tag:blogger.com,1999:blog-83316138281443403882024-02-18T22:04:42.423-08:00Ozymandias' MirrorRafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.comBlogger48125tag:blogger.com,1999:blog-8331613828144340388.post-27905174685648171162015-02-05T05:08:00.003-08:002015-02-05T05:09:01.537-08:00ReturningGoing to fire this blog up again, though I make no guarantees as to the frequency with which I will post. The format is going to change, and will not be politics/economics centered, but will still try to be a place for the expression and development of ideas. There will be thoughts on the oil markets, thoughts on philosophy, thoughts on life experiences - in short, there will be thoughts! Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com0tag:blogger.com,1999:blog-8331613828144340388.post-88302219821933441642010-03-22T10:57:00.003-07:002010-03-22T10:57:48.691-07:00What has been created by ObamacareJust so everyone knows what has been done to us, here is a list of new offices, boards, bureaucracies, committees, councils, exchanges, programs, etc. created in the health care “reform” bill. Section and page number references are included for those who wish to look them up.<br /><br />1. Grant program for consumer assistance offices (Section 1002, p. 37)<br />2. Grant program for states to monitor premium increases (Section 1003, p. 42)<br />3. Committee to review administrative simplification standards (Section 1104, p. 71)<br />4. Demonstration program for state wellness programs (Section 1201, p. 93)<br />5. Grant program to establish state Exchanges (Section 1311(a), p. 130)<br />6. State American Health Benefit Exchanges (Section 1311(b), p. 131)<br />7. Exchange grants to establish consumer navigator programs (Section 1311(i), p. 150)<br />8. Grant program for state cooperatives (Section 1322, p. 169)<br />9. Advisory board for state cooperatives (Section 1322(b)(3), p. 173)<br />10. Private purchasing council for state cooperatives (Section 1322(d), p. 177)<br />11. State basic health plan programs (Section 1331, p. 201)<br />12. State-based reinsurance program (Section 1341, p. 226)<br />13. Program of risk corridors for individual and small group markets (Section 1342, p. 233)<br />14. Program to determine eligibility for Exchange participation (Section 1411, p. 267)<br />15. Program for advance determination of tax credit eligibility (Section 1412, p. 288)<br />16. Grant program to implement health IT enrollment standards (Section 1561, p. 370)<br />17. Federal Coordinated Health Care Office for dual eligible beneficiaries (Section 2602, p. 512)<br />18. Medicaid quality measurement program (Section 2701, p. 518)<br />19. Medicaid health home program for people with chronic conditions, and grants for planning same (Section 2703, p. 524)<br />20. Medicaid demonstration project to evaluate bundled payments (Section 2704, p. 532)<br />21. Medicaid demonstration project for global payment system (Section 2705, p. 536)<br />22. Medicaid demonstration project for accountable care organizations (Section 2706, p. 538)<br />23. Medicaid demonstration project for emergency psychiatric care (Section 2707, p. 540)<br />24. Grant program for delivery of services to individuals with postpartum depression (Section 2952(b), p. 591)<br />25. State allotments for grants to promote personal responsibility education programs (Section 2953, p. 596)<br />26. Medicare value-based purchasing program (Section 3001(a), p. 613)<br />27. Medicare value-based purchasing demonstration program for critical access hospitals (Section 3001(b), p. 637)<br />28. Medicare value-based purchasing program for skilled nursing facilities (Section 3006(a), p. 666)<br />29. Medicare value-based purchasing program for home health agencies (Section 3006(b), p. 668)<br />30. Interagency Working Group on Health Care Quality (Section 3012, p. 688)<br />31. Grant program to develop health care quality measures (Section 3013, p. 693)<br />32. Center for Medicare and Medicaid Innovation (Section 3021, p. 712)<br />33. Medicare shared savings program (Section 3022, p. 728)<br />34. Medicare pilot program on payment bundling (Section 3023, p. 739)<br />35. Independence at home medical practice demonstration program (Section 3024, p. 752)<br />36. Program for use of patient safety organizations to reduce hospital readmission rates (Section 3025(b), p. 775)<br />37. Community-based care transitions program (Section 3026, p. 776)<br />38. Demonstration project for payment of complex diagnostic laboratory tests (Section 3113, p. 800)<br />39. Medicare hospice concurrent care demonstration project (Section 3140, p. 850)<br />40. Independent Payment Advisory Board (Section 3403, p. 982)<br />41. Consumer Advisory Council for Independent Payment Advisory Board (Section 3403, p. 1027)<br />42. Grant program for technical assistance to providers implementing health quality practices (Section 3501, p. 1043)<br />43. Grant program to establish interdisciplinary health teams (Section 3502, p. 1048)<br />44. Grant program to implement medication therapy management (Section 3503, p. 1055)<br />45. Grant program to support emergency care pilot programs (Section 3504, p. 1061)<br />46. Grant program to promote universal access to trauma services (Section 3505(b), p. 1081)<br />47. Grant program to develop and promote shared decision-making aids (Section 3506, p. 1088)<br />48. Grant program to support implementation of shared decision-making (Section 3506, p. 1091)<br />49. Grant program to integrate quality improvement in clinical education (Section 3508, p. 1095)<br />50. Health and Human Services Coordinating Committee on Women’s Health (Section 3509(a), p. 1098)<br />51. Centers for Disease Control Office of Women’s Health (Section 3509(b), p. 1102)<br />52. Agency for Healthcare Research and Quality Office of Women’s Health (Section 3509(e), p. 1105)<br />53. Health Resources and Services Administration Office of Women’s Health (Section 3509(f), p. 1106)<br />54. Food and Drug Administration Office of Women’s Health (Section 3509(g), p. 1109)<br />55. National Prevention, Health Promotion, and Public Health Council (Section 4001, p. 1114)<br />56. Advisory Group on Prevention, Health Promotion, and Integrative and Public Health (Section 4001(f), p. 1117)<br />57. Prevention and Public Health Fund (Section 4002, p. 1121)<br />58. Community Preventive Services Task Force (Section 4003(b), p. 1126)<br />59. Grant program to support school-based health centers (Section 4101, p. 1135)<br />60. Grant program to promote research-based dental caries disease management (Section 4102, p. 1147)<br />61. Grant program for States to prevent chronic disease in Medicaid beneficiaries (Section 4108, p. 1174)<br />62. Community transformation grants (Section 4201, p. 1182)<br />63. Grant program to provide public health interventions (Section 4202, p. 1188)<br />64. Demonstration program of grants to improve child immunization rates (Section 4204(b), p. 1200)<br />65. Pilot program for risk-factor assessments provided through community health centers (Section 4206, p. 1215)<br />66. Grant program to increase epidemiology and laboratory capacity (Section 4304, p. 1233)<br />67. Interagency Pain Research Coordinating Committee (Section 4305, p. 1238)<br />68. National Health Care Workforce Commission (Section 5101, p. 1256)<br />69. Grant program to plan health care workforce development activities (Section 5102(c), p. 1275)<br />70. Grant program to implement health care workforce development activities (Section 5102(d), p. 1279)<br />71. Pediatric specialty loan repayment program (Section 5203, p. 1295)<br />72. Public Health Workforce Loan Repayment Program (Section 5204, p. 1300)<br />73. Allied Health Loan Forgiveness Program (Section 5205, p. 1305)<br />74. Grant program to provide mid-career training for health professionals (Section 5206, p. 1307)<br />75. Grant program to fund nurse-managed health clinics (Section 5208, p. 1310)<br />76. Grant program to support primary care training programs (Section 5301, p. 1315)<br />77. Grant program to fund training for direct care workers (Section 5302, p. 1322)<br />78. Grant program to develop dental training programs (Section 5303, p. 1325)<br />79. Demonstration program to increase access to dental health care in underserved communities (Section 5304, p. 1331)<br />80. Grant program to promote geriatric education centers (Section 5305, p. 1334)<br />81. Grant program to promote health professionals entering geriatrics (Section 5305, p. 1339)<br />82. Grant program to promote training in mental and behavioral health (Section 5306, p. 1344)<br />83. Grant program to promote nurse retention programs (Section 5309, p. 1354)<br />84. Student loan forgiveness for nursing school faculty (Section 5311(b), p. 1360)<br />85. Grant program to promote positive health behaviors and outcomes (Section 5313, p. 1364)<br />86. Public Health Sciences Track for medical students (Section 5315, p. 1372)<br />87. Primary Care Extension Program to educate providers (Section 5405, p. 1404)<br />88. Grant program for demonstration projects to address health workforce shortage needs (Section 5507, p. 1442)<br />89. Grant program for demonstration projects to develop training programs for home health aides (Section 5507, p. 1447)<br />90. Grant program to establish new primary care residency programs (Section 5508(a), p. 1458)<br />91. Program of payments to teaching health centers that sponsor medical residency training (Section 5508(c), p. 1462)<br />92. Graduate nurse education demonstration program (Section 5509, p. 1472)<br />93. Grant program to establish demonstration projects for community-based mental health settings (Section 5604, p. 1486)<br />94. Commission on Key National Indicators (Section 5605, p. 1489)<br />95. Quality assurance and performance improvement program for skilled nursing facilities (Section 6102, p. 1554)<br />96. Special focus facility program for skilled nursing facilities (Section 6103(a)(3), p. 1561)<br />97. Special focus facility program for nursing facilities (Section 6103(b)(3), p. 1568)<br />98. National independent monitor pilot program for skilled nursing facilities and nursing facilities (Section 6112, p. 1589)<br />99. Demonstration projects for nursing facilities involved in the culture change movement (Section 6114, p. 1597)<br />100. Patient-Centered Outcomes Research Institute (Section 6301, p. 1619)<br />101. Standing methodology committee for Patient-Centered Outcomes