A Currency All My Own

I really enjoyed Scott’s introduction to different currency types.  It’s a great introduction to the differences between fiat currency, commodity currency, and representative currency. Coincidentally we have implemented a new representative currency in our household in an effort to teach our children about money and work. Personally I think that the commodity backing our currency is the safest commodity around except for it’s non-transferable nature and often short shelf-life. Our currency is backed by goodwill – although there is an exchange rate from U.S. dollars.

As for real world crisis scenarios, my personal philosophy is to do my best to maximize my production ability, build up my stores, minimize my vulnerability, and do what I can to maximize social stability by building up a strong and prepared community around me.

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What Should We Do About It?

Recently someone shared The Obama Deception with me (and others) asking for feedback. Normally I would not take two hours to watch such a video because these efforts rarely shed any real light on their subjects. Mostly, they just generate heat through friction. I decided that in the interest of giving an honest response and out of respect for the person who shared it I would take the time. I’m glad that I did so that I could know what I was responding to, and so that I could share the best 8 seconds of the video which come from nearly the end of the two hours.

My reaction to the whole video is to admit that there is an element of truth in it – as there usually is to reports of conspiracy theories. Also common among such reports is the fact that the reality is generally less sinister than the report would have you believe. It’s always helpful to refer back to Hanlon’s Razor:

Never ascribe to malice, that which can be explained by incompetence. (or similar variations)

I don’t mean to suggest that everyone in our government is incompetent – only that the assumption of malice in everything they do does nothing to help us act appropriately as we learn of poor or misguided actions.

My thought as I viewed the video was to ask myself, "what actions would they have people take?" Similarly, my thought whenever I am acquiring new information is to ask myself "what should I do about it?" The reason that I liked those 8 seconds of video is that they addressed that question. (After two hours I was surprised that they did address my question.)

My experience in asking that question has been that no matter how varied the problems in government, the answer to that question is generally some variation on the same theme. Study the Constitution and promote a culture of individual liberty in our own actions and within our government. In order to do that we have to understand what a culture of individual liberty is. For one thing, it means that we have to let go of the assumption that the government can or should solve many of our social problems. The role of government is not to make sure that the playing field is level – it is to ensure that nobody cheats.

Government cannot ensure a level playing field because each individual is different and not equal. No matter how much I might try to imagine otherwise the fact is that I can’t compete with Alex Rodriguez in baseball, LeBron James in basketball, or Tiger Woods in golf. The government is only there to enforce the rules of fairness. No matter how sophisticated a handicapping system they devise I will never be able to beat Tiger at a fair golf game. The rules are not to make sure that I score somewhere close to my competitor, they are to make sure that Tiger does not choose to take a mulligan or sign an inaccurate scorecard and that I don’t do those things either. On the other hand, the rules do not prevent Tiger from spotting me a shot or two (per hole) in the interest of keeping the game interesting.

In case anyone is wondering, individual liberty does not mean that the course owners can’t enforce a dress code despite the fact that my breaking the dress code does not give me any advantage in the game. In other words, the argument that "I’m not hurting anyone but myself" is not sufficient reason to strike down a law (contrary to what many libertarians might argue). It is acceptable for us to codify into law the values that we want to promote within our society.

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Internal Dissent/Debate

I can’t decide whether it was beyond the scope of what Cameron wanted to write or whether he thinks that the discussion and dissent among the Democratic base really are less prevalent among Republicans. Regardless of which of those options is more accurate, as I read his post I was struck with how I see the exact same kinds of dissent among rank-and-file Republicans that he was describing among Democrats. I see it at the local and national levels and I have seen it in various forms for years.

While I don’t think that I could specify the line between healthy debate and destructive agitation I am confident that a lack of debate is anything but healthy in all or nearly all circumstances. I hope that over time the Republican party coalesces around those positions that I think are the most conducive to good government and good society, but I do not hope that the debate should ever die. I think that when people silence their honest differenced of opinion they open the door for destructive dictatorial types to have undue influence within the political process within the party and within the actual government.

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New Government Website

In keeping with his propensity to launch new .gov websites (e.g. change.gov, recovery.gov, sigtarp.gov) President Obama has launched a new website where he can share some ideas that he knows won’t pass any Congress (Democrat or Republican) no matter how sound those ideas might be. It’s called  AprilFools.gov. He includes ideas that are possible but not very likely, such as nominating cabinet picks without tax problems but the really depressing list is found among the ideas listed under “Impossible” –

  • The Senate refusing to confirm cabinet nominees because of tax (or similar) problems. (Note that those nominees who were not confirmed all withdrew before a vote was ever taken.)
  • Balancing the budget for one month.
  • Ending government waste.
  • Lowering real taxes on the middle class. (He’s proposed it, but he seems to know and accept that it won’t survive the Congerssional budgeting process.)
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Newspaper Survival Tactics

Some people who read what I have written about news media might think that I would like to see the demise of newspapers – they would be wrong. I do think that news organizations generally need to make some adjustments to better serve their purpose (am am assuming a purpose of informing their audience). As I read a story in the Deseret News about their growth I saw two happy bits of information that illustrate the kinds of changes that can help the industry to survive. (I take no position on the Deseret News specifically, it is just the example at hand.)

