Dr. Mark Skousen's Five Questions for President Obama and How Free-Market Thinking Can Build a Better Future
The Daily Bell is pleased to publish an exclusive interview with the distinguished free-market scholar and economist Dr. Mark Skousen.
Introduction: Dr. Skousen taught economics at Columbia University's Graduate School of Business in 2004. In 2001- 02, he was president of the Foundation for Economic Education (FEE) in New York. Since 1980, Dr. Skousen has been editor in chief of Forecasts & Strategies, a popular award-winning investment newsletter published by Eagle Publishing in Washington, D.C. He is also editor of his own website, www.mskousen.com, and editor of three trading services, Skousen Hedge Fund Trader, Skousen High Income Alert and Skousen Turnaround Trader. He earned his Ph.D. in economics and monetary history from George Washington University in 1977. Since then he has written over 20 books, including Economics on Trial (McGraw Hill, 1991), Puzzles and Paradoxes in Economics (Edward Elgar Publishers, 1997), and The Making of Modern Economics (M. E. Sharpe, 2001). Dr. Skousen is the creator and producer of Freedom Fest, an annual gathering of the freedom movement from around the world, held every July in Las Vegas (www.freedomfest.com). Mark Skousen was interviewed on Board the Ship Veendam, in Port Montt, Chile. This is his second interview with the Bell. The first can be seen here: http://www.thedailybell.com/763/Mark-Skousen-Honest-Money-Austrian-Economics.html.
Daily Bell: Thanks for joining us again.
Mark Skousen: Happy to be here.
Daily Bell: You wanted to interview President Obama. Here's your chance, before we move into more general questions.
Mark Skousen: I came up with five questions. They are what I call hardball questions. If he does not answer, I will answer for him.
Daily Bell: Sounds like you may have to.
Mark Skousen: Mr. President, do you support the repeal of the invasive requirement that all business report a 1099 of all sales of goods, services or assets of $600 or more during the calendar year?
President Obama does not answer ...
Mark Skousen: All right, then. You say all the time that you are pro business, pro-small business, but how could you possibly support this part. It was added on at the last minute to what is now called the ObamaCare bill. It's another example of pushing through legislation that nobody has read. It's going to have a terribly retardant effect on the economy.
Daily Bell: Maybe you will have more luck with number two.
Mark Skousen: Another government agency that has run amuck is the TSA. Do you support their decision to install full body scanners and full pat downs for travelers that refuse to subject themselves to nude photographs of their body?
President Obama does not answer ...
Mark Skousen: Has America come to the point where the US government is officially sanctioning sexual harassment? That question has been asked in a softball way...."well what do you think President Obama, what do you think of these scanners?" You defended it by saying that this was the only way they could capture somebody like the Christmas day bomber who had a bomb in his underpants and so now we have to subject ourselves to this kind of indignity. At what point is this going to end.
Another point is the aggressive nature of the TSA. There must be something like Murphy's Law when it comes to government agencies that inevitably they go over board and no longer fulfill their basic function. I really feel that this is a travesty of the worst kind. I am really glad to see there is a group that's forming a kind of Tea Party protest for this decision. It is on the web called, www.wewontfly.com, and I recommend that everybody go to that, wewontfly.com.
This is an egregious example of government run amuck and it reminds me of in the 80s when the Federal transportation agency, in order to encourage seat belt wearing, actually required a new device to be attached to the ignition of all new cars. You had to have your seat belt on before the car would start. Americans were so incensed by this, there were protests and they stopped buying cars and they started finding ways around the device and eventually the government backed off.
I am very hopeful that this will be the case but as Doug Casey says, American's today are spineless, they are whipped dogs as he says and there are only a small minority of libertarians protesting this. I think it's a sad. Apparently 80% of Americans supported full body scanners, it's just a total invasion of privacy. Of course, I have been at the forefront of this battle all my life having written a book called; The Complete Guide to Financial Privacy in the early 80s.
It was a bestseller and sold over half a million copies, kind of an underground best seller. It wouldn't make sense that it would make the New York Times list considering the topic is privacy but I feel this is very sad. We never lose our freedoms all at once, we lose them gradually. It's like the frog in the warm water – we turn the heat up and eventually he croaks.
Daily Bell: Onto number three.
Mark Skousen: Given that you are deeply concerned about the high level of unemployment, would you favor elimination or at least reduction of the minimum wage law in order to boost employment among black male and teenagers in general?
President Obama does not answer ...
