“Today, people are beginning to understand that the government’s account is overdrawn, that a piece of paper is not the equivalent of a gold coin, or an automobile, or a loaf of bread—and that if you attempt to falsify monetary values, you do not achieve abundance, you merely debase the currency and go bankrupt.”

Ayn Rand, “Moral Inflation,” The Ayn Rand Letter, vol. 3, no. 12, p. 1

Do you truly understand what socialism is? Some toss this tag around with little regard and even less understanding of its inherent evil. This short passage by Dr. Ridpath is a gem. I have read and listened to numerous lectures of Dr. Ridpath, all are stunning in clarity and vision. This one is no different..

I think that the funniest part is when Krugman explains that another economic stimulus should go to the government to spend, not to the people!

MOST economists would agree with the proposition that there is no such thing as a free lunch. All activities incur costs in terms of resources that have to be paid for directly or in terms of other opportunities forgone. This proposition is a fundamental insight of modern economics.

But although most economists would acknowledge the theoretical validity of this proposition, not all believe it to be true in practice.

Traditional Keynesian macro-economics is the theoretical refuge of economists who continue to believe economic magic can occur by the government waving its fiscal wand.

This year’s Nobel laureate in economics, Paul Krugman, is in this category. Many were surprised when he won this year’s prize. Krugman has become the pin-up boy of the US liberal Left for his attacks on the Bush administration and his advocacy of greater government involvement in the economy. To be fair to Krugman, his early work on strategic trade theory in particular is as worthy of recognition as the work of some other recent prizewinners. Whether there should be a Nobel prize for an imprecise social science such as economics is another question.

See Don’t look to Keynes

In a twist to the term government hand-out, state and local government facing gapping budget shortfalls are rushing in line for government welfare. The growing economic depression has severely crimped the flow of tax receipts to local governments saddled with burgeoning payrolls and pension benefits.

Faced with the reality that raising taxes in the midst of a financial calamity would spark the fuel for an outright revolt, states and cities are forced to cut back on programs and layoff workers. The widening deficits have become so large that cosmetic cuts will not come close to filling shortfall. Unwilling at this point to take a meat axe to programs and employee benefits, including an unsustainable pension system, city officials are rushing in droves to the federal money window.

This week alone saw cities like Detroit, Philadelphia, Atlanta, and Phoenix coming running with palm up hands. Detroit alone is begging for $10 billion. One estimate put the total funds wanted by local governments well in excess of $50 billion. Read the rest of this entry »

I wonder which of the following were reasons why the Library referendum failed. These are the reasons that OUR VIEW said where the 10 Reasons to Vote No For the Library back in March. Man it looked like a shoe in, didn’t it? Could it be that the only voters in the spring for the NON-BINDING election were those elitists mentioned last March or those only interested in a school board election that had no meaning, or were they one in the same.

From March 31st, 2008:

10 Reasons to Vote No For the Library
1. Unelected group using citizens tax dollars to advertise to raise your taxes. Now that in itself should render a NO, no matter what the referendum.
2. Illegal wording in the Hudson referendum. The actual amount a home owner would be forced to fork over is over 4 times the amount stated.
3. The current library is adequate. It is not overly crowded and has plenty of free parking. The space could be utilized better.
4. Over 40% of the monthly adult circulation consists of DVD’s. Yes, move over Blockbuster and Mr. Movies! It would actually be cheaper for the library to provide a Blockbuster membership with the library card, but Doh!, it would take away 40% of the people who walk into the place to begin with.
5. If the Friends don’t come up with the stated donations that they say, guess who will pick up the tab. Does the tunnel to nowhere sound familiar?
6. The nature of libraries is changing. More and more simply don’t use libraries. There is a whole new world out on the internet. Look to the right, there are dozens of free online libraries.
7. Foreclosures and an uncertain economy are making the public weary of higher taxes. Aren’t we taxed enough?
8. Unrealistic budget proposal. How can a library 5 times the size run on an operating budget not much larger than the current one? It can’t. Your taxes would increase to make up their lowball estimate.
9. High brow bourgeoisie elitists who think they know better just rub me the wrong way.
10. There is no need to fix something that is not broken. Eliminating the non educational DVD’s would reduce circulation and any perceived need for more space.
—————————–
To this day, drive down to the library in Hudson and you will easily find a place to park, find videos that you don’t have to have a monthly membership for, and find books on the shelf. By the way, you even get free WiFi there.

