Wednesday, January 25, 2012
Over the last decade or two there has been a gradual corruption both on the American and European continents of the traditional principles of accounting as practiced for centuries. In many countries the (IAS), International Accounting Standards have abandoned the traditional principle of prudence and replaced it with the principle of fair value. This was a particularly positive principle, in good economic times, because it highly inflated the bottom line of the financial assets of brokerages, investment houses and in general in all that wanted to see "inflating" book values. Eventually the "bubble" that this practice created because of greed burst and we, economic sector and countries and individuals who bought into this artificial position found themselves holding worthless, non-liquid toxic investments. So instead of bitting the bullet and saying they made a greedy mistakes they, the central banks, the Fed, and semi-governmental institutions bought back this worthless "stuff" through various means including bailouts and creating more and more fiat money. The time now has come to stop the fiat money and create and monetary system not based on "wishing it so" but on one backed by hard assets worth something "in themselves". Will the governments of the world do this or will the "can" be kicked down the road to another generation which will only make the problem more difficult to solve because the hole we find ourselves in will only be much, much deeper?
Tuesday, January 24, 2012
Over the last half century honest rigorous economic analysis and a balanced approach too centralized financial planning has shown that the centralized approach cannot succeed in defining the most advantageous monetary policy for every moment. This policy of centralized monetary planning and policy is one of the primary reasons the Soviet Union is now extinct. If one views the theory of socialism and centralized economic planning and policy making through this lens, which the Austrian economist did, one must come to the conclusion that it is self terminating. Ludwig von Mises and Friedrick A. Hayek discovered this and it can be applied to central banks here and abroad and too the Federal Reserve and to Ben Bernanke in particular. It is impossible organize a complex society by central planning and coercive commands of government; there are too many variables that cannot be know or understood. The free market must be left alone since it alone is usually ahead of the curve of the knowledge that any government can trully understand and plan for in it's rules and regulations which it believes will "control" the economy. Europe will do what it will do but in this country we must END THE FED.
Sunday, January 22, 2012
Those who say there's no way an armed citizen could stop a potential mass shooting - and may even exacerbate the carnage - should take the following tale to heart. Customers at a Houston, Texas, Denny's restaurant were eating breakfast one morning when two armed robbers brandishing guns burst into the store and demanded money. One of the diners stood up, drew a handgun and opened fire on the men. The robbers fled the scene. No one was injured. (Associated Press, 11/26/11)
Saturday, January 7, 2012
Well who do you trust? As I get older I trust fewer and fewer people and entities. Call me jaded, call me paranoid or whatever you want....but I trully believe I may have attained the "wisdom" that comes with age and being lied to and screwed by individuals, businesses, politicians and govenments...local, state and national. Does anyone tell the truth or does everyone have their own agenda. So this coming election year I am going to judge a candidate by not only what they say they will try and do but by their past actions, promises and what they have accomplished. I suspect that I will be voting a majority of incombents out of office on local, state and national levels. Can new individuals with firm commitments do any worse that their forebearers...think not. So I think I am going to try and change the entire sltate and trust in providence and the zeal of neophytes to change the way government operates...hoping they will work for the people and not for themselves and their party. Wish me luck...I believe the future of our country depends on the results of this coming national election. Don't vote just for party but vote for the person who understands that they are there to serve you and the best interests of this country.