China’s Bubble – This could get ugly real fast

Posted by Jason | Posted in Economics | Posted on 27-04-2010

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Keep an eye on this. Because China, like the US, doesn’t have a free market when it comes to interest rates, there is a good chance they will pop their real estate bubble, and when they do, it’s going to set off round two of the global financial crisis. Of course, that will set off the Fed to print even more money, which will fuel inflation even more.

Should I go buy my wheel barrow now?

Asian stock markets traded mostly lower Tuesday, with markets in China and Hong Kong weighed by fears Beijing may introduce further tightening measures aimed at curbing the property sector.

via China Down on Tightening Fears – WSJ.com.

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Your Garden Is A Problem For The System

Posted by Jason | Posted in Miscellaneous | Posted on 27-04-2010

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If you think you can always grow your own food when food prices sky rocket with inflation, think again. Government is already making sure you cannot get outside the system. Government must always make sure you are trapped within the system.  This is very similar to Obama going after people who move their money overseas to avoid our oppressive tax system. Instead of realizing that our tax system is driving money out of the country, our government attacks the people who have the money. The government never realizes it’s the problem, but why would it when it’s a coercive monopoly.

With the Fed holding interest rates extremely low by printing money, there is going to be inflation. I know personally my grocery budget has doubled in the past decade, and we are not consuming any more food. In order to save money, more and more people are planting gardens, but this takes away government’s power and the big farming industries’ profits. How is government going to keep Monsanto’s bribes coming if it cannot deliver? Your garden is becoming a problem for them, so it’s time for them to pull out the guns and tell you to stop. Oh I know, the government isn’t going to shoot you for your garden, but they are going to fine you over and over until you submit. If you don’t submit and pay your fines, they will imprison you.

http://www.youtube.com/watch?v=9JnwqqSdtD4

liberty-cafe-vlog.

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Would Jefferson Approve Of Our Uprising?

Posted by Jason | Posted in Government, History | Posted on 24-04-2010

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In a letter to Edward Carrington, before the Constitution was written, Jefferson talks about the up risings in America during Shay’s Rebellion.

DEAR SIR, — … The tumults in America, I expected would have produced in Europe an unfavorable opinion of our political state. But it has not. On the contrary, the small effect of these tumults seems to have given more confidence in the firmness of our governments. The interposition of the people themselves on the side of government has had a great effect on the opinion here. I am persuaded myself that the good sense of the people will always be found to be the best army. They may be led astray for a moment, but will soon correct themselves. The people are the only censors of their governors: and even their errors will tend to keep these to the true principles of their institution. To punish these errors too severely would be to suppress the only safeguard of the public liberty. The way to prevent these irregular interpositions of the people is to give them full information of their affairs thro’ the channel of the public papers, & to contrive that those papers should penetrate the whole mass of the people. The basis of our governments being the opinion of the people, the very first object should be to keep that right; and were it left to me to decide whether we should have a government without newspapers or newspapers without a government, I should not hesitate a moment to prefer the latter.

You have to love the way Jefferson puts things. “…whether we should have a government without newspapers or newspapers without a government, I should not hesitate a moment to prefer the latter.” shows how Jefferson did not trust government, and that the only way for government to remain accountable was to have a press that informed the people of exactly what the government was doing on their behalf. Considering all the backroom dealings, the couple thousand page bills, and Obama shutting the press out of meetings with foreign leaders, can we say that we even have a government with newspapers (open information)? I would have to say we do not, and as such would tend to agree with Jefferson that I would prefer newspapers without a government. At least then, I could get information and make choices myself, instead of slime ball politicians making them on my behalf, and then not letting me know how those decisions were made and what those decisions entail.

But I should mean that every man should receive those papers & be capable of reading them.

Jefferson must have never thought about what the public schools would end up doing to our literacy rate.

I am convinced that those societies (as the Indians) which live without government enjoy in their general mass an infinitely greater degree of happiness than those who live under the European governments. Among the former, public opinion is in the place of law, & restrains morals as powerfully as laws ever did anywhere. Among the latter, under pretence of governing they have divided their nations into two classes, wolves & sheep. I do not exaggerate. This is a true picture of Europe.

