Politics

[Wheels]

Wow is right.

I'm going to have to watch out or I might start believing what I post.

 

[WAB]

A guy can dream...

If Trump should decide to do *something* about both the IRS and the Federal Reserve System...

It is a difficult thing to wrap one's mind around, but *currency* is debt. Thus, the federal debt can NEVER be repaid without destroying USD currency. When debts are repaid, the M1 and M2 (and eventually the M0)created by them are destroyed. This is literally Accounting 101-level stuff.

IF Trump has an honest-to-God Austrian somewhere among his economic advisors, and he pays attention to him...

Austrian economics, the foundation of free market economics. Well beyond the grasp of most democrats.

 

[Opposite Pole]

Austrian economics, the foundation of free market economics. Well beyond the grasp of most democrats.

Well beyond the grasp of most people. This problem is most certainly not limited to you country, it is a universal problem. Is living within one’s means and picking one’s own bills really so hard to accept? I don’t get it.

 

[sgt_zim]

Austrian economics, the foundation of free market economics. Well beyond the grasp of most democrats.

I'm not sure it's beyond their grasp, but I'm reasonably certain it would shatter their worldview if they took an honest look at it. Imagine the investment of emotion they've spent. I honestly think a great many of them would come unhinged.

 

[Wheels]

I'm not sure it's beyond their grasp, but I'm reasonably certain it would shatter their worldview if they took an honest look at it. Imagine the investment of emotion they've spent. I honestly think a great many of them would come unhinged.

The cognitive dissonance might explode heads

 

[sgt_zim]

If I had $1 on the day I was born, it would have less than a dime of spending power today.

And herein is the value and power of honest money, of gold. Currency and money share all of the same attributes except one: gold/money is a store of value (of your labor), currency is not. Many think that's a "bug" in currency. It isn't a bug, it's a feature. Those running governments would not push currency if this weren't a feature because it benefits those engaged in profligate spending. They get to spend inflated currency first, before it reaches general distribution and before it has watered down the value of the currency.

The current US debt equates to $70,000 for every man woman and child in the USA. If you consider unfunded liabilities like medicare and social security, you add another $200,000 for every individual in America. Everybody owes a quarter million dollars. A family of four owes a million. Since half of American's don't pay taxes, a working family really owes over $2,000,000. The only way it is paid off is by debasing the currency. We become a Weimar Republic or a Zimbabwe.

As I mentioned above, our debt cannot be extinguished without destroying the dollar entirely.

It's a funny thing, really. Every publicly traded company in the US is required by law to report their financial position using Accrual Accounting, as opposed to Cash Accounting; and for good reason - it's easy to mask future liabilities when reporting by Cash Accounting. So why does the largest entity in the United States (the federal government) get to report its financial health via Cash Accounting?

I don't know if Trump is a fiscal conservative or not. He was a democrat most of his life until recently. He is obviously trying to get a massive infrastructure spending bill through congress now. My hope is that he gets employment high with good paying jobs and then starts cutting federal spending so that by the end of his second term he has a budget where revenue and costs are close to equaling out. A key is cutting graft and waste out of the budget. If he is able to do that in his second term, he has a chance.

Unfortunately the Hayek's and Friedman's are in that great free market in the sky!

More [dark] humor. Irrespective of income tax rates, our federal government snags roughly the same percentage of the GDP every year (around 17%). That being the case, it is curious to me when those on the left would always argue for higher taxes since it is painfully obvious such thing makes the economy sluggish, keeps the GDP smaller. I believe I'd rather have 17% of a large, growing pie than a small pie. Knowing this, one inevitably concludes leftist politicians are far more interested in flexing their muscles and maintaining the power and the fiefdoms they control than anything else.

BTW, Milton was right about a lot of things, but he was THE Chicagoan after all, not an Austrian. Did you know it was Friedman's suggestion to implement payroll withholding of income tax? In his later years, he regretted having pushed for that.

 

[Royal27]

WOW. That didn't take long.

Theresa May tears up as she announces resignation

https://www.cnn.com/videos/world/2019/05/24/theresa-may-resignation-vpx.cnn

The UK is our biggest ally right?

Yet two days later neither CNN nor FOX has picked up the story in any significant way with only blurbs that you have to search for. You'd think that the resignation of May would be front page news but it isn't even worthy of a story at all.

I wonder why that is?

 

[Ray B]

BTW, Milton was right about a lot of things, but he was THE Chicagoan after all, not an Austrian. Did you know it was Friedman's suggestion to implement payroll withholding of income tax? In his later years, he regretted having pushed for that.

Sergeant Zim did you know Professor Friedman well enough to call him by his first name?

 

[WAB]

Sgt Zim, I work for one of the largest private companies in the world. The owner is a scholar and a student of Austrian economics. Hired in to their executive development group a couple of decades ago, I had the good fortune of extensive study in Austrian economics. What is even more intriguing is their leadership/management philosophy. Called ‘Market Based Management’, it recognizes the contradictory nature of centrally controlled firms embracing a free market economy. MBM is an attempt to use free market principles to create the greatest wealth inside a company, just as it has proven to create the greatest wealth in society. To say it has been successful in our company would be a gross understatement. Based on your comments, I think you would find it an interesting study.

 

[sgt_zim]

Sgt Zim, I work for one of the largest private companies in the world. The owner is a scholar and a student of Austrian economics. Hired in to their executive development group a couple of decades ago, I had the good fortune of extensive study in Austrian economics. What is even more intriguing is their leadership/management philosophy. Called ‘Market Based Management’, it recognizes the contradictory nature of centrally controlled firms embracing a free market economy. MBM is an attempt to use free market principles to create the greatest wealth inside a company, just as it has proven to create the greatest wealth in society. To say it has been successful in our company would be a gross understatement. Based on your comments, I think you would find it an interesting study.