I have found out that the link that provided me the image below, is now unavailable. I know it may be a bit old, but I really wonder what the current statistics are.

See http://www.npr.org/news/specials/gmvstoyota/gm_toyota_comparison.html

Why? Does it show that a company that paid some forklift operators 6 figure salary’s can’t compete?

Now we are being asked to bail them out.

Washington DC has started “random” searching of local rail passenger’s bags. But guess what, there is no information on which of the 86 rail stations or 12,000 bus stops would be subject to searches. Imagine walking to the train when you are confronted by police before entering train stations or boarding a bus. There’s about 1.2 million passengers that use the rail and bus system each week day.

Brownshirts before the messiah gets into office.

Metro to Randomly Search Riders’ Bags

“Frankly, I don’t give a damn about the Republican Party. …”

http://www.boblonsberry.com/writings.cfm?go=4

The investment of government money into financial institutions has done little to allay investor fears. It had been hoped that with government backing private capital would again start flowing toward the banking sector. Financial stocks as measured by the XLF has retreated by nearly 25% since the beginning of the month. Perhaps, the strings that came with government partnership are not that appealing to an investor who has a variety of options as to where money can be parked.

For their investment, the government is demanding that financial institutions lend. But as I have stated before, to whom? The goal of any business is profit. The goal of government intervention is to boost economic activity through the extension of credit. The two goals are not the same. Flushed with enough capital an enterprise can be a beehive of activity and unprofitable. At some point in time such a business will cease to exist. Investors tend to shy away from businesses that lose money.

The other covenant of the government partnership dealt with the paying of common stock dividend. Yesterday, it was announced that the Treasury would take a jaundice view of dividend policies by financial institutions that accepted government money. I would presume it safe to say that their concern is not over the pay out of too little. To the investor yield is an integral part of any capital calculation, especially in the current environment. Dividends that are either non-competitive with alternate investment options or considered in danger of being eliminated, rarely are an attraction for new money.

Few riders would travel on an investment bus where the driver is not interested in profits or returning a competitive yield. Driver, let me off at the corner.

In a free economy, where no man or group of men can use physical coercion against anyone, economic power can be achieved only by voluntary means: by the voluntary choice and agreement of all those who participate in the process of production and trade. In a free market, all prices, wages, and profits are determined—not by the arbitrary whim of the rich or of the poor, not by anyone’s “greed” or by anyone’s need—but by the law of supply and demand. The mechanism of a free market reflects and sums up all the economic choices and decisions made by all the participants. Men trade their goods or services by mutual consent to mutual advantage, according to their own independent, uncoerced judgment. A man can grow rich only if he is able to offer better values—better products or services, at a lower price—than others are able to offer.

Wealth, in a free market, is achieved by a free, general, “democratic” vote—by the sales and the purchases of every individual who takes part in the economic life of the country. Whenever you buy one product rather than another, you are voting for the success of some manufacturer. And, in this type of voting, every man votes only on those matters which he is qualified to judge: on his own preferences, interests, and needs. No one has the power to decide for others or to substitute his judgment for theirs; no one has the power to appoint himself “the voice of the public” and to leave the public voiceless and disfranchised.

Ayn Rand

……….. Change

Read the rest of this entry »

According to estimates provided by Politico.com, the final tab rung up by candidates, political parties, and advocacy groups for the 2008 election amounted to over $5 billion. What was the product of this massive expenditure? Campaign literature piled on trash heaps; metal buttons with stick pins so large that an individual would be detained at an airport for carrying a lethal weapon; bumper stickers plastered on the rear of cars that now render the automobile looking like a piece of junk, yard signs either thrown in the trash or used to start a fire outdoors; and hours and hours of hot air. The financial tally for the election does not take in to account the countless hours spent by volunteers.

Billions Wasted

After expending billions of dollars and thousand upon thousands of hours in labor, the net outcome to society was junk; junk mail, junk metal, junk cars, junk cardboard, and junk oratory.

The waste of money and time is done in the name of making society better. Along with the time, most of the money was given through voluntary donations. The $5 billion spent on the hopes of improving the country could have rescued several thousand mortgages of $250,000 and less. The miles walking door to door could have delivered food or aid to those in need. The money and labor now relegated to the junk heap once held the potential for satisfying the wants and needs for many.

