Detroit City Unions: free 13th month

Detroit pension cuts 'function of mathematics'

I wonder if this will make up for the 13th week extra bonus pay that Democrat-dominated Public Unioned Public Employees have been collecting? Detroit is pretty much a Progressives wet-dream and has been managed by Democrat Progressives blaming the factories for decades. Well, FINALLY! All these evil factory jobs are gone. AND good riddance too!

I wonder what Public Teachers who run Public Schools crapping out State Certified Public Graduates with 47% functionally illiteracy rates think about this? That's assuming they can read and understand this. Apparently many Public School teachers can't pass the GED test. I wonder, do they understand that this is a product of their doing? Or are they blaming the 'X' or 'Y' or the 'Z'.... someone, anyone but themselves.


People hate the free-market, basically because they hate people making free choices. Imagine what those engineers felt like who made the Zune. I bet they hated that no one wanted their crappy MP3 player. Of course, if they were Public "Servants" of the State, then we'd all be carrying around our free Public Zunes with 50MB memory that only cost the Public purse $1000 each unit - but hey, that's going to be paid for across 30 years in bonds - so, actually it's our grandchildren who will be stuck with the bill, as part of their income tax (and lost prosperity). We get Zune for FREE!!! Like the pot-holed roads! Like Public education. AND HEY, these Zunes are registered with the NSA to ensure only State appropriate material was downloaded through State sanctioned Public "Free" websites with Citizen ID login - you know, to keep us safe from Terrorists, and Justin Beaver. Yes, and we'd all think our Public Zune was wonderful and talk about how those evil SOBs at Apple once tried to get people to *gasp* buy something with *gasp* money - something called an iPod! Capitalistic Jerks!!! Think of the Children! THE CHILDREN!!!



Take a good look at Detroit. This movie will be playing in a theater near you. This is how every Ponzi scheme ends. I like to think of it as the natural outcome of using force against innocent people, but hey - that's a weird way to think.

 

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Oh, and as to my 'misguided' Philosophy. It's this: Initiation of force against an innocent person is immoral. I'd say, to think humanity must forever resort to violence against innocent people or collapse into a feudal or tribal subsistence living standard is misguided to me. Progressivism, the idea we can use Science and Technology to engineer the ideal society, sounds nice, but in the real world has been shown to be a failure. Central Banks were humanities attempt at using "Science" to regulate the value of human interaction. Yet, within a decade of the Central Bank's re-invention - we had the worst Depression in our history. Within a generation we had WWII, the worst War in human history. Since then, our central bank has funded a never ending generational war by the State. War on Germans, War on Koreans, War on Vietnamese, War on Arabs (I and II), War on Drugs, War on Poverty, War on Terrorism, War on Privacy - we should do like to fund war with our 'egalitarian Central Bank). Oh, and War on Illiteracy! Sure, public schooling is efficient, it streamlines education, education that could and did happen often at home. So, now parents don't even bother teaching their children to basic math, to read and write. Some parents don't even bother parenting. Why parent when you can put your kid in a day supervision factory from 6am-7pm? One adult parenting 30 kids, that's efficient. And what do we have? We have literacy rates lower than in 1910 for some demographics. We have Public Police harassing Private Citizens and putting them into Public Prisons. We have a lot of debt, but have done nothing to change poverty and drug use. Actually, the ONLY thing to come of the various wars is debt, death, illiteracy and the largest prison population in the world.

Progressivism has naturally led to Fascism. We have turned humans into mass-produced worker-cogs, pumped out of public schools by the millions to fill the industrialist's factories - that no longer exist. Human children need to loved and they need to remain home with their parents and raised peacefully and taught to think logically and raised as individuals, not as 'citizens' but as people, as humans - yet, as I mentioned, it is now common to put children into daycare - even as young as 6 weeks of age.

The Initiation of force against an innocent person is immoral. This is a fact. Claim it's for the 'Good of the Poor' - and you will see more Poor. Claim it's for 'World Peace' - and you will see more War. Claim it's for education - and you will see more Illiterate. It's like trying to rape your way to love. The fact is, we don't NEED to resort to force. Worse, millions fought and died to end Fascism - and yet we became what we hated most, Fascist. To Big Too Fail is Fascism.

