Category Archives: The State

UPDATED: Thought Experiment in Statism (Economic Apocalypse?)

Debt, Economy, Government, Political Economy, Private Property, Taxation, The State

Treasury Secretary Tim Geithner told FoxNews anchor Chris Wallace repeatedly that to avoid the debt precipice, “tax reform that would generate revenue” [“now there’s a nice word for taxes”] must be considered. The “revenue we’re going to get through tax reform”: that’s how Geithner put it second time around, during the Sunday interview.

Let us assume, for a moment (as Secretary Geithner expects us to), that the solution to the debt is paying the people who incurred the debt more money; that the solution to the debt is seizing private property (through taxes) and placing it in communal ownership (state bureaucracies), where resources are never allocated efficiently and are always squandered.

Assuming all the above, do you have any guarantees that the money stuffed down the maw of the Federal Frankenstein will actually go to pay down the debt? Of course you don’t. Of course it won’t.

Money extracted from us by the Feds is fungible. Any additional revenues the Feds receive via taxes they will use to plunge private property owners deeper into debt.

UPDATE (July 25): The notion that not raising the debt-ceiling must necessarily result in the US defaulting on its debt is nonsensical. In so asserting, Tiny Tim is talking tripe. The US Treasury takes in enough loot to pay down the interest on the debt as well as a portion of the principal.

Meanwhile Secretary of State Hillary Clinton was upbeat about the US’s economic prospects. In a speech to the U.S. Chamber of Commerce in Hong Kong, Clinton framed “the political wrangling in Washington” over the debt as a function of America’s “open and democratic society.”

Clever. I noticed that CNN, in its reporting today, had taken the same tack: Markets across the world were worried over political wrangling in the US, rather than the debt. It was essential for the Demopublicans to arrive at an agreement for markets’ sake. The fact that there is no money in the coffers: that’s of no concern. Why, the awful Gloria Borges, a banal mind if ever there was one, ventured that legislation ought to be passed to automate the raising of the debt ceiling so that “We don’t have to go through this again.”

British Parliamentary-Police-Press Complex Splutters

Britain, Crime, English, Journalism, Law, Media, The State, The Zeitgeist

In the US we have a military-media-industrial-congressional-complex. These branches share a symbiotic relationship. For example, when the top brass in government or in the military want to launch a war on another people (Iraq, for example), or on their own (The Transportation and Security Administration), they entrust the ratings-craving (and craven) television networks to do their bidding.

In the UK they have a similar set-up, call it, for our purposes, the parliamentary-police-press complex. As in the US, its mission is to keep the populace preoccupied with puerile nonsense. The already pathetic British press, it turns out, was going above the call of duty in emulating the government: News of the World, a News Corp, Rupert Murdoch British tabloid, has been hacking the phones and voicemail of interested parties.

Not unlike the government that is currently quizzing it.

Today, Rebekah Brooks of the tumbleweed hair apologized for the editorial direction she took.

It has to be clear that this is a dance of statists.

UPDATED: The Animal (Spirits) Move Chairman Ben

Debt, Economy, Federal Reserve Bank, Inflation, Political Economy, The State

John Maynard Keynes wrote impenetrable prose. Likewise, Ben S. Bernanke speaks it. Obscurantism typified Bernanke’s address at the International Monetary Conference, Atlanta, Georgia. The “animal spirits” are lurking everywhere here. See if you can spot them.

UPDATED (June 8): John Maynard Keynes, “the commie who controls economies from the grave,” is alive and well in Fed Chairman Ben’s voodoo economics:

BEN: “[T]he ability and willingness of households to spend will be an important determinant of the pace at which the economy expands in coming quarters.”

“Spooky dude” Keynes, and his acolytes, honestly believed that the fickle consumer’s biorhythms control the economy. If the consumer is spooked, “the economy” gets that way too.

BEN: “[H]ouseholds are facing some significant headwinds, including increases in food and energy prices, declining home values, continued tightness in some credit markets, and still-high unemployment, all of which have taken a toll on consumer confidence.”

The Keynesian mixes cause and effect liberally. After all, the average man hasn’t a hope in hell of grasping the exclusive knowledge and magic formulas to which only Voodoo economists are privy. What Ben fails to mention is this: He is pumping vast amounts of paper, non-stop, into America’s phony economy. With every infusion of fake money, as Austrian economists have warned, the dollar drops like a stone. Assets will continue to devalue. Saving will be difficult; retirement near impossible. Prices will soar, and the currency will eventually collapse (hyperinflation).

Before you blame Obama, the Republikeynsians began this spiral in earnest.

Have at it.

The Power of Private Property

Human Accomplishment, Individualism Vs. Collectivism, Private Property, The State

“Bat shit crazy” is what Rep. Ron Paul was called when he suggested that “victims of the flooding of the Mississippi River … should be building their own levees.” What do you know? Before evacuating the area of Vicksburg, Miss, reports NPR, “some residents and farmers took matters into their own hands and built personal levees to protect their homes from floodwaters. Some of the levees rise as high as the roof, if not higher.”

Come hell or high water, people will protect what’s theirs; what they’ve worked for. Government, on the other hand, is engaged in the crooked calculus of attempting to minimize overall damage and maximize the common good. Since its agents have no stake in the property managed, the plans and their execution are bound to be shoddy.

“Entrusted with the management and regulation of assets you don’t own, have no stake in; on behalf of millions of people you don’t know , only pretend to care about, are unaccountable to, and who have no real recourse against your mismanagement—how long before your performance plummets?

“The root of environmental despoliation is the tragedy of the commons, i.e., the absence of property rights in the resource. One of my favorite running routes wends along miles of lakeside property, all privately owned, and ever so pristine. Where visitors dirty the trail that cleaves to the majestic homes; fastidious owners are quick to pick up after them.

In the absence of private ownership in the means of production, government-controlled resources go to seed. There is simply no one with strong enough a stake in the landmass or waterway to police it before disaster strikes.” (Source: “When Palin Agrees With Olbermann”)