The term Political Economy has been defined by Dr. Paul M. Johnson of Auburn University as:
“A branch of the social sciences that takes as its principal subject of study the interrelationships between political and economic institutions and processes. That is, political economists are interested in analyzing and explaining the ways in which various sorts of government affect the allocation of scarce resources in society through their laws and policies as well as the ways in which the nature of the economic system and the behavior of people acting on their economic interests affects the form of government and the kinds of laws and policies that get made.”
Caveat: Based on that definition, arguably all economies are Political Economies. While we often take fact-based contrary positions in this web, we have no intention to write with a point of view supporting Republicans or Democrats. This Democrat or that Republican. For Heaven’s Sake, these people are all politicians. Throughout history people have always distrusted politicians, and more often than not for good reason. What ego must be present to stand up and say Vote for Me, I’ll do my Best for you. We understand, we’re a writer, but, we do the work sitting down, and only offer our work to you to enable your best judgment from an informed point of view.
Our overriding intent on this web is to support and inform Americans, particularly here, residential investors, by bringing forward news, information, interpretation and opinion based on both domestic and GeoPolitical facts and economies. We support residential property owners – middle-class Americans – to do well by doing good. We believe, and evidence abounds that residential investors receive short shrift by both politicians and economic policy makers who actually control our lives; moreover the future for our families. We strongly believe that the average taxpayer, the middleclass American, is being set up for a fall. Witness: the 1990s Savings and Loan Debacle, arguably a witting fraud ultimately paid for by the American Taxpayer. Witness: the Dot.com Mania in which highly regarded major Wall Street Investment Bankers were recommending to buy stocks that they were privately calling “dogs” in personal email. When will we ever learn that there aren’t just a few rotten apples? The barrel is tainted by current business practice that has largely adopted an unethical “Who Cares” attitude.
On the other hand, with intent and aforethought we are seriously trying to bring information to individuals so that they can make informed decisions. It’s really not scary to make your own decisions. A cardinal rule of investing is to Sell High and buy low. Moreover, the wise investor goes against the grain, leaves a market when the sheep are just about “all in.”
Consequently, the back story or deeper pervasive theme and direct message of this web site is not a pleasant pill to swallow. Keep an open mind. We were Shocked and Awed as we dug deeper into the ways and wiles of Wall Street, Structured Finance, and, moreover, the ethical conduct of Alan Greenspan. If we were lied to about reasons for a war (this has been done throughout recorded history, nothing new there), is it a stretch – unthinkable, traitorous – to believe they would lie to us about money. Hardly!!! Truth is the only path for a Patriot. (Yah yah yah.) We’ll poke some fun at ourselves, but, remember, it’s not really pleasant to bring information to people that goes against the grain, what they have in good faith believed. As they say, Someone’s Gotta Do It. And, well, we like it. Honest work.
So, yes, we are a vulnerable messenger in that the news we bring is not particularly pleasant at this time in modern history. We have argued in this web that overall conditions today, are eerily similar to many similar conditions that existed in 1927-29, just before the stock market crash and the subsequent Great Depression. We are talking for the most part about numbers that show an extremely unbalanced economy. And, moreover, our job is an uphill struggle against both the popular and financial press.
Regarding politics, the political economy, please, don’t be angry with us because we have little respect for the fiscal policies of the current administration. In fact we’ve voted both sides of the political spectrum in the past as we grew. We’re still and always growing, and hope you are too!
Believe us, the Clinton Administration was hand-maiden to the Federal Reserve System (and vice-versa), as much as the current Administration, and we argue strongly that both (and previous) Administrations have and continue to consciously act in ways that do not benefit the American People, by not being forthcoming, not presenting the truth. If they have a partner in such complicit behavior, it’s name is: Wall Street, whose intentions are fairly obvious for all to see. Make money, and let the American people take the hind most. That is exactly what is occurring and we will continue to write about it in this web to alert all Americans, and particular to warn the residential investor to get out of harm’s way. Remember, Wall Street, financial institutions made 30% of all the profit in Corporate American last year.
