This seems suspect to me. The Debt Clock is timed to cross the $16 Trillion mark during prime time news on the first day of the Democratic National Convention.
Monetary theorists of the Keynesian School are not all that worried. This theory sees the US Debt as the foundation for the world monetary supply and that paying down the debt would actually hurt the world economy.
The number that really scares me is the $120 Trillion in unfunded liabilities. The unfunded liabilities includes items like $21 Trillion for the prescription drug liability.
I suspect Keynesian theorists look favorably on the unfunded liabilities as well. Investors in the biotech sector will pay higher prices for pharmaceutical stocks knowing that the government will dish out $21 trillion for drugs.
My sympathies lay with the Austrian school which sees fault in the great nexus of contracts that make up the world economy. If things prove a house of cards, the economy could crash even worse than it is today.
Tuesday, September 4, 2012
Sunday, July 22, 2012
Audit the Fed
The enemies of free society seek to use the tools of the free society to destroy the free society.
This idea of structuring the capital system so that the capital system would become top heavy and collapse was the primary theme of Marx's Das Kapital.
Das Kapital was the single most influential economics text in history. Marx' Das Kapital lays the foundation for both Communism and CAPITALISM.
The term "capitalism" came in vogue after Das Kapital. Much of the thought about modern capitalism comes directly from Marx. and it is fundamentally flaw.
It is the most absurd thing EVER! We've let the enemies of the free society define our financial system. The result is that the financial system keeps collapsing and undermining our efforts as a free society.
It is pure idiocy.
It is cultural suicide.
Since antiquity the rogues of the world have known that the easiest way to destabilize an enemy is to debase their currency.
Conservative are such nimrods for their unwavering defense of Marx's distortions about how a financial system should work. It makes me want to scream.
The Federal Reserve, created in 1913, was produced by thoughts on how a ruling elite can control society through the manipulation of capital. The reserve attempts to control society through a fiat currency that it gradually devalues.
Since its inception, the Federal Reserve has devalued the currency about 99%. A 1913 penny had about the same purchasing power as a 2013 dollar. Add this to all the bankruptcy of our modern economy and the problem is much worse.
Fortunately, Ron Paul sees that the Federal Reserve magnifies business cycles. For the last several years, the good doctor has been calling for Congress to Audit the Fed.
According to Campaign for Liberty, the bill will hit the floor on July 24, and that it will need to get a 75% vote to pass.
It is worthwhile to contact your representative to ask that we audit the federal reserve.
The enemies of the free society seek to destroy the free society by debasing its currency. In response, the defenders of the free society need to stand up and defend its currency.
This idea of structuring the capital system so that the capital system would become top heavy and collapse was the primary theme of Marx's Das Kapital.
Das Kapital was the single most influential economics text in history. Marx' Das Kapital lays the foundation for both Communism and CAPITALISM.
The term "capitalism" came in vogue after Das Kapital. Much of the thought about modern capitalism comes directly from Marx. and it is fundamentally flaw.
It is the most absurd thing EVER! We've let the enemies of the free society define our financial system. The result is that the financial system keeps collapsing and undermining our efforts as a free society.
It is pure idiocy.
It is cultural suicide.
Since antiquity the rogues of the world have known that the easiest way to destabilize an enemy is to debase their currency.
Conservative are such nimrods for their unwavering defense of Marx's distortions about how a financial system should work. It makes me want to scream.
The Federal Reserve, created in 1913, was produced by thoughts on how a ruling elite can control society through the manipulation of capital. The reserve attempts to control society through a fiat currency that it gradually devalues.
Since its inception, the Federal Reserve has devalued the currency about 99%. A 1913 penny had about the same purchasing power as a 2013 dollar. Add this to all the bankruptcy of our modern economy and the problem is much worse.
Fortunately, Ron Paul sees that the Federal Reserve magnifies business cycles. For the last several years, the good doctor has been calling for Congress to Audit the Fed.
According to Campaign for Liberty, the bill will hit the floor on July 24, and that it will need to get a 75% vote to pass.
It is worthwhile to contact your representative to ask that we audit the federal reserve.
The enemies of the free society seek to destroy the free society by debasing its currency. In response, the defenders of the free society need to stand up and defend its currency.