Conservation of precious resources is the key to long-term economic growth. Yet, every few years as a nation we throw vast sums of financial and human capital away producing…nothing.

Politics has become the quintessential malivestment that destroys scarce capital and liberties.

The demise of the GOP was sealed the day it became perceived to be the party of the religious mystics, and thereby proceeded to systematically alienate everyone who formerly supported them who is not an evangelical enthusiast. There are millions of people in this country who believe deeply in individual freedom, liberty, small government and low taxes yet are NOT evangelical Christians. In fact, they are profoundly repelled by people who try to shove their Jesus cult mentality down their throats. More concerning to these people is the very idea that it could become part and parcel of the national, federal, governance of America - the country premised on religious liberty (from it and to whatever flavor one ascribes).

When the GOP selected as their standard bearer for President, a crusty old war hero with less than zero understanding of economics (and to this day has not provided a philosophical defense of capitalism in the face of Obama who directly assaulted it) and literally no appeal to anyone under the age of 45, most of the results of this election were cast in stone prior to election day. After the selection of Sarah Palin, an evangelical fundamentalist Christian, the rest of the votes were sealed up and stayed home. No one can deny at this point that the whole idea behind the selection of Palin was to rally the religious right. Clearly, it was not to add expertise in any other realm. Read the rest of this entry »

http://www.illinoislottery.com/subsections/History/Win2008.txt

11/05/2008 Evening Pick 3

6-6-6

“I would rather be ruled by one tyrant three thousand miles away than three thousand tyrants not a mile away.”

Though the origin of this witticism is in doubt, it aptly sums the fears that the founders had about democracy. I virtually cringe every time when someone wistfully sings about the virtue of democracy. Today, the act of voting is paramount to hiring a thief.

Unwilling to attain their dreams either through personal sacrifice or effort, many will line up at the voting booth in hopes that the results of an election will turn wishful thinking into reality.

The defeated library referendum is a case in point. Several thousand people across the joint library district voted in favor of the ten million dollar project. If these people felt the need was so great, than why didn’t they show real philanthropy and true benevolence by donating $4,000 each. Some certainly could give more than others. Instead of reaching for their wallets supporters, including city councilman O’Malley, found it easier to reach for a gun and attempt a stick-up. Fortunately, the intended victims taxpayers jammed the trigger.

The following video of an Obama supporter is the quintessential illustration of the perils found in democracy. Through Obama she believes the worries of paying a mortgage and the gas in her car will be relieved. Can the electoral process degenerate any further?

Obama Will Pay My Mortgage

Audio of Maobama Here!

CHICAGO, Ill. — Among the other voters who have shown up to vote at Shoesmith Elementary School this morning, where Sen. Barack Obama, D-Ill., will vote: Louis Farrakhan and William Ayers.

Political Punch

Once Confucius was walking on the mountains and he came across a woman weeping by a grave. He asked the woman what here sorrow was, and she replied, “We are a family of hunters. My father was eaten by a tiger. My husband was bitten by a tiger and died. And now my only son!” “Why don’t you move down and live in the valley? Why do you continue to live up here?” asked Confucius. And the woman replied, “But sir, there are no tax collectors here!” Confucius added to his disciples, “You see, a bad government is more to be feared than tigers.”

meg·a·lo·ma·ni·a (mg-l-mn-, -mny) n.
1. A psychopathological condition in which delusional fantasies of wealth, power, or omnipotence predominate.
2. An obsession with grandiose or extravagant things or actions.

Obama in a nationwide Democratic radio address: “If you give me your vote on Tuesday, we won’t just win this election - together, we will change this country and change the world.”

So, how will he do this? What if you don’t want to change the world? We’ve seen his type before ladies and gentlemen. He will operate at both the rhetorical and the actual point of a gun.

Some people bristle when you raise the issue of whether or not Obama is a labeled member of Marxism, or a Socialist. True to his philosophical roots, and the path blazed by Saul Alinsky as noted by Keenan out here a while back, his M.O. is that of a socialist but not a Socialist. The terms Marxist come out, socialist, and Maoist, but in each case those who raise this issue in the public square are immediately labeled reactionary in the least.