Rather than the facilitating role that Finance has played throughout history, today Finance leads the way. Cheap mortgages and appreciated home values may appear to be your friends. Trust us, Wall Street does not consider you their friends, they consider you fodder. The taxpayer always pays when Financial schemes blow up, as they always do, throughout the History of Civilization. Care to buy some Tulip futures?
So it isn’t all about current Administration Policies. Bill Clinton was Impeached by Congress. Under Clinton certain definitions and changes were made to reporting criteria in the Department of Labor statistics that are far from reality regarding actual job reporting in our nation; and significantly worse is woefully inaccurate inflation measurement designed to enable the game, the charade, ultimately the Fraud to keep on going and manipulate the American people whose currency is losing value significantly due to Systemic Inflation. We’ve all read that Mr. Greenspan’s comments and pronouncements were impenetrable. Difficult to interpret. That was by design, not accident. If the American People really understood the financial conditions of our Economy, they wouldn’t stand for it.
The intent is to keep people in the dark, and, confident that everything is OK. Well it isn’t – it’s a Ponzi Game. Don’t be the last one in. Don’t be the Greater Fool.
Yet, as we re-consider the Clinton years, there was a budget surplus and manufacturing jobs had not yet fled for foreign shores. NAFTA and CAFTA, and other major trade initiatives were implemented, which did as Ross Perot successfully predicted, created a Great Sucking Sound as jobs fled off-shore and to the South. All of this really got going in the name of Globalization over the last ten years. Lately Wall Street has presented (with a straight face) that we’ve had a “Jobless Recovery.” There is no such thing. A jobless recovery is an oxymoron. Meaning in this case the two words have opposite meanings. And, a false conclusion. It’s true we’re relatively: Jobless. But, the so-called: Recovery, has been created with smoke and mirrors and reportage of its success is not only cynical and inaccurate, it qualifies as: Big Lie.
Globalization might be simply understood by the fact that the Federal Reserve System created so much money, so much liquidity that U.S. economic forces (Wall Street) were empowered and enabled to invest abroad, simply because there was so much money to invest. In other words multi-multi-billions of U.S. dollars were created and invested in productive investment. Unfortunately, the main beneficiaries were the Chinese People and Government, which now loans dollars back to us to keep our government operating. The U.S. has been reduced to being the largest debtor nation in the World, and, even more humiliatingly, we borrow money from a Communist Government to keep operating. We don’t like it, we don’t think you like it, and, moreover we believe it is unsafe for the health of our American families.
Worse, is that China is not our friend, and keeps its currency artificially pegged low against the dollar to make their goods cheap for American purchasing. This historically unprecedented imbalance is building to a head. The end result is a weakening dollar and higher (oil driven) inflation ahead. At some point this will cause the Chinese to begin to shift loans they have made to us (in the form of their purchasing liquid short-term U.S. Treasuries they can easily dump, even at a loss if necessary) to other asset classes – abroad – not here. The meteoric and likely continuing increase in the price of gold is some strong proof in this regard, some proof that this is happening today.
Further, their unrelenting pursuit of oil and energy related opportunities in Venezuela, Canada, Africa, former Russian states (the ‘Stans), and more lately Iran, is clear writing on the wall. They intend to out compete us for these future energy supplies. We cannot put the Genie back in the bottle. We cannot bomb our way to energy independence, or, even cheap energy. What we’ve gained is a never-ending War of Terrorism against Terrorists who wish us to leave their nations and stop taking their resources. Can you really blame them? They can never stop defending the Homeland. Sound Familiar. Sounds to us like George Orwell’s seminal work: 1984.
Regarding oil, energy, we must simply use less petroleum based products, and, well, work to giving the planet a wee bit of a breather. Do more with less. Innovation and technology can take us there.
There is an old expression: “Don’t go against the Fed.”
There is yet an older expression. “Don’t go against Mother Nature.”
If the United States, our beloved America is to be a, The World Leader, we must carry a big stick – OK/Fine/Good – but, like any legitimate and well-intentioned Big Brother, we must first lead our lives by setting a good example. To do less, is to perpetrate same ol’, same ol’. Are we not smarter than that now?
