Showing posts with label Bailout. Show all posts
Showing posts with label Bailout. Show all posts

Thursday, November 20, 2008

The Bailout Bust, Marriage Madness, and Pirates?!?

It's another great day in this greatest nation on God's green Earth, and while it has been awhile since I've blogged, I suppose the best way to start off this much delayed post is to address a few lingering house keeping concerns. I haven't updated in awhile due to the fact that I've moved once again. During the course of this past year, I've gone from Riverside, to Walnut, and now Long Beach. Quite the change, literally from desert to shoreline, and certainly the changes that went along with each move were almost as drastic and disparate as the environs are different. To put it simply, I'm now living with my brother Phillip, his beautiful wife Carmen, (he certainly married above his station) and my soon to be 4 month old nephew Bryant (he's quite the looker, much like his Uncle). It's as comfortable a situation as I've had in a long while, and I shall be sorry to leave it when the time comes and we part ways. Don't worry, this blog will not turn into the blog of a doting uncle, and baby pictures will not start popping up all over the place, but I reserve the right to sneak one or two in, as I see fit. Maybe a few of you would welcome the change, seeing as how I know this blog can be a bit of a dry read.

In a follow up to my last post, I have a great Global Warming update for you, my beloved reader. Dr James Hansen who heads up NASA’s Goddard Institute for Space Studies, and happens to be one of Al Gore's chief allies on the global warming crisis, announced that this past October, was the hottest October on record. This was shocking news, mostly because his claim was totally and demonstrably false. HotAir.com did a great summation of a UK Telegraph article that completely blasted Al Gore, Dr. James Hansen, GISS and the IPCC, funny how this story didn't get any attention at all from the media. Here's a few choice snippets for your viewing pleasure or distress, depending on the circumstances.

"GISS’s computerised temperature maps seemed to show readings across a large part of Russia had been up to 10 degrees higher than normal. But when expert readers of the two leading warming-sceptic blogs, Watts Up With That and Climate Audit, began detailed analysis of the GISS data they made an astonishing discovery. The reason for the freak figures was that scores of temperature records from Russia and elsewhere were not based on October readings at all. Figures from the previous month had simply been carried over and repeated two months running."

"The error was so glaring that when it was reported on the two blogs - run by the US meteorologist Anthony Watts and Steve McIntyre, the Canadian computer analyst who won fame for his expert debunking of the notorious “hockey stick” graph - GISS began hastily revising its figures. This only made the confusion worse because, to compensate for the lowered temperatures in Russia, GISS claimed to have discovered a new “hotspot” in the Arctic - in a month when satellite images were showing Arctic sea-ice recovering so fast from its summer melt that three weeks ago it was 30 per cent more extensive than at the same time last year."

"A GISS spokesman lamely explained that the reason for the error in the Russian figures was that they were obtained from another body, and that GISS did not have resources to exercise proper quality control over the data it was supplied with. This is an astonishing admission: the figures published by Dr Hansen’s institute are not only one of the four data sets that the UN’s Intergovernmental Panel on Climate Change (IPCC) relies on to promote its case for global warming, but they are the most widely quoted, since they consistently show higher temperatures than the others."

"Yet last week’s latest episode is far from the first time Dr Hansen’s methodology has been called in question. In 2007 he was forced by Mr Watts and Mr McIntyre to revise his published figures for US surface temperatures, to show that the hottest decade of the 20th century was not the 1990s, as he had claimed, but the 1930s."

"Another of his close allies is Dr Rajendra Pachauri, chairman of the IPCC, who recently startled a university audience in Australia by claiming that global temperatures have recently been rising “very much faster” than ever, in front of a graph showing them rising sharply in the past decade. In fact, as many of his audience were aware, they have not been rising in recent years and since 2007 have dropped."

