text:
von Mises made several important contributions to the theory
of money: the regression theorem, which explains why money originally
developed from non-monetary commodities; the refutation of any
concept of neutral money that somehow does not redistribute income
when the money supply changes; the idea of every existing money
supply as maximizing benefits to participants in an indirect-exchange
economy; changes in the money supply as conferring no identifiable
increase in social value; and the monetary theory of the business
cycle. In my opinion, these were peripheral to his major contribution
to monetary theory. His most important and unique contribution
was a single idea, which is denied by all other schools of economic
State's coercive interference in either money or banking, including
its licensing of a monopolistic central bank, reduces all men's
freedom and most men's wealth.
Mises offered
a theory of money and credit that is "market endogenous," i.e.,
a theory of money that affirms the free market's ability, through
men's voluntary transactions, to establish market-clearing prices,
day after day, year after year, apart from any government agency's
decree. All other schools of monetary thought deny the ability
of an autonomous, self-regulating free market to maximize efficiency,
freedom, and productivity. Every other school of opinion calls
for State intervention into the money supply: always increasing
it, never decreasing it. All other schools of thought favor the
creation of a central bank, legally independent of the government,
yet the offspring of the government, possessing a lawful monopoly
over the control of the money supply. In short, all other schools
of economics are statist in their theory of money and credit.
Mises, by
establishing his theory of money on the conceptual foundation
of the free market, alone offered a completely free market theory
of money and credit. He called on civil governments to enforce
banking contracts that establish both money certificates and credit
money, just as governments should enforce all other private contracts.
Mises offered a theory of money and credit in which civil governments
have no monetary policies at all.
A free market
money system does not exist today. Every national government,
through its licensed monopoly, the fractionally reserved central
bank, and its licensed oligopolies, fractionally reserved commercial
banks, is deeply involved in setting monetary policy. For national
governments in general and the U.S. government in particular,
Mises had a single policy recommendation: create no new money.
He made this point in his 1951 essay, "The Return to Sound Money."
first step must be a radical and unconditional abandonment of
any further inflation. The total amount of dollar bills, whatever
their name or legal characteristic may be, must not be increased
by further issuance. No bank must be permitted to expand the total
amount of its deposits subject to check or the balance of such
deposits of any individual customer, be he a private citizen or
the U.S. Treasury, otherwise than by receiving cash deposits in
legal-tender banknotes from the public or by receiving a check
payable by another domestic bank subject to the same limitations.
This means a rigid 100 percent reserve for all future deposits;
that is, all deposits not already in existence on the first day
of the reform (p. 448).
Where statist
money is concerned, Mises had only one suggestion: do not add
to the money supply. Enough is enough.
Mises also
opposed deflation as a policy, just as he opposed inflation. But,
most important and most adamantly, he opposed any further intervention
by the State or its central bank to increase the money supply.
He wanted government out of the money-creation business. Every
anti-inflation policy must begin with the policy-makers' refusal
to add to the central bank's monetary base.
This position
has a corollary, which Mises stated explicitly: the State and
the central bank must not interfere with bank runs. There should
be no State intervention of any kind in saving over-extended banks
that are being bankrupted by their depositors. It is the State's
attempt to undermine contracts that is the root cause of credit-money
inflation. No bank should be too small to fail or too big to fail.
The threat of bankruptcy must be on the mind of every banker at
all times, in order to offset his temptation to issue fiduciary
This position
leads to a policy conclusion: The deflation of the money supply
is valid if this deflationary process is the result of depositors'
withdrawal of their funds and the conversion of these funds into
currency, which is not fractionally reserved. To the degree
that the existing money supply is the result of fractional reserve
banking, the State and its central bank should accept any deflation
that results from the reduction of fractional reserves by the
decisions of depositors to exchange deposits for currency and
not redeposit their money in another member bank in the fractional
reserve banking system. A bank run is the depositors' negative
sanction that provides them with their sovereignty over their
own property, i.e., their money.
