Who’s the Bigger Scammer, the Media or the Fed? Podcast of March 19, 2016 Show

On the show this week, one caller said he saw the results of Obama’s election accidentally pop up on TV before the election; another caller reprimanded me for not dismissing this out of hand. My answer? Stranger things have happened. The tweet above was sent by Newt Gingrich on November 13, 2015, more than two weeks before the San Bernardino attack on December 2, and there is no other relevant “California terrorist attack” to which Newt could have been referring. Happily, I got a little twitter support on this:

This little exchange was just the beginning. We hit on many different topics this week, so after the podcast links, I have put up links to some of the references I made…hope that’s useful. I also respond to comments, so feel free to start a conversation below…

Hour 1

Read moreWho’s the Bigger Scammer, the Media or the Fed? Podcast of March 19, 2016 Show

Tipping Is Anarcho-Capitalism In Action

tippingCapitalist society is self-ordering and tipping proves it!

Anarcho-capitalists claim that capitalist society is self-ordering. Hayek called it “spontaneous order.” Understanding this concept constituted my ancap epiphany. The premise is simple: arms-length transactions give rise to all the apparatuses needed to conduct and secure them.

I frequently take opportunities to point out to people in my everyday life that all the order we see around us is a function of our voluntary actions and self-interest. Rarely if ever do we see police forcing us to pay for our orders at McDonald’s. The counter-argument inevitably is: “The knowledge that the police are just a phone call away is what keeps everyone acting right.” I disagree, and the custom of tipping waiters and waitresses demonstrates why.

I was a waitress for seven years. In all that time, I can remember only a handful of tips that weren’t fair. I got 15% or more virtually every single check. Why? There is no law that a tip must be paid. None. The waitress could call you names on the way out, but she couldn’t call a cop on you. Why do people tip, and tip fairly–generously even? Perhaps it’s a sense of justice, perhaps it is fear of censure…whatever it is, it is a self-enforcing rule with no legal consequences for breaking it, yet it is almost never broken.

So why is there a movement to replace tipping with a higher minimum wage for waitresses?

Read moreTipping Is Anarcho-Capitalism In Action

US Labor Participation Rate Plummets While Black Market for Labor Booms

labor force peopleAlmost 100 million Americans who could work aren’t. Burdening the labor market with payroll taxes, obamacare, regulatory compliance costs, minimum wage and indiscriminate college loan subsidies, among other things, as well as creating a wage floor with welfare, unemployment insurance, food stamps, etc., creates systemic unemployment like this.  The value to employers of the work these Americans could do falls below the wage these Americans are permitted or willing to take. That in turn creates a huge black market for labor, which is why “immigration reform” will never achieve its stated goal. Liberate the labor market and we would achieve without even trying a just, sustainable, organic rate of immigration that responds to genuine demographic and technological factors.

From ZeroHedge:
Participation Rate Crashes To October 1977 Level: Americans Not In The Labor Force Soar By 579,000 To Record 94.6 Million

3 New Additions to the Glossary! “Subsidiarity,” “Zero Economic Profit” & “Regulatory Barriers to Entry”

ap-micro-review-theory-of-the-firm-35-638Who would think that answering the oft-asked question, “What do you think of Pope Francis?” I would have to define economic terms? But honestly, I think he started it! Here you go…

Subsidiarity
According to David Bosnich writing for acton.org, “One of the key principles of Catholic social thought is known as the principle of subsidiarity. This tenet holds that nothing should be done by a larger and more complex organization which can be done as well by a smaller and simpler organization. In other words, any activity which can be performed by a more decentralized entity should be. This principle is a bulwark of limited government and personal freedom. It conflicts with the passion for centralization and bureaucracy characteristic of the Welfare State.” (This reminds me of the gospel in which Jesus tells people to handle things one-on-one or within the community if possible.)

