{"id":1046453,"date":"2018-09-26T13:27:03","date_gmt":"2018-09-26T13:27:03","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=1046453"},"modified":"2018-09-26T13:27:03","modified_gmt":"2018-09-26T13:27:03","slug":"revealed-americas-economic-freedom-2","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1046453","title":{"rendered":"REVEALED: America\u2019s Economic Freedom"},"content":{"rendered":"

By Brian Maher<\/a><\/span> <\/p>\n

This post REVEALED: America’s Economic Freedom<\/a> appeared first on Daily Reckoning<\/a>.<\/p>\n

The Economic Freedom of the World: 2018 Annual Report <\/em>is out.<\/p>\n

On the following metrics of economic freedom nations are ranked:<\/p>\n

Size of government, property rights, legal system, soundness of money, freedom to trade internationally \u2014 and regulation.<\/p>\n

(Bear in mind, the report relies on data through 2016).<\/p>\n

Where do these United States rank among the nations of the Earth?<\/p>\n

How economically free is the Land of the Free?<\/p>\n

Answer shortly.<\/p>\n

But first a check on markets, free or otherwise\u2026<\/p>\n

As expected, the Federal Reserve raised its target rate another 0.25% today.<\/p>\n

Stocks traded in green territory much of the day, fully expecting the announcement.<\/p>\n

But shortly after Jerome Powell’s 2:30 press conference, markets took a sudden fright (more on which tomorrow).<\/p>\n

The Dow Jones ended the day 107 points lower. The S&P was down 10. The Nasdaq, seventeen.<\/p>\n

Gold could find no bid today \u2014 down six dollars and change to $1,198.90.<\/p>\n

But let us revisit the question of the day:<\/p>\n

Where is America ranked in the world’s index of economic freedom?<\/p>\n

Since 1996 Canada’s Fraser Institute has issued its annual Economic Freedom of the World <\/em>report.<\/p>\n

Since the initial report America’s commercial republic occupied the front ranks of economic freedom.<\/p>\n

It took second place as recently as 2000, for example.<\/p>\n

But after the great gale of 2008 blew on through, American economic freedom went under a cloud\u2026<\/p>\n

Sixth place in 2009, by 2012 the U.S. was nearly out of the top 20 \u2014 18th place.<\/p>\n

With \u201csoundness of money\u201d being one of Fraser’s criteria, we should not be surprised\u2026<\/p>\n

Quantitative easing was in full swing.<\/p>\n

The Federal Reserve had the printing press going every hour of the 24, seven days of the seven.<\/p>\n

Meantime, the Keynesian quack cure of \u201cborrow and spend\u201d issued forth in heavy doses.<\/p>\n

Post-crisis government spending went amok\u2026 and gaping budget deficits opened before us.<\/p>\n

In all, the United States government borrowed $11.6 trillion between 2008 and 2018.<\/p>\n

And the national debt swelled from $9.5 trillion to today’s $21 trillion.<\/p>\n

In 2008 the U.S. debt-to-GDP ratio was 64%.<\/p>\n

Its current debt-to-GDP ratio stands at 106% \u2014 that is, the national debt exceeds the entire $19.9 trillion economy.<\/p>\n

Economic freedom?<\/p>\n

\u201cThe United States used to have one of the freest economies in the world,\u201d as explains Ian Vasquez, co-author of the related Human Freedom Index.<\/p>\n

\u201cIt used to be a two, three or four, and then government started to grow [and] spend more,\u201d he concludes.<\/p>\n

In reminder, the United States dropped clean to 18th place in the Index of Economic Freedom by 2012.<\/p>\n

Now an entire decade has passed since the great storm.<\/p>\n

Is American economic freedom rising\u2026 or falling?<\/p>\n

Once again, precisely where does the United States rank in the roster of economic freedom?<\/p>\n

The answer may stun you:<\/p>\n

Sixth place.<\/em><\/p>\n

Sixth place is not second place\u2026 nor is it first place.<\/p>\n

But it is far from 18th.<\/p>\n

We therefore lift a modest hymn in praise of rising American economic freedom.<\/p>\n

