Wanted to write a brief note on some really concerning events.


The riots in London are now on three days and now have spread to other cities in the UK, Liverpool and Birmingham are notable. From what seems to have been a peaceful march from the family and supporters of a young man shot by Police on Friday, the riots have spread from Tottenham. CNN Report Sadly, it appears that gangs and large groups of young people are taking this opportunity to create havoc, with widespread looting and setting fires. The BBC speculates that the rioting is spreading due to the influence of social media which has covered the riots and inspiring copycat gangs around the UK. I also feel that the youth have come to a crossroads with a rapidly deteriorating economy both domestically as well as abroad, and have found an excuse to take issues into their own hands and fulfill material desires quickly.
I wish a quick resolution in this absurdly self-destructive riot and swift justice brought upon those that have fought against the law in the UK. Order must be established quickly and with the return of the Prime Minister and several political party leaders from their respective vacations, hopefully the situation can be calmed.


The stock market is going straight into the toilet. Amid complicated regulations on credit ratings for global economies sinking investor confidence in all markets is the real consumer panic that is spreading. To read how global markets are going to affect you, the BBC has a great article about it: BBC Eurozone crisis
To put it shortly, a lot of the people that you may trust with your money invest in the stock markets. These sort of long term investments pay dividends to the companies which pass on the profits in small increments to you mainly through interest rates offered on long term savings accounts (such as retirements or college funds). (Obviously if you manage your own portfolio, you know the direct effects of fluctuations in the market).

Now we have heard a lot about the National Debt Crisis in the last several weeks and from that you may have gathered that the US owes a lot of money to a lot of people. You may ask yourself, “Why doesn’t the US just print out a bunch of money and give it back? We are still among the greatest economies in the world and since we moved off the gold standard (money printed was backed by gold) decades ago, that has got to be worth something, especially to get a little breathing room.” That would trigger the almighty inflation of the US dollar and the central bank would likely respond with changes to the interest rate of borrowing to combat it, which would slow the economy even further because of the tightening of investments. Thus we are back at square one, a bit worse off than before.

All I’m trying to say is that perhaps bureaucracy is tripping over itself a bit trying to heal the economy and if there was time for radical changes to the financial industry and regulation in this country, it will be soon. And it needs to be swift. With all the talk about innovation and killing small business corrupting the minds of the masses, I’m here to tell you to try to support a free banking system with a consumption tax rate. Please try and stay with me on this:

Currently, the US government protects accounts under the FDIC that was introduced after the Great Depression. This gave banks the ability to invest more due to the lesser amount of reserve that they had to keep. (Banking is complicated. Banks must carry a certain amount of cash at all times to cover the day to day transactions for its accounts, I believe the number is somewhere around 10-15% of the worth of all accounts held.) Banks invested in risky endeavors which ultimately led to the current economic recession that we find ourselves in today. Under a free banking system, banks would be allowed to fail and while everyday blokes such as you or I could lose our life savings, it would demand lower interest rates, higher accountability and visibility in banking affairs and careful investment by all parties involved. Furthermore, switching from an income tax system that we have in place to a consumption tax system (in which income is not affected by taxes, only the purchase of goods and services would be taxed at a higher rate) would greatly assist in the lowering of the National debt because the endless loopholes and levels of taxation on different classes would be nullified and anyone, regardless of citizenship status, that spends money in the country will be supporting the country.


I got a bit carried away and there are a lot of things in this post. If you have questions/concerns or want to point out glaring errors in my analysis/suggestions, I welcome you to comment on this post or send me an email. I’d love to get some insight outside of the political agendas that dominate discussions around the web.


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