Solvency v. Liquidity

Michael Barone has an article in which he articulates a belief I have long held: We weren’t as rich as we thought we were prior to the current depression. The government tried all the tricks in the playbook to reinflate the bubble, the the good old market would have none of that. I submit that had we not tried all of those old tricks and just let the market fix the problems, we would be in a better position today and not another $5 trillion in debt.

We don’t have a liquidity problem. We have a solvency problem. Until the balance sheets of consumers and the federal/state/local governments get trued up, we won’t get out of this mess. Sellling this solution is difficult, especially with the economic illiterates on the Left and their voting block.

Obama gets bin Laden

News reports have it that Obama authorized a strike against the compound where it was believed that bin Laden was hiding. If the reports turn out to be true, then hats off to Obama for making the call to strike and continuing the hunt for Osama.

Hey, since I agree with Obama on this matter, am I no longer a racist?

Barach Bush

I always find it amusing in politics that those so vo’ciferously opposed to the policies of the then current administration often make those same choices when faced with similar circumstances.

The only difference is that Bush actually consulted with Congress.

Where’s all the outrage?

Too Many Laws & Regulations

Glenn Reynolds has a great Op-Ed in today’s Washington Examiner. His premise is that if you need a lawyer to figure out how to operate in a country’s economic environment, in all likelihood, the country will have limited economic upside. He cites Greece and the number of lawyers per capita and the 19th centry laws still on the books there.

I would extend this further to say this leads to black markets operating outside the legal and tax systems affording the participants therein with no protection from the very laws and regulations of the political establishment. It sets up the classic legal conundrum: how to I get my government/legal system to help me resolve an illegal contract?

The End Game to Democrat’s Healthcare Reform

If you needed any evidence that those of us who claimed the end game was to get rid of private insurance companies, you now have it. Bernie Sanders was on MSNBC, and the host asked: “Senator, how frustrating is this for you to see the bill tied up in a constitutional argument when the provisions that could have been in place, like the public option and other versions of the legislation that were rejected early on by the Democrat leadership, would not have posed any constitutional difficulties?”

Mr. Sanders responded “One of the ways I want to see it improved is to give states flexibility to provide health care to all people, maintaining very, very high standards but doing it in a more cost effective way. And in the state of Vermont, we are moving forward toward a Medicare for all single-payer system. And I hope very much to be able to get waivers from Congress and the White House in order to allow us to do so. Because I think at the end of the day if you’re gonna provide health care to all of our people in a cost effective way you’re gonna have to get rid of the private health insurance companies and put our money into health care, not profiteering, not administration, not bureaucracy.”

Mr. Sanders, instead of getting rid of, as you call it, profiteering, administration, and bureaucracy, you will instead get a bureaucracy that has no cost constraints, is politicized, is not responsible to anyone, can not be fired, and will reduce the quality of care. The healthcare insurance industry has a profit margin of only 6 percent.

Sorry, but I’ll stick with the private insurers. I can fire one and go to another anytime I want. Can’t do that when the government is in charge.

Green Jobs = No Jobs

Edward Glaeser has a column in the NY Times blogs discussing green jobs. This is a surprise? The exporting of manufacturing jobs for established products has been going on for years. Peter Drucker wrote extensively about it in his book Managing for the Future.

We can decide to develop IP or we can decide to manufacture products already developed. I believe there is an advantage to IP, and we should focus on math and engineering to maintain our standing as an economic power.

The Lesson from the Tucson Massacre

Maybe the real lesson from he massacre is that we can’t ever legislate safety.

How many laws does it take to keep guns away from criminals and the mentally infirmed? All that you can pass?

While passing laws may make the politicians feel good about doing something, perhaps, they need to resist the urge next time. Remember, there is nothing that can stop the firm resolve of a person. This can be for the good or the bad.

Maybe citizens will begin to understand that legislation does not solve problems, and they will stop looking towards politicians to solve whatever ails them. People, not legislation, solve their own problems.

Get Ready….Inflation is coming

Daniel Oliver has a great article on Forbes wherein he likens the late 1960s today. He goes on to document some of the similarities between those times and today and the outcomes from the monetary policies of the time. All anecdotal to be sure. However, many of us have been saying for the last 10 years that the path the federal government is on will lead us to economic ruin. Well, I don’t think we’re too far away from that day. Keep an eye on commodity prices.

The Cavalry has arrived

Finally, Nancy has be dethroned. Her tenure will go down in history as the worst of all time. During her reign of terror over the U.S., we have witnessed the greatest decline of our country’s power, wealth and fortitude.

Hopefully, this mark the end of the chickification of our society, and our nation will again grow a backbone.