Regulatory Barriers to Entry
Complying with government regulations costs money–sometimes big money like building a data center to store all Americans’ metadata, and sometimes small money like getting a hairdresser’s license–but it always costs money. This investment in non-productive capital increases the funding required to enter a business and that changes the calculus as to whether to risk starting a new venture or not. Some new ventures are deterred and in this way competition is reduced. Generally, obstacles to new entrants are called barriers to entry; in the case of government regulatory compliance deterring competition, they are called “regulatory barriers to entry.”

Zero Economic Profit
With perfect competition, any profit that rewards capital or labor with profits higher than their marginal cost will experience entry until all capital and labor earns risk-adjusted-returns that are consistent with their market values. This is why in a free society there is less concentration of wealth not more. As government regulates industry, it erects barriers to competition that allow incumbent firms to maintain greater than zero economic profit. (See above, regulatory barriers to entry.)

3 New Additions to the Glossary! "Subsidiarity," "Zero Economic Profit" & "Regulatory Barriers to Entry"

ap-micro-review-theory-of-the-firm-35-638Who would think that answering the oft-asked question, “What do you think of Pope Francis?” I would have to define economic terms? But honestly, I think he started it! Here you go…

Subsidiarity
According to David Bosnich writing for acton.org, “One of the key principles of Catholic social thought is known as the principle of subsidiarity. This tenet holds that nothing should be done by a larger and more complex organization which can be done as well by a smaller and simpler organization. In other words, any activity which can be performed by a more decentralized entity should be. This principle is a bulwark of limited government and personal freedom. It conflicts with the passion for centralization and bureaucracy characteristic of the Welfare State.” (This reminds me of the gospel in which Jesus tells people to handle things one-on-one or within the community if possible.)

Regulatory Barriers to Entry
Complying with government regulations costs money–sometimes big money like building a data center to store all Americans’ metadata, and sometimes small money like getting a hairdresser’s license–but it always costs money. This investment in non-productive capital increases the funding required to enter a business and that changes the calculus as to whether to risk starting a new venture or not. Some new ventures are deterred and in this way competition is reduced. Generally, obstacles to new entrants are called barriers to entry; in the case of government regulatory compliance deterring competition, they are called “regulatory barriers to entry.”

Zero Economic Profit
With perfect competition, any profit that rewards capital or labor with profits higher than their marginal cost will experience entry until all capital and labor earns risk-adjusted-returns that are consistent with their market values. This is why in a free society there is less concentration of wealth not more. As government regulates industry, it erects barriers to competition that allow incumbent firms to maintain greater than zero economic profit. (See above, regulatory barriers to entry.)

The Pieces Are Locking Together: Podcast of June 27, 2015 Show

This is the only flag I own…

Posted by Monica Perez on Friday, January 2, 2015

Here is the video preview of the show:

Here is this week’s podcast:

Hour 1

Hour 2

Hour 3

Here is the podcast of my original show on the TPP and also of my show on the USA Freedom Act:
http://monicaperezshow.com/2015/06/15/tpp-ttip-the-tipping-points-podcast-of-june-13-2015-show/
http://monicaperezshow.com/2015/05/20/usa-freedom-act-not-so-much-podcast-of-may-16-2015-show/

Jeff Sessions’ Press Releases on TPP:
http://www.sessions.senate.gov/public/?p=search&num=10&filter=0&q=tpp

The Trilateral Commission on how to undermine democracy:

“The Trilateral Commission is intended to be the vehicle for multinational consolidation of the commercial and banking interests by seizing control of the political government of the United States. The Trilateral Commission represents a skillful, coordinated effort to seize control and consolidate the four centers of power; political, monetary, intellectual and ecclesiastical. What the Trilateral Commission intends is to create a worldwide economic power superior to the political governments of the nationstates involved. As managers and creators of the system, they will rule the future.” ~Barry Goldwater in his l979 book: With No Apologies

“This regionalization is in keeping with the Tri-Lateral Plan which calls for a gradual convergence of East and West, ultimately leading toward the goal of one world government. National sovereignty is no longer a viable concept.” Zbigniew Brzezinski, President Carter’s National Security Advisor and a founding member of David Rockefeller’s Trilateral Commission.

