Thursday, November 8, 2018
A Modest Proposal
The main reasons schools are targeted is it is assumed that you won’t meet armed resistance there, there is a multitude of targets there, the people that a troubled young person is most likely to have a grudge with are there, and the press coverage will be assured.
Here is a solution set;
1. Relocate police precincts and Sheriff’s offices in schools so they share the same building. Redistribute all existing law enforcement. Police should work out of the school buildings exclusively. Kids will grow up with them there everyday.
2. Hire and train additional veterans as sworn law enforcement officers to cover all schools in the district.
3. Cover all school zones and crosswalks to schools with the assigned law enforcement officer every morning and every afternoon. There is no more important place to be everyday.
4. Change policies and practices so that police only respond to calls, they no longer patrol on a regular basis. There is no data showing that patrolling reduces crime at all.
5. Pass a nationwide bill that makes it illegal to publish the name of a person suspected of a school shooting, or any terrorist act, or the details of the attack. This removes the incentive.
6. Implement programs and culture in schools to reward bravery, courage, and self-sacrifice to those who stand up for the less fortunate and protect those being bullied. It needs to be the culture that when students see someone being picked on, THEY step in, several students. They don’t go to an adult, and schools need to encourage and reward this.
7. The entire mental health care system needs to be nationalized and free to everyone. Every facet of it; from medication, to therapies, inpatient care, and life-long care.
The reason entertainment venues are chosen is for similar reasons; the shooter is least likely to meet resistance because these facilities screen for weapons at the door, there is a large number of targets in a small space, and press coverage is extremely likely. Like the school shooting problem, the solution is multi-faceted and required several things done simultaneously.
In addition to all the measures above for schools, here also is a solution set:
1. Allow concealed carriers with valid permits and ID to enter with firearm.
2. Require professional security for certain size venues. Armed and trained. Not on duty for any other reasons; i.e. bouncing drunks etc.
3. The random nature of these events, and inability to total secure this type of venue leads to best defense is a good offense. The type of measures and the venues need to be offensive in nature ensuring that it is no longer a soft target.
4. The best measure against active shooters is actively hunting them in society before they commit. This means training all people who may come in contact with them on a regular basis in identifying their behaviors and how to stop them early. Mental health intervention early and with complete resources and powers is a must.
How Money Works; You might want a cup of coffee and a smoke before you start reading this...
How Money Works
Here is quick economic primer for many of you for whom the working of our Federal system seems to be a mystery. I keep hearing people say, "But what about our deficit?", or "We can't afford to keep borrowing money to run the government." When I hear these type of statements, it indicates to me the speaker does not understand how our treasury system works. Work through this slowly and carefully. Think long and hard about the parts you don't understand, or don't agree with. This isn't opinion, it's cold hard fact, and basic macro economics. We have known, and proven, these concepts over time and have used them successfully since the inception of the Federal Reserve System.
First of all, resources like water, minerals, food, labor, wood, and animals are of course finite. However, money is only a marker, or replacement for these resources and is infinite (not really, but for the purposes of any individual it is infinite). So, when you have resources, but it doesn't make sense to move them to where they are needed, or you don't need them now, you trade them for money, and then buy them later when and where you need them. The treasury of the federal government has the power to print more money at any time.
Here is quick economic primer for many of you for whom the working of our Federal system seems to be a mystery. I keep hearing people say, "But what about our deficit?", or "We can't afford to keep borrowing money to run the government." When I hear these type of statements, it indicates to me the speaker does not understand how our treasury system works. Work through this slowly and carefully. Think long and hard about the parts you don't understand, or don't agree with. This isn't opinion, it's cold hard fact, and basic macro economics. We have known, and proven, these concepts over time and have used them successfully since the inception of the Federal Reserve System.
First of all, resources like water, minerals, food, labor, wood, and animals are of course finite. However, money is only a marker, or replacement for these resources and is infinite (not really, but for the purposes of any individual it is infinite). So, when you have resources, but it doesn't make sense to move them to where they are needed, or you don't need them now, you trade them for money, and then buy them later when and where you need them. The treasury of the federal government has the power to print more money at any time.