If we want a fair equitable society, then we need law, sound money, private property, and free-markets - peaceful interaction, trade, this is what brings prosperity.


I understand Chaplin was somewhat Communist (or at least had sympathies towards Communism) but it's not 'bad' to want these stated goals. But, it's a misunderstanding of WHAT prosperity is (time and civil liberties) and how prosperity is derived through free-trade (as opposed to 'labor' which is again, a trade). While, I still think Chaplin has some interesting ideas in this video - I also think it demonstrates the power of music (which by bypasses logic to create emotion) and while not outright sophistry itself, recognizes sophistry - while making the same sorts of mistakes. Which is interesting....... it's a wonderful parody of demagoguery - that itself is demagoguery.


[video=youtube;O0fQkYXHAK0]http://www.youtube.com/watch?v=wMKpYxhI2KI[/video]

 

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BillyT,

Given your other posts and threads, suggest we're about to enter a period of hyperinflation which would destroy the USD - then, would you be in support of a new, fourth branch of government that has the responsibility of regulating the US monetary system? Given the importance of money, and the fact that the currency system is a failure, why not take this opportunity to restructure the entire monetary system itself? IF, as you suggest, a single currency is ideal over that of multiple currencies - why not give citizens the freedom to determine that for themselves? Eliminate income tax and allow this fourth branch to spend money directly into the economy and remove currency by increasing interest rates when needed? Given the technology of today, bank themselves may even be made obsolete. If the 'poor' need help, their representatives can spend money directly on helping them (public education, health, police etc...). So long as people are 'free' not to use government currency, then why not do this instead of trying to beat prosperity out of a dead horse?

 

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Basically, yes but note usually in democracies the laws are changed to increase the re-distribution rate before thing become so bad that a violent "French Revolution" or "Bolshevik Revolution" (1917) occurs.

(I didn't copy your final assertion as think it false.)There are two reason, in addition to some vague concepts of "fairness" why not to tax only the top 10%: (1)It would not work as they would make trusts, etc. and feel "duty bound" to hid their wealth from "unfair" taxation policy. The US tax system does rely on essentially voluntary honest compliance, admittedly under threat of punishment if caught. (2)It is destructive of progress is there is no reward for "inventing a better mouse trap." Why fund any research, as that is costly.

The other part is that the government can (at least in Scandinavia with all well educated) provide benefits more economically due to national scale of essential services, like FAA controlling planes in the air, like the FBI's high tech labs, the NIH for both drug research and allocating public funds to drug companies, the FDA for quality of Idaho potatoes eaten in Florida, etc.

In your later posts you do advocate expenditures, but want them without taxation. - That is symptomatic of US's problems "Give us goodies now, but sent the bill to someone else - later generation who can't yet vote, being the easiest choice."

Joe American, has been getting a decreasing fraction of the pie for at least a decade, and yes the reduction of tax rates on the rich made by GWB is partially responsible. However, not giving many Joes a good education due to local funding of schools has done more damage to Joe. He is not qualified for earning much in the modern high tech world, in competition with others who are better educated in Math and sciences and also due to their prior very poor state, think less than half of Joe's salary it a great advance for them.

Unfortunately you have not answered /commented on/ my observation that your POV strongly favors having each neighborhood fund its local school, so a you asked me:
Is this a correct summary?

This is a mixed hodge podge so I just restate some related things: Only a few "bad apples spoil the barrel" I.e. all societies need laws (compulsion) regulating behaviors, and to pay police to enforce them. Ergo must collect funds form the honest part of the population who might be able to live together peacefully by mutual consent. The 1000+ failed communes show that even among like thinking people disputes arise, grow and fester, until the commune collapses. Also you show a great confusion between money (currency) and wealth. Money is basically just a book keeping system* to allow agreed transfers of wealth, not true wealth. Wealth is more correctly identified with power - power to get others to do what you want done. Money or currency can take many forms, but wealth is always the same.

