Showing posts with label government. Show all posts
Showing posts with label government. Show all posts

Monday, February 16, 2009

The most dangerous man

The most dangerous man, to any government, is the man who is able to think things out for himself, without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane and intolerable, and so, if he is romantic, he tries to change it. -- HL Menken

Monday, February 09, 2009

The Curse of the Withholding Tax

The income tax allows the government to confiscate the wealth of its citizens. The curseof the withholding tax is that it allows the government to commit this crime systematically, effortlessly, painlessly, and benevolently.

Surprisingly, it was a free market economist who helped the federal government implement the withholding tax in the first place. As was pointed out by the Austrian economist, Murray Rothbard (1926–1995), in his 1971 article "Milton Friedman unraveled":

One of Friedman's most disastrous deeds was the important role he proudly played, during World War II in the Treasury Department, in foisting upon the suffering American public the system of the withholding tax. Before World War II, when income tax rates were far lower than now, there was no withholdingsystem; everyone paid his annual bill in one lump sum, on March 15. It is obvious that under this system, the Internal Revenue Service could never hope to extract the entire annual sum, at current confiscatory rates, from the massof the working population. The whole ghastly system would have happily broken down long before this. Only the Friedmanite withholding tax has permitted the government to use every employer as an unpaid tax collector, extracting thetax quietly and silently from each paycheck. In many ways, we have Milton Friedman to thank for the present monster Leviathan State in America.

Thursday, February 05, 2009

internet laws

Indeed, this law is one of the most conspicuous examples of how a legislative body has set different rules for physical space and cyberspace. In this case, the law provides websites and other intermediaries a near-absolute immunization from liability for their users’ content—even if offline publishers would be liable for publishing the exact same user content in dead trees.

It’s hard to overstate the importance of this law to the Internet’s evolution. Without this law, all Internet content probably would be subject to a notice-and-takedown regime like we have for copyright law (see discussion about the DMCA Online Safe Harbors below). If websites had to remove user content upon notice to avoid liability, they would act conservatively, quickly pulling down complained-about content without much fuss. So, any company unhappy with negative consumer comments could simply contact the web host, claim that the comments were defamatory (making the web host potentially liable for the content), and expect the web host to scramble to take down the user’s comment.


47 USC 230 eliminates the notice-and-takedown option for people and companies trying to escape accountability. As a result, 47 USC 230 is a big part of the reason why the Internet became such a massive success.”

Monday, February 02, 2009

Eminent Domain

Remember all the treasure hunt stories. There was never a treasure hunt for paper money! At some point, it becomes worthless.


Don't buy US Gold

You need to buy a few of those … pure silver, gold if you have the money, and safely stash them. If you’re even more paranoid, don’t buy the US-minted coins because they fall under eminent domain and can be confiscated at the point of a gun — it HAS happened before. Your safest bets are pre-1933 US gold coins minted by the US Mint or foreign gold, like British Sovereigns (I like the 1/4 oz coins).

As a sidetrack … I’ve been getting mail calling me paranoid and crazy. Frankly, I don’t understand where those people get their unshakable faith in the US Federal Reserve Notes and this consumption/service-based economy. It’s not any kind of a secret, people, they even say it loud and clear on CNN/FOX NEWS — we are both a SERVICE economy and a CONSUMPTION-based economy. Two thirds of our economy is driven by consumption, not production. Therefore, in a country with fiat currency, the only thing that can possibly give that currency any intrinsic value is production and productive capacity of the people. What happens to a consumption-based economy then there is nothing else to consume?

Just think about your position for a second, the way I thought about mine. I’m a yuppie (young urban professional), and just like the rest of the office plankton I don’t produce anything … neither am I a value-add for anything my company produces. Are you a doctor? A farmer? Do you know a trade? If no, you, like me, are the first on the chopping block.



You need to buy Silver


You really have a couple of options. Buy US Mint precious metals if you’re not afraid for G.I. Joe confiscating them at the point of his gun. Buy some other form of silver if you are afraid of G.I. Joe slash Uncle Sam confiscating it when the time is ripe.

