How Will Sequestration Affect Real Estate?

With all the fear mongering and finger pointing we've experienced from prominent pollititions recently, it's easy to be concerned how sequestration will affect the real estate market. Take a breath and relax, because sequestration will not affect the real estate market.

What is sequestration? Automatic spending cuts. However, even with sequestration, the government will still spend more this year than they did last. So there are no real spending cuts, only a slow down in the increase of spending.

There is no need for any doom and gloom. In fact most if not all of the observed effects are engineered. It's a political game and we are the pawns. The effect on the economy will be minimal, and on the housing market, even less so.

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Government Funded Propaganda!

The California Federation of Teachers (CFT) has released a cartoon presenting their arguments on why the rich need to be taxed more. The video is extremely biased and offensive. It features gready "fat cats" that cheat on taxes and pay less than everyone else. They use their "extra" money to invest in Wall Street and get even more wealthy. They justify their greedy ways by saying it will "trickle down" and they demonstrate this by urinating on the poor! THIS VIDEO IS ABSURD!

We could discuss how tasteless and biased this video is all day. However, I would simply like to point out a few pieces of hypocrisy:

1. The narrator is a member of the 1%.
2. The CFT invests their member's pensions in Wall Street and is one of the largest pension plans there.
3. Wall Street is where a company can go to get money to hire more people! Apple, Google, Facebook, Adobe, State and Local governments and even the CFT may at times seek investors on Wall Street.

The CFT is one of the two main teachers unions in California. They are affiliated with the American Federation of Teachers and AFL-CIO. It is one thing to create propaganda that demonizes job creators, but it is a whole different offense if the propaganda is paid for with tax dollars.

Tax dollars fund the government which pays teachers salaries. CFT membership and dues are a requirement in California and all Education Professionals pay dues without option. Those dues then fund cartoons like this.

I cannot believe we have stooped this low. I can't believe that people will actually watch this and believe it. Below is an excelent critique on the video.

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Dihydrogen Monoxide Kills!

It is surprising how many are unaware of this silent killer in their daily lives. It is estimated that Dihydrogen Monoxide kills 1.2 MILLION people world wide ever year. That is 2.4 times the number of people killed by guns! In the United States it is the 2nd leading cause of death for children under 12! It is time that we make it known DIHYDROGEN MONOXIDE KILLS!

The worst part is that all of these deaths could be prevented by simply making Dihydrogen Monoxide illegal! If we imposed a world wide ban of Dihydrogen Monoxide we could save 1.2 million lives each year!

Some would say that criminals would simply ignore the ban. I say that means most Dihydrogen Monoxide deaths would be among criminals.

Some would say that Dihydrogen Monoxide doesn't kill people, that people kill people. I say if people didn't have Dihydrogen Monoxide then they couldn't use it to kill people.

The facts are clear. Dihydrogen Monoxide kills 2.4 times the number of people killed by guns! Support the Global Ban on Dihydrogen Monoxide! Save lives! Share this with your friends and maybe you will save a life!

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Post Election Day: World Did Not End!

Good morning my fellow Americans. Some of you may be surprised to find that the sun came up, the world is still here, our country is still intact and guns can still be purchased in most states. I think this election season was an extra emotional one and for good reason.

I feel this election was a tipping point. Not necessarily toward the end of the country or freedom, not even between red and blue, but a tipping point of ideas. Two very different pictures of America and where we should take the country. It's not the first time our country as confronted these ideas, just the first time "equal opportunity" has been directly and openly replaced for "equal results."

This election was about free stuff; getting something for nothing. We have reached the point that a voting majority receives benefits that are paid for by a voting minority. There is no turning back. Human nature forbids it. Our path is chosen and our destination set. The only question is how quickly we will arrive.

As much as I would love to stop going to work, we cannot put our lives on hold. Life must go on. In the end, happiness and joy are a choice. Success, though impeded, is still a possibility. Friends and family will still love us.

We have only begun to fight.

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Why I Can't Wait For Nov. 6; It's not what you think.

Anyone that has spent the last few months on planet earth knows that the presidential election is coming. Politics can be seen everywhere you go. I believe that our country is at a tipping point and this election represents a point of no return. Considering how politically opinionated I am, it's ironic that I cannot wait for it all to be over. 

It's not because I think Romney is going to win, or because I want to be friends again with my liberal friends. It's because I want to know how to prepare for the next four years. Based on history, sociology and simple economics, I know how the next four years will look depending on who is elected.

