Blog
Rift Emerges in Fed Over Timing of Rate Rise
October 17th, 2009 - 11:40am
Filed under Economy
With unemployment rates expected at 9.8% in 2010, federal fund rates are expected to stay low for an extended period. Recent debate is centered around strategy, which includes raising rates and putting $2 trillion into programs that will hold up banks and credit markets, and how to execute them (New York Times). Any quick calls will cause friction between the fed and the White House because Obama has said that he doesn't want a quick end to stimulus policies.
Deployments and Diplomacy
October 17th, 2009 - 11:38am
Filed under International Security
More troops is just the start. Henry Kissinger says Obama should be focusing on a diplomatic solution with Afghanistan's influential neighbors (Newsweek). With Pakistan, India, China, Russia, and Iran directly impacted by Al Qaeda, Jihadists and Muslim fundamentalists, negotiations would be in their best interest. The diplomatic effort would also bring to the forefront the importance of a global alliance against terrorism.
Mark Twain
October 17th, 2009 - 11:37am
Filed under Think About It....
"[Education] consists mainly in what we have unlearned." -- Mark Twain
Capitalism: This Time, Moore is Less
October 17th, 2009 - 11:36am
Filed under Miscellaneous
Our very own Brian Calle recently wrote his debut opinion article in the OC Register entitled "Capitalism: This Time, Moore Is Less." According to Calle, "Moore completely misdiagnoses the villain (capitalism/capitalists) and heroine (socialism/government). He mistakes corporate fraud and government corruption - which are statist, not capitalist, tendencies - for capitalism. And he essentially begs for more government intervention as the solution, even though his own examples point to how government enabled every injustice the film describes."
Decline Is A Choice
October 17th, 2009 - 11:34am
Filed under International Security
"The question of whether America is in decline cannot be answered yes or no. Both answers are wrong... nothing is inevitable. Decline is a choice (The Weekly Standard)." To resist decline, we should accept our role as a hegemonic power and decrease dependency on foreign oil by lifting the 30 year nuclear power plant building restriction. Our focus should be on elevating ourselves, not worrying about other countries. Ultimately, we should learn from Demosthenes who said when asked about the decline of Athens, "I will give what I believe is the fairest and truest answer: Don't do what you are doing now."
Reviving America's Schools
October 17th, 2009 - 11:33am
Filed under Education
Almost three-quarters of Americans think that the problems facing education are at least as grave as those facing health care (Economist). Traditionally, the education secretary can do little to push reform. Armed with $10 billion in stimulus, Arne Duncan wants to "fundamentally change the business the department of education is in." Some even call him a "venture philanthropist." His plan includes "Investing in Innovation" a fund that awards grants to school districts and private groups running schools and a "Race to the Top" fund which rewards states who reform in the following areas: support of internationally benchmarked standards and tests; reversing the tendency of states to weaken NCLB standards; streamlining the collection of pupil data to improve teaching; use performance to determine training and, controversially, pay and promotion.
Dollar Loses Reserve Status to Yen and Euro
October 17th, 2009 - 11:32am
Filed under Economy
The Euro and Yen now are favored by central banks as the reserve currency. The U.S. Fed Chief, Bernanke could go down in history as "the man who killed the greenback on the operating table (New York Post)". He's credited with printing trillions of new dollars and bonds to stimulate the economy, but is now facing inflation and recession instead. Economists suggest that Bernanke start raising interest rates and "pull back the flood of currency spewed from U.S. printing press."
Save The Greenback, Mr. President
October 17th, 2009 - 11:31am
Filed under Economy
To stabilize the U.S.'s economy, we should stabilize the dollar, lower tax rates to reduce unemployment, and use the Mundell - Laffer model. The model "exercises monetary restraint to save the dollar-and low marginal tax rates for economic growth incentives that benefit investors, risk takers, small businesses and workers". The treasury should also buy up unwanted dollars in the marketplace and stop printing excess money to cover congress' debt. These solutions have worked for JFK, Clinton, and Reagan in the past. Obama should follow suit (CNBC).
There Is No Such Thing As Too Big In Free Market
October 17th, 2009 - 11:27am
Filed under Economy
"We must not allow giant, state-supported banks to believe that they are indestructible (Telegraph)". The economic repression was not a result of market failure, rather it was because of "excessive concentration, excessive leverage, spurious theories of risk management and moral hazard in the form of implicit state guarantees, combined to create huge ticking time-bombs on both sides of the Atlantic". Government interference has made the issue even worse. The government should instead offer incentives for the banks to shrink and divide by taking its protection out of the equation -- leaving the losses on the backs of the creditors and other stakeholders.