Here comes the yuan devaluation

Notice that whenever an economic prediction turns out to be correct these days, it’s almost never made by a Keynesian or a Monetarist:

“Technicals say it is time to bail out. Cut equity expose and prepare for rout. US depression looking likely. While China’s 2009 implosion could get ugly.”

Mr Edwards — who is of an “Austrian” persuasion, ie hates excess debt — was one of the very few economists to see this whole crisis coming, and to issue warnings clearly and emphatically (unlike others who now claim to have been seers, but in fact hedged). He said interests rates would be slashed to zero and that bond yields would fall to the lowest in history. All this has occurred.

Those who listened to the Voxonomics interview with Passport may recall his strong doubts about the Chinese economy some six months ago. Meanwhile, one of the few economically sane NROniks, Brian Riedl, shows some of the huge flaws in the latest Keynesian “stimulus” plan:

Policymakers are basing the “stimulus” bill on economic models that wrongly assume every $1 of government spending increases the economy by approximately $1.60. Is it really that simple? By that logic, debt-ridden, big-government countries like Italy, France, and Germany should be wealthier than America. And why stop at $800 billion? Such logic suggests unlimited prosperity could be guaranteed by the government borrowing and spending $800 trillion. Should America be basing such costly decisions on these types of economic models?

This should be easy to compare to the last contractionary go-round. If anyone wants to run the numbers, go for it. Just compare federal spending from 1932 to 1940 to the GDP and see if there is a $1.60 increase in the latter for every $1 increase in the former. In the meantime, we’ll be tracking that this year just as we’ve tracked NAR’s 2008 housing prices.

Meanwhile, Republican protests sound more than a little thin based on their performance over the last eight years:
“I just can’t tell you how shocked I am at what we’re seeing. You know it’s clear that they’re moving on this path along the flawed notion that we can borrow and spend our way back to prosperity.”

The joys of immigration

This video may well serve as a prophetic metaphor for the ultimate fate of those shiny, secular societies in which the multiculturalists and progressives placed such faith. Although, let’s face it, it is kind of inspiring to watch the uniformed police retreating in abject fear.

I have little doubt, however, that the European nations will eventually deal with its Muslims in much the same way they dealt with other unwanted immigrants in previous centuries. It’s important for Americans to remember that the Islamic population in Europe only averages around 4 percent, a fraction of the 15 percent Hispanic population in the United States, and anti-immigration forces are already much stronger in Europe than they are in the USA.

The literary fraud

More evidence that Obama didn’t write his own books:

The belief that moribund institutions, rather than individuals are at the root of the problem, keep SAM’s energies alive.
– Barack Obama, “Breaking The War Mentality”

The highly indicative sentence above comes from an 1,800-word article Barack Obama wrote for Columbia’s weekly news magazine, Sundial, at the height of the KGB-generated anti-nuke craze in March 1983. Obama was 21 at the time. The sentence nicely captures Obama’s skill as a writer. The noun, “belief,” and the verb, “keep,” don’t agree – one of an appalling five such noun-verb mismatches in the essay – and the punctuation is fully random.

The President-elect is almost surely a complete fraud. There’s growing evidence that he has been from the very start. He doesn’t possess a shred of genuine literary talent, much less intellectual accomplishment; it’s hilarious to see how his supporters who are forced to confront the reality that the absence of a National Merit scholarship proves that he’s not Mensa material try to argue that he must not have taken the PSAT at his elite college prep school. No doubt they’ll argue that his bumbling press conferences in the future are nothing more than proof of his difficulty in speaking down to the level of the sub-genius.

I would say that this administration is going to be more fun than a barrel of monkeys, but no doubt some oversensitive soul would take offense at that. So, I shall simply say that I am utterly delighted that there will be magical negritude in the White House rather than bellicose neoconnery.