I refuse to fly until this is cleared up

by Mr. Bob | 10:25 am, November 17, 2010

#tsagrope #redco #tcotAs a member of the military I have voluntarily given up a lot of my rights, including privacy to my medical records, background checks and a lot more. But until someone can assure me some photo of my children (or me for that matte…

GM IPO to price tonight

by Rossputin | 9:32 am, November 17, 2010

For a few quick thoughts on tonight’s IPO of Government Motors, please see my blog note for the American Spectator:

http://spectator.org/blog/2010/11/17/gm-ipo-to-price-tonight

Should states oppose ObamaCare’s insurance exchanges?

by Brian Schwartz | 7:00 am, November 17, 2010

States establishing Obamacare exchanges are making a one-way, lose-lose bet. If Obamacare persists, exchanges will become bloated administrative nightmares. If Obamacare is defeated, states will have wasted time and energy that should have been directed towards that effort. Obamacare is President Obama’s problem. Don’t make it your state’s, too.

Can We Spare Denver Passengers TSA?

by Joshua Sharf | 12:12 am, November 17, 2010

By now, pretty much everyone has heard about John Tyner, the Oceanside, CA man who reasserted his individual dignity by refusing to submit to either the option of groping or self-pornification in the service of what Reason‘s Matt Welch (and now, Rep. John Mica (R-FL) calls, “security theater.”  You know, the fellow that TSA has [...]

Professional Ghostwriters and the Failure of Education

by PerlStalker | 8:40 pm, November 16, 2010

Mental_floss has a post today citing an article in the Chronicle of Higher Education about the life of a professional ghostwriter.

He’s also written graduate thesis papers, completed entire courses online and participated in online “class discus…

11/11 Pt 1 – Discussion with bloggers Elliot Fladen and Bob Clark on the 2010 elections, new media, and more

by Jimmy Sengenberger | 8:00 pm, November 16, 2010

In Part One of the 11/11 edition of Seng Center, host Jimmy Sengenberger is joined by bloggers Elliot Fladen of PeoplesPressCollective.org and Bob Clark of TheBobHatter.com for a wide-ranging discussion on the big political issues of the day, from th…

More Fallout From Tancredo’s Run

by PerlStalker | 7:44 pm, November 16, 2010

Lu Ann Busse passed on this interesting tidbit. It seems that Tom Tancredo’s candidacy combined with Dan Maes’ poor showing has dramatically changed the make up of the Colorado Republican Central Committee. For the first time in a really long time, the…

11/11 Pt 2 – My take on the deficit commision’s proposal, Speaker Nancy Pelosi and the oil spill investigations & San Francisco toy ban, plus a tribute to veterans

by Jimmy Sengenberger | 6:00 pm, November 16, 2010

In Part Two of the 11/11 edition of Seng Center, host Jimmy Sengenberger presents his take on four different topics: the initial proposal from the President’s deficit commission, Nancy Pelosi’s Minority Leader bid and food stamp claims, two news bits r…

"You must unlearn what you have learned."

by David K. Williams, Jr. | 3:29 pm, November 16, 2010

-YodaThose of us that believe in a federal government limited by the U.S. Constitution are in a small minority. Most Americans want to keep sucking on the government teat until it’s dry. They want to keep running up the credit card debt until they hit…

QE2 explained by a teddy bear and a kitten

by Rossputin | 12:54 pm, November 16, 2010

Three different people have e-mailed me this video in the last few hours, getting over 75,000 views in that time and now well over 800,000 total views since being posted 4 days ago. You have to love it when a discussion of monetary policy and the Fed goes viral. That’s when you know that the Fed has some serious credibility problems. And, unlike with Congress, there are serious consequences to when the US’s central bank loses credibility.

http://www.youtube.com/watch?v=PTUY16CkS-k

Breaking: Charlie Rangel convicted of ethics violations

by Rossputin | 10:57 am, November 16, 2010

It’s still a breaking story, but the House subcommittee which was investigating Charlie Rangel has convincted him on some number of the 13 charges against him.  The House Ethics Committee will make a recommendation to the full House regarding punishment which could range from a scolding to expulsion…