So lets recap here ladies and gents, GISS's numbers were wrong about Russia being 10 degrees hotter than normal because the numbers were not accurately being reported; indeed they were simply carried over from the last month, for TWO months. When the error was found GISS tried to deflect the criticism by saying they found a new hot spot in the Arctic even though there was already evidence that said that Arctic sea-ice had been forming so fast and so extensively that it was 30% more extensive than last year. Doesn't sound like good evidence of a hot spot to me. Not that it matters because apparently GISS doesn't even do it's own numbers according to their own spokeswoman, despite the fact that they are one of the 4 data sets that the UN's IPCC uses to further their global warming policy plans. Oh yeah GISS's numbers are also the most quoted. It's a good thing they have some sort of quality control system in place to guarantee their numbers.. oh wait, they don't. As if that wasn't bad enough, Dr. James Hansen who heads GISS was found to be demonstrably and irrefutably lying about global warming and the same can be said for his partner in crime, Dr. Rajendra Pachauri. Yet these are the people that 20/20 and 60 minutes will have on their shows to tell you that "the Earth has a cold," or something similarly foolish. The next time someone begins hyperventilating and/or foaming at the mouth about environmentalism, and the dangers of global warming, kindly direct them to this blog, and invite them to read, learn and perhaps use the intelligence that God gave them to do a little bit of reasoning for themselves. In any event, we've got a lot of ground to cover today, even without going back to previous topics/posts.. and a 1, 2, 3.. HAJIME!

Bailout Bust:
Is it finally kosher to say that the so-called "bailout" has been a complete and unmitigated failure? If not, please just tell me when it's okay, and I promise to be right there to to say, "I told you so" when reality can no longer be obfuscated to the point of absurdity. Lets take a look at the current situation with the bailout as pertains to the automobile industry. It seems that the most recent proposal to take 25 billion dollars from the 700 billion dollar "rescue" plan has been dropped by Senate Democrats. Finally, some good news! But just so that we don't get confused, the Big 3 auto-makers already have 25 billion dollars coming in the pipeline that the White House and Congress have already signed off on. What they were asking for now, is an additional 25 billion from the socialist bailout plan administered by Bush's Treasury Secretary none other than Democrat Henry Paulson. Bet you didn't know that the purportedly harshly partisan President Bush had and continues to have many Democrats on his cabinet and staff.. yet another example of selective reporting by the media. Anyway, the word from the White House is basically this, allow the auto-makers to use the original 25 billion to cover day to day expenses and remove any mandates for re-tooling for making "green" cars. The original 25 billion was given under those restrictions and the Democrat Congress now rejects any attempt to change the allocation of the funds, because obviously they know how to run a business better than Auto Executives do, and it's not like it was government regulation that led to the downfall of American Manufacturing.. yup that sounds about right. So basically we have members of Congress who have never run a business in their life, now designing the business model for American auto-makers. The Wall Street Journal has a great article on the debacle that unfolds daily in Washington, here's a quick excerpt that I think is particularly relevant.

"Once Congress starts investing in its green visions for Detroit, it isn't likely to give up easily or stop at $50 billion. If the Environmental Motor Company's cars don't sell well enough to earn a profit, then something else would have to be done to vindicate the investments. Taxpayer loans and other subsidies would have to float the companies until Americans wise up or Congress forces consumers to buy them. Taxpayers should get ready to own a piece of Detroit for a very long time."
I'm going to go with Mitt Romney on this one, I am of the mind that the only solution to this current crisis is bankruptcy for the Big 3 just like any other company. It'll let one or more of them merge, hopefully come out of bankruptcy leaner and meaner, re-do union contracts, etc. Essentially it's the only way they can really re-organize, a bailout of any kind is really just delaying the inevitable.