So, when you have potatoes, but need something else, you trade the
potatoes for money and then trade the money for what you need. People
who had those things you needed traded money for them at some other time
in some other place, etc.
Now, if more money is needed, the treasury has methods of determining when and where and printing more money to meet this need. They have long ago established mechanisms to put the money into circulation, and remove money when necessary. It works very well, and has been proven over time.
One of these methods is a recursive technique called "Quantitative Easing", by which the treasury buys back bonds it had previously issued in the form of a loan. These accumulated bonds are our "National Debt". We have about $16 Trillion of these bonds issued on average.
However, since November of 2008 the treasury has conducted three rounds of "Quantitative Easing", totaling about $5.1 trillion. Basically, they have printed $5.1 trillion dollars and removed this from the debt by buying these bonds back from bond holders who were holding this debt, primarily US banks. They are scheduled to conduct several more rounds through 2014 perhaps reducing the debt by another $3.4 trillion. Basically, they can keep this up indefinitely, selling bonds and many years later buying them back with interest.
So, here is the kicker; there is no "National Debt". Quit your whining please. It is just a tool to move money around when and where it is needed. We could effectively reduce it to zero if we wanted, it would just take this other tool away from the treasury. We need this volume of money and loans in float around the world to buy the things we need and control the parts of the world economy we need to control.
Now, if more money is needed, the treasury has methods of determining when and where and printing more money to meet this need. They have long ago established mechanisms to put the money into circulation, and remove money when necessary. It works very well, and has been proven over time.
One of these methods is a recursive technique called "Quantitative Easing", by which the treasury buys back bonds it had previously issued in the form of a loan. These accumulated bonds are our "National Debt". We have about $16 Trillion of these bonds issued on average.
However, since November of 2008 the treasury has conducted three rounds of "Quantitative Easing", totaling about $5.1 trillion. Basically, they have printed $5.1 trillion dollars and removed this from the debt by buying these bonds back from bond holders who were holding this debt, primarily US banks. They are scheduled to conduct several more rounds through 2014 perhaps reducing the debt by another $3.4 trillion. Basically, they can keep this up indefinitely, selling bonds and many years later buying them back with interest.
So, here is the kicker; there is no "National Debt". Quit your whining please. It is just a tool to move money around when and where it is needed. We could effectively reduce it to zero if we wanted, it would just take this other tool away from the treasury. We need this volume of money and loans in float around the world to buy the things we need and control the parts of the world economy we need to control.
Wednesday, November 7, 2018
The Parable of the Pecan Tree
The Parable of the Pecan Tree
You have worked hard. You have a few dollars in a bank account for a rainy day. One day, your next door neighbor sees you in the yard and beckons you over. He explains to you that he is thinking of planting a pecan tree on his property between your two homes. He says that the tree will provide delicious nuts in the fall and good shade in the summer.
Your
neighbor says, however, that he is a few dollars short of enough money
to buy a small tree from the nursery, but was wondering if you would
like to invest a bit of your savings in the tree, and thereby share in
it’s benefits in the future. (Common Shares) This sounds like a small
price to pay for some pecans, which you love, and shade in the future,
so you agree.
After several years the neighbor explains that he would like to fertilize and water the tree more and wonders if you would like to invest a few more dollars in a minor share of that work. He explains that the tree will grow much larger, and faster, and provide a nice shady spot for you both to put your chairs in your old age (401k, IRAs, etc.).
Later, your neighbor explains that he is loaning out a portion of the pecans to several people who bake in the neighborhood, and in return they will bring back some delicious pecan pies as payment. He goes on to ask if you would like to invest some of your share of the pecans in this endeavor (Mortgages).
In a few years, the much larger tree yields so many pecans that the neighbor is getting many more pies from the bakers than he can eat, so he gathers up these extra pies and sells these at the farmers market (Mortgage Bundles, and Mortgage Backed Securities). He doesn’t ask you to share in this scheme. But, he asks your daughter to work at his stall at the farmers market, so you don’t complain. She uses the money; along with some she borrows from your neighbor at a high interest rate, to go to school at night to finish college. The college your daughter is going to realizes that she can borrow all the money she asks for, so the college raises the tuition by astronomical amounts each year (Student Loan Programs).
