Regulation: You’re the Sucker in This Game

Posted by on Jun 24, 2012 in American Economy, Dollars & Sense, Economy, End of Capitalism, Free Thinkers, Hard to Believe, In the News, Media Ignored, Missed the Point, Regulation, Suckered, Truth & Lies | 0 comments

“If, after the first twenty minutes, you don’t know who the sucker at the table is, it’s you.”  ~David Levien and Brian Koppelman, Rounders

Leave a pile of cash on the sidewalk. Do you expect the money to be there years later? 

Reckless monetary policy essentially dumped piles of cash on the sidewalk. Even honest businessmen are tempted to grab some when they see the pile dwindling and no one being held accountable. Most of us didn’t grab a handful because we are too ethical…or was it because no one told us where the cash pile was?

What happens when the sidewalk cash disappears? Do you think licensing, bonding, and regulating everyone that uses sidewalks is the answer? What a ridiculous solution! It’s amazing that every egghead that spews such idiocy isn’t laughed out of the public eye. A blue ribbon panel of know-it-all regulators cannot change human nature. The commonsense solution: stop leaving money on the sidewalk.

In 2002, Robert Blumen summed up the effect of the activities of Fannie and Freddie on the housing market and the systemic risk and foresaw a coming bailout. He was not alone in predicting the crisis and identifying it’s cause before it happened [accurate public predictions before the crisis]. Those people were silenced through ridicule and scorn.

The U.S. Economy is a game, and that game is rigged. First came the loose money supply, which was dumped into the housing market. Of course you knew this and wisely invested in high return mortgage backed securities, right? Yeah, me too… most of us missed that government sanctioned money grab. Not to worry, there were plenty of Goldman Sachs, Wall Street, and government insiders that capitalized on the windfall.

What about the risk you ask? Forget about it, those that created the game can manipulate the best government their money can buy to bail them out. Market research indicates the suckers (me and you) will fall in lock step when the phrase “economic collapse” is thrown about freely. Trillions in wealth has disappeared (from me and you), but the priviledged few that engineered the game have retained their wealth. Henry Paulson amassed a fortune estimated around $700 million while running Goldman Sachs, he kept every penny and even cashed out tax-free by becoming the Treasury Secretary. Henry Paulson is one of the many insiders that is both Wall Street and government. It’s probably a much better investment to become the government instead of buying it.

So now your thinking: “Let’s regulate them!” Of course you’re thinking that, we all are. The idea has been repeatedly broadcast by every major media outlet in the world. Dr. Herbert Krugman’s effective frequency (repetition of an idea) ensures that regulation is always our first thought, often our only thought. The people that engineered the crisis have been involved in every step, sat at every policy council, and even directed the Fed response. This con has been performed in the glare of the public spotlight. Luckily for them, we are suckers – plus those guys are kinda boring.

The insiders are pushing regulation. Of course they are, regulation protects the insiders from competition (try to start a banking home business). Regulation centralizes the power, the resources, and the money. It’s much easier to buy political power when it’s all concentrated in one place. Regulation didn’t protect you from the monetary policy that lead to the mortgage-backed-securities-game that siphoned $50,000 in lost wealth from every Family in America. According to numbers issued by the Federal Reserve: families’ median net worth fell almost 40% between 2007 and 2010. The suckers always foot the bill (this last point was not mentioned in the Fed report).

Who caused the crisis? Fat cats and government. Who have we given the authority to fix the problem? Fat cats and government. Why? Because they told us to.

Wait a minute, let’s give reason a try. Finance is the most heavily regulated industry in the world, and pretty much always has been. Every collapse, bubble, hiccup, con, and fraud that comes out of the world of finance has led to more and more regulation. Each time government fails, they are rewarded with more money and more power.

So what should we do? I don’t know, I doubt anyone knows – even if they say otherwise. There’s just one obvious next step: ignore what the insiders and their government tells us to do. The federal government appears to be bought and paid for by special interests.

Reverse the flow of wealth and power back to the people. An unregulated economy and finance sector is sure to steal from people now and then – but when they do, it will be for hundreds, thousands, maybe even millions of dollars. The heavily regulated finance sector stole TRILLIONS from us. It wasn’t the first time, it won’t be the last – as long as we continue to do what we’re told.

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Liberalism: A Mental Disability?