Mark Skousen: Many economists believe there is a strong correlation between the rise in the federal minimum wage and teenage and minority unemployment rate in the United States. Are you aware that when the new minimum wage was imposed in the summer of 2009 during the first year of your administration, there was a significant increase of joblessness among teenage male blacks. Do you think there is any correlation? Can you deny it?
Daily Bell: The silence is deafening.
Mark Skousen: Was it really necessary to take 2,000 government employees on your recent trip to India and around the world costing tax payers millions of dollars? Is this appropriate at a time when there are record deficits and Americans suffering financial stress? Isn't this an example of the Imperial Presidency?
President Obama does not answer ...
Mark Skousen: This is how you get an image problem. You begin to be perceived as an imperial president, like one of these famous dictators, a Caesar type of person. What we need right now – in terms of attitude anyway – is a Jimmy Carter type. Carter may have been a failed president, but he understood something about humility. That seems totally lacking in your administration. It's like the First Lady going on that expensive trip to Spain, going to all these ritzy places. It would be nice to see a president who maintained a low profile. It's just a question of sending the wrong message at a time when Americans in general are struggling.
Daily Bell: Your points seem to be falling on the proverbial deaf ears.
Mark Skousen: We'll give him another chance. Is it really necessary Mr. President to run a 1.3 trillion dollar deficit and threaten the bankruptcy of the United States and our AAA rating? Can't you admit all this "stimulating" is ending up in bankruptcy rather than a healthy economy?
President Obama does not answer ...
Mark Skousen: Since you went to the Chicago law school, certainly you were exposed to the great Chicago School of Economics and the free market economic perspectives of Milton Friedman, George Stigler and so forth. Are you aware Mr. President, that Friedman's study of the Keynesian spending multiplier, in other words, the positive impact of federal deficit spending, is bound to have a multiplier of zero, in other words, no positive impact what so ever? The trillion or so you have spent on "stimulus" has been wasted. There are no shovel-ready projects, and if there were, they wouldn't add net jobs.
Daily Bell: He's ignoring you. Good to remind him about the Friedman study, though.
Mark Skousen: Last one. If Europe recovers with their low deficits and an expansionary monetary policy, will this not disprove the Keynesian model?
President Obama does not answer ...
Mark Skousen: Europe is cutting back on government spending while engaged in monetary expansion. Here we will have a perfect natural test to see if the Friedman results will be reconfirmed. Of course, libertarians do not believe in managing the economy through central banking, but we are stuck with the system we have. Within the parameters of this system, monetary expansion is likely to be more effective than government spending, which just aggravates the problem. Don't you understand that now after two years of failed economic policies?
Daily Bell: You were obviously over-optimistic in expecting responses.
Mark Skousen: (laughing). Somehow even if he were here, I don't think we would have gotten any straight answers. But those are the questions he should be asked, among many others. Maybe one day at a town meeting, someone will get to ask them.
Daily Bell: OK, we've had our President Obama interview. Let's turn the tables and ask you a few general questions. Quite a lot has happened since our last interview with you over a year ago. One of the most puzzling occurrences is the return in the US of discredited Keynesian economic policy – and with a vengeance. How did that happen?
Mark Skousen: Somehow President Obama chose the same policies that didn't work in the 1930s and didn't work in the 1970s. The United States has decided to spend its way out of recession and has adopted this typical Keynesian policy of running huge deficits. Europe is rejecting this sort of policy outright. Germany, and even the UK in its post-Brown recovery, are rejecting this notion and cutting back. My best example is Canada. In 1995, Canada had a fiscal crisis, runaway government spending of 53% of the economy and the Canadian dollar was collapsing. The Liberal Party of Canada, which got them into trouble in the first place, said enough is enough. There was a general consensus that Canada was moving in the wrong direction.
They fired a bunch of federal workers, and in two years eliminated the deficit, so the Canadian debt started declining. Then, even better, they had 11 straight years of surpluses. They also started cutting taxes; and they've had some pretty good success with their economy, even during a tough time worldwide. They still have some problems with their medical, single payer system but, overall, a supply side approach has proven successful in Canada. I would like to think that there are countries that are rejecting the standard Keynesian model. It's hasn't happened in the US, but I am hopeful that we will learn examples abroad.
Daily Bell: Let's move to central banking and fiat money. Do you think we will ever return to a gold standard?
Mark Skousen: I have written a book called The Economics of a Pure Gold Standard. It was actually my dissertation of my PhD at George Washington University in 1977 and I was heavily under the influence of Murray Rothbard who favored a return to the gold standard.