Research Institute (Section 6301, p. 1629)<br />102. Board of Governors for Patient-Centered Outcomes Research Institute (Section 6301, p. 1638)<br />103. Patient-Centered Outcomes Research Trust Fund (Section 6301(e), p. 1656)<br />104. Elder Justice Coordinating Council (Section 6703, p. 1773)<br />105. Advisory Board on Elder Abuse, Neglect, and Exploitation (Section 6703, p. 1776)<br />106. Grant program to create elder abuse forensic centers (Section 6703, p. 1783)<br />107. Grant program to promote continuing education for long-term care staffers (Section 6703, p. 1787)<br />108. Grant program to improve management practices and training (Section 6703, p. 1788)<br />109. Grant program to subsidize costs of electronic health records (Section 6703, p. 1791)<br />110. Grant program to promote adult protective services (Section 6703, p. 1796)<br />111. Grant program to conduct elder abuse detection and prevention (Section 6703, p. 1798)<br />112. Grant program to support long-term care ombudsmen (Section 6703, p. 1800)<br />113. National Training Institute for long-term care surveyors (Section 6703, p. 1806)<br />114. Grant program to fund State surveys of long-term care residences (Section 6703, p. 1809)<br />115. CLASS Independence Fund (Section 8002, p. 1926)<br />116. CLASS Independence Fund Board of Trustees (Section 8002, p. 1927)<br />117. CLASS Independence Advisory Council (Section 8002, p. 1931)<br />118. Personal Care Attendants Workforce Advisory Panel (Section 8002(c), p. 1938)<br />119. Multi-state health plans offered by Office of Personnel Management (Section 10104(p), p. 2086)<br />120. Advisory board for multi-state health plans (Section 10104(p), p. 2094)<br />121. Pregnancy Assistance Fund (Section 10212, p. 2164)<br />122. Value-based purchasing program for ambulatory surgical centers (Section 10301, p. 2176)<br />123. Demonstration project for payment adjustments to home health services (Section 10315, p. 2200)<br />124. Pilot program for care of individuals in environmental emergency declaration areas (Section 10323, p. 2223)<br />125. Grant program to screen at-risk individuals for environmental health conditions (Section 10323(b), p. 2231)<br />126. Pilot programs to implement value-based purchasing (Section 10326, p. 2242)<br />127. Grant program to support community-based collaborative care networks (Section 10333, p. 2265)<br />128. Centers for Disease Control Office of Minority Health (Section 10334, p. 2272)<br />129. Health Resources and Services Administration Office of Minority Health (Section 10334, p. 2272)<br />130. Substance Abuse and Mental Health Services Administration Office of Minority Health (Section 10334, p. 2272)<br />131. Agency for Healthcare Research and Quality Office of Minority Health (Section 10334, p. 2272)<br />132. Food and Drug Administration Office of Minority Health (Section 10334, p. 2272)<br />133. Centers for Medicare and Medicaid Services Office of Minority Health (Section 10334, p. 2272)<br />134. Grant program to promote small business wellness programs (Section 10408, p. 2285)<br />135. Cures Acceleration Network (Section 10409, p. 2289)<br />136. Cures Acceleration Network Review Board (Section 10409, p. 2291)<br />137. Grant program for Cures Acceleration Network (Section 10409, p. 2297)<br />138. Grant program to promote centers of excellence for depression (Section 10410, p. 2304)<br />139. Advisory committee for young women’s breast health awareness education campaign (Section 10413, p. 2322)<br />140. Grant program to provide assistance to provide information to young women with breast cancer (Section 10413, p. 2326)<br />141. Interagency Access to Health Care in Alaska Task Force (Section 10501, p. 2329)<br />142. Grant program to train nurse practitioners as primary care providers (Section 10501(e), p. 2332)<br />143. Grant program for community-based diabetes prevention (Section 10501(g), p. 2337)<br />144. Grant program for providers who treat a high percentage of medically underserved populations (Section 10501(k), p. 2343)<br />145. Grant program to recruit students to practice in underserved communities (Section 10501(l), p. 2344)<br />146. Community Health Center Fund (Section 10503, p. 2355)<br />147. Demonstration project to provide access to health care for the uninsured at reduced fees (Section 10504, p. 2357)<br />148. Demonstration program to explore alternatives to tort litigation (Section 10607, p. 2369)<br />149. Indian Health demonstration program for chronic shortages of health professionals (S. 1790, Section 112, p. 24)*<br />150. Office of Indian Men’s Health (S. 1790, Section 136, p. 71)*<br />151. Indian Country modular component facilities demonstration program (S. 1790, Section 146, p. 108)*<br />152. Indian mobile health stations demonstration program (S. 1790, Section 147, p. 111)*<br />153. Office of Direct Service Tribes (S. 1790, Section 172, p. 151)*<br />154. Indian Health Service mental health technician training program (S. 1790, Section 181, p. 173)*<br />155. Indian Health Service program for treatment of child sexual abuse victims (S. 1790, Section 181, p. 192)*<br />156. Indian Health Service program for treatment of domestic violence and sexual abuse (S. 1790, Section 181, p. 194)*<br />157. Indian youth telemental health demonstration project (S. 1790, Section 181, p. 204)*<br />158. Indian youth life skills demonstration project (S. 1790, Section 181, p. 220)*<br />159. Indian Health Service Director of HIV/AIDS Prevention and Treatment (S. 1790, Section 199B, p. 258)*<br /><br />Lets tack on 16,500 new IRS jobs. (<a href="http://www.examiner.com/x-4577-Milwaukee-Unemployment-Examiner%7Ey2010m3d21-Passage-of-Obama-health-care-plan-will-mean-new-jobs" target="_blank">http://www.examiner.com/x-<wbr>4577-Milwaukee-Unemployment-<wbr>Examiner~y2010m3d21-Passage-<wbr>of-Obama-health-care-plan-<wbr>will-mean-new-jobs</a>)<br /><br />"He has erected a multitude of New Offices, and sent hither swarms of Officers to harass our people and eat out their substance." - Declaration of Independence<br /><br />(HT: Michael Smith in comments section at Cafe Hayek)Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com2tag:blogger.com,1999:blog-8331613828144340388.post-92011336765126367052010-01-07T12:19:00.000-08:002010-01-07T13:49:57.012-08:00Energy cracks 1.8.10Lets start with the heating oil crack:<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxULpuxzSt3byJlfc-77qIBx5OhOm3IJUbqpECv3s7ddBDHdr5vjWQ1OeIOgawJedocBaN-bqONA4-YL93zQPS7ZGK4aAx9CG-IE44uYanegetgSh6PH7bxQq1RLagQG7H-kcZgjasPKQ/s1600-h/HO+daily+jan+8+10.bmp"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 342px; height: 429px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxULpuxzSt3byJlfc-77qIBx5OhOm3IJUbqpECv3s7ddBDHdr5vjWQ1OeIOgawJedocBaN-bqONA4-YL93zQPS7ZGK4aAx9CG-IE44uYanegetgSh6PH7bxQq1RLagQG7H-kcZgjasPKQ/s400/HO+daily+jan+8+10.bmp" alt="" id="BLOGGER_PHOTO_ID_5424106317865997522" border="0" /></a><br /><br />Crude oil found support at $82.50, while heating oil weakened and could not stay above $2.19. At around 11:15, the crack broke through a multi-day support near 925, coinciding with HO's inability to sustain the price level of $2.19.<br /><br />Heating oil appears to be running out of steam sooner than crude. The past 3 days have seen HO failing to make new highs, while crude is still strong. Both markets have rallied hard, and a general correction is not out of the question. If crude reverses, the relative weakness of HO could see the crack experiencing a sharp drop. The past three days have seen the crack sell off as HO stalls:<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgsmLADsCd_i6R1QmwvYeajWnp70IELIr6A3mBINRDskySsy-1CKWTyowsb8RoNA5dPmv1DwHliLvFsmCViLxM_28ZyVDycYlZpxPAtFusSQyAtSrHl3nhn-WuVNFnIl1yXRXZhl_K8krg/s1600-h/HO+daily+jan+8+102.bmp"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 317px; height: 400px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgsmLADsCd_i6R1QmwvYeajWnp70IELIr6A3mBINRDskySsy-1CKWTyowsb8RoNA5dPmv1DwHliLvFsmCViLxM_28ZyVDycYlZpxPAtFusSQyAtSrHl3nhn-WuVNFnIl1yXRXZhl_K8krg/s400/HO+daily+jan+8+102.bmp" alt="" id="BLOGGER_PHOTO_ID_5424111453568858754" border="0" /></a>See the 720 min chart to see the crack's recent collapse:<br /><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9M5XXUlhWfmlH5rgicdFQmAiGyBFGXNkSg9H6KLkha5FfRpZ-YsnMFCeG4GmdbG4iBn-lDkMsGkzG2dit38v3-pGMjQqhSlTLptVM1NTk3rxGbvkZmQ24Ieev3k9DrNc0rGW1FBQVlMk/s1600-h/HOCL+5min+10810.bmp"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 400px; height: 296px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9M5XXUlhWfmlH5rgicdFQmAiGyBFGXNkSg9H6KLkha5FfRpZ-YsnMFCeG4GmdbG4iBn-lDkMsGkzG2dit38v3-pGMjQqhSlTLptVM1NTk3rxGbvkZmQ24Ieev3k9DrNc0rGW1FBQVlMk/s400/HOCL+5min+10810.bmp" alt="" id="BLOGGER_PHOTO_ID_5424107618373634306" border="0" /></a><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZTwes3uvHnd9zCw1tKMHAFWfaz-fk4eBjrVQ1bV3zcZyn0YsL3UME8KNVKXmqBlp5Asz1dMJdf2DUmxQ9klor5FvMeHIEymiws4Q39gaUPkHH6yQaEaGEdIsTftQSppvbhb4QH9vrumo/s1600-h/HOCL+720min+10810.bmp"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 400px; height: 296px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZTwes3uvHnd9zCw1tKMHAFWfaz-fk4eBjrVQ1bV3zcZyn0YsL3UME8KNVKXmqBlp5Asz1dMJdf2DUmxQ9klor5FvMeHIEymiws4Q39gaUPkHH6yQaEaGEdIsTftQSppvbhb4QH9vrumo/s400/HOCL+720min+10810.bmp" alt="" id="BLOGGER_PHOTO_ID_5424107976505122018" border="0" /></a><br />HOCL is approaching a previous resistance in the 885-890 range. Going forward, a new range may be established between 890-940, or the sell off will continue with the next logical stop being 50 points lower in the 840 area. If the HOCL breaks below 880, it would appear to be a smart sell.<br /><br /><br />Now lets take a look at RBCL:<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMBiuQ14h8cnzIupfXT6uYToYhsCZzR8Idp7MHnolXZIXYztdCzjP3GzfQ0IkYYk9Kfj-T6Ni_GnEu1W44JypLBLxPdYMn0eubm8Fsq8tZMVKchrfBuwRQBZkEn04Dmc-Bn0-6vrRE2Ws/s1600-h/RBCL+10810.bmp"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 248px; height: 491px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMBiuQ14h8cnzIupfXT6uYToYhsCZzR8Idp7MHnolXZIXYztdCzjP3GzfQ0IkYYk9Kfj-T6Ni_GnEu1W44JypLBLxPdYMn0eubm8Fsq8tZMVKchrfBuwRQBZkEn04Dmc-Bn0-6vrRE2Ws/s400/RBCL+10810.bmp" alt="" id="BLOGGER_PHOTO_ID_5424111446200397970" border="0" /></a><br />RB appears to have significant support in the 640-650 region. It is keeping pace with crude's advance, in contrast to HO. The uptrend was broken as the market closed below 700 yesterday. However, in light of today's action and the failure to break below support in the 650 area, the most likely scenarios for tomorrow are either retesting the 725-730 top, or the 650 low. I think a breakout in either direction is unlikely, though a breakout to the upside seems more likely than the downside.Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com0tag:blogger.com,1999:blog-8331613828144340388.post-1058848531076782232009-10-16T08:24:00.001-07:002009-10-16T08:56:13.150-07:00Fresh produce 10.16.09A lot of links today! Interventionism, the nanny state, and bureaucratic hubris are alive and well. Our colony in Asia... not so much.<br /><br />1. <a href="http://www.latimes.com/business/la-fi-bigtvs14-2009oct14,0,4908205.story">Consumers can't buy any big screen TV they want</a>, but Hummer is still in business (for now). <br /><br />2. <a href="http://www.telegraph.co.uk/health/children_shealth/6306858/Australia-ban-TV-for-under-twos.html">Australian children under two aren't allowed to watch "too much" TV</a>, says the state.<br /><br />3. <a href="http://apnews.myway.com/article/20091015/D9BB7CGG1.html">This story</a> foreshadows what will happen when entitlement payments are slashed en masse... You see similar human behavior in <a href="http://www.nowpublic.com/world/chaos-erupts-detroit-federal-aid-center">this scenario</a> as well.<br /><br />4. The latest "right" to be <a href="http://edition.cnn.com/2009/TECH/10/15/finland.internet.rights/index.html">bestowed by a government to its people</a> is broadband internet. Upon creation of this new legal right, <a href="http://www.lewrockwell.com/blog/lewrw/archives/39999.html">injustice is created all over the world.</a><br /><br />5. FRONTLINE over at PBS does an excellent job of <a href="http://www.pbs.org/wgbh/pages/frontline/obamaswar/view/">reporting on Obama's war in Afghanistan</a>. It settled the debate for me of whether or not the US is engaged in nation-building.Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com0tag:blogger.com,1999:blog-8331613828144340388.post-87324807602156516232009-10-12T21:58:00.001-07:002009-10-12T21:58:50.404-07:00Love thisVia lewrockwell.com :<br /><br /><object width="320" height="265"><param name="movie" value="http://www.youtube.com/v/v-5Ts_i164c&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/v-5Ts_i164c&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="320" height="265"></embed></object>Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com0tag:blogger.com,1999:blog-8331613828144340388.post-68803856195021312852009-10-01T08:03:00.000-07:002009-10-01T09:30:16.459-07:00Presidential Worship?The idea that the government can protect us from certain realities of life - poverty, disease, risk - is pretty popular in the world today. In my understanding the USA was formed on the belief that government is only there to protect us from other men, from force and fraud, not from natural events. <br /><br />Early 20th century progressives dreamed of a "new man" and a new society, with the State being the apparatus to bring about social change. Mussolini was the champion of early progressives. Many American politicians and journalists applauded his blend of State and capitalism, saying that it was a more efficient means to bring the type of social change they desired. This sentiment <a href="http://www.youtube.com/watch?v=LuQpfElLVsA">still exists today, and it is quite open</a>(see video @2:35).<br /><br />Mussolini coined the term "totalitarianism". "Everything in the state, nothing outside the state." It is a seductive mirage, the idea that by using the guns of government man can mold himself into a new, more perfect being. The theme being that if only the people would submit their will to the government, we would all be better off. Everything - your life, your property, your ideas - in the state, nothing outside the state. That is the creed of totalitarianism.<br /><br />But it is nonsense. Humans are individual moral actors, and any perfection of mankind has to emerge from the heart of each individual. No amount of external power can force perfection into the heart of any man. Reality flies in the face of the totalitarian philosophy. We cannot rely on the State to remove us from forces of nature. Yet this philosophy is part of American culture, and actually has been adopted by man for ages. <a href="http://www.reshafim.org.il/ad/egypt/administration/pharaoh.htm">Before it was kings</a>, now it is the president. <br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://farm3.static.flickr.com/2247/2231258092_43d8e672b5.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 333px; height: 500px;" src="http://farm3.static.flickr.com/2247/2231258092_43d8e672b5.jpg" border="0" alt="" /></a><br />What does this image, pregnant with emotion, mean?<br /><br /><a href="http://dictionary.reference.com/browse/worship">Worship</a>: 1. reverent honor and homage paid to God or a sacred personage, or to any object regarded as sacred. <a href="http://www.etymonline.com/index.php?search=worship&searchmode=none">2.</a> O.E. worðscip, wurðscip (Anglian), weorðscipe (W.Saxon) "condition of being worthy, honor, renown," from weorð "worthy" (see worth) + -scipe (see -ship). Sense of "reverence paid to a supernatural or divine being" is first recorded c.1300. The original sense is preserved in the title worshipful (c.1300). The verb is recorded from c.1200.<br /><br />Totalitarianism is marked by a reverence paid to its supposed supernatural ability to legislate man's perfection. The face of the American state is the president. <br /><br />The following are a collection of videos that illustrate various forms of president worship.<br /><br /><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/oWvIOPiKFrs&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/oWvIOPiKFrs&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object><br /><br /><object width="480" height="295"><param name="movie" value="http://www.youtube.com/v/z199q-sZr4Y&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/z199q-sZr4Y&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="480" height="295"></embed></object><br /><br /><object width="480" height="295"><param name="movie" value="http://www.youtube.com/v/bDDCRe_QzuM&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/bDDCRe_QzuM&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="480" height="295"></embed></object><br /><br />I think North Korea really has this whole totalitarian thing down. I mean, they really nail it here:<br /><br /><object width="320" height="265"><param name="movie" value="http://www.youtube.com/v/3dC2aDHtEqk&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/3dC2aDHtEqk&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="320" height="265"></embed></object><br /><br />I'll conclude with an observation and a question. No doubt there are varying degrees of government control. There is limited government, big government, and full blown North Korea "the General is our fatherly god" government. I am not saying that Obama is Kim Jong Il. What I am saying is that the same underlying belief exists in North Korea as it does in the United States: that we should be dependent on the government to protect us from nature, not merely force or fraud. I ask the question: if you don't think that our history and these videos constitute a form of government worship, at what point would you?Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com0tag:blogger.com,1999:blog-8331613828144340388.post-85163009749112849962009-09-10T22:31:00.001-07:002009-09-10T22:33:21.412-07:00Picture worth a thousand words<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFPzmXhG4V8Ck9ceEZdFU2KnFOxKsjW-8fKLEF_xqp_LqZdTCPKKDCTMJXjGh7GkzLwGJesGyKw-XLWuf2oM4p-zZXzBrhILNmdPIdQj2SF0mCKwuIS6YEdTnJqjLijgu_EaIdVNbQruw/s1600-h/obama.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 320px; height: 201px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFPzmXhG4V8Ck9ceEZdFU2KnFOxKsjW-8fKLEF_xqp_LqZdTCPKKDCTMJXjGh7GkzLwGJesGyKw-XLWuf2oM4p-zZXzBrhILNmdPIdQj2SF0mCKwuIS6YEdTnJqjLijgu_EaIdVNbQruw/s320/obama.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5380078728599780242" /></a><br />This will mean different things to different people, but to libertarians and God-fearing, freedom loving people it may turn the stomach.Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com0tag:blogger.com,1999:blog-8331613828144340388.post-43856524750100327092009-08-05T06:47:00.001-07:002009-08-05T06:58:21.963-07:00Fresh Produce 8.5.091. <a href="http://www.zerohedge.com/article/new-wall-street-reality">The New Reality on Wall St.</a>, or, why the stock market will keep rallying.<br /><br />2. <a href="http://www.lewrockwell.com/north/north739.html">Gary North explains why the Fed is afraid</a> of Ron Paul - and the American people - very clearly. Highly recommended.<br /><br />3. <a href="http://www.techradar.com/news/world-of-tech/government-wants-more-cctv-cameras-in-homes-622368">The UK government plans to install CCTV cameras in the homes of 20,000 "problem families".</a> I kid you not.<br /><br />4. <a href="http://blogs.abcnews.com/johnstossel/2009/08/the-cake-party-is-always-in-power.html">John Stossel brings attention to a great Barron's article</a> and the problem of the Cake Party. We will be eating spinach for some time, basically.Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com1tag:blogger.com,1999:blog-8331613828144340388.post-73255482235049332122009-07-30T22:13:00.000-07:002009-08-02T10:23:40.063-07:00Ron Paul: What are they (the Fed) so afraid of?Here Ron Paul addresses Mr. Bernanke's concerns of an audit.<br /><br /><object width="320" height="265"><param name="movie" value="http://www.youtube.com/v/aWxvtNLBbVE&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/aWxvtNLBbVE&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="320" height="265"></embed></object>Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com0tag:blogger.com,1999:blog-8331613828144340388.post-63208236687878204382009-07-30T21:41:00.000-07:002009-07-30T22:07:07.200-07:00Fresh produce 7.31.091. <a href="http://www.zerohedge.com/article/cash-clunkers-part-ii-it%E2%80%99s-all-clunked">The chaos that is "Cash for Clunkers".</a><br /><br />2. <a href="http://www.motherjones.com/politics/2009/07/how-you-finance-goldman-sachs%E2%80%99-profits">Goldman Sach's record profits (and bonuses) are essentially subsidies.</a> That is to say, their profits are taxpayer dollars.