UPDATE: Rangel was convicted on 11 of 13 charges:
http://thehill.com/homenews/house/129407-house-ethics-panel-convicts-rangel-on-multiple-counts

Balance of Power on Congressional Redistricting & Legislative Reapportionment rests with Bender, Colorado Supreme Court

by CTBC Director | 9:12 am, November 16, 2010

“Amateurs study tactics, professionals study logistics.” (Military aphorism, variously attributed)
Translating from the military vernacular to the political, “amateurs” focus on short-term electoral gains (transitory shifts in legislative majorities or changes in who holds political office) while “professionals” focus on building long-term institutional and philosophical shifts – holding the “high ground” and winning the “hearts and [...]

Market to Fed: Take your QE2 and shove it

by Rossputin | 8:37 am, November 16, 2010

Over the last several days since the Fed announced the start of and actually began its monthly reckless printing of tens of billions of dollars through its second quantitative easing program of this economic downturn, the market has been decidedly unimpressed, at least with the Fed’s stated goal of lowering medium-term interest rates.

Over the last two weeks, the yield on the five-year note has gone from about 1.15% up to 1.49%.  In that same time period, the yield on the 10-year note has risen from 2.6% to over 2.9%.  In percentage terms, those are very large moves in a very short time, not least because we’re talking about government securities.

Chart of five-year yield, yield multiplied by 10 (Symbol FVX)

Keep in mind that while I’m not a Ph.D. economist, it seems to me that the Fed has two nearly mutually-exclusive goals: To stoke a little bit of inflation and to simultaneously flatten the yield curve, i.e. to bring down rates of interest-bearing government securities of duration better measured in years than in weeks or months.

If they’re successful at one, they almost by definition must fail at the other.  The question is which one they care about more.

Putting aside the legitimate question of whether the Fed should exist, let’s assume that it does and it’s going to for the foreseeable future.  The Fed’s mission statement includes “conducting the nation’s monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates.”

Many people, including me, think that the Fed’s role should not including focusing on employment but on stability and a sound (which is not to say always appreciating or overly strong) currency.

If the Fed thinks it’s going to help employment by forcing people to do something with their cash other than park it in so-called interest-bearing accounts by forcing those interest rates down, they are taking a huge risk regarding the other two parts of the mission statement (stable prices and moderate long-term interest rates) by perhaps stoking inflation, perhaps risking much more inflation than they actually want to see.

In public, the Fed has made more noise about wanting to stoke the economy and boost employment, with the idea of promoting modest inflation (a through-the-looking-glass goal for a central bank if ever we’ve heard one) being a second-tier motivation.

So far, however, the market is reacting as if they’re getting worried about inflation as shown by a spike in medium-term interest rates.

Furthemore, to the extent that the Fed wants to boost employment by the creation of export-related jobs, something Barack Obama and his dangerously inept Treasury Secretary, Timmy Geithner, just spent 10 days pushing for, with little success, in Asia, the market is also responding with a sharp “I think not” (to put it politely) as shown in the steady rise of the US Dollar in the last week.  It should be noted that pushing the Chinese to raise their currency while supporting the Fed’s efforts (even if ineffectual) to weak our currency is transparently hypocritical.  Furthermore, to the extent that the Chinese currency strengthens, it will not create any jobs in the US; those jobs manufacturing low-value-added products which become a little more expensive in RMB terms will simply move to Vietnam and Thailand, not to South Carolina or Ohio.

Chart of FXE (ETF which holds Euros and trades close to the actual forex price of the Euro)

It’s no surprise that many economists and economic historians oppose the Fed’s unprecedented QE2 actions which in my view have far more likely risk than reward.

Yes, QE2 has some supporters, such as Alan “I was right once before” Blinder, who wrote THIS defense of Bernanke for the WSJ.  Fortunately, we have GMU econ professor Larry White who takes Blinder apart with a moderate dose of economic sarcasm.

