Archive for category economics
Back in the Saddle . . . Here we go!
Posted by Unapologetically Right in Uncategorized, Politics, History, Current Events, social issues, Bible, Religion, 2nd Amendment Rights, Gun Rights, Economy, economics on April 17, 2013
It has been a long time since I have posted anything and please accept my apologies for the drought. There certainly has not been a drought of material to discuss! However, as I had mentioned a while back, it became much easier to talk about things on the podcast rather than sit at a computer, writing, after sitting at a computer at work all day. Bottom line is, I just need to find my groove and timing, again.
As I restart my blogging, it seems only natural to briefly ponder what we have witnessed in our world the last 4 months. I know the last things I posted were regarding the complete idiocy and lies of “gun control” after the Newtown tragedy. Unfortunately, this administration can never let a crisis go to waste, so, four months later, we still see them parade the grieving families around to push their socialist agenda of gun control. I have never heard so many absurd, mindless, and baseless cries to do away with the 2nd amendment as I have the last few months. Of course, those cries are always without logic and fact, but they have become even more of a nuisance with more and more of Hollywood standing up and talking out of their back ends (see Jim Carrey and Jay Mohr for starters). Just for fun, Thomas Sowell recently wrote a piece on Townhall.com that made the point of gun control being completely devoid of facts. Read Sowell’s thoughts and do your own research. You can easily see there is not a case for “gun control” other than feeling good about yourself, like you’ve “done something.” In this case, we don’t need to “do something” to pat ourselves on the back and feel good. By politicians “doing something,” my right to defend myself is in jeopardy; therefore, my life is in jeopardy because the politicians choose to act more mindless than a single cell organism. So, this is a situation where we don’t need to force something stupid, but simply understand that evil exists and always will. What we can do is educate ourselves, be prepared to defend ourselves, and deal with the heart issues in which evil resides. If our society was still a God-fearing, moral society, this degeneracy would not be where it is today. I am confident of that. This is simply not a legislative issue and we all know it has nothing to do with crime or guns anyway. It’s all about control.
How’s the economy been lately? Well, the administration would tell us that everything is improving and we’re recovering! However, allow me to offer my standard call of “bullcrap.” You see, while they try to make the blind sheep believe that all is well, we have record numbers of people on food stamps. That’s not the sign of an improving economy, is it? “But wait,” say the liberals, “unemployment went down to 7.6%!” Yes, but not because there are more jobs. That particular number went down because the size of the work force shrunk. We have a record number of people out of the work force . . . over 90 million people! In fact, this is so crappy and we have moved so far “forward” at such a high pace under the Obama regime that, I guess, we’re lapping our own alleged progress. Those figures put us back to 1979 levels! You know, kinda like when everything sucked under Carter? Man, moving “forward” is great, isn’t it? Well, . . . for communists who believe in fake utopias, I guess.
Another crazy thing about our economy recently has seen our Dow at record highs. Yet, we have record numbers of people on food stamps and out of work? Oh, wait, that’s right . . . it’s not really based on anything except the Fed pumping $85 billion per month into the system to falsely prop it up. (Here’s another link on this from Fox Business.) This will come crashing down, folks. This is not sustainable at all.
Besides these big things, we’ve also seen evangelical Christians at the top of a list of groups for our military/government to watch. Similarly, a Powers County, Colorado undersheriff reported that a DHS training seminar taught officers to watch Bible believing Christians carefully. Why would they be considered a threat to the government? Because they believe in America’s Judeo-Christian heritage. They believe in the Bible and take it literally. They disagree with the current direction of the country. Because of these stances of good, Bible believing Christians, this government, apparently, lumps them in with what they call the “sovereign citizen movement.” To my understanding, that is a weird movement of folks who believe they are completely “sovereign,” independent of any government, therefore, are not bound to that government’s laws, taxes, etc. That is nothing like evangelical Christianity.
Of course, just this week, America has been attacked again by some low-life(s) at the Boston marathon and my prayers are with those who lost loved ones and who are injured. I know this kind of thing can always happen because, as previously stated, evil exists. However, can we really say that this administration has made us any safer, or given us better standing in the world? The answer is obvious.
I could go on and on about what’s currently happening (and I will in future posts), but suffice it to say that plenty has transpired since I last posted. Unfortunately, very little of it is good. This country is not necessarily the “shining city on a hill” anymore. We have forsaken our morals, God, and our founding principles. What we endure, now, is simply the consequences of such irresponsibility and defiance toward God. Can we make it better and right this thing? Sure, but it will be a long, hard process. It will take perseverance and resolve like never before. It will require us to encourage each other and stand with each other and shine the light on evil . . . and standing up to evil. We’ve talked about it before and it is clear: we MUST return to God and our founding principles.