The past 2 days have amounted to another huge drop on Wall Street, just about 800 points down, which is about 9-10% off the Dow. Anybody care to guess why? I've said it before, and I stick by it, the market is responding to the upcoming Obama administration and what he says hes going to do to the economy, most of which has shareholders running for the hills. To be fair though, let's take a look at what Bush's Democrat Treasury Secretary already HAS done with the help of Democrats in Congress, such as, panicking during economic hard times, bailing out one company and not the other, not allowing the market to find it's natural bottom, no transparency etc. All of that coupled with what Democrat's are planning to do going forward is turning what was once a relatively small recession into what looks to be a full fledged depression by ushering in what they call "The New, New Deal." Remember how I often lament about how no one really knows their history anymore? Well here's another great example of why history is important and how it is being demonstrably re-written to the point that it turns reality on it's head. FDR's New Deal policies DID NOT get the US out of the Great Depression. Let's take a look at some real facts about that time period; unemployment was nose diving to 20% by 1938 after 7 years of The New Deal. It was a complete failure; WWII got people working again, but it didn't get the economy going again. We didn't recover from the crash of 29' until the late 40's early 50's really, and that had nothing to do with the new deal. In 2004 a study out of UCLA came to a similar conclusion and offered this timely piece of wisdom.

"Why the Great Depression lasted so long has always been a great mystery, and because we never really knew the reason, we have always worried whether we would have another 10- to 15-year economic slump," said Ohanian, vice chair of UCLA's Department of Economics. "We found that a relapse isn't likely unless lawmakers gum up a recovery with ill-conceived stimulus policies."

I only wish that someone had payed some attention to them before we hit a point where we are faced with the option of a "10-15 year economic slump" because of "ill-conceived economic stimulus policies." Indeed everything that has caused this problem so far is a result of what happened in the first part of this century with government intervention. The Federal Reserve being created allowing the government to create fiat money, Fanny Mae was a creation of The New Deal, compulsory unionism and the UAW born in 1935, demanding inflexible work rules for the Big 3 which is now catching up to them, this idea that everyone should own a house and sub prime lending, Social Security and Medicare, Social Security is going to go bankrupt by 2017 when they have to cash in treasury IOU's that nobody knows where the government will get the money, Medicare is already bankrupt, taking money out of the general fund, not from payroll taxes, these are all creations of what? The New Deal. Granted, New Dealism, that last bunch would fall under "The Great Society" which came about in the mid 60's but that was just a reincarnation of The New Deal. If you want to know the reason why we are stuck in an economic malaise right now, it can be summed up in three words. TOO MUCH GOVERNMENT. Do we really need to go into another depression before I'm proven right, or can we just save ourselves a lot of grief and just do what needs to be done now, which is to let the market correct? Only time will tell..

Prop 8 and Marriage:
The topic of Gay Marriage has been making headlines since Prop 8 passed in my home state of California on November 4, amending the Constitution of California to legally define marriage in California as between a man and a woman. To be honest I really don't know what the surprise was or why people were so outraged, seeing as how similar measures had passed before easily, it seems like such a non issue to me. I am not a lawyer, that's my brother and sister in law's profession but here's my layman's take on it. A lot of people liken gay activists struggle to that of the civil rights movement in the 60's, interracial mingling and integration. That analogy is wrong on a number of levels. First off, since the 14th Amendment of the Constitution was ratified everyone was protected under the equal protection clause and almost no one these days thinks that it should be otherwise, and if they do they are in violation of the US Constitution. Why is that important? Well it sets the stage for a fundamental distinction, that of condition vs. behavior. You can't legislate based on the condition of race or gender as those are inherent conditions of a human being. The only thing that you can legislate on is behavior, and whether or not those behaviors are inherent in a persons condition is not important if their actions or behaviors are the only way they are manifest. For the purposes of this example lets take polygamy as an example. A person may claim to have an inherent condition that predisposes him or her to engage in polygamy and a government can not legislate against that condition, but as soon that individual takes action in that regard then it becomes an illegal act. Gay Marriage really does represent a slippery slope, because it is based on the unprecedented premise of allowing a behavior to be treated like a condition inherent in a person, which should certainly not be the case.

