Wayno’s Economic Philosophy

Several people have asked me to explain my economic philosophy.

I am a NONkeynesian economist.  I don’t believe the B.S. that Ben Bernanke, Tim Geithner, or Paul Krugman, espouse.  Simply, you must view money creation in the U.S. as debt. So if people are NOT borrowing, the economy is NOT expanding.  This is why the Federal Reserve (about as Federal as Federal Express!  A privately held institution, run by and for, bankers) has kept the prime rate artificially low.  Trying to entice people into borrowing money, so the economy will grow.  So far in 4 years, this hasn’t worked.  In the meantime, those of us who save money, are being punished with historically low rate of returns and interest rates. This is why most corporations are sitting on trillions in cash. It makes sense to keep it in the bank, rather then invest and get virtually nothing in return. Chris Martenson said it best: “You have an economy which MUST grow, versus natural resources which CAN’T grow.”

Bonds work the opposite of the stock market.  As demand goes up, the interest rate (also discount rate) goes down.  As demand for bonds soften, the interest rate goes up.  10 year treasury bonds are trading at about 1.82 %.  That means, that you have to loan the government, $10,000 dollars, for 10 years, to get $1820 back.  A $10,000 investment tied up for 10 years, for $182/year?  No!  That is reality in today’s economy.

Ever hear of Quantitative Easing?  That amounts to the Fed, running the printing presses, printing more money, then using that money to buy back it’s own debt.  What that does is inflate the money supply, (devalues the currency).  I don’t have any debt.  Something breaks?  It pretty much stays broken, until I save up the cash to buy a new one.  I have an older car, simply because there are no car payments, and I am happy with what I have.  I do not have all I want, but God promised me, all that I would need.

I am what I call an armchair economist.  Simply that means that “people respond to incentives.”  (Steven Landsburg coined the phrase in 1993).  For example: I have a friend, who with a banquet of food spread before him, would starve if he did NOT have a coupon. Makes you think.

That’s my economic philosophy in 4 paragraphs.

I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.

~ President Woodrow Wilson, AFTER signing the Federal Reserve Act

Wayno

“Fiscal Cliff” in plain English

Fiscal Cliff

“Fiscal Cliff” in plain English

Lesson # 1:

* U.S. Tax revenue: $2,170,000,000,000
* Fed budget: $3,820,000,000,000
* New debt: $ 1,650,000,000,000
* National debt: $14,271,000,000,000
* Recent budget cuts: $ 38,500,000,000

Now, let’s remove 8 zeros and pretend it’s a household budget:

* Annual family income: $21,700
* Money the family spent: $38,200
* New debt on the credit card: $16,500
* Outstanding balance on the credit card: $142,710
* Total budget cuts so far: $385.00

Got It ? ….. OK now,

Lesson # 2:

Here’s another way to look at the Debt Ceiling:

Let’s say, you come home from work and find

there has been a sewer backup in your neighborhood

and your home has sewage all the way up to the ceilings.

What do you think you should do …..

Raise the ceilings, or remove the sh*t?

-B

How long?

© Nick Anderson / Houston Chronicle

© Nick Anderson / Houston Chronicle

Gun control is a lightning rod for divisive politics and rhetoric.

On the eve of the 2nd anniversary of the Tucson shootings on January 8, 2011, one thing is abundantly clear: nothing has changed. This time around: mass slayings in Colorado and Connecticut.

People are still free to exercise their civil liberties and own, hunt, and sport shoot. What is also clear is that guns are still ending up in the hands of wrong people.

The lessons proffered from the Tucson shootings, have steadfastly been rejected. A few months ago in July 2012, a lone gunman killed 12 people, and injured 58, at a theater in Aurora, Colorado.

Just a few weeks before Christmas, 26 people were killed at an elementary school, in Newtown, Connecticut.

The slaughter of the innocent continues.

Those that advocate gun ownership as a civil liberty, balked when their names were published in a local newspaper. Why? It is okay to own a gun, but NOT okay to exercise first amendment rights of Freedom of the Press to print public information. Why?

The assault weapons ban sunset in 2004 allowed the sale, use, and importation of high capacity gun magazine clips. Why? I am of the opinion that if a hunter needs more then 3 shots to kill an animal, I am not sure if a high capacity magazine will help. Or is that these high capacity magazines exist for another reason other then hunting. I wonder?

What is needed is a clear definition of what constitutes an assault weapon. Requiring assault style weapons like the AR-15, to be ONLY at a range, would be a start.

Gun buy backs are another contentious issues. On the 2nd anniversary, Tucson will offer a gun buy back programme. Anyone can turn in a gun, and receive a gift card. Gun control advocates hail this as an attempt to deal with some of the issues. National Rifle Association Members incessantly decry this attempt as somehow removing their civil liberty to gun ownership. Why?

Recently I walked into a local grocery store. In the space of 20 minutes, 3 people carrying guns walked into the same store. I left my shopping cart where it was, and quickly walked out of the store. Why is it necessary to carry a handgun into a grocery store?

Better access to mental health is also a tantamount issue. Why is it easier to purchase a gun, then to access mental health care? Lack of access to mental health was a factor in the Tucson and Colorado shootings. It is unknown at this time, if this is an issue in the Connecticut shootings.

They called out in a loud voice, “How long, Sovereign Lord, holy and true, until you judge the inhabitants of the earth and avenge our blood?” (Rev 6:20/NIV)