It created a new Administration Controlled Substances Code Number (#) for “Marihuana Extract” as the DEA previously had codes only for. FREE – in Google Play He walked through the store, picking up the same items he had purchased most of which were related to traffic violations, including a DUI. Lawson's attorneys admitted that Lawson had a drug addiction and previously had been banned from the relevant store, a questionable. Liberals and conservatives do not agree with each other, as a matter of general principle. If one side says something is true, then the other side.
Traffick Co-Conspire Walmart Did Prohibited and Google to Substance? a
So I put it out in the garage to air out. It's been two days and I tried it again, smell still bad. The humidifier smelled bad too but not quite as bad. I decided to wash the bottom of it and I let it sit overnight in soapy water. Rinsed it out and put water in it the next day. Put the top on where the fan and motor is, turned it on.
Yes it still smelled, no way to clean the top part, I did wipe it off but the smell is where the motor and fan is that you can't wash. I ran this several hrs and the fan started to sound bad like it was not balanced or level or something, making a load noise. I am so sick of things that are made in China, but you can't find anything that is not! I'm taking both these products back to the store tomorrow. I worry all the time about toxins, chemicals, all the things that are bad for us.
When you buy these things that smell so toxic when you open the box they have to be bad for you. I can't imagine what it's like to work where they make their plastics. I use to work at a plant that made car parts. I worked in a dept. Has there been any headway made in getting our Gov to do anything about this? I will take all your suggestions in and write as many letters to as many people as I can.
I don't think the gov really cares what we breathe in but I'll give it a try. I'd like to talk to you about a few more issues but will wait to see if you respond. December 25, Chinese porcelain vintage jewelry box Recently purchased on eBay and it's beautiful I'm afraid to touch it or have in the house.
The outgassing easily penetrates the bag and permeates all other items in this closet with its foul stench. December 14, [China unconfirmed as source] The bag that came with my Kindle at PC World stinks to high heaven and has given me several headaches. I have since returned it. October 10, Interesting thing happen to me I purchased a coffee maker that was made it China I have been doing research this morning on corn basted plastic and my coffee pot and ran across your article.
Are you aware of anyone studying the affects of ingesting the smelly plastics. Thank you for your research! September 27, A few months ago I bought a pair of stretch capri jeans from zulily.
When they arrived they had a horrible strong odor like the combination of petroleum ,kerosene and the worst bad breath you have ever smelled. I washed them about 7 times and hung them outside for a week to out gas but they still had a smell.
They have to be toxic to smell that bad. People are wearing clothes next to their skin that have toxic chemicals in them and I am not sure if the chemicals ever come out.
They were on sale and Zulily doesn't allow for return. September 26, [China unconfirmed as source] I have long been sensitive to the odor emitting from the 'new' wave of plastic goods circulating on the consumer market. I first noticed a specific odor coming from plastic storage bins, first large, then crafts storage sizes. Then I discovered that that odor was transferable to objects that came in contact with the boxes, including my skin.
That isn't too easy after being accustomed to using plastic for years without thinking about it. A real concerning threat has arisen now.
It is the use of that same plastic in food storage bags, specifically Ziploc brand bags. I was a longtime user of their freezer quart and gallon baggies. Now, after contacting them and allowing them to send me coupons with an apology and suggestion it was an anomaly, I have discontinued using their brand.
I tossed the units secured with those coupons. They did claim publicly that an odor some complained about was due to their demand being so high that they did not have time to air them out before packaging. However, that odor, the one that was complained of at that time, was likely there to cover up the specific odor I am referring to. Those concerned called it a burnt smell or some similar.
Again, that odor, which I am particularly sensitive to, my wife doesn't seem bothered by it, transfers to my hands. I must assume it transfers to any food stored inside as well. This might elevate the issue regarding this prevalent class of plastics these all have that one exact same scent to one the FDA has an obligation to confront. While I write to you, I have been unsuccessful as an activist, and I have seen little good come from those actions by others made public spectacles.
So, I am not too enthusiastic about, "doing something about it. Very disappointingly, they are made in China. Sadly, I have noticed a pesticide, metallic smell to the inside of the shoe, or is it the sole. I did some research to see if anyone else experienced the same thing, and as a matter of fact, there are some owners of Keen shoes who have experienced the same toxic smell. Please see link below regarding this toxic smell.
Truly, I am very disappointed I spent so much on these shoes for two reasons. The very toxic smell. I will probably return these shoes and buy from Danners. July 23, I found your very interesting website while searching for information about the bad odor coming from a brand new Motorola modem, model MB Here is an email response from Motorola that may interest you: This smell is from the new plastic.
There are no chemical or safety issues associated with this smell. We are looking into ways to try and resolve this issue. We have found that this smell dissipates over time usually in about days of use. Also, they provided no scientific study or proof that the out-gassing is non-hazardous, just their word. I have had this modem over three weeks now. Yes, the out-gassing has decreased somewhat, but I don't expect that this will ever stop completely, because these offensive chemicals are part of the composition of the entire plastic housing.
For that reason, I have reported this problem to Amazon and will have a different brand of modem to replace this one in a few days. And, they smell horrible! They are work gloves dipped in pac and knit lined.
I wear them when working with my bees. They are work gloves I bought at Home Depot. Online says discontinued because of China made chemicals. Lately my hands get red dots and then they raise up like an ant bite. I also have swollen joints on my hand and tendons are stiff. They even thought gout. I cannot use my hand. Doctors are frustrating me. My helper with bee work, had similar bumps and stiff tendon.
Not sure if it is the gloves. June 7, I am sending you this as another alert and for posting on your website. I am familiar with the foul burnt tire smell from Chinese plastics having purchased some black plastic DVD cases on e-bay a few years back that were made in china. I now find the same smell coming from my Honda Accord and have located it to the black plastic padding they use as a liner under the center console between driver and passenger.
A piece of this underliner is also placed in the bottom of the console storage compartment and is more readily accessible. This material may be used throughout the car under the rugs, etc. May 23, Glad I found this site! My husband bought a pair of Perry Ellis shoes from Ross the other day!
The soles let off some horrid chemical smell worse than a tire store. I got sick on the drive home! The whole shoe is man made, and made in China! He wore the shoes yesterday, and we were together for over 5 hours. I was sick the whole time. Afterwards, he bought a spray to seal them, but its not working.
My eyes, nose, throat and even inside my ears are still burning! I have a headache, and feel angry, confused. My upper body aches and I feel like I have been victimized! I plan to return the shoes to get our money back! But that's not the point!
I want this travesty to STOP! People need to be compensated for suffering, damages, and aggravation! Ross is an hours drive away!! This means we need to suffer that distance, and no telling what that crap is doing to our brains, and bodies!
Any corporation that chooses to endanger peoples health needs to be held accountable! It has committed a "legal crime" and justice needs to prevail!
I want Perry Ellis and the governments that allow these travesties to pay! I want them to pay out large sums to everyone who has suffered! April 19, I bought my mother a wheelchair. Apparently a lot of wheelchairs are made in China.
I thought I was going to be poisoned from the smell and contact with the wheel chair. I am having a lot of respiratory issues as a result. Needless to say, I returned it. We need to bN together against this.
November 10, Yes, I too as many others I'm sure have encountered this. The neighborhood Harbor Freight store--how about the effects on its own employees? Is there further word on whether this is dangerous to one's health? Please TELL me anything further you may have on this. I certainly find it very suspect and something that smells like that -- how can you not question, if not RUN the other way?
