Why Charitable Giving is a tax deduction?
Why the complete elimination of the charitable deduction has not been achieved?
Because it is the main tax break employed by Warren Buffett and other wealthy taxpayers.
Total giving to charitable organizations and foundations was $298.42 billion in 2011 (about 2% of GDP) , 90% given by individuals (because corporations have better tax breakers).
Sunday, December 9, 2012
Saturday, December 8, 2012
God bless the printing money machine
God bless the printing money machine
Benefits for not working:
Food stamps:
45.8 million people, 15% of the U.S. population
Average food stamp benefit was $133.80 monthly per person
Total full-year cost = 73,536,480,000
Disability payments:
10.7 million people
The average monthly benefit payment was $1,190
Total full-year cost = 152,796,000,000
Unemployment insurance:
The total number of people claiming
benefits in all programs for the week
ending November 17 was 4,959,240
The average weekly benefit payment was $376.
Total full-year cost= 95,931,538,560
Benefits for not working
are increasing the incentive not to work.
Number of Social Security Beneficiaries
55,404,480
The average monthly Social Security benefit
for a retired worker was about $1,230 at the
beginning of 2012.
Total full-year cost =817,770,124,800
Benefits for not working:
Food stamps:
45.8 million people, 15% of the U.S. population
Average food stamp benefit was $133.80 monthly per person
Total full-year cost = 73,536,480,000
Disability payments:
10.7 million people
The average monthly benefit payment was $1,190
Total full-year cost = 152,796,000,000
Unemployment insurance:
The total number of people claiming
benefits in all programs for the week
ending November 17 was 4,959,240
The average weekly benefit payment was $376.
Total full-year cost= 95,931,538,560
Benefits for not working
are increasing the incentive not to work.
Number of Social Security Beneficiaries
55,404,480
The average monthly Social Security benefit
for a retired worker was about $1,230 at the
beginning of 2012.
Total full-year cost =817,770,124,800
Friday, December 7, 2012
How to move back 15,001 years
Environment and Energy Minister Delphine Batho wants all the lights in shop windows, offices and storefronts across France to be turned off between 1 a.m. and 7 a.m.
Prehistoric people used lamps to illuminate surroundings.
Hundreds of these lamps have been found in the Lascaux caves in modern day France, dating to about 15,000 years ago.
Environment and Energy Minister Delphine Batho wants to move back 15,001 years
Prehistoric people used lamps to illuminate surroundings.
Hundreds of these lamps have been found in the Lascaux caves in modern day France, dating to about 15,000 years ago.
Environment and Energy Minister Delphine Batho wants to move back 15,001 years
Thursday, December 6, 2012
Average salary in Long Beach port versus average salary in China.
Average salary in Long Beach port versus average salary in China.
Clerical workers in Los Angeles, Long Beach ports make an average base salary of $87,000 a year.
When vacation, pension and other benefits are factored in, their annual compensation package reached $165,000 a year.
Port of Los Angeles received from China imports valued at$110,517,865,053 in 2010 (more than 50% of total imports).
Average Salary in the Manufacturing Sector in China is $ 134 monthly.
Clerical workers in Los Angeles, Long Beach ports make an average base salary of $87,000 a year.
When vacation, pension and other benefits are factored in, their annual compensation package reached $165,000 a year.
Port of Los Angeles received from China imports valued at$110,517,865,053 in 2010 (more than 50% of total imports).
Average Salary in the Manufacturing Sector in China is $ 134 monthly.
Wednesday, December 5, 2012
What do you need to finance the welfare state?
What do you need to finance the welfare state?
There is no way to finance the welfare state with taxes and public debt.
In order to finance the welfare state you need the printing money machine.
And the money printed for that machine must be the reserve currency of the world.
There is no way to finance the welfare state with taxes and public debt.
In order to finance the welfare state you need the printing money machine.
And the money printed for that machine must be the reserve currency of the world.