I leave you with a moment in our history that probably would never happen today. In David Brog’s book In Defense of Faith, he discusses some of the civil rights movement. He tells of that day in August 1963, when Dr. Martin Luther King, Jr. gave his “I Have a Dream” speech at the Lincoln Memorial. The point is not so much the speech itself as it is in the newspaper reaction the following day. While all the papers praised King and built up what a tremendous and eloquent speech he delivered, one veteran journalist tapped the brakes and spoke a nugget of truth. Writing for the New York Times, James Reston stated that “the first significant test of the Negro march on Washington will come in the churches and synagogues of the country this weekend” (pg. 211). Reston believed one of the major marks of the march was to “demonstrate support for President Kennedy’s landmark civil rights legislation” (pg. 212). However, he also knew that any political success went far beyond politics. Reston went on to say:
It is no good waiting for a political reaction in Congress, for if there is no effective moral reaction out in the country, there will be no effective political reaction here.
This whole movement for equality in American life will have to return to first principles before it will “overcome” anything. And as moral principles preceded and inspired political principles in this country, as the church preceded the Congress, so there will have to be a moral revulsion to the humiliation of the Negro before there can be significant political relief. – from “The First Significant Test of the Freedom March,” New York Times, August 29, 1963
The point? A nation’s politics and leadership is a direct reflection of the moral aptitude of its people. We cannot expect political change for the good until we fix the heart of the country. Only when we become moral, as individuals, will we elect moral leaders and see fruitful results. Returning to the standard of our founding principles and God is our only option of saving this great nation.
Are you still with me?
Dick Morris Talks About Obama’s Tax Plan
Posted by Unapologetically Right in Current Events, economics, Economy, Politics, social issues, Uncategorized on October 2, 2012
I’m working on info for upcoming podcasts and more thoughts for the blog, but in the meantime, here’s another video I thought I’d share. Perhaps you have seen Dick Morris on tv or read his books. He is a conservative commentator and has some interesting things to say about the coming “taxmageddon” under Obama.
Watch this and see what you think . . . I think we need to vote these people out of office on Nov. 6th. Who’s with me?!
It’s Time to Celebrate a New Record!!
Posted by Unapologetically Right in Current Events, economics, Economy, Politics, Uncategorized on August 28, 2012
Oh, no . . . wait a minute. Maybe the celebration should to turn to mourning and another push to vote the Obama administration straight out of here and send them on their way to a utopian communist land they would all love.
According to this short article on Zero Hedge, due to today’s $35,000,000,000 auction on 2 year bonds, America’s debt has, now officially broken the $16 trillion mark! That looks like this: $16,000,000,000,000!!! Check out the article here to see the projected debt at this record-breaking pace.
pb:dv
The US vs. Eurozone: Who Has More Debt?
Posted by Unapologetically Right in Current Events, economics, Economy, Politics, Uncategorized on June 14, 2012
If the Eurozone is on the brink of collapse due to debt and all kinds of economic problems, what does that say about the U.S.? Well, first we must have a clue where our debt ranks and where we are headed. In a chart (below) provided by Senate Budget Committee Republican staff under Ranking Member Jeff Sessions (R-AL), we see that things don’t look so hot for us. Why are we not busting our back ends to get things straightened out?!
If you’d like to read the article, it is here at The Blaze.
pb:dv
“Biggest Economic Shock the World Has Ever Seen”
Posted by Unapologetically Right in Current Events, economics, Economy, Politics, Uncategorized on June 4, 2012
In light of this week’s podcast episode, I had to link this article from The Blaze. It is a short article with a slideshow to scroll through. Please take a moment to check out. This is the work of a former hedgefunder, Raoul Pal. As The Blaze states,
Mr. Pal, who writes for The Global Macro Investor, a research publication intended only for larger institutions, hedge funds, and family offices, believes that a global banking collapse and massive defaults will bring about “the biggest economic shock the world has ever seen” — and there’s nothing we can do to stop it.
Episode 8 of the Podcast Now Available!
Posted by Unapologetically Right in Current Events, economics, Economy, Podcast, Politics, social issues, Uncategorized on June 3, 2012
Episode 8 of the podcast is now up! We’re talking Eurozone economics and where America is in relation. Click here, go to the podcast tab, or, as usual, listen on iTunes and don’t forget to rate and review!
Episode 7 of the Podcast Now Available!
