The Dollar's Use as a Reserve Currency

                       

The potential loss of the dollar as a reserve international currency is now underway. The ability to protect U.S. global interests in the future will be diminished in this process.

                       

Do not treat unlimited government spending lightly. The repercussions can be extremely serious in matters of our economic and national security. We're in trouble if other countries no longer convert their currency into dollars.

                       

The debt ceiling question is important. Spending below that ceiling resolves the problem.

                       

A budget deficit that cannot be overcome without massive taxation, guaranteed to stifle economic growth to prevent deficit reduction is the major difficulty. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Government Business Inefficiency

                       

Whenever the government proposes a function that is now done by private industry, the taxpayer will be contributing the necessary capital and operating funds. And will be planting all the risks on the stockholders of private industry. As well as responsibility for the losses, which are bound to happen under government operations.

                       

Think Post Office as an example.

                       

So be careful of any government attempt to reduce costs by competing with private enterprise. (See the Earl J Weinreb NewsHole® comments and

@BusinessNewshole tweets.)

Teachers Also Are Flunking

                       

The National Assessment of Educational Progress has been called the Nation’s Report Card. It reported that only 23% of fourth-graders, 30% of eighth-graders, and 21% of 12th-graders were” proficient” or “advanced” on their national geography exam, given in January to March, 2010. The trend persists.

                       

I saw one of the simple questions posted in the Wall Street Journal. The newspaper reported that only 33% of eight-graders got it right.

                       

With a student body such as this in the U.S. we certainly do not get our money’s worth when it gets to education cost. But I do notice teachers’ unionized pay and benefits are highest ever. (See the Earl J Weinreb NewsHole® comments and @BusinessNewshole tweets.

Disastrous European Unemployment

                                           

Too many European countries are on the edge of bankruptcy amidst well over permanent 10%-Plus unemployment.

With younger workers, who do not get counted as unemployed because they give up early on, and are, in fact, permanently on the dole the moment they leave school in their teens. If they excel at something, it’s in their demand for funds from their neighbors’ taxes. Those neighbors who work.

                       

This is the society many of our politicians fail to point to, when they sell us on government-supervised services the Europeans get so “cheaply.” (See the Earl J Weinreb NewsHole® comments and @BusinessNewshole tweets.)

“Experts” Enhance Government Spending

                       

Americans should always think seriously about politicians who tell them government “experts” know all about spending and deficit control.

                       

Any politician or bureaucrat with a short-term horizon is never reliable on this score. Especially a politician unfriendly to, or unfamiliar with the true understanding of capitalism.

                       

Our tremendous deficit will spell enormous inflation. Or a loss of currency value. And the certain loss of the eminence of America. As an economic and, therefore, a political and military entity. (See the Earl J Weinreb NewsHole® comments and @BusinessNewshole tweets.)

                   

Media’s Free Market Ignorance

                       

Few general media reporters, columnists and editors have free market views and, certainly, a background on financial subjects. In addition to what generalities journalists are ever taught, they receive a modicum of economic and financial training in school.

                       

Not theory from economists such as Friedrich Hayek, Milton Friedman, and present-day commentators such as Thomas Sowell, Walter E. Williams, among others.

                       

Thus you get common left-leaning slants in many financial articles. (See the Earl J Weinreb NewsHole® comments and @BusinessNewshole tweets.)

ObamaCare- Post Office Efficiency?

                       

Everything the government has done, including its health care under Medicaid, have been inefficient with equally poor service, comparable to that of the Post Office.

                       

Government never fosters competition. It can cut out competition when it is permitted to write rules to have taxpayer money undercut the pricing of products or services of potential private producers. As with ObamaCare.

                       

The Post Office will not give up its first class mail handling privilege. It knows it cannot compete if it has competition. Other forms of non-first class package shipping are handled by private shippers efficiently and at low cost. While private carriers would love to carry first class mail, the Post Office continues to maintain its monopoly.

                       

The Post Office says it provides service to areas no private carrier will want to service. Not true, as evidenced by cutbacks the Post Office constantly imposes. And destinations to which private carriers now go.

                                           

ObamaCare claims to provide everything private medicine can do better and cheaply but government has never allowed real health care reform. Such as interstate competition and tort reform and fraud correction, (See the Earl J Weinreb NewsHole® comments and @BusinessNewshole tweets.)