Tuesday, December 4, 2012
What is the human capacity to be lazy, fat, uneducated, homeless, smoker and whatever you want to be and to pay the price for it?
It is freedom.
Freedom is the human capacity to be lazy, fat, uneducated, homeless, smoker and whatever you want to be and to pay the price for it.
Freedom is the human capacity to be lazy, fat, uneducated, homeless, smoker and whatever you want to be and to pay the price for it.
Monday, December 3, 2012
Why university is not a good investment
Why university is not a good investment.
Two-thirds higher education of graduates now take out loans.
9.1% of borrowers in 2011 had defaulted on their federal student loans within two years of graduating.
3% of US GDP is spent in higher education.
Coursera and Udacity are free.
Two-thirds higher education of graduates now take out loans.
9.1% of borrowers in 2011 had defaulted on their federal student loans within two years of graduating.
3% of US GDP is spent in higher education.
Coursera and Udacity are free.
Sunday, December 2, 2012
Elites and bureaucrats are the middlemen in the transfer of resources from the tax payer to the poor
Elites and bureaucrats are the middlemen in the transfer of resources from the tax payer to the poor and vulnerable and the cut that elites and bureaucrats are taking for their job is becoming bigger and bigger.
Saturday, December 1, 2012
Liberty creates more inequality.
People vote indicates a belief, or a whim, but not a choice.
Economic growth is needed to improve the well-being of the poor, and economic growth means instability.
People who cannot govern their own lives cannot afford nothing unpredictable.
Liberty creates more inequality.
Entitlements are becoming the modern social injustice.
Economic growth is needed to improve the well-being of the poor, and economic growth means instability.
People who cannot govern their own lives cannot afford nothing unpredictable.
Liberty creates more inequality.
Entitlements are becoming the modern social injustice.
Friday, November 30, 2012
The best economic indicators
The best economic indicators
The number of days in a week the van of my neighbor is in his driveway.
The number of days the usual perfect used car that my neighbor put on sale for $2.000 stays in the his driveway.
The number of days the foreclosure for sale signs in my neighborhood stay in the yard.
The number of days in a week the van of my neighbor is in his driveway.
The number of days the usual perfect used car that my neighbor put on sale for $2.000 stays in the his driveway.
The number of days the foreclosure for sale signs in my neighborhood stay in the yard.
Thursday, November 29, 2012
Pushing for raising taxes and trying to avoid tax increase
At the Democratic National Convention, Costco
co-founder and former CEO Jim Sinegal provided
his endorsement of President Obama.
He also pushed for raising
the top marginal rates in the federal income tax code.
Months later Jim Sinegal and the rest of the Costco
board voted to give themselves a
special dividend to avoid Mr. Obama's looming
tax increase.
co-founder and former CEO Jim Sinegal provided
his endorsement of President Obama.
He also pushed for raising
the top marginal rates in the federal income tax code.
Months later Jim Sinegal and the rest of the Costco
board voted to give themselves a
special dividend to avoid Mr. Obama's looming
tax increase.
Tuesday, November 27, 2012
Create theories out of practice through a trial and error proces
Create theories out of practice through a trial and error process.
Create and destroy in order to grab opportunities.
If you want to get something you must take risk.
Create and destroy in order to grab opportunities.
If you want to get something you must take risk.
Monday, November 26, 2012
To Whom Does The U.S. Government Owe Money?
The Biggest Holders of US Government Debt
1. Social Security Trust Funds
U.S. debt holdings: $2.67 trillion
2. U.S. Federal Reserve
U.S. debt holdings: $1.659 trillion
3. China
U.S. debt holdings: $1.169 trillion
4. Savings Bonds & Other Investors
U.S. debt holdings $1.102 trillion
With the most recent numbers from December
2011, this extremely diverse group includes
individuals, government-sponsored enterprises,
brokers and dealers, bank personal trusts, estates,
savings bonds, corporate and non-corporate businesses
for a total of $1.102 trillion.