And, what can I do to help the issue and cause? This was the first time the covers smelled like that so I'm thinking there's been a change in their manufacturing process. I always try to avoid purchasing these products and will keep a stronger eye nose out for it in the future. October 27, I found your website as I was re-living that terrible stench of weird rubber from China with my hot water bottle from a dollar store.
A couple months ago I bought a "game cart" from Cabela's which had rubber wheels about the same diameter as a car steering wheel. The stink was so bad I bagged the wheels in 2 plastic garbage bags but within a few days the smell was emanating completely through the plastic. So I placed everything in 3 more of the thickest garbage bags I could buy. Within a day or two the smell continued to leak through a total of 5 garbage bags.
I got frustrated and threw everything in my storage closet. I live in an apartment. After about a month I opened all the bags up and the first bag which was clear plastic was coated in a yellow oily substance.
I immediately disposed of it. The wheels were slightly less smelly so I can only assume the oil eminating from the rubber was the source of the stink.
I've been to China in Chengdu, city of 11 million at that time. I couldn't see the buildings because of the grey skies. I could only see the windows in the buildings as they were darker. It was like being on a different planet. And a pretty dismal planet at that. October 17, I also have noticed this horrific smell in the last several years. It burns my eyes and throat. I think they are trying to poison us.
I ordered coach bags on what thought was a legitament site but when I received them they were not coach bags at all and the smell was horrible. The package they came in said China but when I ordered them it said nothing about them coming from China.
I believe it is a scam site because you can't get a hold of them at all,like there is no trace of them. I am glad you are trying to do something about this terrible smell of harsh chemicals. Hope we can get this resolved. August 26, [China unconfirmed as source] Strong mildewy- or formaldyhyde-like? I came across your website while looking for ways to absorb this toxic? I got rid of it. It smells strongest after using hot water from faucet or pouring boiling water from food e.
August 25, I found your website and glad I did. I recently bought a set of three plastic training bags dummy bags for dog retrieval training from Cabelas.
It is a well know fact that Cabelas, like so many others, has many former American made products produced in China. Gave my wife and I a burning in our nose, mouth, and eyes. I know this smell from other Chinese products that I had purchased over the past few years. She seemed concerned, but who knows. Not a good situation what is going on out there and I hope you are making progress? August 3, I am glad I found this article. I just recently purchased numerous chair and swing cushions from Lowes for my outside porch furniture in three different patterns and colors.
All made in China. All of them having a plastic smell, but the red ones were by far he strongest. For the past two days, I have spent hours sitting on them. The first day I noticed that I had a dry, itchy cough after a short period.
I blamed it on something outside making me cough. The second day, the same itchy throat and cough started soon after sitting on the cushions. The odor seemed to bother me this time also. I moved to one of the other patterned chairs and the odor wasn't as bad, but I eventually had to go inside to drink something to ease the cough. I did put the odor together with the reaction quickly. I was going to try to get the red cushions into my front loader to wash them, but after reading this, I am going to return them.
I am now in bed, 9 hours later, and my throat is still burning and itching. I have said it before, but I will say it again, " I am not going to buy anything from China again. The only problem is, almost everything comes from there August 3, I knew I would find such a website as yours.
I am to the point where I avoid both these establishments for that reason alone. Doesn't matter what the prices are, I don't need the discomfort. July 10, I live in Geneva , Switzerland.
Being a musician , I bought many instruments on line directly from China , or in Europe , made in China. ALL of the cases smell that awful chemical smell. Every time I touch this thing I have to wash my hands. Same thing for a barytone saxophone that I bought 3 years ago.
And I had to store it in a closed room , where this smell litterally sticked to the walls. Same thing for every instrument I purchased. S issue , but a global one. Thanks , for beeing a whistleblower on that matter. If I can help , let me know. June 27, Hello: Thank you for bringing this subject to light. I have 3 "Made in China" products that have a strong chemical odor.
The smell lingers and does not go away. The smell is a cross between pesticide and something metallic. Two of the items are soft padded bass bags. The other is a TV stand. The bags are ballistic nylon. I have to leave a window open to breathe when I transport my bass in my car.
I have gotten headaches from it, and it leaves a oily residue on my skin and hair. The odor is overpowering within 3 feet of it. I plan on getting rid of this stuff. I've probably had them for too long as it is. It has to have a negative effect on health. I wonder if anyone has done the "canary in the coal mine test"?
It would be interesting from a science perspective to see what this stuff does to other living organisms. I'll bet, it can't be good. May 9, I have bought a number of products in recent years that have had this solvent odor issue.
Some for them have been very strong smelling. One that comes to mind, is a metal wagon that we bought at Tractor Supply. I assembled it one night and left it in one of our rooms.
The next morning the room was full of fumes. The good thing is that it was for outdoor use, so we took it outside and never thought about the smell again until I had to buy a new tire for it. These tires are sold cheap at Harbor Freight mentioned by others, nearly all made in China stuff , so guess where I bought my tire?
That tire had a horrible solvent smell. The most recent issue I had was with an all-rubber car floor mat set with 4 thick mats that I bought at Walmart. I noticed right away that they had a very strong solvent odor, and thought like others have mentioned, that it would go away in a few days or week or so. I don't know how long I had them just laying in my back seat. It seems like it was a few days. Finally the smell was so bad it was making me feel sick and I seemed to be getting headaches.
I don't normally get headaches. By the way I have a minor in chemistry and worked hands-on with and around industrial and automotive chemicals for over 20 years and I have a very sensitive nose for detecting chemicals, even being able to recognized particular chemicals by just their smell, but I also have been around them so long that I have a high tolerance for most chemicals.
However, when it comes to gasoline, tar, and other similar petroleum-based solvents and byproducts such as xylene, toluene and benzene, which are all aromatic solvents, I, like most people to not like to smell them and do not tolerate them well at all. Well, these medium priced floor mats had that kind of smell. Not exactly gasoline, but a very strong solvent smell like a mixture of xylene, toluene and benzene, which by the way are components and byproducts of refining gasoline.
Trust me, these are not good fumes to breathe longterm or short term. I was about to just take the mats back to Walmart new and unused, but thought they just had to be able to get better and I needed them. They still had the odor, but seemed to be better,so I went ahead and installed them in my car. I have endured weeks of the strong, obnoxious smell and the slight nausea and strong headaches for weeks as I have 4 hours of commuting back and forth to work everyday.
I finally decided enough is a enough and went back to Walmart and yes, I was standing their sniffing all of the floor mats to see if I could find any without the smell. They all had it, however, the full carpet ones only had thin rubber lining on the bottom, so they were tolerable. Still if you smell them up close, you can smell the same solvent smell from the rubber. I bought these carpet ones and just today Saturday May 9th I took out the smelly ones and put in the carpet ones.
I noticed immediate relief and improvement of the smell in my car by taking those mats out! I don't appreciate being exposed to toxic chemicals because Walmart and other retailers choose to ignore the issue and not tell consumers about it so we can make an informed choice to buy or not to buy these products.
Cheap, low prices are great, but not at the expense of our health! I also plan on going above the local store manager to try to make contact with the regional manager to get their attention. After reading your opinions and the responses of so many others, I am really determined not to just sit and do nothing about companies who are willing to turn a blind eye to complaints I am sure mine will be only one of hundreds, maybe thousands on these mats and allow people to get sick and experience who know what kinds of long-term health effects.