Here Jefferson sure sounds like an anarchist. He argues that public opinion is just as powerful as laws. Could it be happiness is not derived by the so-called tranquility created through government, but instead by the free choice of how to live your own life? Public opinion does not require force. There is no gun pointing at you. Instead you are choosing to abide by public opinion in order to get along with your neighbor and to be accepted into society. No one is forcing you. You could just as easily choose to not abide by public opinion and either work to change the opinion or setup a society based on new public opinion. It is by this free choice that Jefferson believes that societies without government enjoy “an infinitely greater degree of happiness”.

Cherish therefore the spirit of our people, and keep alive their attention. Do not be too severe upon their errors, but reclaim them by enlightening them. If once they become inattentive to the public affairs, you & I, & Congress & Assemblies, judges & governors shall all become wolves. It seems to be the law of our general nature, in spite of individual exceptions; and experience declares that man is the only animal which devours his own kind, for I can apply no milder term to the governments of Europe, and to the general prey of the rich on the poor. The want of news has led me into disquisition instead of narration, forgetting you have every day enough of that. I shall be happy to hear from you sometimes, only observing that whatever passes thro’ the post is read, & that when you write what should be read by myself only, you must be so good as to confide your letter to some passenger or officer of the packet. I will ask your permission to write to you sometimes, and to assure you of the esteem & respect with which I have honour to be Dear Sir your most obedient & most humble servt.

via Edcarringtonlttr.

Wonder what Jefferson would think of our government today? Would he consider a government who runs up a $13 trillion debt that will enslave it’s citizens wolves? Would the people who are looted to pay for enslavement programs for the poor and the poor who are enslaved be considered sheep? How about the money stolen from tax payers to hand over to wealthy bankers? Does that qualify our governors as wolves? And are we sheep when our governors stick guns to our heads and tell us what we must buy?

Surely, Jefferson would see that our government has become the wolves, and we the people have become the sheep.

But, he would speak glowingly of the people who are now rising up and becoming attentive once again, for it is this spirit that Jefferson cherished.

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New $100 Bill to Make Sure There Is Only One Fake In Town

Posted by Jason | Posted in Economics | Posted on 22-04-2010

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The U.S. government wants you to accept its new Benjamins: its new $100 notes. It hopes that counterfeiters are less pleased.

The Treasury Department unveiled what it calls “the next generation one hundred,” a redesigned $100 bank note to stay ahead of counterfeiters. The new $100 notes will be available on Feb.10, 2011.

By now, the government has become intimately familiar with the process of rolling out new money.

via U.S. Unveils New $100 Bill – WSJ.com.

We know they have become intimately familiar with the process of rolling out new money. We are reminded at the gas station and the grocery store almost daily.

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Obama to Demagogue His Masters

Posted by Jason | Posted in Government | Posted on 22-04-2010

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In order to make it seem like the government and the banking sector aren’t one in the same, President Obama is rolling out his teleprompter to deliver a speech blasting Wall Street for acting like a bunch of ignorant drunks. Who cares that the Fed was supplying the booze.

From the Wall Street Journal

President Barack Obama will return to Manhattan’s Cooper Union on Thursday, two years after a campaign speech that laid out his vision for Wall Street, to castigate a financial industry that he will say has too often forgotten the ordinary Americans who have suffered from its reckless irresponsibility.

OK, I know what you’re thinking. Here is the leader of our government blasting Wall Street for forgetting “ordinary Americans  who have suffered from its reckless irresponsibility”. This is the same government who forgot about the ordinary Americans almost a century ago. This is the same government who tried manipulated the real estate market by promoting “everyone should own a home”, which led to millions of American losing their homes and millions of others left to pick up the pieces. This is the same government who’s robbed the middle class by devaluing the currency over 30% just in the past decade. This is the same government who’s created an unsustainable empire that’s led to wars, terrorism and the hatred of America. Oh, and this is the same government who is enslaving us and our children to foreign debt holders who will have us working as slaves to pay them back. Oh please, President Obama, tell me how the evil Wall Street banks forgot about ordinary Americans.

