❝❝As far as the world's reserve currency, as a whole that's a bad idea. I doubt that Trump sees that, but competition is good. This is one instance where he is doing the right thing by accident.

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Yes, Trump is contributing to the debt, but so has every national politico since the "reform" of 1974. The continuing resolutions instead of actual budgets and the exploding bureaucracy are creating greater problems than Trump did. Both also predate Trump's election.

Meanwhile, that has nothing to do with the (BAD) idea of a single reserve currency or fractional banking. Both of which by their very existence distort the free market and introduce instability. But that is another topic or six.

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The aging population is a problem because a) government promised that it could provide better, more reliable retirement income than the private sector, b) government mandated contributions, thereby reinforcing the idea that Government Knew Best when it came to retirement and driving out many private sector alternatives, c) government mismanaged the funds it collected, and finally the REALLY Big One, government borrowed against those funds without payback.

A good smartphone can get up to the minute currency exchange information, along with futures markets, stock markets, index funds, and football pools. Understand this, the only "practical" reason for a single reserve currency is so the government producing the currency can control the economy.

None of which has anything to do with the Korean negotiations of the impact of Chinese trading.

ETA: I should warn you, some libertarians spend a lot of time studying economics.

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When people are told that they will be taken care of because it is their right, they stop paying attention to the numbers. That's true with pensions, Social Security, health care, public schools, roads, the post office, and clean water. I call it Somebody Else's Problem after a fictional FTL drive introduced by the late Douglas Adams. On the other hand, if they have to take responsibility, they pay closer attention. Just as one example, why should there be a mandatory retirement age? Just as interesting now that you brought it up, the current interest on savings accounts is artificially low because of government currency manipulation. It doesn't even beat the rate of inflation. Basically if you put money in a bank, you're losing money.

I'm not saying that the U.S. didn't benefit when the dollar was unquestionably the single reserve currency. That tends to happen with monopolies. I'm saying that competition and the free market can do better, with less government control and more choice and more benefits for people.❞❞

Tags: reserve currency ∙ fractional banking ∙ 1974 ∙ reform ∙ budget deficits ∙ budget process ∙ football pools ∙ aging population ∙ retirement income ∙ private sector ∙ mismanaged ∙ borrowed ∙ smart phone ∙ currency exchange ∙ futures markets ∙ stock markets ∙ index funds ∙ single reserve currency ∙ Somebody Else's Problem ∙ Douglas Adams ∙ pensions ∙ Social Security ∙ health care ∙ public schools ∙ roads ∙ post office ∙ clean water

Rand Paul is right

““When Rand Paul took control of the Senate floor just before 6 p.m. Eastern, virtually every one of his Republican colleagues grimaced. Five years ago, they would have cheered him.

Paul's speech, which slowed attempts to pass a massive budget deal before the government shuts down at midnight, was a savaging of his party -- a party that appears to have turned 180 degrees from the deficit hawks of the mid 2010s who insisted that government spending was ballooning out of control and was crippling the country.

"When the Democrats are in power, Republicans appear to be the conservative party," Paul said at one point. "But when Republicans are in power, it seems there is no conservative party. The hypocrisy hangs in the air and chokes anyone with a sense of decency or intellectual honesty."

He is 100% right.

The simple fact is that Republicans in the Obama era defined themselves primarily as committed to reducing government spending and shrinking the nation's debt. The ur-document of that age was Paul Ryan's budget, in which he proudly touted the need to confront entitlement spending and make the hard cuts necessary to keep the country solvent for the foreseeable future.””
     — Chris Cillizza

Tags: Chris Cillizza ∙ clipping ∙ guest content ∙ Rand Paul ∙ CNN ∙ budget process ∙ Senate ∙ Democrats ∙ Republicans

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And this would be a bad thing how?

I know what CNN is saying.

But realistically, why would a government shutdown be bad?

We know what Milton Friedman said.
Pretty much everything else could be done better by the states or the private sector.

If your local grocery store closed because they forgot to order, you'd go somewhere else. If the plumber you called couldn't come because his truck got repossessed, you'd call another. If your favorite coffee place had no one to work and was closed, well, there are other options.

But with government services, there aren't options.

Government doesn't like competition.

Every year, statists tell you How Important Government Is and how the "other party" is about to screw up your life.

It's political theater.

There isn't even a budget.

The last time there was officially a budget was 2009. But it was pretty much a budget in name only. Even if there was a budget, it would be several thousand pages long, incredibly detailed on some things and disturbingly vague on others. It's meant to be abused. I don't want to examine the Federal budget process here but I will tell you that even if Congress makes no changes, each agency gets the same amount it had the previous year plus an automatic increase. This is the so-called discretionary spending.

That's right. It takes an act of Congress to keep spending at the same level it was in the previous year.

The default setting is more government and more spending.

Then there is the mandatory spending which isn't part of the budget process. Congress may revisit the rules every few years on mandatory spending qualifications, but it usually rolls along on it's own. Mandatory spending is about two-thirds of the budget, Social Security alone is about one-third.

And I haven't even gotten to earmarks.

Government doesn't like competition so it locks private interests out of the services it provides. It manipulates you into blaming the other party so it can tax and spend more of your money. And it expects thanks for it's hard work.

Government shutdown.

This would be a bad thing how?

Tags: government ∙ government shutdown ∙ Milton Friedman ∙ picture ∙ competition ∙ Congress ∙ budget process ∙ political theater ∙ budget ∙ discretionary spending ∙ mandatory spending ∙ Social Security ∙ earmarks