That next fall, after he fertilizes the soil and the leaves fall around the tree, the neighbor’s dog is sniffing and digging at the base of the tree. The neighbor pulls his dog’s nose out of the hole and notices strange black lumps in the shallow dirt under the leaves. He pulls them out of the ground and looks them up on Google; they are black truffles! (Derivatives and Securities) He learns they are worth a fortune. He takes these to the farmers market and has your daughter sell them for a lot of money. Chefs are clamoring for more! He tells the chefs to leave a deposit and they can have first claim on the next truffles he digs up next fall (Mortgage Insurance, Reinsurance, REITs).
The next fall, as he is digging around the base of the tree for black truffles, he notices a curious white lump occasionally. He takes this to the farmers market and the white truffles sell for even more money! (Collateralized Debt Obligations, Credit Default Swaps, and other exotic securities) He rushes home and greedily digs all around the base of the tree, digs along all the roots, and even rents an excavator to explore every last inch of the soil. (Adjustable Rate Mortgages, Low-Doc Mortgages, Second Mortgages, Sub-Prime).
That very night it rains. With the roots of the tree unable to find a purchase in the wet, loose soil, the tree comes crashing down on both of your houses!
Your neighbor comes to your door and explains that he is truly sorry, but he owes a lot of money to these chefs. Also, he must rebuild his house and replant the tree. You decide that this relationship was good for so many years that you agree to bail him out. (TARP) Heck, you are such a good person; you aren’t even going to charge interest! (Quantitative Easing) You are later surprised to find out the bill for fixing his house is about 100 times yours. He explains that with all that extra truffle and pie money, which he didn’t share with you, he had put many luxury items in his house and had renovated the whole place. He had millions (Trillions) of dollars of stuff that you didn’t really pay attention to over the years.
This news bothers you a bit, but you are so far in now you feel like you don’t have a choice. So, when he comes over later for more money to replant the tree and clean up the old mess, you give it. (Emergency Economic Stabilization Act of 2008)
The following fall he says he needs a bit more money at zero interest and more time because the new tree is small and hasn’t grown any pecans yet. He also informs you that he is going to have to lay off your daughter, who has worked for him at his stall in the farmers market, and can’t provide you any pecans going forward. (Quantitative Easing II, Recession and Unemployment)
Your daughter eventually finds a job that pays far less than she needs to pay off her school loan to your neighbor, but it is all that is available. Your savings are completely depleted. You have had to borrow some money at a high interest rate from another neighbor to finish repairs on your house because you had to help your daughter out with her bills. But, you figure when things get back to normal you can pay this loan off and your daughter can contribute (2009, 2010 Recession).
The next fall, your neighbor pays you back the money he borrowed to rebuild his house and replant the new tree, without interest. You use this to pay back the loan you took to repair your house. Your neighbor also gives you the $2 you loaned him in the beginning for the purchase of the first tree. He explains that the money you both put in to fertilize and water the old tree is a total loss, which you will both share. He says that he is free and clear and doesn’t need your help anymore (Q1.Q2 2011).
However, he cheerfully tells you that he is getting a new large screen TV for himself with the money he has made from your daughter’s loan payments. He explains that thanks to your interest free bailout, he didn’t have to dip into his retirement money or sell any of his vast fortune. He also says that as a bonus for making it through these hard times he is treating himself to a vacation to Europe (Q3 2011 Reports). Then he asks why your under-employed daughters, and her unemployed baker friends, are protesting in his front lawn (Occupy Wall Street)?
After several years the neighbor explains that he would like to fertilize and water the tree more and wonders if you would like to invest a few more dollars in a minor share of that work. He explains that the tree will grow much larger, and faster, and provide a nice shady spot for you both to put your chairs in your old age (401k, IRAs, etc.).
Later, your neighbor explains that he is loaning out a portion of the pecans to several people who bake in the neighborhood, and in return they will bring back some delicious pecan pies as payment. He goes on to ask if you would like to invest some of your share of the pecans in this endeavor (Mortgages).