Posted by Unapologetically Right in economics, Podcast, Politics, social issues, Uncategorized on May 20, 2012
You know the drill . . . episode 7 is posted here, or you can click on the “Podcast” tab, or direct yourself over to iTunes, listen, rate, and comment!
Thank you for your continued encouragement, listening, and reading!
Econ 101 with Mike: The Euro Debt Problem
Posted by Unapologetically Right in Current Events, economics, Economy, Politics, Uncategorized on May 14, 2012
Well, another day and another threat to a Euro Zone problem. To everyone out there that actually thinks that the recent elections are the answer to the Euro Zones problems I salute you. Not to say that you are on the right track and to a mission well done, but more so to a farewell good-bye off the cliff of oblivion. Yes, the Euro Zone elections are in and it seems the general population has voted on the side of giving themselves massive spending increasing from the government. They all want the government to spend more money to stimulate the economy. I love that general term…stimulate the economy. In further posts I can explain what that means in real terms, but right now I can explain what that means in real time. Governments around the world are going to need money to do this thing called “stimulate the economy”. So, they are going to hold what is called bond elections…usually heard about on Fox Business or Money MSN. You usually hear about bond sales from governments all the time, but do not realize how related they are to how well an economy does and to what end it dictates to what an economy can do. Let me spell it out for you on the Euro Zone.
Yes these socialists did win. Yes they promised more spending and more debt. Yes they will get more spending and more debt. Yes they will increase their countries’ debt to levels never heard of before in history. Yes they will create such a bubble of government spending we will never have known in history. Yes there will be a major fallout from this. Yes they did follow the American “Obama” concept of spending. Yes the world is on a course of debt..Or deficit…spending that will lead to a backlash that we have never seen before. However, what we will see is a short term of prosperity that will seem like the markets are doing well. We will see people investing and making good returns. It will seem like the markets have corrected themselves and that we are out of the woods as far as the housing bubble that killed us in 2007/2008. However, what has actually happened is that we replaced debt with an insurmountable pile of debt. If you have money, invest it now. Yes you will make some great returns. However, pull out within the next six months or less. This is how it works, great amounts of spending from the government makes it look like the economy is getting better, but it doesn’t create sustained growth. It only means that the numbers look good as long as the government spends, so analysts misinterpret how the macroeconomics are playing out, and so people with money fail to invest in the actual growth industries. What will happen is government money will dry up…REAL quick. I’ll explain why shortly.
Once government money dries up then there will be a major drop in GDP for all countries across the globe, which means a major recession will happen overnight. Government spending ends overnight for a couple of simple reasons. With the Euro Zone, it will end soon (this could happen in a week, 6 months, even a couple years but it will happen), because these countries will go to borrow money for their bonds (which is the process for any country to borrow money to spend beyond its means), and investors will require a certain amount of money in return (which is represented by an interest rate). The more money they borrow the higher the interest rate. Most of the Euro Zone’s borrowing limits are not just maxed out, they are in crisis mode.
So let’s say today that I have $100 to invest. I can invest in stocks or bonds. Well let’s just take for example that I lost all my life savings of $10,000 in the US stock market in 2007 and I am a little burnt out on that solution. So I look to bonds. So I want to make sure I make some kind of return in this volatile market we are in right now. I look at bonds across the board and the steadiest bond right now is the US bond. However, it is less than 1%. But I look at the Euro Zone bonds and it is up around like 6-10%. Why is that? Well, the interest is what we like to call the likelyhood of you getting paid back. It is high because it is that much more risky in which you will never see your money again. The more a country borrows, the higher the riskiness, and as we see more Euro debt accumulate it will be costly for them to borrow. Do not just take my word for it, Bill Fleckenstein also feels this way, who is a contributor for Money MSN. So I say let these crazy people get elected with these crazy ideas about spending. Once they go to borrow money that no one is willing to loan them, they will see a massive default on their sovereign debt, and there will be a massive sell off of Euro Zone debt and a flight to the American Dollar we have never seen before.
