Saturday, April 22, 2017

Steel is Recyclable

Steel (or at least the iron in steel) is recyclable.

Iron is magnetic. Most landfills pass our waste stream under electromagnets and we capture and reclaim a huge portion of waste iron.

Currently the Trump Administration is seeking to impose tariffs and restrictions on imported steel claiming that that steel is a strategic commodity that we need to protect for national security.


I say that, because iron is so easily recycled, it is actually in our nation's strategic interest to import steel.

All of the steel things that we import help our nation build up a strategic reserve.

If there is an international crisis that suddenly requires a great deal of steel, we can easily recycle the huge steel reserve that we imported.

Let's say we had a conflict with China. All of the steel that China exported in times of peace is steel they no longer have and that we have in reserve.

As for iron and coal reserves in the ground, we are in a better strategic position if we leave our resources in the ground and let China overdevelop their reserves.

If we have a national crisis that suddenly requires a great deal of steel, our nation can easily ramp up steel and coal production. The huge amount of recyclable metal that we have in our nation plus the ability to ramp up undeveloped reserves puts us in a better position than a false market where we use tariffs to block steel imports and consume our natural iron reserves in times of peace.

Thursday, March 09, 2017

Paul Ryan Continues the 180 Year Tradition of Conservatism

Conservatism is an ideology crafted by King William IV in an effort to rebrand the Tory Party for electoral reforms of 1860. Members of the Conservative Party continue to call themselves Tories.

The goal of Conservatism is to conserve the top-down social structure of the ancient regime in an age of political change.

Conservatives of 1830s crafted a very simple strategy: Conservatives use free market rhetoric to gain power. Once in power, they pass legislation that gives the ruling elite an economic advantage over the people at large. This creates the illusion that the existing social order is somehow the natural social order.

The conservative play book has not changed in 180 years.

The Health Care proposal by Paul Ryan, Tom Price and Donal Trump is keeping with the age old methodology of Conservatism.

The GOP plan keeps those parts of the plan the feed economic centralization while reducing the taxes and subsidies the plan included to make PPACA appear progressive.

I agree with Paul Ryan. The GOP's health care plan fits the 180 year tradition of Conservatism.

The top-down health care reform pushed by Paul Ryan is conservatism in action.

Paul Ryan is using the exact same playbook the Tories used when King William IV rebranded the Tory Party as "Conservative."

(For those of you who don't know history. King William IV was the younger son of King George III. The Tories were the people the US Founders fought against during the American Revolution. Conservatism is an ideology crafted by the enemies of the United States.)

Conservatism is an inherently disingenuous ideology. One uses free market rhetoric to gain power, then passes top down legislation once in power.

The problem with the Conservative methodology is that people, like me, who believe in the American tradition of free and fair economics are systematically cut out of the process.

The millions of people who fell for Conservative rhetoric feel duped.

They feel duped, because they were duped.

There's a large number of people who've been calling themselves "conservative" because they like the ideals of freedom and they are caught by surprise that their conservatives leaders are essentially seeking to conserve the core structure of Obamacare.

I have no idea how to break the political impasse between those who believe conservative rhetoric and those who employ the methodology of conservatism.

The people who claim that Paul Ryan isn't conservative enough because his health care plan is essentially "Obamacare Lite" are wrong.

Paul Ryan's actions are 100% in keeping with the 180 year tradition that Conservatives have followed since the Tories chose to re-name their party the Conservative Party.

Conservatives who keep with the tradition of the Tory Party are the most conservative of all the conservatives.

Conservatives use free market rhetoric to get in power, and enact top-down legislation that gives the upper class an advantage over the people.

This is what King George III wanted. This is what King George's youngest son wanted. This is what the Tories wanted.

Paul Ryan is not only a conservative. He is pure bred conservative in the great tradition of the Tory Movement.

Sadly, the only way for America to restore its liberal traditions is for people to realize that "Conservatism" is as corrupt an ideology as "progressivism" and I fear that few people in the GOP are willing to make that connection.

Thursday, February 16, 2017

People Invest Forward

Smart investors invest according to what they think will happen. They do not invest in what has already happened.

It is likely that Donald Trump will attempt to stimulate with a tax cut.

When Bush passed his tax cut, he gave everyone a refund check.

The problem with the refund check is that checks have to be financed with debt spending.

A better approach is simply to pass some spending cuts that take place this year and a tax cut that starts next year.

Smart investors will start making their investing decisions based on the tax cut that will come in the future.

We don't need to engage in the debt financing of refund checks.