Posted by on Feb 6, 2011 in Dollars & Sense, Economy, End of Capitalism | 20 comments

The Great Depression, like most other periods of severe unemployment, was produced by government mismanagement rather than by any inherent instability of the private economy.
- Milton Friedman

Liberal thinking just doesn’t make sense…

Liberals will actually take the time to block Fox News from their cable or satellite channels.  Why?  Is an opposing view so offensive that it must be shunned even at the cost of more choice?  Why wouldn’t a liberal want to know what the other point of view is?  How can you learn and grow if you refuse to allow your points of view to be challenged?

Liberals will tell you Wallstreet is ruining America.  Then quote Wallstreet elite when they are trying to convince you the stimulous is working.  A liberal regime will hire Wallstreet elite to control the treasury.  Wallstreet and government are so intertwined it is difficult to untangle the mess they have made.  If “Change you can believe in…” meant more Wallstreet control of government – Obama kept that promise.  If Wallstreet is ruining America, why would a liberal government integrate them further into positions of vast power?

Do liberals really want an improved standard of living for all Americans?  The answer here can only be: “No”.  Any rational look at the wealth of nations and standards of living will clearly demonstrate less government builds wealth for all.  Liberals should be clear – they want equality over actual quality.  Yes, we can all live a somewhat economically equal existance, but it will be a low standard.  The upper middle class in the Soviet Union was allowed a 2 bedroom apartment and public transportation.  The lower middle class in America has 3 bedrooms and 2 cars!  Yes, the super rich would live a lifestyle far in excess of the lowest rungs.  However, even the lowest rungs will have food, shelter, and most importantly:  the opportunity to succeed.

Liberals seem to spit in the face of logic when it comes to results.  Obama set expectations for what the stimulous would do and not do.  Unemployment was not supposed to go over 8% if we approved the stimulous.  Unemployment has exceeded 8% even using the ridiculously understated US Bureau of Labor Statistics numbers.  Most economists examing the data are arriving at figures 50% higher.  So what is the logical solution?  It’s obvious to rational people that the stimulous did not deliver as promised, try the opposite – give the money back to the people.  For liberals, the answer is “more of the same”.

Liberals claim to value science.  This might be news to liberals, but science and science fiction are two different things.  Science is a rigorous system of observation, testing, data analysis, and finally a conclusion.  How would that system apply to government?  Easy – reduce federal power.  Allow the states to test theories of government within their borders.  Winners and losers will quickly stand out.  Testing aggressive government programs by forcing the entire nation to adopt them is insanity, not science.  Dispite the massive consolidation of power, we do have some examples among the states that stand out.  Oregon has the highest unemployment in the nation – so should we copy what they are doing?  Liberals say “Yes!”  Oregon has the highest minimum wage, the federal government is going to force that wage on all of the states.  If liberals have decided to use science to destroy America, they are on the right track.  Recklessly experimenting on the entire population is a recipe for disaster.  Choosing the worst examples and emulating their programs nationwide seems to indicate a desire to create negative results.

Note to conservatives:  Don’t consider this post an endorsement of your bungling form of thinking.  After all, it was you idiots that screwed things up so bad that America thought voting in liberals was a rational idea.

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Was it Wilson, Roosevelt, Johnson, Clinton, or Bush?

Posted by on Feb 6, 2009 in American Economy, Bailout, Dollars & Sense, Drugs, Economy, End of Capitalism, Falling Dollar, Free Thinkers, In the News, Poverty, Presidential Candidates, Ron Paul, Suckered, US Dollar, War on | 2 comments

Who screwed up our economy?

Governments never learn, only people learn.
- Milton Friedman

Under Woodrow Wilson the Federal Reserve came into existence under the pretext of providing a stabilizing force to control the economic cycles.  12 years after it’s creation the longest economic crisis in American history happened.

Under Roosevelt The New Deal gave unprecedented power to the federal government.  These new powers allowed government to jump into each new disaster without worrying as much about the troublesome restrictions the Constitution placed on federal powers.  From this point forward, when situations arose, people turned to government, and government acted.  When the problems did not go away, government gained more power, more money and kept trying.  30 to 40 years with the War on Poverty and War on Drugs, government still requests money and power to fix the problems.  Do we ever learn?

Johnson turned to the disenfranchised and appealed to the American sense of decency to give welfare to the poor.  “Welfare” was an interesting name for a program.  Since the word is used in our founding documents, it must be constitutional right?  Not only did this advance the causes of redistribution and socialism, but it has also lead to the general accepted use of misdirection in legislation names.  If a ‘privacy’ bill is passed, your privacy is probably gone.  If a ‘child protection’ act becomes law, parents are probably no longer the protector of their children.