Beyond such very unpleasant interpretation, even lofty (unrealistic?) ideals, the Bottom Line Point of this writing is that we resent any official or non-official U.S. Government Fiscal Policies and other Monetary Policies that hold that full American employment is not important. We resent any policies which hurt the American People. Do you have seniors in your family, or that you know that are absolutely flummoxed by the new Medicare Prescription Drug laws. Why is it so difficult to understand? Because it’s designed to be difficult to understand. Does this show respect to our seniors, to the Greatest Generation. No! Reminds us of a lack of body armor in War. How can they do this? Rather – why – would they do this? To put it most mildly, they’re not very nice people, and do not deserve your respect over those that would bring you the truth.
We mentioned that U.S. productive investment funds are invested abroad. Frankly, we need money invested at home as productive investment. As we’ve said before, we need to re-industrialize our nation, and reduce our reliance on energy. As we see it, the simplest way to do that is to build a National High Speed Rail Transit System, to move the goods and people and create employment throughout the nation; and, dramatically reduce our need for energy. This will enable us, on a cost productive basis, to extend the National Rail System by building thousands of miles of inter-city and county light rail systems. To help fund the entire System, we will be able to export all of the above (for profit) to the Americas, both North and South. Build the world’s state-of-the-art transportation system and encourage our closest neighbors to become our best trading partners. Nothing wrong with that, and it’s not political at all. If you like that one – stick with us.
So, when we criticize current politicians (and particularly unethical and illegal activity) we’re crying out for truth to be told; and, for Americans to be treated as adults who are given the actual facts and information that will enable us to be legitimately informed regarding policy and actions that directly effect our current and further positions.
As you know (when you read through this web site), based on the evidence we discover, we argue that we are headed for a financial Armageddon, and that because you won’t read the whole truth in the popular press, in the financial journals, or see it on Tout-TV, we bring the facts forward here in order to enable you to make decisions for the safety of your families. While we’re getting to know each other, and, if we make you angry (attempt to wake you up to what is likely coming), we expect that we can’t be best friends for awhile. As Messengers we expect to die for our efforts. That’s what a Patriot expects? Right? But, they do it anyway. Right? In fact, isn’t that what real friends are for? To Tell The Truth. No matter how unpleasant and painful.
At some point, if you begin to realize that we might stand together, and you want to do business together based, first, on trust, and, full disclosure, we hope you’ll be in touch. There will be many opportunities to emerge from a seriously down market. All the more if it’s actually a down and out market. A Boom (that part has occured) and Bust market (that part is rapidly oncoming).
There will be tragedies and victories. But it is never all Doom and Gloom. Working together we can be winners.
Our contact info is on the home page of this web on the left hand side. We’re looking forward to hearing from you. We can argue about politics for fun, but, work together to face and understand economic realities; and, oncoming real estate opportunities that will arise from the great problems existent today. Be in touch – ya hear?
Whew!!!
With all that said, and if you’re still with us here, we’ll tell you, we’re nerdy enough to love corny jokes and prose. So ... in our Week In Review highly ironic articles under (we believe) an appropriate title: Real Estate Game Theory, we try to keep things light with humor and tongue-so-firmly-in-cheek (not in check, heck no) that it threatens to pierce our cheek. (We’ve plenty of cheek.)
Count on it, we'll call out politicians who don't level with the American People. If the Ponderous Slow-Speaker was in office we'd Gore Al. But, he's not, so we go after the usual suspects, the ones who hold power today in our Political Economy. We mean, if you're indicted for a crime, don't expect us to be silent in order to keep some of our Good Friend Republicans in Denial (we realized many are realizing what's being done in their name, and increasingly without their support, huzzah) from being mad with us. The Pendulm Swing Theory of History. We've always been into that. Its kind of a dream state where you must Suspend Disbelief and hope things will balance out. Often they do. More often these days, it's a kind of Religious Faith thing, wherein, you can't do much about it, so you Keep the Faith.
After all, we’re trying to – doing our best to – explain complicated and technical material and data. Attemping to make it comprehensible. Our writing style is based on having a light heart and a sense of humor -- that's our path to the Truth. Besides, if it weren’t for laughin’ – we might be cryin’. Don’tcha know? Simone. Verdad. Siemper.