As a defender
of the ideal of free banking (see Part
IV), Mises again and again warned the State not to intervene
in banking affairs, except to enforce contracts. The depositors'
decision to withdraw their funds by converting their deposits
into currency is the essence of the original contract between
banks and depositors. So, while Mises was not an advocate of the
State's deliberate policy of deflation, he was a strong advocate
of the legal right of depositors to withdraw their money out of
their banks on demand. The State should not intervene in order
to save over-extended commercial banks. But over-extended banks,
by becoming insolvent, reduce the supply of credit money. Thus,
Mises was not an opponent of deflation in general, for thus would
have made him an opponent of depositor-induced deflation. He was
an opponent of State-induced deflation. Nowhere in his writings
did he recommend that the State or the central bank create new
monetary reserves in order to offset a reduction in the money
supply caused by depositors' withdrawal of their funds. On the
contrary, in "The Return to Sound Money," he told us that what
is required is a complete freeze on the central bank's creation
of additional money, for any reason.
money still means today what it meant in the nineteenth century:
the gold standard. The eminence of the gold standard consists
in the fact that it makes the determination of the monetary unit's
purchasing power independent of the measures of governments. It
wrests from the hands of the "economic tsars" their most redoubtable
instrument. It makes it impossible for them to inflate. This is
why the gold standard is furiously attacked by all those who expect
that they will be benefited by bounties from the seemingly inexhaustible
government purse. What is needed first of all is to force the
rulers to spend only what, by virtue of duly promulgated laws,
they have collected as taxes. Whether governments should borrow
from the public at all and, if so, to what extent are questions
that are irrelevant to the treatment of monetary problems. The
main thing is that the government should no longer be in a position
to increase the quantity of money in circulation and the amount
of checkbook money not fully — that is, 100 percent —
covered by deposits paid in by the public. No backdoor must be
left open where inflation can slip in. No emergency can justify
a return to inflation. Inflation can provide neither the weapons
a nation needs to defend its independence nor the capital goods
required for any project. It does not cure unsatisfactory conditions.
It merely helps the rulers whose policies brought about the catastrophe
to exculpate themselves. One of the goals of the reform suggested
is to explode and to kill forever the superstitious belief that
governments and banks have the power to make the nation or individual
citizens richer, out of nothing and without making anybody poorer.
The short-sighted observer sees only the things the government
has accomplished by spending the newly created money. He does
not see the things the non-performance of which provided the means
for the government's success. He fails to realize that inflation
does not create additional goods but merely shifts wealth and
income from some groups of people to others. He neglects, moreover,
to take notice of the secondary effects of inflation: malinvestment
and decumulation of capital (pp. 438-39).
Mises suggested
a reform: the re-establishment of a traditional, government-guaranteed
gold standard. The likelihood of implementing this reform rested
on an assumption: "Keynesianism is losing face even at the universities"
(p. 439). His timing was way off. Keynesianism had only just begun
to exercise control over every area of American economic opinion.
When, in the mid-1960's, monetarism visibly raised its anti-gold
standard head, the case against the gold standard and in favor
of fiat money grew even more academically acceptable. Thus, his
statement in 1951 seems utopian today: "The political chances
for a return to sound money are slim, but they are certainly better
than they have been in any period after 1914" (p. 439).
Mises opposed
a State-imposed policy of deflation. To re-establish a traditional
gold standard, the national civil government must guarantee to
buy and sell gold at an official price. For a national government
to re-establish the official price of gold at the price that had
prevailed before the expansion of credit money would require a
policy of deflation leading to economic contraction. This is what
Great Britain had done after the Napoleonic Wars in 1815 and after
World War I in 1925. Mises regarded both decisions as unwise (p.
455). So, Mises said, the official price of gold should be restored
at something close to the free market price. He said that the
Treasury must sell gold at the fixed price for what we call M-1:
currency, token coins, and checks drawn upon a member bank (p.
He did not
say, but obviously believed, that the monetary reserves of the
central bank must not increase as the result of a hike in gold's
official price. The official price today is $42.22 per ounce.
It was $35 in 1951. He thought that it might have to be raised
to somewhere between $36 and $38 (p. 449) — perhaps 10 percent.
If gold's official price were raised to the free market's price
today, the Federal Reserve System's Open Market Committee (FOMC)
would be required to sell Treasury debt to offset the gold price
revision's increase in the monetary base. Alternatively, the Fed's
Board of Governors would have to raise the reserve requirements
for commercial banks. Either policy would raise interest rates.