To be honest, I look at this issue almost the same as I do abortion. I'm strongly morally and politically against it, but at the end of the day, I'm more worried about bears. (my brother often says this phrase, to denote that getting eaten by a bear is a more pressing matter in his life than whatever we happen to be talking about that is threatening or worrisome) I'm more than willing to leave both issues to the state legislatures and let democracy and federalism do their thing. The thing that is troubling though is the fact that people can not abide by the results of a vote without rioting in the streets. I thought the liberals among us were the enlightened ones, the people who were more tolerant and accepting of things than me. I find it personally amusing that I survived Obama becoming President Elect without rioting in the streets and liberals and gay activists want to live by minority rule. The fact is that we live in a filtered democracy where it comes down to a majority rule. We had minority rule once before, it was called a monarchy, we fought a war over it so we could live by the laws that we choose. We should not trade the minority rule of a King for that of a few judges, the people voted and the Constitution has been amended. Of course there is always a worry about abuse of power but that is why there are checks and balances and ultimately the best form of redress is the ballot box. The marches, protests, vandalism and violence do not speak very eloquently for the proponents of Gay Marriage, because the best way to tell the character of an activist is to observe how they set about attaining their goals. Here's some interesting statistics for you. Over 90% of the black vote went to Obama in California, no surprise right? Here's the shocker, 70% of the black vote went in favor of Prop 8. Now those same blacks who are lauded for bringing Obama to power are being targeted by Rosanne Barr who said, those black voters "showed themselves every inch as bigoted and ignorant as their white Christian counterparts." Not quite the love fest that one would expect after the liberals big win on Nov. 4th huh? One of my favorite talk show hosts Michael Medved wrote an interesting blog on the subject of gay marriage and I wanted to highlight this excerpt.

"The “previously legal same sex ceremonies” (authorized by four justices of the state supreme court in a divided decision a mere five months ago) have not been “outlawed.” Contrary to the tenor of the report, no jack-booted state troopers will come crashing down doors to bust-up the tender and loving commitment ceremonies of same sex couples. Even before the court decision, civil unions were available with identical rights to marriage, and those civil unions are still available after Proposition 8. The voters cast their ballots to eliminate confusion in the Constitution (confusion introduced by meddling jurists), not to interfere with private behavior of any kind. It’s absurd and dishonest to suggest that the proposition “outlawed” anyone’s relationship or expressions of love."

I couldn't agree more. The point is that marriage is a civil institution that has always been between one man and one woman. The fact that gay and lesbian activists want to change thousands of years of tradition for a title, when in California at least they already have the same rights as married couples in Civil Unions borders on baiting of the worst kind. It's a really sad day when I have to quote Sir Elton John, but here we go.

“David and I have a civil partnership in England. We have complete rights between the two of us, we’re protected completely. I think the word ‘marriage’ puts a lot of people off in this country. If they got over the word ‘marriage,’ I think it would be a lot easier for gay people to get together.”

Here's something that you won't here me say every day, Elton John has a point. If rights are all that the gay community are after, then seek them through legislation and leave the institution of marriage alone. If that's not enough, then you aren't really seeking "civil rights" it's more of a vendetta against a society that does not look at your lifestyle as a social norm and that's a whole different animal altogether. In the final analysis, gay rights activists aren't looking for equal rights, they are looking for EXTRA rights. Everyone, gay or straight, above the age of consent, has a right to enter into a marriage contract between one man and one woman. Similarly everyone has a right to enter into a civil union between two consenting adults. What some gay rights activists want is an extra right for two people of the same sex, above the age of consent, to enter into a marriage contract, something that has never happened until the past few decades. Marriage is one of the foundations of our society, and is something worth fighting for in this era of moral relativism, I hope that at least on this one issue we can keep traditional definitions rather than dishing out new politically correct terms to everything that can be done or described under the Sun.

