The so-called recovery is only built on debt and printed cash declares our own Byron King. In the long term, the only option for the government to continue financing it's operations is to print too many dollars. Money printing has it's limits, however. It's Byron's opinion that at some point, perhaps very soon, the government will have to turn to more desperate measures. Namely, capital controls. In the following featured essay, Byron outlines 4 probably ways the government will take your cash and one play you can buy through your broker to prepare today. Read on...
Americans expatriate because they want to get out of the country. Corporations expatriate for similar reasons. Clem Chambers explains...
Say goodbye to your boring morning commute. New technologies are changing the way people drive their cars. It’s making them safer, more fuel efficient, and could reshape the way America builds its roads and cities. The only thing that could stand in the way...
In a 2009 article, the Huffington Post went into considerable detail about the number of people with PhD degrees in economics employed by the Board of Governors of the Federal Reserve System. This is the government’s branch of the Federal Reserve. It is not one of the 12 regional Federal Reserve banks, all of which […]
The U.S. dollar is the dominant global reserve currency. All markets, including stocks, bonds, commodities, and foreign exchange are affected by the value of the dollar.The value of the dollar, in effect, its “price” is determined by interest rates. When the Federal Reserve manipulates interest rates, it is manipulating, and therefore distorting, every market in […]
When the NSA surveillance news broke last year it sent shockwaves through CERN, the particle physics laboratory in Switzerland. Andy Yen, a PhD student, took to the Young at CERN Facebook group with a simple message: “I am very concerned about the privacy issue, and I was wondering what I could do about it.”There was […]
The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the person of inferior emotional balance or the get-rich-quick adventurer. They will die poor.– Jesse Livermore, How to Trade in StocksThe trouble with capitalism’s guardians is that they have no […]
Let’s head back in time…In 2004, a mere decade ago, the US national debt rang the register at $7.4 trillion. That represents “debt per citizen” of over $25,000. You, me, your neighbor, your 4-yr old grandson, you name it and they’re portion of the U.S. debt is $25k.But flash forward to today and you’ll see […]
John Foust, a Democrat running for the 10th congressional seat in Northern Virginia, is — like Gov. Terry McAuliffe and other state Democrats — gung-ho to expand Medicaid. His wife’s position is, shall we say, a bit more nuanced.Foust has slammed his opponent, Republican Del. Barbara Comstock, for her opposition to expansion. He has spoken […]
The midterm election season is upon us, and it’s a tossup whether the Republicans will win the Senate, or if President Obama, seemingly oblivious as conflict flares up around the world, will, through his continuous campaigning, keep Harry Reid in his majority leader seat.The only thing we know for sure is that sociopaths will be […]
Alexander Hamilton was America’s first Secretary of Treasury under President George Washington. When he first entered office in 1789, America was an agricultural nation of just 4 million still broke from its financially costly victory over the British Empire in the Revolutionary War.The states had accumulated relatively massive debts to finance that war, which mostly […]
I was talking with one of my colleagues the other day, and he raised a very interesting question, one that deserves consideration by anyone worried about their digital privacy. He read an article that championed the idea that the more steps one took to protect their privacy by using anonymous Web-browsing tools like Tor, the […]
In the minds of many people around the world, including in the United States, the term “capitalism” carries the idea of unfairness, exploitation, undeserved privilege and power, and immoral profit making. What is often difficult to get people to understand is that this misplaced conception of “capitalism” has nothing to do with real free markets […]
When you type a website address into a browser, you might have noticed that the letters “http” appear at the front. “HTTP” stands for Hypertext Transfer Protocol. In typing a Web address, you are actually sending an HTTP command to transmit that website to you. Hypertext Transfer Protocol is the means by which information is […]
Some people are saying it is just what the doctor ordered. Others are saying that the cure is worse than the disease.The Affordable Care Act? Reengagement in Iraq? Tea Party bullying in the GOP?Not this time. Just as protracted in the corridors of Congress and the White House is the debate over the proposed reform […]
In 2012, money mandarins running the European Union chose stagnation over restructuring. Here’s a consequence of that choice: expectations for a self-sustaining economic recovery keep getting crushed.Two years ago, European Central Bank (ECB) chief Mario Draghi promised to do “whatever it takes” to hold the eurozone together. He bluffed nervous investors into believing in a […]
Picture the scene. It’s 2020. You’re at the checkout in a convenience store with a carton of milk. But you’ve got no cash and you’ve left your cards at home. No problem. You scan your right index finger; the green light flashes. Purchase approved and you leave. Easy.Is this a realistic vision of the future, […]