<br /><br />3. <a href="http://blogs.abcnews.com/johnstossel/2009/07/outlaw-cigarettes.html">John Stossel ponders outlawing cigarettes.</a> Why not?<br /><br />4. <span><span style="font-size:100%;"><a href="http://american.com/archive/2009/july/capitalism-jewish-achievement-and-the-israel-test"><span class="highlightedSearchTerm">Capitalism</span>, Jewish Achievement, and the <span class="highlightedSearchTerm">Israel</span> Test</a>: Is Israel a capitalist beacon in the Middle East?</span></span>Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com0tag:blogger.com,1999:blog-8331613828144340388.post-5731663857614434272009-07-24T08:58:00.000-07:002009-07-28T18:45:54.771-07:00An Overview of the "Audit the Fed" DebateThe debate over <a href="http://www.govtrack.us/congress/bill.xpd?bill=h111-1207">H.R. 1207</a> and <a href="http://www.govtrack.us/congress/bill.xpd?bill=s111-604">S. 604</a> is achieving quite a bit of publicity. I would like to compile some of the questions and resources surrounding it. To be clear - the audit gives the <a href="http://www.gao.gov/">Government Accountability Office</a> (GAO) additional power to examine<br /><ul><li>The Fed’s discount window operations<br /></li><li>Funding facilities<br /></li><li>Open market operations<br /></li><li>Agreements with foreign banks and governments</li></ul><span style="font-size:100%;">With that said, lets take a look at the arguments for, and against, auditing the Fed.<br /></span><span style="font-style: italic;font-size:130%;" ><br /><span style="font-weight: bold;font-family:arial;" >Why should we audit the Fed?</span></span><br /><br />In <a href="http://mises.org/books/fed.pdf">The Case Against The Fed</a>, Murray Rothbard argues that the Fed enjoys a greater secrecy and independence than even the CIA.<br /><blockquote><span style="font-family:arial;">The CIA and other intelligence operations are</span><br /><span style="font-family:arial;">under control of the Congress. They are accountable: a Congressional committee supervises these operations, controls their budgets, and is informed of their covert activities. It is true that the committee hearings and activities are closed to</span><br /><span style="font-family:arial;">the public; but at least the people's representatives in Congress insure some accountability for these secret agencies.</span><br /><br /><span style="font-family:arial;">...</span><br /><br /><span style="font-family:arial;">The FederalReserve System is accountable to no one; it has no budget; it is subject to no audit; and no Congressional committee knows of, or can truly supervise, its operations. The Federal Reserve, virtually in total control of the nation's vital monetary system, is accountable to nobody—and this strange situation, if acknowledged at all, is invariably trumpeted as a virtue.</span><br /><br /><span style="font-family:arial;">...</span><br /><br /><span style="font-family:arial;">So: if the chronic inflation undergone by Americans, and in almost every other country, is caused by the continuing creation of new money, and if in each country its governmental "Central Bank" (in the United States, the Federal Reserve)</span><br /><span style="font-family:arial;">is the sole monopoly source and creator of all money, who then is responsible for the blight of inflation? Who except the very institution that is solely empowered to create money, that is, the Fed (and the Bank of England, and the Bank ofItaly, and other central banks) itself?</span><br /></blockquote>Rothbard's first chapter is excellent, and highly relevant to this post. I would strongly recommend reading it in its entirety.<br /><br /><a href="http://www.lewrockwell.com/paul/paul554.html">Ron Paul articulates</a>:<br /><p style="font-family:arial;"><span style="font-size:100%;"></span></p><blockquote><p style="font-family:arial;"><span style="font-size:100%;">Claims are made that auditing the Fed would compromise its independence. However, by independence, they really mean secrecy. The Fed clearly cherishes its vast power to create and spend trillions of dollars, diluting the value of every other dollar in circulation, making deals with other central banks, and bailing out cronies, all to the detriment of the taxpayer, and to the enrichment of themselves. I am happy to challenge this type of “independence.”</span></p> <p style="font-family:arial;"> <map name="rpbookMap"><area shape="rect" coords="0,0,201,222" href="http://www.mises.org/store/Revolution-The-A-Manefesto-P481.aspx?AFID=14"> <area shape="rect" coords="1,220,200,300" href="http://www.amazon.com/Revolution-Manifesto-Ron-Paul/dp/160024355X/lewrockwell/"> </map> <span style="font-size:100%;">They claim the Fed is endowed with special intellectual abilities with which to control the market and that central bankers magically know what the market needs. We should just trust them. This is patently ridiculous. The market is a complex and intricate thing. No one knows what the market needs other than the market itself. It sends signals, such as prices, that should be reacted to and respected, not thwarted and controlled. Bankers are not all-knowing and cannot ignore the rules of supply and demand. They might act as if they are, but their manipulation of the market just ends up throwing it wildly off balance, which gives us the boom and bust cycles.</span></p> <p face="arial"><span style="font-size:100%;">They claim the Fed must remain apolitical. No organization is apolitical that relies on the President to appoint the Chairman. In fact, it is subject to the worst sort of politics – power to create trillions of dollars and affect the value of every dollar in the country without the accountability of direct elections or meaningful oversight! The Fed typically enacts monetary policy that is favorable to particular administrations close to elections, to the detriment of long-term considerations. They do this partly because of the political appointee process for the Chairmanship.</span></p></blockquote><p style="font-family: arial;"><span style="font-size:100%;"></span></p>Ron Paul recently articulated the conflict between the people and the Central Bankers in this appearance on MSNBC:<br /><br /><object width="320" height="265"><param name="movie" value="http://www.youtube.com/v/rY_7aq8EFC4&hl=en&fs=1&"><param name="allowFullScreen" value="true"><param name="allowscriptaccess" value="always"><embed src="http://www.youtube.com/v/rY_7aq8EFC4&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="320" height="265"></embed></object><br /><br /><br />Over at Campaign For Liberty, Peter Orvetti asks "<a href="http://www.campaignforliberty.com/article.php?view=151">What's the Establishment Got to Hide?</a>"<br /><blockquote><span style="font-family:arial;">A dollar today is worth less than one-twentieth what it was worth on the day the Federal Reserve was created 96 years ago. Yet over all that time, the unelected Fed has never had to face the full scrutiny of our elected representatives that other powerful agencies must. Even our intelligence agencies must report to Congress -- but not the Fed, which has helped rack up an $11 trillion national debt, and an additional $13 trillion in dubious loans and bailouts.</span><br /><br /><span style="font-family:arial;">The Fed will not say where that money is going. Chairman Ben S. Bernanke has refused to tell Congress, and why should he? There is no means to compel him, and no way to find out what he’s been doing. The Federal Reserve Transparency Act would change that.</span><br /><br /></blockquote><br /><span style="text-decoration: underline;"></span><a href="http://www.c-spanarchives.org/library/index.php?main_page=product_video_info&products_id=287860-1&showVid=true">C-SPAN covers an excellent debate</a> with Tom Woods and others (including Warren Coats, former IMF official) on the pros and cons of auditing and abolishing the Federal Reserve. The basic positions are:<br /><ul><li> Audit and abolish the Fed and replace it with private commodity money and private banking.</li><li>Strip the Fed down to the sole task of protecting the value of the dollar.</li><li>It is too impractical to end the Fed without creating economic instability, so another plan is needed.</li></ul>It is a very good video, if you have the time I recommend it.<br /><br /><a href="http://www.thesmithfamilyfoundation.org/">The Smith Family Foundation</a> hosts a very similar debate with George Selgin, Peter Schiff, Steven Axilrod (former member of the Federal Reserve's Board of Governors), and a political science professor from Columbia University:<br /><br /><embed src="http://blip.tv/play/AYGS1U%2BUjHg" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="420" height="240"></embed><br /><br /><span>I just w</span><span>ant to point out that at minute 58 Axilrod exposes the political interests of the Fed and its Board of Governors.</span><span style="font-style: italic;"><br /><br /><span style="font-weight: bold;font-family:arial;font-size:130%;" >Why shouldn't we audit the Fed?</span></span><br /><br /><a href="http://toobigtobail.tumblr.com/post/150370420/the-feds-independence">Too Big To Bail</a> makes the case that to audit the Fed is essentially to end it, and we should not forget that ultimately it was Congress that created the Federal Reserve system and as such they should be blamed for it. In other words, we are to blame for it, and blaming Bernanke and the Fed for our woes is misplaced anger. As he states,<br /><p></p><blockquote style="font-family: arial;"><p>Don’t get me wrong. I think the idea of a Fed and fiat currency, are bad ideas. I just think we should stop the classic congressional game where we create a problem and then complain about the Fed as if they are to blame. <b>We </b>created the beast and now are not happy with it. <b>We </b>can pull the plug whenever we want. But doing so would be an admission that <b>we </b>screwed up, not the Fed. The issues everyone has seems to be with the institution per se. And we created the institution.</p> <p>So within the very framework that we set up, the Fed’s argument in favor of independence seems to make perfect sense. Of course, I question the whole framework, but given the situation, it does make sense.