“What Are They Trying To Hide?”

Posted July 22, 2014 by austrianaddict
Categories: Government and Politics

Tags: , , , , , , , ,

The Russian separatists are blocking access to the crash site of the Malaysian airliner. The President asked, “What are they trying to hide“. I have to agree that blocking access raises suspicion that evidence is either being  hidden or destroyed. The President also said, “We have to  make sure the truth is out and accountability exists”. Once again I agree; truth and accountability should always be a top priority. Read, What Are Russian Separatists Trying To Hide.

WHAT ARE THEY TRYING TO HIDE?

SOUTHERN BORDER

Congressmen and journalists are being denied access to the immigration camps that are springing up as a result of the situation on the southern border. Administrative agencies obviously don’t want whatever is going on inside to be seen, “which begs the question“, quoting the President, “What are they trying to hide ….. We have to make sure the truth is out and accountability exists”. Read, Congressman Denied Entry To Immigrant Camp. What Is Government Hiding...

IRS ABUSE OF POWER

IRS computers mysteriously crashed days after e-mails were requested concerning the IRS’s possible targeting of conservative, tea party, and  liberty groups. Here is what IRS Lois Lerner, who plead the 5th when she was questioned by Congress, said in an e-mail, “I was cautioning folks about email and how we have had several occasions where Congress has asked for emails and there has been an electronic search for responsive emails – so we need to be cautious about what we say in emails“. Quoting the President, “What are they trying to hide …. We have to make sure the truth is out and accountability exists“. Read, Rep Jim Jordan Questions IRS Commissioner on Lois Lerner Investigation.

NIXON’S MYSTERIOUS 18 1/2 MINUTE GAP

President Nixon had to turn over tapes of oval office conversations after they were subpoenaed by a special prosecutor. One of the tapes had an 18 1/2 minute gap that Nixon’s secretary Rose Mary Woods said she erased by mistake. Here is an excerpt from, Nixon Shed No Light On Tape Gap To Grand Jury, ” Nixon stuck to secretary Rose Mary Woods‘ story that she erased it by mistake, and professed anger when learning how much was missing. Although he said he could not remember what was said during the gap...” Here is a quote from Nixon, “Rose had thought it was four minutes, or something like that,” he testified. “Now the counsel have found that it is 18 1/2 minutes, and I practically blew my stack……If you are interested in my view as to what happened, it is very simple. It is that it was an accident.” Quoting President Obama, “What are they trying to hide …. We have to make sure the truth is out and accountability exists“.

Truth and accountability are two things that politicians and bureaucrats avoid at all costs. Having the President demand truth and accountability is like having Hugh Hefner demand abstinence and chastity.

 Related ArticleWhat Is Tyranny? The President Should Know The Definition, at austrianaddict.

 

 

 

 

Must Reads For The Week 7/19/14

Posted July 19, 2014 by austrianaddict
Categories: Must Reads For The Week

Tags: , , , , , , , , , , , ,
The pen is mightier than the sword...

 The pen is mightier than the sword… (Photo credit: mbshane)

Home Depot Starts Selling 3-D Printers In Stores, at economicpolicyjournal.com. This technology will eventually change the way we do things in ways we can’t even imagine.

Amazon Asks Permission From FAA To Test Drone Delivery System, by David Streitfeld, at bits.blogs.nytimes.com. Another idea whose uses we have only scratched the surface of.

The EU’s Accelerating Unpopularity, by Giles Merritt, at econommicpolicyjournal.com. People in European countries don’t like the idea of giving up their sovereignty. Each country in Europe has it’s own unique culture, and these cultural divides go back centuries and will probably never change. The bottom line is, they just don’t like each other. Even socialist countries only like to be told what to do by their socialists central planners not by other socialist central planners.

Reasons To Vote Democrat, by Ty Andros, at economicnoise.com. Unfortunately these can also apply to a majority of elected Republicans. Government will continue to grow and individual freedom will shrink, as long as both parties can get people to look at everything as a battle between the R’s and D’s they both win. The real battle, as it has always been is, can the individual keep his freedom, or will politicians, bureaucrats, and Government agents use their power to take it away. Until individuals understand that the freedom to succeed or fail on their own is their best interest, and voting for R and D promises of goodies and security, are the shackles they may never be able to escape once they put them on.

Mixed-Race Student Sues University, Says It Misled Her To Promote Racial Diversity, by Dominic Lynch, at thecollegefix.com. I saw this at aei-ideas.org. A tyrant is someone in a position of power who makes decision benefiting himself, at the expense of the person he has power over. This is an example of tyranny. I love the fact that this courageous young lady is fighting back. In order for us to beat back tyranny we have to fight it every where it occurs.