The "booking keeping" money does is best done in the same accounting system to avoid confusion as to what the records stored in money mean. - I.e. no exchange rates required. I don't have any "math proof on compulsion" it was just showing that the more money you have the more you will be able to invest (after paying for life's necessities) and get more - i.e. money concentrates and that concentrates power. Mankind is in a transition stage, still quite based in the concept of people being a member of some nation, but starting to make trans-national transfer (wealth re-distribution out side their own society) to help others with their health and reduce starvation, as if living under one world government. I don't know enough about Japan & Korea to apply this or comment (or even understand your point.)

* Your salary is not wealth - just a record of what your efforts have earned for you to command / obtain from others.

 

No. The Fed is that "fourth" power regulating money, and IMHO been has forced to do destructive in the long run things (excessive thin-air money - not a "record" of any one's earned power) by the non-functional (compared to Scandinavian or even Chinese) governments. As I have said many times in many post and Alexis de Tocqueville said in ~1835, the fundamental problem is lack of education in the voters to self restrain their basic urge to greed for them selves at the expense of the yet unborn who will be unable to pay for the goodies their recent ancestors consumed, but did not pay for.

You surely agree, at least about the part: "reduced to nothing better than a flock of timid and industrious animals" With "industrious animals" he is more accurate than your "cattle."

Quote, now blue, is from: http://en.wikipedia.org/wiki/Soft_despotism but Wiki is just quoting and paraphrasing from Democracy in America
Here are my comments concluding the OP of that above post:

Billy T comment: Quite perceptive for a Frenchman who arrived in NYC in May 1831 and returned to France less than a year later (Feb 1832).
IMHO the main thing that he did not accurately foresee was fiat money.

I know how much easier fiat money has made it for governments (especially the US government with the dollar as the international reserve currency) to grant the wish of almost all to live beyond their means – for as long as the printed paper is accepted as having value, but law of supply and demand operates on fiat currency too. This continued increase in money supply makes the currency less valuable. I.e. there comes a day when the piper must be paid for the dance of consumption in excess of production.

In the US case this day or reckoning has been delayed by years, mainly by China's willingness to return the currency to the USA so it can be used again to buy more consumption goods, beyond US production, without printing more currency. For decades, the CCP keep the Chinese workers in near poverty, slaving away in factories (and even thankful to the CCP for having that job) so Americans could enjoy the consumption of the goods they made more cheaply. The Chinese people are now saying:

“Enough already – we want higher wages, better working conditions, to enjoy the fruits of our labors etc.”

And the CCP is responding: – Making: a social welfare system, hospitals, better schools, more paved roads, a network of trains, smart electric grids, rapid expansion of power generation from many sources, factories producing cars, washing machines, cell phones, TVs, computers, etc. in greater volume than any other country. For example, ~ 360 million Chinese have high speed internet connections – more than the total of ALL Americans!

In modern China, economic democracy is limited to the market place. I.e. the invisible hand of Adam Smith determines what is produced and consumed. The CCP reserves for itself the decisions as to how and what basic infrastructure will be created.* When keeping the population slaving away in factories making export products was still possible, capital investment mainly supported these, inefficient and often unprofitable, exporting factories. They earned the foreign currencies that the CCP would lend back to the consuming nations so they could continue consuming beyond their means.

But “The times are a changing” The population is demanding more and getting it in form of double digit increases in their real salaries (and many new services like those listed above). China no longer has cheap labor. It increasingly produces mainly for the domestic market – For example: World’s leader in car sales and domestic sales of many electronic items, such as cell phones, computers, digital cameras etc., but it still exports too as conversion from an export to domestic based economy is not done in only a year. China is trying to accelerate this switch with too many measures to name all, but a very important one was the land reform of a few years ago that has allowed farmers to rent their land to larger, more efficient, producers and sent those farmers to the new cities (100 planned for populations of 1 million each) now being constructed in the interior, and serviced by the new rail lines, etc.
SUMMARY: Now that fiat money exist, democracy (with an ill educated population) and economic stability are mutually incompatible.
The situation is worse than Tocqueville, ignorant that fiat money would exist, could imagine. For more than 6 years I have been forecasting dollar collapse next year now.

