Almost 100 years ago the nation made a decision to permit bankers to control the nation's money supply. This did not have to be, and it does not have to be now. The principle of "easy money" had been publicly rejected in 1896, when William Jennings Bryan, who favored "free silver", lost to William McKinley, who continued the hard money policies of the late nineteenth century, the period of America's greatest economic growth and a period of deflation.
In 1913, Woodrow Wilson established the Federal Reserve Bank under the guidance of JP Morgan's associates (Morgan had died that year, and some argue that the Federal Reserve is just an institutional embodiment of JP Morgan himself). A number of leading bankers associated with Morgan had met in 1910 on Jekyll Island in Georgia and drafted a plan that served as the basis for the Federal Reserve Bank. These bankers included "Frank A. Vanderlip of National City (now Citibank), Henry P. Davison from the Morgan Bank and Paul Warburg of the Kuhn, Loeb investment house."*
Banks need not be granted authority over the creation of money. Instead, there could be a steady increase in the money supply created by general distribution to the public or to borrowers selected by the Treasury Department or private investors. Alternatively, for the nation's most productive years the gold standard was in place. Yet another alternative would be competitive money supplies which existed before the National Banking Act passed during the Civil War. There is no empirical evidence that any of these alternatives would work worse than the current system.
The current system is based on the premise that professional bankers are better equipped to assess investment risk than would be the alternatives, and that their wisdom is greater than the market-neutral approach of a gold standard or broad distribution of new money.
Recent events contradict this claim. From what I can see of the descriptions of what has gone on in the banking world, the banking world is dominated by nincompoops who are worse-equipped to allocate credit than would be a random sample of Americans taken from the Yahoo! phone directory.
The story that I have heard is that first, bankers were willing to lend to non-credit-worthy borrowers because (a) real estate never goes down and/or (b) because the Democrats said they should. Now, I hear, despite a doubling of the money supply, the bankers are afraid to lend money to each other or to borrowers because they made the bad decisions a few years ago. This phenomenon is said to occur despite the ability and availability of loan money directly from the Federal Reserve Bank itself. In other words, the Fed has created a huge amount of new money, is willing to lend to the banks directly, and yet the banks are afraid to borrow. A few years ago, they were willing to lend $200,000 to hair dressers making $8 per hour. Stupidity on this scale exceeds even the market frenzy concerning the Internet stocks that the Federal Reserve and the banking system also created.
This is not a monetary system. This is a sacking of the monetary system by a federally enforced idiocracy.
Perhaps it is time to reconsider the odd claim that bankers are better equipped to decide on how to manage the nation's money supply than would be a neutral, market-based rule like a gold standard. As an institution, the Federal Reserve Bank has come to look like a barbaric relic, and its officers and owners among the commercial banks an idiocracy.
*William Greider, Secrets of the Temple, p. 276.
Saturday, November 22, 2008
Should I Buy this Car?--Living Well Is the Best Revenge
With all the recent talk about depression, stock market declines and the like, perhaps it is time for me to finally move up in the car market to the low-tier luxury category. Is this a good choice? Comments? The biggest drawback is that I drive on country roads alot, and this is more of a city car.
http://www.edmunds.com/new/2009/lexus/es350/101038874/options.html#
What Edmunds.com says
The 2009 Lexus ES 350, with its plush ride, strong performance and beautiful interior, is a fine choice for an entry-level luxury sedan.
Pros
Powerful and velvety-smooth V6, plush ride, sumptuous interior, admirable crashworthiness.
Cons
Options can be expensive.
What's New for 2009
For 2009, the Lexus ES 350 is essentially unchanged.
Edmunds review is here.
>Introduction
Surveying the scene in the entry-level luxury sedan segment, one could be forgiven for assuming that sportiness is the name of the game. There are sport-tuned suspensions, sport modes for transmissions and sport appearance packages providing eye candy such as fancier wheels and spoilers. But what about average luxury sedan buyers -- you know, people who value their cars mostly as respites from the daily grind? Are they being elbowed out in the rush to register faster slalom speeds and higher G-forces on the skid pad?