Young Boy Takes On City Council … And Wins, by Jordan Richardson, at dailysignal.com. This nine year old boy built a free library in his front yard for Mothers Day, and was ordered to tear it down by city officials in Leawood Kansas. He fought back and the city council approved a temporary measure to allow his free library. I hope he eventually wins. We have to fight back against tyranny at every turn. I saw this at aei-ideas.org.

Senator Harry Reid Says The Southern Border Is Secure, by Oliver Darcy, at theblaze,com. Charles Krauthhammer questioned Senator Reids mental health after this comment. I’m not going to give Ried the mental health pass. This lie shows his contempt for we the people. With all due respect Senator Reid, “don’t piss down my back and tell me it’s raining“.

Nancy Pelosi Lies About Hobby Lobby Decision, Gets Corrected By Megyn Kelly, youtube video, Megyn Kelly does a great job explaining what the Hobby Lobby decision did and did not do. I disagree with her calling  Nancy Pelosi’s statement “misleading Hysteria”, I call it flat-out lying. Pelosi’s comments demonstrate why I loath politicians. With all due respect Mrs. Pelosi, “don’t piss down my back and tell me it’s raining“.

Watch This Optical Illusion. This is what goes on in my brain when I listen to Reid, Pelosi, McConnell, Boehner, or Obama speak.

 

These cartoons are from theburningplatform.com.

150818 600 Border Security cartoons

 

 

 

 

 

 

 

 

 

150782 600 Chelsea Clinton speaking fee cartoons

150764 600 KIDS AND SUMMER cartoons

Gasoline Consumption Is Down: Why?

Posted July 16, 2014 by austrianaddict
Categories: Econ. 201

Tags: , , , , ,

File:Shell station in Rosario.jpg

I’ve always thought robust economic activity could be measured by how much gasoline we use. Our ability to move ourselves, and things, quickly, saves our most scarce resource, time. This allows us to produce more with our time. I liken the consumption of gas in our economy to the consumption of nails for a carpenter. The more nails a carpenter uses signifies he is producing more output, and the higher the output, the wealthier he becomes. The more gas we use signifies we are producing more output, and the higher the output, the wealthier we become. Economies run on energy, and gasoline, which is specific to our transportation needs, is a big percentage of our countries energy supply. Electricity and heat are the other two parts of our energy needs.

Individuals use gasoline for productive activities and for consumption activities. An example of productive activities would be driving to and from work, and all other driving that is work related. Consumption activities would be all driving other than these productive activities. All of our consumption activities are made  possible because of our productive activities, with the exception of consumption financed with debt, a Government transfer from someone’s production via taxes, or counterfeiting money, like the Fed. The monies received through debt, transfer, or counterfeiting, are essentially certificates which allow you to demand what someone else has produced without any corresponding present production, except in the case of debt, which would be paid back with future production.

CHART SHOWS LOWER CONSUMPTION

I say this chart, US Total Gasoline Retail Sales by Refiners (Thousands of Gallons Per Day), at zerohedge.com. It is from the U.S. Energy Information Administration (eia.gov) which was created by congress in the late 70’s. It shows our consumption of gasoline in the last 9 years is way down. Lets look at consumption for the month of April since 2006.

Year           Thousands of Gallons Per Day (April)
2006            61,020.8
2007            57,354.7
2008            56,307.4
2009            51,215.6
2010            46,016.2
2011            41,555.0
2012            29,684.0
2013            28,179.6
2014            20,109.1

REASONS FOR DROP IN CONSUMPTION

That’s 40,000,800 less gallons being consumed in the month of April from 06 to 14, a drop of 66% or 2/3rds. What can account for this drop in consumption since 06. Lets look at some reasons. 1) Gas prices are high which means less will be consumed. 2) Higher unemployment means less work related miles driven. 3) Technology allows us to work at home, and also communicate with people without meeting face to face. 5) Shopping online reduces miles driven. 6) Our population is aging, and older people drive less. 7) Younger people are driving fewer miles. 8) Newer cars get better gas mileage, although this might be off set by a couple of things: A) people are keeping their lower MPG cars longer, and B) Because a molecule of ethanol produces less energy than a molecule of gasoline, mixing ethanol with gasoline lowers fuel efficiency. 9) Compressed natural gas is cheaper than gasoline, but substituting natural gas cars for our current fleet will occur some time in the future, and has no bearing on the present consumption.