The gold
reserves of the United States in December, 2001, totalled a little
over $11
billion at the official price of $42.22. This would have to
be multiplied by about seven, or about $77 billion, an increase
of $66 billion. The FOMC would then have to sell $66 billion of
Treasury debt. With the adjusted monetary base at about $655
billion, this would be a 10% decrease in the monetary base.
This would raise short-term interest rates. If the Federal Reserve
System then refused to interfere by adding to reserves —
which Mises's reform proposal mandated — a deflation of the
money supply would take place when bank runs toppled insolvent
banks. There would be a recession, or worse.
proposal was to restore the traditional government-guaranteed
gold standard, in which every national government's central bank
would still keep on deposit the bulk of the national economy's
gold. If the public were to begin to redeem gold, the central
bank would then sell Treasury debt, thereby deflating the money
supply, thereby raising interest rates, thereby halting the gold
outflow. "Keep your money in the bank at high interest rates.
Don't withdraw non-interest-paying gold." Deflation with rising
interest rates create recessions.
The money-stabilizing
strategy of the traditional gold standard always assumed that
most people would always leave most of their gold on deposit with
the commercial banks (pre-1914) or with the central bank (post-1914).
Put another way, the logic of the traditional State-run gold standard
assumes that the public must always be kept from reclaiming most
of its gold by having banks call in loans, shrink the money supply,
and raise interest rates. But there is always the other option
for the banks: default. The political popularity of default eventually
wins out over the pain of recession. At that point, advocates
of the gold standard are back to square one: blamed for the recession
and rejected as obsolete voices of the past. They are dismissed
by politicians and economists as barbarous relics.
gold in the possession of fractional reserve bankers is like issuing
a license for them to steal the gold whenever some emergency appears
that supposedly justifies the State's suspension of gold convertibility,
i.e., another violation of contract. Once people's gold is in
the possession of fractional reserve banks, it will not be returned
to them. Initially, banks will raise interest rates by reducing
credit money in order to persuade depositors not to reclaim their
gold. When this fails to persuade them, the banks will steal their
gold by defaulting on their contracts to redeem gold on demand,
and the State will authorize this. Once a nation's gold supply
goes into a fractional reserved banking system, most of it never
comes out. This is the golden rule of fractional reserve banking:
Do unto depositors before the depositors do it unto you.
Mises did not formulate this rule; I did. He merely described
its operation. I learned how it operates from him.
Mises wrote
in 1951: "The Classical or orthodox gold standard alone is a truly
effective check on the power of the government to inflate the
currency. Without such a check all other constitutional safeguards
can be rendered vain" (p. 452). Mises in this passage implicitly
accepted the fact that the United States government, through its
monopolistic central bank, controlled the money supply in his
day. The United States government had confiscated the public's
gold in 1933. Mises in 1951 affirmed the classical gold standard
as the only way to keep the civil government from inflating the
money supply. This does not mean that he believed that only the
civil government should control the money supply. He
did not believe this. On the contrary, he believed that the free
market should be the sole source of money. He defended this position
when no other economist was willing to. His followers still are
the only economists who defend this proposition. The classical
gold standard was his recommended policy for an undesirable condition:
control over money by civil government.
The political
theory of judicial sovereignty rests on a presupposition: there
is no higher earthly court of appeal beyond a sovereign State.
This is an updated version of early modern Europe's doctrine of
the divine right of kings. This doctrine was popular with King
James I. It was rejected by his contemporary, the English constitutional
law jurist, Sir Edward Coke ["Cook"]: Petition of Right
(1628). The theory of the classical gold standard assumes
the legal sovereignty of the State over money. In terms of this
theory, there is no judicial authority to preserve the classical
gold standard from the government's desire to escape its restrictions.
The classical gold standard, by definition, is self-imposed by
the civil government. So, when incumbent politicians in search
of new money to buy votes tire of this self-imposed limitation,
they abandon it. Who can stop them? Not depositors, who are the
default's immediate victims. Not voters, who do not understand
monetary theory. Not Keynesian or monetarist economists, who hate
the gold standard. Not supply-side economists, who are of two
opinions during recessions: the need to defend the gold standard
and the need for the central bank to create more money, after
tax cuts have failed to revive the sagging economy.