There has also been some very recent news this week about national laminate flooring company Lumber Liquidators pulling all of their chinese-made laminate flooriing due to concerns about formaldehyde emissions. This may be the best time ever to get the CPSC's attention on other issues like this such as chemicals in Chinese rubber that in my opinion are just as serious as the formaldehyde issues.
You have probably also seen and heard of the issues with crumble rubber mulch recycled tires used on children's playgrounds. See the links below for details. Thank you for what you are doing on this subject to promote a healthy environment for generations to come.
April 12, Confirmed that a cart purchased from Home Depot had that crazy nasty chemical smell from the simulated rubber tires labelled as 'nylon' and from the rubber grip on the handle. I still have a headache five hours after assembling the cart and putting it outside the house and have written a review stating the need for a warning label to the consumer to assemble and store the cart outdoors.
Thanks for the great write-up. I'm assuming that your chemical B was vinyl Chloride. Between May to Feb while living in LA, I purchase a cheap pair of simulated alligator skin shoes from a discount shoe outlet. It was the first time I had come in contact with the strong smelling Chemical 'A' by your description. I placed the shoes in a bag in a closet and they still stank like crazy a full two years later.
I have forwarded your website link to someone who worked at EPA for 30 years and I hope they can help find the right person there to look into this. If you think it's bad as a consumer of these products, just imagine the hell that the workers in China are going through who work at that factory. The welds on my cart from Home Depot were quite poor and I can't help but wonder if the guy welding wasn't half loopy or had nervous system issues from the massive amounts of TCE in the air. These items were just what I needed and they performed exactly as promised.
The only problem is that approximately 24 hours later, my puppies appear sedated, uncoordinated worse than normal and not easy to awaken no matter how much stimulation they are given. I notice a very strong smell coming from these new pads and I'm wondering if the smell is the cause of the puppies issues.
March 24, I just bought an iPad Air. Needed a case and purchased it at Target. Bought Steck brand I had for another iPad. My mouth, lips, eyes, tongue have an irritated burning sensation. I think it's the case but perhaps the iPad. I am not sure. Will be returning the case and maybe the iPad if the problem doesn't resolve.
I have had the same reaction to other things: Rubber mat isle in Target. A small heater purchased at Target and returned. A leather couch set purchased at Macy's and returned. Set of off brand white Christmas lights from Home Depot and returned. An end table purchased at TJMaxx and now only keep outside cause it smells so awful.
I have always suspected Chinese products are the culprit as their safety standards cannot match the U. These toxic products are probably just a few that we notice. What about metal products for cooking. Are the metals safe? There are really no safety standards in China. I do not trust their products at all.
But we tend to trust that they meet our laws in US but I don't thinks so. Thanks for working on this safety issue. Feb 12, was really happy to come across your webpages on the toxic off gassing from goods. Thank you for your efforts! This has been something I have been talking about for the last years, after the infiltration of cheap goods made in China flooded our Australian stores and lives.
It has been one of my obsessions and am witnessing the effects these products have on those around me.
Am horrified about the health implications let alone the environmental devastation and am starting research for a few books. One will be on the plastic explosion and its impact on our oceans, food chains, dna and sterility etc and the other is on the toxicity of the goods being sent around the world and the impact of that for China herself as well as all of us.
It will be focusing on why this is not being regulated, monitored and stopped. Why people's lives are being altered for profit. If you have any resources, thoughts, advice or tips they would be most welcome!!!! I am coming at this research from a non scientific background basic physics and chemistry only These books are for general consumption and for informing, gathering and inspiring others to move on these issues as well.
I am a researcher with a degree in Asian studies and am currently teaching high school History and Social Studies. January 5, [China unconfirmed as source] I just wanted to thank you for setting up this website. I have noticed this overwhelming chemical smell twice in the past two days and it is very concerning to know that these products are on the rise but reassuring to have a site like this where information about it can be collected. I noticed the smell yesterday for the first time in our bedroom and had never smelt anything quite like it.
It definitely smelt highly toxic and at first I thought it might be coming from an electrical fault or fire. The smell was so overwhelmingly strong that I quickly traced it to some shoe bags that a pair of new shoes my husband just bought had come in. Then today, driving around in our car, I noticed the same smell again and it was so incredibly strong that I eventually found myself trying to stick my head out of the window while driving just to breathe some fresh air.
When I got home, I discovered that it was coming from a bunch of little packaging plastic bags in a box on the backseat that my husband had picked up earlier and forgotten to throw away. It scares me that these plastics have reared there ugly head twice in such quick succession which indicates that we are likely to see an influx of these plastic products.
Also, while both of the cases I found were with packaging that could go straight in the trash, it scares me that this smell has also been discovered in products themselves. The stench is so unpleasant, effusive and toxic-smelling that I am sure it must be bad for us and I do not want these products anywhere near myself, my loved ones or my home. I wish your campaign every success. I did not notice a smell when I tried them on, but when I got home, the smell almost made me dizzy!
It is that 'black chinese plastic toxic smell'. I put the shoes in the sun, washed them with soap and water and sprayed them with air freshener. Nothing helps and the room they are in smells like a chemical factory! How does JC penney get away with selling such poison? The CHinese people are laughing to the bank with the stupid brainwashed American people.
November 21, [China unconfirmed as source] Recently I purchased some thermal backed curtains. They were a terrific price. I put them up throughout the house, but not my bedroom because we would be redecorating it. I noticed a plastic odour but assumed it came from the new carpet. Three weeks ago I put the thermal backed drapes up in my bedroom.
The smell is horrendous. I wake up coughing and struggling to breathe. I have no idea of the cause, but since reading the information on this I feel that the plastic contents have a lot to do with it. How do we effect change? November 12, [China unconfirmed as source] My son has been having tics for the past several years born in Sometimes they are insignificant, sometimes aggressive and uncomfortable.
We initially suspected food colouring to be a cause. Last week he won two especially smelly miniature hockey pucks from a school fundraising campaign, after which his tics came on very strong.
I myself am very sensitive to the smell I feel uncomfortable walking into a Dollar Store , so I went through his bedroom and removed 6 or 7 culprits of different smelly plastics. This was three days ago. He has had two very good days of nearly no tics at all. This is something that I have just recently realized, so of course my 'experiment' is inconclusive. October 31, I am writing to advise of items with the horrible chemical smell. One is plastic- a pair of "Everlast" training boxing gloves I purchased for a Halloween costume.
When they were delivered, the driver commented on how the box had made his truck smell. I left them outside in the sunshine for 10 days.
I closed them in a bag with Baking soda all over. I wiped them down with vinegar. I sprayed them with Febreeze. I am going to try and return them. The other is clothing- a pair of leggings purchased at Bed Bath Beyond. These I washed and dried 2 times. Both items were made in China. All I can say is September 9, Recently I bought these heavily discounted made in a China boots for my son at a menswear store.
Even after being outside for several days they still stink of tar. I couldn't find any Australian website with information on the smell but found yours. I have forwarded the following text to an Australian Govt body info swa. I recently bought a pair of men's rubber soled suede black dress boots, made in China, at a Tarocash store in my local shopping centre. They smelt very strongly of black tar so I put them outside for several days.
If we coupled getting rid of government assistance with getting rid of the multitude of government barriers to engaging in economic activity, then those poor people would have the opportunity to lift themselves out of poverty.
That's what I as a libertarian would like to see. Ditto for fresh fruit and veggies. Hey punk, no one owes you anything, no one owes anybody else unearned food or shelter or whatever absurdity the left is going to push next week. There is no such right as the right to exist as a human parasite. Any adult knows this, which is why leftoidism is for children and idiots and other assorted weaklings. And if you eat fewer calories you will be less fat, it matters little, if at all, where the calories come from.