Demographics and technology can’t account for the total 66% drop in gasoline consumption. Even if it accounted for half of the 2/3rds drop in gasoline usage, which it can’t, it still shows that Economic activity has slowed and doesn’t look like it is about to pick up any time soon. When the housing bubble, caused by the Feds dual edged sword of low-interest rates and electronically printing counterfeit money, popped in 08, it slowed economic activity. But the biggest drop in gasoline consumption has happened in the last year, at the same time we were being told the economy is improving. I think the drop in gasoline consumption is the canary in the coal mine when it comes to our economy.

WHAT TO LOOK FOR

The law of supply and demand states: less will be demanded at a high price than a low price, and more will be supplied at a high price than a low price. Since the demand is low the price should eventually go down. As the price goes down more will start to be consumed and less will be supplied. As demand rises and supply shrinks, a point will be reached where the price will start to rise. when this happens,  less will be demanded and more will be supplied.

If gasoline usage doesn’t increase significantly at the lower prices, we will know the new normal for our economy is an over all lower standard of living.

Related ArticleWhat Comes First Production Or Consumption, at austrianaddict.com.

Related  ArticleCapital Consumption, aka, Eating Our Seed Corn, at austrianaddict.com.

Related Article –  A Look Over The Horizon At What Lies Ahead If We Continue Down The Central Planning Road, at austrianaddict.com.

Related ArticleIs The Economy Improving? It Depends On How You Define Improving, at austrianaddict.com.

 

 

Must Reads For The Week 7/12/14

Posted July 12, 2014 by austrianaddict
Categories: Must Reads For The Week

Tags: , , , , , , , , , , , , , ,
The pen is mightier than the sword...

 The pen is mightier than the sword… (Photo credit: mbshane)

Border Patrol Agents Contracting Scabies, Agent Who Speaks Out, Given Cease And Desist Order, at benswann.com. The truth about the conditions in these detention centers is what individuals higher up the Government food chain don’t want anyone to find out. “Because I stood up and told the truth they are going to terminate me and I am going to fight it” says Agent Ron Zermeno. ‘He went on to say that his bosses are more worried about their promotions and their bonuses than protecting the country’. No matter what side of this issue you are on, can we all agree that politicians and bureaucrats in Government have made a complete mess of the situation because politics trumps logic and reason.

ER Use Skyrocketing With Obamacare, by Ed Morrissey, at hotair.com. Once again the unintended (or possibly intended) consequences of Government intervention in the free market rear their ugly head. Prices coordinate supply and demand. but when Government policies incentivise demand and constrain supply, well you figure it out.

The New US Tax Form, at zerohedge.com. This is supposed to be a bit of humor,but the question has to be asked: if individuals in the IRS don’t have to comply with the law, why would anyone expect the rest of us to comply with the law? The break down of the rule of law happens incrementally over a long period of time, and then at some point the marginal straw finally breaks the camels back.

Finally A Loss For Socialist Kshama Sawant In Seattle, at economicpolicyjournal.com. Do Uber and Lyft realize this is just an incremental step toward more Gov. control, and not a win for the free market. Here is an excerpt, “There will be no cap on the number of for-hire drivers: We have deregulated a highly regulated monopoly,” Seattle Mayor Ed Murray said. It should be noted, though, that this step is far from a complete free market step. UberX and Lyft will now be part of a new government created cartel, that will limit others from entering the Seattle taxi industry. The city will only issue 200 new taxi licenses over the next four years. Taxi and for-hire drivers will see their licenses “transfer into a property right” on the order of New York’s valuable taxi medallions.” This reminds me of the analogy Walter E. Williams uses, This is like someone who comes into your yard, rips out your tulips and plants roses, and then gets you to argue the merits of tulips vs. roses, instead of you telling him he had no right to rip out your tulips in the first place.

Canada Pulls The Plug On Delayed Keystone XL Pipeline: Will Instead Send Oil To Asia Via A New Pipeline, by Mark J. Perry, at aie-ideas.org. How many jobs did the President sacrificed at the altar of radical environmentalism. These lost jobs are the unseen consequences that are results of every Government intervention. The benefit of the jobs and wealth that would be created out weighs the risk, not a guarantee, just a minimal risk of a possible environmental problem. The environmentalists are not willing to trade-off any amount of risk, no matter how small, for any amount of economic gain, no matter how big.

Yet Another Leak In The Establishment Ship, by Chris Rossini, at economicpolicyjournal.com. This information age brought about by technological innovation that couldn’t have been imagined 15 years ago,  is starting to over take the status quo propaganda outlets of the Government central planning crowd. News papers and TV news have been in decline for years. Now Hollywood’s influence along with the education monopoly are loosing their hold. As the article says, “this is a positive sign for liberty”.