* If you want some examples of how and why the CCP is much better at building needed infrastructure than the US, see: http://www.sciforums.com/showthread...l-Superpower&p=3102317&viewfull=1#post3102317
IMHO, China's consumer market is more free than the US's market is - too free - it needs more "Preventive Regulation." China seems to operate more like Michael wants - allow people to be free to make and sell what every they want to but that does not work as well as having an FDA, etc. as the deaths of many babies with contaminated milk shows - I.e. a toxin that "tricks" the protein measurement equipment to give a falsely higher rating was added so more water could be added too.
Just another example of how silly Michael's "No national regulations is best" ideas are. Michael seems to want each village to be qualified to make safety and quality controls on every thing sold, despite increasing the cost in China's case 100,000 times and not being even possible due to skilled man power requirements.

 

By this reasoning then you think a single currency/money used throughout the world, would be comparably better relative to a multitude of currencies? OK, suppose you are correct and I am wrong. Why not allow people the freedom to choose their currency? I mean, if you are right, there's no need to use force against people as they will naturally want to use the State's currency. Correct?

Also, let me make sure I have you correctly, the middle class must pay a tax to redistribute money because the rich will hide their money and evade taxation. Is this correct? If so, why does the State have to tax at all? Why do you feel there is a need to only spend that which can taxed from the 'rich'? The State has the power to print currency and can spend fiat-currency directly on the poor. The State can raise interest rates to deal with any inflation. Why do you insist the only method of 'wealth'/power redistribution is through income tax?

You state that ONLY through compulsion can law be derived. Please explain international trade between Japan and Iran. When a dispute is raised between two individuals during a trade, how is it resolved without a super-national law-maker? Why are the rulings of international private courts obeyed, without a super-national police to enforce their decisions?

You say a State and State police are required to create and ensure the law is upheld. Please explain rules regarding the need to wear a T-shirt and a private mall with private security. When the private citizen walks into a mall, and is 'apprehended' by private mall security and escorted to the property line and made to leave the private property, where is the need for a public police officer?

Please explain the differences between money, currency, fiat-currency. Or is it you seen no differences and the words are synonyms. In an earlier post, I listed all previous fiat-currencies that have been used, all have gone to zero. The longest lasting about 500 years. Gold and silver on the other hand, have been used for 7000 years and have always had some value. Why?

 

You're cherry picking again. This is what you do, you have a preconceived idea and through that lens you view everything. Yes, there was some babies who were poisoned. Well, guess what - no FDA can prevent someone from committing fraud until AFTER it is committed. China recently halted imports of New Zealand milk powder because it was contaminated with botulism bacteria. So, here's what you would now do with this single data point: New Zealand seems to operate more like BillyT wants - allow people to be regulated by the FDA which tricks people into thinking their milk is good when it's actually contaminated with bacteria as the deaths of many babies with contaminated milk shows. See how silly this is? The FACT is it's against the law in China to sell something called '100% whole milk' that is white water with a protein added to it. Agreed? A milk farmer in the USA could add protein to his 'milk' and sell it and get in trouble - just like in China. It's not the FDA that stops people from selling shit food - as a matter of fact, our grocery shelves are FULL of shitty so-called 'food' the FDA allows Americans to eat. Many Americans will die from this 'food' due to the amount of HFS, fats and ensuing 'metabolic syndrome' they will develop.



Secondly, yes, I agree with the Frenchman. He was astute.


My argument isn't about fiat-currency versus competing currencies, my argument is about the immorality of the State's obligation to initiate force against an innocent individual. In a free state, people would have the freedom to choose to use the fiat currency - or not to, or to use it as well as some other currencies (maybe even some as PM). In this way, if you truly are correct, then we find out as people are free to use the State currencies and will shun private currencies. See how easy this is? You simply let people make their own decisions. It's really not that big of a deal. It means you have to come up with ways of interacting with one another without pointing a gun in their face and threatening them and their family. To act like THAT is a return to the jungle. To act like an animal. Humans have this amazing ability to NOT resort to animal instincts. We don't have to. We can act civil. This then means the State currency can not have the unfair advantage of income tax. A forced tax paid in State fiat currency. Thus, I have no problem with the State using it's currency to pay public employees to perform service to the community. So long as that fiat-currency is generated by the State debt-free. Loans made by the State in fiat currency, would have an interest rate determined by the State. IMO this could occur through a fourth branch of government and would be part of a total restructuring of our monetary system. Let's face it, you'll NEVER get people in a democracy to NOT sell out the prosperity of their children. They simply can't help themselves. Just look at ObamaCare. Why pay for your healthcare yourself when you can shaft your grandchildren?



