AIG spells nationalization of entire insurance industry

With billions of government handouts, AIG is able to offer peerless premiums. In a free market, offering such low premiums would be corporate suicide. But AIG is not a free market participant. It has government backing. Bernanke and Treasury Secretary Timothy Geithner have, on numerous occasions, voiced their intent to do whatever is necessary to keep AIG from folding. In this context, risks that would normally bankrupt the company do not restrict its behavior, because its liquidity flows from a seemingly bottomless barrel, the purse of the citizenry. Losses from these risks will continue to be subsidized, and those subsidies will encourage more risks, and bring on more losses.

Open bailout opposition letter to Congress

“That government is best which governs the least, because its people discipline themselves.” – Thomas Jefferson
There is a lot of hype in Washington this week, a lot of short-term thinking, but very little honest reflection and philosophically sound governance based on the long term prospects of the American economy.  Jefferson was right: our financial markets [...]

Want some bad debt? Bailing on America.

“I do solemnly swear that I will faithfully execute the Office of President of the United States, and will, to the best of my ability, preserve, protect, and defend the Constitution of the United States.” – Presidential Oath of Office in its entirety
“Stop throwing the Constitution in my face!  It’s just a goddamn piece of [...]

Tough love for America (not hate)

For those who understand the economic structure of the United States, and hold–like myself–a neoclassical economic philosophy, the short term and long term outlooks for the status quo are gloomy for the individual, and in turn, for the nation as a whole. An economic system whose stated goals are maximum employment and minimum wage will [...]

Letter to the regulatory proponent

“Despite the long term damage to the economy inflicted by the government’s interference in the housing market, the government’s policies of diverting capital to other uses creates a short-term boom in housing. Like all artificially created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their [...]

Nationalists on the Right, Socialists on the Left, compromise for a planned economy with Muslims in concentration camps

The following was a response to the letter that appears below it, and I share as proof that neoconservatives are a little confused about reality–too much Fox News perhaps.  The writer of this rudimentary stream of consciousness–if it can be called that–is to remain anonymous.  I would not sacrifice a friend for a political disagreement, regardless of his [...]

Letter to the neo-American

I wrote the following to a dear friend and fellow American who will remain anonymous:
When I reflect on our conversations, and consider the compassionate and insightful person I know you to be, I find it hard to believe that you sincerely support the hostilities in Iraq, or that you cannot see through the confines that [...]

Partisan economics: no liberals in America

The term “liberal” is misused among Republicans.  What they dislike is not true or classical liberalism.  Classical liberalism defends individual freedom, and actually advocates a free market. The Democrats the GOP complains about are far from liberal; they are socialists. The “liberal socialist” Democratic party contradicts its own character, because socialism and liberalism cannot naturally coexist. Socialism cannot be [...]

UtopiObama: the end of America

Obama inspires people. To do what? Vladimir Lenin inspired people too. That doesn’t mean his ideas about government were good. As far as I can tell, Obama only inspires people to encourage the government to take care of all their problems. Here is how I imagine UtopiObama in a few years:
DAILY MESSAGES FROM COMRADE OBAMA:
03.26.11
“Good [...]

Obama inspires people. To do what?

Vladimir Lenin inspired people too.  That doesn’t mean his ideas about government were good.  As far as I can tell, Obama only inspires people to encourage the government to take care of all their problems.
DAILY MESSAGE FROM COMRADE OBAMA:
“Good morning, United States Comrade #183790433.  How much free gas, food, and healthcare would you like today?  You [...]