By 1949,
Mises had no illusions about the honesty of governments or their
statutory creations, central banks. In Human
Action, he wrote derisively of the Bretton Woods gold-exchange
standard: "In dealing with the problems of the gold exchange standard
all economists — including the author of this book —
failed to realize the fact that it places in the hands of governments
the power to manipulate their nations' currency easily. Economists
blithely assumed that no government of a civilized nation would
use the gold exchange standard intentionally as an instrument
of inflationary policy" (p. 786).
A gold standard
that the public can safely rely on must not have anything to do
with a government's guarantee to redeem gold on demand. Such a
guarantee is unenforceable in any government court after the government
revokes it. Governments eventually cheat on their promise to redeem
money-certificates for gold. They either devalue the currency
(lower the quantity of gold redeemable per currency unit) or else
they default: cease redeeming IOU's for any quantity of gold.
There have been no exceptions in history.
The definition
of a crazy person is someone who keeps doing something, over and
over, even though it fails to achieve his goal. It is time for
defenders of sound money to cease being crazy. It is time to stop
promoting the traditional gold standard. The traditional gold
standard is a game for suckers. The government or its licensed
agents announce: "Bring us your gold, and we will store it for
you free of charge, and you can get it back at any time at the
price at which you sold it us." To which I reply: "There ain't
no such thing as a free government-guaranteed gold standard."
How, then,
can a nation return to a gold standard that is the product of
the free market rather than the State? I offer the following suggestion
in the spirit of Mises, though not the letter.
In the underground
vault at 33 Liberty Street, New York City, the Federal Reserve
Bank of New York stores most of the world's gold. This gold belongs
to central banks. It used to belong to private citizens. The vault's
walls protect the Federal Reserve's gold and foreign central banks'
gold from the public. There are walls for the vault at Fort Knox
that perform the same restrictive function.
All over
the world during the twentieth century, the State, in conjunction
with State-created central banks, deliberately stole the public's
gold. In Europe, this was done in two steps. At the beginning
of World War I, every government passed laws allowing its commercial
banks to refuse to redeem gold on demand. (Step one.) Governments
thereby escaped a future vote of monetary no confidence by depositors
who had unwisely trusted the State to enforce laws of contract.
The depositors' IOU's to gold became "IOU-nothings." The national
central banks then created additional fiat money and bought the
newly confiscated gold. (Step two.) The gold wound up in the vaults
of the national central banks or their main fiduciary agents,
the Bank of England and the newly created Federal Reserve System.
The Fed's
gold, which was bought and paid for with its very own fiat money,
along with foreign central banks' gold that is held for safekeeping
and convenient inter-bank swapping, has always been stored at
the Federal Reserve Bank of New York.
the day that this gold begins to be shipped to Basle, Switzerland,
to be held for safekeeping by the Bank for International Settlements,
is that day that American sovereignty gets unofficially transferred.
In the United
States, the theft was more blatant: in 1933, the government made
it illegal for American citizens to own non-numismatic gold coins
or non-jewelry gold. The government openly stole the gold from
the public, and then sold it to the Federal Reserve System in
exchange for the Fed's newly issued money. Then the Treasury spent
the newly created money. (See Part
banks have demonetized gold by stealing it. This has enabled them
to monetize government debt with far less restriction: no threat
of any withdrawals of gold by the previous private owners of gold.
This demonetization of gold took place three generations ago in
Europe, two generations ago in the United States. It is "old news."
This happened so long ago that it was never on anyone's radar
screen. It happened prior to the invention of radar.
How can
the public re-monetize its gold? By demanding the return of the
gold. Central banks must be compelled by law to return the stolen
goods. The stolen gold surely will not be returned by the thieves
voluntarily. (Here, let me imitate a Chicago School economist:
"Let us assume that there are two people, a thief and his victim's
grandson. The thief has on his side the police, the media, and
every economics department on earth, including mine. If transaction
costs were zero, the victim's grandson could suggest a mutually
beneficial exchange." And so forth.)