5. Japan
U.S. debt holdings: $1.083 trillion
6. Pension Funds
U.S. debt holdings: $903.4 billion
7. Mutual Funds
U.S. debt holdings: $797.9 billion
Including money
market funds, mutual funds and closed-end funds,
this group of investment funds manages approximately
$797.9 billion of U.S.
8. State and Local Governments
U.S. debt holdings: $444.6 billion
9. Medicare Trust Funds
U.S. debt holdings: $324.57 billion
The trust funds supplying capital to Medicare -
the Hospital Insurance Trust Fund and the Supplementary
Medical Insurance Trust Fund - hold approximately
$324.57 billion in U.S. Government debt, according
to the Treasury. The Hospital Insurance Trust Fund
draws revenue mostly from payroll taxes and pays for
Medicare Part A benefits, including inpatient
10. Depository Institutions
U.S. debt holdings: $286.3 billion
This group includes commercial banks,
savings banks and credit unions and in
2011 holdings nearly tripled from the 2008
low of $105 billion.
European banks hold some €1.6 trillion
($2.1 trillion) in sovereign bonds.
11. Oil Exporters
U.S. debt holdings: $254.5 billion
Ecuador, Venezuela, Indonesia, Bahrain, Iran,
Iraq, Kuwait, Oman, Qatar, Saudi Arabia, the United
Arab Emirates, Algeria, Gabon, Libya, and Nigeria.
The group combines for a total of $254.5 billion,
12. Insurance Companies
U.S. debt holdings: $253.7 billion
According to the Federal Reserve Board of Governors,
insurance companies hold $253.7 billion in Treasury
securities. This group includes property-casualty
and life insurance firms.
13. Brazil
U.S. debt holdings: $237.4 billion
14
Caribbean Banking Centers
U.S. debt holdings: $224.8 billion
15
Taiwan
U.S. debt holdings: $184.4 billion
16
Russia's $146.7 billion and
17
Hong Kong’s $138.8 billion.
2671
1659
1169
1102
1083
903
798
445
324
286
254
254
237
225
184
146
139
TOTAL: 11879
As of 15 November 2012, debt held by the
public was approximately $11.45 trillion
or about 72% of GDP. Intra-governmental
holdings stood at $4.83 trillion, giving
a combined total public debt of $16.28 trillion
1. Social Security Trust Funds
U.S. debt holdings: $2.67 trillion
2. U.S. Federal Reserve
U.S. debt holdings: $1.659 trillion
3. China
U.S. debt holdings: $1.169 trillion
4. Savings Bonds & Other Investors
U.S. debt holdings $1.102 trillion
With the most recent numbers from December
2011, this extremely diverse group includes
individuals, government-sponsored enterprises,
brokers and dealers, bank personal trusts, estates,
savings bonds, corporate and non-corporate businesses
for a total of $1.102 trillion.
5. Japan
U.S. debt holdings: $1.083 trillion
6. Pension Funds
U.S. debt holdings: $903.4 billion
7. Mutual Funds
U.S. debt holdings: $797.9 billion
Including money
market funds, mutual funds and closed-end funds,
this group of investment funds manages approximately
$797.9 billion of U.S.
8. State and Local Governments
U.S. debt holdings: $444.6 billion
9. Medicare Trust Funds
U.S. debt holdings: $324.57 billion
The trust funds supplying capital to Medicare -
the Hospital Insurance Trust Fund and the Supplementary
Medical Insurance Trust Fund - hold approximately
$324.57 billion in U.S. Government debt, according
to the Treasury. The Hospital Insurance Trust Fund
draws revenue mostly from payroll taxes and pays for
Medicare Part A benefits, including inpatient
10. Depository Institutions
U.S. debt holdings: $286.3 billion
This group includes commercial banks,
savings banks and credit unions and in
2011 holdings nearly tripled from the 2008
low of $105 billion.
European banks hold some €1.6 trillion
($2.1 trillion) in sovereign bonds.