</p></blockquote><p></p><br />Fed Chairman Ben Bernanke speaks on the issue, and claims that the audit would nullify Fed independence -<br /><br /><br /><script type="text/javascript" src="http://www.pbs.org/wgbh/pages/frontline/js/pap/embed.js?news01s2d2eqa98"></script><br /><br />And from <a href="http://online.wsj.com/article/SB10001424052970203946904574300050657897992.html">his article in the WSJ</a>:<br /><blockquote><span style="font-family:arial;">The Congress, however, purposefully--and for good reason--excluded from the scope of potential GAO reviews some highly sensitive areas, notably monetary policy deliberations and operations, including open market and discount window operations. In doing so, the Congress carefully balanced the need for public accountability with the strong public policy benefits that flow from maintaining an appropriate degree of independence for the central bank in the making and execution of monetary policy. Financial markets, in particular, likely would see a grant of review authority in these areas to the GAO as a serious weakening of monetary policy independence. Because GAO reviews may be initiated at the request of members of Congress, reviews or the threat of reviews in these areas could be seen as efforts to try to influence monetary policy decisions. A perceived loss of monetary policy independence could raise fears about future inflation, leading to higher long-term interest rates and reduced economic and financial stability. We will continue to work with the Congress to provide the information it needs to oversee our activities effectively, yet in a way that does not compromise monetary policy independence.</span><br /></blockquote><br /><a href="http://www.washingtonpost.com/wp-dyn/content/article/2009/07/23/AR2009072303004.html">The Washington Post</a> also thinks auditing the Fed is dangerous:<br /><blockquote><span style="font-family:arial;">Though the bill has attracted 276 co-sponsors in the House and 17 in the Senate, it is wrongheaded in the extreme. By opening up the Fed's most sensitive interest rate and credit policies to public second-guessing, the bill would create a risk -- real and perceived -- of monetary policy bent to suit congressional overseers. This would destroy financial markets' faith in the Fed and, by extension, the value of the U.S. dollar, just as surely as a political "audit" of the Supreme Court's deliberations would undercut public faith in the justice system. ... The Federal Reserve Transparency Act is an unserious answer to a serious question.</span><br /><br /></blockquote>If I may, the serious question is the existence of the Federal Reserve itself. As I find more sources I will update this post and continue to compile them. I hope this is a good start for you, though.Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com0tag:blogger.com,1999:blog-8331613828144340388.post-83732643658043997522009-07-22T21:07:00.001-07:002009-07-22T21:14:46.943-07:00Unintented Consequences with Walter WilliamsAn excellent video series exploring the negative effects of state legislation on black people. The same legislation that was supposedly proposed to <span style="font-style: italic;">help</span> blacks.<br /><br /><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/P1r-r6iLBEI&hl=en&fs=1&"><param name="allowFullScreen" value="true"><param name="allowscriptaccess" value="always"><embed src="http://www.youtube.com/v/P1r-r6iLBEI&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object><br /><br /><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/7DS0XXFdyfI&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/7DS0XXFdyfI&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object><br /><br /><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/NUtY80fv56M&hl=en&fs=1&"><param name="allowFullScreen" value="true"><param name="allowscriptaccess" value="always"><embed src="http://www.youtube.com/v/NUtY80fv56M&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object><br /><br />These videos do a great job exploring the themes of Henry Hazlitt's "Economics in One Lesson". The barrier to entry that is minimum wage, unintended consequences of government intervention in markets, and the deleterious effects of welfarism on the human spirit.Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com0tag:blogger.com,1999:blog-8331613828144340388.post-50332539104545263832009-07-15T21:01:00.001-07:002009-07-15T21:04:20.330-07:00Two Images - Two Countries - Two GovernmentsTwo Bureaucracies.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.lewrockwell.com/rockwell/german-auto-chart.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 417px; height: 680px;" src="http://www.lewrockwell.com/rockwell/german-auto-chart.jpg" alt="" border="0" /></a><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.cafehayek.com/.a/6a00d834518ccc69e20115720ad586970b-800wi"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 397px; height: 306px;" src="http://www.cafehayek.com/.a/6a00d834518ccc69e20115720ad586970b-800wi" alt="" border="0" /></a>Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com0tag:blogger.com,1999:blog-8331613828144340388.post-80352333486644210432009-07-15T16:53:00.000-07:002009-07-15T17:25:43.586-07:00Universal Health Insurance - Government "Option"?<a href="http://news.yahoo.com/s/bloomberg/20090715/pl_bloomberg/a6fujb5nwlde_1">From Yahoo! News</a>:<br /><blockquote>"The House is also proposing a mandate on Americans above a certain income level: People would be penalized as much as 2.5 percent of their income for failure to buy health insurance."<br /></blockquote>Isn't that convenient? Is there a business on the planet that wouldn't take advantage of the ability to levy a penalty on its non-customers for not choosing their product? How can ANYBODY claim that the Federal Government insurance plan will "compete" with private insurance companies when consumers are now penalized for not purchasing a plan?<br /><br />If the government option is cheaper, everyone who is mandated to buy will likely choose that plan. This is about as competitive as putting ex-lax in the other teams' water cooler before hitting the field.<br /><br />Imagine <a href="http://www.bestbuy.com/">Best Buy</a> telling Americans, "If you don't buy our TVs, DVDs, and video games, we'll send you a bill for 2.5% of your income." Of course, no one would pay that bill. Until Best Buy put out a warrant for your arrest...<br /><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://mises.org/Community/resized-image.ashx/__size/500x400/__key/CommunityServer.Components.PostAttachments/00.00.00.22.13/Welfare.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 404px; height: 323px;" src="http://mises.org/Community/resized-image.ashx/__size/500x400/__key/CommunityServer.Components.PostAttachments/00.00.00.22.13/Welfare.jpg" alt="" border="0" /></a>Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com0tag:blogger.com,1999:blog-8331613828144340388.post-59155739693758518212009-07-14T09:09:00.000-07:002009-07-14T12:55:29.711-07:00Who owns the Fed?You would think this question would have an easy answer. Is it public or is it private? If it is public, we the people own it. If it is private, well, the shareholders own it. So who owns the Federal Reserve? <a href="http://tinyurl.com/lqy9rl">Let me google that for you</a>.<br /><br /><a href="http://www.federalreserve.gov/generalinfo/faq/faqfrs.htm#5">Here's</a> what the Fed has to say about the matter:<br /><blockquote>"The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects."</blockquote>Maybe it is just me but that is confusing. Why is "owned" in quotations? So it is not a profit-making institution, but an independent entity within the government. If that is the case, why did a Federal District Court in California rule that the Federal Reserve is a private corporation? See <a href="http://www.save-a-patriot.org/files/view/frcourt.html">here</a>:<blockquote>"Plaintiff, who was injured by vehicle owned and operated by a federal reserve bank, brought action alleging jurisdiction under the Federal Tort Claims Act. The United States District Court for the Central District of California, David W. Williams, J., dismissed holding that federal reserve bank was not a federal agency within meaning of Act and that the court therefore lacked subject-matter jurisdiction. Appeal was taken. The Court of Appeals, Poole, Circuit Judge, held that federal reserve banks are not federal instrumentalities for purposes of the Act, but are independent, privately owned and locally controlled corporations."<br /><br />And further,<br /><br />"Each Federal Reserve Bank is a separate corporation owned by commercial banks in its region. The stockholding commercial banks elect two thirds of each Bank's nine member board of directors. The remaining three directors are appointed by the Federal Reserve Board."<br /><br />And,<br /><br />"Examining the organization and function of the Federal Reserve Banks, and applying the relevant factors, we conclude that the Reserve Banks are not federal instrumentalities for purpose of the FTCA (Federal Tort Claims Act), but are independent, privately owned and locally controlled corporations."</blockquote>It is worthwhile to read the ruling in its entirety, but "independent, privately owned and locally controlled corporations" doesn't seem to jive with "an independent entity within the government". Maybe the District Judge was confused. I certainly am. Lets see if this handy chart from the Richmond, VA Fed can help us...<br /><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.richmondfed.org/publications/education/the_frs_in_action/organization.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 309px; height: 249px;" src="http://www.richmondfed.org/publications/education/the_frs_in_action/organization.jpg" alt="" border="0" /></a><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://midnight.hushedcasket.com/wp-content/uploads/2009/01/federal_reserve_districts_map.png"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 368px; height: 212px;" src="http://midnight.hushedcasket.com/wp-content/uploads/2009/01/federal_reserve_districts_map.png" alt="" border="0" /></a><br />So the member banks (commercial banks like Citi, JP Morgan, etc.) are the shareholders in the local Federal Reserve banks, and they appoint two-thirds of the board of directors which manage the local banks. Each banks' board of directors appoints a president, five of whom in turn sit on the <a href="http://www.philadelphiafed.org/education/teachers/resources/day-in-life-of-fomc/_images/day-in-the-life-of-the-fomc_img01.jpg">Federal Open Market Committee</a>. Stop me when I hit public ownership land, by the way. The Federal Open Market Committee is comprised of five presidents from regional banks, and seven members of the Board of Governors. The Board of Governors is appointed by the President and confirmed by the Senate. The Board of Governors appoints the other third of the board of directors at local Federal Reserve banks, and is advised by a Federal Advisory Council comprised of a representative from each of the twelve regional banks.