The first is that it is possible for multiple publications to compete and survive.

Joe Cannon, now in his third year as editor, set out to make the newspaper and its Web site more appealing to Mormon readers. The effort already has made the paper’s Web site unusually active for a news organization its size, with 17 million page views a month. Visitors tend to linger, and half of them are from outside Utah, affirming Cannon’s strategy even as online advertising revenues remain marginal.

His aim is to reach out to "a very large Mormon diaspora across the country" that "puts us into a much larger pond," said Cannon, who was on the board of the Deseret News for a decade before taking over as editor. . .

Cannon said by making news coverage "more Mormon" he means appealing to a market niche larger than Utah instead of just a circulation territory.

This shift in focus at the Deseret News suggests a possible approach that would allows competing papers to coexist within the same market. In some ways it is not the same market because The Tribune is catering to the geographic region while the Deseret News is catering to the dominant culture of the region – even outside the immediate vicinity of the paper. The evidence of this is in the statement that "[t]he Salt Lake Tribune still is profitable, and together with the Deseret News is expected to remain on the short list of two-newspaper towns."

The second piece of good news is that "[s]mall newspapers are generally holding their own because of unique demographics." This seems to validate things I have read suggesting that the quality of papers were falling as they tried to put more emphasis on non-local coverage. To me this would suggest, for example, that the Provo Daily Herald should have it’s "your town" coverage of outlying cities such as Lehi and Eagle Mountain replaced by local papers – possibly with a joint operating agreement between the various Utah County papers. I’ll bet that the Herald and the new local paper(s) would be better able to serve the population of Utah County than the current setup. (Similar to my previous disclaimer -this is nota  complaint against the Herald, but it should offer hope to any areas that feel underserved by it that there is an alternative path available.)

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Change You Can Believe In

Many of the conservative Republicans who opposed John McCain even after he was the last Republican Presidential Candidate of 2008 rightly observed that the differences between McCain and Obama (or McCain and Bush, or Obama and Bush) were largely cosmetic in nature. They were not swayed by the rhetoric of change from the Obama campaign, but they would probably have welcomed a real substantive change even from a Democrat if any were offered. Over at the Financial Times today, Clive Crook captures the truth of this foresight in his column:

Mr Obama’s campaign always exaggerated the difference he would make on foreign policy. His style could hardly be more different from the caricature of US supremacism projected by George W. Bush, but the underlying issues were unlikely to be any easier to deal with. So it has proved. In many areas of foreign and security policy, in contrast to the clear break he is attempting in domestic policy, Mr Obama is mostly rebranding Mr Bush’s approach.

Mr Crook is absolutely right here except in his categorization of government policy as either foreign or domestic. I would say that a more accurate categorization would break foreign policy into military and trade policies while breaking domestic policy into social, monetary, and security policy. Of those categories the difference between Republican and Democratic positions are only cosmetically different on military, trade, monetary, and security policy. The only substantial difference between the two parties recently (if there is any substantial difference to be found) is in social policy.

Once upon a time the Republican party stood for something different from the Democratic party, but somewhere that changed so that functionally (meaning without regard to what both parties say) they all stand for codifying the status quo – whatever that may be on any given day.

I have some advise for a Republican party that is grasping for an identity – stand for something. Become a party of change that voters really can believe in. Everyone knows how hollow it sounds to have Republicans harping about lowering the deficit spending and not propping up "private" enterprise. It does not matter that those are good ideas that are worth standing for. In order to stand for something Republican parties around the nation need to demonstrate by their actions in those areas where they have some power (various governors and state legislatures) that they will act upon the principles that the party is vocal about. As they do that the next step should be to replace most of the Republicans in Congress with a new generation of Representatives and Senators who have not been betraying their avowed principles (or even actively standing in opposition to accepted party positions).

A clean break wtih the past and a clear adherence to party principles will be the only thing that gives the party a chance to re-emerge in its own right. Otherwise the national GOP will have to wait for people to get fed up with the foibles of the Democrats, just as they have becaome fed up wtih insincerity within the Republican ranks.

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Revolving Doors

This year the state legislature tried to close a revolving door. In 2007 Congress tried to close their version of that door. I’m not sure how well either of them will work over time, but if it’s important to close revolving doors, maybe we should try closing another revolving door – the one from one federal elective office to the Presidency.

Admittedly, few sitting legislators have been elected as President, but you have to go back to 1900 to find a presidential election where a Senator did not seek the presidency (there were generally members of the house seeking it as well). Maybe if we placed a two year restriction after leaving a federal legislative office before a person could seek the presidency we might have fewer members of Congress trying to use their offices as stepping stones to the Oval Office.

Of course that would simply guarantee two year presidential campaigns, but at least those campaigns would not include a guaranteed fallback of a seat in the Senate for sitting senators.