Again, the most counterintuitive claim of all here is that the poor have it sooo good in this country. It's counterintuitive because it doesn't make any damn sense. Underlying all conservative economic thought is that the poor are privileged and the wealthy are put-upon. It's so brazenly contradictory and mean-spirited that I guess it has the effect of turning people's brains off so they buy into it.
Most poor people in this country have so much food to eat that they're fat, they have a roof over their head, a smart phone, new shoes, cable television, a computer hooked up to the internet, and enough spare cash to buy booze, cigarettes and drugs.
I love when you spin around so much that you get caught up in these crazy narratives. This is the underlying conservative assumption?
How can it even apply to conservative economic thought? Here's the controversial conservative argument you can target: They make bad decisions. There's little chance they will ever make good decisions. If they do make good decisions, it won't be because they've had more money thrown at them. The rich are rich and relatively healthier because they make smarter decisions.
Not because they're able to afford organic kale and cage free chicken. You would not believe how stressful it is to be on public aid. There are about fifteen different programs with different requirements often changing from month to month , and a small mistake in paperwork can lead to a cascade that stops your benefits for 3 months before the bureacrats sort out what happened.
You live in constant fear that you will have too much savings, and get kicked off SSI, or that you will have too little savings, and will get evicted from your SRO. Responsible saving isn't merely discouraged, it's forbidden. Moreso than symptoms for the one that are capable of working. Red Rocks Rockin 3. Healthy eating is cheaper than junk food any day of the week and twice on Sunday, and I ought to know because I grew up near the poverty line for most of my childhood.
You just have to have a basic knowledge of cooking and how to make enough for leftovers. It's even cheaper if you get the frozen fruits veggies, which are just as healthy. The reason poor people here are fat isn't because of cheap junk food, it's because cooking a nutritious meal takes effort and planning, and they either lack the mental acuity or desire to do that. When I was a bachelor in Memphis we would often end up having to eat red beans and rice for the last week of the month because we were all broke and had to make rent.
So we would put on a big pot of beans and rice. We'd also stop by the local bakery and buy day old bread to go with it. Wasn't very tasty, but it was what you did when you were out of money. But, but, but those evil corporations are creating food deserts, denying the poor access to healthy food!
It's not that the stores don't carry it because it's not profitable since poor people don't choose to buy healthy food! They're forgoing profits so they can hurt the poor! Damn those evil rich people! The only reason there are what liberals call food deserts is because of low demand in an area and secondly because of crime. If there was enough demand the extra secusrity could be afforded. The cheapest food is not the least healthy.
If you are really poor, the food you can afford is actually pretty nutritious. I'm talking about staples like rice, beans and vegetables. The one thing that real poor people tend to drop from their diets is meat. You are right a lot of poor people do get fat because they eat unhealthy foods.
The processed foods and junk snacks, though, are not the only thing they can afford. They are cheap, tasty and convenient though. And yet, the vast majority were healthy and strong. I wonder how Tony accounts for the survival of the billions of people in the world who are generally much poorer than even the poorest Americans. I like the way that the one possibility it's absolutely impossible for you to consider is that stupid people with poor impulse control will be likely to overeat.
It's got to be "the role stress plays in obesity". Poverty is another government pathology, particularly the brand of socialist government you advocate. Produce at Walmart is cheap, plentiful, and not at all what you progtards imagine it to be as far as looks. When you worry all day about where your next meal is going to come from, I bet you do a lot of stress eating. Because for them "the poor" are smelly brown people on TV that you only claim to care about as a social signaling exercise, not people you actually spend time around trying to help.
I'd also like to point out that I would rather subsidize low wage workers than just giving money away to people who are sitting at home doing nothing? If they are working a low wage job, most of them will eventually learn enough to get better jobs and no longer need to be subsidized. In fact, I'd like a program where companies that were willing to give starter jobs to people with no skills, would be able to hire at less than the minimum wage. That would give them an incentive to hire more low skill workers and get them on the roadway to getting better and better jobs.
Unpaid internships are only OK when they are at a large media company. All others are evil plots by the nasty people at big corporations. You'd understand that if you weren't a poor hating, top hat and monocle wearing right wing nutsack. Why doesn't the Fed Gov sign all the welfare recipients up for one of these programs where they can make US 93 Dollar Hour and they would never see another poor day in their lives?
Even the 90 year old legless people that the fatherless Tony says that make up the welfare rolls do do this. It's the General Theory of Liberalism again: Europe and Asia might guarantee more sick days, maternity leave and vacation days, but typical salarymen there work like bees and ants in a colony. Companies crack down on idle chit chat and wasting time which is social media in the US. Total integration into the company's culture becomes part of your existence.
I occasionally apply to these retail positions but my artsy degree and 1. Plus, I can't speak Spanish. These Walmart workers are lucky to have these jobs.
If your spouse also works or you're still living with your parents, you can learn to budget and make it. That would depend on what you used the student loans for. If you paid for an education in STEM, finance or a marketable skill, you will be fine. If you took out loans to pursue the hobbies of the rich, such as art history, drama, or grievance studies, you wasted a large pile of money. What is the response by The Left to the fact that military families are, in certain circumstances, on Foot Stamps and other benefit programs?
Is the Federal Government deliberately underpaying service-members for risking life and limb, and what does The Left intend to do about it? He has had time to contact Michael Sam the first openly gay football player and th guy that was the first openly gay nasketball player.
Amazing how libertarians can see this except when arguing for importing millions of illegals. Hypocrite, thy name is libertarian. Raising wages so the employees can buy more stuff from the companies they work for, which have raised their prices to compensate for the increased wages. It sounds unbelievable but you wont forgive yourself if you don't check it out.
For information check this site. Wages are bound to go up. For the simple reason that living costs are starting to skyrocket. The FED has injected untold trillions of dollars of liquidity into the economy since mostly by purchasing illiquid mortgages of unknown quality. While banks didn't lend out those dollars for years because the economy was in the crapper whom were they to lend to exactly?
That'll put upward pressure on prices, wages, etc. Liberals believe that ppl are poor, because they are being deprived. What deprives them, however, is the ever shrinking value of work, the result of the transfer of wealth to owners by cheap money policies designed to ameliorate the problem.
My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do, www.
Government forcing a private company WalMard, Boing to pay their workers so much is fascism. If that's what we want, then OK, but government do not stop at that one item.
Remember the "crash" of ,8? That was the direct resut of government controlling private means of production by forcing lenders to loan to those who could not quailfy under earlier rules, this led to a rapid increase in home prices, easy "I make this much a month" quaifying, HUGE debt to income ratios and loan to value rates. It all collapsed, didn't it? And government are the best judges of economics? Millions of individuals making billions of independent economic decisions free from coercion is what makes a healthy economy.
It is what built this nation to the largest, most prosperous, innovative, and generous ever to exist. Apparently some of them are writers. You get paid for this, right?
Seems that incentives don't have nearly the effect that you and I would like to believe. Very most likely, yes. The businesses that Walmart and it's ilk have driven under for lack of cheap Chinese crap to sell, would some, not all, true reopen the week after - and they'd need workers.
They'd need them right now, as well. Right now comes with a premium attached. Or so they used to say. But then came Walmart. Who's this "we," Kimosabe? See Tony and shreek. They also donate a greater percentage of their income to charitable causes, on average. There may be better examples of putting one's money where one's mouth is, but I doubt it.