Since then, I have argued that once you have gone off the gold standard it is very difficult to go back on it because it would cause a major redistribution of wealth to the gold holders who tend to be speculators and wealthier individuals. So there would be this redistribution problem that could be pretty serious, especially if gold has to go to $20,000 an ounce in order to really cover that.
I have often said the only way to return to a gold standard is with a major financial crisis, so you we are basically forced to do it. We may be headed in that direction but I think if we automatically did it that would create problems in itself. I like the idea of using gold as a tool. Supply-siders like using gold as an indicator of inflation; if we can control inflation and stabilize our inflation, the price of gold will come back down and that will be the best indicator that we can use. It is interesting that central bankers are net buyers of gold now rather than net sellers like they were. They are holding on because they know it's the only asset that has any real value.
Daily Bell: What about the EU? Is it going to survive?
Mark Skousen: Robert Mundell, the free market economist, the father of the Euro, has made the case for its survival. I know there are a lot of skeptics out there but who wants to go back to all these individual currencies. It was madness and extremely inefficient when you moved from one country to another, losing money on every currency exchange. The euro has two great benefits: It encourages the free movement of goods and services and it increases competition. You can price everything in the euro and you can see what's expensive and what's not; that makes competition much more effective. You also have labour mobility you did not have before; you don't require work permits, so you can work anywhere inside the EU.
England now has much better restaurants, as the French and Germans have moved there and brought palatable cuisine. You can move investments around as well. So I like the one currency, a United States of Europe concept if you like and from an economic point of view I think it is very good. It also, eventually, acts as a brake on these profligate governments. Yes, there are some problems with it right now but it's basically sending a very strong message, you've got to get your act together because you are going to pay a heavy price. You can't simply default; you are part of the European system so you can't engage in these irresponsible spending, tax policies.
Daily Bell: Do you foresee a 3rd party in the United States ever?
Mark Skousen: A third party has never been effective in the United States. I think it is much smarter to work within the Democratic or the Republican Party to make change. All the laws favor the two party systems in the United States. They make it much more difficult for third parties to get on the ballot and really have any influence. Traditionally, third-parties have only been beneficial as a protest and forcing the major parties to make changes. If you go back to the Civil War era, the South was all Democratic because they hated the Republicans so much. Later on, that totally reversed itself; the electorate is fungible. Times change and so do opinions. I think Libertarians should infiltrate both political parties, not just the Republicans or the Tea Party.
Daily Bell: Do you think the US's police and military will ever be turned against the people? In the current environment that is being suggested as a possibility.
Mark Skousen: It's already happening. You have the FBI, a federal police force, virtually everywhere. It is just a monstrous agency and I speak for having been the son of an FBI Agent and the nephew of an FBI Agent; both my father and uncle were top FBI people. My father shot one of the top-ten most wanted men back in 1950. But that was back when the FBI had extremely limited roles to play. The FBI is involved with bank fraud and with almost everything else. You name it; it's classic mission creep. It amazes me. It's not just kidnapping and stuff like that.
And of course there is the army and now the army can come in whenever there is a natural disaster. The National Guard is called in as well. There's so much power available, and the powers-that-be are increasingly showing a willingness to use it. It's definitely something to be concerned about. Just take a look at the vast power the TSA has over travel. It's beyond belief! The other thing I fear is the movement away from the fourth amendment of unreasonable searches. They have these roadblocks that they keep justifying. Every car that goes by, they can stop at these random checkpoints. They can literally just pull you over for no good reason. National ID cards are constantly being pushed as well. There are many examples of "real time" threats to the freedoms of American citizens these days.
Daily Bell: What about the US and China? Military issues in the future?
Mark Skousen: The Chinese are currently building up a huge military complex; I think they have 3 million troops or something. It's a huge number; we'll never know the exact number. But, certainly, they are increasing their technology capability and they are going to flex their muscles, much more so than North Korea or Iran. I think China is the elephant in the room as far as the military is concerned. They haven't really gone after Taiwan, yet. It's all saber rattling but that doesn't mean it can't turn into something more.
Have you ever seen the picture of how much water is surrounding the China sea and how much they consider is theirs? It's not 200 miles – it just keeps going and going. I think there is some imperialism there. I think, in fact, it's a very dangerous situation. The industrial sector has grown and it's allowing them to spend more and more on their military objectives. There's the potential for real conflict there.
Daily Bell: Strange times. What advice would you offer for the people to protect themselves financially?
Mark Skousen: I do think we should play the trends and when the market recovers we should take full advantage of that, I certainly have. In my newsletter I have taken advantage of the good times, the recovery that you see from time to time. A lot of the doomsday, gold bugs completely missed their recovery in the stock market. I like to play that because a lot of investors feel more comfortable with stocks I don't recommend investing too much in commodities, which is a non-traditional investment area.
