An Open Letter to America

This is an interesting interview with a member of the British Parliament. 

Zero Probability of Default

Alan Greenspan is right and wrong in what he is saying.

Yes technically the Federal Reserve could print all the money it wants and pay all spending or debt it wants to pay. By law, in a de jure way, Federal Reserve notes cannot legally be refused to pay a debt. Paying off debt in such a manner would in reality, in a de facto way, be a default.

If the US is unable to roll over its bonds, if it is unable to find buyers, then the Federal Reserve can print money. Imagine for a moment if the currency in circulation suddenly over a few years went up by 5 to 10 trillion. The effect would have to be grossly inflationary.

This is why I think that if the Treasury was unable to roll over its debt it would default. As bad as default is, hyperinflation is worse. The US has defaulted on several occasions, one as recently as the 1970’s.

The only way to know what a future president would do is to consult the crystal ball. Mine is cracked.

Yes, the US can print all the money it wants. But this should not be a point of glee, but a sensation of impending doom. 

A Grand Farewell

I took an internet test, such tests are of course well know for thier reliability, and I agreed with Ron Paul in 80% of the issues of the day. Here is his farewell speech to the House of Representatives. 

Vote For The Overlord Of Your Choice

This is a discussion of the 2004 election in Ohio, but the same factors could be in play in 2012. 

Don't Talk To The Police

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