The only good news for the Fed is that the debasement of our currency which so many of us fear is, at least for now, not showing itself.  This is certainly partly because Europe has its own economic troubles, including the possible need for a bailout of Ireland (and then who knows which domino will be next?).  But the higher long-term rates are supporting the dollar, as they should.

Now Bernanke has two real choices:  Back off on QE2, recognizing that it’s not doing what they want it to do. Or, in a typical Keynesian style, argue that they just need to do it even bigger to get it to work.

Ben Bernanke’s recent moves strike many, including certain regional Federal Reserve Bank presidents, as unnecessary and risky.  Perhaps the market will prove that to him soon enough that he’ll back off the dangerous and wasteful QE2.  But even that path now poses its own risk of making the Fed look overly reactive and underly competent – which they are.  Helicopter Ben risks going down as one of the worst Fed Chairman in modern history if he doesn’t figure something out, and fast.

What Republicans can do about ObamaCare

by Brian Schwartz | 7:00 am, November 16, 2010

Republicans will have a majority in the U.S. House of Representatives next year. Michael Tanner at Cato outlines what they can, and cannot, do to stop ObamaCare (HR3590).

Congratulations to Michelle Pearson, Colorado’s 2011 Teacher of the Year

by Eddie | 11:26 am, November 15, 2010

With a little snow finally starting to fall around here, it’s time to go outside and play. So instead of any sort of grand analysis today, I just want to extend my congratulations to Michelle Pearson — who last week was named Colorado’s 2011 Teacher of the Year:
Pearson comes from a teaching family; both the [...]

Join me tonight at Liberty on the Rocks (Red Rocks) at Old Chicago in Lakewood

by Rossputin | 8:47 am, November 15, 2010

Please join me and Ryan Call (Chairman of the Denver GOP) as we’re the invited guests to speak at and, more importantly, speak with the Liberty on the Rocks (Red Rocks) Happy Hour group this evening.

The event is at Old Chicago, 145 Union Blvd, Lakewood, Colorado, roughly from 5 PM to 7 PM, with the speakers usually starting a little before 6 PM.

THIS LINK should work for a map.

I’m looking forward to discussing the current political landscape with an active Tea Party (or at least Tea Party-leaning) group.  It should be a lively conversation and I hope you can join us!

Also, for those of you who are interested, the Centennial Institute is putting on a panel about the impact of new media in politics and how you can be involved.  It’s also in Lakewood and starts at 7 PM, so the timing to go to both events this evening couldn’t be better!  Speakers at the Centennial Institute event will include Michael Sandoval, Kelly Maher, and Stephen Keating.  More info, including map, here: 
http://www.whosaidyousaid.com/2010/11/get-behind-the-scenes-of-colorado-center-right-media/

More Proof ObamaCare Is a Sop to Industry

by Brian Schwartz | 6:00 am, November 15, 2010

“ObamaCare‘s biggest cheerleaders are the insurance and drug industries. … barring repeal and despite the Obama administration’s fatuous rhetoric about standing up to the special interests, ObamaCare will shower those industries with massive subsidies.” – Michael Cannon, Cato Institute

The Misrule Of The Elites

by Mike Krause | 9:03 pm, November 14, 2010

Over at the Atlantic, business and economics writer Megan McArdle takes a swing at how it is that elites in contemporary public life are so often so out of step with “ordinary citizens.” McArdle doesn’t use the term “elite” pejoritively, and includes not only herself, but also “thousands of other people who make their [...]

