Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending
Federalism, Free Markets and the Liberty To Let One's Mind Wander.
I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives
"Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-
Friday, May 31, 2013
Quote of the day....
"You are not supposed to take money away from the competent people and give it to the incompetent so that the incompetent can compete with the competent people with their own money. That’s not the way capitalism is supposed to work."
-Jim Rogers, investor-
Yes, this is what governments do, make capital and savings less productive.
Market failures? The case for or against government regulations...
The reality is that markets adjust and there is a mechanism called tort law that creates an effective regulatory mechanism. However, there is an argument that there are negative externalities (social costs)or the costs including the externalities cost more than the positive impact of free markets. So, some argue that government have to step in to regulate the market.
However, we have also observed seen a couple things when it comes to government intervention, first is that government does not necessarily regulate markets fairly, equitably nor effectively. Secondly, and one he does not directly deal with here is that once we allow government to intervene in markets, that they then use this capacity to regulate and intervene in those areas where they have no business being involved in. Thirdly, and its the secret that no one will ever discuss is given the diffuse information involved in markets it is extremely difficult to measure the inputs and devise a strategy in what needs to be regulated and how to regulate it.
Furthermore, the strongest regulator of markets is a constraint placed by ethical practices on market participants. So the real world constraints on voluntary practices are ethics, common practices, custom and civil liability and these exist before government gets involved.
Walk down K Street, the heart of Washington’s lobbying industry, and look at the directory in any office building. They’re full of lobbyists and associations that are in Washington, for one reason: because, as Willie Sutton said about why he robbed banks, “That’s where the money is.”
The wonder is why the taxpayers put up with it.
But also i think that it inevitably ends on horrific violence. Socialism and the seizure of property and prosperity by an aristocratic and ultimately unaccountable central authority has rarely ended well.
Benghazi, where Americans were attacked by terrorists on September 11th last year, apparently is not important....
Former Democratic National committee chairman Howard Dean considers the controversy over Benghazi a “joke” and “silly.”
“Benghazi is a laughable joke,” Dean proclaimed twice last week in a discussion with Republican National Committee communications chairman Sean Spicer.
“With all due respect, governor, when four Americans die serving this country, that’s not a joke, sir,” Spicer responded.
“Oh, stop it,” Dean said.
Well, if its not that important, then why has the government stonewalled investogators, made up stupid stories about what happened? And why do Democrats say that these deaths and lapses in security and lapses in sending in folks to save our people happen?
I think that in addition to the government being asleep at the switch, somehow, folks think that they have to compromise American security and values to protect the almighty Obamessiah.
Tyrannical governments create enforcers that desire to get ahead by doing its dirty business. As you see from this article, government is not only concerned about a political apparatus such as the amorphous Tea Party but also with religion. The government is concerned about who prays for whom and what they pray about? Whenever has this ever ever been any of their business? But they make it their business. Why?? Governments become hostile to religions since believers do not necessarily go along with the governments desires. Look at China and its hostility to the Falun Gong or other groups. The United States is lumbering towards a less free state where its citizens are property of the State and not free individuals.
The government is is exploring and potentially utilizing new methods to control the people by controlling the press....
the theory that soliciting information can be criminal is apparently now ready for application against the mainstream press. We already know that the president explicitly considers freedom of the press to be only one consideration among several that have to be balanced, apparently according to the priorities of officials in his administration. He told us so just days ago, when asked about the government's treatment of the AP:
Of course, much of what has been known to have been done is against Fox News since the rest of them largely do exactly what the leviathan wants.
But how is that reporters asking questions, in this case State Department contacts asking about the situation in North Korea, illegal? Its quite a stretch to do this but this is where tyranny starts. We are seeing the loss of individual freedom in the US and it won't be pretty.
If the media had acted like professionals in 2012, more of this new information would be old news by now. Voters could have made a decision between Obama and Romney with a fuller picture of how corrupt this administration truly is. By refusing to reveal that corruption, they brought that stain of corruption on themselves.