If Romney is Elected:

• instant hiring will happen because confidence will be restored
• stock market will skyrocket for the same reason
• velocity of money will speed up and we will see inflation
• high interest rates to combat inflation
• housing market will continue with low inventory and price appreciation
• though a fiscal cliff will loom, faith will be restored that evasion is possible

If Obama is Elected:

• the US will most definitely hit a fiscal cliff: tax increases, forced budget cuts, & or debt ceiling
• stock market will crash; it has stayed afloat with hope
• hiring will remain sluggish for years
• housing market will continue with low inventory and price appreciation
• hyperinflation becomes an actual possibility, but not immediately
• freedom will become a luxury
• the cost of healthcare will skyrocket, even compared to recent appreciation
• the federal debt will hit 20T, maybe not for 5 years, but it will.
• US credit rating will be slashed again
• Fed WILL NOT stop printing money

You may not agree with me on any or all of these points, but I don't care. I have done the research. I have studied and observed great societies and their degradation. I am confident in my analysis and predictions. I also still believe Obama will win for the simple fact that I don't have faith in society. I have said it before, if Obama win's I'm headed for the hills. Not literally  but figuratively. My Homestead Project will be kicked into overdrive and I will be up and running by next summer.

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Ameritopia by Mark Levin

If you watched Ben and Dan on a Log, then you know I was reading Ameritopia by Mark Levin. In Ameritopia, Mark Levin summarizes the ideas of several conservative and utopian philosophers. I love the fact that he allows you to see both sides. He explains the positives and negatives of ALL the different philosophies.

I'm ok if you subscribe to a different philosophy than I, as long as you understand to what you subscribe. What bugs me is ignorance; thinking you support a good cause, but not realizing the negative and possibly hypocritical impact of your actions.

What is amazing about Ameritopia is that while explaining different philosophies in plain language, Mark allows us to see which ones actually work, and which ones lead to the degredation of society. The simple fact is that man is not perfect. Imperfect man will not allow for "perfect" society. Any attempt to achieve it results in horrible consequences. The next best thing is free society.

All in all, it is an excellent book. Mark Levin seemed to try and keep a non-biased point of view. However, it is difficult to maintain a well educated non-biased point of view. Read it! Decide for yourself!

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Freedom vs Free Stuff

Benjamin Franklin said (paraphrasing) "Those who give up freedom in exchange for security will have neither." The exact quote is from a letter he wrote, but you get the point. When we allow the TSA to look at our naked bodies in the name of security, we are giving up freedom for security.

Whenever we depend upon someone other than ourselves we give up some of our freedom and usually do so in order to obtain some sort of security. The more we accept the governments role in our lives the more they will have power to control our lives. Think about the new lunch program Mrs. Obama has promoted. Kids that have government lunches have given up their choice of what they get to eat for lunch in exchange for a free lunch.

You can't have freedom AND free stuff. Yet more and more this attitude of entitlement is growing. The day will soon come in which the government they rely on for so much will dictate how, where or if they can live, and because of their level of dependence they will have no power to object.

I know we are a long way away from being North Korea, but what most people don't understand is that a foundation for that kind of government is being built in front of our eyes. Once all the pieces are in place, and they almost are, it will only require a flip of the switch and the light of freedom will go out.

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Does Stimulus Spending Work?

I think this is my favorite video from LearnLiberty. What is the coorilation between government spending and economic growth? Not what you think. I don't care who you are or what you know, you can learn from this amazing video from Learn Liberty.

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Howard Stern Man On The Street

Howard Stern had someone go out and interview some idiotic Obama supporters on the street. The level of ignorance is outstanding. Granted, I'm sure the sample was skewed. There are conservative idiots too.

However, I wonder if we polled all the idiots, if we would find more conservative idiots or Obama idiots? I venture to argue that the conservative argument requires a certain degree of intellect and understanding.  I would wager large amounts of money that there would be more Obama idiots. After all they say, "If you are young and a liber it means you have a heart. If you are old and liberal, it means you have no brain."

Just to be fair I posted the video by Alexandra Pelosi featuring Stupid Republicans.

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The Road We Are Traveling

America is headed in a specific direction. Do you like where we are headed? Do you know what your children's lives will be like in 5, 10 or 20 years? I think we will arrive at our destination and I KNOW we will arrive sooner than expected. Don't believe me? You should study more history, because it repeats itself. When you study history it is obvious where we are headed.

