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Category: Politics (Page 7 of 13)

Politics.

Raise Interest Rates!

Here’s some lateral thinking for you: Since late 2008, the central banks of the world have been pumping hundreds of billions of dollars into the world’s banking and financial institutions in order to stimulate economic activity and head off a recession / depression. This is the right thing to do in a fiat money system when faced with this economic situation. (I’m not going to discuss my views on fiat money, but a fiat money system is what we have so that’s what we’ve got to work with.)

However the worldwide money situation is bizarre right now, upside-down. The stimulus money, which is now some trillions of dollars, has not been stimulating like it ought to. Why? Because banks are not lending the money but are hoarding it. The banks of the world are sitting on well over a trillion dollars and are not lending it out. Why? Because interest rates are extremely low, near zero, and have been low for a long time. The banks are waiting for interest rates to go up which will raise the effective value of the cash they are hoarding and they will start lending again.

I propose that the Federal Reserve should raise interest rates and that this will stimulate lending and thus stimulate the economy. This sounds bizarre but given the upside-down state that the world’s money systems are in, I think it would work.

What do you think?

Elena Kagan Lost My Support

It’s too bad really. Elena Kagan has a brilliant mind and is supremely qualified academically to be a Supreme Court justice, but the confirmation hearings and a reading of some of her opinions reveals a fundamental wrong-headedness about natural rights.

The wordings found in the Declaration of Independence (which is not the basis of law), and the Bill of Rights and Constitution (which are the basis of law) make it very clear that those documents are acknowledging pre-existing rights that all people have. The Bill of Rights and the Constitution do not confer any rights on the people. Those documents prohibit the government from infringing rights the people already have.

“Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.” (The right is preexisting.) “A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.” (The right already exists.) “The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated…” (The right already exists.) And so the wording is throughout the Bill of Rights and Constitution.

The founders were very clear in their position that those rights are inherent in every person–God-given if you prefer. No man and no government has the power to confer those rights, so the founding documents of the United States do not make the error of attempting confer rights. Instead, those documents are the basis of laws that prohibit the government from infringing the rights we as human beings already have.

Yes I know that if you ask people on the street, many of them would agree with the statement: “our rights come from the Bill of Rights.” Well they don’t, and the distinction is critically important for a Supreme Court justice. Elena Kagan does not agree with the position of the founders on natural rights. In various opinions that Kagan has written, she uses the word “confer” with regard to rights protected by the Bill of Rights. She worded her opinions to say that the Bill of Rights “confers” those rights, and this is wrong-headed. It’s so wrong-headed that in my opinion it disqualifies her from serving as a Supreme Court justice, regardless of any other opinions she may have. She doesn’t agree with the fundamental thinking behind our founding documents. Instead believes that government has the power and the ability to confer rights on the people. Government has no such power. Despots and dictators like to believe they have those powers, pretend to have those powers, and use physical force to make it look like they have those powers. Perhaps Ms. Kagan would do better serving on the Supreme Court of a country like Myanmar, Iran, or North Korea, not the United States.

The Gandhi Model will not work in Iran

The Gandhi Model of peaceful, non-violent resistance worked in India and it worked for the civil rights movement in the United States. Unfortunately, I don’t think it will not work in Iran. The Gandhi Model only works if the ruling government is made up of people who have some basis in morality and who place at least some value on human life. But dealing with the rulers of Iran and the Basij is like dealing with a crocodile or great white shark. Passive resistance is useless.

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