The EU is Out of Money. End of Story.

And Neither the Fed Nor the ECB Can "Print" To Save the Day

By Graham Summers

While various media outlets and “analysts” try to claim that the EU summit was somehow a success and that Europe’s issues are solved, the fact remains that Europe is out of money.  And I mean TOTALLY out of money.

I realize this flies in the face of what 99% of analysts are claiming. But this is a proven fact. Of the various entities that could hold the EU together (the ECB, the IMF, Germany, and the two bailout funds: the EFSF and the ESM) none and I mean NONE of them actually have the capital to do it.

I am continually bombarded with emails from people saying, "well, if things get bad the Fed or ECB will just print and everything is solved."

This is beyond wrong. It is just groupthink based on the idea that the Fed has intervened ever since the Great Crisis began in 2008 (ZeroHedge recently ran an article showing that the Fed has intervened in over two thirds of the months since the Crisis began).

Gradus ad Narcissum

"How do you get to Carnegie Hall?" "Practice."

By Mark Steyn

It's an old line, and perhaps an obsolescent one. I can't recall the last time I heard anyone use it. Americans don't seem to want to get to Carnegie Hall, not if American Idol is auditioning round the block. And practice is one of those things, like math, the education system seems to have ceded to the Asians. These days, China not only makes most of the pianos, but plays them. David Goldman (the Internet's "Spengler") likes to point out the correlation between the study of Western classical music and success in science. "There's a difference," he writes, "between an engineer and an engineer who plays Bach." Whenever he makes his case, even those of a conservative disposition fill up the comments section with objections: There's nothing wrong with an engineer who likes rock-'n'-roll, or country, or thrash metal or gangsta rap or grunge . . .

Obamacare Is Not Constitutional

The American people can correct the Supreme Court’s mistake

By Sen. Rand Paul

Political observers have described the 2010 Tea Party wave as an extraordinary assemblage of liberty-minded Americans who rallied around the Constitution in order to reclaim their country. One of the galvanizing forces was the passage of Obamacare — the national government’s takeover of our health care. Millions of Americans were enraged by this and other aspects of the Obama administration’s destructive political agenda, and they were sick and tired of their representatives’ failure to do anything to stop it. The 2010 wave election was a direct consequence of Obama’s unconstitutional ideals and czar-like power. And now, with the announcement of the Supreme Court’s decision to uphold Obamacare, it is my belief that the American people will be motivated to reorder our political priorities as they did in 2010.

Walking to America

A Fourth of July remembrance of one boy's journey to the land of his dreams

By Jeffrey Lord 

Schmuel knew.

Schmuel was Schmuel Gelbfisz, born in Warsaw, Poland, in July 1879.

He was the eldest child of Hannah and Aaron Gelbfisz, who were Hasidic Jews. The family had lived in Poland for generations. Schmuel was the oldest of six children.

Two years after Schmuel was born, the Russian Czar Alexander II was assassinated and the blame was laid -- falsely -- to Jews. The Russian pogroms began. Tens of thousands of Jews fled to Warsaw, then an outpost of the Russian Empire. While this provided a safe haven of sorts, pretty soon the wave of anti-Semitism that had so murderously swamped Russia itself spread to the Russian-ruled Poland. Polish Jews were subjected to violence, to restrictive laws and higher taxes specifically targeted at Jews.

Judicial Betrayal

Conscience can be an implacable and inescapable punisher

By Thomas Sowell 

Betrayal is hard to take, whether in our personal lives or in the political life of the nation. Yet there are people in Washington -- too often, Republicans -- who start living in the Beltway atmosphere, and start forgetting those hundreds of millions of Americans beyond the Beltway who trusted them to do right by them, to use their wisdom instead of their cleverness.

President Bush 41 epitomized these betrayals when he broke his "read my lips, no new taxes" pledge. He paid the price when he quickly went from high approval ratings as president to someone defeated for reelection by a little known governor from Arkansas.

Chief Justice John Roberts need fear no such fate because he has lifetime tenure on the Supreme Court. But conscience can be a more implacable and inescapable punisher -- and should be.

The eleventh commandment

Israel’s Emergence As Energy Superpower Making Waves

By WALTER RUSSELL MEAD

Israeli Prime Minister Golda Meir famously lamented that Moses led the children of Israel for forty years of wandering in the desert until he found the only place in the Middle East where there wasn’t any oil.

But could Moses have been smarter than believed? Apparently the Canadians and the Russians think so, as both countries are moving to step up energy relations with a tiny nation whose total energy reserves some experts now think could rival or even surpass the fabled oil wealth of Saudi Arabia.

Actual production is still miniscule, but evidence is accumulating that the Promised Land, from a natural resource point of view, could be an El Dorado: inch for inch the most valuable and energy rich country anywhere in the world. If this turns out to be true, a lot of things are going to change, and some of those changes are already underway.

Israel and Canada have just signed an agreement to cooperate on the exploration and development of what, apparently, could be vast shale oil reserves beneath the Jewish state.