In a few years, the much larger tree yields so many pecans that the neighbor is getting many more pies from the bakers than he can eat, so he gathers up these extra pies and sells these at the farmers market (Mortgage Bundles, and Mortgage Backed Securities). He doesn’t ask you to share in this scheme. But, he asks your daughter to work at his stall at the farmers market, so you don’t complain. She uses the money; along with some she borrows from your neighbor at a high interest rate, to go to school at night to finish college. The college your daughter is going to realizes that she can borrow all the money she asks for, so the college raises the tuition by astronomical amounts each year (Student Loan Programs).
That next fall, after he fertilizes the soil and the leaves fall around the tree, the neighbor’s dog is sniffing and digging at the base of the tree. The neighbor pulls his dog’s nose out of the hole and notices strange black lumps in the shallow dirt under the leaves. He pulls them out of the ground and looks them up on Google; they are black truffles! (Derivatives and Securities) He learns they are worth a fortune. He takes these to the farmers market and has your daughter sell them for a lot of money. Chefs are clamoring for more! He tells the chefs to leave a deposit and they can have first claim on the next truffles he digs up next fall (Mortgage Insurance, Reinsurance, REITs).
The next fall, as he is digging around the base of the tree for black truffles, he notices a curious white lump occasionally. He takes this to the farmers market and the white truffles sell for even more money! (Collateralized Debt Obligations, Credit Default Swaps, and other exotic securities) He rushes home and greedily digs all around the base of the tree, digs along all the roots, and even rents an excavator to explore every last inch of the soil. (Adjustable Rate Mortgages, Low-Doc Mortgages, Second Mortgages, Sub-Prime).
That very night it rains. With the roots of the tree unable to find a purchase in the wet, loose soil, the tree comes crashing down on both of your houses!
Your neighbor comes to your door and explains that he is truly sorry, but he owes a lot of money to these chefs. Also, he must rebuild his house and replant the tree. You decide that this relationship was good for so many years that you agree to bail him out. (TARP) Heck, you are such a good person; you aren’t even going to charge interest! (Quantitative Easing) You are later surprised to find out the bill for fixing his house is about 100 times yours. He explains that with all that extra truffle and pie money, which he didn’t share with you, he had put many luxury items in his house and had renovated the whole place. He had millions (Trillions) of dollars of stuff that you didn’t really pay attention to over the years.
This news bothers you a bit, but you are so far in now you feel like you don’t have a choice. So, when he comes over later for more money to replant the tree and clean up the old mess, you give it. (Emergency Economic Stabilization Act of 2008)
The following fall he says he needs a bit more money at zero interest and more time because the new tree is small and hasn’t grown any pecans yet. He also informs you that he is going to have to lay off your daughter, who has worked for him at his stall in the farmers market, and can’t provide you any pecans going forward. (Quantitative Easing II, Recession and Unemployment)
Your daughter eventually finds a job that pays far less than she needs to pay off her school loan to your neighbor, but it is all that is available. Your savings are completely depleted. You have had to borrow some money at a high interest rate from another neighbor to finish repairs on your house because you had to help your daughter out with her bills. But, you figure when things get back to normal you can pay this loan off and your daughter can contribute (2009, 2010 Recession).
The next fall, your neighbor pays you back the money he borrowed to rebuild his house and replant the new tree, without interest. You use this to pay back the loan you took to repair your house. Your neighbor also gives you the $2 you loaned him in the beginning for the purchase of the first tree. He explains that the money you both put in to fertilize and water the old tree is a total loss, which you will both share. He says that he is free and clear and doesn’t need your help anymore (Q1.Q2 2011).
However, he cheerfully tells you that he is getting a new large screen TV for himself with the money he has made from your daughter’s loan payments. He explains that thanks to your interest free bailout, he didn’t have to dip into his retirement money or sell any of his vast fortune. He also says that as a bonus for making it through these hard times he is treating himself to a vacation to Europe (Q3 2011 Reports). Then he asks why your under-employed daughters, and her unemployed baker friends, are protesting in his front lawn (Occupy Wall Street)?
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