Call Me Stormy

Finding righteous currents in turbulent times

Archive for the tag “debt”

What Is the Gold Standard?

Before 1974, U.S. dollars were backed by gold. This meant that the federal government could not print more money than it could redeem for gold. While this constrained the federal government, it also provided citizens with a relatively stable purchasing power for goods and services. Today’s paper currency has no intrinsic value. It is not based on the value of gold or anything else.

Under a gold standard, inflation was really limited. With floating value, or fiat, currency, however, some countries have seen inflation reach extremely high levels—sometimes enough to lead to economic collapse. Gold standards have historically provided more stable currencies with lower inflation than fiat currency. Should the United States return to a gold standard?

Why the Debt is a Huge Drain

“Politicians are like criminals in Batman comics. They’re a superstitious, cowardly lot. And the minute that they know they’re going to lose elections because they’re spending too much money, they will find their inner cheapskate and start [spending less],” said Reason’s Nick Gillespie during his speech at the Reason Weekend event in Las Vegas.

In “5 Unacknowledged, Unexpected, and Unavoidable Facts about Government Spending and the Economy,” Gillespie says politicians such as President Obama and John Boehner are in denial. Influential economists like Paul Krugman and Lawrence Summers correctly diagnose debt as a problem even as they prescribe more debt as the cure.

The Fiscal Doomsday Machine

David Stockman, former Reagan budget director, explains why he believes the machinery of government is massively failing, in an interview with the Wall Street Journal‘s Jerry Seib.

Our Dark Budgetary Future

Paul Ryan paints a grim picture of America’s fiscal future to support his budget plan at the 2013 Conservative Political Action Conference. H/T Wall Street Journal

Sequestration Panic Time!

The “cuts” under sequestration are, in fact, not spending cuts at all. Even the one department that faces substantive cuts, Defense, will continue to spend at historically high levels. Cato Institute Senior Fellow Michael D. Tanner comments.

Hey Washington, Get Frugal

Regular Americans everywhere are having to tighten their belts and learn to live with less. Kira Davis asks: “Why can’t Washington?”

 

The Democratic Spending Spree

Washington Rep. Cathy McMorris Rodgers, one of the highest ranking Republican women in Congress, says President Obama’s State of the Union speech failed to address two of the most troubling problems facing the nation –how can we create more jobs and control runaway federal spending. She says the President also seemed closed to the idea of negotiating bi-partisan solutions, but she remains hopeful that immigration reform can perhaps be achieved over the next four years. H/T Wall Street Journal

 

California’s Pension Bomb

Once widely viewed as the most beautiful state in the nation, world-renowned for its climate and its beaches, California is now flirting with disaster, seemingly destined to become America’s version of Greece. The state is hurling toward bankruptcy, but still rewards its workers with lavish pensions that the state lacks the resources to sustain. John Stossel discusses this ticking time bomb with Dan Mitchell from the CATO Institute and Los Angeles Mayoral candidate Kevin James.

Why You Should Live Abroad

“I recommend defaulting on the debt for several reasons,” explains best-selling author, investment strategist and libertarian commentator Doug Casey. “Perhaps the best one is that I don’t think it’s correct to make the next several generations of Americans indentured servants.”

His new book, Totally Incorrect, is a collection of conversations with Louis James that explore the ways in which centralized government power threatens cultural and economic progress. In a series of engaging and wide-ranging dialogues, Casey and James talk about everything from the Great Depression to drug use to the Roman Empire.

Reason TV‘s Nick Gillespie sat down with Casey to discuss why America should default on its debt, why he spends most of his time in Argentina these days, and the importance of self-reliance and free-market principles.

Our Coming Economic Collapse

Runaway entitlement programs ensure that a Greek-style economic collapse awaits in our future. It can’t be averted, even if federal taxes are increased to 35 percent of the Gross Domestic Product, up from a current 20 percent of the GDP. Jeffrey Rogers Hummel, a professor of economics at San Jose State University, examines the dynamics propelling us toward the collapse in an interview with Reason‘s Nick Gillespie. “In the short run it’s going to be painful,” says Hummel, “but in the long run, it’ll be a good thing.”

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