The economist quote the caller was searching for? “What’s just has been debated for centuries, but let me offer you my definition of social justice: I keep what I earn and you keep what you earn. Do you disagree? Well, then, tell me how much of what I earn belongs to you – and why?” ~Walter Williams http://townhall.com/columnists/johnhawkins/2013/06/18/the-20-greatest-quotes-from-walter-williams-n1621952/page/full

Here is my review of the JFK book I mentioned on the air:

JFK: The CIA, Viet Nam and the Plot to Assassinate John F. Kennedy

New entries this week to my glossary: Rahm Emanuel 3.0, or “Crisis Initiation” (be sure to watch the short videos embedded in the glossary!)

Down the rabbit hole on the Charleston shooting with RedSilverJ
https://www.youtube.com/user/ReviewManify

Here is the Judge Napolitano article on speech of governments vs speech of private individuals and enterprises: Protecting Hatred Preserves Freedom..I would add, the government should not make a political statement with a Confederate flag over the Capitol nor with colored lights shining on the White House. Chick Fil A should be able to have a Confederate flag over corporate headquarters or the owners of the Empire State Building should be able to light it up in rainbow colors if they want. Private businesses usually don’t make divisive political statements, however, because they want to serve everyone—something this two party system of government works against.

Here is an easy fast read I liked about the Constitution by Judge Napolitano – I recommend digging much deeper, but it’s a good start:

Here are the articles that make me wonder if the Sons of Confederate Veterans was deliberately infiltrated and transformed from being an organization to maintain Confederate graveyards to “fighting for the right to display Confederate symbols everywhere from schools to statehouses.

https://en.wikipedia.org/wiki/Sons_of_Confederate_Veterans#History

http://mountainx.com/news/community-news/0205sons-php/

http://webcache.googleusercontent.com/search?q=cache:R3lAcU4qqukJ:www.ydr.com/newsfull/ci_4281822+%22sons+of+confederate+veterans%22+factions&hl=en&gl=us&ct=clnk&cd=11

https://en.wikipedia.org/wiki/Ron_Wilson_(politician)

Here is the excerpt from a mainstream news article that I read on the air:

“…when asked about one of Georgia’s two statues in the U.S. Capitol – that of Alexander Stephens – Lewis turned steely, and made clear he wants that marble likeness replaced by his state legislature.
“I want to see it go,” Lewis said. “I don’t like taking young people on a tour and telling them that this was the Vice President of the Confederacy.”
“We have to get our own house in order,” Lewis said. “We have to have a cleansing in this place.”
Stephens may be best known for a speech he gave in Savannah, Georgia before the shooting started in the Civil War – known as the “Cornerstone Speech” – in which he bluntly set out the differences between North and South.
“They assume that the negro is equal, and hence conclude that he is entitled to equal privileges and rights with the white man,” Stephens said of slavery opponents.
“Our new government is founded upon exactly the opposite idea; its foundations are laid, its cornerstone rests upon the great truth, that the negro is not equal to the white man; that slavery – subordination to the superior race – is his natural and normal condition,” Stephens continued.