Where We Are Headed:

• Financial Crisis: We've been there, we will be there again. When we are it will be worse.
• A Real Run on the Banks: Some European countries are already experiencing massive amounts of withdrawals. It happens when people don't have faith in their banks, gov't and or currency. Possible here? I think so, but not yet.
• More Bailouts, More INFLATION: the Federal Reserve is already printing money at the rate of $60billion per month for an indefinite period of time.
• New Money: There are some reports that a "new dollar" is already printing. Massive amounts of cash are being distributed. The people running the show know what is coming and are preparing.
• Revolutionary Movements: Occupy Wall Street, Muslim Brotherhood, Anonymous, Fabian Society, George Soros, "The Coming Insurrection"... should I go on? 
• NATIONALIZED HOUSING: This is the one that scares me, but the "housing is a right" argument has been used before to justify many things. This won't happen until total collapse and revolution.
• Wage/Price Controls: "It's to control inflation!" This also has been used before here in the United States!
• Work Armies: "It's your duty." In order to guarantee you will always have work you must give up your ability to choose what that work is. Thank you Marx.
• No Taxes or Inflation or Depressions: They will make this promise and try to follow through by controlling everything. They will fail.
• High-Tech Feudalism: Big Brother is watching already! Homeland Security Act, cameras in public areas, police radar that can see through walls, etc.
• Education as a Tool For Human Engineering: U.S. Department of Indoctrination (Education) has been going on for years. 
• Regionalism as a Transition to World Government: UN
• WORLD MARXISM!!

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Where Were You September 11?

Every so often there is an event that is etched so deeply into our memories that we will not forget. Pearl Harbor, JFK assassination, and September 11 terrorist attacks on the World Trade Center.

I wasn't alive for the first two, but I remember the last. I will always remember that FREEDOM is fragile and as there is evil in the world, there will always be enemies of freedom. Those wanting to destroy it.

Those enemies may be terrorists, anchormen, or  politicians. They are everywhere and we must always stand firm against them. Always remember September 11. Always remember YOU ARE FREE!

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Laffer Curve: Why Raising Taxes Won't Balance the Budget

The Laffer Curve is a principle that at some point tax revenues begin to decrease as you increase tax rates. The reason is that income is the incentive to work and make more money. The more the government taxes, the less incentive there is to work and make more money.

You might think, "But people need money?" or "A little money is better than no money!" But the Laffer Curve is economic fact. The only question is at what tax rate does tax revenue begin to decrease?

According to the research done by some of the countries most influential LIBERAL economist, that rate is 33%. Raising taxes above 33% will actually decrease the governments tax revenues. Therefore, raising taxes on the rich WILL NOT balance the budget. In fact it will DECREASE tax revenue and increase the deficit. 

However, the people in the country that are currently paying less than 33% may be taxed more in order to increase tax revenues. In fact a flat tax of 33% may maximize the possible tax revenues of the government. Though I am an advocate of a flat tax, I am also an advocate of decreasing expenses and would prefer a flat tax closer to 20%.

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Why The Fed Isn't Worried About Inflation

I've been thinking a lot about why the Fed is so willing to print money (ie quantitative easing).  Essentially, there are 3 reasons they are not worried: money supply, velocity of money, and wage deflation.

1. Velocity of money, how quickly money moves through the economy, has to be high for inflation and it is really slow right now.

2. The money supply was extremely decreased by all the debt discounting and write offs that happened as a result of the housing crisis. A decrease of the money supply leads to deflation, which is really bad. To counter that they are printing money.

3. The average median household income has dropped almost 10% recently. This is very bad. When people make less, they spend less. When people spend less there is less money in circulation and that can lead to deflation (ie bad).

The fed isn't worried, and I am not worried, about inflation in the short term because it isn't likely to happen. It's more likely we see a deflationary period that can be very damaging to the already weak economy.

Long term the fed thinks they can take out the extra money by selling the debt they have been purchasing. This is only possible in pristine economic conditions that are not likely.

It is more likely that in the long run quantitative easing will cause more economic woes than it has prevented. It has always been this way, and as they say "history repeats itself."

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$16 Trillion in Debt!

I remember when I was freaking out over $15 trillion in Bloated Government Debt. Now we are at $16 trillion? This is insane. Just to give you some perspective of how big $16 trillion is.

1 million seconds = 11.5 days.
1 trillion seconds = 31,709 years.
16 trillion seconds = 507,344 years!

I think that says it all!

Government cuts are not a moral issue, they are a inevitable necessity. Either we make cuts and get our spending in check or we all go down the drain and we can't help anyone!