So my subscribers tend to be more traditional investors. What I try to do is introduce to them investing in commodities, gold and silver and so on, but only a 10% position, it's an insurance policy against bad times, so that includes gold and silver. So I am always educating people that way. I encourage them to buy gold and silver coins and to aware of the bad news that can come down the road. But the majority of my investments are in foreign markets or in US markets and in dividend paying stocks and income producing investments and so forth.
We have had a very good track record the last few years with beating the market and doing well for them. But the tide can change and right now we are seeing a lot of problems developing. It's funny how everybody feared that September and October which are traditionally tough months in the market and those did really well and now we are heading into December and now seeing all kinds of problems surface – the Irish debt situation, China raising interest rates, the North Koreans fighting the South Koreans; there's a lot of geo-political events which are keeping the markets from going higher, despite the Federal Reserve's efforts to inject all this liquidity.
So, I have always believed in that old biblical refrain: know the signs of the times. I've tried to follow that advice in my newsletter called "Forecasts and Strategies." My philosophy basically is that problems come and go, but I have always been more of an optimist rather than not. There is an old saying on Wall Street: "bears make headlines and bulls make money." The majority of time Americans are problem solvers; the sun eventually comes out again. Traditional bond and stock markets perform better. It would be sad commentary if we didn't have that kind of situation. It would be like being a millionaire on a sinking ship. Who wants to be a millionaire on the Titanic? So, I am optimistic that we will get new leadership, reasonable policies and sound economics. It has happened in the past, as I mentioned. Canada is the most recent example and I would hope that it can happen again.
Daily Bell: That sounds like your book Econopower, do you want to talk about it?
Mark Skousen: Yes, the Korean edition. They paid me $100,000 in advance for Econopower. That book was about solving problems. Whatever problems are out there, economists can add to the solution. The South Koreans are very strong on economics and how to use them to their advantage. I have a chapter in the back that Robert Shiller of Yale University really liked and it's called "Is US Economy Depression Proof?" I wrote this right before the financial crisis of 2008, in which I argued that it's not depression proof and that we are vulnerable. We have a monetary system that is broken and it's not really a good one and it needs to be fixed. Sure enough we had a financial crisis and the whole system came close to collapsing. The only thing that kept it from total collapse was massive government intervention again. The establishment had always argued that we were depression proof; that the system was the best of all worlds. Doesn't seem to be the case, obviously.
Daily Bell: What else have you written lately?
Mark Skousen: I've written a textbook called Economic Logic. It's always my hope that the US will get leaders with an understanding of real economics. President Obama needs a course on free market economics. Economic Logic takes a logical approach; it mixes business with economics. It starts with an income statement, a profit and loss statement, and then develops into supply and demand analysis.
I use the best of Austrian and Chicago economics and now it's being used in a number of colleges and universities around the country. It's encouraging. You will not change the politicians until you educate the people who elect them. It's kind of my anti-Samuelson textbook. Samuelson was this Keynesian economist at MIT, who at the end of WWII wrote his economic text book that introduced Keynesian economics and this anti-savings mentality – this pro big government, welfare state, pro-progressive taxation kind of zeitgeist from which we still suffer. So we need a new textbook for the 21st century to reverse that trend and get us back to sound economics. The reality is free-market economics is not taught to children or even to older students. We need to start somewhere.
Daily Bell: What is out there for students who want to get a general idea about economics besides college text books?
Mark Skousen: There is a website run by Steve Marriotti called Network for Teaching Entrepreneurship (NFTE). They teach entrepreneurship and how to create your own businesses and business models. They have a text book that's geared toward minorities. It's a great program. I am hoping this can be another area where we can spread the word to students.
Daily Bell: Closing words?
Mark Skousen: Do not despair. Do not think that our current mess is irreversible, that our economy is headed for total destruction, which is a constant message from gold bugs and doomsayers. I am trying to counter that view and I am trying to do something through education. As you know, we have created FreedomFest and it's not my conference alone, though I created it. It's the "movement's" conference. You bring together all the best and the brightest in Las Vegas, the world's greatest libertarian city. We have this great celebration and learn from each other; we celebrate liberty; we warn each other about the dangers to liberty and we do business and make deals and walk away and say WOW, we can make a difference. So, come on down! It's an open forum. We like new people and new speakers. We have Steve Forbes (Forbes Magazine) and John Mackey (CEO of Whole Foods) who both work tirelessly to spread the word. It's a great opportunity to meet and greet and there are others out there who feel the same. So, go to www.FreedomFest.com and learn more. Hope to see you there.