Mike’s Econ 101, pt. 2
Posted by Unapologetically Right in economics, Uncategorized on May 10, 2012
Fixed Costs and Variable Costs, and how they affect Price
To help understand basic economics we need to begin with an understanding of how prices are determined. Let’s start with a lemonade stand. Little Sue decides to go into business and sell lemonade in her neighborhood. She starts out with buying materials for the stand for $10 (or what is also called making capital expenditures). Also, lemonade ingredients for ten dollars $10 (these items are also called cost of goods sold) making her total initial investment of $20. Now, let’s assume that Sue has to pay rent for her space of $1 a day. The rent paid here is known as fixed costs, or items whose cost does not increase as volume increases (some other examples would be salaries, leases, or insurance). The lemonade ingredients are known as variable costs, or items whose cost increases as volume increases (other examples would be labor or utilities). Understanding these elements will be important later in the blog. With every $10 of ingredients she can make 10 cups of lemonade so her per unit cost is $1. Sue then decides to sell her lemonade for $2 making a profit of $1 per cup, or if she sells out a total profit of $10, which would be 10 cups x $1 (revenue – cost of goods sold or $20 – $10= $10 and her marginal profit which is profit/units sold is $10/10=$1. (It is important to note here that in some instances the capital expenditure would need to be factored in when determining at what price to sell at. For simplicity we will only go on fixed and variable costs). She opens up shop and sells out of lemonade in the first hour of business. After subtracting her fixed costs of $1 for rent, Sue makes a decent profit of $9. In this case she knows she could have sold a lot more lemonade and made a lot more money, so Sue goes to the store and buys $20 worth of ingredients. However, she can’t make all the ingredients by herself and needs help. So she hires a friend for $1 a day to help make lemonade. Again she sells out of lemonade. So, with $20 worth of ingredients she made 20 cups of lemonade which sold at $2 each cup making her $40 in total sales. Her variable costs were the ingredients that cost her $20 and the $1 in labor. So $40-$20 gave her a profit of $20. After fixed expenses (sometimes called overhead) is subtracted out, $20 profit – $1 labor -$1 rent = $18 net, or a marginal profit of $0.90 per cup sold ($18/20 cups = $0.90). Even though Sue made more in total profit by adding labor, she decreased how much she made on each cup of lemonade. You can see here as demand (or sales) increase so does variable costs. Companies generally will keep growing their sales and variable costs until they reach a breakeven point in which they are making no profit. At each increased level of sales Sue’s per unit profit margin falls like when it went from $1 a cup to $0.90 a cup. Eventually demand for Sue’s lemonade will cause her to not make any money on each cup sold while she is trying to supply everyone with lemonade that she could possibly sell to. In order to stay profitable and not go bankrupt Sue has to eventually raise her price.
pb:mk
Introducing Mike and Econ 101
Posted by Unapologetically Right in Current Events, economics, Economy, Politics, Uncategorized on May 1, 2012
I (Dave) am excited to tell you that Unapologetically Right is having another growth spurt. Today, I introduce you to our newest friend and contributor, Mike. Mike has a passion for finance, economics, and the like. Being that I’m usually an idiot when it comes to numbers, I wanted someone that believes in Biblical, conservative principles and the American way (capitalism) and can articulate these matters better than I. While I’m a numbers idiot, it seems our government, labor unions, and many others in our country are complete idiots when it comes to the simple math in economics (at least I can figure out the most basic addition and subtraction!). Therefore, we hope to use this blog as an educational tool, as well – or at least a reminder of some fundamentals. We will eventually be remembering our great founders and all the things that made America great from the beginning. However, Mike is ready to go by starting us off with the most basic of Economics 101 information. We’ll be introducing Mike on the podcast soon, too, so stay tuned for that! Without further ado, here is the inaugural Econ 101 blog entry:
Supply and Demand
Let’s begin by the simple concept of supply and demand. Let’s take lemons for example. In the chart above price for lemons will be along the Y axis and demand will be along the X axis. The line thru the middle of the chart is the amount of supply needed at any given time. Let’s say a grocery store sells lemons to its customers for $1 each. At this price there are 20 people in the market for lemons. However, as you can see in the chart, there are not enough lemons to supply everyone. In this sense, the low price for lemons causes a shortage of supply of them. So the grocery store restocks on lemons and raises its price to $2 for lemons. Now at this price only 10 people want to buy them, which causes some of your supply to be left at the end of the day. Here, the higher price causes an overage in supply. The red line in the chart denotes the price point in which the exact amount of lemons can serve exactly the right amount of people who want to buy lemons. This point is known as the equilibrium for the market. In the real world equilibrium is a mere fantasy. There is no possible way a grocery store will be able to predict the exact price and the exact supply to satisfy the exact right amount of customers wanting lemons. Markets will always gravitate towards equilibrium and hover around that point until some major cause happens. Let’s say for lemons a freeze happens and kills most of the supply for lemons. This causes that supply line in the graph to move upwards, which inadvertently causes the prices to go up. Farmers have to make back what it costs to produce the lemons plus some kind of profit so those costs and profit have to be factored into the sellable supply of lemons. The concept here is that price drives demand, which in turn drives supply. The cheaper something is more people want or has the ability to buy it. The more expensive something is less people want or can afford to buy it.