Legacy? What kind of legacy does am untalented self-obsessed buffoon leave? Fast and Furious, Solyndra, Benghazi, IRS targeting of citizens based on their political leanings, wire-tapping the press, voter fraud and intimidation intervention from the politicized Justice Department; the corruption is unbelievable. And how about the train wreck that Obamacare is becoming. An over-reach of government rights and abilities that hopefully will finally prove how incompetent government is on delivering economic services to the people. But like Benghazi, people will die due to this corrupt incompetence. But it won't be just 4 it will be thousands and thousands.
But the other crime is how compliant the media has been in supporting this idiot. The corrupt can be applied to their behavior over the pat several years. I believe that these people suspended ethics purely due to his skin color as no-one in the media with half-a-brain would ever have given this guy such a pass if he was white. Trust in the media is deservedly bad and trust in government is deservedly falling. I hope that the sheeple in the United States finally wake up to the disaster that they have allowed to happen.
Honestly, these troubles could not hit a more deserving fellow!
I think that Barack Obama thinks that he is the most important and above scrutiny person on the planet that is why....
Stonewalling and lying made political sense before the election, but why they’ve allowed these questions to remain unanswered and to grow and distract is the real mystery. The media seemed interested this week in finding out why and what the White House is hiding. We’ll see how long this interest lasts. Hopefully it’s long enough for the American people to find out the truth and the families of four American heroes killed in the line of duty to get the closure they deserve.
But the reality is he is and never wasn't even remotely prepared nor qualified to be President. But since he is considered racially Black, no one, particularly White people are allowed to question his motives and abilities. This is the quandary that we have gotten ourselves into. He allows things to happen to our nation and then blames it on others. except in this case, when the blame falls squarely on him, he is again incapable of dealing with reality.
The idea that government can create prosperity out of thin air by either printing money or by taking money from one person to give to another is totally preposterous. Previous generations knew this and every time they tried it it ended in disaster. But this is what the world is banking on and since everyone now thinks that government is somehow God, they have a faith in government that it does not deserve. Japan will default on its government obligations and so will both the USA and Europe. Folks will wake up to that once Japan does and there will be no credit allowed back to the dumbass governments.....
Japan is making the same mistakes we’re making … or we’re making the same mistakes they’ve already made – it’s hard to tell.
Either way, the bottom line is pretty simple: You give me a trillion yen and I’ll give you a good time, too.
In order for Abenomics to work, four things have to happen:
Japanese banks cannot hoard money the way big banks have in the US. They have simply got to keep it moving right through to Japanese citizens and small local businesses.
Japanese bond market participants have to be willing to maintain bidding as the Bank of Japan conducts “market operations,” which is Fed-speak for interfering with normal pricing dynamics in an effort to maintain stability. If bidders walk away, the bond market will fail and the government will have to contend with offshore derivatives traders who are already lining up to play the same games they did in Italy, Spain, Greece, and the balance of the EU.
Japanese consumers have to engage. If wages fail to increase, living standards will decline and Abe will be up a creek without a paddle – and yes, I mean THAT creek.
The international banking community has to allow Japan to debase its currency without punitive repercussions. So far the G20 has acquiesced, but their tacit approval doesn’t really mean much. They have no choice but to go along with Japan’s moves. Kuroda, who is Bernanke’s equivalent at the Bank of Japan and Abe’s sidekick, has made it clear he is fully committed to the program, no matter what the West thinks.
Longer-term, Abenomics is a recipe for disaster – have no illusions about that. Japan, as John Mauldin likes to say, is a bug in search of a windshield. No nation in the history of mankind has ever bailed itself out on anything more than a short-term basis by pursuing a course like Japan’s.
In the current world, its a race to the bottom. Governments are all debasing their currencies at the same time and what it will do is make their own people much much poorer. But along with that, we will also have a coarsening of societies and we will also risk the rise of strongmen and other autocratic responses. And its not beyond the USA to avoid these social and political problems.
