Wednesday, August 24, 2011

Economic Fallacies

I believe there are so many fallacies, failed theories, and erroneous planning in the world of Economics because of the Heisenberg Uncertainty Principle.  The great thinkers, planners, and mathematicians fail to account for the human factor and, in particular, how human beings react to their changing surroundings.

We are not robots. We will not do what you say. We may act one way today but a different way tomorrow. We do not know our futures, and therefore neither do you. We will not respond to incentives the way you think we will. We will not respond to all incentives. We all will not respond to incentives the same way.

Economics fails not because it’s a faulty science but because our "leaders" see it as a means of controlling us, our wealth, and our potential to produce. Regardless of the merits of their intentions, Economics cannot be used to control or predict; it can only be used to measure and explain. As Adam Smith tried in vain to tell us...the greatest amount of wealth will not be created by organizing people toward a common goal but by leaving them alone to work towards their own individual goals.

Of the hundreds of examples of planned economies in the past 3000 years, none of them have matched the level of production of the Invisible Hand, which has sadly been seen rarely, such as in parts of American history, tiny pockets of Europe, and in Hong Kong, Malaysia, Singapore, and only a few other places.

We are doomed to produce less than our potential because we let our “leaders” tell us what to do.  The stronger they get, the more power they have, and the more parts of the economy they control…the poorer we will be.

Tuesday, August 23, 2011


We are at an ideological crossroads in American history.  It is coming down to this…Do you want a government that leaves you alone to succeed or fail on your own merits, hard work, and ingenuity or one that takes things from other people against their will to give to you?

A growing number of Americans have discovered that if they combine their voting power together, they can use the government as their hired thugs:  to steal money, property, food, and other unearned resources from a shrinking class of “Haves”.

But with fewer and fewer people working to actually produce the “stuff” we all need or want and instead just using government force to steal from everybody else, we WILL run out of enough producers to make the stuff in the first place.

I’d like to congratulate the Democrat party.  Sometime in the 1950s, they were hijacked by ideological socialists hell-bent on destroying the American economy and American culture.  They are about 90% complete.

Sunday, August 21, 2011

Blaming Republicans for Democrat Destruction of the Economy

Obama has been in office for 31 months.

For 24 of those months, the Democrats controlled all three major parts of the government (Executive, Senate, and House).

For the final 7 months, the Democrats have controlled 2/3 of the government.

So the Republicans have controlled about 7.5% of the federal government during Obama’s time in office, but they get all the blame for the problems in the economy?

There is nobody, I repeat NOBODY, with a brain, outside of Obama’s koolaide-drinking hardcore blind base, that thinks the Republicans are responsible for any problem whatsoever around us.

To all you Democrats that are out there running around trying to blame all these problems on the Republicans…you look really, really stupid.

Sunday, August 14, 2011

Why would U.S. allies ever trust President Ron Paul?

Don’t get me wrong, Ron Paul is a great GOP presidential candidate and masterfully explains Austrian economic theory better than I’ve heard from any politician. His eagerness and will to abolish the Federal Reserve and return us to the Gold Standard are two great tactics for restoring America’s diminishing prosperity and superpower status.

His foreign policy positions, however, leave much to be desired. It demonstrates an extreme naiveté, announcing to the political world on a giant marquee that he formed his political opinion on international politics during the Vietnam War and has yet to adjust to the radically changing world since then.

U.S. foreign policy in southeast Asia at the time was based on the Domino Theory, which demanded that we support any opposition to communism because once a country fell, others in the region would also fall to communism, like dominos. This would theoretically lead to millions of political executions, thousands of political prisons, skyrocketing poverty, and mass starvation. Liberals mocked it, Ron Paul opposed it then and now, and the mainstream media deemed it ridiculous.

But it was true.

EVERYTHING the Domino Theory predicted came to fruition. One after another, southeast Asian nations fell to communism, a half-century of prosperity vanished, tens of millions of people were killed on battlefields or executed, and millions more would starve over the following 30 years.

Ron Paul was wrong then, and he’s wrong now.

South Vietnam was an ally of ours. They were invaded by a ruthless, well-armed, and well-funded communist neighbor to their north, and they asked for our help. If Ron Paul thinks we should turn our back on our allies every time they are in trouble, we’re not going to have many allies left. Why would they trust us? Or a better question is, Why would they trust President Ron Paul?

Saturday, August 06, 2011

Wednesday, August 03, 2011

The Budget Battle: What’s at Stake

I know most people aren’t paying attention at all to the current debate over the federal government budget, simply because they are clueless as to what’s at stake.  They have lived their lives in relative comfort, all their basic needs being met just by working a steady job, taking out a few loans when they want something they don’t have the cash for, and just relying on the wise politicians to keep everything going.

Those days are over.

Let me be more blunt.  Your standard of living has just peaked sometime in the past 5 years.  For the rest of your life, you will not have as much “stuff” as you have now.