11/4 Pt 1 – Key take-home points from US election results, brief interview with fmr Gov Bill Owens

by Jimmy Sengenberger | 7:00 pm, November 14, 2010

In Part One of the 11/4 post-election edition of the Seng Center Radio Show, host Jimmy Sengenberger gives his unvarnished take on the significance of the 2010 elections, explaining why he believes election day served as a stunning repudiation of Presi…

Backbone Radio, November 14, 2010: Deficits, free trade, and the utter failure of government

by Rossputin | 4:25 pm, November 14, 2010

Audio archives for this show:

Segment 1 – Intro, News of the Week
Segment 2 – Harvard University economist Jeffrey Miron discusses proposal of Obama’s Deficit Commission Chairmen
Segment 3 – Michael Williams, Defender of Capitalism
Segment 4 – Lawrence White, George Mason University economist, discusses “QE2″ and suggests that the Fed has been a failure
Segment 5 – Discussing Keynesian economics with Michael Williams; (Obama isn’t a Keynesian – he was born in Hawaii!)
Segment 6 – More with Michael Williams – economic illiteracy; is there a “right” to government defense of your property?

Throughout the past several months of intense politics, economics has gotten the short shrift in most media, perhaps including Backbone Radio.  Of course, the focus on politics during one of the most important and interesting political seasons of my lifetime was justified, but it’s now time to return our focus to other things.

The big news this week was almost all economic, both domestic and international.

Starting close to home, the chairmen of Obama’s Fiscal Responsibility Commission, often called the Deficit Commission, released their blueprint for some deficit reduction.  Reactions to it were mixed on the conservative side and almost uniformly negative from Nancy Pelosi and the left.  This could mean that the plan has substantial merit, at least as opening a critical discussion. Or it could mean that the political left are far better negotiators than the right – and I’m sure that’s true too.

We’ll get into the details of the Deficit Commission’s report (or, more precisely, the proposal of its chairmen) with our guest in the first hour, Harvard University Director of Undergraduate Studies in the Department of Economics, Jeffrey Miron, one of the nation’s foremost libertarian economists.

We’ll also spend some time with Dr. Miron (who received his Ph.D. in Economics from M.I.T. in 1984) discussing the Federal Reserve Bank program commonly called QEII (meaning their second stab at “quantiative easing”.)  There has rarely been a more important and less well understood (by the general public) economic policy decision in the nation. What exactly is quantitative easing?  How is it supposed to work? And most importantly, what is it likely to do to our economy in the short and long runs?

There was also important international economic news. Free trade and competitive currency valuations may seem dry to the average citizen, but Backbone Radio listeners are not average citizens.  You, like we, realize that these are some of the most important issues facing America and the world today, and therefore we’re going to spend a fair bit of time going in depth on the significance of free trade and of President Obama’s utter failure to advance…well, anything…in his recent trip to the G-20 meeting in Seoul, South Korea.

During our second hour, we’ll be joined by George Mason University economist Lawrence White to talk about Quantitative Easing and about his new paper (co-authored with two economists from the University of Georgia) asking the question “Has the Fed been a failure?“

During our second and third hours, I’ll be joined by the head of the Defenders of Capitalism Project (affiliated with the Leadership Program of the Rockies), Michael Williams.

In addition to talking about the importance of free market economics in the context of this week’s news, we’ll also talk some politics, including a discussion of what the Republican leadership may do regarding committee assignments for the upcoming new Congress as well as the role of the extraordinarily large GOP freshman class which will make up fully a third of House Republicans.

Mike Williams is also, like me, an Objectivist, i.e. in agreement to a substantial degree with the ideas and ideals of Ayn Rand, a topic we’ll also address during the show.

I’m going to start a new thing this show: A little trivia contest.  At some point during the show, I’ll ask a question about some past person or event.  The first person to call in with the right answer (only calls, not IM or e-mail) will win a copy of Fredric Bastiat’s “The Law’, page for page the most effective attack on socialism (and therefore “Progressivism”) ever written.  I hope to do this for most shows during the upcoming year, trying to encourage you all to be less shy about calling into the show.

Please join me by listening to (and calling in to) this week’s Backbone Radio program from 5 PM to 8 PM on 710 AM KNUS in Denver and 1460 AM KZNT in Colorado Springs.

If you’re not in range of the radio waves, you should be able to listen to the show online by clicking HERE.