Under Clinton nothing huge seemed to happen.  It looked like we would have government health care forced upon us, but that did not pass.  One small thing slipped by, the quasi-government mortgage backers Fannie Mae and Freddie Mac were pressured to release funds to under qualified applicants.  No one, not democrats, not republicans, and very few libertarians would see this for the looming disaster it has turned into.

Under Bush we made some huge strides into fascism.  The rights of the individual became secondary to the will of the government.  Additionally, Bush gave us an unjustified war by mistake which has had crippling costs.  Finally, let’s not forget the end of the Bush years with multiple stimulus packages, each more costly than the last.

So who got us into this mess?  All of the above, plus WE let them.  It could also be said that It’s human nature.

Societies without much government interference grow and prosper.  Then they misguidedly look after the lower classes with government welfare.  Government grows, causes problems, and then grows again when everyone habitually turns to government to fix the next crisis, which comes sooner and sooner.

All the great societies of the world have fallen before us.  Now it’s our turn.  I would say it is inevitable, but we have something working in our favor that never existed before:  exponential growth of technology.

If the rapid growth of computers, the internet, and digital storage hadn’t introduced an entirely new industry to America over the last 15 years, our economy would have likely collapsed years ago.

A new industry now could prolong our way of life.  Advances in alternative energy could have a breakthrough allowing cheap and clean energy.  Medical/biological advances could add years to our lives and possible allow the skilled senior citizens to remain economically valuable in their later years.  Robotics could improve overall productivity.  Nanotechnology could build anything and everything for pennies, which we might be able to afford in the decades to come.

So what should we be doing now?  Hell if I know.  Be very wary of government that has a plan.  It’s likely that if you think our current problems are bad, just wait until you see the solutions.

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The End of Choice

Posted by on Dec 23, 2008 in American Economy, Bailout, Dollars & Sense, Economy, End of Capitalism | 6 comments

The unions might be good for the people who are in the unions but it doesn’t do a thing for the people who are unemployed. Because the union keeps down the number of jobs, it doesn’t do a thing for them. -Milton Friedman

One of the beautiful aspects of a free market system is choice.  In a free market economy you can choose which grocery store to buy from, which movies to see, and what car to buy.  Not only can you choose which companies to do business with, you can choose which to avoid.

Let’s not debate the merits of Unions.  I’m comfortable with agreeing to disagree that Unions are destroying the spirit of innovation that helped make America great.  This has never been a problem in the past because freedom-loving individualists have had the ability to choose a Union-made automobile or a non-Union alternative.  That choice is now gone.  We may not be forced to buy Union cars (yet), but we are forced to support the Unions with our tax dollars.  Now, even if you buy a small foreign car with great gas mileage, you can take comfort in the fact that you are also paying for a vehicle you purposely chose to avoid.

You may not agree with my positions, but do you really believe it is fair to force every American to support Unions?  This is the path we are now walking.  All Americans will be forced to support causes whether they agree or disagree.

Our tax dollars are now contributing to disastrous corporate strategies.  Are you happy about paying for CEO golden parachutes?  Nobody cares what you think, you are now supporting the cause of keeping failed CEO’s in the lifestyle they are accustomed to.  Are you a proponent of Detroit’s strategy of an SUV in every driveway?  Your representatives no longer care about your opinion, your tax dollars will be paying for that failed business mistake for years to come.

Whether your cause of choice is corrupt politicians funneling money to Unions, wooden arrows, Wallstreet, ACORN, or CEO compensation packages – congratulations, you and every other American are now contributors to the cause.  Were you smart enough to realize Fannie Mae, Freddie Mac, AIG, Ford, GM, Chrysler, and countless banks were terrible investments?  Tough, you now own a piece or are financing all of them.  Plus, you have the added benefit of typical government incompetence in managing your hard earned tax dollars, they have already lost track of $300 billion of your money.  $300 billion here, $300 billion there, pretty soon this is going to get expensive.

The loss of choice just one sad consequence of allowing government to grow in power, size, and intrusiveness.  There once was a time when you could pick and choose the products you buy, the causes you support, the companies you invest in, and the charities you wish to donate to.  You are now being robbed of that ability to choose.  Now, you will be forced to give until it hurts to any cause or company politicians have deemed beneficial to their own self-interest.
Welcome to the new America:  less choice, more government.
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