Week in review

Quote of the week

“The gold standard is the only method we have yet found to place a discipline on government, and government will behave reasonably only if it is forced to do so.” – Friedrich A. Hayek

A Free-Market Monetary System

by Friedrich A. Hayek

“The public at large have learned to understand, and I am afraid a whole generation of economists have been teaching, that government has the power in the short run by increasing the quantity of money rapidly to relieve all kinds of economic evils, especially to reduce unemployment. Unfortunately this is true so far as the short run is concerned. The fact is, that such expansions of the quantity of money which seems to have a short run beneficial effect, become in the long run the cause of a much greater unemployment. But what politician can possibly care about long run effects if in the short run he buys support?” more…

Voices of Reason Still in the Wilderness

by Ed Bugos

“Joe Public can’t for the life of him figure out why it matters if interest rates are 1.5% or 1%.

“He cannot connect the escalating price at the pump to the process of money creation required to bring about such a modest change in the interest rate. The tech bust was the fault of irrational speculators, and greedy investment bankers. The housing bust is blamed on Wall Street’s larceny, his mortgage and real estate brokers, or the thrust toward deregulation. The painful increase in commodity prices is caused by too much growth. The growing trade deficit is caused by new competition from foreign countries. And so on.

“For, Joe takes his cue not from Mises, but from the media and political classes under heavy influence by the progressive institutions.

“Political leaders in Europe, meanwhile, are taking full advantage of Joe to wage a new war on capitalism from the left on grounds that American style capitalism is in dire need of more regulation.

“This is the great evil of the inflation policy.

“It is insidious. The great economists have all recognized this truth. It only produces the opposite of what it claims to accomplish. It also funds the growth of government and anti-capitalist sentiment, and other confused ideas that may lead, ultimately, to the general disintegration in the division of labor, the fabric of society. It promotes moral degradation and corruption, conflict, and finances wars. It is 80% of what’s wrong with the world.” more…

Evil Concealed by Money

by Walter Williams

“[S]ocialism is evil. It employs evil means, coercion or taking the property of one person, to accomplish good ends, helping one’s fellow man. Helping one’s fellow man in need, by reaching into one’s own pockets, is a laudable and praiseworthy goal. Doing the same through coercion and reaching into another’s pockets has no redeeming features and is worthy of condemnation.” more…

America the Illiterate

by Chris Hedges

“We live in two Americas. One America, now the minority, functions in a print-based, literate world. It can cope with complexity and has the intellectual tools to separate illusion from truth. The other America, which constitutes the majority, exists in a non-reality-based belief system. This America, dependent on skillfully manipulated images for information, has severed itself from the literate, print-based culture. It cannot differentiate between lies and truth. It is informed by simplistic, childish narratives and clichés. It is thrown into confusion by ambiguity, nuance and self-reflection. This divide, more than race, class or gender, more than rural or urban, believer or nonbeliever, red state or blue state, has split the country into radically distinct, unbridgeable and antagonistic entities.” more…

My Two Cents

Repeal the 17th Amendment

The 17th Amendment was ratified in 1913 and stipulated that members of the United States Senate would no longer be appointed by the legislatures of the various states, but instead would be elected directly by the people.

Now you might be thinking to yourself, “that’s a good thing. We should elect our Senators. They should be beholden to the people. To have them appointed by the legislatures of the various states, would be, well, undemocratic.” Indeed it would be, and gloriously so. more…

In the news…

  • China is building an aircraft carrier.
  • GE (General Electric) is considering buying more media assets. Remember this: most of what is seen and heard on TV, radio, and print is controlled by a few companies that at best have a conflict of interest when it comes to telling the truth and at worst will commit one-hundred lies by omission before noon everyday.
  • The U.S. Navy reports that Somali pirates have taken over a Saudi oil tanker. This makes me wonder how much more piracy there would be without the U.S. Navy floating around all over the world. I suspect commerce would be horribly disrupted and piracy rampant. Meanwhile, India takes it to them.
  • Would you fall for this? I’m thinking, no probably not…
  • IMF approves $2.1bn Iceland loan
  • Obama will support Georgia (the country not the state…).
  • Obama will make Hillary Clinton his Secretary of State, and Billy Rich from New Mexico the Secretary of Commerce. Good riddance to Billy eh?

And now the numbers

DOW Jones Industrials – 8,046.42 (-450.89/-5.31%)
Wilshire 5000 – 7,926.06 (-795.82/-9.12%)
CSI 300 (China) – 1,920.74 (-22.91/-1.18%)
BSE 500 (India) – 3,262.30 (-232.06/-6.64%)
MICEX (Russia) – 516.93 (-75.14/-12.69%)
BOVESPA (Brazil) – 31,250.60 (-4,538.50/-12.68%)
Gold/oz – 791.80 (+50.80/6.86%)
Silver/oz – 9.505 (+0.015/0.16%)
Copper/lb – 1.579 (-0.124/-7.28%)
Oil/bbl (Brent) – 49.19 (-4.66/-8.65%)
Wheat/bu (CBT) – 5.18 (-0.565/-9.83%)
Corn/bu – 3.385 (-0.4175/-10.98%)
Dollar/Euro – 1.2587 (-0.0016/-0.13%)
Yuan/Dollar – 6.8262 (+0.0062/0.09%)
Yen/Dollar – 95.935 (-1.055/-1.09%)
Dollar/Real – 0.4046 (-0.0461/-10.23%)
3 Month Treasury – 0.01 (-0.12/-92.31%)
2 Year Treasury – 0.82 (-0.39/-32.23%)
10 Year Treasury – 3.20 (-0.53/-14.21%)
30 Year Treasury – 3.69 (-0.54/-12.77%)
Fed Target Rate – 1.00 (UNCHG)
U.S. Public Debt – 10,655,457,229,922.30 (+76,818,078,231.20/0.73%) – this can’t go on forever…

Wow, it took a bit of time to write that 17th Amendment essay. More than I had expected. Anyway, that’s off the table now. Meanwhile, school is becoming manageable again. It was kicking my butt for a while there. Got a take home test this weekend, a short presentation to prepare, and then I have one paper to finish up before the semester is over December 12th. And then it’s off to Phoenix for White Eyebrow and Lung Ying training! Yay! And then we’ll top off the month with a trip to Albuquerque on January 1st. I’m really looking forward to it.

In case you all have never heard of Peter Schiff, (if you’ve been reading this you’ve probably read some of his words by now). Anyway you should go find some video of him on YouTube or something. Especially interesting are the videos from 2007 or so, when he was saying the bottom was about to fall out of everything and the other pundits were ridiculing him quite openly. Who’s laughing now? No one is. Things aren’t looking too good, but my point is that Peter Schiff still has a lot of good things to say, and is worth listening to.

So that’s it for tonight. It’s getting a bit late here, a little past 22:00. I think I’m going to have me a glass of wine or two, watch some TV and go to bed. Tomorrow and my load of work is calling! Have a great weekend and a very happy Thanksgiving! Can you believe it’s November?

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