What, me worry?

The U.S. dollar has lost 93% of its purchasing power since 1971.

Could this have affected the savings of millions of Americans and foreigners? Is it just me, or is that a significant loss of value?

I've never focused much on economics and high finance, let alone monetary policy and things like the gold standard and the Federal Reserve. Nor have most people, I suspect. Maybe this kind of information's always been out there, or I've heard it but it's not registered. Clearly a liiiiiittle more attention to these difficult matters is in order.

Notwithstanding my own failure to understand important aspects of our security, shouldn't there have been some institutional mechanism that was focused on finding leaks in the boat? Or, were we all so blinded by the heady rocketing of real estate values and cheap off shore consumer goods that we didn't think to ask basic questions?

Churchill complained of not being heard when he raised the alarm about Germany. Apparently no one wanted to hear any alarm raised by anyone, and surely there must have been many. Even President George Bush was ignored when he tried to rein in Fannie Mac, if I've got that right, though his administration will not go down in history as having championed fiscal probity or evidenced that its officials had an understanding of free markets. (The superb Accuracy in Media's AIMReport for November-A 2008 has a great article on "Using Socialism to Save Capitalism.")

The leadership, broadly defined, of this country seems not to understand the concept of the vigorous foot on the brake pedal whether in economic matters, illegal immigration matters, or legal immigration of inassimilable Muslims.

When we really need "change" it's all ahead full on the course of suicide. All problems can be ignored until the very grill of the 18 wheeler crashes through the living room window.

The pleasant breezes of late spring will last forever. This is America, after all, isn't it? Always free, always secure, beloved by all who grace our shores, protected from government excess by a vigorous, independent press and the steel structure of the Constitution.

"Unintended Consequences of the 20th Century and Beyond." By James Quinn, The Market Oracle, 1/8/09.

Forecast: partly cloudy, rampant inflation.

I'm not an economist. I only play one on tv. But does not this portend massive inflation?

It took 200-years for the monetary base to go from $0 to $800 billion, but in just the past 3-months it has grown from around $800 billion to $1.5 trillion, and by the time you read this it will probably be surpassing $1.6 trillion. That's double the number of paper dollars in existence since last summer!

"The Greatest Wealth Transfer in the History of Mankind Starts Now!" By Brent_Harmes, The Market Oracle, 12/19/08.

Simpletons regulating complex systems.

The conceit of modern man is that we are as gods in our ability to forge iron, explore the stars, and devise complex scams like global warming (or its precision concept cousin "climate change"). No problem is beyond our ability to understand and fix. Inconvenient facts about human nature and foreign cultures? Well, then, just pour on the love. Supply the missing hunk of love and stamp out the ignorance of our forebears and everything's jake.

Whatever conservatism is, it must surely be at heart a world view that is founded on a perception of the stupefying complexity of life. In the article I highlight here, James Quinn takes a close look at what happens when people in a simple system attempt to regulate something complex like the U.S. or even the world economy. He's right on the money when he outlines what the inputs for the simple political system are. Suffice it to say they are not inputs that have much to do with the communication of useful data about the economy to the ears and eyes of politicians:

“The law of unintended consequences is what happens when a simple system tries to regulate a complex system. The political system is simple. It operates with limited information (rational ignorance), short time horizons, low feedback, and poor and misaligned incentives. Society in contrast is a complex, evolving, high-feedback, incentive-driven system. When a simple system tries to regulate a complex system you often get unintended consequences.” Andrew Gelman

Andrew Gelman is dead on. He states that the political system is simple. I'd go a step further and say that lifetime politicians and entrenched government bureaucrats are simple. They show no indication of knowledge or expertise in American history or rational financial theory. The President, Congress, Federal Reserve, and Treasury try mightily to direct our economy. It is an impossible task. With a GDP of $14 trillion, there are thousands of inputs and outputs that feed the system. Their hubris leads them to believe that they are in control and can manipulate the gears of capitalism in a way that will produce their desired outcomes. If a desired outcome occurs, it is simply due to dumb luck. The more likely result of their manipulations of our complex system is a set of bigger problems that never occurred to them.