The speech comes at a pivotal moment in Senate negotiations over a sweeping measure to re-regulate the financial industry. After trading barbed accusations, senators from both parties now say they are near a deal that would preserve the framework of Mr. Obama’s plan. By appearing just two miles from Wall Street, Mr. Obama hopes to raise the political pressure and seal the deal.

“A free market was never meant to be a free license to take whatever you can get, however you can get it,” Mr. Obama will say, according to speech excerpts released Wednesday night. “That is what happened too often in the years leading up to the crisis. Some on Wall Street forgot that behind every dollar traded or leveraged, there is family looking to buy a house, pay for an education, open a business, or save for retirement. What happens here has real consequences across our country.”

What an ignorant a-hole. Behind every dollar is nothing. That is the problem. Our government has become our modern day money changers. Unfortunately, while the people can be fooled, the free market can’t. It will blow your house of cards down eventually, which is what happen. Wall Street and the mortgage industry is not a free market. Obama is either ignorant or flat out lying. These are two of the most regulated industries we have. In a free market, you wouldn’t use monopoly money backed up by nothing. In a free market, you wouldn’t have government pushing people to buy homes with taxes credits and incentives. In a free market, you wouldn’t have bailouts and the FDIC basically telling the banks to do what they want because they’ll print more money if needed.

As he has done several times in the year-long debate, the president will implore industry executives to call back the lobbyists engaged in “furious efforts” to thwart or water down his legislation.

“I am sure that many of those lobbyists work for some of you,” he will say, according to the excerpts. “But I am here today because I want to urge you to join us, instead of fighting us in this effort. I am here because I believe that these reforms are, in the end, not only in the best interest of our country, but in the best interest of our financial sector.”

Sure sounds like something a mafia thug would say. Lobbyist are sent to argue the side of their client. When you have people with guns that say they are going to start shooting, of course you are going to have people sending representatives to argue why their clients shouldn’t be shot. Maybe if we had a free market, where the government wasn’t pointing guns, we wouldn’t need lobbyists.

The legislation would grant the federal government the power to seize teetering financial giants and dismantle them the same way the Federal Deposit Insurance Corporation now can seize failing banks. It would create a new financial consumer regulator, would boost the strength and budget of the securities and exchange commission and would impose new transparency rules on the trading of derivatives, the complex financial instruments that helped bankrupt Lehman Brothers and nearly wipe out American International Group and Merrill Lynch.

More moral hazard. Just what we need. How about we let them fail, and let everyone know that we will let them fail. When everyone knows the government is going to step in no matter what happens, they will rightly assume that they can take idiotic risks that they otherwise wouldn’t. People bet on CDOs and housing because they knew the government would not let housing collapse, in particular Fannie and Freddie.

Mr. Obama will treat his return to Cooper Union as something of a triumphal homecoming, with a touch of “I told you so” in the speech. Two years ago, he called on Congress to give the Federal Reserve more supervisory power over the biggest financial institutions and to demand tougher new capital and liquidity requirements. Pending legislation largely follows that demand. Congress appears ready to meet his request, now two years old, for a new financial consumer regulator. His calls for stronger, international accounting standards and financial stability requirements have been taken up by the Group of 20 nations, although talks are proceeding haltingly.

This is just hilarious. “he called on Congress to give the Federal Reserve more supervisory power” is Obama’s “I told you so”? The Federal Reserve is the reason we had this mess. This is like saying we should give Madoff more power to regulate the purse snatchers of the world.

His 2008 suggestion of streamlining the hodgepodge of “overlapping and competing regulatory agencies” has been abandoned. But he will dwell more on the warnings he issued in that first Cooper Union address.

“I take no satisfaction in noting that my comments have largely been borne out by the events that followed,” he plans to say. “But I repeat what I said then because it is essential that we learn the lessons of this crisis, so we don’t doom ourselves to repeat it. And make no mistake, that is exactly what will happen if we allow this moment to pass – an outcome that is unacceptable to me and to the American people.”

“One of the most significant contributors to this recession was a financial crisis as dire as any we’ve known in generations,” Mr. Obama will say in a highly-anticipated speech at the Coopers Union, a college in New York.

He will tell the expected crowd of 700 that America must learn from the mistakes of the economic crises and enact legislation to help prevent it from happening again.