Pirates?! Arr!?:
Okay, by now I'm sure that everyone has heard about the pirates attacking ships off the Somali coast. On Saturday those pirates captured a Saudi Arabian super tanker carrying about 100,000,000 dollars in crude oil and in the following days a number of smaller ships have also been taken. Finally an Indian Navy warship sunk a Somali pirate mothership in the Gulf of Aden. The fascinating part about this is it's connection to American Politics. Am I stretching a connection a bit far here? Perhaps not. Has anyone ever heard phrase, "shores of Tripoli?" President Jefferson dispatched the Marines in the early 1800's to stop the pirates off the Barbary Coast, does that ring any bells? In any event that's how that phrase ended up in the Marines' anthem. We've had problems with pirates going back since day one, in fact pirating is one of only 3 crimes specifically mentioned in the Constitution. By the way, when President Jefferson dispatched the Marines to get the pirates, he did not consult with Congress, nor did he get a UN resolution, (nevermind that the UN was not in existance at the time) he acted as Commander in Chief and he decided to make war, even if Congress was going to declare war. It's called energy in the executive. But wait, I'm just about to get to the best part. What are we supposed to do with the pirates once we get them? Do we charge them with a crime? Well we can't charge them with a crime if the military captures them because under international law you can't send out the military to enforce a criminal code for all practical means and purposes. Are they members of a naval or an opposing military force? Well no, they don't wear a uniform, they don't have insignia, you really can't distinguish them from civilians. One of the reasons why the military wear uniforms is to distinguish themselves from civilians so that when they are shooting people they know they are shooting soldiers and not civlians, because the military is not supposed to target civilians. Well the pirates don't abide by those rules. They don't wear a uniform, they don't target only military members, they are not abiding by the rules of war or international law, so they are not PoW's covered by the Geneva accord, and of course they are not criminal defendants (common criminals can not be apprehended by the military). Is any of this starting to sound familiar yet?! So what should we do with these pirates if and when we get them? How about we try them as unlawful enemy combatants in a military tribunal? But wait, we've had a great debate about that, and the Democrats and liberals all say that the military tribunals that we've used since the founding of the nation are illegal. So now Obama says he wants to shut down Guantanamo Bay and bring those unlawful enemy combatants within the borders of the United States to stand trial in a criminal court. What's more, classified information won't be protected in a criminal trial. But that's neither here nor there. On the subject of the pirates, wouldn't Guantanamo Bay be a great place to detain those pirates and try them in a military tribunal? Too bad Obama and the rest of them want to shut it down as soon as he gets into office. The irony of the parallels were way too delicious to pass up. Figured I'd give you some food for thought, if we get off the politically charged subject of terrorism, can common sense and logic win out where "compassion" and ignorance have largely taken over? I certainly hope so.

An Ending of Sorts:
I know I covered a lot of topics today and probably got more than just a little bit long winded, but perhaps you can draw some comfort in the fact that as long as it takes you to read my posts, it takes me at least 50x as long to write them. That being said I thank you, the reader, for taking the time to struggle through my somewhat random and unfocused writing style to gain what kernels of knowledge that I have to share. If you disagree with any of the points that I post in any of my blogs, feel free to start up a discussion with me. I do not hide from debate, as long as the arguments are well reasoned then to my mind, it would be well worth the time spent. In any event there are a lot of myths and misconceptions to deal with and I hope to eventually address them all through this blog, in this greatest nation on God's green Earth.

Video/Audio Clip(s) of the Entry:

My brother sent me this video clip earlier in this week, and while it is really funny I have to say that I understood his story and his plight a little more than I'd care to admit. We all deal with our demons in our own way, and I wish Mr. Ferguson the best of luck in continuing along the path that he has chosen for himself. That aside, it's the funniest, yet most depressing story I've yet to see.


As you know, I'm a huge fan of live performances, and this man happens to do some of the best in the business. Take the time to watch and enjoy. Don't blame me if you watch it again, and end up buying tickets when he next rolls through your town.. in fact you should probably thank me, it's well worth the investment.