I’m taking my chances amd buying rolls of 10 US Mint Silver Dollar Eagles every paycheck. Sometimes, when the website advertisement paychecks rolls in, I buy a bar of Swiss Gold.

You’re asking, “why?”

Couple of reasons. First, I’ve been though currency devaluation before in the USSR. Not very fun. I’m talking, “run out and buy up whatever tangible durable goods you can because the paper money ain’t gonna be worth much in a day”.

Second … With the massive amounts (trillions) of dollars of money Federal Reserve is printing to cover the bailouts, I’m predicting massive inflation.

The Peaceful Transfer of Violent Power

This is something to celebrate?

The essence of government as we know it is the power to use force against people who have never harmed anyone. The most basic power is the power to tax. Indeed, government could do nothing without it. The power to tax is the legal authority to compel people to surrender their money to the state under penalty of fine, imprisonment, and worse for refusal. Whether or not one thinks this power is good (I don’t), one cannot deny that it is based on the threat to commit violence against the nonviolent.

Thus, this week we witness the peaceful transfer of the authority to commit legal plunder.

Apologists for government undertake bizarre mental contortions to show that we have consented to be taxed. Balderdash. I was never asked to consent, and I’m sure you weren’t either. I refuse to accept the nonsensical argument that by not vacating the parcel of land I purchased, I have signaled my “tacit consent” to be plundered and bullied. That implies the government owns the territory it rules and therefore can set the conditions under which it is used. That sounds like feudalism. Are we merely tenants of the governmental landlord?

Built on the power to tax (legally steal) are myriad other powers that entail the threat of violence against peaceful individuals. If you wish to buy things from people outside the jurisdiction claimed by the U.S. government, you may do so only on the terms it permits under its trade laws. If you wish to invite to your home or business someone who lives outside that jurisdiction, again, you can do so only under terms laid down by the government’s immigration rules. You are not free to make your own decisions in the matter.

Sunday, September 14, 2008

Telco Sues Municipality For Laying Their Own Fiber

I think you are missing a very key point, here. It's true that telcos were paid government funds to build a significant part of the telephone network. But it's also true that in the vast majority of cases, those parts are the UNPROFITABLE parts.

Let's say you have a water pumping service, doing business in town, and you're making whatever profits you are making. For this example, we'll ignore the fact that most communities have community water. Business is good, you're expanding to cover more and more houses, starting with the most profitable ones first. (densest neighborhoods)

But then de gubbmint comes in and tell you that you have to do a bunch of stuff in order to continue to do business, because of the benefits to the general health of the community or whatever. For example, since you provide water to some houses in your town, now you have to provide water to ALL houses in your town.

Now, it's not as though you wouldn't love to serve all the houses in the town, but some of those houses are over a mile apart! Just the cost to dig the pipes out that far will cost you over $10,000 per house! Since you are charging $50/month for water service, it's going to take almost 20 YEARS before you even break even on the base cost, nevermind the finance charges you'd incur to borrow the money to deliver the service the gubbmint requires!

And you can't charge the homeowners, either - they aren't buying anything, they didn't ask for it, and making them pay would be onerous on them, too.

So, in circumstances like these, it's very typical for the private company (your water company) to ask for funding to assist in the problem areas. It often comes as a sort of deal: Your water company enjoys a monopoly status, subject to various regulations that you have to perform, in exchange for funding to cover the plumbing for the unprofitable areas.

So the net effect goes something like this:

1) Your company is now a monopoly that must turn in a Profits and Loss statement, along with proof of regular water testing to the city council every month or so. You cover 100% of the houses in the community, and you have no effective competition. One of your concessions is that the municipality can levy taxes via your bills. You have to calculate this bill, and turn over the tax money to the city quarterly.

2) The city has now satisfied its goal of everybody having 100% availability to clean drinking water. It's paid for costs of plumbing by taking out a bond, secured against a tax raised against people's water bill.

