Saturday, January 28, 2012
Gingrich and Invented Provocation
There are many reasons to believe that Newt Gingrich is not a suitable candidate for President. One of which is this. During the last few days Newt Gingrich has repeatedly referred to the Palistinians as an "invented people."once in an interview and again during the final debate before the Florida Primary. It is instructive to ask, what is to be gained by calling a group of people that undeniably exist as a people today "invented?" The President of the United States will presumably be called upon to mediate between the Palestinians and the state of Israel in the event of peace negotiations. Calling one side at the negotiating table invented is hardly a way to secure ones position as a credible mediator. So why did Mr. Gingrich choose to use such provocative language? There does happen to be an influential group of fiercely pro-Israel Republican voters in Florida that may reward such language. There is also at least one particularly hawkish billionaire that is willing to give $10,000,000 to get Gingrich elected because of his views about Israel and Palestine. It is beside the point wether what he said was true. I'll leave that debate for others. What is hardly debatable is that it is not in the interests of the United States or Israel for a future US president to state in public that he believes that the Palestinians are an invented people. All it does is erode America's future role as mediator. The fact that Mr. Gingrich is making such statements proves only that he is willing to put his electoral success above the interests of his country. I can't think of a better reason to deny him that success.
Friday, January 27, 2012
Bits and Buggy Whips
Matthew Yglesius points out why large content providers will not succeed at stopping the future of copying. Heavy handed tactics aimed at online sharing prevention are just doomed rearguard attempts to maintain obsolete business models. I love Moore's law!
Saturday, January 21, 2012
Not At Fault But...
Mitt Romney says that he pays about 15% in federal income tax. I imagine most of those who will read this pay between 20 and 30 percent. It is not Mitt Romney's fault that he pays such a paltry portion compared to you and me. I'm sure that his accountant broke no laws when he signed his name to Mr. Romney's tax return. Neither can Romney be held accountable for the federal laws that put wealthy individuals like him at such an advantage come tax time. He is not the president yet after all. So why does he seem so embarrassed by the revelation that he pays only 15%. My guess is that having savagely criticized occupy Wall Street, he is rightly uncomfortable to see their complaints starkly validated in his own life story.
Thursday, January 19, 2012
US Debt and the Magic Yard Sale
The US has a large federal debt. Many talking heads would have you believe that this is an existential threat to the republic. But before you go out with your hair on fire and start hoarding canned food and ammunition, here are a few things to consider. A little less than half of the federal debt is owed to one federal agency by another. Almost all the rest is owed to US institutions and individuals. And don't forget essentially all that debt is owed in dollars. So any of the debt that is owned by foriegners represents a promise that the proceeds of that debt will be spent inside the US at some future date. If your personal debt worked that way, about half your payments would be made from one of your bank accounts to another of your bank accounts. You would owe your wife most of the rest of it and any money that you owed to someone else could only be spent at one of your family yard sales. Oh and don't forget you would have a big printer in the basement that could wipe it all away in an afternoon. (Not to say money printing would be a good idea for any macroeconomy under inflationionary pressure, but just saying.) Federal debt is a horse of a very different color than personal debt.
Monday, January 16, 2012
How Inflation is Good for Those with Debt
Here's a basic fact that seems to be getting lost in the present political discussion. Inflation Is good for debtors and bad for creditors. So next time you here someone sell the idea that Inflation is bad for America and Americans, ask yourself who are the debtors and who are the creditors? If I borrow $100 and before I pay off the debt the value of the dollar drops by 50%, then the burden of paying off my debt has fallen by 50%. The value of my creditor's $100 investment has likewise fallen by 50%. The fact that the US and the majority of it's citizens are deeply in debt means that inflation is in our interests.
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