How can a man be so ignorant of a subject that he once wrote a half decent book about? The rent income is where the money comes from to do the maintenance on the rental properties. Even with that, the prices for doing repairs and maintenance were not kept from increasing.
The gall of this guy. He knows this is bullshit. And he writes it anyway. An entertainer who was awarded a Nobel Prize, which I consider a travesty. Go over to HuffPo where there are people who are actually stupid enough to click that link. His reasoning is as follows: The Earned Income Credit is to me, precisely what Friedman proposed many years ago.
Part of that was the phony oil "shortage" and starting the oil futures market. And round and round it's gone for nearing 50 years. The only way out of this is complete ruin. The only way out of this is complete ruin This.
We are 17 Trillion in debt. I think we ran out of other peoples money a LONG time ago. I'm still not sure I like it better than "Ass sex, cocktails, and Mexicans. Dammit, I'm late again. The tag line should be: Why not have both cocktails and pot? They can be leeches and be responding rationally to incentives, you know. If he was a woman with kids she would get double the 35k. It came in an email and I don't have a link. Here is the summary at the end.
The millions of people statement isn't mine as my post shows. Where did I say it earns no money? Words are weapons to manipulate, not a means to accurately represent reality. Remember, doublethink, or in this age often as high as quintuplethink. Life is about choices Tony. The richest country on earth should strive a little higher than "no starvation. I see that in no way equivalent to the argument that welfare breeds sloth.
I see what Mr. Hinkle is trying to do, but I agree with your assessment. The left is mad at Walmart because they're making obscene profits off the back of their workers Sort of. All he cares is that his agenda wealth redistribution, government control and expansion gets advanced The left wants to destroy private ownership of the "means of production". The labor theory of value. Marx, Lenin and Mau would be proud. I don't know about conservatives.
I don't much care for that, either. Because the typical Walmart worker is the breadwinner for a family of 4! The solution is charity, freely given. I'm guessing that the word "family" would make you puke even more than the word "charity"? I know, I've seen Tony rant about the insanity of taking care of your own family before.
He appears to embrace being unwanted by his trolling here. Maybe it makes him feel at home. And that scares Tony. Tony's father abandoned him when Tony was a young boy. He is mad at the world. But why choose that system when a safety net makes everyone freer, Tell that to the people who are forced to pay for it the market fairer, Children want things to be fair. Adults understand that justice is not always fair. If instead I have government do the stealing for me, you have no where to go to get justice.
So social justice is in fact not justice at all. All in the chase for a high level government appointmenet. Krugman was dishonest way before that All powers possessed by the government have to be delegated to it by individuals.
Do I individually possess the moral right to enslave sarcasmic to feed Tony? Tony I have an honest question for you. You said companies exploit the safety net by paying low wages and having government pick up the slack Would you not agree that Walmart hires people that nobody else would hire?
Not really sure what you mean by "wrong again. As Hinkle points out "Hence Walmart and other low-wage employers probably reduce the total amount of social-welfare spending in the U. I'm pretty sure you don't know what the term "social Darwinism" means. That is an incredibly immoral standard of judgment to apply. One could make a good case that it's explicitly evil. Tony doesn't care about means. And the ends always seem to be zero-sum in his book. Pure utilitarianism is pure evil.
It could be, if it wasn't fucking retarded. And they have every right to be, since they were the ones who were robbed to pay for it. It is amusing how well Tony fits neatly with the stereotypical Marxist. It's even more amusing how he denies being a Marxist; "don't shackle me with your labels man". Aren't you the last person who should be complaining about lecturing? Sometimes I feel like Frank Grimes.
The origin story would begin with my birth, one snowy, bitterly cold January in I had been scheduled to be born on Valentine's day, but I had resolved not to let that happen.
Also, the surgeon's pants fell down when I was born. I think it was an omen. That, sir, is brilliance. It guaranteed I would get one of the leftover cheese danishes. One time this bewildered guy came in and asked for a Whopper. I said "Dude, this is McDonalds. Then the manager told me I should have suggested a Quarter Pounder. For the sake of claiming they were discouraging dependency on the dole, politicians were willing to risk deepening dysfunction in the lives of poor kids.
And Tony, it is not only Congress that can expand the welfare state. I wonder how much Wal-Mart pays in taxes compared to public assistance recipients. Whenever I hear the old lie about starving poor people, I am reminded of Thomas Sowell's takedown of hunger stats: And then I get the prog fire hose: Poverty and all, it's a beautiful country: Issue 2 - Origin Story Continues!
There is no doubt about it, you're an interesting man. I don't always pimp blogs, but when I do, I prefer to pimp my own: Fine, but you agree that it is impossible to be starving and fat at the same time?
You agree, I hope? Are you saying the fat poor people in America are also malnourished? It's the only place on earth where crooks run TO the police.
Tanzanians are mostly receptive to socialism, but they are also very socially conservative. Here they don't quit their jobs. They just go on disability after unemployment runs out.
He said above that Conservative policies cause people to starve. Maybe if those poor people had to like get a job and like work and stuff they wouldn't be fat. What the fuck is stressfull about having a government guarranteed income every month? They've got it soooo tough because there are rich people out there to envy. It's really hard for those of abysmal ignorance to understand much at all. This is caused partly because the cheapest food is also the least healthy Bullshit.
This Buying real food and cooknig it is cheaper than McDonalds and of course better for you. Even the ones that drank and smoked a lot looked a lot more vigorous than most Americans. It is amazing how little is needed to keep a person healthy. It is ridiculously easy to get cheap food that is good for you.
Pelosi defended paying her interns less than min wage. This excessively unbalanced intragenerational capital flows and caused the welfare state to start cracking.
Obama is a world-class dolt. Nancy Pelosi is weapons-grade stupid. Harry Reid is at once a hateful bag of spite and thoroughly convinced of his own intellectual superiority. These are the people who brought you the economic collapse of And these people, who are flush with unearned wealth and who wield power without merit, are the ones who would take Wal-Mart away from the very people they claim to represent.
One, perhaps oblique, point: Sam Walton hated Main Street merchants. It went a far way to being the point. They took the incredibly cheap products of industrialization and marked them up so as to put them on par, price-wise, with the expensive products of handwork and artisan production. Industrial production should provide the benefits of wealth to ever-lower sections of the population as demarcated by income.
You can do it the same way you would for example manage the common parts of an apartment building, or a neighborhood. Where I live land in a suburban division often comes with a share in a common parcel, to which is entailed the whole common infrastructure.
This way owners can enjoy the shared benefits and be held responsible for shared costs. In fact, the Waterschap is organized somewhat that way. The lease income partially pays for the pumps…. Its effects on New Orleans and Louisiana generally are failures of collectivism, not results of its absence.
That made giving help a game of catch-up, and that never works in managing a disaster. So a lot of our thinking is informed by that. In general, overconsumption to a libertarian is nowhere near the same problem it is to a macroeconomist.
To a macro, overconsumption is a population buying more material goods than it really should. To a libertarian, overconsumption is… made up worrying. The only corner case is if the person is somehow being forced to buy, say, at gunpoint, or while being mind-controlled. Thou shalt buy health insurance, for example. Government-enforced purchases are the problem libertarians are far more likely to find themselves arguing about with non-libertarians.
Advertising is typically brought up. Playing on your moods is arguably worthy of concern. Now, instead of having to worry about whether some guy is selling you something under false pretenses, you now have to worry about whether the government is doing the exact same thing.