Freedom Summed Up In One Image, at zerohedge.com. When I saw this sign, I thought it was parody from The Onion. This sign shows how people in positions of power will wield it, to try to control everything you do. They are smarter than you!

Leaving Illinois For Texas, by Mark J. Perry, at aei-ideas.org. Another example of unintended consequences of Government intervention. People are leaving States when the cost of regulation and taxes gets too high. People on the margin leave, and the with the next round of regulations the next group of people on the margin will leave, (as long as there is a lower cost place to escape to).

When Steelers Steal, by Christopher Westley, at mises.org. This is our heavy lifting for the day. Bastiat talked about ‘that which is seen, and that which is not seen’. This article shows the history of the steel industry through the lens of unseen consequences. Government intervention doesn’t happen in a vacuum. The affects of the intervention are like the expanding ripples from a rock being tossed into a pond.

A Typical Day For Southwest Airlines, at economicpolicyjournal.com. This is just Southwest Airlines shown on this time lapse video. What do the skies look like if all planes from all airlines were shown? Well here it is, A Day In The Life Of Air Traffic Over The United States.

45 Perfectly Timed Photographs, at induldged.com. These are outstanding. I saw this at angryid.wordpress.com.

perfectly-times-photos-37

Observations From The Margin

Posted July 8, 2014 by austrianaddict
Categories: Observations From The Margin

Tags: , , , , , , , , , , ,

 

Observation Tower

Observation  (Photo credit: mooglet)

-The President is asking for $2 billion to fight the recent surge in illegals crossing the Southern border. Why would anyone trust this administration in regards to enforcing immigration laws? When Arizona tried to enforce Federal laws, the President had his justice department sue to stop them.

-The flood of illegal crossings reminds me of Fast and Furious only in reverse. In Fast and Furious, Government ATF agents told legal gun dealers to illegally sell guns to Mexican drug cartels, for the purpose of blaming the violence in Mexico on American guns crossing the border. This would give the anti-second amendment administration leverage to push for more gun control. Their plans were ruined when Border Patrol agent Brian Terry was killed with one of the weapons supplied by the ATF,s operation. With the current Southern border crisis, illegals are sending their young children across the border because they were told by international and local media, and family members in the U.S. that our Government was issuing immigration “permisos” (free passes) upon arrival. Of course our Government publicised this. The administration will use the flood of illegal immigrants as a crisis to try to get their immigration agenda passed into law. This administration would only enforce the parts of any new immigration law that they want enforced, and would ignore what they don’t like.

-Should these children be sent back to their families in their home countries? Yes: The precedent was set in the Elian Gonzalez case during the Clinton administration. Elian Gonzalez’s mother drowned when she tried to get her son to the U.S.. The INS placed Elian with parental relatives in Miami. He was taken away at gun point when courts ruled that his father, not his relatives, could petition for asylum {a temporary refuge granted political offenders}. Many made the argument that he would be better off with his father in the communist utopia of Cuba, than he would be with his relatives in the U.S., so I would assume, for the sake of consistency, these same people would use the same reasoning concerning these children.

-Every administrations tries to get outcomes they desire. If they can’t get it through legislation, or if legislation is passed that they don’t like, they take it to court. It they don’t get the result they want in court, they use executive power to either change the law, or they just don’t enforce the laws they are legally mandated to enforce.

-Here is why the IRS scandal is worse than Nixon and Watergate. The Nixon scandal was political dirty tricks between two political parties. The present IRS scandal is a case of Government bureaucrats using their power to intimidate individuals who wanted to “peacefully assemble and petition the Government for a redress of grievances”, as stated in the 1st Amendment of the Constitution. The IRS violated the constitutional rights of individuals.

-The IRS recently agreed to pay a $50,000 in damages to NOM for leaking  donors names to rival groups. Who do you think will pay this fine? Tax payers of course, because the IRS is funded by us. So let me see if I got this right. A portion of the taxes paid by the tax payers who sued the IRS, is going toward the fine that the IRS owes to these very same tax payers. That kind of punishment has no chance of constraining future abuses of power.  The individuals in the IRS who broke the law should go to jail, because that is the only constraint for curtailing future IRS abuses. Why do you think the IRS bureaucrats were so cocky when they testified in front of congress? They know nothing is going to happen to them. The rule of law doesn’t apply to our bureaucratic betters. If this bureaucratic lawlessness continues, we won’t comply with their edicts, and it won’t be pretty.

– All of the recent push backs in the Supreme Court against the Obama administration are all actions taken by regular citizens. Non of these actions are results of the Republican establishment having any stones. This progressive Marxist ideology can only be defeated by a bottom up transformation by citizens understanding that individual  freedom is the cure for the problems created by years of  intervention through Government central planners of both parties.