Seeing as in you think the Federal Reserve functions as well as (or better) then a fourth branch of government, I have a question. The Federal Reserve is owned in part by private banks. Private banks are owned by individuals. Can you give me the public list of each of these people and how much controlling interest that they have in the "Federal" Reserve bank of New York? I would like the name of each investor and the percentage they own. I mean, if the Federal Reserve truly works in the public's interest - you should easily be able to give me this public information. The fact is the Fed doesn't work for the public. It works for the banks who own it. QE wasn't and isn't there to bail out the public - it's there to bail out the banks, or in other words, the owners of the banks - and this is exactly what it is doing.

The USD has only been unplegged from gold for a single generation - let's see if it goes the way of all other fiat currencies.

 

I'm still curious as to why you think Detroit has a functional illiteracy rate of 47% for graduating students? The State pays about $20,000 per year per child. Those children attend Public schools for 6 hours a day across 12 years. The only items required to learn to read and write are pencil and paper. The schools are warm, lunch is provided, electricity is provided, a "professional' teacher is provided.

 

Rather than separately quote and reply they are all here:
Government does not force me to use dollars when I visit my kids in US. It is the people who will not let me pay in Brazilian Real. They don't want other currencies, like you seem to think.

Yes many try to avoid taxes. I said it only the top 10% were taxes, as you suggested they would find ways (like trusts, dummy corporations, etc.) to hid from taxes - one of two reason your plan would fail.

No I didn't say: "ONLY through compulsion can law be derived." I said compulsion was required for redistribution of wealth (unless 100% of all rich give money to the poor).

Owners of private property can set many rules, including dress codes. (Your getting silly)

Gold and other things, like ocean front beach lots, have value as nature limits the supply. Fiat money can be made without limit and then will become worthless. (You need to not ask such stupid questions or I will stop answering.)
From your post108:
"as a matter of fact, our grocery shelves are FULL of shitty so-called 'food' the FDA allows Americans to eat. Many Americans will die from this 'food' due to the amount of HFS, fats and ensuing 'metabolic syndrome' they will develop."
You are really confused / inconsistent: Your whole point was that the people would chose better than the government would but here you complain that they don't chose like you would decree.

"In a free state, people would have the freedom to choose to use the fiat currency - or not to, or to use it as well as some other currencies (maybe even some as PM). "
How do we make the Americans chose to accept my Brazilian Real? Your have to face the fact that the people have chosen NOT to have many different currencies, but you don't like their choice as it conflicts with your impractical "ideal."

 

I doubt the good, well qualified teachers find the salary adequate compensation for the risk of injury etc. However, as I have pointed out in several posts, moving the first grade teacher with the class to next grade, as done in Norway (all Scandinavia?) has many advantage. Two big ones:
(1) No passing on child to another teacher - all know who failed to teach. KNOWN RESPONSIBILITY
(2) Teacher knows the strengths and weakness of child after a few first grade months (They are well known on day one of second and all later grades - not more than a month every year wasted for new teacher to get to know her students.)
This better system adds zero cost and makes teaching easier, more efficient, and a team effort: A strong in one area student helps others in that area. This concern for welfare of others last a life time. Scandinavians want to pay ~ 50% of their income in taxes so ALL have good health care and excellent educations. (They don't vote for "goodies now" and "send bill to the yet unborn." They vote for leaders concerned about their country, not the next election.)

 

You are not allowed to pay income tax in Real. You must pay in USD. This is the whole point IN income tax. The fact is the government can print as much money as it likes - it's not the currency that's of value, it's your labor.

So, my point was you must pay your income tax in USD when you conduct a sale of your labor.