11. Oil Exporters
U.S. debt holdings: $254.5 billion
Ecuador, Venezuela, Indonesia, Bahrain, Iran,
Iraq, Kuwait, Oman, Qatar, Saudi Arabia, the United
Arab Emirates, Algeria, Gabon, Libya, and Nigeria.
The group combines for a total of $254.5 billion,
12. Insurance Companies
U.S. debt holdings: $253.7 billion
According to the Federal Reserve Board of Governors,
insurance companies hold $253.7 billion in Treasury
securities. This group includes property-casualty
and life insurance firms.
13. Brazil
U.S. debt holdings: $237.4 billion
14
Caribbean Banking Centers
U.S. debt holdings: $224.8 billion
15
Taiwan
U.S. debt holdings: $184.4 billion
16
Russia's $146.7 billion and
17
Hong Kong’s $138.8 billion.
2671
1659
1169
1102
1083
903
798
445
324
286
254
254
237
225
184
146
139
TOTAL: 11879
As of 15 November 2012, debt held by the
public was approximately $11.45 trillion
or about 72% of GDP. Intra-governmental
holdings stood at $4.83 trillion, giving
a combined total public debt of $16.28 trillion
Saturday, November 24, 2012
Walmart applicants for job
Walmart has 1.3 million associates and it had five million applicants for jobs last year and 20% of those applicants had previously worked for the company.
Walmart's average sale Associate makes $8.81 per hour, according to IBISWorld.
The average wage of a Walmart associate is $11.75 an hour, according to Dan Fogleman, a spokesman for Walmart,
Walmart says the national average hourly wage for its full-time workers is $12.40.
Walmart is the biggest employer in the U.S. after the Department of Defense.
The average salary at U.S. Department of Defense is $63,846 according to careerbliss.com.
In 2011, federal civilian workers had an average wage of $84,671, according to data from the U.S. Bureau of Economic Analysis.
Walmart's average sale Associate makes $8.81 per hour, according to IBISWorld.
The average wage of a Walmart associate is $11.75 an hour, according to Dan Fogleman, a spokesman for Walmart,
Walmart says the national average hourly wage for its full-time workers is $12.40.
Walmart is the biggest employer in the U.S. after the Department of Defense.
The average salary at U.S. Department of Defense is $63,846 according to careerbliss.com.
In 2011, federal civilian workers had an average wage of $84,671, according to data from the U.S. Bureau of Economic Analysis.
Friday, November 23, 2012
58% of the 1.8 million borrowers whose student loans were began to be due in 2005 hadn't received a degree
According to a 2011 study by the Institute for Higher Education Policy,
a Washington, D.C.-based research firm, 58% of the 1.8 million
borrowers whose student loans were began to be due in 2005 hadn't
received a degree. Some 59% of them were delinquent on their loans or
had already defaulted, compared with 38% of college graduates
Saturday, November 17, 2012
Debt burden—which exceeds 100% of GDP in U.S
On 15 November 2012, debt held by the public
was approximately $11.45 trillion or about
72% of GDP. Intra-governmental holdings stood
at $4.83 trillion, giving a combined total
public debt of $16.28 trillion.
GDP was estimated to be almost $16 trillion in 2012.
was approximately $11.45 trillion or about
72% of GDP. Intra-governmental holdings stood
at $4.83 trillion, giving a combined total
public debt of $16.28 trillion.
GDP was estimated to be almost $16 trillion in 2012.
Mental inequality versus social inequality
Mental inequality is something that government cannot do anything about
Friday, November 16, 2012
Individual responsibility
Individual responsibility is the capacity to recognize and accept the consequences of a fact made freely.
Thursday, November 15, 2012
Turnout US presidential election 2012
Turnout dropped by 7.9 million voters, falling to 123.6 million this
year from 131.5 million in 2008. This is the first decline in a
presidential election in 16 years. Only 51.3% of the voting-age
population went to the polls.
Monday, November 12, 2012
They're basically just looking for a steady job as their own boss.
