More Gold Standard Heresy
If there’s one thing people seem to like arguing about, it’s gold. Frequent commenter Ian Argent, over on his blog, has two posts on the difficulty of the gold standard here, and here.
Currently Browsing: Economics
Nov 16, 2010
Nov 9, 2010
One Step Ahead of You Megan
Megan McArdle notes on gold fever:
I’m going to dispute the notion that gold is a good hedge against the apocalypse. In the event that the US economy melts down so far that buying gold was a good alternative to holding US dollars, then buying canned goods, ammunition, and medical supplies was an even better alternative to gold. The only scenario I can think of in which it makes sense to stockpile a lot of gold is one where you and your household goods are unexpectedly teleported into the sixteenth century. If you worry a lot about this, then by all means, stockpile gold. But you should also probably take the precaution of stockpiling antibiotics and how-to books on dentistry.
I currently have no gold holdings, largely because I’ve been worried about it being a bubble. Of course, I’ve been thinking that since 2005, which had I invested all my money in gold then, I would have doubled it. But I’m wary of buying at the top of a bubble. I would never have the courage to hold gold long term.
I’ve never understood the libertarian fascination with the gold standard. Currently our currency is worth money because the government says it is. Libertarians have long wanted money backed up by gold. But what backs up gold? It’s never seemed to be a good idea to have your money supply dependent on something you have to mine from the ground.
Gold may be a good hedge against inflation, perhaps, but my inclination will be to pump my current cash reserves into the primary asset that is my house if inflation takes off. I need a new kitchen, a new shower, a good bit of exterior work, new driveway, and a once over of the yard by a decent landscaper.
As for preparing for total meltdown? Well, I think I have enough guns and ammunition available for barter to take care of myself pretty well.
Sep 21, 2010
Hucksterbee
I don’t even want to hear about Mike Huckabee polling well. Given how much the GOP’s fortunes have improved just based on outrage over the Democrats profligate spending and regulating (even after 6 years of the same by the GOP), I think the folks that like Mike Huckabee need to be drummed out of the party. I’m all for a big tent and everything, but Mike’s Jesus Juice isn’t something you can build a majority with. I’m fine with having a coalition with Christian conservatives, but religion and family aren’t promoted by big government. Bitter and I continue to live in sin because of the hope and change keeping our household underemployed, with the constant prospect of being unemployed. Makes planning an expensive event months later difficult. I can’t believe we’re the only people in this boat. Apparently birth rates are falling too, since people are afraid to start families because of the economy.
So Social Conservatives need to forget about Huckabee. The Hope and Change is killing family values more than anything.
Sep 10, 2010
Why I Love Barack Hussein Obama
Hey
Countertop here. I used to blog quite regularly over at the Countertop Chronicles, but life seems to get in the way, and my blog posts are pretty sporadic these days. In any case, Sebastian and Bitter asked me to chime in here with some words of wisdom and I thought I’d honor that. Been traveling a lot my self, which is why its taking me so long to post anything.
But I have a couple of posts I’d like to do over the next few days while they complete their exotic and romantic trip to the “birthplace” of our president. Who, as a resident of the DC area, I just love.
And of course, if you ever needed a reason to hate that bitter soul anymore, his destruction of the US economy (and my associated love of his actions) should really open your eyes.
You see, as a lawyer/lobbyist working for a trade association in DC Obama has been VERY good to me. I’m not going to get into my specific situation, but I wanted to share with you some salary survey data from the American Society of Association Executives (along with the League of Lobbyists, one of the two major DC lobbyists lobby groups – yes, even us lobbyists have lobbyists. Are you surprised???)
If any of you know any lawyers, or read Above The Law (or even Instapundit or the Volokh Conspiracy), let these numbers, pertaining to the legal head of organizations sink in for a moment (i can’t link to them because they aren’t publicly available on the web. For a not insignificant fee, you can purchase their salary books. Your employers HR department probably has copies of it – thats one of the tools they use in negotiating salary).
For all organizations in the US, the average base salary in 2008 was $165,306 but in 2010 – after 2 years of recession/depression that average salary has dropped to $159,631 a decrease of nearly $6,000 a year. But average’s are skewed by high salary’s, so looking at the median, you see the situation – nationwide – is even worse with median salary dropping from $155,400 in 2008 to $140,137 in 2010 or about $15,000.