Excelling the United States in economic freedom are, in descending order:<\/p>\n

Hong Kong, Singapore, New Zealand, Switzerland\u2026 and Ireland.<\/p>\n

Falling in behind the United States are Georgia, Mauritius, the United Kingdom, Australia and Canada.<\/p>\n

In proof that economic might and economic freedom are not synonyms, China \u2014 the world’s second-largest economy \u2014 rings in at 108th place.<\/p>\n

Would it surprise you to learn that starving Venezuela finished dead last?<\/p>\n

Economic freedom in Venezuela is reduced to the freedom of the belly to growl and the heart to break.<\/p>\n

Though in fairness\u2026 North Korea and Cuba yielded insufficient economic data for Fraser to even evaluate.<\/p>\n

Coming back home, and please do, the United States wins specific high marks for \u201csound money\u201d and \u201cregulation.\u201d<\/p>\n

The answers are close enough at hand\u2026<\/p>\n

Since December 2015 the Federal Reserve has taken to the path of rising interest rates.<\/p>\n

Since October last, it has also been working down its post-crisis balance sheet. The business is scheduled to continue through 2020.<\/p>\n

Meantime, President Donald Trump has \u201cundertaken the most extensive regulatory reduction ever conceived\u201d \u2014 his words.<\/p>\n

A gust of rhetoric perhaps.<\/p>\n

But according to data from George Washington University’s Regulatory Studies Center, \u201csignificant regulatory activity\u201d declined 74% compared with Obama’s first year.<\/p>\n

We might add that tax cuts have put more money to the service of economic freedom.<\/p>\n

All in all, a sweet dish.<\/p>\n

But do not forget: Money borrowed and spent today is money that must be repaid tomorrow \u2014 with interest.<\/p>\n

Tax cuts unmatched by spending cuts thus represent a false and temporary freedom.<\/p>\n

Government debt has swollen $1.46 trillion under Trump \u2014 a 7.3% increase.<\/p>\n

The Congressional Budget Office (CBO) projects trillion-dollar deficits for years on end.<\/p>\n

And debt service grows costlier as interest rates rise. Ultimately it threatens to swamp the entire budget.<\/p>\n

New York Times<\/em>:<\/p>\n

\n

Within a decade, more than $900 billion in interest payments will be due annually, easily outpacing spending on myriad other programs. Already the fastest-growing major government expense, the cost of interest is on track to hit $390 billion next year, nearly 50% more than in 2017, according to the Congressional Budget Office.<\/em><\/p>\n<\/blockquote>\n

\u201cIt’s very much something to worry about,\u201d warns C. Eugene Steuerle, co-founder of the Urban-Brookings Tax Policy Center.<\/p>\n

\u201cEverything else is getting squeezed.\u201d<\/p>\n

We applaud any and all advances in economic freedom.<\/p>\n

But come the next crisis, we fear it too may get \u201csqueezed.\u201d<\/p>\n

Jim Rickards has spelled out the monetary elite’s plans for the next crisis\u2026<\/p>\n

The abolition of cash, the freezing of bank accounts, negative interest rates, \u201chelicopter money\u201d \u2014 all are likely on the menu.<\/p>\n

The last crisis dropped American economic freedom to 18th place.<\/p>\n

Only now has it recaptured sixth spot.<\/p>\n

Given the potential intensity of the next crisis\u2026 the wait may be far longer\u2026<\/p>\n

Regards,<\/p>\n

Brian Maher
\nfor The Daily Reckoning<\/em><\/p>\n

The post REVEALED: America’s Economic Freedom<\/a> appeared first on Daily Reckoning<\/a>.<\/p>\n

…read more<\/a> <\/p>\n

From:: Daily Reckoning<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Brian Maher This post REVEALED: America’s Economic Freedom appeared first on Daily Reckoning. The Economic Freedom of the World: 2018 Annual Report is out. On the following metrics of economic freedom nations are ranked: Size of government, property rights, legal system, soundness of money, freedom to trade internationally \u2014 and regulation. (Bear in mind, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[366],"tags":[],"class_list":["post-1046453","post","type-post","status-publish","format-standard","hentry","category-dailyreckoning"],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1046453","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1046453"}],"version-history":[{"count":0,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1046453\/revisions"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1046453"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1046453"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1046453"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}