“In the beginning, all the world was America.” — John Locke“The Garden of Eden was a perfect place,” my friend Manuel explained. “Man had free will. He could live in harmony with nature and God — and everything would be fine. But if he defied God, the stain of original sin would be on his […]
After a week of reckoning about the American oil and gas boom… I’ve got to get something off my chest.I can’t stand it when a coworker takes credit for something I did.Whether it’s a special report I wrote or just a little investing trick I found on my own — if someone takes it and […]
It might sound like the latest new product from Apple, but IPAB is actually the newest major legal challenge to Obamacare.Recently, a three-judge panel in the 9th Circuit Court of Appeals in San Francisco heard arguments about the Independent Payment Advisory Board, or IPAB, a 15-member panel created by the Affordable Care Act and empowered […]
Americans have come to believe that the IRS and the income tax are inevitable parts of our lives. After all, most everyone alive today has lived his entire life under federal income taxation.It wasn’t always that way. For some 125 years, the American people lived without having any tax imposed upon their income.The obvious question […]
Here’s a fun fact: Although we all hate the U.S. dollar, as it continues to hemorrhage wealth, its foothold as the world’s reserve currency isn’t going to disappear overnight.A Russian gas deal with China won’t change that — as we’ll highlight below.But before we get to the nitty-gritty, let’s dive into a story that’s right […]
Franklin Delano Roosevelt famously used the term “forgotten man” in a 1932 speech to describe those at the bottom of the economic pyramid who, he felt, government should aid.But the originator of the phrase “forgotten man” had a whole different meaning in mind. He aimed to expose the seeming good intentions of government to reveal […]
“As the nation’s central bank, the Federal Reserve derives its authority from the Congress of the United States. It is considered an independent central bank because its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government, it does not receive funding […]
The Keynesian disaster recovery plan has been to lower rates, force people to take more risk in search of yield, and entice others to borrow and spend and, magically, more jobs will be created. If people won’t buy stocks, central banks will.Back in 2011, Ben Bernanke, when asked if QE2 was driving up stock prices, […]
In September 2009, when President Obama made a primetime speech pitching his not-yet-passed health care overhaul, he made the following promise: “I will not sign a plan that adds one dime to our deficits — either now or in the future. Period.” To prove his seriousness, he further promised that “there will be a provision […]
Whatever your views on the role of government, one thing is clear: There will be no way to pay for it if the economy doesn’t grow. And I’m not talking by a measly percentage point or two. If we can’t find our way back to 5% annual economic growth or above soon, America’s accumulated federal […]
Politics is a lagging indicator of social-cultural trends. Politics doesn’t lead change; it chases it, incompetently and long after the underlying reality is impossible to deny. This is why it makes no sense to put faith in politics. By the time politics catches up, the rest of the world has moved on.
That said, I’ve just finished what might be the finest book ever written by a sitting member of the U.S. Senate. It is daring. It is intellectually serious. It displays mastery of the subject matter. It makes courageous and counterintuitive claims, such as the need for across-the-board cuts in all spending, including military spending and middle-class welfare, by raising the retirement age. It takes on taboo subjects like the war on terror to call for normalcy and peace.
It is not a perfect book, and all political books have to be graded on a curve. But in all, it represents a fundamental and thoroughly coherent alternative to politics as we know it and have known it for half a century. Despite my best effort to view this as another political tract, I found the book invigorating and even thrilling in ways I had not expected.
The book is The Tea Party Goes to Washington by Sen. Rand Paul. It is his first book since he won the Kentucky race for U.S. Senate, running as a Republican and delivering a crushing blow to his opponent despite amazing smears by the media and very little in the way of support from the GOP itself.
Is this book a harbinger of things to come, a sign that the prevailing political paradigm is collapsing or that the political world is beginning to adapt to the dramatic ideological changes present in popular and intellectual culture? There is no way to know. But I do know that it is highly unusual that a book this bold and heterodox would come from a U.S. senator.
During Rand Paul’s run for the Senate, the media kept describing him as the Tea Party candidate. I’ve never understood this designation. “The Tea Party” seemed like a moniker attached to anyone mad at the system, but it didn’t describe a consistent philosophy. Tea Party rallies could feature speakers both decrying big government and also railing against Medicare and military cuts.
Anger is not the same as an agenda. So what’s up with these people?
This accounts for part of my skepticism on picking up this book. The book begins by explaining the term from his point of view. If he is right, count me in! But even if he is not right, I can now see why he embraced the Tea Party designation. It allowed him to distance himself from politics as usual, whether Republican or Democrat. It allows some degree of independent branding without the caricature that comes with words like libertarian.