Random Thoughts:
Beautiful days are long gone,
I can't seem to breathe,
Feels like it hasn't been that long,
Since you walked away from me..

Now I can try to act real strong,
But you and I both know,
I still think of you that way,
And you should know, that,

The beautiful lights, the star filled nights,
They don't mean a thing..
'Cause you were my star,
So it don't seem right,
Without you here with me..

Now I can try to act real strong,
But you and I both know,
It's hard for me to say,
You were my soul..

Now I could say that I don't love you no more..
And I could say that I've closed the door, for our love..
And I could tell you I feel it's time for us to go our separate ways..
But baby I just wouldn't be the same..
'Cause girl your love is still on my brain..

Quote of the Entry: “I have little interest in streamlining government or in making it more efficient, for I mean to reduce its size. I do not undertake to promote welfare, for I propose to extend freedom. My aim is not to pass laws, but to repeal them. It is not to inaugurate new programs, but to cancel old ones that do violence to the Constitution or that have failed their purpose, or that impose on the people an unwarranted financial burden. I will not attempt to discover whether legislation is ``needed'' before I have first determined whether it is constitutionally permissible. And if I should later be attacked for neglecting my constituents "interests,'' I shall reply that I was informed that their main interest is liberty and that in that cause I am doing the very best I can.”
- Barry Goldwater, American Politician and Senator (1909-1998)

Tuesday, October 14, 2008

It's the Economy, Stupid!!

First off some housekeeping. I know I had originally set the goal for one post a day, but seeing as how it takes a long time for me to get these things from my mind onto my laptop.. well you get the idea. Next up to bat is an identification of my political party, ideology, leanings or preference if you will. I'd imagine that if you read my last entry you would conclude that I'm a Republican due to the fact that it was a pretty hard hitting post on Senator Obama and his connections to ACORN. Just in case you were even the slightest bit curious about this, if you assumed that I am a Republican you would be wrong. I consider myself a Conservative Independent. I say that because political parties have platforms that they run on and candidates that often deviate from them for better or worse; and I reserve the right to agree or disagree with a person or a piece of legislation not based on a "R" or "D" next to the name. If there is a politician, from the left or the right, has shady dealings and it affects the public welfare, then expect equal condemnation from me. Stupidity should have no shield irregardless of what party they affiliate themselves with. As far as the "conservative" part, well my Christian religion and strong support of Federalism and the Constitution inform my decisions and provide direction for my political compass as you will see if you continue to read this blog. Now onto the real business of this blog..

"It's the economy stupid!!" Yes, I'm lifting this from the 1992 presidential campaign of President Clinton, and yes, it is entirely relevant to whats going on in America today. It surprises me how little people know about economics and government and the relationship between the two. Today I think it would be good to get a little bit of a refresher course.. and away we go!

The Government and YOUR Money:
Lets get one thing clear about Government wealth, all the billions of dollars that the government spends on defense, domestic programs or even simply payroll is derived from exactly one source, the tax payer. This is a fundamental point that often gets lost because it's become almost second nature to gripe about how much money you lose out of your paycheck every two weeks; and hardly ever question with any meaningful resolve whether the government actually needs the money it takes from you or if it's being spent wisely. So irregardless of what a politician says government is going to do to bail out something in the private sector the simple truth of the matter is that it is the ordinary tax payer that is stuck with the bill through higher taxes, a devalued dollar, or lower benefits on civic services, whether they be entitlement programs or necessary functions of government.