The truth is, while sportiness may be sexy these days, luxuriousness still brings home the bacon. A case in point is the 2009 Lexus ES 350. Here's a sedan that has no pretensions about being athletic, yet shoppers continually make it one of the best-selling luxury sedans around. It's the anti-sport sedan, and apparently that suits many well-heeled drivers just fine.
The ES 350's core virtues are readily apparent. A classy-looking cabin stocked with soft leather and high-quality materials greets every occupant, and road imperfections always seem a few layers of isolation away. As for ambient noise, this Lexus is quieter than thousands of pounds of moving metal have any right to be. The superb corporate six-cylinder -- pumping out 272 horsepower in this application -- never sounds taxed, yet it moves the ES out with impressive alacrity. In short, the ES 350 is all about coddling its guests, which is a pretty appealing proposition after a long day at the office.
As far as weaknesses go, the ES 350 wears them on its sleeve. Looking for a back roads dance partner? The softly sprung ES doesn't tango. Want to keep the price down? Better avoid those pricey option packages. And if you desire an exclusive luxury sedan that's not based on a plebian family hauler, the ES just won't do, as it's an extensively revised Toyota Camry at heart.
Otherwise, the 2009 Lexus ES 350 is hard to beat as an entry-level luxury offering. Still, there are rivals worth looking at -- the Hyundai Genesis sedan offers rear-wheel drive and a choice of V6 or V8 power plants for roughly ES money. And if you'd like some sporting flavor in your luxury sedan, there's Acura's redesigned TL as well as Infiniti's G35. Nonetheless, Lexus deserves credit for the ES 350's winning formula. It's an extremely comfortable, finely finished entry-level luxury sedan, and that should be enough to keep it near the top of numerous shopping lists.
For Pricing information, see our Pricing page.
Body Styles, Trim Levels, and Options
The 2009 Lexus ES 350 is an entry-level luxury sedan that comes in one well-equipped trim level. Standard features include 17-inch alloy wheels, a sunroof, 10-way power front seats, real wood accents, keyless entry/ignition, a power tilt/telescoping steering wheel, a trip computer, dual-zone automatic climate control, one-touch up/down windows all around and an eight-speaker audio system with a six-CD changer and an auxiliary audio jack.
Numerous additional accoutrements are offered via a number of available (and usually pricey) packages. Highlights include chrome wheels, park assist, leather seating, heated/ventilated front seats, adaptive cruise control, Bluetooth connectivity, front seats with memory, adaptive xenon HID headlights, a navigation system (with voice activation and a rearview camera), a premium 14-speaker Mark Levinson surround-sound audio and video system, satellite radio and a power rear sunshade.
For more Style information, see our Compare Styles page.
Powertrains and Performance
The 2009 Lexus ES 350 is powered by a 3.5-liter V6 that pumps out a turbine-smooth 272 hp and 254 pound-feet of torque. This power is sent to the front wheels through a six-speed automatic transmission with manual shift capability. In performance testing, this tandem spirits the ES 350 to 60 mph in 7.1 seconds. EPA fuel economy estimates are above average, at 19 mpg city/27 mpg highway and 22 mpg combined.
For more Performance Data, see our Specifications page.
Safety
Antilock disc brakes, stability control and a full array of airbags (including dual front knee, front-seat side and full-length side curtain) are all standard on the 2009 Lexus ES 350. Rear-seat side airbags and a pre-collision system are optional. The latter option comes into play when an impending collision is sensed (via the components used for the optional adaptive cruise control system), which automatically tightens the seatbelts and applies full-power braking when the driver presses the pedal.
In government crash tests, the ES 350 scored five stars (the highest score possible) in the frontal-impact category for both driver and passenger. In side-impact tests, the Lexus scored five stars for front-occupant protection and four for rear-occupant protection. In Insurance Institute for Highway Safety frontal-offset and side-impact crash tests, the ES 350 netted top-notch "Good" ratings.
For more Safety information, see our Safety page.
Interior Design and Special Features
Since sportiness isn't part of the equation, the ES 350's engineers had plenty of time to devote to making the cabin as luxurious as possible. For the most part, they've succeeded in grand style, as the ES has one of the most comfortable and inviting interiors south of $40,000. Materials quality is absolutely top-shelf, as is build quality. Moreover, the optional ventilated seats are among the best we've experienced. The ES 350 also offers a roomy backseat and a 14.7-cubic-foot trunk with a cargo pass-through.
