Wednesday, September 22, 2010

Sovereign debt crisis

So even Greenspan knows things are thick.
Like others have said, Gold is the canary in the mine and anyone not paying attention to gold will not see the proverbial shit hitting the fan.
To quote from Adam Fergusson's When money dies,
"Money is no more than a medium of exchange. Only when it has a value acknowledged by more than one person can it be so used. The more general the acknowledgement, the more useful it is. Once no one acknowledged it, the Germans learnt, their paper money had no value or use — save for papering walls or making darts. The discovery which shattered their society was that the traditional repository of purchasing power had disappeared, and that there was no means left of measuring the worth of anything. For many, life became an obsessional search for Sachverte, things of 'real', constant value: Stinnes bought his factories, mines, newspapers. The meanest railway worker bought gewgaws. For most, degree of necessity became the sole criterion of value, the basis of everything from barter to behaviour. Man's values became animal values. Contrary to any philosophic assumption, it was not a salutory experience."

Monday, March 8, 2010

Mugabe vs Obama: So what's the difference?

Okay let's look at this critically... Robert Mugabe took land from the white minorities and gave the land to the blacks essentially taking resources from the rich (the most productive in society) and using it to subsidize the poor (the least productive in society). Was he wrong? Obama thought so! But then Super O is gonna tax the rich in order pay for the healthcare of the poor. (taking resources from the most productive to be used to subsidize the lifestyles of the least productive). What's the difference?
Maggie Thatcher once said, "the problem with socialism is that eventually you run out of other people's money!"

Tuesday, February 16, 2010


In recent times, the theory of governance has got a lot of airtime in media the world over. There has been a lot of talk in the circles of political science where everyone keeps espousing the benefits and otherwise of democracy. Things, however, get to a head when people start using the two terms, republics and democracies interchangably. While all republics are democracies, not all democracies are republics.
A democracy refers to rule of the majority. A republican rule is a little more complicated. A republic is a country where justice (esp. protection of a human being’s God given rights) is the main governing principle. In short, a democracy can lean to the right or left depending on what the people decide. However, a republic is necessarily a market economy where the individual’s rights are upheld against aggressors who could be his fellow men or the state.
In a democracy, justice -for lack of a better word- is popular in nature. It’s founded on convention as the masses are not known to draw their conclusions from reason, rather they draw their conclusions from emotion.
Plato rightly observes that democracies, whether direct or representative, are but one step away from anarchy. The reason is simple; the elected representatives then become servants of the people, swayed by public opinion which need not necessarily be right or wrong. Indeed, for people, if opinion is wrong there is no check against popular tyranny and therefore proper democracies suffer from lack of corrective mechanisms.
History have shown us that when people exercise power outside the framework of a republic, there is a gradual decay of respect for the hardworking and the productive as the rulers turn tyrannical in favor of the lazy or the unproductive. The rulers are tempted to use state power to acquire and expropriate the wealth of the productive and hardworking in favor of the lazy and or the unproductive. This is done through unjustified taxation exercised for purposes of redistribution of wealth through welfare programmes.
Democratic governments always tend to populist notions such as welfare. Welfare can only be sustained by taxing those that earn more and distribute these earnings, after paying some bureaucrats in between, to the needy who are, necessarily, unproductive members of society and in some cases lazy members of society. Though well intended, the democratic government’s deviation from the principle of rewarding hard work creates moral hazard. By taxing the more hard working and productive to raise funds to finance the lifestyles of the less productive and, in a lot of cases, the lazy serves to discourage the hard workers from working hard and encourage those getting the freebies to continue doing more of the same.
A republic is designed to protect the individual from the oppressive powers of the state. A republic ensures that the bill of rights is developed in order to identify and protect the rights of the individual from the tyranny of the majority. Note that the bill of rights does not confer rights the individual rights because they are not for anyone to give. Rather, the bill of rights recognizes an individual’s God given rights such as the freedom of conscious, speech, freedom etc. Freedom and rights are not for man to give, but for every man to enjoy.
In conclusion, the position is, in a democracy, as Socrates found out, the tyranny of the majority is a real phenomenon and on the other hand, in a republic, the smallest minority is protected. Further, the economic growth rates of republics and the living standards of republics are much better and more stable than those of simple democracies while the income disparities are also smaller.

Saturday, January 30, 2010

Entrepreneurship according to Austrian Thought

Here is the essence of the Austrian idea of entrepreneurship: it is not merely finding a technology or resource. Rather, it concerns viewing a possible economic use of that resource given existing economic realities and making a judgment about the future employment of those resources to serve human ends. It is in this area that the market excels, and the state so completely fails.

JM Keynes vs FA Hayek rap- Economy Lesson Delivered in Hiphop

I'll let the rappers speak for themselves. Just hit the link...

Saturday, January 23, 2010

The Iraqi Bill of Rights

Hint 1: A Bill of rights doesn't confer rights... it recognizes them. Rights are God given!
Hint 2: A Bill of rights is meant to protect the citizen from the state... nothing more nothing less.
Now enjoy reading the Iraqi Bill of Rights got from this link

July 8, 2005
The Iraqi Bill of Rights is Here!!
Posted by Stephan Kinsella on July 8, 2005 12:39 AM

Thank God! The draft of the Iraqi Bill of Rights just shows America is helping to spawn liberty in the mid-east. For example, the neo-con pro-Israeli hawks will no doubt love these provisision: “Any individual with another nationality (except for Israel) may obtain Iraqi nationality after a period of residency … An Iraqi may have more than one nationality as long as the nationality is not Israeli.”

Sheesh. Other choice provisions, which sound like they were written by the UN [Khawaja on Socialist Welfare Rights; The UN, International Law, and Nuclear Weapons]:

* Social justice is the basis of building the society.
* The state must … implant moral values ….
* The state shall guarantee for women the appropriate services related to pregnancy, childbirth, and the period after childbirth and provide her free health services as well as adequate nutrition while she is pregnant and nursing.
* Iraqi citizens have the right to enjoy security and free health care.
* The state is responsible to support the provision of work opportunities for all qualified and pay monthly salaries for all unemployed for any reason until opportunities are provided in the case of disability, handicap, or illness until the malady ceases.
* There is no tax or fee except by law [note: well, that's a relief!]. The basis for taxes and public expenditures is social
justice [oh, goody, better than some other ... basis].
* All natural resources and the [resulting] revenues are owned by the people. The state shall preserve them and invest them well. [Well, heck, we ought to just require American mutual funds to "invest well". That would be a good idea, no?]
* Citizens may not own, bear, buy, or sell weapons, except by a permit issued in accordance with law.
* The state shall guarantee the realization of social and health insurance for the child from his birth until he completes his university studies.
* The state shall guarantee the realization of the social guarantee necessary for citizens in case of old age, disease, inability to work, or if they are homeless, orphans, widowed, or unemployed. It shall provide them social insurance services and health care and protect them from the talons of ignorance, fear [shades of Woodrow Wilson!], and want, providing them with housing, and special programs to train them and care for them.
* The state and regional governments shall combat illiteracy and provide their citizens with the right of free education at the various stages.
* There is no censorship on newspapers, printing, publishing, advertising, or media [hey, this sounds alright!... but wait: ] except by law. [uh oh]