Thursday, December 31, 2009
o Government Agencies
For most people, the four most common 'windows' into how government agencies operate are going to the post office (US Postal Service), filing income tax returns (IRS), voting (Board of Elections), and getting a drivers license (Dept of Motor Vehicles). I can't think of a worse torture than wasting time filling out confusing forms and standing in long lines. Pain and suffering epitomize all of these agencies. Now the government has expanded its scope and scale by taking over companies and blowing out the budget. The US government wants to be a health care provider when it should focus first on reducing health insurance costs. Allow for competition among health insurance companies, similar to what happens for auto insurance. And then start providing coverage one piece at a time. The government should concern itself with streamlining the agencies under its control rather than expanding its responsibilities.
o FDIC Bankruptcy
The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress to maintain stability and public confidence in the nation's financial system by insuring deposits. Each depositor insured to at least $250,000 per insured bank through 12/31/2013. In 2009, a total of 130 bank failed. Does the FDIC's insurance fund have enough left to cover all the losses?
Sunday, December 20, 2009
o Drug Policy
Mexico is under siege by drug cartels, the drug war is at our doorstep. It can no longer go unsolved.
Many drugs such as caffeine, alcohol, barbiturates and nicotine are already legal. The reason drugs are outlawed is arbitrary. Its not a matter of a substance being legal or illegal that makes it bad or good for someone. In what circumstances and in what quantities is a drug used?
The drug policy should focus on putting drug dealers out of business while at the same time reducing the demand for drug use. Policy has to be crafted to fight drugs on both on the supply side and demand side. The solution is to legalize drugs and then give the proceeds to a socially deplorable organizations like a white supremacy group and a terrorist organization. And to Ogilvy and Mather so they can run an anti-drug ad campaign. The legal drug money cannot go anywhere beneficial to society because that would make drug use socially acceptable, which is not the objective. Drugs would become cheap, readily available and have a shameful stigma attached to their use. If you buy drugs, you are a racist and terrorist. Social pressure should eliminate all but the hardest hard core abusers. Hence the problem is reduced to a minimum.
Maybe that is too radical of a solution. But addiction to me will continue whether drugs are legal or illegal. The money from legalized drugs can go toward health education, prevention and treatment.
Anyone that is pro-abortion and under a libertarian banner of freedom of choice should be pro-legalizing drugs.
Many drugs such as caffeine, alcohol, barbiturates and nicotine are already legal. The reason drugs are outlawed is arbitrary. Its not a matter of a substance being legal or illegal that makes it bad or good for someone. In what circumstances and in what quantities is a drug used?
The drug policy should focus on putting drug dealers out of business while at the same time reducing the demand for drug use. Policy has to be crafted to fight drugs on both on the supply side and demand side. The solution is to legalize drugs and then give the proceeds to a socially deplorable organizations like a white supremacy group and a terrorist organization. And to Ogilvy and Mather so they can run an anti-drug ad campaign. The legal drug money cannot go anywhere beneficial to society because that would make drug use socially acceptable, which is not the objective. Drugs would become cheap, readily available and have a shameful stigma attached to their use. If you buy drugs, you are a racist and terrorist. Social pressure should eliminate all but the hardest hard core abusers. Hence the problem is reduced to a minimum.
Maybe that is too radical of a solution. But addiction to me will continue whether drugs are legal or illegal. The money from legalized drugs can go toward health education, prevention and treatment.
Anyone that is pro-abortion and under a libertarian banner of freedom of choice should be pro-legalizing drugs.
o Gulfo Currency
Saudi Arabia, Kuwait, Bahrain, and Qatar are set to launch a single currency called the Gulfo. The creation of the Gulfo is a statement by countries in the region that they have lost faith in fiat US dollars as the world's reserve currency.
o Senate Banking Committee votes 16-7 for Bernanke
It appears that Ben Bernanke will be reconfirmed as Federal Reserve Chairman. Its a mistake to reappoint the very person that lead the US into the financial downfall of 2008.
This from the website of the Federal Reserve Board (http://www.federalreserve.gov) :
"The primary responsibility of the Board members is the formulation of monetary policy.
In addition to monetary policy responsibilities, the Federal Reserve Board has regulatory and supervisory responsibilities over banks that are members of the System, bank holding companies, international banking facilities in the United States, Edge Act and agreement corporations, foreign activities of member banks, and the U.S. activities of foreign-owned banks. The Board also sets margin requirements, which limit the use of credit for purchasing or carrying securities."
Paraphrasing the words of then Treasury Secretary Henry Paulson, who created and forced the FED to implement TARP (September 19, 2008):
"The Fed allowed banks to carry illiquid 'troubled' assets on their books, that clogged up the financial system, and undermined the strength of the financial institutions. As a result, Americans' personal savings were threatened, and the ability of consumers and businesses to borrow and finance spending, investment, and job creation was disrupted."
The Fed helped to create the financial turmoil that the US and the world is suffering from. The passage of TARP has bought some time but the economy remains weak. Congress needs to elect a leader that solves problems, not creates and perpetuates them.
This from the website of the Federal Reserve Board (http://www.federalreserve.gov) :
"The primary responsibility of the Board members is the formulation of monetary policy.
In addition to monetary policy responsibilities, the Federal Reserve Board has regulatory and supervisory responsibilities over banks that are members of the System, bank holding companies, international banking facilities in the United States, Edge Act and agreement corporations, foreign activities of member banks, and the U.S. activities of foreign-owned banks. The Board also sets margin requirements, which limit the use of credit for purchasing or carrying securities."
Paraphrasing the words of then Treasury Secretary Henry Paulson, who created and forced the FED to implement TARP (September 19, 2008):
"The Fed allowed banks to carry illiquid 'troubled' assets on their books, that clogged up the financial system, and undermined the strength of the financial institutions. As a result, Americans' personal savings were threatened, and the ability of consumers and businesses to borrow and finance spending, investment, and job creation was disrupted."
The Fed helped to create the financial turmoil that the US and the world is suffering from. The passage of TARP has bought some time but the economy remains weak. Congress needs to elect a leader that solves problems, not creates and perpetuates them.
Sunday, December 6, 2009
o Economic Meltdown Videos
The following videos reveal insight on what lead to the bank bailouts and how the bailouts were handled.
PBS Frontline special called "The Warning".
http://www.pbs.org/wgbh/pages/frontline/warning/view/
Senator Jim Bunning speaking at the Banking, Housing, and Urban Affairs Committee Hearing on December 03, 2009.
http://www.youtube.com/watch?v=rka9VbPPMys
PBS Frontline special called "The Warning".
http://www.pbs.org/wgbh/pages/frontline/warning/view/
Senator Jim Bunning speaking at the Banking, Housing, and Urban Affairs Committee Hearing on December 03, 2009.
http://www.youtube.com/watch?v=rka9VbPPMys
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