Much more . . . .


"Unintended Consequences of the 20th Century and Beyond." By James Quinn, The Market Oracle, 1/8/09.

Jingoists for the Other.

John Sullivan reflects on the vacuum at the heart of Britain and the betrayal of the British elite:

But modern Britain gave them [radical British-born Muslim youth] a vacuum in those parts of the soul where national identity, patriotism and allegiance take root and usually flourish.

Nature especially abhors this particular vacuum - and in places like the Finsbury Park mosque Islamo-fascism filled it.

Worse, Britain's government, political parties, establishment, major cultural institutions such as the BBC and even the police (now widely derided as "the paramilitary wing of the Guardian") foster this vacuum. They see patriotism as atavistic and discriminatory - and multiculturalism as its cure. At home and abroad, they are jingoists for the Other.

"England's Muslim Spleen." By John O'Sullivan, New York Post, 2/16/09 (emphasis added).

Behind that Muslim smile and handshake.

Now this isn’t Muslim doctrine as elucidated by the Muslim equivalent of the Grand Tetons Church of the Holy Dispensation. No, this is from a veritable Muslim Thomas Aquinas on the issue of what a good Muslim is to harbor in his or her heart when forced to endure the company of the filthy kuffar:

Al-Tabari’s (d. 923) famous tafsir (exegesis of the Koran) is a standard and authoritative reference work in the entire Muslim world. Regarding 3:28, he writes: “If you [Muslims] are under their [infidels’] authority, fearing for yourselves, behave loyally to them, with your tongue, while harboring inner animosity for them. … Allah has forbidden believers from being friendly or on intimate terms with the infidels in place of believers — except when infidels are above them [in authority]. In such a scenario, let them act friendly towards them.”

"Raymond Ibrahim: Islam, War, and Deceit: A Synthesis (Part I)." By Raymond Ibrahim, Jihad Watch, 2/14/09 (emphasis added).

Wife beating. Muslim sacrament.

Henry VIII call your office:

The Pakistan Institute of Medical Sciences has determined that over ninety percent of Pakistani wives have been struck, beaten, or abused sexually — for offenses on the order of cooking an unsatisfactory meal. Others were punished for failing to give birth to a male child. Dominating their women by violence is a prerogative Muslim men cling to tenaciously. In Spring 2005, when the East African nation of Chad tried to institute a new family law that would outlaw wife beating, Muslim clerics led resistance to the measure as un-Islamic.

Don’t hold your breath waiting for enlightened Islamic opinion to step up with a condemnation of the Chadian imams. Sooner expect the Pope to come out against the concept of Immaculate Conception.

To Muslims, wife abuse is holy writ. How else to explain the over 90% statistic above?

"Friends of moderate Muslim leader who beheaded his wife: he's a terrific guy, he must have just, er, lost his head." By Robert Spencer, Jihad Watch, 2/14/09.

But don’t they contribute to the rich tapestry of America?

The U.S. Justice Department also says Mexican gangs are one of the biggest threats to the United States.

"Shadow of vigilantes appears in Mexico drug war." By Reuters, 1/19/09.

Puerto de la Cruz, Tenerife

The end of civilization as we know it.

Specifically, allowing shariah to be implemented in any civilized country will mean the end of civilization as that country knows it.

Islamic law (Shari'a) is categorically and emphatically opposed to ALL 4 axioms of modern civilization.

Read the whole post by this thoughtful Indian blogger who has made an impressive effort to educate himself about Islam.

"Shari'a vs. Civilization." By Dharmaveer, Thoughts of a nationalist Indian, 1/6/09.

Next they’ll be demanding footbaths at the airport.

Islamist authorities in the city [Kismayo, Somalia] stoned a 12-year-old girl to death for adultery in November, although her aunt said she had been raped.

"Somali executed for 'apostasy.'" BBC, 1/16/09.