Yes, we live with a broken record government. We always need more legislation to help prevent something from happening again. Over and over we are told they must act to protect us. Only they aren’t protecting us. They are stacking the deck more in their favor. If you want real reform, ask them to quit protecting us.

Obama’s push for financial reform has intensified in recent weeks and he has lashed out at Republicans for meeting with Wall Street lobbyists. In his speech he is expected to say that legislative proposals in Congress would help restructure the rules that allowed Wall Street to take risky bets that Americans ended up paying for.

Republicans have to be completely tone def. What morons would meet with Wall Street lobbyists after everything that just happened? Oh well, I’m hoping for a third party anyway.

He will state that he won’t accept compromises that would weaken the bill, particularly in the area of derivatives, complex financial instruments that played a role in the economic crisis.

He will also say that financial reforms must set limits on the size of risks that banks can take, and include provisions that would make it easier for a failing institution to unwind before taxpayers would be affected. He will also say he believes in a free market. “But a free market was never meant to be a free license to take whatever you can get, however you can get it,” he said. He will add, “That is what happened too often in the years leading up to the crisis.”

-By Jared A. Favole

via Obama to Castigate Wall Street – WSJ.com.

Hahahaahahah, Obama will also say he believes in the free market? This sounds like the plantation owner telling his slaves how much he believes in freedom. What a damn joke. I can see it now. “I believe in the free market. Now let me tell you all the regulations, loop holes, incentives, kick backs, and advantages I’m going to hand out. Also, we’re going to print more fake money that we will filter through these same evil banks. This free market stuff rules!”

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Is Our Tax System Up Side Down?

Posted by Jason | Posted in Government | Posted on 20-04-2010

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Yesterday on Facebook, I asked why we let politicians steal our money to then turn around and attempt to bribe us with it with tax credits, cuts and incentives. One of my newer Facebook friends then mentioned how the federal government bribes the states as well. I responded that maybe we should only be taxed by our states. Then if the feds wanted taxes, they would have to tax the states. This would cause friction between the feds and the states again, and I may just be dreaming, but I think it would cause states to tell the feds to go pound salt when they wanted to create new federal programs.

If you are a governor or state legislator, would you not want to keep your state’s tax money in your state? You are accountable to your people, and the better your state is ran, the better your chances of getting re-elected. If the feds decide to create a new entitlement program, would it improve your state? Would your people say, “Yeah, send our hard earned money to Washington. They will handle it properly.”, or would they say, “What the hell are you sending our hard earned money into that cesspool for? You know they are going to waste it. Guess I’ll be voting for your opponent next election.”

Also, wouldn’t this give “The People” more power? Wouldn’t the people basically be able to overturn federal laws by changing their state legislators? If a bunch of candidates who say, “We are not going to send your tax money to Washington for tracking down pot heads. It’s a complete waste of money.” gets elected by the people, wouldn’t the people be better represented? The states could then basically nullifying the laws each election.

OK, I can hear some of the concerns now. “Yes, but wouldn’t you just then have state legislators doing the same things as federal legislators, stealing your tax money and then bribing you with it?” The answer is yes. Here’s the catch though. With states, they have to be competitive. If one state taxes too much and promises too many programs, they’d become uncompetitive. Businesses and people would move to a more competitive state. This would force states into restraining themselves. Competition is the key, and there is no competition with the federal government.

“Yeah, yeah, but what about those states who don’t have a lot of tax payers?” Well, then they’d have to be really restrained. They’d probably be a great draw to people who want less government all around. While not completely government free, they’d be about as close as you could get, and that would entice many people. Also, if there aren’t a lot of tax payers there, then why should other tax payers have to subsidize them? If they want to live there, then let them pay to live there. Other citizens should not have a gun stuck to their head and robbed to pay for some other states government when they chose to live in a more populated state.

