Posts Tagged ‘China’

Hyper-Inflation Boogie Man

Posted by Troy on 25th April 2011 in Current Events, Human Nature, Political

Glenn Beck is always screaming about how the printing of so much paper money means we are inevitably going to wind up like Germany in the 1930′s.  While it is true that printing paper money pretty much necessitates that we are going to see inflation, the extent of that inflation is unknown.  Also, I would like to point out a few things:  Germany is still there.  We will be too.  The world is not going to end.  In fact, America having hyper-inflation is much safer than 1930′s Germany.  We’re not going to try to take over the world, even if Trump is elected.  Also, if inflation hits, our currency might be weak against other currencies, but the Chinese yuan is pretty much worthless compared to a lot of currencies, and currently that’s the economy everyone’s afraid of (undeservingly so).  The fact of the matter is that we are struggling on the world market due to minimum wage jobs which forced all manufacturing jobs elsewhere.  Inflation will counter that and get us back to where we can compete somewhat on price.  Finally, we could benefit from some hard times.  We need to learn the value of resilience and hard work and helping one another as we have grown soft, dumb, and lazy.  All we really need to worry about is worrying about hyper-inflation and panicking about it.

State of the Union Address

Posted by Troy on 25th January 2011 in Political

Needless to say, the State of the Union address has deteriorated into mere political hot air.  I personally blame live TV for this.  However, it is still worth discussing.

I find it very interesting that Obama speaks of solving the debt in nearly the same breath he talks about increasing “investments.”  I should imagine that the term “investment” has focus group tested as being more acceptable than “stimulus.” 

First, let’s discuss the comparison to China.  For instance, the super-trains.  In America, we do not invest in things that are economically unviable.  If there was enough demand for these new trains, we would surely build them.  The reason that they are built in China is because the Chinese government can order something built, and it doesn’t matter if there’s not enough demand for it.  It doesn’t have to turn a profit.  The fact of the matter is that any company foolish enough to invest in these new bullet trains would quickly go bankrupt.  Americans love cars.  Plain and simple.  Our economy works differently than the Chinese.  Eventually, economic reality is going to catch up to the Chinese.  It would catch up to us much faster as we actually live (at least to a certain degree) in economic reality.

Second, let’s discuss the deficit.  He talks a great deal about lowering the deficit.  However, he doesn’t discuss the only thing that will save the deficit: getting rid of entitlements.  Govenment programs all start out with the best intentions.  Welfare was intended to help war widows.  What happens is called mission creep, where the program just continues to grow.  As these programs grow, you have the unintended consequence of people choosing to partake of these entitlements rather than work.  In the case of Social Security, people will merely spend their excess money rather than put it into their retirement savings.  Each entitlement is a sinkhole. 

Finally, let us end with a discussion on illegal immigration.  Every attempt of “immigration reform” which involves giving a “path to citizenship” for any group here illegally only gives yet another incentive for illegals to come here, particularly with their children.  From where do you think the money to pay for college for students under the DREAM act will come?  I have a feeling that it will be from scholarships which could have gone to American citizens or our tax dollars.  I will say, students who are here on a student visa who excel in their field of study should be given a path to citizenship as a way of keeping top prospects on our side.