Daily Bell: Thank you Mark, it has been a pleasure as always.
Mark Skousen: Thanks, same here.
Mark Skousen wanted to ask President Barack Obama some questions. Here are some we would like to ask based on a recent World Net Daily article. (All quoted material from WND.)
Why won't you release your Noelani Elementary School records?
"No records have been released by the school. Noelani Elementary School despite requests."
Why won't you release your Punahou School records?
"Though from a modest background, Obama began attending the prestigious Punahou School in Honolulu, one of Hawaii's top private institutions. He reportedly received a scholarship and attended the school from the fifth grade until he finished high school, though no financial records have been released. The Boston Globe reported, "In 1979, the year Obama graduated, tuition for high school students at Punahou was $1,990, a sizable expense compared with Hawaii's median family income of $22,750 that year. "
Why won't you release your Occidental College records?
"Obama attended the school on a scholarship. Some question whether the financial aid he received was reserved for foreign students. Financial records have not been released."
Why won't you release your Columbia University records?
"Obama transferred from Occidental College to Columbia University in 1981, at the age of 20. According to the New York Times, Obama "suggests in his book that his years in New York were a pivotal period: He ran three miles a day, buckled down to work and 'stopped getting high,' which he says he had started doing in high school. Yet he declined repeated requests to talk about his New York years, release his Columbia transcript or identify even a single fellow student, co-worker, roommate or friend from those years." Campaign spokesman Ben LaBolt told the newspaper in October 2007, "He doesn't remember the names of a lot of people in his life." Fox News made contact with 400 of Obama's classmates. No one remembered him. According to the New York Sun, a program from Columbia's 1983 commencement ceremony lists Obama as a graduate. University spokesman Brian Connolly confirmed that Obama graduated with a major in political science but without honors. Nonetheless, he was later admitted to Harvard Law School. With less than stellar marks upon his graduation from Columbia, Obama was accepted into Harvard Law School."
Why won't you release your Harvard Law School records?
"WND columnist Jack Cashill wrote, 'If Obama's LSAT scores merited admission (to Harvard), we would know about them. We don't. The Obama camp guards those scores, like his SAT scores, more tightly that Iran does its nuclear secrets.' According to Politico, Obama's name does not appear on any legal scholarships during his time at Harvard. His campaign reportedly said his Harvard education was a product of hard work and student loans. Obama graduated magna cum laude in 1991."
Why won't you release scholarly articles that you authored at the University of Chicago law school?
"Obama lectured at the University of Chicago Law School, a top school where the faculty is known for voluminous scholarly publishing, from 1992 until 2004. The university offered Obama a full-time tenure-track position, an honor typically reserved for published instructors. However, reporters have been unable to find scholarly articles authored by him. The university reports that Obama declined the tenure offer. Sarah Galer, news editor at the Law School and Harris School of Public Policy at the University of Chicago, told WND, 'President Obama wrote Dreams from My Father while at the law school but did not produce any scholarly articles as far as I know.'"
Why won't you release your medical records?
"During his first presidential campaign in 1999, Sen. John McCain released 1,500 pages of medical and psychiatric records collected by the Navy. In 2008, McCain allowed reporters to spend three hours sifting through 1,200 pages of health records. [You] simply provided a six-paragraph note from his physician briefly summarizing 21 years of doctor visits and health information. The letter contained no supporting documentation."
According to additional records listed at The Obama File, other documents that remain unreleased include:
• Complete files and schedules of his years as an Illinois state senator from 1997 to 2004
• Obama's client list from during his time in private practice with the Chicago law firm of Davis, Miner, Barnhill and Gallard
• Illinois State Bar Association records
• Baptism records
• Obama/Dunham marriage license
• Obama/Dunham divorce documents
• Soetoro/Dunham marriage license
• Adoption records
• Birth certificate
"Where's the proof Barack Obama was born in the U.S. or that he fulfills the 'natural-born American' clause in the Constitution?"
Posted by Acudoc on 11/29/10 02:54 AM
"Since then, I have argued that once you have gone off the gold standard it is very difficult to go back on it because it would cause a major redistribution of wealth to the gold holders who tend to be speculators and wealthier individuals. So there would be this redistribution problem that could be pretty serious, especially if gold has to go to $20,000 an ounce in order to really cover that."
