Victor Davis Hanson analyzes the decay of America institutions — from politics and education to the military and law enforcement — and asks “at one point does America hit it’s breaking point”

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There are 11 comments.

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  1. RufusRJones Member
    RufusRJones
    @RufusRJones

    This is a really good discussion on inflation in the manner that Victor is talking about. It will cost you a dollar to see it.

     

     

    Just for the record, I don’t see how we don’t end up with a big global inflation, simply because it’s more politically palatable than the alternative. Having said that, it’s really hard to make a reserve currency hyperinflate. We are a lot of steps away from that.

     

     

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  2. RufusRJones Member
    RufusRJones
    @RufusRJones

    This guy clipped a lot of the conversation for everybody.

     

     

     

     

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  3. RufusRJones Member
    RufusRJones
    @RufusRJones

    Before I forget it, I have an opinion about how a democracy with a discretionary central bank regime has to operate. 

    If you have to do this, which you kind of have to because of geopolitical issues, the information has to be better for the public.  The way to do this is they should have at least a dozen different inflation measures put up in Times Square at all times along with the interest rate that breaks the government.  If people were aware of that, there would be a limit to the dumb things government could do. 

    The idea that there is one CPI measure that is functional or that the government doesn’t lie about it is idiocy.

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  4. RufusRJones Member
    RufusRJones
    @RufusRJones

    Try to shoot holes in this. Good luck. The other thing is this guy describes very well how government robs agency from people and more or less why conservatism and libertarianism just can’t work or sell under this central bank regime.

     

     

    People on the right need to be realistic about automation and trade when the government and the financial system requires inflation at the same time. It’s nuts. It’s a freight train to communism.

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  5. RufusRJones Member
    RufusRJones
    @RufusRJones

    This guys proposals are more statist, but he lays out the issues really well.

    When you hear the word “duration”, if you don’t understand what he’s talking about, get a friend that is in finance to explain it. It was madness for the Fed to force interest rates lower.

     

    https://investresolve.com/podcasts/mike-green-the-fourth-turning-and-reimagining-the-american-dream/

     

     

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  6. RufusRJones Member
    RufusRJones
    @RufusRJones

    I’m pretty sure this is true. For 3000 years the “agency” economy was consistently 15% of GDP. So these are intermediaries like banking, finance, real estate agent, head hunters, etc. Now the United States is supposedly 35%. A financial-ized economy instead of producing.

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  7. RufusRJones Member
    RufusRJones
    @RufusRJones

    We’re Living in the Age of Capital Consumption

    When capital is mentioned in the present-day political debate, the term is usually subject to a rather one-dimensional interpretation: Whether capital saved by citizens, the question of capital reserves held by pension funds, the start-up capital of young entrepreneurs or capital gains taxes on investments are discussed – in all these cases capital is equivalent to “money.” Yet capital is distinct from money, it is a largely irreversible, definite structure, composed of heterogeneous elements which can be (loosely) described as goods, knowledge, context, human beings, talents and experience. Money is “only” the simplifying aid that enables us to record the incredibly complex heterogeneous capital structure in a uniform manner. It serves as a basis for assessing the value of these diverse forms of capital.

     

    Modern economics textbooks usually refer to capital with the letter “C”. This conceptual approach blurs the important fact that capital is not merely a single magnitude, an economic variable representing a magically self-replicating homogenous blob but a heterogeneous structure. Among the various economic schools of thought it is first and foremost the Austrian School of Economics, which stresses the heterogeneity of capital. Furthermore, Austrians have correctly recognized, that capital does not automatically grow or perpetuate itself. Capital must be actively created and maintained, through production, saving, and sensible investment.

     

    Once a stock of capital has been accumulated, it is not destined to be eternal. Capital is thoroughly transitory, it wears out, it is used up in the production process, or becomes entirely obsolete. Existing capital requires regularly recurring reinvestment, which can usually be funded directly out of the return capital generates. If reinvestment is neglected because the entire output or more is consumed, the result is capital consumption.

    It is not only the dwindling understanding of the nature of capital that leads us to consume it without being aware of it. It is also the framework of the real economy which unwittingly drives us to do so.

     

    At the same time, the all-encompassing redistributive welfare state, which either directly through taxes or indirectly through the monetary system continually shifts and reallocates large amounts of capital, manages to paper over the effects of capital consumption to some extent. It remains to be seen how much longer this can continue. Once the stock of capital is depleted, the awakening will be rude.

     

    https://mises.org/wire/were-living-age-capital-consumption

     

     

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  8. I Walton Member
    I Walton
    @IWalton

    Are we capable of stopping the insanity or are they going to just take over and ignore reality and the rest of us.  Do we have a choice?  Not for long as the military will be shaped to prevent any effort to form a sane alternative.  A sane alternative is a new nation formed from sane states and pieces of insane ones.  It doesn’t have to happen, but if we don’t move toward it and show the capacity to form it, we may lose everything.  They stole the election when we held the White House.  What will they do when they have both the White House, the military and half the states? 

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  9. I Walton Member
    I Walton
    @IWalton

    RufusRJones (View Comment):

    Try to shoot holes in this. Good luck. The other thing is this guy describes very well how government robs agency from people and more or less why conservatism and libertarianism just can’t work or sell under this central bank regime.

     

     

    People on the right need to be realistic about automation and trade when the government and the financial system requires inflation at the same time. It’s nuts. It’s a freight train to communism.

    Wish I knew enough to argue with him. Did I miss discussion of gold in this?  What role does it play?

    • #9
  10. RufusRJones Member
    RufusRJones
    @RufusRJones

    I Walton (View Comment):

    RufusRJones (View Comment):

    Try to shoot holes in this. Good luck. The other thing is this guy describes very well how government robs agency from people and more or less why conservatism and libertarianism just can’t work or sell under this central bank regime.

     

     

    People on the right need to be realistic about automation and trade when the government and the financial system requires inflation at the same time. It’s nuts. It’s a freight train to communism.

    Wish I knew enough to argue with him. Did I miss discussion of gold in this? What role does it play?

    That’s a good question. Gold is deflationary like bitcoin, so I think he’d be OK with it. They have different pluses and minuses. 

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  11. RufusRJones Member
    RufusRJones
    @RufusRJones

    It’s been along time since I’ve seen this, but I thought this was really good. 

     

     

     

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