“What about federal laws? They would become meaningless, because states could nullify them so easily.” OK, I’m waiting for the negative consequence. This sounds great to me. This would keep the federal government down to the size it should be. It would only have the power that is specifically granted and approved by the states. For example, most states want military defense, so I’m sure they would all be willing to contribute. On the other hand though, would states have paid for our empire around the world? Would they have funded the war in Iraq? Chances are they would have not. The people would not want to waste their money, which they would have much more control over under a tax system like this. They also would not allow the federal government to steal their money to hand it off to other countries as bribes…I mean AID. I’m not saying AID would be non-existent. Maybe you have a state with a large Latino population, and they would like some of their money contributed to AID in Latin America. The beauty is the entire country is not compelled to do it. The entire country is not compelled into sending money to countries where their interests are not being represented.

Lastly, this would help both conservatives and liberals get what they want. Conservatives can migrate easily to small government, low tax states, while liberals can move to high tax, socialized states. The great thing about it is socialism could collapse on it’s own. A state that became heavily socialized would have to bear it’s own burden, and if it’s as great as the liberals tell us, then people will voluntarily move there. They would choose to live under socialism, but it could not force the productive parts of the country to subsidize it’s ideology.

I’m sure other people have contemplated this idea and have had much better dialog on it than I. It would be great to hear other people’s opinions, both pro and con. Let me know your thoughts in the comment section.

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Government Pensions, A Disaster In The Making

Posted by Jason | Posted in Government | Posted on 20-04-2010

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From my local paper comes even more proof of government’s complete incompetence. Why anyone trusts government is beyond me.

Pennsylvania hasn’t paid the annual recommended amount to its school and state employee pension funds in years, and won’t for at least another decade if lawmakers adopt a budget proposal designed to spread costs into the future.

The state is not alone with that tactic.

As 2009 pension reports trickle in, it appears cities, states and schools across the country are cutting back on pension fund contributions in order to shift money to budget needs. Of 71 funds that reported 2009 contributions in the Boston College report, about 40 percent of them met their recommended contributions.

The annual recommended contribution is the yearly amount required to cover administrative costs, the cost of benefits employees earned in a given year and the cost of paying off any unfunded liabilities. Typically, employees and employers — in this case the state, city or school district — each pay a portion of the tab.

“It was easy to cover this stuff up. Nobody is going to look at something like this in good times because it is so easy to cover it up. … That’s why (governments) went ahead and increased benefits, saying the stock market would cover it and it wouldn’t cost anything. I knew a day of reckoning was coming,” Dean said.

Easy to cover up? Are people catching on that government is a fraud? If the private sector did this, they’d be hauled before congress and used as a public sacrifice to the Capitalism Is Evil gods.

Although many states and municipalities adjusted benefits for new employees, courts have ruled they must meet their obligations to retirees and active employees.

“Now when someone asks about pension problems, I tell people you better check city hall, because they may be selling your child’s soccer field to pay for pensions,” Dean said.

Pennsylvania increased benefits for state and school employees and lawmakers in 2001, added a cost-of-living raise for retirees in 2002, and then reduced contributions to the funds and spread costs out over a decade to soften the blow of market declines.

Don’t worry. I’m sure the intelligentsia can figure this out.

Munnell said researchers could offer no easy solutions.

“We don’t have anything brilliant to say. There is little in the way of public options to fix this quickly,” she said.

Uh oh!

via Triblive.com

While the rest of us are cutting back, struggling just to get by, and many of us haven’t been able to afford contributing to our retirements, the government just keeps spending. They keep making more and more promises to government workers, who produce absolutely nothing. Of course, guess who has to backup those promises? It’s not the slimy politician or bureaucrat. It will be us, the tax payer. We will have to work extra weeks of unpaid labor just to hand over to the government, like slaves trying to increase their masters wealth.

Why do government workers even get pensions? Who in the private sector gets pensions anymore? The private sector has moved away from the pension system because it’s  unsustainable. Of course, the morons in government don’t care about that. This is just another example of government not doing what’s best in the long term like private businesses do. This is why government should be extremely small, and private businesses should handle the services we want as consumers. The privates sector has moved toward 401k, IRAs, etc. These are self managed by employees and do not require long term commitments by employers. Not with government though. Government workers retire young with huge benefit packages. They didn’t produce anything while they are working, and now they get to sail off into a tax payer funded sunset.

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Just a thought: Are we doomed by our arrogance?

