Holding Our Leaders Accountable

For some reason, the mainstream media doesn’t hold our economic leaders accountable for their failures. The lack of a real public debate over economic policy is very troubling, and I believe this lack of intelligent discussion will lead to the next big crisis.

Where’s the Accountability?

We need to hold our leaders accountable- that is the spirit upon which our country was founded. I remember in 2007 when Helicopter Ben said that the problems in subprime were contained. I also remember in 2007 when then Secretary of the Treasury Henry Paulson said that the global economy was the strongest he’s ever seen. If I lived outside the U.S., I suppose I would be amused by these statements. As it stands, I am an American citizen, so these kind of ignorant statements are a true nightmare. My future depends on these geniuses?

The circus continues over the raising of our debt ceiling. Last month, U.S. officials estimated we could default on our debt as early as July 8th. However, due to stronger than expected tax receipts, the estimated date of default has been moved back to, get this, August 2nd. Take out your party hats, it’s surely time to celebrate!

I am sure most readers of this blog know the eerie feeling of living in an alternate universe throughout this whole crisis. The Fed gets everything wrong, yet they are given more power. Too big to fail banks who almost brought down the global financial system have become even bigger thanks to U.S. taxpayers and implicit government guarantees. The recession is “over”, but we are on pace for record deficits. The homebuyer tax credit has done nothing the government said it would, yet no one calls out the government for their lack of economic intelligence. 13 states now have over $4.00/gallon gas, but there is still no inflation according to the Fed. What a sad state of affairs in America.

Collapse in the Rule of Law= Gold Rocket Launch 

I’ve read about a time in America when crooked Presidents could actually be impeached. There was a time in America when the pen was truly mightier than the sword; now the press just regurgitates the government line. Overregulation has led to our downfall. Remember, God himself had 10 commandments, and that worked out just fine. Our leaders don’t realize that by overregulating, they are actually creating more loopholes and eliminating all nuance. Mandatory sentences are just about the stupidest thing in the world. All these people are going to jail for non-violent offenses, and if anything, they come out of jail as true bonda-fide criminals with an axe to grind. Every situation is different. Historically, tax offenses are not supposed to lead to jail sentences. Historically, direct taxation has been used as a political tool, which is one reason why income taxes are not conducive to freedom. Unfortunately, the average person just doesn’t get it- they are currently beholden to the media circus that is Prince William’s wedding and Bin Laden’s death. 

It is our system that is in need of repair, and this is why you are seeing gold rise to new heights. This relationship probably doesn’t make sense to a lot of people, but if you view events through the lens of history, you will understand what I am saying. The collapse of the rule of law leads to a collapse in confidence. The collapse in confidence leads to truly obscene moves in gold. This crisis is a lot more complicated than the average person now understands. It is the integrity of our entire system that will come under question in the years ahead, and this is going to lead to some crazy volatility.  

Holding Our Leaders Accountable is a post from: Expected Returns

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