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Somebody stole my shiny from my last post...actually it was prudently censored by the editor, it probably crossed the line of good taste, but if you are really interested search for Dayjoborchestra on youtube.
All right - I got this in the mail yesterday - Waseca's own, and fellow WCN blogger is going to be at Center for the American Experiment luncheon in St. Paul to discuss trimming the budget. I definitely will be going and am wondering if anybody else would like to carpool/caravan. I am thinking it would be even better if we could maybe swing by the Capitol and visit our new Senator and Representative Kath to get their thoughts on trimming the budget as well. Shoot me an email at matthew.johansen@gmail.com if you are interested.
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The best band to ever come out of Minnesota is playing at Busters in Mankato tomorrow night (sorry Schmojoes).
Thoughts on the Greek monetary crisis from Mises.org:
"For the member states in the eurozone, the costs of reckless fiscal behavior can also, to some extent, be externalized. Any government whose bonds are accepted as collateral by the ECB can use this printing press to finance its expenditures.[2] money bids up prices throughout the monetary union.
Each government has an incentive to accumulate higher deficits than the rest of the eurozone, because its costs can be externalized. Consequently, in the Eurosystem there is an inbuilt tendency toward continual losses in purchasing power. This overexploitation may finally result in the collapse of the euro.
Any tragedy of the commons can be solved by privatizing the specific resource. But instead of privatization, governments generally prefer regulation.
Such a regulation was installed for the European Monetary Union. It is called the Stability and Growth Pact, and it requires that each country's annual budget deficit is below 3% and its gross public debt not higher than 60% of its GDP. Sanctions were defined to enforce these rules.
Yet the sanctions have never been enacted and the pact is generally ignored. For 2010, all but one member state is expected to have a budget deficit higher than 3%; the general European debt ratio is 88%. Germany, the main country that urged these requirements, was among the first to refuse to fulfill them."
Now consider the US fiscal situation - deficit and debt - along with two failed US Treasury auctions in the last week and there is plenty of reason to get worried. Bernanke will surely inflate his way out of any large scale mess (a tool not available to Greece). In the end the common pays the price for inflation. There is a reason that you are seeing so many commercials for people who want to buy your gold...
And here is something shiny.
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