Watch this cute video about where we’ve been and where we’re going:

It’s really not that complicated.  The federal government spends a WHOLE LOT more than it actually takes in.  Regardless of all the naysaying you hear from the media and politicians, almost ALL government spending is simply giving money or free stuff to people.  A LOT of people.  But as the spending gets bigger and bigger every year and the money brought in stays almost the same (mostly because of the recession), we are approaching a breaking point.

This CANNOT go on forever.  It’s like renting an apartment that costs twice as much as your actual monthly take-home pay.  Since you can’t afford it, you just put the rest on credit cards.  You pay only the minimums every month and just apply for more credit cards.  Every couple of months you get a new card, max it out, and add its monthly minimum payment to your big stack of bills.  Eventually, you will reach a point when, even while paying only the minimums, your monthly credit card bills are bigger than your paycheck.  Credit card companies will want their money, and they will get it, one way or another.  You can only refinance so many times.  The banks will want their money back.  You can’t go on stealing from them forever.  Game over.  You lose.

Now at the federal government level, this problem is a lot bigger with much more dire consequences.  You see, most of this debt isn’t held by credit card companies with sensitive PR departments.  It’s held by foreign countries.  With militaries.  And no sense of humor.

When the government reaches a point that it can no longer pay back the trillions of dollars that it has borrowed from China, what do you think is going to happen?  You think they can just print more and China will take it as payment?  Not likely.  If they just print more, the money becomes worthless.  China gave us the trillions of dollars back when the dollar could buy 2 apples.  They are NOT going to take the same trillions of dollars back when it takes 5 dollars to buy one apple.  No way, no how.

Instead China will demand the apples, not the money that can’t buy apples anymore.  Or maybe some money from another country that still has the ability to buy apples.  They aren’t likely to “negotiate” either.  That’s a lot of apples.  And they have a lot of mouths to feed.  And they don’t have a sense of humor.  This is where their military comes in.  They will use it to demand what’s due to them.   And the ENTIRE WORLD will back them.  You can’t just take money from somebody, promise to give it back, then only give back a little bit of it and expect them to go away happy.

And that’s only the half of it.

Remember all that money the government has been borrowing from China to give away to the American people or to buy stuff to give to the American people?  Well, when China figures out our government can’t pay them back anymore, they’re going to stop loaning the USA the money.  No money = no freebies to the American people.  And that’s a LOT of American people that are going to stop getting their freebies.  And, of course, the biggest problem here is that they have been receiving their freebies for so long and they have been given so many promises by politicians, they believe they have earned these freebies and have a right to them.  Just like in Greece, when you take away peoples’ free stuff, they get very, very, very angry.

And nobody will be there to bail us out.  I promise you.

Because of the nature of financial dealings, both of these problems – China and the pissed-off entitled Americans – are going to occur at roughly the same time, with horrible consequences.

1) China will launch a large-scale war and invade the United States.

2) The entitled Americans will ignite a civil war.

These two things are inevitable.  And they will happen within the next thirty years.

There is one, EXACTLY 1…let me repeat, there is ONLY ONE way to prevent the destruction of the United States.  There are NO OTHER FEASIBLE SOLUTIONS:

We must reduce the size of the federal government to LESS THAN ONE-THIRD of its current size.

There is absolutely no other way.  I don’t care about all the lies you hear in the media.  There is no other way.  Your country will cease to exist within 30 years and tens of millions of people will die if this doesn’t happen.

Friday, July 29, 2011

Why won’t the Republicans accept a tax increase on the richest Americans to help solve the debt crisis?

The is probably the most common question I read from Democrats who claim they want to compromise with Republicans.

The answer is pretty simple:  Because Republicans refuse to kill any chance of an economic recovery and increase unemployment just so the Democrats can continue their unfathomable social program expansions and trillions of dollars in free handouts to their special interest groups.

The Republicans believe it is because of these Democrats’ issues that got us into this predicament to begin with!  It’s absolutely, 100%, completely ABSURD to continue on such a destructive path!

It’s like a crack addict losing his job, car, house, and all his money then becoming confused and belligerent because his brother won’t give him $20 to buy another crack rock.

Thursday, March 31, 2011

Sen. McCain Says Al-Qaeda Wouldn’t be as Bad as Qaddafi if They Ran Libya

Yesterday on PBS, Senator John McCain (R-AZ) said this:

“I am a little bit aggravated by this hype that somehow Al Qaeda is going to take over this organization. There is no evidence...And in addition to that, you know, you have got to go a long way to be worse than Qaddafi”

Read more: ‘Flickers’ of Al Qaeda in Libya Aren’t New -

Sunday, March 27, 2011

According to the media, Geraldine Ferraro was remembered for…

breaking barriers by becoming the first female VP candidate on a major party ticket.

I was in elementary school when she ran, but some of us remember her for something far more important: losing an election by the biggest landslide in nearly 50 years.  Lucky for everybody on the planet, the Democrats lost and Reagan won…the economy took off, the Berlin wall came down, we won the Cold War, and the world would go on to see its greatest victory for liberty and largest economic expansion in history.

It’s a good thing Ferraro didn’t break any bigger barriers.

Now where’s Ronald Reagan when you need him…