 

 

 

Must Reads For The Week 7/5/14

Posted July 4, 2014 by austrianaddict
Categories: Must Reads For The Week

Tags: , , , , ,

Lets celebrate Independence Day.

This is Stars and Stripes Forever by Chet Atkins.

Ray Charles singing America The Beautiful.

Martina McBride singing God Bless America.

Let’s Think.

-Read Thomas Sowell’s recent article, America’s Birthday.

-Happy Fourth Of July: Fifth Of US Population Doesn’t Believe In American Dream, by Hannah Osborne, at ibtimes.co.uk.

 

Let’s Laugh.

 

July 4th: Independence From Tyranny, The Battle Continues

Posted July 3, 2014 by austrianaddict
Categories: Government and Politics

Tags: , , , , , ,

I wrote this post last year for our 4th of July Independence Day celebration. In light of some recent Supreme Court decisions striking down the tyrannical power grabs by the President and the Government, I’ll repost it.

DECLARING INDEPENDENCE FROM TYRANNY

English: This is a high-resolution image of th...

Declaration of Independence (article (Photo credit: Wikipedia)

JEFFERSON’S GEM

On July 4th 1776 congress adopted a Declaration by the thirteen United States of America for their Independence from the tyranny of The King. I haven’t read this document enough over the years. I’ve taken for granted that I understand the meaning of the words Jefferson penned, but my most recent reading has revealed the depth of meaning he compressed into relatively few words. I had similar thoughts when I reread the Declaration of Independence as I did when I read The Road To Serfdom by Hayek for the first time in 1993. Those thoughts were, “Oh my God, he’s writing about today”. Before we look at some of the words in the declaration, let’s look at what Colonial America was like before 1776..

EVOLVED FREEDOM IN COLONIAL AMERICA

Colonial America developed relatively freely for a couple hundred years before 1776. A culture evolved here over these two hundred years which was different from the culture in England. In a book titled “A Patriot’s History Of The United States by Larry Schweikart and Michael Allen, they write about a few trends that led to the spontaneously evolved freedom that existed at the time of the Revolution.

“First, the sheer distance between the rulers and the governed – between the King and the colonies – made possible an extraordinary amount of independence among the Americans”…..”Second, while the colonists gained a measure of independence through distance, they also gained political confidence and status through the acquisition of land. For immigrants who came from a nation where the scarcity of land marked those who owned it as gentlemen and placed them among the political elites. The abundance of soil….make them the equals of the owners of manorial estates in England. It steadily but subtly became every citizen’s job to ensure the protection of property rights for all citizens, undercutting from the outset the widespread and entrenched class system that characterized England. Third, the precedent of rebellion against a government that did not carry out the most basic mandates – protecting life, property, and a certain degree of religious freedom (at least from the Church of England) was established and supported by large numbers, if not the wast majority, of colonists. Fourth, a measure of religious toleration developed.” (1)

“By 1774 American colonists already had attained a standard of living that far surpassed that found in most of the civilized parts of the modern world.” (2)

The economic system in place at this time was mercantilism (read here), which was a system where the state gave special subsidy and monopoly privileges to businesses, individuals, and groups the state favored. It encouraged exports and discouraged imports, and the enforcement of these regulations created a bureaucracy that built state power.

Patriot’s History talks about mercantilism, “Mercantilist doctrine demanded that the individual subordinate his economic activity to the interest of the State….it didn’t help the English that mercantilism was based on a conceptual framework that saw wealth as fixed and limited, meaning that for the Government to get more wealth, individuals had to receive less of the fruit of their labor…….Having the State pick winners and losers in the fields of enterprise proved disastrous……Americans came to despise regulations that threatened the further development of America’s thriving merchant trade…..Traders at the top favored regulations because they allowed them to freeze out aspiring competitors, but producers and consumers disliked the laws and they were swiftly becoming the majority.” (3)  Does any of this sound familiar? (Crony Capitalism)

THE DECLARATION OF INDEPENDENCE

The tyranny of Government is what man has been fighting since before recorded history, and it is what we fight today. The freedom of the individual is rare in history, while the tyranny of government over the individual is the historical norm. Here are a couple of excerpts from the declaration, ask yourself if these words are applicable today.

“We hold these truths to  be self-evident, that all Men are created equal, that they are endowed by their Creator with certain unalienable Rights, that  among these are Life, Liberty, and the Pursuit of Happiness–That to secure these Rights, Governments are instituted among Men, deriving their just Powers from the Consent of the Governed, that whenever any form of Government becomes destructive of these Ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its Foundation on such principles, and organizing its Powers in such Form, as to them shall seem most likely to effect their Safety and Happiness.”

