The Sebelius/Obamacare Nut House Live!

Published: Fri, 10/11/13

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In This Issue:
The Sebelius/Obamacare Nut House Live! By Richard Young
Gunfight Over in Seconds B
y E.J. Smith
It’s Yellen. Now What? By E.J. Smith
Are Democrats “Winning” the Shutdown? The Editors
Trust Fund Babies By E.J. Smith
Barack Obama circa 2006 By E.J. Smith

Young Investments Client Letter: Sign up to get the letter emailed directly to you by clicking here
AUGUST CLIENT LETTER: U.S. Economy Not on Sound Footing
It is our view that the U.S. economy is far from being on sound footing, with potential bubble conditions existing in the stock and bond markets. Considerable blame lies at the feet of the U.S. government and the Federal Reserve. As time passes, economic conditions as measured by GDP continue to look weak, and yet the government continues to borrow from abroad a big portion of what it spends. The debt burden on Americans increases as the Fed continues to debase the currency with its money-printing excess.—Read more by clicking here

 
 
  
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The Sebelius/Obamacare Nut House Live!
 



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Gunfight Over in Seconds
 

My friend sent me this article over the weekend. Watch the video first and then read the article to see why your chances of surviving a gunfight will be determined in a matter of seconds.


 

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Trust Fund Babies
 
In case you missed the 60 Minutes piece last night on “Disability, USA” be sure to check it out here. Wait until you meet the lawyer from West Virginia. You’ll be ready to drive down there yourself in a fit of rage.

Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) is a topic that Chris Edwards, Director of Tax Policy Studies, covered in detail at the Cato 200 Laguna Beach, CA retreat. I spoke with Chris after his talk and I will continue to share his insight with you. In his lates t piece, Chris writes, “The abuse and overspending in government disability programs is so bad that even National Public Radio and 60 Minutes have taken notice. On the heels of this excellent NPR examination of the ‘disability industrial complex,’ the venerable CBS news show last night profiled Senator Tom Coburn’s efforts to uncover fraud in the two big federal disability programs.

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Are Democrats “Winning” the Shutdown?
 

harry reidAndrew Stiles at National Review calls into question whether or not Democrats have the upper hand in the shutdown battle.

An anonymous White House aide recently boasted, “It doesn’t really matter to us” how long it lasts, because “we are winning.” But one wonders how long that ruse will last, as the president, whose approval rating remains underwater, publicly plays up the consequences of the shutdown.

Senate majority leader Harry Reid, in particular, has had a rough week. Reid, who is reportedly the driving force behind the Democrats’ hardline negotiating strategy — or, rather, their refusal to negotiate — has lost his cool on more than one occasion. On Wednesday, he challenged the intelligence of a female reporter who asked why Democrats opposed the GOP plan to fund individual aspects of the government, such as clinical trials for children with cancer. “Why would we want to do that?” Reid wondered, much to his regret. On Thursday, the majority leader blocked a Republican attempt to vote on a bill to fund services and benefits for military veterans, even though the measure had passed the House with significant bipartisan support.

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Barack Obama circa 2006
 

Isn’t it amazing how times change? Zero Hedge reminds us here that Senator Barack Obama in 2006 refused to sign-off on increasing the debt limit: “I therefore intend to oppose the effort to increase American’s debt limit.”

Obama Debt Ceiling

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It’s Yellen. Now What?
 

Here The Wall Street Journal points out Janet Yellen’s weakness on inflation, something I’ve been talking about for a while.

And in 1995 she said during a debate on inflation targeting that “when the goals conflict and it comes to calling for tough trade-offs, to me, a wise and humane policy is occasionally to let inflation rise even when inflation is running above target.” This helps to explain why, even in the Bernanke era, Ms. Yellen has often pushed behind the scenes for even more aggressive bond purchases.

Ms. Yellen’s defenders says she really isn’t a dove and they point to her 2006 warning about a housing bubble and its risks for the larger economy. Full marks for that. But the problem is that by 2006 the mortgage-securities and housing bubbles were so large and distended that substantial economic harm was inevitable. The time for the Fed to have begun tightening was in 2003 and 2004 when it was keeping interest rates at 1%-2% even as the economy was growing by nearly 4% a year and commodity prices were exploding. Ms. Yellen was no great public dissenter from that historic Greenspan-Bernanke mistake.

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