The Two-Headed Leviathan

A gigantic monster has taken over our country, a two-headed sovereign that controls our federal, local, and state governments. This two-headed creature, which has one head of a donkey and the other of an elephant, has a monopoly of power in the political economy of these United States.

The most simple and well-known fact about the political economy in America is that it is ruled completely by the same two political factions. This widely known fact itself is often overlooked in most political debates. Almost all federal, state, and even local government officials are members of one of these two parties.  Interestingly, the modern day Democratic Party was referred to as the "Democratic-Republican Party" until the late 1820s.

This sovereign's power lies not just within the government itself, but within the barriers of the two-party paradigm. The barriers of this realm go as far "left" as the mainstream left would go, and as far "right" as the mainstream right would go. Ron Paul's truly conservative view on foreign aid, for example, is outside the barriers of both the mainstream right and the mainstream left, leaving it thus outside the barriers of mainstream politics and not eligible for debate.

"Mommy, Mommy, I can read! Now fork over that cash so I can buy a Wii."

Americans should be open to radically reforming our country's educational system. The current educational system is failing America's kids. Miserably. In fact, generously funded government school systems in major US  cities have on-time graduation rates below 50%

This should be no surprise. Most kids are, after all, too feisty and "real" to buy into the PC cult-phrase of "we're all the same."  They're thus unlikely to conform to the phoniness, and be excited about learning in the left-statist ant farm of establishment public education.

On the vein of new ideas, good for Harvard Economist Roland Fryer Jr. for conducting a "politically incorrect" and creative educational experiment. Fryer paid schoolchildren to learn, with more money given to more successful students. Fryer's critics have decried his methods as contrary to the spirit of government "education" among other inane things.

Wake YAL Talks about the Fed and Kittens

I gave a talk at the April 8 meeting of Wake YAL on the Federal Reserve entitled "A Case Against the Federal Reserve," of which the video is posted below.  My goal was to simply lay out two base arguments against the Federal Reserve -- that it is a root cause of the disastrous boom-bust cycle, and that it is antithetical to freedom.  I finished up the talk with a brief question and answer session.  I definitely am a writer, and not a public speaker, so please excuse my natural goofiness and erratic train of thought.  I've divided the talk up into three short parts for convenience's sake.

Part 1 - Origins of the Fed, Boom-Bust Cycle: 

Central Planning...

...does not work. Despite numerous efforts by the Obama administration to keep the housing market at its bubble level, they have failed. The money has run out. The spigot is dry. 

The S&P/Case Shiller home price indices for January have been on the fall since December. Prices haven't dropped sharply, yet. The only reason for this is the artifical propping up of the housing market that appears to have finally met its match. Scarily enough, however, is how long it will take for prices to correct to the market level: 

Also, looking at the 1990s-era comparison charts below its obvious that even after the main downward thrust has been reached, the housing markets have a long tough slog ahead with the ultimate bottom likely many years out…. Or if we are currently experiencing the Japanese model… decades out.

Residential real estate aren't the only worries. Commerical real estate enjoyed the same sugar high that the residential real estate market experienced. Now it must suffer through the same hangover. No matter how much greasy food the Obama administration gives commercial real estate, if at all, it will surely be no cure. It looks like the day of reckoning is fast upon us. Commercial real estate bankruptcies rose 52% in 2009. There are no signs that things will get better either.

As always, who have been calling this up and coming bust? The Austrians of course.