<br /><br />Aside from all the confusion, I don't see any public ownership in there at all. There is some public representation - the Board of Governors and their appointment of 1/3 of each banks' board of directors. That is not much. Anyway, who owns the Fed?<br /><br /><a href="http://www.slate.com/id/2217811/">Here</a> is an excerpt from an article written by former N.Y. Attorney General Eliot Spitzer on the cozy relationship between the N.Y. Fed and Wall St: (italics mine)<br /><p></p><blockquote><p>"Given the power of the N.Y. Fed, it is time to ask some very hard questions about its recent performance. The first question to ask is: Who is the New York Fed? Who exactly has been running the show? Yes, we all know that Tim Geithner was the president and CEO of the N.Y. Fed from 2003 until his ascension as treasury secretary.<span style="font-style: italic; font-weight: bold;"> But who chose him for that position, and to whom did he report?</span> The N.Y. Fed president reports to, and is chosen by, the Fed board of directors. </p><p>So who selected Geithner back in 2003? Well, the Fed board created a select committee to pick the CEO. This committee included none other than Hank Greenberg, then the chairman of AIG; John Whitehead, a former chairman of Goldman Sachs; Walter Shipley, a former chairman of Chase Manhattan Bank, now JPMorgan Chase; and Pete Peterson, a former chairman of Lehman Bros. It was not a group of typical depositors worried about the security of their savings accounts but rather one whose interest was in preserving a capital structure and way of doing business that cried out for—but did not receive—harsh examination from the N.Y. Fed."</p></blockquote><p></p>Spitzer appears to be suggesting that Geithner works more for Wall St. than he does for the Fed. This quasi-conspiracy theory about Geithner is also advanced by former Assistant Treasury Secretary Paul Craig Roberts (@ 2:50) :<br /><br /><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/XcQJSFJKvy0&hl=en&fs=1&"><param name="allowFullScreen" value="true"><param name="allowscriptaccess" value="always"><embed src="http://www.youtube.com/v/XcQJSFJKvy0&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object> The Federal Reserve system has all the pomp and <a href="http://www.bloomberg.com/apps/data?pid=avimage&iid=iA4Jd6PdW1mo">veneer</a> of a government institution:<br /><ul><li>The name implies a Federal agency</li><li>The public face, Chairman of the Board of Governors, is appointed by the President</li><li>It was created in name of the "public interest", to protect the value of the dollar and provide economic stability<br /></li><li>Has regulatory power over other private corporations</li><li>Non-profit organization</li><li>Has a special .gov web address<br /></li></ul>Despite these embellishments, the District Court of California found it to be a private corporation, and we don't know who the major shareholders currently are. So who owns the Fed? We don't really know. It sure isn't the American people. It appears to me that the Federal Reserve banks are by and large owned by member banks, possibly other foreign central banks, and are "directed" mostly by people who have ties to the banking industry. Can you see why conspiracy theories begin to emerge? Until we can have a proper audit of the Fed, we won't know who owns it.<br /><br /><a href="http://www.ronpaul.com/on-the-issues/audit-the-federal-reserve-hr-1207/">Support Ron Paul's bill to audit the Fed</a>. Why? 'Cause he pwns the Fed!<br /><br /><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/yJBJkDd28pk&hl=en&fs=1&"><param name="allowFullScreen" value="true"><param name="allowscriptaccess" value="always"><embed src="http://www.youtube.com/v/yJBJkDd28pk&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object><br /><br /><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/RYiHE35kCQI&hl=en&fs=1&"><param name="allowFullScreen" value="true"><param name="allowscriptaccess" value="always"><embed src="http://www.youtube.com/v/RYiHE35kCQI&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com1tag:blogger.com,1999:blog-8331613828144340388.post-34148372053640583742009-07-08T19:36:00.000-07:002009-07-08T19:46:51.335-07:00What is wrong with this picture?Ahh, Air Force One. Our Federal Government flying majestically over the Statue of Liberty.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://latimesblogs.latimes.com/.a/6a00d8341c630a53ef01157078c8fe970b-pi"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 375px; height: 229px;" src="http://latimesblogs.latimes.com/.a/6a00d8341c630a53ef01157078c8fe970b-pi" alt="" border="0" /></a><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />Defender of liberty or progressive molder of the New Man?Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com2tag:blogger.com,1999:blog-8331613828144340388.post-20436197364132699552009-07-06T08:54:00.001-07:002009-07-06T11:21:20.871-07:00Does Capitalism Work?<a href="http://strangemaps.wordpress.com/2007/06/10/131-us-states-renamed-for-countries-with-similar-gdps/">Here is a map</a> depicting how each states' GDP compares to other countries around the world:<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://strangemaps.files.wordpress.com/2007/06/350816052_0a392a0d28_o1.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 402px; height: 263px;" src="http://strangemaps.files.wordpress.com/2007/06/350816052_0a392a0d28_o1.jpg" alt="" border="0" /></a><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />What system can generate such a circumstance? How can comparatively small states like New Jersey can produce more than the geographical area of Russia? Is it merely that New Jersey has more natural resources than all of Russia? Or that the people of New Jersey are <span style="font-style: italic;">smarter</span> than the people of Russia? Or is it related to each states' respective proximity to the natural state of liberty?<br /><br />From the<a href="http://www.heritage.org/index/country/russia"> index of economic and political freedom</a>:<br /><blockquote>"State involvement in economic activity remains considerable, and institutional constraints on economic freedom are severe. Non-tariff barriers add significantly to the cost of trade. Inflation is high, and prices are heavily controlled and influenced by the government. Virtually all foreign investment faces official and unofficial hurdles, including bureaucratic inconsistency, corruption, and outright restrictions in lucrative sectors like energy. Corruption weakens the rule of law and increases the fragility of property rights and the arbitrariness of law enforcement."<br /><br /></blockquote>The answer is quite simple - the government acts as an obstacle to natural market activity. Price controls and excessive bureaucracy prevent individuals from disposing of their property how they see fit. A weakened rule of law and barriers to trade stifle risk taking and entrepreneurship. All of these things lower productivity. The truth becomes clear - it does not matter how many natural resources a country has, nor how intelligent the population is. If government will not allow people to trade freely with each other, guarantee the security of property and establish the rule of law, productivity and quality of life will suffer.<br /><br />Thomas Jefferson, George Washington, and the rest of the founders took a different approach. They recognized both the economic and personal woes that emerge from a bloated State. The United States was founded on the principles of individual liberty and the rule of law, precisely what is lacking in Russia. Capitalism works, and one need to look no further than to compare New Jersey to Russia.<br /><br />* It should be noted that New Jersey outproduces Russia despite <a href="http://special.pacificresearch.org/pub/sab/entrep/2008/Economic_Freedom/map.html">being one of the most heavily taxed and regulated</a> State's in the Union.Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com13tag:blogger.com,1999:blog-8331613828144340388.post-59194126416739209792009-07-01T06:33:00.000-07:002009-07-01T07:05:38.972-07:00Propaganda Art Show (July 2009)I am going to try to offer these occasionally. I think they are interesting. I hope you do too! This is all US government propaganda. Next time I will find some other state's.<br /><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.propagandaposters.us/WWI/poster13.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 271px; height: 408px;" src="http://www.propagandaposters.us/WWI/poster13.jpg" alt="" border="0" /></a><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://digital.lib.umn.edu/IMAGES/reference/mswp/mpw00209.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 287px; height: 365px;" src="http://digital.lib.umn.edu/IMAGES/reference/mswp/mpw00209.jpg" alt="" border="0" /></a><br /><br /><br /><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://digital.lib.umn.edu/IMAGES/reference/mswp/mpw00205.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 245px; height: 352px;" src="http://digital.lib.umn.edu/IMAGES/reference/mswp/mpw00205.jpg" alt="" border="0" /></a><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://digital.lib.umn.edu/IMAGES/reference/mswp/mpw00202.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 242px; height: 314px;" src="http://digital.lib.umn.edu/IMAGES/reference/mswp/mpw00202.jpg" alt="" border="0" /></a><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.propagandaposters.us/WWI/poster14.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 273px; height: 420px;" src="http://www.propagandaposters.us/WWI/poster14.jpg" alt="" border="0" /></a><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.propagandaposters.us/WWI/poster24.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 284px; height: 430px;" src="http://www.propagandaposters.us/WWI/poster24.jpg" alt="" border="0" /></a><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.propagandaposters.us/WWI/poster19.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 248px; height: 369px;" src="http://www.propagandaposters.us/WWI/poster19.jpg" alt="" border="0" /></a><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://digital.lib.umn.edu/IMAGES/reference/mswp/mpw00206.