3) Everybody who lives in the community now pays a 5% monthly tax on the water bill to cover the cost of plumbing outlying areas. Financially, it's a raise in your bill if you were already contracted with the water company when it was all private, it still brings benefits such as improved local economy resulting from the improved infrastructure.



Telco Sues Municipality For Laying Their Own Fiber
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Friday, September 05, 2008

Ease norms for internet calls, Trai tells govt

Prices of domestic long-distance calls are expected to halve to around 50 paise a minute and those for international calls fall by a fifth if the recommendations of the Telecom Regulatory Authority of India (Trai) to permit internet service providers (ISPs) to offer unrestricted internet telephony are cleared by the government.

Allowing ISPs to extend their internet telephony operations will effectively create an alternative domestic telephone network and has been criticised by mobile service providers as being unfair.

Two years ago, the government permitted telecom licensees to offer unrestricted internet telephony as part of their licence conditions. None of the mobile operators has done so yet, principally because the service would drive down prices and impact average revenue per user, which is already among the lowest in the world.

ISPs are currently allowed to offer Net calls but subject to certain restrictions such as between two personal computers, one in India and the other anywhere in the world; between a subscriber with a voice over internet protocol (VOIP) phone in India and a subscriber with a similar device in any country; and also between a PC in India and a fixed or mobile number in another country.

If the new policy is accepted, consumers will be able to call through the Net directly to fixed line and mobile numbers across the country and vice-versa. They can do so either through the PC or through a VOIP phone or from a landline fitted with an additional device.

Ease norms for internet calls, Trai tells govt
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Friday, November 16, 2007

Food subsidies

Drewnowski gave himself a hypothetical dollar to spend, using it to purchase as many calories as he possibly could. He discovered that he could buy the most calories per dollar in the middle aisles of the supermarket, among the towering canyons of processed food and soft drink. (In the typical American supermarket, the fresh foods — dairy, meat, fish and produce — line the perimeter walls, while the imperishable packaged goods dominate the center.) Drewnowski found that a dollar could buy 1,200 calories of cookies or potato chips but only 250 calories of carrots. Looking for something to wash down those chips, he discovered that his dollar bought 875 calories of soda but only 170 calories of orange juice.

As a rule, processed foods are more “energy dense” than fresh foods: they contain less water and fiber but more added fat and sugar, which makes them both less filling and more fattening. These particular calories also happen to be the least healthful ones in the marketplace, which is why we call the foods that contain them “junk.” Drewnowski concluded that the rules of the food game in America are organized in such a way that if you are eating on a budget, the most rational economic strategy is to eat badly — and get fat.

This perverse state of affairs is not, as you might think, the inevitable result of the free market. Compared with a bunch of carrots, a package of Twinkies, to take one iconic processed foodlike substance as an example, is a highly complicated, high-tech piece of manufacture, involving no fewer than 39 ingredients, many themselves elaborately manufactured, as well as the packaging and a hefty marketing budget. So how can the supermarket possibly sell a pair of these synthetic cream-filled pseudocakes for less than a bunch of roots?

For the answer, you need look no farther than the farm bill. This resolutely unglamorous and head-hurtingly complicated piece of legislation, which comes around roughly every five years and is about to do so again, sets the rules for the American food system — indeed, to a considerable extent, for the world’s food system. Among other things, it determines which crops will be subsidized and which will not, and in the case of the carrot and the Twinkie, the farm bill as currently written offers a lot more support to the cake than to the root. Like most processed foods, the Twinkie is basically a clever arrangement of carbohydrates and fats teased out of corn, soybeans and wheat — three of the five commodity crops that the farm bill supports, to the tune of some $25 billion a year. (Rice and cotton are the others.) For the last several decades — indeed, for about as long as the American waistline has been ballooning — U.S. agricultural policy has been designed in such a way as to promote the overproduction of these five commodities, especially corn and soy.