Less than a quarter of America's 27 million small businesses have
employees. An even smaller portion grow beyond 20 employees. And many of
them don't want to. New research from the University of Chicago finds
that 75% of small-business owners aren't aiming for growth at all.
They're basically just looking for a steady job as their own boss.
Friday, November 9, 2012
The 2012 presidential election results in the highest income counties in the United States:
The 2012 presidential
election results in the highest income counties in the United
States:
Mitt
Romney/Paul Ryan - 47%
|
R
|
||
Barack
Obama/Joe Biden - 52%
|
D
|
Mitt
Romney/Paul Ryan - 40%
|
R
|
||
Barack
Obama/Joe Biden - 59%
|
D
|
Mitt
Romney/Paul Ryan - 29%
|
R
|
||
Barack
Obama/Joe Biden - 69%
|
D
|
Friday, November 2, 2012
Societies that herd livestock in rugged terrain tend to develop a “culture of honor.”
Anthropologists have long noted that societies that herd livestock in
rugged terrain tend to develop a “culture of honor.” Since their wealth
has feet and can be stolen in an eye blink, they are forced to deter
rustlers by cultivating a hair-trigger for violent retaliation against
any trespass or insult that probes their resolve. Farmers can afford to
be less belligerent because it is harder to steal their land out from
under them, particularly in territories within the reach of law
enforcement.
Sunday, October 28, 2012
Jobs Shortage and Retired Shortage
Jobs Shortage and Retired Shortage
There is a Jobs Shortage in nasty jobs.
Characteristics of nasty jobs:
Three-Week Shifts of 12 hours a day
Temporary jobs
Hardworking jobs
Commodity business
There is a Retired Shortage in fancy people
Characteristics of retired fancy people:
Their financial adviser sends them about
$6,000 a month, generated from their investments.
They also collect Social Security and small pensions.
An example of the logical conundrum between quality service and free service:
Some European businesses prefer to use U.S. forecasts
because they are free, while some U.S. businesses
spend large sums for European forecasts because they
are better.
Friday, September 14, 2012
The artificial money
The artificial money, prompting low interest rates, is not being
utilized because people are still in the process of repairing their
balance sheets. The artificial excesses are simply being circulated
through loans from institution to institution to produce artificial
gains that amount to more money with nothing to back it up.
Wednesday, September 12, 2012
At the same time the government is running trillion-dollar annual deficits
When the Fed must, in Chairman Ben Bernanke's words, begin "removing
liquidity," by selling bonds, the external debt of the federal
government will rise and the Treasury will then have to pay interest on
that debt to the public. Selling a trillion dollars of Treasury bonds on
the market—at the same time the government is running trillion-dollar
annual deficits—will drive up interest rates, crowd out private-sector
borrowers and impede the recovery. Debt-service costs to the Treasury
will spiral as every 1% increase in federal borrowing costs add $100
billion to the annual budget deficit.
Thursday, June 7, 2012
Freedom and security never walk together.
Freedom and security never walk together.
Protection has always liberty restrictions.
Economic security with economic self-determination is a fantasy
Sunday, May 13, 2012
Printing money to gamble with derivatives indexes
Printing money to gamble with derivatives indexes focused on
investment-grade and junk-bond corporate debts is a smart way to transfer money
from tax-payers to financial institutions.
Sunday, April 29, 2012
Interesting, successful people rarely lead orderly, linear lives.
Read obituaries. They are just like biographies, only
shorter. They remind us that interesting, successful people rarely lead
orderly, linear lives.
Sunday, April 22, 2012
Sharing and competition
Life is not about sharing.
It is about competition.
Life is incredible competitive.
The chorus of people telling you the opposite are hypocritical liars.
The tough realities of competition for success create winners and losers.
The reality is that the competitive world is every year harder.
Thursday, March 8, 2012
Demographic trends will increase portfolio returns.
Good News for Boomers
Demographic trends will increase portfolio returns.