Detroit Has Run Out of Other People's Money

If there is a cure for Motown's fiscal woes, it's bankruptcy

By Shikha Dalmia

A sigh of relief swept through Detroit recently after a judge threw out a legal challenge to the “consent agreement” the city just signed with the state to clean its books and avoid bankruptcy. The lawsuit, filed by the city’s megalomaniacal legal counsel, represented a level of overreach ridiculous even by Detroit’s lofty standards. But in the tragicomedy that is Detroit, it would have been better if it had succeeded and expedited Motown’s rendezvous with bankruptcy.

If there is any solution to Detroit’s fiscal mess, it may lie in the legal, not political, arena.

Fiscal deficits have been a fact of life in Detroit for decades as residents and industry fled its high taxes, high crime, shoddy schools and erratic trash services, thus eroding its tax base. Now, however, Detroit is flat broke, with a $265 million deficit that it has run out of gimmicks to fix.

Incinerating America’s West

The purpose of the green prosecution is not to protect nature, but to put shackles on humankind

By Robert Zubrin 

As I write these lines, vast wildfires are sweeping through my home state of Colorado and other areas of the American west. Last week, two of my employees had to leave work early to rush home to evacuate their families from imminent danger. Hundreds of houses have already been destroyed, and thousands of acres of trees incinerated, and unknown myriads of wild animals burned alive.

This disaster was predictable, and promises to get worse. Over the past decade, from British Columbia to New Mexico, the world’s most rapid deforestation has been underway in the North American west, with an average of nearly six million acres of forest lost per year — roughly double the three million acres per year rate in Brazil. The culprits here, however, have not been humans, but Western Pine Beetles, whose epidemic spread has turned over 60 million acres of formerly evergreen pine forests into dead red tinder, dry ammunition awaiting any spark to flare into catastrophe.

On Equality and Inequality

Equality, Natural Rights and Killing Fields

By Ludwig von Mises

Different and Unequal

The doctrine of natural law that inspired the 18th century declarations of the rights of man did not imply the obviously fallacious proposition that all men are biologically equal. It proclaimed that all men are born equal in rights and that this equality cannot be abrogated by any man-made law, that it is inalienable or, more precisely, imprescriptible. Only the deadly foes of individual liberty and self-determination, the champions of totalitarianism, interpreted the principle of equality before the law as derived from an alleged psychical and physiological equality of all men.

The French declaration of the rights of the man and the citizen of November 3, 1789, had pronounced that all men are born and remain equal in rights. But, on the eve of the inauguration of the regime of terror, the new declaration that preceded the Constitution of June 24, 1793, proclaimed that all men are equal "par la nature." From then on this thesis, although manifestly contradicting biological experience, remained one of the dogmas of "leftism." Thus we read in the Encyclopaedia of the Social Sciences that "at birth human infants, regardless of their heredity, are as equal as Fords."[1]

Angela Merkel is Playing You For Fools

Taking Germany out of the picture

By Raoul Ilargi

Oh, come on, leave the girl alone already. First off, all those people talking about a solution for the eurozone need to finally understand there ain't no such thing. And whatever slim chance of a solution the most optimistic - delusional - among them may be so desperate to cling on to, at least they should recognize that Angela doesn't hold the keys to the city. She herself knows it: she's just another gal knocking at the gates, even if she's dressed as the empress.

A thought experiment: how would you solve the euro crisis if Germany were not part of the equation? If you would have to put the de facto German contribution to the puzzle at zero, neutral? What would you be left with then, and what steps would have to be taken to come to a solution? If the sole remaining big players were, let's see, France, Spain and Italy?

That changes the picture, doesn't it? Take Germany out and all you're left with is pretty much roadkill. Plus a motley crue of comparatively small barely breathing rodents like Holland, Finland and Austria.

Two Ways, But Where To?

Electoral fear may be the only medicine

By Anthony de Jasay

Having for a pulpit a regular column in the New York Times, Paul Krugman speaks to us as one who is really sure about what is what. He is also thoroughly exasperated by the pigheaded blindness of those of us who have their hands on the levers of policy and are responsible for the astronomical waste and needless pain inflicted on the economies on both sides of the Atlantic and especially on the Eurozone. His thesis is that we are actually in a state of genuine depression, involving a loss of potential output that hardly bears thinking about. The depression is of our own making and is unnecessary, serving no purpose. It ought to be and could be terminated forthwith.

When Push Comes to Shove ...

Roberts switched views to uphold health care law

By Jan Crawford

(CBS News) Chief Justice John Roberts initially sided with the Supreme Court's four conservative justices to strike down the heart of President Obama's health care reform law, the Affordable Care Act, but later changed his position and formed an alliance with liberals to uphold the bulk of the law, according to two sources with specific knowledge of the deliberations.

Roberts then withstood a month-long, desperate campaign to bring him back to his original position, the sources said. Ironically, Justice Anthony Kennedy - believed by many conservatives to be the justice most likely to defect and vote for the law - led the effort to try to bring Roberts back to the fold.

"He was relentless," one source said of Kennedy's efforts. "He was very engaged in this."

But this time, Roberts held firm. And so the conservatives handed him their own message which, as one justice put it, essentially translated into, "You're on your own."