What is true is that libertarians generally view overconsumption as an aesthetic problem with private choices, not as a Grave Social Problem about which Something Must Be Done. I have no doubt that I could not live there on my current reduced income. Your anecdote is borne out by statistics on comparative purchasing power.
Europeans are a bit less prone to the opposite error because they watch American TV, but even so they often fail to grasp the implications. Yachts, luxury homes, fine food, whatever.
A lot of them are typically buying things that increase their income further, anyway — namely, stocks and other business investments. Thanks for the praise.
Do you mean someone is buying ugly things? An endless supply of knick-knacks and other effluvium? I doubt you meant buying ugly things. Money is only useful for two things — spending and saving. Saving is really just deferred or indirect spending. You put your money in a CD, they lend it to me as a mortgage, I buy a house.
When people spend or save there is a big benefit. If I buy a candy bar, the candy bar maker benefits. If I save, then the new homeowner benefits. For sure, money can be spent less than optimally. I can pay a guy to dig a hole, and then pay another guy to fill it in. However, most people are pretty careful to spend their own money pretty carefully. Digging holes and filling them in is the purview of these types of people. A lot of them live in Washington DC. But, a lot of them live in the boardroom of big corporations, usually fat and happy protected by various legislative capture, patents and other legal monopolies.
Sorry, I made a mistake, there is something else you can do with money. You can also pile it up in the back yard and set it on fire. Here, let me help you.
I think I can get this all in one bag. But everything you suggest is still: You want to live here, you pay the taxes. So, if the Waterschappen Water boards are non-collectivist, then neither is the rest of the Netherlands. And the great flood of came only 8 years after WWII. The parts flooded had been bombed during the end of the war.
The first thing the government did after the floods killing people was strengthen the defenses to an unprecedented level. Contrast this to New Orleans, where the local community was completely unable to prepare their levies for a common storm that had been predicted to appear with a high probability. In another note, yes, Europe is expensive. High income goes with high prices. Precisely because if people earn a lot, you pay a lot for services.
And housing is expensive because space is expensive too. Within a radius of km from my home you find London, Paris, Hamburg and a lot of sea. That is a Million people in a triangle with sides less than km. And a lot of industry and traffic. The Netherlands are with Java and eastern China the region with the highest population density in the world.
Yes, space IS expensive. Still, the US Americans spend a lot. I understand they can do that because they borrow a lot. That is a lot of money. Money the lenders did not spend and after , they actually lost in the American default. The places are different , which is why it drives me absolutely screaming bonkers when Europeans try to tell us how to live.
Um, how to put it… I am not trolling and not trying to ignite the usual kinds of political debates, but at some level it is unfair not to count medicine, healthcare and college education in it. So just saying that this is missing from the full picture. When I went to college, I lived in the international dorm, and by far the most common comment I heard from people over seas was they had no idea just how damn big the US really is. Life is very different when you have a low population density.
Americans live in densities that are simply alien to Europeans. What they consider normal, we consider crowded, often unbearably so. We have abundant space, except in a few places, abundant food, abundant opportunity. That colors our thinking. That suits most of us just fine: If they see it as still valuable, they will try to sell it or just hoard it in the cellar for later use in a weekend home. This part is unsurprising I think. In practice Eastern European gypsy gangs scare away the local poor, haul stuff home, and sell it.
Actually I would applaud their business sense and diligency, this generally would be a good thing, except that they can get really violent in claiming all the stuff theirs and guarding it with axes and threats and suchlike. Small, subtle, but significant difference. If I have to rent a van, I rather buy used stuff than going for freebies, as then it is in a better condition.
OK but what does a national average of pop density actually predict? Bicoastal Urban America has a comparable pop density to Western Europe. I mean, just logically, the low pop density of red-state and purple-state America also means only a limited number of people enjoy these circumstances which I envy like hell and thus they have a limited influence in the economy, in politics, in the stuff that matters.
Actually, those people who live in higher pop density areas have a disproportionally higher influence as on one hand in politics they are closer to the seats of power and on the other hand in economics they can engage in a sharper, more specialized division of labor generally generating more wealth. Our electoral system is such that a single vote in Oklahoma can carry more weight than a single vote from California or Massachusetts.
We also have 2 senators per state, regardless of the size or population of that state. Just to be clear, we also have nothing resembling a free market in healthcare either. One of the reasons why, as shenpen mentioned, that healthcare is so darned expensive. Getting back on topic: Healthcare is so expensive because we have nothing resembling a free market. The one here in Fairmont is run by the local medical center, itself an affiliate of the Mayo Clinic, so I would assume it provides top-notch, if basic, care.
Of course it is — but out of ten times I see that said on Reddit, eight times it is not a European but a left-liberal American college student. My point is, these things are a political views issue, not a which side of the pond issue. Another and important related part is that left-liberal American culture and general Western European culture are only superficial similar — somewhat similar goals but very different motivation. The Americal Left sees the welfare state as a moral issue — empathy, decency et al.
The average German or Austrian sees it as a safety issue. The Americal Left sees American system as a too selfish, the average German sees it as too risky. The American Left sees the welfare state as a restoration of social justice, taking from the rich exploiters, giving to the poor exploited. The average German sees it as an insurance for his own personal security, not really as a compassionate, charitable thing for the poor only.
This is why there is hope over here yet — the risk-avoidant subset of collectivism can prove to be more easy to bring to see reason as the moralistic subset of it. While moralistic collectivism is a lot more problematic issue as it does not really listen to experiences and facts. I think this is right. The creation of the Federal Reserve in put an end to the roughly once-a-decade pattern of bank panics, but in return we got much larger disruptions like the Great Depression and the crash of And, when things go wrong, no one calls the Dutch.
So much for collectivism as a solution. A non-libertarian would say that better regulation would have prevented this. Would your answer be to let the wall street banks burn in their own mistakes and see if something smarter rises up from their ashes? What Taleb does is destroy the consequential argument for not letting them burn. Someone once told Milton Friedman that in Scandinavia, there was no poverty. Ken Burnside said, way up there: Nobody I care about, versus saving money and time.
Are there any arguments for local-qua-local consumption that pass the laugh test from an economic viewpoint?
In the context of mass-produced goods, that is — local production of things that would otherwise have to be imported makes perfect sense, if the transport is more expensive than the relative cost of local production.
On one hand, ignoring the savings and loan crisis increased the ultimate cost by at least an order of magnitude. On the other hand, if the financial system implodes…. It could tear the US apart. OK… deawk — double entry bookkeeping using awk scripts — that was the fastest I have ever put together an Open Source project. Their warehouse workers were able to crank out the extra trailer loads without breaking a sweat. On the other hand, if your local store provides other benefits with your purchase support, advice, training etc then it might make sense to pay the higher price.
What Taleb does is destroy the consequential argument for not letting [failed banks] burn. There was a kernel of truth in it: The Tea Party could oppose it on free market system grounds letting risky businesses actually fail, and indicating that early, is the only true limiting factor on business risk ; the Occupy movement could oppose it because that would stick it to the rich. Free market does NOT mean completely unfettered big business.
It only means removal of arbitrary authority-imposed fetters. The analogy carries over to other rights popularly claimed by Americans. Well, you can bleat all you like. Rob Cockerham conducted an informal experiment a few years ago — he and his buddies built a list of various items sold by both stores, and went price hunting.