But wait! We can raise taxes! Ever heard of the Laffer Curve? Raising taxes doesn't work! However, every time the government has lowered taxes, every time, tax revenues have increased.

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Bill Nye Epic Fail: Creationism

I use to like Bill Nye. In fact in 6th grade they called me Ben Nye the Science Guy. Well Bill provided me with an EPIC FAIL by saying Creationism is not appropriate for children. And evolution is?

Creationism and Evolution should be taught side by side as two different guesses to a question for which we have no answer.

Can we evolve from bacteria? Sure. That isn't a big leap. However, going from nothing to a single cell organism is an incomprehensible leap. A single cell is an extremely complex thing compared to nothing. To say an amino acid can randomly turn into an organism is like saying you can solve a Rubix cube by closing your eyes and randomly turning pieces.

4,325,200,327,448,985,600! That's how many possible positions of a Rubix Cube. The record for fewest moves to solve a Rubix Cube is 20. That means that the probability of randomly solving a Rubix Cube is less than 1/325200327448985600^20. I couldn't find a calculator to compute that. I realize the actual equation for this probability is a little more complex, but you get my point.

If someone closed their eyes and randomly solved a Rubix Cube, wouldn't it be more likely that they had some kind of help? Likewise, isn't it more likely that something helped evolution along than it is that a cell magically appeared?

I'm not saying either is right or wrong. I'm saying that WE DON'T KNOW and therefore should teach that there are questions to which we have not yet found the answer. Bill Nye. Sorry bud, but even you don't have all the answers.

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Creationist Response

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Economic Truths of Human Behavior

A lot of people base economic opinions on mathematical equations (2-1=1). For example, tax the rich. If we tax the rich more it will give us the money the government needs for it's budget. The problem is that economics is a social science. It envolves psychology of large groups of people and how they react to economic decisions. For example, if you tax the rich too much, they move and take their money somewhere else that doesn't tax them as much. So in this case, an increase of taxes would result in a loss of tax revenue (see Laffer Curve).

The following are Natural Laws of Human Behavior in Economics originally created by G. Edward Griffin, author of Creature From Jekyll Isle.

1. Long-term price stability is possible only when the money supply is based upon the gold (or silver) supply without government interference.
2. For a nation to enjoy economic prosperity and political tranquility, the monetary power of its politicians must be limited solely to the maintenance of honest weights and measures of precious metals.
3. A nation that resorts to the use of fiat money has doomed itself to economic hardship and political disunity.
4. Fractional money will always degenerate into fiat money. It is but fiat money in transition.
5. When men are entrusted with the power to control the money supply, they will eventually use that power to confiscate the wealth of their neighbors.

Most of these laws are referring the monetary policy, which is one of the most prominent methods for economic interference. These laws are not all inclusive, but they are a good start. It makes the point that economic decisions cannot be made by equations and people cannot be expected to act like numerals.

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The Best Thing About Civilization!

This weekend I went backpacking. I was gone for four days, did about 32 miles and climbed Utah's highest peak, Kings Peak (13,527). The entire time I was gone I had no cell reception. That means no news and no internet. It was nice being disconnected for a while.

When getting back to civilization I was excited to hear some news. The first thing I found out is that I hadn't gotten a new niece yet. Something unexpected was that Mitt Romney had chosen his running mate! PAUL RYAN!

I remember when Paul Ryan gave the official Republican response to Obama's 2011 State of the Union Address. Right then and there I knew he was an excellent politician. Since I have learned much more about the House Budget Committee Chairman. He also has his own budget plan to get us on track.

Besides his excellent plan to get the country fiscally on track, my favorite thing about Paul Ryan is his ability to articulate conservative values. He understands where our rights come from and how to preserve them. I would rather have him for President, but VP is a good consolation.

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How To Eliminate the Fed

I have to admit that this is not my plan. In fact, I'm not even sure ending the Federal Reserve would be a good idea. This plan is outlined in the book "The Creature From Jekyll Island." The point is that you can't just make the fed disappear overnight, because that means our currency, literally the blood of the economy, would disappear as well. There has to be a systematic plan to break our dependence of the fed, and replace our currency with something better. Although, some of the steps are simply summarized, this is the path. This is how it could be done.