This video interview encapsulates the problems facing not just the nation but the world. We are in a time where government(s) essentially runs everything and unfortunately we have seen innumerable times in the past that governments have shown to be completely incompetent.
As Fed's Fisher says, "no central bank anywhere on the planet has the experience of successfully navigating a return home from the place in which we now find ourselves." The problem is that not just the Fed, but nearly every Central Bank has painted themselves into a corner and I think will find it politically impossible to take their balance sheets back to normal. This will eventually impoverish many many people on this planet.
Fed's Fisher To Santelli: "This Can't Go On Forever" | Zero Hedge
Its no surprise to me that blue states are more stingy with their money than red states.
The Northeast, with lower religious participation, was the least generous to charities, with the six New England states filling the last six slots among the 50 states.
The study also found that patterns of charitable giving are colored in political reds and blues.
Of the 10 least generous states, nine voted for Democrat Barack Obama for president in the last election. By contrast, of the 10 most generous states, eight voted for Republican John McCain.
Democrats are more stingy than Republicans? Oh my. I am not at all surprised. Democrats think that they are doing something by seizing other people's property and give it to their favored recipients than actually getting their hands dirty and doing it themselves.
Holier than thou Democrats are nothing but silly stoopid hypocrites.
Where are the start-ups? Where are the animal spirits? We have government involved in nearly everything we do making things much more difficult and creating blizzards of sill paperwork and rules to follow. Why bother unless you are totally desperate.
I am part of that 29%. I think that it is inevitable the the US federal government will have to be kept in check not through political means but first through civil disobedience and then if that fails through armed violence. I think that Washington is so out of control that they will stop at nothing to keep gaining power over the people.
Rather than follow Keynes and his followers down all these rabbit holes, let’s ask ourselves: is there a common theme to this nonsense? And there is a common theme. The common theme is that market prices don’t matter. In a system replete with paradoxes, this is the ultimate paradox: “In order to fix the price and profit system, we must subvert it. No free price or profit relationship must be left alone. The price/profit system must be poked, pushed, pulled apart, only to be left in a complete shambles.” The assault on interest rates and currency rates is particularly destructive, but all of this madcap tinkering with prices is destructive.
Is this, then, the essence of Keynesianism, its blind destruction of the price mechanism on which any economy depends, as Mises demonstrated? Yes. But there may be an even deeper essence.
When we think of Keynes’s headline ideas, they have a kind of formulaic quality. You take a long established observation, for example, that over-spending and debt are the road to bankruptcy and ruin, and turn it on its head. No, spending and debt are the road to wealth.
For the Victorians, spending within your means and avoiding debt were not just financial principles. They were moral principles. Keynes, who was consciously rebelling against these same Victorians, described their “copybook morality” as “medieval [and] barbarous.” He told his own inner circle that “I remain, and always will remain an immoralist.”
We are killing ourselves, doing it not only willingly but with verve. I see this and the comment by Keynes that he is an immoralist and this is what I see in my nation, a nation that has lost its moral compass. The governments destruction of information through the elimination of the price mechanism is an attempt to try to fool people to do what they would not have done. It is not just immoral and self destructive but criminal. We will all pay for this. Some with our lives.
First it will be Japan, then Europe and finally the United States. All 3 will have significant financial crises centered on indebtedness at the central government level. Governments will impoverish their people and although I have faith in the ability of people to rebound from crises (es??). I do not have faith the governments will act in a responsible way that serves their own peoples.
Central banks are no longer just central banks but a tool for economic and social policy. However, as Israel is grappling with, reserves are invested in low risk securities that at this time of zero interest rate policies as created by themselves, no longer want to invest these same reserves at those rates. So now, from some kind of nebulous risk/reward standpoint, since we have no idea what the real market value of money or savings really are, they have convinced themselves that they need to move out the risk spectrum into equities.
All I know, is that central banks generally are among the stupidest investors in the planet. Selling oodles of gold decades ago at market lows and recently buying it back at market highs. And now we are completely reliant upon these dopes to save the global economies? God save us all.