It is true that initially, those with the gold would have more buying power, but I can't get around the beauty of the gold/silver money system: once a gold or silver coin (or a paper note with 100% redeemability) leaves the hands of a banker it goes into the hands of a seller and ownership has changed.
Society at least has the option to wrest control from the banks. Under our present system money must eventually return to a bank to pay off some loan, at which time it is extinguished and new loans must be brokered to keep the money supply constant.
Posted by Zenbillionaire on 11/29/10 02:51 AM
When can we expect an interview with Leo Strauss?
Posted by Jay Schmidt on 11/28/10 10:42 PM
Those damned gold bugs! lol
Let's hope these sorts of interviews are in the extreme minority here at TDB. Though I must say I love this site! Keep up the good work, and don't fall into that "moderate" camp of "libertarians" who read the Wall Street Journal and Economist.
Reply from The Daily Bell
"Don't fall into that "moderate" camp of 'libertarians' who read the Wall Street Journal and Economist."
Hm-mm, longtime reader are you?
Posted by Ryan on 11/28/10 10:33 PM
Here is a brilliant combination of two memes: water shortage and climate change.
Click to view link
Reply from The Daily Bell
Thanks, we noticed several other articles recently making the same conflation. "They" can't help themselves? ...
Posted by Jahfre Fire Eater on 11/28/10 09:44 PM
While Dr. Skousen was unquestionably correct that the USA will NEVER have a viable third party, he didn't explain why very well. Perhaps he really doesn't understand that in detail himself. But that's a topic for another day.
Getting back to this article's contents: there is no value, or likelihood, that libertarians will (or should) infiltrate the Democratic Party. The party of unlimited government spending and oppression, elitist, centrally planned social engineering has absolutely no possibility of becoming a limited government, citizen-oriented diversity-fostering party for political change.
For libertarians to infiltrate the Democratic Party would be a complete waste of potentially useful political resources. Many, perhaps most, folks fail to recognize the crucial difference between limited government and "small" government. The Democratic party will never embrace either but they will toss bones to the small government crowd when it is politically expedient to do so. They will NEVER embrace limits on government because the very notion of limits is antithetical to their dogmatic faith in government.
The GOP, while no much better since its current and recent leadership adopted every progressive tactic they learned from the Socialists and Democrats, still has a strong core of limited government advocates. They just currently have very little influence and practically no leadership or examples to follow except for Ron Paul, of course. Yet, absurdly, most libertarians and ALL Libertarians fail to grasp the power in the example set by Dr. Paul.
The only hope for political change lies in the following very simple, nearly impossible individual choices:
1. Choose to act as an individual in your local county or city GOP by grooming, vetting and vigorously promoting limited government fiscal conservatives who are not prone to abandon those principles when faced with their religion-based fear of anyone who does not share their faith.
2. Choose to abandon the ego-centric attitudes that demand instant or near-instant gratification for their political resources and energy expended. Defending liberty must be done regardless of anything that happens, good or bad, to the state of liberty along the way. Yeah, maybe change will not happen in one's own lifetime. Suck it up weenies and do the necessary grass roots work anyway.
3. Choose to drop the evangelical approach with which you hope to "wake up" people. Assume everyone is awake and alert and intelligent then give them a reason to engage in politically constructive behavior. Skip the evangelism and jump right to the, now lets get busy. If you are the only one who follows your example, that is one more than was doing so before you dropped the evangelism. If some really are and choose to remain asleep, complacent and ignorant, so be it. They can't help defend your liberty so don't waste another moment or penny trying to change them.
These three things define the self-righteous self-marginalization and resulting political futility characteristic of some libertarians and ALL Libertarians today.
The current crop of politicians who embody the US government must be replaced. Just as one cannot buy a used Pinto and shame it into being a new Porsche, the current crop of politicians and candidates cannot be shamed or enlightened into behaving differently. They are products of the system they defend; the system that created them. We need new products, candidates, to be created to replace the current office holders AND the current candidate pipeline from the bottom up.
Splitting libertarians into Democratic Libertarians and Republican Libertarians is just another victory for the divide and conquer strategies of the progressives who currently control both major parties.
Reply from The Daily Bell
You seem to have given these issues some thought. Thanks.
Posted by Ingo Bischoff on 11/28/10 09:39 PM
I am glad to read your response.
Had the U.S. agreed in 1949 to the demand by German Finanz Minister Dr. Earhardt to back the new "Deutsche Mark" with gold, there would not be a "Euro" problem today.
...but that is what you get when you lose a war. Ask the Japanese. How many times did they have to value the Yen up...???
