November 05, 2006
America's Empire of Debt
"Generally, the force of a correction is equal and opposite to the trend that precedes it. And the pain it causes is directly proportional to the pleasant deception that went before it.
"As a practical formula, this does little to help us. We still do not know when or how the correction will come. And, to borrow an idea from Lord Keynes, the deception can last a lot longer than you can remain solvent betting against it. And yet, it is even more dangerous to bet on it.
"America's empire of debt rests on many huge deceptions that we have described in this book:
• That one generation can consume - and stick the next with the bill.
• That you can get something for nothing.
• That the rest of the world will take American IOUs forever - no
• That house prices will forever go up.
• That American labor is inherently more valuable than foreign labor.
• That the American capitalist system is freer, more dynamic, and
more productive than other systems.
• That other countries want to be more like America, even if it is
forced on them.
• That the virtues that made America rich and powerful are no
longer required to keep it rich and powerful.
• That domestic savings and capital investment are no longer necessary.
• That the United States no longer needs to make things for export."
October 28, 2006
Why I Don't Vote Anymore
Silly season comes every other year when Americans get to exercise control over government—or so they think. There is a saying about insanity as doing the same thing over and over again, expecting a different result each time. It took me over twenty years to come to my senses. I am a recovered votaholic. Let me tell you my story. More