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Maine Governor Paul LePage’s ‘Sense on Cents’

Posted by Larry Doyle on January 9, 2013 9:19 AM |

“Investment capital goes where it’s welcome and stays where it’s appreciated.”

Do you ever get the sense that many a politician believe that issues are too complex for the general public to understand? I would turn that around and maintain that basic economics are often not understood by the politicians themselves.

I would go one step further, though, and state that many issues are unnecessarily complex because the payoffs and cronyism embedded in the issues need to find a home in the legislation.

What does America need?

We need to eliminate the payoffs and cronyism. We need to incorporate basic economic principles, aka ‘sense on cents’, back into our American fabric. We can find some of these principles way outside the crony capital of Washington DC in a place where people are fond of saying, “you can’t get there from here.” Where is this? The great state of Maine where Governor Paul LePage recently uttered the simple but powerful statement highlighted above.

Let me reiterate, “Investment capital goes where it’s welcome and stays where it’s appreciated.”

No doubt about that. Why are volumes across most equity exchanges and other market sectors down so much?

Our markets overseen by regulators in the hip pockets of the industry do not welcome and protect investment capital. Our economy and nation suffer as a result. We cannot think that the balance sheet of the Federal Reserve and other central banks will finance our nation in perpetuity. Unless and until we return to basic economic principles — as highlighted by LePage’s statement above — and real regulation practiced by unencumbered real regulators, America’s future will not be what it could be. Here is a brief 5-minute clip of some old fashioned, down home, common ‘sense on cents’ as delivered by the governor from the great state of Maine.

Navigate accordingly!!

Larry Doyle

Isn’t it time or overtime to subscribe to all my work via e-mail, an RSS feed, on Twitter or Facebook.

I have no business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.

  • LD

    The governor is also able to work across the aisle as evidenced by this initiative,

    Two of the state’s top political leaders are vowing a bipartisan effort to make government ethics, accountability and transparency key issues in the upcoming legislative session.

    Republican Gov. Paul LePage and House Democratic leader Emily Cain are responding to a national report that gave Maine government an “F” for its potential for corruption.

    Maine ranked 46th in the “State Integrity Investigation” by three nonpartisan groups that was released in mid-March.

    Cain, the Democratic House leader who is running for a Senate seat from Orono, has proposed two linked initiatives that she hopes will lead to government ethics reform.

    Cain said Tuesday she will ask her fellow lawmakers to form a bipartisan, joint select committee to consider ethics reform and report out a bill in the legislative session that begins in January, 2013.

    “While the report didn’t reveal that Maine is corrupt, we have a lot of things to look at to do better,” Cain said, adding that she believes key areas of concern include nepotism, cronyism, legislative financial disclosure, government transparency and citizen access to information.

    Governor, Top Democrat Back initiative Linked to State Integrity Investigation

  • Lobstah

    Come to think of it . . . a true classic and only 80 seconds long.

    Which Way to Millinocket?

  • Peter Scannell

    LD, how is it that our banking and non-financial industries in America are sitting on the largest deposits of cash in our history (trillions), yet these very entities have yet to dramatically invest in our country and put Americans back to work? American taxpayers bailed out entire industries in 2008-2009. The government has certainly recouped much more of that investment than was ever thought possible just a few years ago – yet the employment rate in our country remains abysmal at best, with very few prospects of mass investment by these entities for the creation of jobs!

    What do I think?

    I believe the investment return in creating jobs and making something is far less attractive for many of the greedy beasts than just waiting out Fed policies that will eventually raise interest rates (management compensation is returning to all time highs – mom and pop compensation still remains flat for over a decade)

    It’s a war of attrition- and the American family is being held hostage.

    • LD


      All part and parcel of the “financial repression” that is a cousin of the “crony capitalism” that permeates our nation.

      Not exactly healthy but totally indicative of the enormous structural issues within our country.

  • Rick

    a lone voice in Maine….they’ve just elected Elizabeth Warren’s only real competition for jerk off Senate Imbecile of the Year…Angus Dickhead or something like that.

  • Edouard D’Orange

    While I agree with your assessment of what we need for the overall economy, that is, to “return to basic economic principles…and real regulation practiced by unencumbered real regulators,” I don’t think that we will anytime soon. The corporations, elected politicians, regulators, and apparently a slight majority of the voting public all favor the current cronyism, regulatory scheme, bureaucracy, payouts, and corruption (in the guise of unearned benefits, tax breaks and grants). Given the choice businesses will and have chosen crony and regulated markets to ensure a steady product and service market. And voters will maintain the system as long as the voters get theirs, or they remain oblivious and uninformed (and lied to). The majority of big businesses want what we have now and don’t want change.

  • TC

    “Why are volumes across most equity exchanges and other market sectors down so much?”

    Because gone is capacity to manufacture highly-prized securities capable of absorbing capital manufactured out of thin air–whether via the Federal Reserve’s discount window or its extraordinary capital injection programs (QE), as has been the case since ’09, or via a shadow banking system whose virtual money printing operation once enjoyed an infinite multiplier prior to its collapse in ’08. Confidence in synthesized wares whose risks once were claimed by the likes of a discredited Fed chairman to be mitigated by the market will not soon be restored, this no matter how hard the failed academic now running the hopelessly insolvent Fed otherwise tries jolting illusive confidence to life.

    Our present dilemma is diminished capacity to expand the availability of capital without negatively impacting margins. Thus, the world of finance features many a trapped operator with no choice but sit tight and pray for a miracle … say, discovery of benevolent life on Mars willing to backstop the Fed.

    As such, diminished volumes likewise project markets whose players have their eyes firmly fixed on the exits. The only thing capable of preventing an irreversible avalanche of selling in the current climate (that is absent bankruptcy reorganization) are manufactured crises facilitating further consolidation of physical and financial assets, with all attendant, hyperinflationary liquidity injections to facilitate these asset grabs employed. This alone offers any hope the U.S., and the trans-Atlantic more generally, might remaining in a limbo resembling that of Japan over the past 20+ years.

    Outside this possibility are but two alternatives: deflationary debt collapse (and attendant bankruptcy reorganization, no doubt), or a trip down memory lane to 1919-1923 Weimar Germany. In either instance volumes could improve. Yet at what price?

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