I came away believing it was largely a wash the dominant factor for any given person ends up being which store is closer. And this is a good thing, because you might have never bought a pop-tart from them ever before, but you might want a lot of them when a hurricane is coming:. As the saying goes, amateurs talk strategy, pros talk logistics. This is one of the more interesting questions to me over the last few years. I selected a vague method of saying exactly this; my bad.
The rich can buy groceries, cars, etc. Either way, you want the rich to take that income and do all they can with it. Now, the problem with the total number of jobs that are available is a real problem. Some people might get hungry in a shorter term point of view.
In fact, we had a wonderful opportunity to perform a major fix on the banking system just recently, and the morons in Washington decided to bail them out instead. And they did so by massively inflating the currency, and hiding the inflation under a blanket of business terror, where nobody lent and nobody borrowed our of fear of the overburdensome government regulation, which means that M3 did not inflate at the same rate. If they had done nothing? Talk about cleaning out the chaff! It would have been quite a conflagration no doubt, but fire and destruction are often very cleansing.
In terms of the Fed, really there are two steps needed — change the requirements on the fed from keeping inflation low and jobs up to simply making the currency predictable. Something else that would be nice, not just for the fed but for all government agencies too — require them to have a public audit according to GAAP ever year, and publish the results to us, the poor public that pays for it all. Would that fix everything? No of course not.
But it would surely be a heck of a lot better. Oh, BTW, I read recently that Gingrich has suggested that the OMB, the guys who predict how much legislation would cost and how much tax revenue it would raise, be replaced by five competing private companies, and that every year the two with the least accurate predictions get fired. I really love this idea. OK, I basically totally agree with you. I sort of screwed up. There is no immediate need to unwind the fractional-reserve banking system.
There was apparently a real danger of that happening in and we keep getting hints that we are still on the brink of it happening at any time. Funny thing is if you talk to your Wal-Mart shoppers many of them think these bozos are doing the best job that can be done. Part of that is that traditional news and entertainment outlets continue to treat every left liberal pronouncement like it was delivered from a burning bush.
Still it is bemusing, disheartening, etc. I am from a blue state so this crap is our daily gruel. When it comes to war with the left they are always looking for a deferment. We seem to make good sparring partners. However, I have to leave. I am signing off for the evening. Not only that, but — to put it cynically — in some cases, paying people to effectively sit around is also paying them to not riot and loot for lack of jobs.
Not really true, as Fannie Mae and Freddie Mac greatly expanded mortgage securitization, including securitization of sub-prime mortgages. What percentage of subprime mortgages were held by Fannie Mae and Freddie Mac, broken down by year?
Now, everybody knew informal and gray markets exist, but I think this is fairly surprising that they are actually so widespread. Now if this informal markets thing works so well, my idea is that it should perhaps change the strategy of libertarians and their sympathizers. I mean just generally, the obvious strategy of every political movement is to change formal rules. But actually another strategy could be trying to keep the cost of breaking formal rules down. This occured me because of WM clinics mentioned here Which surprised me a bit.
These are of course legal, but generally if and when regulations push the price of healthcare or any other service high people could try to set up unregulated gray-market off-the-books clinics. The problem is, of course, that in such circumstances lawsuits cannot be used to settle conflicts and thus they tend to settled with violence, see, drug-dealer gangs.
This example may become more relevant to First World conditions in the near future. The big-state model is hurtling towards systemic collapse even as we watch — the Eurozone crisis is one indicator, the rising wave of state and local bankruptcies in the U.
The best deal it can offer in the future is drastically reduced services coupled with a crushing tax burden as governments struggle futilely to get out from under an impossible mountain of debt. Can someone explain what is the problem with fractional reserve banking?
To my accountant mind it seems OK. You put in a dollar deposit, the bank has on the liability side, and on the asset side as hard cash. When they lend it out, they convert the liquid asset to a less liquid one. When you want to take out your money, they have to liquidate that asset i.
Naturally if there is a bank run and cannot sell it fast enough or their assets are toxing and can only sell them very cheap, they can run out of reserves and thus there is a big risk. But is there anything inherently wrong with risking borrowed assets? I know that there are arguments that commercial banks create money out of thin air just like central banks do but I think there is something wrong with these arguments: The liability side consists of own capital reserves and money owed like deposits.
If you have dollars own capital and dollars deposit you cannot lend out more than unless you take in a loan — the balance sheet would not balance. I mean, literally, giving out a loan debits means posting something to the debit side of a debtor asset account, you have to post something to the credit side of some other account. You can credit an asset account you got less cash or you can credit a liability account get more capital. So the fractional part simply means out of that dollars lent out only is actually yours and the rest lent out on the behalf of the depositors.
This is not money creation as far as I am aware. Am I getting something wrong? Never forget the fundamental law of society: Volcker and Reagan managing to kill inflation and the Reagan income tax cuts killed off most of this.
Apparently this is already happening in Greece — see this article fromthe New York Times. What is interesting is that the government is kind of encouraging it. What is also interesting is that they are creating their own kind of currency. The problem with the black market is that it is black. Since it is illegal, it means that the transaction costs skyrocket.
But the fact that it can still compete tells you something about how burdensome the government is on the legal market. The problem occurs when multiple banks are involved. Lets say I bank at bank A and you bank at bank B. Now you and I both withdraw and spend the money. It came from the fact that the same money can be used several times.
However, the fractional reserve banking system depends on the fact that most people want to leave their money in the bank most of the time. Of course, if everyone wants their money at the same time, then the whole system collapses. This is, as you know, called a run on the bank. They also have the FDIC which guarantees deposits. This means that if there is a run on a bank, the federal reserve taxes everyone in the country to pay for sufficient liquidity to allow everyone who asks to get their money.
This stealth tax being via devaluing the currency. Nearly all banks provide a non fractional reserve account — it is called a safe deposit box. The problem with FRB is the government runs it.
If bank deposits were insured privately then the insurance company would demand appropriate soundness. Customers would demand or not quality insurance, just as they do with life insurance and car insurance. The other big problem is that the Fed has an unconstrained ability to inflate M1 at the front by printing money. The client banks of the Fed have limits on how much money they can create, the Fed does not. This being a typical government mantra — do as I say, not as I do.
This second issue lead to the dreadful bailouts that prevented a crash from cleansing the system. And so, instead of a crash and recovery, we have an insipid sickly, just barely breathing economy instead. Most money moves electronically. Cash is no longer king, in fact, these days cash begins rotting the moment you pull it out the ATM. In the case of present day America, we also have a situation where the government has dumped gazillions of regulations, most of which are not even known, many are not even written.
This means that CEOs and boards of directors have become fearful of the future, and refused to make all but the most conservative of investments and loans. Uncertainty and legal jeopardy tend to have that effect. Because of this conservatism, the inflation of M3 off the vastly inflated stocks of M1 has not happened at the same rate because business are not borrowing or investing.
This means that there is a relative decrease in this commercial money relative the cash money. Which means that the inflation that usually results from excessive printing of money has been hidden under a blanket of fear. To put it another way, the administration has bought low inflation at the price of low growth. First of all the bank cannot lend out more money create more assets than deposits and other foreign capital like taking out a loan from another bank plus own capital otherwise the balance sheet does not balance.
When we both spend the money the bank either has to sell the debt, or take out a loan on its own. In both cases somebody else is not spending money on goods so it balances out.
The system can collapse indeed but not because money way created. So of course it is risky, but risky only in the sense of renting out cars in the winter. That is the central banks job, to create fake value: The fix is simple — write contracts so that it is clear that deposits are not cash, it is not promised at all that you can withdraw all your deposit at any time.