As retirees live longer and keep stocks and bonds , there will be younger investors trying to buy those securities, keeping prices up.
Meanwhile, weak demand from boomers and a big supply of unemployed workers will bring down the prices of goods and services the boomers need.
Demographic trends will increase portfolio returns.
As retirees live longer and keep stocks and bonds , there will be younger investors trying to buy those securities, keeping prices up.
Meanwhile, weak demand from boomers and a big supply of unemployed workers will bring down the prices of goods and services the boomers need.
Tuesday, March 6, 2012
When something of value is free
When something of value is free, it runs out fast and only the well connected get any.
Interest rates at zero cause cheap credit for those with special access but shortage for small business.
Keeping rates artificially low makes the bond market useless as indicator of risk across the economy.
Sunday, January 15, 2012
Only a growing unequal society can take care of health care, education and retirement.
Only a growing unequal society can take care of health care, education and retirement.
You can buy income security and a sense of well-being and accomplishment by working harder and being self-employed.
Wealth redistribution fight income inequality however income inequality is the son of economic growth and economic growth is a prerequisite for income gains in the poor.
You can buy income security and a sense of well-being and accomplishment by working harder and being self-employed.
Wealth redistribution fight income inequality however income inequality is the son of economic growth and economic growth is a prerequisite for income gains in the poor.
Thursday, July 23, 2009
Everyone should pay for his own health care.
Everyone should pay for his own health care.
Responsibility is the only valid health care system.
In the same way that everybody knows that each one pays for his food, everyone should pay for his own health care.
Responsibility is the only valid health care system.
In the same way that everybody knows that each one pays for his food, everyone should pay for his own health care.
Sunday, March 29, 2009
Health care
Health care would be less expensive if everyone were covered. But reducing costs while increasing access are irreconcilable issues.
The truth about what "universal" coverage really means: Runaway costs followed by price controls and bureaucratic rationing.
The truth about what "universal" coverage really means: Runaway costs followed by price controls and bureaucratic rationing.
Thursday, March 26, 2009
Government interference in the banking sector
In the absence of central bank control over the banking system, competition between private banks in the market would tend to limit credit expansion (and thus remove the source of the business cycle aberrations).
"Government interference" in the banking sector is responsible for credit expansion.
The US is repeating mistakes from the 1930s, such as wide-ranging stimuluses,
protectionist tendencies and appeals, the Buy American campaign, and so on
Great Depression was caused by too much spending, rather than too little.
"Government interference" in the banking sector is responsible for credit expansion.
The US is repeating mistakes from the 1930s, such as wide-ranging stimuluses,
protectionist tendencies and appeals, the Buy American campaign, and so on
Great Depression was caused by too much spending, rather than too little.
Friday, March 13, 2009
Stimulus bill.
The economics don't matter, because the real political purpose of the bill is to neutralize this issue until the economy recovers on its own. Much of its spending is a massive cash transfer to the party's union constituencies; a percentage of that cash will flow back into the 2010 congressional races. The bill in great part is a Trojan horse of Democratic policies not related to anyone's model of economic stimulus.
Friday, February 13, 2009
Any endeavor organized by pressure groups attracts mediocrities
The only protection we have against a government-granted monopoly and government funding is that any endeavor organized by pressure groups attracts mediocrities, and the organization collapses through the weight of its own incompetence."
Sunday, February 8, 2009
Who said that?
"There are serious concerns about transparency and accountability in the government...confusion about the goals of the government, and a deep skepticism about whether we are using the taxpayers' money wisely."
Who said that? : Treasury Secretary Timothy Geithner.
Who said that? : Treasury Secretary Timothy Geithner.
Wednesday, January 28, 2009
The Fed can keep printing money
There's more mayhem to come, but don't worry, the Fed can keep printing money and buying private assets.
No wonder the world is scared half to death. The Fed has been creating new vehicles right and left for nearly 18 months, so the problem isn't a lack of liquidity.
