“Because liberty is so fragile, its true defender recognizes that war is its greatest enemy, and therefore the true patriot is often the courageous individual who opposes a particular war because he recognizes that it is unjust — that it would be fought for the wrong purposes or that the risk for the loss of liberty is greater than any benefit to be gained by the war.” - John V Denson
A tariff is a tax on imports that is used to satisfy a policy goal. Before the federal income tax became law in 1913, the US federal government was funded almost entirely by tariffs and excise taxes. An excise tax is a tax on a good that is produced in the US. The best example of a current excise tax is the federal tax on gasoline. The most infamous excise tax was the tax on whiskey in the early days of the Republic that resulted in the Whiskey Rebellion, centered in western Pennsylvania. The tax on whiskey was so unpopular that even George Washington couldn’t enforce it.
In a recent tweet, the US president said, “When you’re almost 800 Billion Dollars a year down on Trade, you can’t lose a Trade War! The U.S. has been ripped off by other countries for years on Trade.”
Trump continues to ratchet up tariffs on China claiming it is stealing billions of dollars by running large trade surpluses with the USA. If this view was held by a country bumpkin it would be irrelevant, but it becomes a serious problem when held by a man who can reduce the real incomes of billions of people, both American and Chinese.
One of my borrower customers told me a long time ago, “builders build, when lenders lend.” That could have been the title of Richard Vague’s new book. Instead, his book is entitled “A Brief History of Doom: Two Hundred Years of Financial Crisis.”
Some commentators consider fractional reserve banking as a major vehicle for the expansion in the money supply growth rate. What is the nature of this vehicle?
Fractional reserve banking arises because banks legally are permitted to use money placed with them in demand deposits. Banks treat this type of money as if it was loaned to them. However, is this really the case?
Mother Jones today reports on how the Trump administration is loosening some restrictions on logging in some public-lands areas of Alaska.
In response, a group of indigenous women traveled to Washington to oppose the plan.
Most of the article goes into how the forests — left untouched — are good for local residents, and how the forests are allegedly a defense against global warming.
[Editor’s Note: The Hill reports today on how the Trump administration has approved new rules to cut back the budget on federal met inspection. The Hill’s article highlights how the old myths behind the genesis of federal meat inspection are still very much alive and well.
