John Dingell (D-Mich.) took over from his father as a Representative from Michigan in 1955 and has never stopped promoting his father’s progressive agenda. On Monday, February 24th, Dingell announced that he would not seek a 30th term partly due to

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Argentina’s economy is cratering, again

While Wall Street declined by 3 percent over global growth concerns last week, few were noting or even interested in the 11 percent decline in the Merval, Argentina’s stock market index. It hit a high of 5,970 on Tuesday, January 21, the day before the Argentina government devalued its currency, and closed at 5,337 on Monday. The peso itself has been in decline far longer, having lost nearly

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Half of Female Marines Fail Pull-up Test, reigniting Military Gender Issue

The brief announcement on the U. S. Marine Corps social networking site was enough to set off another round in the gender wars: “Corps postpones pull-ups for women & female Marines…”

The reason was simple: despite being given more than a year’s warning that pull-ups would be the only option testing females’ upper body strength in the Corps’ Physical Fitness Test (PFT) starting on January 1, only 45 percent of those testing at Paris Island, S.C., met the bare of minimum of

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.