The problem is that too few people want to use the liquidity the Fed is creating. They don't want to lend money, or take risks, in part because they never know what Mr. Bernanke and the government might do next.
No wonder the world is scared half to death. The Fed has been creating new vehicles right and left for nearly 18 months, so the problem isn't a lack of liquidity.
The problem is that too few people want to use the liquidity the Fed is creating. They don't want to lend money, or take risks, in part because they never know what Mr. Bernanke and the government might do next.
Sunday, January 25, 2009
The new money the Fed has pumped into the economy
The new money the Fed has pumped into the economy to replace the financial-sector liquidity wiped out by the collapse of the bubble has to go somewhere.
It has to end up in someone's bank account .
When we contemplate helping others, whether through volunteer organizations or welfare-state transfers, we are less likely to provide for -- and more likely to abandon -- those who are unlike ourselves.
It has to end up in someone's bank account .
When we contemplate helping others, whether through volunteer organizations or welfare-state transfers, we are less likely to provide for -- and more likely to abandon -- those who are unlike ourselves.
Thursday, January 15, 2009
Abolishing the income tax
Abolishing the income tax. Now that really would be a genuine economic stimulus.
Sunday, December 28, 2008
The American economy is broken
The American economy is broken and there is nothing the government can do to fix it. However, the free market does have a cure: it's called a recession, and it's not fun, easy or quick. But if we put our faith in the power of government to make the pain go away, we will live with the consequences for generations.
Something cannot be effortlessly created from nothing.
When the government spends, the money has to come from somewhere. If the government doesn't have a surplus, then it must come from taxes. If taxes don't go up, then it must come from increased borrowing. If lenders won't lend, then it must come from the printing press, which is where all these bailouts are headed. But each additional dollar printed diminishes the value those already in circulation. Something cannot be effortlessly created from nothing.
Tuesday, December 23, 2008
The importance of things like enterprise, hard work and self-reliance
America was a place where opportunity and risk were both much higher than on early 21st-century.
The bold and enterprising could succeed big, or fail big,without fear of confiscatory taxes or hope of government bailouts.
Getting ahead called for a keen mind, a strong back, and a willingness to work hard and take chances; opportunities to succeed by manipulating laws and regulations were harder to come by.
The importance of things like enterprise, hard work and self-reliance was America.
The bold and enterprising could succeed big, or fail big,without fear of confiscatory taxes or hope of government bailouts.
Getting ahead called for a keen mind, a strong back, and a willingness to work hard and take chances; opportunities to succeed by manipulating laws and regulations were harder to come by.
The importance of things like enterprise, hard work and self-reliance was America.
Monday, December 22, 2008
The Federal Reserve
The Federal Reserve is in the business of central planning instead of central banking.
The Fed's assets have grown much faster than its capital.
The Federal Reserve is itself a highly leveraged financial institution.
The flagship branch of the 12-bank system, the Federal Reserve Bank of New York, shows assets of $1.3 trillion and capital of just $12.2 billion.
Its leverage ratio, a mere 0.9%, is less than one-third of that prescribed for banks in the private sector.
The Fed's assets have grown much faster than its capital.
The Federal Reserve is itself a highly leveraged financial institution.
The flagship branch of the 12-bank system, the Federal Reserve Bank of New York, shows assets of $1.3 trillion and capital of just $12.2 billion.
Its leverage ratio, a mere 0.9%, is less than one-third of that prescribed for banks in the private sector.
Saturday, December 20, 2008
The freedom of the marketplace
The federal government is proliferating in the economy at a logarithmic rate.
The freedom of the marketplace is still the only effective mechanism for eliminating poor business practices, identifying productive investment, and providing long-term growth.
The freedom of the marketplace is still the only effective mechanism for eliminating poor business practices, identifying productive investment, and providing long-term growth.
Thursday, December 18, 2008
The difference between a Ponzi scheme and the Social Security
What is the difference between a Ponzi scheme and the Social Security?
The firts one is illegal and the second one is legal.
The firts one is illegal and the second one is legal.
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