I hope you’ll actively participate in the conversation with me: Call the studio at 303 696 1971, e-mail me at rossputin(at)rossputin.com, or instant message from my site at http://rossputin.com or through AOL Instant messenger to screen name Rossputin.

Udall to Steal Water from Arkansas River for Aurora

by PerlStalker | 9:50 am, November 14, 2010

If you ask people out west what the most contentious issues are, you’ll get answers like abortion, gay marriage or drug legalization but all of that fades in importance when you talk about taking their water. For over a hundred years, water rights have…

11/4 Pt 2 – Post-election conversation w/ Troy Ard, CFCR Chairman

by Jimmy Sengenberger | 9:00 pm, November 13, 2010

In Part Two of the 11/4 post-election edition of the Seng Center Radio Show, host Jimmy Sengenberger and Troy Ard, Chair of the Colorado Federation of College Republicans, share what they took away from the Nov. 2 elections.  In this insightful co…

11/4 Pt 3 – Discussion with Regis Dems Pres Sam Bailey and CFCR Chair Troy Ard on 2010 election outcomes

by Jimmy Sengenberger | 7:00 pm, November 13, 2010

In Part Three of the 11/4 post-election special edition of Seng Center, host Jimmy Sengenberger and Part Two guest Troy Ard, chair of the Colorado Federation of College Republicans, are joined by Sam Bailey, president of the Regis University Democrats…

Backbone Radio, November 14, 2010: Deficits, free trade, and the utter failure of government

by Rossputin | 4:25 pm, November 13, 2010

Throughout the past several months of intense politics, economics has gotten the short shrift in most media, perhaps including Backbone Radio.  Of course, the focus on politics during one of the most important and interesting political seasons of my lifetime was justified, but it’s now time to return our focus to other things.

The big news this week was almost all economic, both domestic and international.

To read the rest of this week’s Backbone Radio line-up as well as to learn how you can call in to win a book, please click HERE to visit the Backbone Radio web site.

What’s in Store for Criminal Justice Reforms in 2011?

by Jon Caldara | 8:04 am, November 13, 2010

Have You Heard What The Fed is Doing?

by Chuck Moe | 8:07 pm, November 12, 2010

A simple explanation of Ben Bernanke’s quantitative easing (QE2).

Is This What Waiting for Superman Would Look Like If Made in Taiwan?

by Eddie | 10:40 am, November 12, 2010

It’s Friday. Time to lighten up with a 90-second summary of the new education reform movie Waiting for Superman produced by Taiwanese animators, a video you simply have to see to believe (H/T Jay Greene):

Michelle Rhee as a martial arts heroine …

Colorado GOP, What Do You Want to See in the Next State Party Chair?

by Ben DeGrow | 9:19 am, November 12, 2010

The midterm elections are more than a week past in the rearview mirror. Time to stop navel-gazing and focus on the future. In that spirit, I wanted to pass on the link to a survey for serious Colorado Republicans. One of the next is choosing leadership for the state party, as the central committee is [...]

A Tale of Three States: Comparing judicial retention elections in Iowa, Kansas, and Colorado this year

by CTBC Director | 9:12 am, November 12, 2010

This year’s judicial retention elections were not just a hot topic in Colorado, but also in numerous states across the country.  Judicial incumbents faced opposition to their continued retention in office in states ranging from Alaska (where an anti-retention movement against one of the incumbent state supreme court justices got off to a late start [...]

DMYR November GENERAL MEETING Election Wrap Up/Celebration feat. political analyst Eric Sondermann

by Brett Moore | 3:14 pm, November 11, 2010

Join DMYR Tuesday, November 16th for our November General Meeting.  We will be wrapping up the General Election by celebrating our wins, talking about our losses, and plotting a way forward!!  [PLEASE NOTE:  Meeting will be held on the 3rd Tuesday this month, as our usual 4th Tuesday conflicts with Thanksgiving.]  This month we are pleased to welcome [...]

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