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 312px; height: 410px;" src="http://digital.lib.umn.edu/IMAGES/reference/mswp/mpw00206.jpg" alt="" border="0" /></a><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://digital.lib.umn.edu/IMAGES/reference/mswp/mpw00207.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 277px; height: 355px;" src="http://digital.lib.umn.edu/IMAGES/reference/mswp/mpw00207.jpg" alt="" border="0" /></a><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.propagandaposters.us/canown.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 231px; height: 322px;" src="http://www.propagandaposters.us/canown.jpg" alt="" border="0" /></a>Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com0tag:blogger.com,1999:blog-8331613828144340388.post-80475967403613151312009-07-01T04:07:00.000-07:002009-07-01T04:25:06.506-07:00Some videos for thoughtGet your popcorn ready... :)<br /><br />This man has some interesting insights into market behavior, inflation and deflation, and China's currency policy. No really, it <span style="font-style: italic;">is</span> interesting!<br /><object id="cnbcplayer" classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=9,0,0,0" width="400" height="380"><object id="cnbcplayer" classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=9,0,0,0" width="400" height="380"><br /><param name="type" value="application/x-shockwave-flash"><br /><param name="allowfullscreen" value="true"><br /><param name="allowscriptaccess" value="always"><br /><param name="quality" value="best"><br /><param name="scale" value="noscale"><br /><param name="wmode" value="transparent"><br /><param name="bgcolor" value="#000000"><br /><param name="salign" value="lt"><br /><param name="movie" value="http://plus.cnbc.com/rssvideosearch/action/player/id/1167997692/code/cnbcplayershare"><br /><embed name="cnbcplayer" pluginspage="http://www.macromedia.com/go/getflashplayer" allowfullscreen="true" allowscriptaccess="always" bgcolor="#000000" quality="best" wmode="transparent" scale="noscale" salign="lt" src="http://plus.cnbc.com/rssvideosearch/action/player/id/1167997692/code/cnbcplayershare" type="application/x-shockwave-flash" width="400" height="380"></embed><br /></object></object><br /><br />State Capitalism (or fascism) in the USA<br /><br /><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/aXyhKXUP7PM&hl=en&fs=1&rel=0&color1=0x2b405b&color2=0x6b8ab6"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/aXyhKXUP7PM&hl=en&fs=1&rel=0&color1=0x2b405b&color2=0x6b8ab6" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object><br /><br />Murray Rothbard speaking in 1989 on "The Current State of World Affairs"<br /><br /><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/jwz0BYqOhMI&hl=en&fs=1&color1=0x2b405b&color2=0x6b8ab6"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/jwz0BYqOhMI&hl=en&fs=1&color1=0x2b405b&color2=0x6b8ab6" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object><br /><br />Enjoy!Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com0tag:blogger.com,1999:blog-8331613828144340388.post-25355786576849130752009-06-26T05:41:00.000-07:002009-06-26T06:11:33.787-07:00I, Pencil<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.georgehart.com/sculpture/72pencils.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 245px; height: 232px;" src="http://www.georgehart.com/sculpture/72pencils.jpg" alt="" border="0" /></a><br /><a href="http://www.cafehayek.com/hayek/2009/06/i-toaster.html">Cafe Hayek</a> directed me to <a href="http://www.econlib.org/library/Essays/rdPncl1.html">this essay</a>, which I enjoyed thoroughly. It is the story of how a pencil is made, which seems boring at first, but the perspective taken illuminates the wonder of free markets beautifully.<br /><br />Here are some excerpts:<br /><br /><blockquote>You may wonder why I should write a genealogy. Well, to begin with, my story is interesting. And, next, I am a mystery—more so than a tree or a sunset or even a flash of lightning. But, sadly, I am taken for granted by those who use me, as if I were a mere incident and without background. This supercilious attitude relegates me to the level of the commonplace. This is a species of the grievous error in which mankind cannot too long persist without peril. For, the wise G. K. Chesterton observed, "We are perishing for want of wonder, not for want of wonders." </blockquote><blockquote>Actually, millions of human beings have had a hand in my creation, no one of whom even knows more than a very few of the others. Now, you may say that I go too far in relating the picker of a coffee berry in far off Brazil and food growers elsewhere to my creation; that this is an extreme position. I shall stand by my claim. There isn't a single person in all these millions, including the president of the pencil company, who contributes more than a tiny, infinitesimal bit of know-how. From the standpoint of know-how the only difference between the miner of graphite in Ceylon and the logger in Oregon is in the <i>type</i> of know-how. Neither the miner nor the logger can be dispensed with, any more than can the chemist at the factory or the worker in the oil field—paraffin being a by-product of petroleum.<br /></blockquote><blockquote>I, Pencil, am a complex combination of miracles: a tree, zinc, copper, graphite, and so on. But to these miracles which manifest themselves in Nature an even more extraordinary miracle has been added: the configuration of creative human energies—millions of tiny know-hows configurating naturally and spontaneously in response to human necessity and desire and <i>in the absence of any human master-minding!</i> Since only God can make a tree, I insist that only God could make me. Man can no more direct these millions of know-hows to bring me into being than he can put molecules together to create a tree.</blockquote>Don Boudreaux adds,<br /><blockquote>Whenever I hear or read someone proclaim that "the market doesn't work," I try (if the situation permits) to ask him or her how is it that an ordinary pencil exists. Its production requires the cooperation of literally millions of people from around the world. Not one in one-thousand of these people know each other. Many of them, were they to meet, would positively hate each other. And yet, pencils exist in appropriate abundance, and can be acquired almost free of charge. (<span style="font-weight: bold;">If you're in the United States, go up to strangers on the street, in shopping malls, or at your school or workplace and ask for a pencil. You'll not wait long before someone gives you one without expecting it to be returned. I do this experiment frequently; it works.</span>)</blockquote>To be fair, lets not forget to consider the statist take on this whole process:<br /> <p></p><blockquote><p>But, but you need a government person to supervise the transaction. So first we must pass laws, and then create the departments of pencils. Then when someone's pencil tip breaks, they will call their senator and demand government do something about breaking pencil tips. A new set of regulations will appear, with the promise that this time it will fix the problem. The cost of pencils go up, sales go down, and the pencil lobby descends on Washington to add pens to the regulations. The department of pencils gets bigger, but pencil tips keep breaking and wearing out.</p> <p>I will let someone else finish the story, as it never ends. (from comments @ Cafe Hayek)<br /></p></blockquote><p></p>I think there is a product out there for each person that will make the idea of "I, Pencil" clear to them. For me it is the existence of the grocery store. The myriad of products, some at incredibly cheap prices, oftentimes appear miraculous to me. The cost of a plastic bag at <a href="http://www.wegmans.com/webapp/wcs/stores/servlet/HomepageView?storeId=10052&catalogId=10002&langId=-1">Wegmans</a>, I am told by the cashier, is 25 cents. The cost of a can of corn, on sale, is 39 cents. That a can of corn - with all the division of labor that went into growing and harvesting the corn, the canning process, designing the label, and being shipped throughout the country - costs marginally more than a plastic bag is in my mind a great wonder in the world.Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com1tag:blogger.com,1999:blog-8331613828144340388.post-57074717790247464272009-06-25T05:49:00.000-07:002009-06-25T05:56:30.179-07:00Fresh produce 6.25.09Mish has a fantastic post today using Dr. Seuss to explain economic realities.<br /><br />1. <a href="http://globaleconomicanalysis.blogspot.com/2009/06/dr-seuss-on-economy.html">Thidwick the Big-Hearted Moose</a>, an illustrated tale.<br /><br />2. While <a href="http://www.washingtontimes.com/news/2009/jun/16/plan-gives-fed-sweeping-power-over-companies/?feat=home_headlines">the Fed is getting more power</a>, no one is forcing them to face the consequences of <a href="http://market-ticker.denninger.net/archives/1155-Lets-See-INDICTMENTS.html">a recent cover up.</a><br /><br />3. <a href="http://spezify.com/">Spezify </a>is a very interesting new search engine. Compare it to <a href="http://www.wolframalpha.com/">Wolfram Alpha </a>and <a href="http://www.bing.com/">Bing</a>. Or <a href="www.google.com">the classic</a>.<br /><br />4. <a href="http://www.reuters.com/article/topNews/idUSTRE55O07Q20090625?sp=true">Legislators in Cali want to pay for their debts in IOU's.</a> My question is, who in their right mind would lend them money?Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com0tag:blogger.com,1999:blog-8331613828144340388.post-89674621124532346802009-06-24T06:07:00.000-07:002009-06-24T06:19:16.536-07:00Fresh produce 6.24.09Just came back from a week in the Pacific Northwest. Beautiful as ever.<br /><br />1. <a href="http://market-ticker.denninger.net/archives/1127-Ssssshhh....-Its-D-D-D-D-.....html">Don't utter the dreaded "D" word... </a><br /><br />2. <a href="http://blogs.abcnews.com/johnstossel/">John Stossel's blog.</a><br /><br />3. <a href="http://online.wsj.com/article/SB124562232014535347.html">As Universities go bankrupt, online universities spring up with reduced overhead and offer a "real education". </a><br /><br />4. Just so we are clear, <a href="http://www.detnews.com/article/20090623/AUTO01/906230405/Ford-share-of-federal-loan-to-go-to-retooling-plants">the taxpayer is still bailing ou... er, subsidizing car companies.