Posted by Jason | Posted in History, Miscellaneous | Posted on 18-04-2010

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While technology has improved throughout human history, man’s arrogance has not. The downfall of civilizations through the ages will be the downfall of ours. Our knowledge might have improved, but our stubbornness to believe we can achieve a different result from the same actions will be our downfall.

Empires always self destruct.

State power always expands until men become slaves.

Free people forget what it took to regain their freedom as they continually give it up.

Prosperous societies always become complacent and forget what made them prosperous.

The list could go on and on. Add your examples to the comments.

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What Do Both Parties Use To Control The People?

Posted by Jason | Posted in Miscellaneous | Posted on 17-04-2010

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Ron Paul nails it in his post at LewRockwell.com. Whether it’s fear of the boogieman with Republicans or fear of being responsible for yourself with the Democrats, they both want everyone clamoring for them to do more. They’ve done enough. It’s time to undo things they’ve been doing for and to us.

While fear itself is not always the product of irrationality, once experienced it tends to lead away from reason, especially if the experience is extreme in duration or intensity. When people are fearful they tend to be willing to irrationally surrender their rights.

Thus, fear is a threat to rational liberty. The psychology of fear is an essential component of those who would have us believe we must increasingly rely on the elite who manage the apparatus of the central government.

As Washington moves towards its summer legislative recess, indications of fear are apparent. Things seem similar to the days before the war in Iraq. Prior to the beginning of the war, several government officials began using phrases like “we don’t want the smoking gun to come in the form of a mushroom cloud,” and they spoke of drone airplanes being sent to our country to do us great harm.

It is hard to overstate the damage this approach does psychologically, especially to younger people. Of course, we now know there were no weapons of mass destruction in Iraq, let alone any capacity to put them to successful use.

To calm fears, Americans accepted the Patriot Act and the doctrine of pre-emptive war. We tolerated new laws that allow the government to snoop on us, listen to our phone calls, track our financial dealings, make us strip down at airports and even limited the rights of habeas corpus and trial by jury. Like some dysfunctional episode of the twilight zone, we allowed the summit of our imagination to be linked up with the pit of our fears.

Paranoia can be treated, but the loss of liberty resulting from the social psychology to which we continue to subject ourselves is not easily reversed. People who would have previously battled against encroachments on civil liberties now explain the “necessity” of those “temporary security measures” Franklin is said to have railed against.Americans must reflect on their irrational fears if we are to turn the tide against the steady erosion of our freedoms. Fear is the enemy. The logically confusing admonition to “fear only fear” does not help; instead, we must battle against irrational fear and the fear-mongers who promote it.
It is incumbent on a great nation to remain confident, if it wishes to remain free. We need not be ignorant to real threats to our safety, against which we must remain vigilant. We need only to banish to the ash heap of history the notion that we ought to be ruled by our fears and those who use them to enhance their own power.

via The Fear Factor by Ron Paul.

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Why Do Liberals Think Only Government Can Provide Essential Services?

Posted by Jason | Posted in Government | Posted on 14-04-2010

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Alright, so I’m on Facebook, and I see someone posted this picture. Following it was typical LOL type of comments. What really makes me LOL is how liberals think only government can handle essential services like fire protection. Do they just assume that if government ceased to exist tomorrow (I know, I’m daydreaming) that all the sudden people would stand by asking themselves who is going to put a burning house out? It’s as if the government created the idea of extinguishing a fire and is the only group of people who know how to do it.

That was my first thought. Second was the caption of “No, thanks – I’m a libertarian.” I’m a registered Republican, but I probably more align with libertarian ideas. Do these statists think libertarians are against fire departments? Do they think that if libertarians wanted no government what-so-ever, that they would not establish services to handle fire protection. If you’ve ready this post, you know fire protection could be provided by your insurance company.

If insurance companies payout based on the amount of damage done in a fire, wouldn’t they have an incentive to develop fire protection and fire fighting services? It’s only the blinded view of the statist that can’t see other options other than state power. Do they need the government to tell them how to interact with their friends, family, neighbors, etc? No, they interact based on their self interest. The same would happen with fire fighting.

INSTAPUTZ: Hehindeed..

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