Now, as an aside, to the average American making $65k a year, these probably seem like insanely high salaries and warrant little tear shedding. But put it in this perspective, considering the legal profession overall. These are the salary’s for folks who have a long and successful legal history, basically in house attorney’s who have practiced for 15+ years. The average Above The Law reader – going to a big law firm – would SKOFF at these. Those fools (and I say that with the understanding that 99% will be unemployed, divorced, and with a miserable life within 8-9 years) who take jobs at BIG Law firms are looking at making somewhere between $165-$185 a year WITH NO LEGAL EXPERIENCE AT ALL. Andrew Sullivan’s under blogger was looking into the insanity of this system just a few weeks ago.In my experience, it was only inevitable that the people hiring law firms would eventually stop paying for these overpriced goons.
But, that’s an aside, lets get back to the reason I am loving Obama these days. When you start to look at the same numbers, but focus only on how well the “folks” in Washington, D.C. are doing, the divide between the Haves and Have Nots is shockingly clear for all to see.
2008 Average Salary: $202,875
2010 Average Salary: $217,925 an increase of $15,000 a year
2008 Median Salary: $187,319
2010 Median Salary: $210,000 an increase of $23,000 a year
Now, its true that that salary base in DC has generally been higher than the rest of the country (though not as high as Chicago or New York) but I find it hard to believe the gap has EVER been this high. While the median salary of a Chief Legal Officer around the country has dropped $15,000 the median salary in DC has actually seen an increase of $23,000 a year – an annual projected earning divide of $38,000.
That’s real money, no matter who you are and the reason this DC based attorney is THRILLED to be in DC and not Cleveland or Detroit or Kansas City or L.A. or anywhere else (even though we producer nothing of real value in DC).
Sep 9, 2010
BATF Budget Growth
Dave Hardy at Of Arms and the Law posted a link to a Congressional Research Service analysis of the BATF budget for FY 2011. He notes that their budget has doubled in the past ten years while the number of employees has only increased from about 4,100 to 5,100.
As some have said, the only area of the economy growing seems to be government. Dave adds firearm sales to the mix as well.
Aug 26, 2010
California Crashin’
SayUncle reports on how companies that he’s worked for have saved significant money moving their operations out of California. This is certainly not going to help to restore California’s slumping housing prices. California is still the home for high-tech jobs, however, but one thing (other than their crappy gun laws) that’s prevented me from moving there is the fact that housing was unaffordable, and the salary differential was never high enough to justify the wildly inflated cost of living. I’ve never understood why tech jobs aren’t fleeing California by the busload and headed for greener pastures, like Austin.
Jul 19, 2010
Is That a Cliff?
You know we’re heading for the ledge with the accelerator pushed to the floor when noted free market economists are telling us we need to be more like Germany.
Jun 8, 2010
Flunking Econ 101
This isn’t much of a surprise, but the results are still rather stunning:
Who is better informed about the policy choices facing the country—liberals, conservatives or libertarians? According to a Zogby International survey that I write about in the May issue of Econ Journal Watch, the answer is unequivocal: The left flunks Econ 101.
I could have told you that. Read the whole thing. What’s amazing isn’t that they do worse than conservatives and libertarians, but how much worse they do.
Jan 25, 2010
Hayek vs. Kenyes Smackdown
If you want more of this, I strongly suggest reading some Russ Roberts novels. Yes, novels. He writes novels about economics.
Jan 22, 2010
How Appropriate
A California fashion designer launched his fall/winter 2010 line today. I guess the economy really does influence design:
American designer Rick Owens continued to plumb the depths of the dark side Friday, with a fall-winter 2010-2011 menswear collection of gender-bending, space age-y designs ready for the apocalypse. …Overall, the collection, with its asymmetrical hemlines and great floppy flaps of fabric, looked like the kind of wardrobe the father and son in Cormac McCarthy’s post-apocalyptic fable “The Road” would have fashioned out of found detritus.
If I were living in California, I suppose the apocalypse would be an apt design inspiration. Might as well be ahead of the pack, right?
