Isn’t it a bit ironic that the U.S. government is going to sue a few of the big banks in America when the government’s policies are part of what caused the housing disaster in the first place? Not only did the government’s policies create the bubble, but the federal reserve’s policies also helped to continually build up and add fuel to the ensuing bubble that would inevitably burst. What’s even worse than that and maybe reaches an even higher level of irony is that the same banks that the government is now suing are the same banks it bailed out to the tune of hundreds of billions of dollars a few years ago. Furthermore, not only are they suing the banks they bailed out, the lawsuit they’re bringing forward is going to cost the tax payers millions of dollars and the banks they’re taking to court might even use the bailout money they received over the years to cover their legal expenses. But what’s even worse is that this step by the “critical thinkers” doesn’t address the issue of central banking and central planning by previous and present political hacks.
Government Financial Aid has resulted in inflating the cost of tuition. College tuition is not driven by the free market, but by government subsidy. Attempts by the government to help poor people have hurt middle class people who do not qualify for financial aid and who are now stuck paying for the higher prices that have resulted from the government subsidy of education.
In any developed society there is a balance… Government can not help one group of people without hurting some other group of people.
If a member of the private sector who owns a business wishes to remain in business they must succeed at running a profitable venture. Without good accounting and a good profit margin they would be forced to shut down operations and in some cases file for bankruptcy. In the real world failure is very real consequence of mismanagement and non-profitability. If your product or service is needed by others another person will fill the need as the market demands.
In the private sector good business principles will determine your success or failure.
In 1933 in order to give credibility to the Gold Standard executive order 6102 was issued by President Franklin Roosevelt. The order criminalized the possession of monetary gold by any individual, partnership or corporation. There is nothing in the constitution that allows for such an order and it was challenged in court. Its enforceability was always in question but many Americans blindly submitted. The privately owned Federal Reserve Bank paid $20.67 per ounce for the gold they received. Later the exchange rate was set at $35 per ounce for international transactions where it stayed until 1971.
Raising the debt ceiling means printing more money (electronically). After the debt ceiling is raised the Department of Treasury will print up some new government notes, bonds and bills and sell them to the Federal Reserve. The Federal Reserve will then create some new money and give it to the US Treasury. All this does is dilute the existing currency and weaken the value of the dollar. Businessmen pay close attention to the actions of the government in regard to creating new money. The second the debt ceiling is raised, they raise prices to compensate for the diluted currency. Raising the debt ceiling will accomplish nothing in the long term except put government deeper into a debt they can not pay back.
As a student of economics, I love when I am given the chance to explain or animate a particular lesson or theory in an obvious, and easy to understand way. I love it even more when the chances I get are due to someone (or group of someones) inadvertently displaying a given lesson or theory (Or the idiocy of a given lesson or theory). I had one of those “Ah-ha!” moments the other day during a commercial break for Mythbusters. (Great show by the way) Among leagues of boring and very similar car commercials, a new Audi commercial blessed my TV screen. After searching on Youtube for the video, I found that the commercial in question is called the “Audi A7 ‘Spring Cleaning’ ” TV ad. Here it is for your enjoyment:
Over the rainy weekend that just past, hundreds of sound money advocates gathered at the federal reserve building in Philadelphia, Pennsylvania to protest the existence of the extremely secretive federal reserve that was enacted by Congress just a few days before Christmas in 1913.
Along with protesting in front of the federal reserve building, several individuals such as: Ernie Hancock, Adam Kokesh, Larken Rose, Scott Davis, and Darren Wolfe gave short speeches. After the speeches were wrapped up, we began on our marching route that started out on Market Street and ended at Buffalo Billiards on Chestnut Street. During the march, we handed out hundreds if not thousands of fliers while listening to Jordan Page who was playing live music from a float being pulled along the route in the street that was being escorted by the Philadelphia Police Department.