What is Happening In Our International Political Economy?

We are living through some very interesting days, particularly when it comes to the rapidly changing landscape of the international political economy.


For some pretty cool picks on what is happening in the International Political Economy, check out this link:

www.globalnewspost.com


posted by Ruel Haymond of Project Liberty

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Are We Headed for another Great Depression?

Posted by Dean Morgan of Project Liberty


Some say we are, so at the end of this message I will discuss what you can do to prepare for it.

But first, what I am about to tell you may shock you. In short:

1. Government intervention made the Great Depression worse, not better. Depending on who’s elected President, the same could happen again.

2. Too much government intervention, not a lack of regulation, caused our crisis.

3. The government is to blame, not irresponsible borrowers or greedy executives.

4. California is next in line for a government bail out.

5. Things will get much worse because of a game of financial chicken.


While we aren’t anywhere near another Depression (25% unemployment then vs. 6% now), some experts say a Depression is actually possible, especially if government makes the same mistakes it made trying to fix the Great Depression which started in 1929. As a result, the stock market didn’t recover to it’s pre-Depression level until 1954!


***Government Regulation Made the Depression Worse, Not Better***

Contrary to the popular belief that President Roosevelt’s big government programs caused a recovery, the Depression actually lasted much longer than it should have because President Roosevelt raised taxes and many businesses had to shut down leading to more unemployment.


***Too Much Government Intervention CAUSED our Current Crisis!!***

Will the Government save us this time? Don’t count on it. You simply cannot legislate a recovery. In fact, while many are calling for more regulations, if history is any indication, government intervention is likely to make matters WORSE.

And more to the point, the current financial crisis was actually caused by TOO MUCH REGUATION, not a lack thereof like most people assume. Here’s why:

Most of you know that lots of bad mortgages owned by Freddie Mac and Fannie May and other banks and brokerage firms is why we have a credit crisis. But exactly WHO is to blame?

DON’T BLAME THE BORROWERS: Sure, people shouldn’t borrow beyond their means, but let’s be real. When someone hands people free money for a house, car and anything and everything else, people will simply take it! It’s human nature.

DON’T BLAME GREEDY WALL STREET EXECS: Yeah, sure they ARE greedy, but greed is an unavoidable in a capitalist society. Fear and greed drive free markets, and always will. The FBI is investigating some firms, and they might find a few instances of fraud, but the fact remains that if you allow people to make easy money without breaking the law, they will!

DO BLAME THE GOVERNMENT!!: Not only was what the wall street companies doing legal, but the government encouraged it! Even worse, some in congress prevented attempts by those who saw the writing on the wall to pull the reigns.

Yes, blame the Government, because well-intentioned politicians, starting with Bill Clinton who enacted some low income lending policies, FORCED Fannie & Freddie to increase their portfolios of sub prime debt to unprecedented levels so that poor people could own homes.

And to ensure banks were loaning to people who couldn’t afford to repay the loans, a liberal group called ACORN, funded by Congressional Democrats, went around suing banks that refused to make what they called “financially irresponsible” loans.

In 2004 the Bush administration sounded the alarm and proposed legislative changes to reel in Freddie and Fannie that were voted down strictly along party lines in the Congress. In 2005 Josh McCain made another attempt, but the reform never made it out of the Democratic controlled committee to the Senate floor for a vote.

To ensure these bills would never pass, Fannie and Freddie spent hundreds of millions of dollars on lobbyists to ensure they could keep loaning to everyone and anyone. Senator Chris Dodd (D) Chairman of the Senate Finance Committee received the most campaign contributions of anyone in Congress throughout his many years. Barak Obama is #2 on the donation list after only 3 years in the Senate.

Here you can watch a bunch of politicians in one party saying Fannie & Freddie are just fine, while others try to sound the alarm unsuccessfully: http://tinyurl.com/3nkrp7

So, in the name of “fairness”, bad loans were made to people who couldn’t afford them, and the institutions doing the lending “kicked back” money to the politicians who protected them.

You see, it wasn’t a lack of regulation, but government interference in the private market FORCING banks to make bad business decisions that caused this mess.

***California may be Next in the Government Bailout***

Because of the current credit crisis, the State can’t get the loans it needs until tax time. The Governor has sent a letter to US Treasury Secretary Paulson stating that if things don’t improve by the end of the month, the State will need $7 Billion. 15 other states are in the same situation!

***Chicken or Egg? A Nasty Game of Chicken***

Banks are simply unwilling to lend until home prices start to rise. But it’s the availability of credit and loans that cause home prices to rise and fall! So banks and the housing market are playing a nasty game of chicken. And there’s a lot more properties in foreclosure that will get dumped on the market adding to the current supply, with few who can get loans to buy them, even if they qualify.