</a> Green economic fascism at its finest.Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com0tag:blogger.com,1999:blog-8331613828144340388.post-38965595954529505272009-06-15T07:29:00.000-07:002009-06-16T23:29:22.904-07:00States' Rights and the Future of the Republic(s)<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://healeylibrary.wikispaces.com/file/view/13-colonies-map-1775-usa.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 370px; height: 459px;" src="http://healeylibrary.wikispaces.com/file/view/13-colonies-map-1775-usa.jpg" alt="" border="0" /></a><br />Some time ago a former KGB agent <a href="http://livingoffdividends.com/2008/12/31/russian-prediction-us-to-collapse-by-2010/">predicted the breakup of the USA</a>. At the time I scoffed at his prediction, and wrote it off as a bitter rant from someone who wished the USSR was reunited and a global power. Yet after some thought (and reading <a href="http://www.amazon.com/Watchmen-Alan-Moore/dp/1401219268/ref=sr_1_2?ie=UTF8&s=books&qid=1245079205&sr=8-2">Watchmen</a>) I realized that there is no magical quality to the USA. There is absolutely no reason why <a href="http://en.wikipedia.org/wiki/Deployments_of_the_United_States_Military">the empire</a> could not falter and dissolve. Here are some real organizations and signs about the roots of a new secession/States' rights movement not seen in my brief lifetime.<br /><br />1. <a href="http://online.wsj.com/article/SB10001424052970204482304574219813708759806.html#articleTabs%3Darticle">The Wall Street Journal on the dynam</a><a href="http://online.wsj.com/article/SB10001424052970204482304574219813708759806.html#articleTabs%3Darticle">ics of liberty and secession, and the future of the States in America.</a><br /><br />2. <a href="http://christianexodus.org/">The Christian Exodus</a>, a secessionist movement based in S. Carolina. In their words: "The initial goal was to move thousands of Christian constitutionalists to South Carolina to accelerate the return to self-government based upon Christian principles at the local and State level."<br /><br />3. <a href="http://thepatrickhenrycaucus.org/">The Patrick Henry Caucus</a> was formed to organize legislators and find ways to strengthen the 10th Amendment. In their words: "We affirm that the federal government may exercise only those rights and powers that are specifically granted unto it by the Constitution and no others. We reassert the sovereignty and rights of the individual states."<br /><br />4. <a href="http://www.freestateproject.org/">The Free State Project</a> was organized to concentrate the efforts of liberty-loving folk in one state, and use the political system to preserve and reinforce self-government. In their words: "...the fullest practical effort toward the creation of a society in which the maximum role of civil government is the protection of life, liberty, and property."<br /><br />5. <a href="http://www.vermontrepublic.org/">The Second Vermont Republic</a> is, in their words, "... a nonviolent citizens' network and think tank opposed to the tyranny of Corporate America and the U.S. government, and committed to the return of Vermont to its status as an independent republic and more broadly to the dissolution of the Union."<br /><br />There is a common thread in all of these organizations. Many Americans still identify with the concept of self-government. If there is one principle that the USA was founded upon, it is self-government. There is a strong undercurrent of <a href="http://dictionary.reference.com/browse/conservative">conservatism </a>in the USA. Democratic states (Vermont) and Republican states (New Hampshire) both desire to preserve their right to self-governance. The WSJ article makes a compelling case that things would be better if what we know to be the Union were broken up into several nation-states. I tend to agree.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://s.wsj.net/public/resources/images/PT-AL844_SUCCES_G_20090612180237.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 354px; height: 236px;" src="http://s.wsj.net/public/resources/images/PT-AL844_SUCCES_G_20090612180237.jpg" alt="" border="0" /></a>Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com0tag:blogger.com,1999:blog-8331613828144340388.post-38458833206368540972009-06-11T07:34:00.000-07:002009-06-11T09:12:36.232-07:00Fresh Produce 6.11.09Man things are happening so fast and getting so crazy.<br /><br />1. <a href="http://www.news.com.au/heraldsun/story/0,21985,25623185-661,00.html">Australian police will now also be "carbon cops".</a> Excerpt: <blockquote>"The Government is effectively saying to us, 'Ignore other crime types'," Australian Federal Police Association chief Jim Torr said. ... Mr Torr said breaking carbon trading laws would be like breaking other laws. "These offences will constitute another federal crime type, along with narcotics importing, people smuggling and all the rest of it, that the AFP will be expected to police," he said. "I can see very complex, covert investigations . . . a lot of scientific expertise required."</blockquote>2. <a href="http://www.chicagotribune.com/news/columnists/chi-oped0611chapmanjun11,0,7438087.column">Macroeconomists can basically say whatever they want.</a> Excerpt: <blockquote>But macroeconomists can almost always claim to be right, no matter what happens. If they recommend Policy X and the economy weakens, they can say it prevented a complete disaster. If they say Policy X will hurt and things improve, they can say without it, things would have been even better. Being a macroeconomist means never having to say you're sorry.</blockquote>3. <a href="http://finance.yahoo.com/news/Administration-Rein-in-pay-apf-15500519.html?.v=6">Apparently we are embarking on massive new price fixing.</a><br /><br />4. In further proof that things are really crazy, here is a <a href="http://www.jiajem.com/meatwad.html">meat dress</a>.Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com0tag:blogger.com,1999:blog-8331613828144340388.post-77810701207622488652009-06-10T11:08:00.001-07:002009-06-10T11:42:29.890-07:00Jaguar Inflation<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.mynews.in/images/7f201a65-b860-4291-bd7e-e0d635420be0jaguar%20car--370--1.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 374px; height: 304px;" src="http://www.mynews.in/images/7f201a65-b860-4291-bd7e-e0d635420be0jaguar%20car--370--1.jpg" alt="" border="0" /></a><br />Found this over at <a href="http://www.economicsjunkie.com/inflation-deflation-revisited/">Economics Junkie</a>. A very clear illustration of how foolish and hopeless bubble blowing can be.<br /><br />Written by <a href="http://en.wikipedia.org/wiki/Socionomics">Robert Prechter</a>:<br /><br /><blockquote><p><strong>Jaguar Inflation</strong></p> <p>I am tired of hearing people insist that the Fed can expand credit all it wants. Sometimes an analogy clarifies a subject so let’s try one.</p> <p>It may sond crazy, but suppose the government were to decide that the health of the nation depends upon producing Jaguar automobiles and providing them to as many people as possible. To facilitate that goal, it begins operating Jaguar plants all over the country, subsidizing it with tax money. To everyone’s delight , it offers these luxury cars for sale at 50 percent off the old price. People flock to the showrooms and buy. Later, sales slow down, so the government cuts the price in half again. More people rush in and buy. Sales again slow, so it lowers the price to $900 each. People return to the stores and buy two or three, or half a dozen. Why not? Look how cheap they are! Buyers give Jaguars to their kids and park an extra one on the lawn. Finally, the country is awash in Jaguars. Alas, sales slow again, and the government panics. It must move more Jaguars, or, according to its theory - ironically now made fact - the economy will recede. People are working three days a week just to pay their taxes so the government can keep producing more Jaguars. If Jaguars stop moving the economy will stop. So the government begins giving Jaguars away. A few more cars move out of the showrooms, but then it ends. <em>Nobody wants any more Jaguars. They don’t care if they’re free. They can’t find a use for them.</em> Production of Jaguars ceases. It takes years to work through the overhanging supply of Jaguars. Tax collections collapse, the factories close, and unemployment soars. The economy is wrecked. People can’t afford to buy gasoline , so many of the Jaguars rust away to worthlessness. The number of Jaguars - at best - returns to the level it was before the program began.</p> <p>The same thing can happen with credit.<br />It may sound crazy, but suppose the government were to decide that the health of the nation depends upon producing credit and providing it to as many people as possible. To facilitate that goal, it begins operating credit production plants all over the country, called Federal Reserve Banks. To everyone’s delight , the banks offer the credit for sale at below market rates. People flock to the banks and buy. Later, sales slow down, so the banks cut the price again. More people rush in and buy. Sales again slow, so it lowers the price to 1 percent. People return to the banks and buy even more credit. Why not? Look how cheap it is! Borrowers use credit to buy houses, boats and an extra Jaguar to park out on the lawn. Finally, the country is awash in credit. Alas, sales slow again, and the banks panic. They must move more credit, or, according to its theory - ironically now made fact - the economy will recede. People are working three days a week just to pay the interest on their debt so the banks can keep offering more credit. If credit stops moving the economy will stop. So they start giving credit away at zero percent interest. A few more loans move through the tellers’ windows, but then it ends. <em>Nobody wants any more credit. They don’t care if they’re free. They can’t find a use for it.</em> Production of credit ceases. It takes years to work through the overhanging supply of credit. Interest payments collapse, banks close, and unemployment soars. The economy is wrecked. People can’t afford to pay interest on their debts , so many bonds deteriorate away to worthlessness. The value of credit - at best - returns to the level it was before the program began.</p></blockquote>Rafihttp://www.blogger.com/profile/13370636307930198653noreply@blogger.com0