For more Interior Features information, see our Specifications page.
Driving Impressions
The 2009 Lexus ES 350 provides an isolated, pillow-soft ride, and most buyers won't drive the ES aggressively enough to be disappointed with its unathletic handling. Road, wind and engine noise are negligible -- the ES is one of the quietest cars we've ever tested at freeway cruising speeds, which is all the more impressive given that it's one of Lexus' most affordable offerings.
For more Driving Impressions, Recent Articles and Car Awards from our Editors, see our Road Tests page.
Friday, November 21, 2008
Gameplaying Re Obama Birth Certificate Reflects on Courts
A poster on this site has recommended Douglas V. Gibbs's Blog Talk Radio podcast . Doug's radio show is good and it would be worth your time to listen.
Doug's key point is that President-elect Obama's refusal to release his vault copy birth certificate reflects on his character. Even if there's nothing wrong with it, and that may or may not be so, a man of integrity would not play games. Barack Obama is a serial liar.
As well, the pissant propgandists at NBC, Fox et al. have refused to ask Mr. Obama to come clean. Without a competent media, which the United States lacks, democracy cannot function. Let us dust off our logic textbooks from college and do a modus ponens deduction.
1. If a nation does not have a competent, independent and honest media, then it cannot have a functioning democracy.
2. America does not have a competent, independent and honest media.
3. Therefore, America does not have a functioning democracy.
Moreover, the US court system is broken. The courts do not just interpret statutory law, which in this case is obscure and uncertain. Nor do they just interpret prior judicial decisions and dicta in what is called common law. Courts are also concerned with what is called equity. This is how wikipedia defines equity:
"Equity is the name given to the set of legal principles, in jurisdictions following the English common law tradition, which supplement strict rules of law where their application would operate harshly, so as to achieve what is sometimes referred to as 'natural justice.' It is often confusingly contrasted with "law", which in this context refers to 'statutory law' (the laws enacted by a legislature, such as the United States Congress), and 'common law' (the principles established by judges when they decide cases)... in general, a litigant cannot obtain equitable relief unless there is 'no adequate remedy at law'—that is, a court will not grant an injunction unless monetary damages are an insufficient remedy for the injury in question. Law courts also enter orders, called "writs" (such as a writ of habeas corpus) but they are less flexible and less easily obtained than an injunction...the plaintiff requests an injunction, declaratory judgment, specific performance or modification of contract, or other non-monetary relief, the claim would usually be one in equity...A final important distinction between law and equity is the source of the rules governing the decisions. In law, decisions are made by reference to legal doctrines or statutes. In contrast, equity, with its emphasis on fairness and flexibility, has only general guides known as the maxims of equity. As noted below, a historic criticism of equity as it developed was that it had no fixed rules of its own, with the Lord Chancellor from time to time judging in the main according to his own conscience. As time went on the rules of equity did lose much of their flexibility and from the 17th century onwards equity was rapidly consolidated into a system of precedents much like its cousin common law.
Now, why are courts reluctant to mandate release of the Obama vault copy birth certificate under equity? What principle at equity overcomes the public's right to know about the background identification of a presidential candidate?
The Obama birth certificate accentuates multiple problems confronting American democracy.
First, there is the probability that a manipulative liar has been encouraged and supported in manipulating and lying by pissant propagandists and the courts. Second, American democracy does not function because there is pissant propaganda, not mass media. Third, the court system is broken and corrupt.
Douglas Gibbs does a good job on this radio show.
Doug's key point is that President-elect Obama's refusal to release his vault copy birth certificate reflects on his character. Even if there's nothing wrong with it, and that may or may not be so, a man of integrity would not play games. Barack Obama is a serial liar.
As well, the pissant propgandists at NBC, Fox et al. have refused to ask Mr. Obama to come clean. Without a competent media, which the United States lacks, democracy cannot function. Let us dust off our logic textbooks from college and do a modus ponens deduction.