Our rights are above the Government, they don’t come from Government. Governments are instituted by men in order to secure each individuals rights. Governments get their just power from the consent of the individuals. When a Government becomes destructive in securing the rights of individuals, the people have a right to change or abolish it.

“Governments long-established should not be changed for light and transient Causes……Mankind are more disposed to suffer, while Evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed.”

Individuals will suffer evils for a long time before they will pay the heavy price of  changing or abolishing Government. The evil has to become intolerable before men will make a change, and remember, intolerable is in the eye of the beholder. We haven’t reached that point yet, but we are getting closer with each new regulation, tax, intervention, usurpation of power, by our elected officials and bureaucrats, along with each new case of political corruption.

Jefferson then lists the abuses by the King. There are too many to list here, read the Declaration and see if any of the abuses apply today.

“In every stage of these Oppressions we have Petitioned for Redress in the most humble terms…..A prince whose character is thus marked by every act which may define a Tyrant, is unfit to be the  Ruler of a free People.” 

When a rulers acts are the definition of tyranny, he is no longer fit to be the ruler of a free people.

“…and by the authority of the good People of these Colonies, solemnly Publish and Declare, That these United Colonies are, and of Right ought to be, Free ad Independent States; that they are absolved from all Allegiance to the British Crown…….And for the support of this Declaration, with a firm Reliance on the Protection of divine Providence, we mutually pledge to each other our Lives, our Fortunes, and our sacred Honor.

The founders absolved their allegiance to the crown, and instead pledge to each other their lives, their fortunes, and our sacred honor.

TYRANNY OR RIGHTS

Why do I see tyranny where others see government giving rights. Health care is only one example. I see Government telling me what I can and can’t do with by healthcare decisions as tyrannical and a violation of my right to property and contract. Others see Obama care mandates on their health care as somehow gaining rights. We obviously have different visions on how the world works. Compromise between the two visions only creates a chaotic middle ground, and this is where we are right now. Which direction we go from here will determine if we will face the sobering decision at some point to “rely on divine Providence, and mutually pledge to each other our Lives, our Fortunes, and our sacred Honor”.

Here is a post I wrote titled, “We’re All Born In The Middle Of The Story“, it is a good follow-up to the above post. Here are some excerpts from the article.

“Most people think history started the day they were born. They give little thought, or have no understanding of how the world that existed the day they were born came to exist as it did. Where each person is, and what they are doing today, is the result of decisions made by them and other people, in the recent past and the distant past.”

 “In 1838, a mere forty-five years after our founding, Abraham Lincoln addressed the Young Men’s Lyceum of Springfield, Ill. in a speech about the perpetuation of our institutions of liberty. He was worried about that present generation forgetting the battle for freedom that had taken place fifty years before. How much more worried should we be that our present generations, who are two hundred plus years removed from the actual events,  have no idea about the principles of freedom.”

Click on Lincoln’s address to the Young Mens Lyceum of Springfield. Ill. It is outstanding.

 

Related Article, What Is Tyranny? The President Should Know The Definition, by austrianaddict.com

Related Article, The Most Recent Arbitrary And Unrestrained Exercises Of Power By The Federal Government, by austrianaddict.com

 

Footnotes.

1) From A Patriot’s History Of The United States by Larry Schweikart and Michael Allen, pg 25-26

2) From A Patriot’s History Of The United States by Larry Schweikart and Michael Allen, pg 25

3) From A Patriot’s History Of The United States by Larry Schweikart and Michael Allen, pg 49-50

Must Reads For The Week 6/28/14

Posted June 28, 2014 by austrianaddict
Categories: Must Reads For The Week

Tags: , , , , , , , , , , , , ,
The pen is mightier than the sword...

 The pen is mightier than the sword… (Photo credit: mbshane)

FEDERAL RESERVE,  MUST READS OF THE WEEK

 

Lets start with some humor, because the rest of the post isn’t very funny. I saw this video, Money Is Our God, by Tom Simmons, on Libertas Project / Facebook. Tom Simmons has the Federal Reserve figured out.

 

The State Of The Union: A Friendly Reminder Where We Stand Now, at zerohedge.com. These charts show how the Fed is attempting to keep the economy propped up with electronically printed counterfeit money. Their original money pumping caused the very problem their present money pumping is supposed to cure. It’s like an NFL player getting a concussion from a helmet to helmet hit, and trying to cure it by punching him in the face..

