I'm Glad He's Here

Oops. Turns out the U.S. government will have to borrow $9.3 trillion over the next decade to pay for Obama's inane projects. Right now the national debt stands at just over $11 trillion. Our total Gross Domestic Product equals $14.5 trillion. So if we add all of that new debt to our current debt, we will have a national debt 140% of our total national GDP. That means it would take over an entire year to repay all the government owes; that is over a year of paying for nothing but debt and nothing else. And to bring it a little closer to home: $20.3 trillion in debt equals almost $67,000 per man, woman, and child in this country. I am sure it is all worth it, Barack.

Anatomy of the Bank Run

The case of IndyMac, the largest regulated thrift institution to fail in U.S. history, shows just how fundamentally unsound our government supported banking system is. The fractional reserve banking swindle can only continue so long and I hope the IndyMac failure will open some people's eyes.

Of course Murray Rothbard wrote it best in his article "Anatomy of the Bank Run": "But in what sense is a bank "sound" when one whisper of doom, one faltering of public confidence, should quickly bring the bank down? In what other industry does a mere rumor or hint of doubt swiftly bring down a mighty and seemingly solid firm? What is there about banking that public confidence should play such a decisive and overwhelmingly important role?"

Unfortunately, government bureaucrats are playing the same tune now, blaming Sen. Chuck Schumer for the run on IndyMac. He wrote a letter that "expressed concerns about IndyMac's viability." Schumer is correct to deny that he had any part in this, for as Rothbard noted, how can any business be sound if a mere rumor sparks a total collapse?

But Schumer is wrong to blame this on IndyMac and those "greedy capitalists." The fault lies with the government; without the Federal Reserve and the FDIC the fractional reserve banking scheme couldn't continue. We will only see sound banking and real money when the Fed, the FDIC and all those other bureaucracies are abolished.

Reality Check: The Causes of Inflation

Frank Shostak has written a simple yet brilliant article over at Mises.org explaining the recent increases in inflation. Ben Bernanke and other establishment economists will have you believe that inflation is caused by high commodity prices, such as the record price of oil. Mr. Shostak notes, correctly, that no single commodity can cause a general rise in prices. Only an increase in the supply of money and credit can cause the overall level of prices to rise. I won't try to explain any further; just read Mr. Shostak's uncomplicated and lucid essay on the true causes of inflation.

How Many Americans Have to Die in Iraq?

We should continually ask ourselves that question. Are 4,087 dead and 30,333 wounded not enough to realize there has been enough blood spilled? Remind yourself of the lives lost to this unnecessary occupation by visiting the casualties page at AntiWar.com. We all need a good slap in the face now and then. If that isn't good enough, then have a glance at the faces of those who've died.

Congratulations to Bob Barr

Bob Barr just won the nomination to be the Libertarian Party's 2008 presidential candidate. As a Republican and libertarian I saw Ron Paul as the perfect candidate this election cycle. I still support Dr. Paul and he may still get my vote in November. But there is no chance I will support John McCain. From campaign finance to the war in Iraq to immigration policy McCain has been on the opposite side of true conservatives and libertarians. Bob Barr will offer us another option. He is a former Republican Congressman from Georgia so we know he can get Republican and broad-based support. He can also give an outlet for those who don't want to write in Ron Paul come November.

I still haven't made up my mind who I am voting for, but I can say that Bob Barr is near the top of the list. Congratulations to him and the Libertarian Party. Visit his website to learn more.

Back in New Hampshire!

I was pretty busy at school the past month or so. I just got back to NH on Saturday. Sure is good to be back here relaxing and be done with finals. More posts will soon follow!

The Wonders of Central Banking

Zimbabwe has just released a new $50 million bank note. This comes after it was reported that inflation reached 165,000% in the month of February. Oh what prosperity central banks can bring! I can't wait for the day it costs $15 million to buy a loaf of bread here in the United States.

We should take note of this worst case scenario before we start expanding the powers of the Federal Reserve. Economic central planning doesn't work, even in monetary policy. The Fed hasn't solved our problems this time around and sure didn't do a good job during the Great Depression. In fact, we still have business cycles and inflation. What exactly does the Fed do?

First in the Nation 2012

The RNC rules committee recently voted to 28-12 to set a 2012 primary schedule that affirms New Hampshire's first-in-the-nation status. The proposal still needs an OK from the entire convention this year, but I think this is a good start.

I worked with the Ron Paul campaign in New Hampshire and was a meetup organizer here at school in Ohio. The differences were quite large. The people of New Hampshire were generally more aware and open to Ron Paul's message, while everyone seemed so separated from the process in Ohio.

My anecdotal experience confirms what other people have long said: New Hampshire should have the first primary because we honestly care what is going on, it's who we are. Shouldn't those who care have an influential role in the process? I think so.

The Rise and Fall of Society

I just finished reading Frank Chodorov's book The Rise and Fall of Society. I have nothing but praise for this wonderful book. I recommend it to all interested in libertarian theories of the State, both new and experienced.

Chodorov had a way with language. His eloquent style makes the most mundane and convoluted topics almost elementary. The book is short - only 168 pages - but that fact masks its breadth. His clear writing combined with great fluidity allow him to fit everything into so few pages.

For Chodorov, government is created to ensure the security of a community. Production and commerce bring prosperity, and that right is protected by government. But government ceases to be a protective force when it pushes programs and reforms in the name of "society" and "justice." Chodorov reminds us, however, that society is made of individuals. The predatory State degenerates society and takes power away from the people.

Written in 1959, The Rise and Fall of Society is a classic that is just as important today as it was when it first arrived almost 50 years ago. Buy your copy today at the Mises Institute Store. I promise you won't be disappointed.

Insight of the Week

This week's insight comes from Friedrich Nietzsche: "[E]verything that elevates an individual above the herd and intimidates the neighbor is henceforth called evil; and the fair, modest, submissive, conforming mentality, the mediocrity of desires attains moral designations and honors."

The herd, the collective mentality, is a symptom of today's mass democracy. The superior in ability are not tolerated. Democracy places equality high among the virtues of civil society. Public education is a perfect example. The classroom has become a tool for leveling, not advancement, of students. In commerce, the CEO is derided as a "greedy profiteer" while the parasitic bureaucrats that seek to lessen his production are hailed as selfless givers of social justice.

Clearly our sense of what is moral as been inverted. I really see no other cause than mass democracy and the expansion of the state. Our Constitution doesn't seem to be a limiting factor in the growth of the state. "Equality" has become more important than liberty and freedom. But what are we to do?