But the real context of the speech was not laying out the difference between North & South or between slave-holders and abolitionists, but between the founders of the Confederacy and Thomas Jefferson and most of the Founders of the United States! Here is the full context…

The new constitution has put at rest, forever, all the agitating questions relating to our peculiar institution — African slavery as it exists amongst us — the proper status of the negro in our form of civilization. This was the immediate cause of the late rupture and present revolution. Jefferson in his forecast, had anticipated this, as the “rock upon which the old Union would split.” He was right. What was conjecture with him, is now a realized fact. But whether he fully comprehended the great truth upon which that rock stood and stands, may be doubted. The prevailing ideas entertained by him and most of the leading statesmen at the time of the formation of the old constitution, were that the enslavement of the African was in violation of the laws of nature; that it was wrong in principle, socially, morally, and politically. It was an evil they knew not well how to deal with, but the general opinion of the men of that day was that, somehow or other in the order of Providence, the institution would be evanescent and pass away. This idea, though not incorporated in the constitution, was the prevailing idea at that time. The constitution, it is true, secured every essential guarantee to the institution while it should last, and hence no argument can be justly urged against the constitutional guarantees thus secured, because of the common sentiment of the day. Those ideas, however, were fundamentally wrong. They rested upon the assumption of the equality of races. This was an error. It was a sandy foundation, and the government built upon it fell when the “storm came and the wind blew.”

Our new government is founded upon exactly the opposite idea; its foundations are laid, its corner- stone rests upon the great truth, that the negro is not equal to the white man; that slavery — subordination to the superior race — is his natural and normal condition.

I didn’t understand the distinction the caller was making about the stars and bars…this should clear it up… IMG_20150627_175610

Happy Birthday! Now Die. Podcast of December 22 Show

Today marks the 100th anniversary of the The Federal Reserve, which is neither federal, nor a reserve! The Fed was in the news this week because outgoing chairman Ben Bernanke announced the beginning of the end for quantitative easing. I discuss these issues and more on this week’s show:

Hour 1
Hour 2

Here are some of the articles and other references that came up on the show:

My favorite book on the Fed, with the genius feature of chapter summaries so you can blow through the big picture in under two hours…awesome!

Here is my post with all the charts that show the destruction the Fed has wrought.

Here are a couple of articles that answer Eric’s points….
The Gold Standard and the Great Depression

Life with the Fed: Sunshine and Lollipops?

Here is the interview Bob recommended….

and the article…
100 Years Later, The Federal Reserve Has Failed At Everything It’s Tried

A caller recommended the video “Money Masters” and I think this is the one he was talking about…looks great!
http://www.youtube.com/watch?v=HfpO-WBz_mw

December 23, 2013: The Fed’s 100th Anniversary. Enough is Enough!

What has the Fed done to our money?

Before the Federal Reserve was established in 1913, the price level in the US enjoyed a slight decline over time even while employment was healthy and production high. Prices start to rise when the Fed is established. When FDR effectively untethered the Fed from a real gold standard in 1933, the dollar decline accelerated. The dollar fell off the cliff, though, when Nixon untethered it completely from any connection with gold in 1972. You can also see a blip when Lincoln printed greenbacks. And of course there is no separating money-printing from wars. Taxpayers are rarely willing to pay for wars with real money so their governments borrow and leave them on the hook. With the advent of the Fed, taxation by inflation was an even stealthier way to stick taxpayers with the cost of war:  just print the money you need and let the price level rise on the poor wage-earner while owners of assets ride the wave.

And if you think that chart looks bad – notice it does not include Ben Bernanke’s nearly 6-fold increase in “high-powered” money, M1, which is slated to exceed $4 trillion by year-end. This money hasn’t been multiplied by banks yet – most of it is being held at interest as excess reserves with the Fed or being played with in proprietary trading (e.g., the London Whale). If banks start to lend at anywhere near normal levels, they will multiply the money supply by several times – that’s M3 & that’s when inflation will hit.

The shaded area is the money Ben Bernanke has been printing.
The green shaded area is all the money in circulation. Because the banks are holding excess reserves and haven’t been lending (and multiplying) the money Bernanke’s been printing, inflation hasn’t gone up. When banks start to lend, M3 will skyrocket.

What do banks like?

Foreign bankers began to get a chokehold on the American taxpayer during the Civil War, but really got a grip after the Fed was established in 1913.
A century of interest payments…the Federal Reserve was established in 1913.