Step 1: Repeal Legal-Tender Laws: Right now the Fed note is legal tender for all debts, public and private. By repealing legal-tender laws Fed notes will still be accepted to pay your taxes, but private individuals will be free to reject or discount them as they see fit. It will also no longer be the "official" currency of the United States, freeing it up for Step 6.
Step 2: Freeze the Fed: Freeze the amount of Reserve Notes except for what is needed in Step 6 & 10.
Step 3: Restore Silver Dollar: Define the "real" dollar in terms of precious-metal content (ie silver dollar). Silver is a classic and historical success. It is by far the most successful currency of the past and hopefully the future.
Step 4: Establish Gold Back Up: Establish Gold as an auxiliary monetary reserve which can be substituted for silver when necessary; not at a fixed ratio, but whatever ratio the free market allows.
Step 5: Restore Free Coinage: Allow anyone to bring in precious metals and have the mint turn them into gold/silver coins. This allows for the market to adjust the money supply as required to avoid inflation and deflation due to money supply constraints.
Step 6: Pay Off National Debt: Pay off the national debt with Fed notes. Yes, this will cause Fed notes to inflate, but the deed has already been done. Congress decided long ago that we would use Fed notes to pay off the national debt. It's the only thing we have available to do so, but by doing Steps 1-5 we can free the economy from some of the consequences so it can live to thrive another day.
Step 7: Pledge the Fed's PM Reserves: The Federal Reserve claims to have a horde of gold. That gold should belong to the citizens and needs to be used to back currency like it was originally intended.
Step 8: Determine Real Value of Fed Notes: Determine the weight of the Fed's Gold and Silver reserves. Determine the number of Fed Notes in circulation. By knowing the number of notes and the amount of reserves, determine the actually value of Fed notes in real silver dollars.
Step 9: Retire Fed Notes: Now we know what they are worth, offer silver and gold reserves in exchange for Fed Notes. This will retire the Fed notes from circulation and add Silver Dollars into circulation in equal numbers.
Step 10: Issue Silver Certificates: When retiring Fed Notes, give the option to take the coinage or notes that are 100% backed by silver. Silver certificates will become the new paper currency.
Step 11: Abolish the Fed: We have basically eliminated all that the Fed did and therefore all reason to have the Fed. It's time to abolish the Fed.
Step 12: Re-Itroduce Free Banking: NO MORE BAILOUTS! Cut them loose from all protection at tax-payer expense. Replace FDIC with private insurance. Require banks to keep 100% reserves for all demand deposits.
Step 13: Reduce the Size of Gov't: The scope of government should be limited to the protection of life, liberty and property. NOTHING MORE! When the government tries to do too much, it does nothing well. It becomes a strain on the people and the economy. The Fed is our 3rd national bank. BIG GOVERNMENT = NEW FED. There is no point in eliminated the Fed without decreasing the size and scope of the government's power. Otherwise, we will just get a "new" Fed in a few years.
Step 14: Restore National Independence: Big Government and Tyranny is a threat on the domestic and international level. The only way to protect ourselves from global tyranny is by limiting our interdependance with foreign governments.


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Chick-Fil-A! Enough Already!

Ask a conservative Christian, owner of a restaurant chain that is closed on the Sabbath, how they stand on gay marriage, and still act surprised!? What did you expect!?!?!?!? How can you be surprised that they support traditional marriage?

It's ok to have a parade to celebrate your right to be gay, but the moment someone celebrates their right to be straight everyone cries intolerance! WTF?

It's not like Dan Cathy, owner of Chick-fil-a, said anything against a persons right to practice homosexuality. It's not like they refuse to serve people that are homosexual. All he did was exercise his right of free speech to state his position on gay marriage.

“We are very much supportive of the family — the biblical definition of the family unit. We are a family-owned business, a family-led business, and we are married to our first wives. We give God thanks for that," (Blaze).


So, in support of Dan Cathy's freedom of speech, and his courage to stand up for what he believes in this world of hating hypocrites (ie liberals), Rick Santorum spoke out in support of Chick-fil-a and former Arkansas Governor Mike Huckabee delclared August 1st Chick-fil-a appreciation day.

This is how supporters reacted.

This is how liberals reacted.

Wait? Who is Intolerant Again?

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Don't Audit The Fed!!!

Anyone that thinks the world's important financial markets still believe that the Fed is using any kind of sane reserve ratio is mistaken!

The world knows the Fed is broke. They know that the game is a farse! So why do they still play it? Because it's the only game that is played! It's been played for 100's of years and if you know how to play it you can make lots of money!

The only thing auditing the Fed will do is WASTE TIME. The audit would be held up and lost in endless government bureaucracy. It would be an excuse for politicians say they are doing something. Years later we would find out what we already know and nothing would change, because no one cares and no one would be surprised.

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