OK? And you point is that therefor the middle class must be taxed 35% of their labor because maybe the top 10% will hide their money?!? Come on, I don't believe you even believe this. The fact is income tax isn't about redistributing money to the poor. It's about redistribution of power from the citizen to concentrate in the hands of those in the charge - our Political Masters.

The government can print money by fiat debt free and spend it directly on helping the poor. The government does not 'need' to ONLY tax the rich. As a matter of fact, the government generates a lot of money by simply selling bonds.

My point is, you said compulsion was required and I say it's not. We can agree to disagree. However, we both know the government does a whole hell of a lot more than care for the poor. The poor are probably the furthest on the list of the government's priorities.

This one I want to make myself clear.

The FDA approves pink-slop as food and people eat it. So? Why do people eat it? One reason is they want to and some people always will want to. Another reason is some people assume because it's FDA approved therefor it's not poisonous. Which is wrong, it's slowly killing them. But the last reason is insurance. In a true free-market, insurance would offer incentives to people NOT to eat this crap food and remain healthy. My point is we don't NEED the State. If anything the State is causing more problems than it fixes - which is great for the State, it just means more need of .... State! We do not NEED the State. The free-market CAN provide solutions. Those solutions will be much better too. This is what the free-market actually does.

OK, that's fine. But until the income tax is eliminated, we'll never know. Not to mention all the other State taxes that are forced to be paid in State-backed currency.

I find this interesting from someone who thinks the USD is about to destroy itself in hyperinflation. I actually think we're about to see deflation. But, because we have a central bank - it's really just a crap-shot. Anything is possible. I suppose, I would think you, if anyone, would stop and think about the advantages (in addition to disadvantages) inherent in a system with multiple currencies. They are there - whether you acknowledge them or not.

 

This I totally agree with. It can even be improved upon by having mixed classrooms where different ages are allowed to learn at their level and not age - as well as (and will happen) using the internet to tailor subject matter to children at an even earlier age.

I do NOT find this a satisfactory answer. ALL teachers are Certified by the State. No one can work as a teacher without State certification. Also, the jobs are filled - so indeed 'qualified' teachers are there teaching children. While they may not be the 'best' teachers, they are State qualified as competent to do their job (even a parent can teach a child to read rather quickly - I find it almost unbelievable a child can attend public school for 12 years and walk away functionally illiterate). Thus, this does not explain why 47% of kids GRADUATING are functionally illiterate. Unless you're saying the entire system is broken? Is that your argument? Because I went through the public school system, and I can read and write.


Do you know of a single Private School where anywhere near half the graduating students are functionally illiterate? If so, I wonder if they give themselves a much needed 4 month summer vacation and 13th month extra pay check?

 

BillyT,

Actually, I have another question. You claim force is required to redistribute wealth from the top 10% to the bottom 10% because wealth will concentrate in the top 10%. And you also claim that the middle 80% has to be taxed because the top 10% will hide their money one-way or another, and so this force is required as well.

So, my question: If you want the government to provide services to the poorest 10%, why not have the treasury issue the money required to provide the poor with public housing, public education, public hospital care and a public pension or disability simply by creating the money debt free, and spending the money directly on these services? Likewise, the infrastructure needed to provide the productive part of society with a basis for their necessarily-government-regulated-market activities could similarly be paid for by creating the money debt-free directly and spending it directly into the economy through public works projects (you claim the State is best at providing infrastructure and routinely point to China as a sterling example)? Not only that, the State can produce the money needed to fund medical research (NIH), space exploration (NASA) and natural sciences (NSF) and free University education.

Therefor, there would be no need of income tax, as the State can produce fiat currency as it is needed and spend it directly into the economy on these Public services debt-free.
Why not do that?

 

Because money can not be created "debt free"
Simply put:
Either you borrow it from source that has some (going into their debt) Or
You place a debt on not yet born generations *- that is the alternative, which if done to excess, destroys economies.
That, second alternative, is what you get with democracy and a poorly educated population - as the US, has but not Scandinavian democracies have.
The Scandinavians operate pretty much on a "pay as you go" principle, not the US's "Give us our goodies now and send the bill to the yet unborn as they don't vote." principle.