The classic example of this is phenomenon is quite appropriately called the Great Depression. When the value of the stock market tumbled and things were being marked to market, almost the same situation we saw happen these past weeks, instead of letting the market find it's natural bottom it was propped up by the government and exacerbated. Instead of a painful but quick correction that would have lasted maybe a year, it became a depression that lasted until WWII. From 1929 - 1932 Presidents Hoover and Roosevelt would constantly be substituting private sector, market based solutions for legislative, government supported action that had a net drag on the economy. Notable among these actions were back breaking tariffs like the Smoot-Holly Act that brought protectionism to whole new levels, along with other domestic taxes that took more money out of the private sector to be spent by all the geniuses in Washington that caused the problem and afterward helped to propagate it in the effort to fix it; again there's an amazing parallel to the current situation in Washington. As if that wasn't bad enough FDR printed more and more money to fund his massive government programs culminating in the New Deal. Now most people who've come through the public school system will be wondering what exactly could be wrong about The New Deal? Wasn't that what helped to end the depression? Wrong. In order to pay for all the programs FDR had to print more money, devaluing the dollar even further in hard economic times. In all likelihood the US would have continued in it's depression if it had not been for WWII. Even if you look at the current US budget of about 3 trillion dollars, more than 50 percent of that is spent on entitlement programs that came out of the New Deal. Notable among these programs are Social Security, which is currently a ticking time bomb in our budget that is going to blow up sometime in the next decade, and Fanny May which already went bust! Surprise, surprise..

We live today in a society where we've become too comfortable. We expect certain things to be rights that we hold as Americans instead of looking at reality and seeing things for what they are, opportunities for success or failure. To break it down even more, it's gotten to the point where everyone is only too happy to privatize profit, but EXPECT the government to socialize the losses. In recent weeks people have been complaining about the "free market" and "unchecked capitalism," but I don't remember hearing anyone complain when their home values and IRA's were going up, up, up like a balloon. That's not even taking into account the fact that it's not the market that creates the mess, it's government involvement in the market that necessitates a correction. Fanny May and Freddy Mac were not a creation of the market, that was government. Sub-Prime loans were not a creation of the market, they were created by government mandate and supported by the government backing the loans, because under ordinary circumstances no good lender would take that risk. In any number of circumstances that you can name "big bad business" there is almost always the hand of government there at the genesis of the problem. Don't get me wrong, I'm not against government; and I certainly don't support anarchy, but lets be realistic, the people that continually create problems shouldn't be trusted to fix those same problems. Least of all without accountability for their prior involvement and perhaps worst of all everything is being done on the tax payers dollar, both the creation and supposed solution of the problem.

Ultimately we should take a few things out of this current financial debacle:

  • The Market reigns supreme, and the Market will punish government intervention.
  • The only way out of a correction is to allow it to go down to it's natural bottom and to work from there.
  • Once lenders know the real assets that others hold they will then feel free to lend again.
  • The 1 trillion dollar bailout was wrong, it will only perpetuate the pain and it is being paid for by the people it will hurt.
  • The Government needs to have a policy of low taxes and reduced spending to create stability and confidence in the markets.

Some of these points I think I illustrated well, some of them not so much.. but I only have so much time and will power to devote to this blog, but I'll definitely get around to explaining anything else I missed. I did want to try to address something else in this blog as well and since I ran out of energy, I suppose cutting and pasting will do. I wrote awhile back on the concept of Federalism and it's importance in American political theory.. well you'll get it when you read it.

Federalism 101:
Federalism, as defined by Wikipedia, "is a political philosophy in which a group of members are bound together with a governing representative head. The term 'federalism' is also used to describe a system of the government in which sovereignty is constitutionally divided between a central governing authority and constituent political unites (like states or provinces). Federalism is the system in which the power to govern is shared between the national & state governments, creating what is often called a federation."

