November 25th, 2008
O hell! What fun! Billions upon Billions are being thrown at the “crisis” — a panic created by Bernanke and Paulson from unwise actions by congresmen and senators embodied by Fannie and Freddie.
And now the latest, an $800 billion package to be followed by an Obama “JOLT.” Hey, why not just print a million dollar check for each and every citizen. Then we’d all be millionaires and our money would be worth what Zimbabwe’s money is worth — nothing!
It’s a money riot in full force, nothing less.
The irony of it all is that the utter devestation of this riot will far outweigh whatever damage and pain might have been caused by just letting the free markets take care of it in their own way — by letting the irresponsible take their losses.
November 22nd, 2008
We’re now hearing talk about a massive federal stimulus plan that would involve the government sending out billions of dollars to selected citizens in hopes they would spend it to the the economy going again. One often repeated aspect of this is the question of how to get the money working quickly enough to do some good. Well, forget that. It won’t work anyway. It hasn’t worked before and it won’t work now. Shoveling borrowed and taxed money from one group of citizens to another won’t do anything at all.
Now, however, I can suggest a plan that will work. It will also work very quickly, and it is simple to implement. The essence of it is as follows:
1) Declare a Tax Holiday for the month of December that will apply to all levels of government, federal, state and local. There will be no withholding of any kind. Sales taxes won’t be charged. No earnings from any source during December will be taxed in any way. Government fees and surcharges will be forgiven. All capital expenditures during the month will be written off in full against future taxes.
2) Declare a month long unpaid holiday for all government employees excepting only for law enforcement, public safety and military.
When this super-stimulus kicks in, which it immediately will do, think about extending it for another month, and another.
Who knows, we might become a very prosperous country again.
November 12th, 2008
We are witnessing a riot. Riots are instigated. When a couple of government bureaucrats storm into congress waving a bloody shirt and screaming that the financial system as we know it is about to collapse — when that happens, panic ensues. Panic begets a riot consisting of nationalizations, hundreds of billions of dollars thrown into “rescue” packages, the economic equivalent of buildings burning and blood in the streets.
Where does it stop? The tax system is unable to supply hundreds of billions for this plus hundreds of billions for that. There are only three places to get the money to repay the lenders from which it comes. Taxes, inflation, or confiscation of savings. The latter two are equivalent. We even hear congressional testimony about a plan for government to seize all private retirement assets (401-k, Kehoe, IRA, etc), similar to what is being done in Argentina by Peronist president Christina Kerchner. My bet is on massive inflation making the Carter years a fond memory of restraint.
The government is rioting, folks. The populace is in panic. The markets are in panic. It’s time to take a big breath, stop the government money riot and let the private market clear and settle the mess — with pain distributed where pain belongs, among the irresponsible.
Unfortunately that won’t include all the government bureaucrats and politicians who originally kindled the fire and then poured gasoline over it.
November 8th, 2008
The silly season has really struck Washington DC. Hundreds of billions for this, hundreds of billions for that. No thought of where the money comes from or what it is intended to accomplish. First buy bad mortgage debt, then purchase the banks, then … Shovel Money to the Auto Companies?
If the U.S. Gov. wants to aid the auto industry, why not put them to work repairing and refurbishing all the worn out military hardware, HumVee’s, tanks, trucks, helicopters, etc. that we’ll be retrieving from Iraq. It could save the country some money and put some backbone into the auto executives. Although we’d save even more, and maybe get a better job by having the work done by Honda and Toyota in non-union U.S. auto plants.
November 5th, 2008
OK, now we’ve got “change.” What a feable platform on which to elect a president. Oh well, now Obama can “Do his Thug Thizzle” and maybe it’s time to stop blaming George Bush for everything including the weather. The left’s campaign of Bush-hatred has to end eventually, and that’s “change we can believe in.”
In my opinion, our country’s biggest mistake was to remove the founders’ original restriction of voting to “adult white male property owners.”
A country gets the government it deserves. We’ll just have to wait and see.