Go figure, the poorest place in Europe is run by Communists

Next stop, Greece

By Simon Black

Ah Moldova… the poorest country in Europe, which just so happens to have had a Communist party majority in its parliament since 1998.

These two points are not unrelated.

Despite having achieved its independence from the Soviet Union over 20 years ago, the state is still a major part of the Moldovan economy…from setting prices and wages to media, healthcare, agricultural production, air transport, and electricity.

Under such management, it’s no wonder, for example, that Moldova has to import 75% of its electricity. It is the exact opposite of self-sustaining.

The government does a reasonable job of chasing away foreigners as well.

It's Never Been Better

As a Share of Household Spending, U.S. Has Most Affordable Food in World 

by Mark Perry

We hear reports all the time that real household incomes are stagnant or falling, the middle class is disappearing, household wealth has declined, and income inequality is rising.  All of those reports might make one think that the standard of living for the average American is bad and getting worse.  But here's one basic measure of a country's standard of living that shows Americans are better off than their consumer counterparts anywhere in the world: The share of household consumption expenditure on food consumed at home, see table below (USDA data here).  

Relative to our total household spending, Americans have the cheapest food on the planet - only 6.6% of the average household budget goes to food consumed at home.  European countries like Spain, France and Norway spend twice that amount on food as a share of total expenditures, and consumers in countries like Turkey, China and Mexico spend three times as much of their budgets on food as Americans.  

Oh, How the Mighty are Falling

"I like nonsense, it wakes up the brain cells"

By Mark Grant

While the markets look at what took place at the last Summit and rally; just wait, it won’t last long. The markets are getting mislead, one more time, by the spin that Europe places on events; by the focus that the giant European propaganda machine spits out from various sources again and again and again. You may recall, in the not too distant past, how the firewall was the thing, how the money needed to be bigger and how we were all led to believe that this giant, massive wall of Euros would protect the core nations of Europe. These nations included Spain and Italy without question and now the first mighty oak has fallen as Spain stepped up to the plate and swung the begging bat.

Saving everybody's face

The real victor in Brussels was Merkel

By Wolfgang Münchau

Mario Monti faced down the German chancellor and won the battle. He will survive a few more weeks or months in politics. It was clever of him to threaten a veto on something Angela Merkel badly needed. He had her in the corner. It was an example of classic EU diplomacy.

But this was only the foreground spectacle. If you look behind the curtain, you will find that, for Italy at least, nothing has changed at all. The European Stability Mechanism was already able to purchase Italian bonds in the open market. The instrument was there, but not used. The agreed changes are subtle. Italy must still sign a memorandum of understanding, and subject itself to the troika – the International Monetary Fund, the European Central Bank and the European Commission.

A New Health Care System

What can go wrong ?

Learning To Laugh At the State

The state, with all of its coercive power, can’t take that away

by James Miller

I’ll be the first to admit the incredible aggravation I feel whenever liberty is trampled upon by the state’s obedient minions.  Everywhere you look, government has its gun cocked back and ready to fire at any deviation from its violently imposed rules of order.  A four year old can’t even open a lemonade stand without first bowing down and receiving a permit from bureaucrats obsessed with micromanaging private life.  The state’s stranglehold on freedom is as horrendous as it is disheartening.

The worst part is that the trend shows no signs of slowing down, let alone reversing.  Politicians are always developing some harebrained scheme to mold society in such a way to circumvent the individual in favor of total dictation.  If it isn’t politicians, then it’s an army of unelected bureaucrats acting as mini-dictators.  As the late Swedish economist Gustav Cassel once lectured:

Is this 1936?

But while the Justices continued to dance in 1936, the music had died

By David Bernstein

Before the ACA decision was announced, many liberal pundits warned that the Supreme Court was on the verge of repeating its mistake in 1936, when the Court revealed that retained a 5-4 majority hostile to broad regulation of economic activity.  These pundits suggested that if the modern Court invalidated the ACA, it would be repeating the mistake of its conservative New Deal-era predecessor.  The Court would then face a backlash of the sort that led to FDR’s Court-packing plan, and ultimately to the famous “switch in time that saved nine.”

Egypt Holds Its Breath

The junta certainly has no intention of abandoning its vast economic empire

by Omar Ashour

“You are the authority, above any other authority. You are the protectors, whoever seeks protection away from you is a fool...and the army and the police are hearing me,” said Egypt’s president-elect, Mohamed Morsi, to hundreds of thousands in Tahrir Square. A man imprisoned following the “Friday of Rage” (January 28, 2011) took the presidential oath in Tahrir on a “Friday of Power Transfer” (June 29, 2012).

But he almost did not.

Ten days earlier, on June 19, I was with a group of former Egyptian MPs in Tahrir Square. One received a phone call informing him that a senior Muslim Brotherhood leader was coming to announce that the group was being blackmailed: either accept the constitutional addendum decreed by the Supreme Council of the Armed Forces (SCAF), which practically eviscerated the presidency, or the presidential election’s outcome would not be decided in the Brothers’ favor. An hour later, the senior figure had not shown up. “The talks were about to collapse, but they resumed,” said the former MP. “Hold your breath.”