The Freedom Watch

The Source of Systemic Crisis: Risk and Moral Hazard

"No government agency ever projects deep, long-lasting recessions, because such a period of stagnation would upend all the rosy projections that the status quo is eternally sustainable and stable. Where does all this lead us? To this: Programs that backstop banks and social insurance systems like Medicare are not like fire or life insurance because they are effectively open-ended in terms of costs and in exposure to risk. A system which pools risk without distributing it to the participants and eliminates the causal connection between risk and consequence introduces moral hazard on a grand scale." Continue reading →

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Wanted: A Boring Leader for the Fed

"Quantitative easing has amounted to an audacious experiment in trickle-down economics. Among other things, it has artificially boosted the stock market in the hope that enriching a few — the top 1 percent of American households owned 42 percent of the nation’s financial assets in 2010 — will help the many. Meanwhile, retirees who don’t dare buy stocks have seen their modest bank deposits stagnate with interest rates near zero. Economists hate to admit it, but the profession is as much faith as science. Counting on monetary policy to secure full employment is like attempting vascular surgery with a dull ax." Continue reading →

Continue ReadingWanted: A Boring Leader for the Fed

Greece will need third bailout, German minister says

"A month before general elections in Germany, finance minister Wolfgang Schaeuble has broken the taboo of admitting that Greece will need a third bailout when the current one runs out, in 2014. 'There will have to be another programme in Greece,' Schaeuble said on Tuesday during a campaign rally in the northern-German town of Ahrensburg. As part of a third programme, he mentioned another lowering of the interest rates on the loans the eurozone has given to Greece. So far, the German government has steered clear of admitting that the current bailout, worth €130 billion, will not suffice to get Greece out of the vicious spiral of deficit and debt." Continue reading →

Continue ReadingGreece will need third bailout, German minister says

To Make Sense of the Coins Act, Follow the Money

"The American people might be surprised to learn that for the past 20 years a handful of lobbyists and lawmakers—mostly from states with mining and metal-processing interests—have been pushing a proposal to take away dollar bills, and force the public to use metal coins instead. The advocacy group promoting the Coins Act has the same address as PMX Industries, a South Korean firm located in Cedar Rapids, Iowa, that supplies the U.S. Mint with the metal used to make dollar coins. The company in 2011 donated a combined $500,000 to the Harkin Institute of Public Policy at Iowa State University named after the senator." Continue reading →

Continue ReadingTo Make Sense of the Coins Act, Follow the Money

The Impending Collapse of the Global “Bernanke Bubble”

"In the past few months, the Turkish lira has depreciated by 4.5% against the dollar, while its dollar-denominated debt stands at $172 billion or 22% of its GDP. Goldman Sachs forecasts a further 15% fall in the Turkish lira, spurring a financial crisis as it becomes more and more expensive to buy dollars to service these loans, most of which are short term. Furthermore, 'some of the biggest beneficiaries of the Fed’s largess were . . . among the politically connected elite in emerging nations like Turkey, where vanity towers, glitzy shopping malls and even grander projects to come have become representative of the nation’s new dynamism.'" Continue reading →

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Show Me the Manual: An Internet Town Hall [2012]

"Recorded live on location at Code for America, this town hall deals with the question of Incorporation by Reference, a legal technique where private standards become federal law, available only for those with sufficient means to be informed citizens. Featuring Jennifer Pahlka, Tim O'Reilly, Carl Malamud, and the 2012 Code for America Fellows, this program was recorded on May 4, 2012." Continue reading →

Continue ReadingShow Me the Manual: An Internet Town Hall [2012]

Maryland: Motorist Rights Group Sues Over Camera Data

"The town eventually responded in June 2012, demanding that Ely pay a schedule of fees for the involvement of various town employees, including $200 an hour for the town attorney. The total cost to access the documents was left open-ended. Ely is not seeking obscure or difficult to obtain records. Instead, he wants the calibration certificates and daily setup logs that must be 'kept on file' under the state's speed camera authorization statute. Already, two localities have been caught violating state law in allowing a private company to operate cameras without documenting the calibrations, as required." Continue reading →

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Secret Service nabs Oklahoma driver’s license equipment burglars

"Two men are accused of committing multiple felony burglaries at metro area tag agencies. They were after the equipment and supplies needed to make Oklahoma driver’s licenses and ID cards. 591 customers had their personal information stolen along with the equipment. We keep piling on security feature like biometrics to our state driver’s license but the weakest link is the local DMV or tag agencies. This sort of crime is happening all over the country. All the personal data and high tech security features in the world will not make the card secure. Instead what it does is make the document a hot commodity for crooks." Continue reading →

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Schoolgirl virginity tests prompt outrage in Indonesia

"The tests would affect students seeking to enter senior high school. The proposal triggered immediate anger, with Education Minister Mohammad Nuh leading the condemnation: 'If you want to protect your children from negative influence, there are others ways. This is not wise.' 'A virginity test is a form of sexual violence against women,' added Masruchah, the deputy head of the national commission on violence against woman, who like many Indonesians goes by one name." Continue reading →

Continue ReadingSchoolgirl virginity tests prompt outrage in Indonesia

Tyranny For Profit

"Allan Marx is an Ordnungspolizei Obersturmfuhrer (police lieutenant) in Sebastian County, Arkansas who is pushing hard for OralTox test swabs to be used upon motorists at Fourth Amendment-free 'sobriety' checkpoints. It just happens that Marx is also a distributor for the product. Each case of OralTox swabs retails for about $300. Each case contains 25 individual tests. How many people are forced to run a single Fourth Amendment-free gauntlet in a single county on a single night? Oklahoma, North Dakota, Missouri, Michigan, Colorado, Utah and – of course – New York have already signed up." Continue reading →

Continue ReadingTyranny For Profit