Now that we all have a basic understanding of the word itself, lets get into how this concept relates to the American form of government. As I'm sure you all are aware, before there was The United states of America, there were colonies of Britain that eventually declared their independence together but ruled separately as divided States. It was understood that these states might have matters that related to them all, and so the Continental Congress was set up to mediate and arbitrate these matters, but the framers of the nation wanted to go one step further, to unite these States under one banner, as one Nation. This is obviously an over simplification, but it'll do for the purposes of this blog. Each State already had an existing government, and existing laws, and the citizens and politicians did not want to give these up but grudgingly agreed that a United America was better than the existing status quo. The solution to merging the existing state infrastructure and what would be the new federal government was the idea of "Dual Sovereignty," and indeed this concept was essential to not only the Constitution itself, but the passage of the Bill of Rights as well. It can be found in the 10th Amendment, "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." Essentially the Constitution outlined certain powers to be given to the federal government (ie. taxation, war etc.), and everything else was left to the states to decide. So the states remain sovereign within their borders to create laws and tax except when it interferes with the sovereignty of the nation as a whole. This was perhaps the most important aspect of "checks and balances," the concept which we are all so familiar with, when relating to the division of the federal government and even the state government into three parts. The most important "check" in my opinion is the concept of "voting with your feet." Essentially, when all else fails, and your local or state governments go in a direction you don't like for whatever reason, (be it taxes, over/under regulation etc.) you can move to any state in the union that better suits you while still having your essential liberty and freedoms intact guaranteed by federal government. This has the effect of creating 50 different states with different laws and circumstances all competing for people and business, which mirrors the market system we use for commerce, and ensures that the people have the freedom to choose their lifestyle not have it chosen for them by the federal government. From here you can see an important development, the PEOPLE created the States, and the States in turn created the Federal Government, not the other way around.

To understand the concept of federalism, one needs to understand the Constitution, the very document that created our country. The framers remembered the power of a monarchy and knew that power in the hands of too few men often led to an abuse of that same power. So they wisely divided it up creating what was actually the most inefficient efficient government in the world. Inefficient in that it took many steps to enact new laws so that the people would have a chance to stop it with a vote or by giving notice to their representative. Efficient in the sense that local and state governments were given the bulk of the power, so that the people they were directly governing could give their input and in turn be answered quickly instead of having to go through the bureaucracy to reach the federal government for mediation on local issues. Unfortunately today we have drifted and are continuing to go further away from the ideas this nation was founded on and that deeply disturbs me. The Congress is allowed to pass any law that is deemed "necessary an proper" for the execution of its powers enumerated in the Constitution, but today they only think about whether it will look good politically. Instead Congress should be asking the question, "Should government be doing this? And if so, at what level?" It could be construed that I have a deep hate or mistrust of the federal government. Let me clear that up here, that is certainly not the case. I think that the federal government has a large role to play in national security, foreign policy and guaranteeing free markets both domestically and internationally. A dedication to these things instead of domestic nuances that should be handled by state government would allow the federal government to concentrate on a handful of issues instead of the myriad issues it faces and is failing now. I believe that federalism works, I believe it is a current issue, not one that is dated and belongs in the 18th century, and there is only one man talking about it, explaining it and advocating it, that man has my vote for the Presidency of the United States of America.

Alright, that's it for this, somewhat elongated version of today's entry. I hope you enjoyed it, if you managed to make it here to the end. I have no idea what I'm going to write about tomorrow, or even if I will write one tomorrow.. these things take more out of me than I thought. In any event I thank you for putting up with my convoluted thoughts and writing style and perhaps you'll drop by again for some more fun and excitement with a marginally crazy 20 something.. in this greatest nation on God's green Earth.

Random Thoughts:
Stop right there,
That's exactly where I lost it..
See that line,

Well, I never should have crossed it..
Stop right there,
Well I never should've said that,
It's the very moment that I wish that I could take back..

I'm sorry for the person I became..
I'm sorry that it took so long for me to change..
I'm ready to be sure
I never become that way again..
Cause who I am hates who I've been,
Who I am hates who I've been..

Quote of the Entry: Have you learned the lessons only of those who admired you, and were tender with you, and stood aside for you? Have you not learned great lessons from those who braced themselves against you, and disputed passage with you?
- Walt Whitman (1819 - 1892) US poet