I'm sure I would.

Curious as to your thoughts on John Allison. I don't know what his management style is/was, but I greatly admire what he did at BB&T.

 

[WAB]

I'm sure I would.

Curious as to your thoughts on John Allison. I don't know what his management style is/was, but I greatly admire what he did at BB&T.

As someone with strong libertarian tendencies, I like him a lot. His work seems more outwardly focused than the internal focus of MBM. Very solid track record.

 

[sgt_zim]

The reading list he required of new executives...

Too bad he didn't make the cut for SecTreas. I wish I knew the dynamics of why he didn't get/take that gig.

 

[Wheels]

CNN thinks the meeting between Prince Charles and Trump will be about Climate Change.

https://www.cnn.com/2019/05/20/uk/prince-charles-meeting-trump-uk-state-visit-gbr-intl/index.html

Others think it has something to do with keeping secret the UK's involvement in spying on an American presidential candidate, then being a lead force in trying to get him impeached. Or, apologizing for the UK's involvement in spygate, while May is a lame duck.

But as we peal back the onion, could there be a third, or real reason to the meeting?

America is reviewing the plea deals in the Jeffery Epstein case. Will the case reopen and will more information come out. Prince Andrew was implicated with pedophilia and nothing happened. Now girls that were under-aged and sexually abused have become adults and gotten the cases to be re looked at. Could Charles be pleading for his little brother and the monarchy?

Climate Change may be the premise for the meeting. But will it be the context of the meeting? Inquiring minds.........

https://www.rt.com/uk/445451-jeffrey-epstein-prince-andrew/

 

[Ray B]

Climate Change is a Win-Win either way. If it's false, then we can proceed with no adverse consequences. If it is a valid theory and results in the sea level rising 100 feet a significant portion of the worlds problem areas will be underwater, so that is really good; so as noted either case- Win-Win.

 

[Wheels]

Trump announces a tariff on Mexico until illegal immigration stops. What are the odds the money collected on tariffs goes to pay for the wall?



Donald J. Trump‏Verified account @realDonaldTrump
On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP. The Tariff will gradually increase until the Illegal Immigration problem is remedied,..

4:30 PM - 30 May 2019



Donald J. Trump‏Verified account @realDonaldTrump 2h2 hours ago
....at which time the Tariffs will be removed. Details from the White House to follow.

5,608 replies10,800 retweets45,414 likes

 

[markm]

Trump announces a tariff on Mexico until illegal immigration stops. What are the odds the money collected on tariffs goes to pay for the wall?



Donald J. Trump‏Verified account @realDonaldTrump
On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP. The Tariff will gradually increase until the Illegal Immigration problem is remedied,..

4:30 PM - 30 May 2019



Donald J. Trump‏Verified account @realDonaldTrump 2h2 hours ago
....at which time the Tariffs will be removed. Details from the White House to follow.

5,608 replies10,800 retweets45,414 likes

They should shut the whole boarder down period .

 

[Saul]

Too bad Trump does not understand how tariffs work...American businesses are hurt by tariffs

 

[Ray B]

I am disappointed with the tariff. A tariff is merely a tax on some import that the consumer (US buyers) pay. Other than increasing the cost to US buyers, which depending on the items price elasticity, may reduce purchases and indirectly reduce the sales of Mexican products. If the US government wants to reduce sales of Mexican products rather than a tariff, a quota would be a more direct answer. Instead of how ever many cars, computers, avocados are coming across the border, put in a quota where only 1/4 of that amount would be allowed. In addition, if any supplier raises their price, reduces that suppliers quota to zero. The US retailers will increase the price (due to decreased supply-steady demand) but at least the increased funds would be staying in the US private sector.

 

[Saul]

I am disappointed with the tariff. A tariff is merely a tax on some import that the consumer (US buyers) pay. Other than increasing the cost to US buyers, which depending on the items price elasticity, may reduce purchases and indirectly reduce the sales of Mexican products. If the US government wants to reduce sales of Mexican products rather than a tariff, a quota would be a more direct answer. Instead of how ever many cars, computers, avocados are coming across the border, put in a quota where only 1/4 of that amount would be allowed. In addition, if any supplier raises their price, reduces that suppliers quota to zero. The US retailers will increase the price (due to decreased supply-steady demand) but at least the increased funds would be staying in the US private sector.

I wholeheartedly agree. Trump seems to think that the supplier pays the tariff and not the American business. A quota system as you propose would actually accomplish his intended goal.

 

[sgt_zim]

I wholeheartedly agree. Trump seems to think that the supplier pays the tariff and not the American business. A quota system as you propose would actually accomplish his intended goal.

American businesses don't pay the tariff, American consumers pay the tariff. Businesses ultimately do not pay tax at all, they are only remitters of tax. Their customers pay their taxes, just like their customers pay for every other cost of doing business.

Businesses only have income and expenses. I think you will agree that cutting a check to the tax man doesn't fall on the "income" side of the ledger. Higher taxes may decrease profitability, but increasing any expense has the same effect. Remember when Diesel prices went to almost $5 a few years ago? But if you raise taxes high enough for long enough, the business principals will eventually shutter US operations and move overseas, provided they have enough capital to do so. Otherwise, they just shutter operations. Regulation has the same effect on businesses, and on consumer's wallets, as taxes do.