What is stunning is that, in all of the lead up to this election, nobody has slapped the label of capitalist upon John McCain. A moniker he should aspire to as the standard bearer of the GOP. The closest we have come to a label for McCain is his own self-described status as a federalist. I suspect even John McCain would back away from all that that implies and what we would find, at the end of the day, is someone who believes in the federal government as an implicit instrument of progress, i.e. that it and its moderate growth is implicitly virtuous. In no way would McCain ever allow himself to be described as an anti-federalist, such as Patrick Henry.

Never, nowhere, no how, at any time has anyone I have read or heard or seen even remotely hinted at Barack Obama as fundamentally being a believer in the ability of the “free enterprise system” to do more good for more people than any other approach. Even more remote a promoter of capitalism and its necessary prerequisite of individual rights (most importantly, property rights and the right to keep the fruits of ones labor).

So, with those cheery thoughts in mind I have included a short quote from The Ominous Parallels by Leonard Peikoff.

Contrary to the Marxists, the Nazis did not advocate public ownership of the means of production. They did demand that the government oversee and run the nation’s economy. The issue of legal ownership, they explained, is secondary; what counts is the issue of control. Private citizens, therefore, may continue to hold titles to property—so long as the state reserves to itself the unqualified right to regulate the use of their property.

If “ownership” means the right to determine the use and disposal of material goods, then Nazism endowed the state with every real prerogative of ownership. What the individual retained was merely a formal deed, a contentless deed, which conferred no rights on its holder. Under communism, there is collective ownership of property de jure. Under Nazism, there is the same collective ownership de facto. . . .

But the Nazis defended their policies, and the country did not rebel; it accepted the Nazi argument. Selfish individuals may be unhappy, the Nazis said, but what we have established in Germany is the ideal system, socialism. In its Nazi usage this term is not restricted to a theory of economics; it is to be understood in a fundamental sense. “Socialism” for the Nazis denotes the principle of collectivism as such and its corollary, statism—in every field of human action, including but not limited to economics.

“To be a socialist,” says Goebbels, “is to submit the I to the thou; socialism is sacrificing the individual to the whole.”

Peikoff, The Ominous Parallels

We know Obama is not an anti-collectivist, therefore he IS a collectivist - there is no middle ground in such an analysis. The question then becomes, in what amalgam of collectivist ideology does Mr. Obama believe? That is the question every American should have in their minds when they approach a voting station next Tuesday. What philosophy, precisely, are they voting for? If one cannot answer that question in their own mind, honestly, one has no business being at a voting station.

by Rose Wilder Lane (an excerpted essay), 1936

I came out of the Soviet Union no longer a communist, because I believed in personal freedom. Like all Americans, I took for granted the individual liberty to which I had been born. It seemed as necessary and as inevitable as the air I breathed; it seemed the natural element in which human beings lived.

The thought that I might lose it had never remotely occurred to me. And I could not conceive that multitudes of human beings would ever willingly live without it. Read the rest of this entry »

Often the biggest problem for the looney left and enviromental wackos is the truth. They have an uncanny knack to deny the obvious even when it hits then in the face like a slushy snowball.

debating while the snow flies

Speaking of snowballs

throwing frozen spitballs

“When the people find that they can vote themselves money, that will herald the end of the republic.” — Benjamin Franklin

The following is a partial reprint of a letter that I sent. It was in response to several economic inquiries.

What folows are some simple rules I use to scruinize the claims of politicians, bureaucrarts, and financial pundits.

Dear …..

In answer to some of your inquiries about healthcare and education, I find it best to give you some of the basic tools of logic that I use to investigate an economic problem. I am sure the answer to your questions lie within the context of what is written below.

The Austrian School of Economic thought is unique because it revives the idea of natural law and how these laws govern human action (economics). Natural forces, no different for example than gravity, dictate the manner in which we transact with one another. Fortunately, just like gravity, you do not have to be a Ph.D in quantum physics to understand the concepts. A mathematical equation is not necessary to foresee what will happen when we jump from the 30th floor or why a plane falls out of the sky.

The same applies to the natural laws of economics. The economic maladies that you ask about are a result of people believing figuratively that the forces of gravity do not exist. In reality, politicians and government officials of every kind, including the Chairman of the Federal Reserve and the Treasury Secretary, run around believing that they can make natural forces disappear (except Ron Paul of course). The consequences for this faith can be as devastating as ignoring the laws recognized by Isaac Newton. Read the rest of this entry »