Wednesday, April 11, 2012
Canadian Penny
In March, the Canadian government ordered their mint to stop production of the Canadian penny. The US Penny is soon to follow.
The Federal Reserve (established in 1913) created a policy of institutionalized inflation. Institutional inflation favors big finance over small main street shop. The 1913 penny had about the same purchasing power of the 2013 dollar. There has been close to a 99% devaluation of the dollar. Basic postage cost a half cent in 1913. Apples were about a penny a pound, etc..
Rather than wating for the mint to discontinue the penny, I think Main Street merchants should use the devaluation of the penny as an opportunity to show displeasure with a financial system that favors big finance over the people.
On the site RoundDown.US, I advocate that businesses keep only quarters in the change draw and start rounding cash transactions down to the nearest quarter.
If the bill is $12.34 and the patron gives a $20.00; the merchant would give $7.75 in change. Rounding down means the merchant absorbs the cost of rounding.
Rounding down costs an average of 12 cents a transaction. This is lower than the credit card fee.
This technique is really easy. All you have is quarters; so your clerks will give out zero, one, two or three quarters.
Rounding down to the dollar is even easier. To round to the dollar, the clerk has only paper currency. You simply count out the dollar amount. Rounding down to the dollar would cost an average of fifty cents per transaction.
The Federal Reserve has devalued pennies and nickels to the point they cost more to produce than their face value.
The United States will follow Canada's lead and discontinue these coins in the near future.
Merchants can wait for the government to force a change or be proactive and just start making the change on their own.
Customers will appreciate being freed of hassles of small change.
Being proactive and rounding down before the mint's actions will allow Main Street merchants to stand with their customers and say express displeasure with financial policies that favor large institutions over small See RoundDown.us .
The Federal Reserve (established in 1913) created a policy of institutionalized inflation. Institutional inflation favors big finance over small main street shop. The 1913 penny had about the same purchasing power of the 2013 dollar. There has been close to a 99% devaluation of the dollar. Basic postage cost a half cent in 1913. Apples were about a penny a pound, etc..
Rather than wating for the mint to discontinue the penny, I think Main Street merchants should use the devaluation of the penny as an opportunity to show displeasure with a financial system that favors big finance over the people.
On the site RoundDown.US, I advocate that businesses keep only quarters in the change draw and start rounding cash transactions down to the nearest quarter.
If the bill is $12.34 and the patron gives a $20.00; the merchant would give $7.75 in change. Rounding down means the merchant absorbs the cost of rounding.
Rounding down costs an average of 12 cents a transaction. This is lower than the credit card fee.
This technique is really easy. All you have is quarters; so your clerks will give out zero, one, two or three quarters.
Rounding down to the dollar is even easier. To round to the dollar, the clerk has only paper currency. You simply count out the dollar amount. Rounding down to the dollar would cost an average of fifty cents per transaction.
The Federal Reserve has devalued pennies and nickels to the point they cost more to produce than their face value.
The United States will follow Canada's lead and discontinue these coins in the near future.
Merchants can wait for the government to force a change or be proactive and just start making the change on their own.
Customers will appreciate being freed of hassles of small change.
Being proactive and rounding down before the mint's actions will allow Main Street merchants to stand with their customers and say express displeasure with financial policies that favor large institutions over small See RoundDown.us .
Monday, March 12, 2012
Inflation v. Fuel Policy
The Republicans had a winning issue: Repealing ObamaCare.
2012 would have been an easy win if any Republican candidate presented a viable alternative to PPACA.
Instead, all we got was nonsense.
For example, candidates would yell "States Rights" in one sentence and demand that we be allowed to buy insurance across state lines in the next. (Insurance is a legal product, so buying insurance across state lines violates state sovreignty)
I really like Herman Cain. His candidacy burned out with an absurd 999 gimmick.
I also favored Newt Gingrich ... his campaign is flaming out on an absurd claim that he could return the price of gas to $2.50 a gallon.
It is true that Obama has an energy policy that is hostile to oil. It is likely that Obama's policies have increased the cost of oil.
However, the Federal Reserve has been pursuing an inflationary monetary policy.