Again, Money is really just a book keeping device - Shows how large are your rights to consume your efforts have earned you. If money is just printed, that does not directly* increase the wealth available for consumption, so to take simple example:
If one trillion dollars exist today and by busy printing press working all night, 2 Trillions dollars exist the next day, then you need to tra thatnsfer two, not yesterday's one of your recorded money units to get same thing to consume.

* As most don't understand this and think money is wealth when they get an increase in their supply of money (by thin-air production of it, not a second job's salary) they think
they are more wealthy - I.e. they will spend more freely. That is mainly what the QEs have been doing trying to use the "wealth effect" to stimulate a slow economy.

For about a decade the purchasing power of Joe American's salary has actually been declining and even poorly educated Joe is catching on to this QE game so it is losing the effectiveness it first had.

No. But one extremely important point you neglect is that the student are not randomly sent to either public or private schools. Those in private schools have parents who place a high value on education, gave their kids pictures books with few simple words at age 3 or less, have a home with books, not rats, in it, have a work ethic, many even motivate the kids to work harder with various sorts of bribes. I as fortunate to have such parents so even though quite poor and going to the public schools of West Virginia (ranked 47 out of 48 in school quality)* I did well (did not even go to school for my fourth grade) yet got a full scholarship to Cornell, etc.

I.e. By far more important than the school is the attitude (and education) of the parents than the quality of the school. The private school students are lucky enough to have parent value education so much that they will pay for schools where their kids will be with others kids whose parents are motivating them to work hard and learn. What the other students are like is the second most important thing and still far more important the quality of the school.

One true example is Benjamin Carlson, a black man, who became head of pediatric surgery at Johns Hopkins Hospital when I was working at the Applied Physics Lab. He was the speaker at one "black pride" day APL had. In his talk he told many things that changed his future but most important was his mother's attitude towards education. She required him to bring a library book home each week and read it to her, while she worked. (Ben did not know she could not read.) Ben picked easy to read books at first. One was simple book with pictures of rocks and few words (just their names and where found or formed mainly). One rock was obsidian which Ben had chanced to find on the rail road track a few days earlier as he walked home and he keep it as it was different from all the others and pretty.

Ben was the "class dummy" in 3d grade, never stuck his hand up and believed he was dumb. He seldom was called on, but the teacher had a piece of obsidian she showed the class one day and asked if anyone knew what it was. No one stuck their hand up to answer, so finally Ben did. Laughter broke out, other kids snickered. One boy said out loud: "This ought to be good - lets hear what the dummy has to say."

Slowly and timidly Ben said "obsidian." The teacher nearly fell over in surprise saying: "Why that's right Ben !!!" Ben soon ceased to believe he was dumb, started to study, etc. Even brought home harder books, two or more each week, that interested him. If you visited his office as head of pediatrics at JHU you could see that piece of obsidian sitting on his desk.

* Louisiana was last -#48. In W.Va. we said: "Thank God for Louisiana!" Ben went to a segregated school for blacks his first year or two back then. The average of all the Black Schools in W.Va. was surely worse than the average school in Louisiana even thought in Louisiana most went to segregated schools. It will take generations and lots of money with the very best teacher hired to undo the decades of damage done with local funding of poor schools in poor neighborhoods.

I only told a story not well known. Read more on Ben here or search his name for many other articles:

I'm an agnostic, but I do wonder, How the hell did a pretty piece of obsidian get to be sitting on a rail road track?

* It might be more accurate to more accurate to say: The newly printed thin-air money steals a little purchasing power or wealth from all you have savings. This does effective "borrow" from future generations as then the wealth they will inherit is reduced.

 

Michael you may enjoy this video: http://www.bloomberg.com/video/bill-gross-let-s-equalize-this-90AwmcSHTvyk5od_ASEAOA.html

Especially if you now understand that the government can not pay for things just by printing money. It gives another reason (not my wealth re-distribution argument) why GWB's tax reduction were wrong /damaging to the economy. I. e. when capital is abundant, as now, there is no need to have lower taxes on capital gains than the taxes on the workers labors. Lower taxes on capital gains are needed to encourage saving - capital production when capital is in short supply, but not now.