The Fed’s Hobson’s Choice: End QE And Zero Interest Rates or Destabilize The Dollar And The Treasury Market, by Charles Hugh Smith, at oftwominds.com. The Fed has been printing counterfeit money to purchase debt, and artificially keeping interest rates low in order to incentivize borrowing which is at record pace over the last 5 years. Policy makers at the Fed believe in the Keynesian theory that spending {consumption} stimulates production. But Say’s law of markets states, “One can only buy with what one has produced….The one product constitutes the means of purchasing another….”  In the market, production spending is always ahead of consumption spending. But when the Fed stimulates Keynesian consumption, without any corresponding production, it misallocates resources. Economic forces are trying to correct the misallocations brought about by the Feds counterfeiting. These forces will eventually prevail no matter how much the Fed tries to prop up it’s false reality with fake money.

The Civilian Employment -Population Ratio Chart, from the FRED {Federal Reserve Economic Data}. This chart represents the proportion of the civilian noninstitutional population that is employed. This next chart shows the total Civilian Noninstitutional Population, which includes two groups of people who are not working, 1) people under 25,  2) retired people. This chart, Civilian Noninstitutional Population – 25 to 54 years, shows people in their prime working years. Now look at the M2 Money Stock chart. If we look at all of the charts starting from March of 95 to the present, here is what we see. The Fed has increased M2 money stock from $3.49 trillion to $11.22 trillion which is almost $8 trillion. During the same time period the ratio of employed people has decreased from 63.1% of the civilian population working, to 58.9% of the civilian population working. The civilian population has increased  from 198 million to 247 million. These numbers show that the Feds policy of electronically printing counterfeit money is a miserable failure, if its goal is to increase employment and keeping inflation in check. But the Fed’s zero interest rate policy, along with its policy of Quantitative Easing {electronically printing counterfeit money},works perfectly if the goal is to enrich the people who have access to this money first. But it doesn’t matter if that’s the goal or not, the result is still the same. ( The two articles below help explain fake inflation numbers, and enriching those with first access to this counterfeit money.)

Former Fed Governor Warsh Slams Fed’s “Reverse Robin Hood” Policies, at zerohedge.com. Reverse Robin Hood is a great way to explain this. People who don’t have access to this counterfeit money have had the value of what they own stolen. Counterfeiting is theft, even if, in the case of the Fed, it is legal.

Wow: Fed Economist On Fudging Price Inflation Data, at economicpolicyjournal.com. You can make the aggregate inflation rate look great if you don’t count sectors of the economy where the prices are obviously skyrocketing. You can’t believe the numbers stated in the headlines. You have to dig into the numbers to find what is really going on.

 

UNFORTUNATELY THE JOKE’S  ON US.

 

 

Michelle Wie, And The Media

Posted June 24, 2014 by austrianaddict
Categories: Miscellaneous

Tags: , , , , , ,

 

 

I was watching the final round of the Women’s U.S. Open Sunday, and had to laugh as the NBC announcers tried to jump back on Michelle Wie’s bandwagon after they had previously jumped off the very bandwagon that they created in the first place. The announcers tried to absolve themselves of any responsibility for creating a false reality that Michell Wie had to dig herself out of.

MEDIA EXPECTATIONS FOR A 13 YEAR OLD

Michelle Wie was 13 years old when she played in the final group at a major. She had chances to win the U.S. Open when she was 15 and 16 years old. Of course the media is always hunting for the next big story and Michelle Wie was the perfect fit for their already written story. Her father said “Tiger is her benchmark, not women – Tiger”, and of course the media loved this. They couldn’t ignore a stupid comment by the father of a 13 year old girl, no they had to feed the monster of expectations they were creating. They had to write the story about her greatness before it actually happened. When the story didn’t unfold according to their expectations, they started to tear her down as if it was her fault. Then on the back nine when it looked like Michelle Wie was going to win, they started to try to jump on the real bandwagon, which would be her actually winning the U.S. Open.

MEDIA AS A PROPAGANDA MACHINE

This is why I hate  journalism in general and journalists in particular. They are a propaganda machine for their vision of how the world should be. Anyone of anything that doesn’t fit this vision or, in the case of Michell Wie, doesn’t fulfill the expectations of their already written story, gets chopped down and tossed on the scrape heap. Think of the media stories that would have been written if either Tiger Woods or Lebron James hadn’t turned out to be as good as or better than the expectations created by the media.