The United States uses a credit economy. In a credit economy (fractional reserve lending) money is made by a combination of printing money and lending.
With fractional reserve lending, banks only have a fractional reserve for each dollar loaned. This magnifies the monetary supply.
Because banks aren't lending and people aren't eager to take on new debt, we have not yet experienced the full brunt of the inflationary monetary policies.
Because energy is in demand, inflation will show up in energy first, then in and in wages last.
It is possible that the Federal Reserve will pull the trigger on interest rates at the perfect moment to create price stability. Our loose monetary policy could easily result in an unexpected doubling of prices.
Because we don't know how much of the current high gas prices is the result of money policy, how much is the result of international tension and how much is the result of energy policy, it is absurd to make claims like Newt's claim to $2.50 gas.
In conclusion, the government should not be in the position of setting wage and price controls. I was disappointed in seeing Mr. Gingrich pursue the line he did with the $2.50 gas claim.
2012 would have been an easy win if any Republican candidate presented a viable alternative to PPACA.
Instead, all we got was nonsense.
For example, candidates would yell "States Rights" in one sentence and demand that we be allowed to buy insurance across state lines in the next. (Insurance is a legal product, so buying insurance across state lines violates state sovreignty)
I really like Herman Cain. His candidacy burned out with an absurd 999 gimmick.
I also favored Newt Gingrich ... his campaign is flaming out on an absurd claim that he could return the price of gas to $2.50 a gallon.
It is true that Obama has an energy policy that is hostile to oil. It is likely that Obama's policies have increased the cost of oil.
However, the Federal Reserve has been pursuing an inflationary monetary policy.
The United States uses a credit economy. In a credit economy (fractional reserve lending) money is made by a combination of printing money and lending.
With fractional reserve lending, banks only have a fractional reserve for each dollar loaned. This magnifies the monetary supply.
Because banks aren't lending and people aren't eager to take on new debt, we have not yet experienced the full brunt of the inflationary monetary policies.
Because energy is in demand, inflation will show up in energy first, then in and in wages last.
It is possible that the Federal Reserve will pull the trigger on interest rates at the perfect moment to create price stability. Our loose monetary policy could easily result in an unexpected doubling of prices.
Because we don't know how much of the current high gas prices is the result of money policy, how much is the result of international tension and how much is the result of energy policy, it is absurd to make claims like Newt's claim to $2.50 gas.
In conclusion, the government should not be in the position of setting wage and price controls. I was disappointed in seeing Mr. Gingrich pursue the line he did with the $2.50 gas claim.
Tuesday, January 31, 2012
Nothing Says Long Term Relationship like Silver
Nothing says long term relation like gold and silver. In this age of economic uncertainty, silver coins make a wonderful Valentines Day gift.
The whole point of coins is that they contain a known amount of precious metal. Old US coins are popular because they contain a known amount of metal.
The new Liberty Dollars contain exactly one ounce of silver. So, they are even easier to value. Every household should have a few hundred dollars in silver on hand in case there is a disruption in the monetary system.
Silver tends to hold its value. In 1913 an ounce of silver would buy a romantic dinner for two.
Silver is currently (1/31/2012) trading at around $33. Three ounces of silver bullion coins costs around $100. (Coin dealers tack on shipping costs and a premium). I tend to buy coins on eBay. Here is my list of online coin shops.
If you buy silver at a local coin dealer, tell them you have absolutely no interest in numismatic values and just want silver coins ... they will give you a better price.
The whole point of coins is that they contain a known amount of precious metal. Old US coins are popular because they contain a known amount of metal.
The new Liberty Dollars contain exactly one ounce of silver. So, they are even easier to value. Every household should have a few hundred dollars in silver on hand in case there is a disruption in the monetary system.
Silver tends to hold its value. In 1913 an ounce of silver would buy a romantic dinner for two.
Silver is currently (1/31/2012) trading at around $33. Three ounces of silver bullion coins costs around $100. (Coin dealers tack on shipping costs and a premium). I tend to buy coins on eBay. Here is my list of online coin shops.
If you buy silver at a local coin dealer, tell them you have absolutely no interest in numismatic values and just want silver coins ... they will give you a better price.
Subscribe to:
Posts (Atom)