 

I agree that wealth can not be created through a printing press.
I may agree money can not be created through a printing press.
I may not agree that fiat currency can not be created 'debt free' - through a printing press.

What do you mean by 'debt-free'?

Example: Suppose, right here and now, there's a homeless person. And, someone in treasury prints up exactly $1000 United States Federal Reserve Bank Notes and gives it to this homeless person. Now, the homeless person is able to consume $1000 worth of goods and services in place of some other people - whom otherwise would have taken those goods and services. The homeless person does't 'create' anything of value. But, that's not the point. The point is that goods and services have just *poof* been 'redistributed' from other people, to this homeless person. Give him $100,000 and doesn't even have to be homeless.

So, it is, indeed, possible to create fiat currency "debt free". There's not some law of the universe that's going to stop the printing press from printing money without owing it to anyone.

Agreed?


Whether this is good for the long-term economy, moral, fair, etc... is a different question.

 

I completely agree. I personally believe that Public Schooling undermines the incentive for parents to educate their children. The public school you attended was a public school where teachers were fired for not doing their job properly. It was closer to a time pre-LBJ's horrid demagogue "The Great Society". The teachers that taught you, were not the same breed of teacher today.

As a side note: Detroit was spending $38% of it's collected taxes on legacy - pensions and benefits, getting absolutely nothing in return. This IS the story of the entire USA. The Mayors all across America have been concocting all sorts of schemes to promise to Public Unions to prevent them from striking. Well, the best carrot has been the 'well give everyone a golden early retirement with full benefits'. That little lie seems to sell well. And, as Wisconsin Democrats made clear, they'll drag the State Government through Hell and Back to get those promises (sure the Democrats know there's no money, the Union leaders probably know, although both groups are a bit dim). Thus is the story of Detroit playing out across the nation.

There is no way to stop this from unfolding. I don't care how many cities they sell off to the Chinese.

 

I agree.

Is it possible to ever issue a United States Federal Reserve Bank Note without going into Debt?

 

I understand his argument. I don't agree that debt is required to create the money required for the investment. It wouldn't be 'capital' investment - but a 'redistribution' of existing goods and services towards infrastructure.

Which is not capitalism - which requires capital. My argument isn't that it's capitalistic, or that it would be good, only that it could happen.

Given we just continue to go into debt, in a sense the Federal Reserve is monetizing 'free' money - most of which is being spent on killing people in the middle east. When the Fed is buying most of the Treasuries - there is no more Capitalism. It's one big circle-jerk. Thus, in a sense, the money IS being printed 'for free' - it's just not being used on what would traditionally be capital investments. IMO, asking the sociopath Authoritarians who ALL voted to murder women and children in the Middle East (for over a decade), to be kind and creative and honest, is silly. It'd be like asking a murdering-paedophile to babysit your child. You'd have to be insane to think anything other than a horrific outcome will eventuate.

If the Government invests in infrastructure - we'll be deeply in debt, have half-arsed infrastructure that costs way too much and provides way too little. We'll have roads were we don't need them. Bridges that go no where. It'll be a total mess. Just like Public Housing. Just like Public Schooling with 47% functional illiterate State Certified graduates. Think about a State High School degree - 12 years of daily education at >$20,000 per child per year and what's it worth to the market? Nothing! Nothing! Most of the time, next to no skills have been obtained after over a decade of State education, kids are lucky to work as a f*cking checkout clerk or waiter. That's pathetic.


The State is a hammer and everything looks like a nail. I'd expect a default through inflation followed by War to reduce the poverty the old fashioned way: Cannon fodder. Who could we war with? Iran? Too small. Mars? To Keynesian. No, there's a LOT of cannon fodder - we need a really really big war. I suspect it'll be against ourselves.

In the current system, I have no problem taxing the top 10%, 90% of everything they own and make. I'd rather reset that way, than through war. Although, I'm fairly certain it'll be war. The cattle class can barely read the non-aggression axiom let alone formulate greater meaning from it.