California/National Economic Forecasts for 2011: Pessimist#1

The above link is to a New Year’s post by Karl Denninger over at The Market Ticker.

I read his posts frequently for two reasons:

1) He states his position clearly and his point is easily understood.

2) He grades himself and is not afraid to admit an error.

A quick look in the news shows he is already right in several key areas:

Unemployment has not fallen, oil is already over $100 a barrel, unrest and the possibility of coup is roiling the mideast, Europe’s debt crisis is not over and inflation is not under control.

If you follow his columns you will know that he believes we are inside a huge bubble that is about to burst. Credit/debt is out of control and unsustainable and there is so far no sign that the parties in Washington have any real intention of doing the necessary but terribly painful  job of reining in the banks, controlling the fed, downsizing the government, and otherwise cleaning house.

You  can count him among the critics of our Chinese “friends” and apparently among those who think China’s rise to world domination is over-hyped and that they will soon collapse. China has a long history of internal turmoil and such surmises have history behind them. Something more to watch.

I see it all as related to the collapse of true public service, the decline of journalistic ethics and the self-destruction of the judiciary. As I have been saying we have political leaders who are agenda driven and that agenda has nothing to do with voter’s wishes. The news media is both incompetent and agenda driven. Finally, the judiciary is so activist it is hard to find a judge willing to make a decision based on the law as written.

The folks at Legal Insurrection have a post up that says, in a nutshell, that the legal “industry” is increasingly making decisions that are good for the industry and not for the country.  You can read that piece here:

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