Bringing people to the light

Why is capitalism portrayed as evil by many artists? Because its easy to suspend thought, much easier than thinking. Here are a couple of interesting views:

The case for gold

Some of my libertarian friends will tell me that gold has no intrinsic value, and pays no dividend so why bother owning it? Of course that is true. You can't eat gold, but it makes great jewellery, can be used in the electronics industry in small amounts, is still used by dentists, has a minor role in space exploration, but not much else. The point that is often missed in their argument, is this: for whatever reason gold has been used as a method exchange among people for thousands years. That is indisputable. Gold can, and has been used as money. However dragging around bullion or any other precious metals in your pockets has its downside, literally. The weight of the metal and the problems of storage have created proxies for gold. Once-upon-a-time paper money was a proxy for gold; no longer, too bad. Today if you want to buy gold you can at some banks, or other outlets. The other way to buy gold is through the proxy of an exchange traded fund (ETF), a little more scary but much more convenient. One of the largest ETF's, has the symbol GLD on the New York Stock Exchange. A friend of mine posted an article on the mises.org website today that simply must be read to understand why gold could be important soon. Have a look here.

Pope declares: The end of antisemitism?

It took a German Pope to exonerate the Jews for killing Jesus. From now on the phrase "a day late and a dollar short" will be directly referenced to that pronouncement in the Pope's new book.

I'm sure Jews around the world will breathe a sigh of relief when they read:
"Now we must ask: Who exactly were Jesus' accusers?" the pope asks, adding that the gospel of St. John simply says it was "the Jews."

"But John's use of this expression does not in any way indicate -- as the modern reader might suppose -- the people of Israel in general, even less is it 'racist' in character," he writes.

"After all John himself was ethnically a Jew, as were Jesus and all his followers. The entire early Christian community was made up of Jews," he writes.

So John was not a self-hating Jew. Apparently it was the Temple aristocracy that was the guilty party, not all of Jewry. What a relief! Oops, sorry for this and this! Who says religion is irrelevant.

What is the tipping point to economic strangulation?

That is the question posed at the end of an article in the National Post by Kevin Libin. Apparently in Egypt more than one-third of the working population was employed by the state. That may have been the tipping point that brought down the Mubarak regime earlier this month.
The same kind of situation is happening in many jurisdictions around the world. When the size and cost of the public sector is factored together with their near and longterm entitlements, and the private sector is so burdened and disadvantaged, something has got to give. That maybe what is playing out in Wisconsin and what prompted an article in the New York Times to ask: Is Wisconsin the Tunisia of collective bargaining rights? Talk about mixing metaphors.
In Canada the same kinds of problems occurred in the 1990's when the Liberal government of the time instituted severe cuts to the size and spending of the federal government with very positive economic results. These same problems are beginning to appear again (see the graph); the Conservatives are in power now, but no matter, they spend like Liberals. This of course provides ample evidence that all the major parties in Canada are identical in power - spend and tax or borrow from the future. They all do it.
Even in smaller jurisdictions like cities in Canada or the US something will have to give and soon. The City of Toronto has frozen municipal taxes for 2011, but he future looks bleak for the new cost conscious administration, with a possible $770 million dollar shortfall for 2012. I'll predict an interesting and possibly violent next few months/years.