1. If a nation does not have a competent, independent and honest media, then it cannot have a functioning democracy.
2. America does not have a competent, independent and honest media.
3. Therefore, America does not have a functioning democracy.
Moreover, the US court system is broken. The courts do not just interpret statutory law, which in this case is obscure and uncertain. Nor do they just interpret prior judicial decisions and dicta in what is called common law. Courts are also concerned with what is called equity. This is how wikipedia defines equity:
"Equity is the name given to the set of legal principles, in jurisdictions following the English common law tradition, which supplement strict rules of law where their application would operate harshly, so as to achieve what is sometimes referred to as 'natural justice.' It is often confusingly contrasted with "law", which in this context refers to 'statutory law' (the laws enacted by a legislature, such as the United States Congress), and 'common law' (the principles established by judges when they decide cases)... in general, a litigant cannot obtain equitable relief unless there is 'no adequate remedy at law'—that is, a court will not grant an injunction unless monetary damages are an insufficient remedy for the injury in question. Law courts also enter orders, called "writs" (such as a writ of habeas corpus) but they are less flexible and less easily obtained than an injunction...the plaintiff requests an injunction, declaratory judgment, specific performance or modification of contract, or other non-monetary relief, the claim would usually be one in equity...A final important distinction between law and equity is the source of the rules governing the decisions. In law, decisions are made by reference to legal doctrines or statutes. In contrast, equity, with its emphasis on fairness and flexibility, has only general guides known as the maxims of equity. As noted below, a historic criticism of equity as it developed was that it had no fixed rules of its own, with the Lord Chancellor from time to time judging in the main according to his own conscience. As time went on the rules of equity did lose much of their flexibility and from the 17th century onwards equity was rapidly consolidated into a system of precedents much like its cousin common law.
Now, why are courts reluctant to mandate release of the Obama vault copy birth certificate under equity? What principle at equity overcomes the public's right to know about the background identification of a presidential candidate?
The Obama birth certificate accentuates multiple problems confronting American democracy.
First, there is the probability that a manipulative liar has been encouraged and supported in manipulating and lying by pissant propagandists and the courts. Second, American democracy does not function because there is pissant propaganda, not mass media. Third, the court system is broken and corrupt.
Douglas Gibbs does a good job on this radio show.
Obama Appoints Lobbyist
Bob Robbins just forwarded this Newsmax article by Jim Myers.
"President-elect Barack Obama’s selection of former Senate Majority Leader Tom Daschle for Secretary of Health and Human Services raises questions about Obama honoring his vow not to employ lobbyists in his administration.
Newsmax reported earlier that in November 2007, candidate Obama said of lobbyists: “I don’t take a dime of their money, and when I am president, they won’t find a job in my White House.”
But since leaving the U.S. Senate following an election loss in 2004, Daschle has been a highly paid adviser to healthcare clients at the law and lobbying firm Alston & Bird.
Although Daschle is not a registered lobbyist, he “provides strategic advice to the firm’s clients about how to influence government policy or actions,” The New York Times reports.
Those clients include Abbott Laboratories and HealthSouth.
Stephanie Cutter, a spokeswoman for the Obama transitional office, said: “If [Daschle] is asked to serve in the Obama administration, he will represent the interests of the president-elect and not his former clients.”
Footnote: The former senator’s wife, Linda Hall Daschle, is one of Washington’s top lobbyists, working mostly on behalf of airline-related companies.
"President-elect Barack Obama’s selection of former Senate Majority Leader Tom Daschle for Secretary of Health and Human Services raises questions about Obama honoring his vow not to employ lobbyists in his administration.
Newsmax reported earlier that in November 2007, candidate Obama said of lobbyists: “I don’t take a dime of their money, and when I am president, they won’t find a job in my White House.”
But since leaving the U.S. Senate following an election loss in 2004, Daschle has been a highly paid adviser to healthcare clients at the law and lobbying firm Alston & Bird.
Although Daschle is not a registered lobbyist, he “provides strategic advice to the firm’s clients about how to influence government policy or actions,” The New York Times reports.
Those clients include Abbott Laboratories and HealthSouth.
Stephanie Cutter, a spokeswoman for the Obama transitional office, said: “If [Daschle] is asked to serve in the Obama administration, he will represent the interests of the president-elect and not his former clients.”
Footnote: The former senator’s wife, Linda Hall Daschle, is one of Washington’s top lobbyists, working mostly on behalf of airline-related companies.
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