Posted by J.D.Beck on 11/28/10 08:08 PM
No I was speaking about the insulting low minimum wage in the US... I do know Germany is not what it once was (particularly from 1948 to about 1978)...when the lowest of wage-earner could live in a decent home, when Labour and employer worked reasonably well together, moreover when even the poor could afford a holiday...if you compare this to the US...there is a world of diffrence.
High Taxes today in Germany are in part due to the fact Germany has to feed the rest of the EU....perhaps this is Karma... as Albert Camus so clearly showed in his 4 letters in 1944/45 to an imaginary German friend...
Posted by Tigellinvs on 11/28/10 07:49 PM
So we're pretending the US president has the power to do anything other than stay the course that was already set for him. I've never voted because I recognized in college that these presidents will never do anything beneficial for regular working people.
Five questions for Obama? Might as well be five questions for Milli Vanilli. The people you want to confront with serious questions, the ones who make the policy decisions, don't entertain questions.
The fact that he wasn't born in the US is just like the Patriot Act and the North American Union treaty Bush signed. The ruling elite is telling you to your face the constitution is void, that it no longer applies. And every day he sits in office as a foreign born president and nothing happens, the concept that US citizens actually have no rights sets in further.
Same thing with the bank bailouts and the overturning of the Arizona immigration law. The government gently, but firmly, went against the will of nearly all of the American people. People are scared to fathom what would happen if they gently pushed back. Gonna have to find out if we want that constitution back enforced. No way around it.
Posted by Ingo Bischoff on 11/28/10 07:24 PM
"Lower Taxes and put more $ in the hands of the people is the answer...(view the German system)"
Are you advocating the taxation system which Germany pratices...??? I hope not.
Posted by Lila Rajiva on 11/28/10 06:40 PM
I forgot. The name Dr. Doom, given to Roubini, was much before him attached to Marc Faber, another figure well in advance of Roubini.
Posted by Lila Rajiva on 11/28/10 06:29 PM
I find it amazing that Dr. Skousen, who is an important part of the Agora Inc. network of newsletters (as far as I know), does not mention the work of The Daily Reckoning or of Doug Casey and many others, also of the same network, in predicting the financial crisis. Or of the work of Mark Thornton, at LRC, among others.
Forget about "Mobs" (2007) which came out just after Peter Schiff's excellent book. What about Empire of Debt (2005) or Financial Reckoning Day (2002), much before Roubini?
What about Robert Prechter, to name the best known deflationist? I can name half a dozen more.
Extremely insightful. But not, perhaps, in a way that was intended.
Posted by Jacob on 11/28/10 04:31 PM
I must take exception to your STIMULUS PACKAGE characterization, as it omits a most salient aspect: the bailout and stimulus funds originating from the Federal Reserve were merely new debt iterations replacing debt for debt. Hence debt wasn't extinguished by these funds, just exchanged for a new more amorphous debt, somewhat like spreading EPA superfund toxic sludge all across the land to make it seem to disappear.
Posted by Robert on 11/28/10 04:10 PM
I just love it! You commentary and interviews are becoming more vigorous and "on point". Hopefully this "vigor" will continue in congress...there currently exist more than sufficient grounds to bring forth articles of IMPEACHMENT!
Although unstated in this interview and commentary, there are many prominent individuals clearly stating that attempts to "educate" barry in sound economics is actually missing the real point. Barry's background strongly suggests that he has been indoctrinated to dislike America, Free Markets, and the concepts of American Exceptionalism. They further state that his actions and those of his "administration" are intentional and a deliberate attempt to destroy the economic engine and the middle class of this country.
We are left with the conclusion that he and his ilk are either incompetant, deliberately destructive (or both). Regardless, total reversal or destruction of the "Health Care Corruption" legislation and other untenable action coupled with significant reduction in government and Taxes must be accomplished at the earliest possible time to correct the economic course of the country.
Thank you DB!!
Stay strong and keep it coming!
Reply from The Daily Bell
You commentary and interviews are becoming more vigorous and "on point".
Thanks Perhaps it is practice.
Posted by MetaCynic on 11/28/10 04:08 PM
There seems to be much mystery surrounding Obama's background. A while ago I had heard a story from an acquaintance who used to regularly shoot baskets with Obama at Chicago's East Bank Club at the time that Obama was still a state senator. Curious about Obama's strange name, my acquaintance inquired about his ethnic background. He was told told by Obama that his mother was French and his father Algerian!
Posted by MetaCynic on 11/28/10 03:56 PM
As Skousen points out, the Euro is convenient because everything is priced in the same currency. But that's where its value ends. Europe had a single currency 100 years ago " gold. How is the Euro today an improvement on it?