OBAMA MEETING AND EXCEEDING MEDIA EXPECTATIONS

President Obama is another example of a media creation. His only accomplishment is being elected president. Of course the media can help someone be elected president, but they can’t help someone shoot 18 under to win the Masters or have a career playoff average of 28 pts per game. The President hadn’t even been in office a year, and he was awarded the Nobel Peace Prize. This is like giving a kid a medal just for participating. When will journalists start to jump off the bandwagon that they created? Don’t hold your breath. In the case of the President, he doesn’t have to have any accomplishments, because there is no real standard to judge what is or is not a real accomplishment on the political playing field other than lying to get elected. Instead of being a check on political power, journalists have decided to award the President the gold medal by giving him perfect scores on belly flop dives.

CONCLUSION

Journalists, like all humans, are biased. They have constitutionally protected status, which hides this bias. They can build up anyone who fits the story that they have already written. They cannot tear down anyone who has measurable accomplishments. They won’t tear down someone with no accomplishments, as long as he fits their vision. If it looks like their reporting can’t keep their guy propped up, they will  jump in front of the parade of public opinion and act like they are leading it. This allows them to hedge their position in case the situation changes again. Wouldn’t it be easier to just write the truth no matter who it hurts or helps?

I’m happy for Michelle Wie for two reasons, 1) She has a real accomplishment, that journalists can’t take away. 2) Her win flipped the media the bird.

 

Charles Hugh Smith – After 6 Years Of Unprecedented Central Planning, The Economy Is More Fragile Than Ever

Posted June 23, 2014 by austrianaddict
Categories: Econ. 201

Tags: , , , , , , ,

File:Organiztion of the Federal Reserve System.jpg

Charles Hugh Smith does another brilliant analysis of how central planning, by the Federal Reserve, has markets completely distorted to the point that nobody knows what is real or fake, in this article, After 6 Years Of Central Planning, The Economy Is More Fragile Than Ever.

Artificially holding interest rates lower than they would be in an unhampered market, distorts the production process. It brings about economic activities that wouldn’t have existed if the market was left to decide what the interest rate should be. Interest rates “coordinate production across time”.  Any interference with the knowledge that passes through the production process, because the interest rate is distorted by the Fed, consumes scarce resources, scarce capital, and scarce labor. As we talked about in this article Capital Consumption, aka, Eating Our Seed Corn, and this article, A Look Over The Horizon At What Lies Ahead If We Continue Down The Central Planning Road.

Here are some excerpts from CHS’s article.

“Here are the key characteristics of Central Planning:”

1. “The central bank/state intervene in the economy in a dominant fashion, controlling functions such as interest rates…”

2. “The central bank/state pick winners and losers: ….. The central bank/state bailed out the too big to fail banks private losses with public-taxpayer money. In effect, the central state/bank enrich cronies at the expense of everyone else.”

3. “The central bank/state manipulate the nominally “free” market to boost asset valuations as a way of enriching cronies who own most of the financial assets and as a public-relations charade to mask the failure of their picking winners and losers.”

“In other words, in centrally planned economies, markets are not allowed to discover price–they exist only to reflect positively on Central Planners.”

4. “The central bank/state use the power of the printing press to create as much money as they need to reward cronies and cram their decisions down the throat of the economy.”

5. “The central bank/state use the power of their public policy announcements to manipulate behavior and the financial markets while keeping programs that might attract scrutiny secret.”

“Central planning fails for intrinsic reasons unrelated to the specific policies. The decentralized, self-organizing market is like the immune system for the economy; it keeps the system healthy by burning off the deadwood of failed bets and failed investments and distributing credit and risk on performance rather than cronyism.”

“By eliminating the economy’s immune system, Central Planning dramatically increases vulnerability and guarantees systemic crises down the road…”

“The economy becomes dependent on the The central bank/state intervention and loses the ability to function in the real world. When the real world finally intrudes, the weakened, strung-out addict, no longer capable of responding to reality in a positive fashion, expires.”

The damage done by Central Planning has yet to come home to roost. Six years into the Grand Experiment–that Central Planners can pick winners who just happen to be their cronies–the chickens of consequence are still making their way home.”

CHS  has some great charts that show the results of the Feds interventions, which are hard to see let alone understand. As J.M. Keynes wrote, “There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

In order to understand what Keynes was talking about concerning counterfeiting by central banks, you first have to understand this quote by his rival F. A. Hayek, “The coordination of mens activities through central planning or through voluntary cooperation are roads going in very different directions, the first to serfdom and poverty the second to freedom and plenty.”

Voluntary cooperation through free markets brings about individual freedom and a higher standard of living, while its opposite, central planning, brings about coercion by the state and a lower standard of living.

Related Article/VideoKeynesianism vs. The Austrian School, by austrianaddict.com.

Related Article/VideoKeynes vs. Hayek Round II, The Fight Of The Century, by austrianaddict.com.