Unfortunately, the “bail out” bill won’t spark a recovery. It’s simply a plug in a leaking dyke. Even worse, some experts say 1 in 8 jobs are related to housing. Plus people aren’t spending, either because they won’t or they can’t. A new report says 1 in 5 car dealerships are about to fail.

***Prepare Yourself***

So what can you do? First, ensure you have reliable sources of income. Since anyone who has a job is susceptible to a layoff, ensure you have other methods for making money. In a down economy most people get hosed. Only a few prosper.

If you want to prosper too, determine who they are and do what they do!

In that regard, SOCALCIA has scheduled 2 of the most successful money makers in SoCal to speak: Jeff Adams and Bruce Norris. Jeff Adams will be our keynote speaker at this Thursday Oct 9, and Bruce Norris is coming November 20. Learn more at www.socalcia.com


Any other comments related to preparing yourself? Read more!

Bad Business Decision For Apple?

Apple Extends Exclusive Agreement With AT & T

I found this article on localtechwire.com and decided to blog on it because I have been thinking a little about this. I have been wondering why Apple would choose to go exclusive with one carrier in the first place. Any thoughts on why Apple would make this business move given the high demand for the phones? From the article came a few thoughts I agree with (see below).

"If Apple made the iPhone available for AT&T, T-Mobile, and Verizon users, can you imagine the selling frenzy? The company would be at the center of one of the most monumental days in the history of technology. If the iPhone 3G can sell this well on one carrier, I can't imagine how well it would sell on the top three."

”While I don’t think Apple has little faith in its product, I do think this is a poor decision. The iPhone has a chance to become not only the dominant smartphone for the coming years, but also the first real powerhouse in mobile computing. By limiting the device to one carrier, it limits its potential to reach such goals.”

Any other thoughts on this?

Article Source: http://localtechwire.com/business/local_tech_wire/venture/story/3322365/

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Make a Comeback in a Stalled Job Search

Source http://lifehacker.com/5043382/make-a-comeback-in-a-stalled-job-search

Most business people are completely out of tune with this new phenomena of social media and really…how many business executives have time to regularly post on blogs or create a Facebook profile? Although its obvious to see how a blog in conjunction with a good resume is a must for tech professional on the job search, I also think that a blog is a good addition to a business executive’s job search. A blog is a great snapshot of a business executive’s projects, business ventures, and other accomplishments and interests. But who has time to create a mind blowing resume, much less a mind blowing blog? I found a professional blogger who created a blog for me relatively inexpensively and so far it has been an excellent accompaniment to my resume. But…I don’t know if it would actually help, “make a comeback in a stalled job search,” as the post on lifehacker.com indicates. If you are serious about a blog, use a professional blogger (person who blogs !) that has experience creating blogs. Particularly if you are considering a blog or forum for your business, there is a ton of research and traffic driving stuff that goes into it so leave it to pro bloggers.

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Why Generation Y is broke

http://articles.moneycentral.msn.com/Investing/HomeMortgageSavings/WhyGenerationYIsBroke.aspx


This article on MSN Money really caught my eye. The article said that “…some 85% of those aged 25 and older hold a high school diploma, and 27% have a college degree, and is of course, the most technologically sophisticated to date…”

But this same generation has zero financial literacy. Most twenty-somethings can barely manage their own personal finances much less knowing what a balance sheet and/or income statement is. And with the introduction of so many new financial products, young people are even more doomed in this new financial landscape. Should financial literacy be taught in schools so that we don’t raise another generation on debt? Any comments? Read more!

As gas prices go down, so will food, right? No.

Consumers hoping for easing of supercharged inflation likely won’t see it
http://www.msnbc.msn.com/id/26316365/

Corn and soybeans have dropped 24 percent and 17 percent, respectively, in the last two months but food prices have continued to go through the roof. If commodity prices have dropped, why are food costs still going up? This article says that retail prices for cereal, eggs, cheese and meat generally lag by several months or longer. With commodity prices being so high this past year, its no wonder that retail food prices in the U.S. have jumped on average 6 percent this year — triple the normal inflation rate of around 2 percent.

I thought it was just a rumor that food manufacturers have done such things as “shrinking boxes of cereal and bags of potato chips so they can sell less product for the same price.” The article also mentions a factor that is keeping food prices high: Although commodities prices have gone down, they're still well above historical levels. Corn and soybeans have dropped 24 percent and 17 percent, respectively, in the last two months but are still about double where they were two years ago.

Any comments on this supercharged inflation or what the future holds in regard to food prices?

Posted by Corey of Project Liberty

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