Isn't it interesting that the personal history and current activities of our selfless public servants are always shrouded in secrecy, yet in all matters of privacy, we the masters are at all times figuratively and now even literally stripped naked by our servants?
Reply from The Daily Bell
Another insight. Thanks.
Posted by Herbert on 11/28/10 03:25 PM
Exciting thread of comments today, truly stimulating! The interview with Mr. Skousen was very informative, and the comments about Obama's stimulus packages met with an Email I received from a friend in Germany this morning, which I will share with you here:
It is a slow day in the small Saskatchewan town of Pumphandle, and streets are deserted. Times are tough, everybody is in debt, and everybody is living on credit.
A tourist visiting the area drives through town, stops at the motel, and lays a $100 bill on the desk saying he wants to inspect the rooms upstairs to pick one for the night.
As soon as he walks upstairs, the motel owner grabs the bill and runs next door to pay his debt to the butcher.
The butcher takes the $100 and runs down the street to retire his debt to the pig farmer.
The pig farmer takes the $100 and heads off to pay his bill to his supplier, the Co-op.
The guy at the Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her "services" on credit.
The hooker rushes to the hotel and pays off her room bill with the hotel owner.
The hotel proprietor then places the $100 back on the counter so the traveler will not suspect anything.
At that moment the traveler comes down the stairs, states that the rooms are not satisfactory, picks up the $100 bill and leaves.
No one produced anything. No one earned anything. However, the whole town is now out of debt and now looks to the future with a lot more optimism.
And that, ladies & gentlemen, is how a Stimulus package works.
The above is a very simplistic explanation of what happens when people have money to spend. It reminded me of a thesis I wrote forty years ago about the multiplier effect of "tourism dollars" making their rounds when people travel to other places. But it is not limited to tourists, it applies to everybody.
One thing I noticed is that so many journalists, as well as Mark Skousen, constantly refer to Obama as a "brilliant speaker". I do not get it. Take away his teleprompter and you have a mumbling, stumbling hodge-podge of improvisation, as was documented on TV on one occasion this year.
Also, he barks most of the time, like a person on the defense, which is quite typical for people of his background. Listen to the speeches of Martin Luther King, always accusing the white people of their treatment of the black folks.
I heard the same accusing sounds on the south side of Chicago, which was a part of my job territory when I came to these United States from Germany in the 60's. I was just another "Whitey", even though I had no racial bias whatsoever. Last night I saw a documentary of the Republican Party, and heard some of Ronald Reagan's speeches. No wonder they called him the "Communicator". Obama should take some lessons, if he wants to be what the liberal press and others portrait him as " a brilliant speaker!
Lastly, as a former airline manager I am appalled when I see what this government has done and is doing to the traveling public, and to the airlines. Let these companies return to policing their own business. After all, it is their investment they need and want to protect in order to survive, and to grow and prosper. Why does the government have to stick its nose into this private enterprise?
Mr. Skousen is correct, we do need to worry about this country becoming a police state, and the TSA is already a typical example of the power-grabbers in Washington.
Footnote to TDB: Since I do like opposing views and enjoy a good discussion, I would like to receive more information about your first conference in April. Thank you.
Posted by Lila Rajiva on 11/28/10 02:48 PM
Proportion of truth to marketing very low these days. Lever should return to 10:1... and society won't crash.
Posted by Bill Ross on 11/28/10 02:00 PM
"how to achieve influence"
Does not necessarily imply marketing. There are many ways to do so, the TRUTH is most potent. "Marketing Science" is a gimmick, how to take advantage of mis-perceptions of the "marks" to sell something with zero or negative value.
THINK about it:
Click to view link
Posted by Ted Berthelote on 11/28/10 01:56 PM
All points well made. I appreciate the humor :-)
Posted by Howard Bernbaum on 11/28/10 01:52 PM
While the interview with Mark Skousen was interesting and informative, your follow-on questions regarding BHO caught my attention.
I've seen these same questions on the web in the past and was outraged at BHO's non response. Indeed, at the amount of money he spent covering up.
However, it occurs to me my wrath was somewhat misdirected. The real fault lies with the politicians who have aided and abetted his possibly illegal ascendency to the presidency. I echo Jefferson who intimated the largest potential danger to the American people was with a government which shirked its Constitutional responsibilities and obligations; namely egotistical self serving power and money mad politicians who protect BHO while protecting their own turf, American citizens be damned.
Reply from The Daily Bell
It is certainly discouraging not to have any answers. It makes one wonder ...