Sometimes you must wait until the bank sells some of the loans it given to other people. Given that the typical, normal use of money is not to take withdraw it in cash but to pay with it electronically or transfer it, this does not have to inconvenience the customer much — f. Or the bank can bridge it over with a very short term loan from somewhere else. This actually more or less happens this way.
If I use e-banking to transfer money during the night it does not happen automatically but on the next business day and not because the software cannot do it but because bank has to get cash by selling some debt assets. I borrow your pen. Ken borrows your pen from me. You want your pen back. Suppose it is a pen as fungible as money is so you are OK with getting a different pen back, although slightly upset for the wait time but on the plus side, you also got a free coffee as an interest on your borrowed pen so it is not really a bad deal despite the wait.
Now of course if Ken broke the pen there will be all sorts of problems between us four. But this is a market problem and contractual problem, not really a fundamental flaw in the system. You can also forbid me contractually from letting others borrow the pen I borrowed from you. In banking this looks like renting a safe in a bank and stuffing cash into it. Perfectly doable, except for the negative rate of interest inflation, safe rental.
Basically if a current account pays interest, even though a bad one, one should not reasonably except that it is as liquid as cash. The Fed was created, as Eric wrote above:. Sound banks, that is ones that did not loan out more than they had, did not crash. But this kind of failure is not some fundamental flaw, it is just like an agency who borrows cars from people who are afraid to drive in winter, rents them out, and then their customers wreck some cars on the icy roads.
There is a problem, yes. But not a fundamental problem a good contract, a healthy market, and a healthy lawsuit system cannot correct. Just a detail-level problem that can be fixed fairly easily.
This just distracts attention from the real problem: BTW — Firing is the correct response to a bureaucrat or politician who uses the statue of liberty strategy. We all have a claim of ownership on the pen, which is to say, we all claim we own a pen.
Most of the time it is fine. Fractional reserve stationary made three magic pens out of one. But only one of them has any ink. If the Fed had not taken over this insurance function, technology would have arisen to make our banks much better through consumer choice.
However, because of the fed and various other regulatory agencies and when it comes to banks there are an absolute alphabet soup , it is really difficult to complete in the banking industry unless you can buy lots of expensive influence.
That regulation does not fix the problem — it has exactly the opposite effect. It provides a veil of protection for the big powerful banks, so that they can do dumb stuff because the cost of entry is so high.
How the heck did Bank of America not collapse in a huge heap due to its most dreadful mismanagement? Because, on their asset sheet along with a bunch of toxic mortgages were a couple of senators and a handful of house members. And of course with all that regulatory capture is the government payback. Police access to your most private records. Sorry, I missed this in the first pass. You concern is so abstract it is hard to answer in any meaningful way.
Many banks would have folded, their assets would have been scooped up by the better run banks. The people who screwed up the big banks would have lost their jobs. Many people would have lost their homes, and instead of paying mortgages would have to rent instead — perhaps smaller places, perhaps in a worse part of town. Many people who have assets would have bought these defaulted houses, using mortgages from the newly reconstituted banks.
They would then have rented them out to people. The release of capital and resources from badly run companies would have allowed it to be used in more productive ways when reallocated after a bankruptcy. The government would have three trillion dollars less in debt. The recession that would have followed would essentially be caused by the transaction costs of transferring assets from bad users of capital to good users of capital. However, when you take off a band aid it might seem to make sense to carefully try to dance around every little hair, slowly releasing the adhesive.
However, practice tells us that a good swift yank is the best strategy. It stings a little, but afterward, you can get on with your life. I am glad Jessica Boxer explained fractional reserve banking rather than I I was the one that brought up the concept. I pull a number out of my ass: Can someone attack or defend this idea: A good million a really good million government employees loose their jobs whether it is a good idea or not.
One good thing about Canada is that we just simply do not have the tax base and we have way too much debt to be creating all sorts of off-budget secret agencies all over the world to prop up this guy and torture these guys. I am aware that the world economy generates wealth fastest when there is a country that can be the world's police man. They also created, I believe totally outside the powers granted by the constitution, many, many agencies that can fine you or seize your property with no recourse to trial by jury or appeal.
In the US and probably basically most other countries Congress creates an agency and gives it the power to make rules and create penalties. I meant a legislative command and authorization for an agency of the government to write regulations which has not yet been completed.
An example would be Dodd-Frank financial regulation bill, which calls for lots of regulations, the large majority of which have not yet been written by the various alphabet soup agencies. Now that the US is well down the road towards becoming a police state, you folks have secret laws and police with secret powers. Canada is just as bad, in its bland, conforming way.
We can no longer say: Check the graph in this article. Now, in your head roughly approximate the integral of these two rates. The difference is dramatic. Dramatic money supply inflation in a time of very moderate price inflation. You clearly know a lot more about this than I do. So, to ask my question again, if fractional reserve banking does unwind, am I correct in saying that everyone gets 8 or 12 cents on the dollar?
Or, they would, but instead, they get either huge money supply inflation, or, more likely, New-Dollars on a to-1 basis? It is so bad that it needs to be made explicitly unconstitutional although arguably it already is.
And if anyone dares complain that it would be too much work for Congress to properly consider that much legislation each session, well DUH. Think how much work it is for us to keep up with it? John Stossel has a cart loaded with boxes of paper his crew wheels into the studio for him to use as a prop whenever he wants to show the sheer volume of regulation created every year by various USGOV agencies.
It needs to be difficult to make laws. The Framers did their best to make it tough, and Congress does everything it can to short-circuit the process. The problem is the money supply being artificially inflated. German money hyper inflated because their post war debt was denominated in gold.
American debts and obligations are almost all denominated in dollars. You can just print more dollars. Printing more dollars causes inflation though it can be hidden inflation as is currently the case. However, it does not cause hyper inflation, which is the result of an exponential feedback loop.
But I doubt there will ever be any one hundred trillion US dollar notes. David Cay Johnston current column: David Cay Johnston at wikipedia: Not to mention that Congressmen can also pass laws they know are not constitutional but know the Supreme Court will strike down. So with Congress, you have a crowd of people. Combine that with the fact that most congressmen view their jobs as a stepping stone to other jobs, you have a situation where no one in Congress has an incentive to take responsibility for problems or to defend it as an institution.
It makes you realize, even if you disagree with it, just how courageous Paul Ryan is for putting forward his Road Map. Plus as Dave Barry has pointed out: You figure that if you were elected, you would try to do the right thing for regular people rather than special interests. All your time is taken up by special interests. Not always correct in an absolute sense — Dave Barry is a humor writer — his comments are more true than correct.
A few years ago the Taxpayer League of Minnesota held a demonstration during a rare Saturday when the legislature was in session.
Why I love Walmart despite never shopping there
That's why I love the idea of Walmart, and will defend it against its enemies. .. 60% of the world's illegal drugs And a lot of industry and traffic. Poking at Google Maps, I find it's about comparable to driving from Hamburg to Naples. If someone is conspiring to kill people, this is quite obviously a. No slave, child, indentured labor, or human trafficking may be Walmart employees are prohibited from engaging with suppliers in any discharges, toxic substances and hazardous waste Handle, store and transport hazardous waste in a safe and . discrimination lawsuits do not occur in the first place. The conspiracy monger's YouTube channel is on the brink of a blackout Colorado; and Newtown, Connecticut were broadcast on terrestrial radio, But this time, YouTube did something different: It sanctioned Jones' channel news, Google and Facebook began to cut off search traffic and monetized.