He actually spends a substantial part of the book explaining that he actually is a libertarian; that he is the right kind of conservative; that he is a constitutionalist; that he counts the so-called religious right among his allies, but finds no role for the government in pushing religion; that while he embraces the radical traditions of thought of the libertarian idea, he still regards himself as a backer of limited government. If you want to start putting acid tests on his thinking in the book, you will note that he is mixed on the subject of immigration, he is silent on the drug war (but silent is better than endorsement), and he seems to hold out the possibility of some war-making role for the state.
If you are looking for a philosopher king, I would suggest other writers, most of them already dead. If you are looking for teachers, there are others who have a more-consistent outlook. But as statesmen go, Rand Paul is the obvious and natural successor to his father’s vision and political career.
He spends a good part of the book’s first third detailing the human side of campaigning and the sheer wickedness of the smearing press and what Joe Sobran used to call the opinion cartel of the American system of political coverage. Most famously, Rachel Maddow interviewed Rand as if he were a member of the Klan. Rand didn’t catch on that he was being sandbagged until it was too late.
All the details of this encounter are in here, all told in a very human way that provides an inside look into the consequences of daring to depart with convention in American politics.
Once you move past the inside-baseball beginning and the history of the campaign, you get into the substance of this book, and it is here that you find something that is actually extraordinary. This is a political biography that is also a serious and high-level manifesto against big government in all its forms. He begins by taking on domestic spending, blasting favored programs of the left and right, hitting federal regulation of American life in sector after sector, slamming the war on civil liberties in all of its manifestations.
So far, the book appears to be an outstanding presentation of the free-market side of the Republican Party. I’m not sure other Republicans have been this gutsy in attacking the Patriot Act, No Child Left Behind, bailouts of all sorts, and the like. In particular, he has great understanding of the boom and bust cycle and the role of the Fed in creating it. He cites all the right ideas in his interpretation of the 2008 crisis.
But what I found most impressive is his opposition to big government in the area of military and defense. This has been a sticking point among conservative Republicans since at least the mid-1950s, when it first became convention for the political right to back cuts at home and expansions abroad. Ever since the end of the Cold War, there was a chance for a corrective here, but it has been stubborn in coming.
To this day, it remains conventional for those who want domestic cuts to favor expansions of spending on the military — and it appears that the top of the ticket in this election will go this way yet again.
Rand Paul will have nothing to do with this. He makes the link between welfare and warfare.
- “Like every aspect of federal expansion, the rise of our national security state represents government growth without end”
- “The great irony is that conservatives preach individual responsibility and reliance domestically but practice policies abroad that create dependence on foreign aid and dependence on foreign soldiers…. Though an integral part of the conservative creed is to question government, it makes many Republicans nervous to even hint at questioning our foreign policy…”
- “There was a not-so-coincidental correlation between an ambitious foreign policy and astronomical spending that too many conservatives were willing to ignore because they had adopted the same utopian vision as the philosophically liberal neoconservatives.”
He goes on to discuss the foreign policy views of Washington and Jefferson, endorses the ideological vision of Robert Taft from the 1950s, and says that Pentagon spending ought to be treated the same as any other spending program. He even goes further to say that it is impossible to have reduced government at home without taking on the warfare state.
As for wars themselves, he says that he completely opposes the Iraq war. In principle, he backs the Afghanistan war, but then spends pages and pages exposing the graft and ghastliness of the whole enterprise, calling for an immediate end.
Even aside from whatever positions Rand holds on this or that issue, this volume actually contains important research from other sources I had not seen. He offers a startling quotation from Gen. Hugh Shelton, former head of the Joint Chiefs of Staff. He reports that a White House official asked him, long before Sept. 11, if he could float a U-2 plane over Saddam Hussein’s military installations so that it could be shot down and precipitate a war. Shelton declined on grounds that he would not murder an American soldier.
All credit to Rand for reporting the incident at all!
More recently, he has taken up the cause of Internet freedom, opposing intrusive legislation that endangers digital rights. And while he has not come all the way over to opposing “intellectual property” as such, he has been a great opponent of laws that permit website takedowns and SWAT-team tactics against alleged infringers.
If these views end up making advances and triumphing over the leadership in the party, the apple cart of American politics will be completely turned over. No, I don’t hold out much hope that this will happen, and I don’t regard Rand Paul as the savior of liberty in our time. Nor does he believe that he is. Even so, this book is an excellent manual about the truth of government in our time.
It doesn’t give the whole truth, and his naivete that government can be cut and contained, rather than completely dismembered, is frustrating for anyone steeped in the current radicalism of the liberty-minded world. Still, that a book this brassy and bold could come from a sitting member of the U.S. Senate would have been unthinkable a few years ago.
Buy your own copy of The Tea Party Goes to Washington by Sen. Rand Paul now from Laissez Faire Books. This is the book to own and read in order to understand the present and future of American politics.