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Looking Back

It was interesting to read what Glen Warchol relates today about the first anniverarly of the Texas FLDS raid. Glen gives us the statistics one year later and it is almost identical to what what known weeks before any of the children were returned to their homes. I hope we don’t see such a massive injustice being carried out by the police again – but we probably will even if the FLDS are not the target.

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Federalist Nos. 62 – 63

Federalist Papers 62 and 63 begin examining the Senate, just as the House has been examined in recent papers. I was quickly surprised to find this gem:

So far the equality ought to be no less acceptable to the large than to the small States; since they are not less solicitous to guard, by every possible expedient, against an improper consolidation of the States into one simple republic. (emphasis added)

The notion that the larger states might dislike equal representation has become reality among some citizens of larger states.

I also found proof of how different our political system is now than it was in 1888:

The mutability in the public councils arising from a rapid succession of new members, however qualified they may be, points out, in the strongest manner, the necessity of some stable institution in the government. Every new election in the States is found to change one half of the representatives. (emphasis added)

I would challenge anyone to show me an example of any of our states that regularly replaces one third of its representatives – let alone one half – either at the state level or in their federal delegation each election cycle. Sadly, our increased stability has not decreased the downside of the instability is was to replace:

It will be of little avail to the people, that the laws are made by men of their own choice, if the laws be so voluminous that they cannot be read, or so incoherent that they cannot be understood{or} if they be repealed or revised before they are promulgated . . .

Another effect of public instability is the unreasonable advantage it gives to the sagacious, the enterprising, and the moneyed few over the industrious and uniformed mass of the people. Every new regulation concerning commerce or revenue, or in any way affecting the value of the different species of property, presents a new harvest to those who watch the change, and can trace its consequences; a harvest, reared not by themselves, but by the toils and cares of the great body of their fellow-citizens. This is a state of things in which it may be said with some truth that laws are made for the FEW, not for the MANY. (emphasis added)

Federalist 63 suggests:

the jealous adversary of the Constitution will probably content himself with repeating, that a senate appointed not immediately by the people, and for the term of six years, must gradually acquire a dangerous pre-eminence in the government, and finally transform it into a tyrannical aristocracy.

It is interesting to note that the Senate has come closer to being "a tyrannical aristocracy" since it began to be elected by the people directly than it ever was under the indirect model. Additionally, the change to direct elections of senators leads us to change the following statement:

Before such a revolution can be effected, the Senate, it is to be observed, must in the first place corrupt itself; must next corrupt the State legislatures; must then corrupt the House of Representatives; and must finally corrupt the people at large.

That statement would now read:

Before such a revolution can be effected, the Senate, it is to be observed, must in the first place corrupt itself; must next corrupt the State legislatures; must then corrupt the House of Representatives; and must finally corrupt the people at large.

Sadly we appear to be in the advances stages of the corruption of the people. (Although I admit that the Senate does not appear to be the cause of the corruption, nor was it necessarily propagated in that order.) Nor does the prescribed remedy appear very promising right now:

if such a revolution should ever happen from causes which the foresight of man cannot guard against, the House of Representatives, with the people on their side, will at all times be able to bring back the Constitution to its primitive form and principles.

Federalist 62 also included this statement (which should probably be engraved on the office wall of every national elected official):

It is a misfortune incident to republican government, though in a less degree than to other governments, that those who administer it may forget their obligations to their constituents, and prove unfaithful to their important trust.

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Half Truths

Regardless of what political agenda is being pushed I hate to see people speak or perpetuate half truths. I try very hard not to do that myself. Today I would like to tell the story of two half truths.

The second half truth is the declaration by President Obama that he intends to cut the deficit in half by the end of his first term. His declaration is coupled with him reminding us of a half truth that President Bush put forward throughout his presidency – namely the fact that his military expenditures were largely left out of the regular budgeting process – relying instead on supplemental appropriations to cover the large gaps in funding the massive military missions. This declaration is made as an attempt to hide the fact that he is proposing record deficits for his entire term and there is nothing to suggest that he will ever propose anything approaching a balanced budget even if he serves two full terms.

In response to Obama’s half-truth many Republicans are perpetuating the first half-truth by sharing the following graph (or some similar variation):

Obama Budget

If we were to admit the full truth the graph would look more like this graph (which I created based on the best information I could find online without excessive research):

Obama Budget

Looking at the complete picture we see that the Bush fiscal record is 1) incomplete and 2) abused the budgetary process to obscure the financial cost of our military engagements. We also see another myth being put forward, that the extraordinary 2009 budget is attributed to Obama. The truth is that Obama took office 7 months into FY2009 and  the bulk of that budget was spent by the Bush administration. On the other side, we see that Obama inflated the FY2009 budget by including the appropriations that Bush would have acquired through supplemental appropriations and by frontloading some of his new priorities so that he could claim to cut the deficit in half while running deficits that are larger than anything seen during the Bush administration.

I am convinced that any good goal has as much chance of succeeding while acknowledging the full truth than it has when only presenting half the truth.  am also convinced that while both parties have been outrageously fiscally irresponsible the democratic party is even more bold about pretending that we can put that fiscal responsibility on the shoulders of generations unborn.

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