I am unaware
of any non-Austrian school of economic opinion that has seriously
suggested the return of central banks' gold to the public. The
operating assumption of all rival schools of monetary opinion
is this: "Stealers, keepers; losers, weepers." Also, "Possession
is ten-tenths of the law."
This return
of the public's gold need not be deflationary. Each government
could issue non-interest-bearing, 100-year bonds to its central
bank. The bonds should be equal in value to the officially listed
value of the central bank's gold supply. In the United States,
this would be $42.22 per ounce times the ounces held, or $11 billion.
This gold presently earns no interest; therefore, neither should
the bonds. The bonds will replace the gold as the central bank's
legal reserve for the nation's money supply. No muss, no fuss:
call these bonds a gold tranche or whatever fancy-Dan word that
economists choose. I would call them Solvency Operating Bonds,
or SOB's.
The Treasury
Departments of the world would then possess the gold that they
sold decades ago to their central banks. But not for long. All
of this gold — every ounce — would be sold to the public
in the form of coins, preferably one-tenth of a troy ounce of
gold, 99.9% fine, but with additional copper or some other hardening
metal, so that the coins can circulate without much wear. The
time limit on the sake of this gold would depend on the output
of the mint on a 24×6 schedule. (Give them Sundays off.) The government
will then use the income generated from the sale of the coins
to reduce the government's debt. (This debt-reduction procedure
is not necessary to make the transition to a full gold coin standard,
but since I'm dreaming of that which is politically remote, why
not dream big?)
If the sale
of gold is politically unacceptable, then the government can hold
a national lottery, with all of the proceeds going to the two
dominant political parties, or to whatever other boondoggle is
acceptable to Congress. I do not care who gets the lottery money.
I care who gets ownership of the gold coins: the public. I think
a national lottery would generate more public interest in the
coins than a series of auctions. There is already an existing
distribution system: local convenience stores. Let local banks
get involved, too. "Come one, come all: get your tickets here!"
Call the
lottery "Golden Opportunity," or "El Dorado," or "Streets of Gold,"
or "End of the Rainbow." Call it "Return of Stolen Goods." Whatever
some New York ad agency thinks will work, use.
bought from the government or won from the government, the coins
will enjoy income-tax-free status for five years. The deal would
be this: unless the recipient sells the coins for currency or
bank credit money, he can keep them or trade them, income-tax-free,
for five years. So can the people who receive them in exchange.
Each coin will be income tax-free money for 60 months after the
release date of the coin, which will be stamped accordingly.
Want to
replace the fiat money standard? Want alternative markets in which
gold coins are recognized and sought-after? Just grant income-tax-free
status to each coin for five years. The "good" coins — tax-free
time remaining — will drive the "bad" coins out of circulation
after five years. This is the opposite of Gresham's Law. The "defunct"
coins will then be used mainly in what I prefer to call unofficial
markets, which will have several years to develop.
The reason
why the coins should be tenth-ounce coins is simple: no one will
want to receive change in paper money, because this change would
constitute taxable income: selling for paper money part of the
value of a tax-exempt coin. No one will want to receive taxable
money for tax-free money. The coins must therefore be small-weight
The governments
of the world are not about to give up their control over bank
credit money. The world is dependent on the existing structure
of credit-money prices. What I am proposing is the creation of
a parallel standard. Mises argued that parallel standards for
gold and silver existed for millennia. This is what I am proposing:
a free market gold coin standard side by side with a fiat money
standard for the government's bank money, which we have anyway.
All that my proposal would change is this: the return of the stolen
This gold-transfer
program would be opposed by "gold bugs," who are invested in gold.
The price of gold would fall if all governments started selling
all of the gold they have repurchased from the central banks.
Gold bugs are like condominium owners in New York City who are
opposed to price controls in general, but opposed to the abolition
of rent controls in New York City. Such an abolition would produce
windfall profits for the owners of rent-controlled buildings,
and capital losses for owners of condos. The available supply
of condo-competing rental property would increase. There would
be fewer cheap middle-class apartments, but the market for condos
would go down.
What is
good for the world would not be good in the short run for gold
bugs, of whom I am chief. That is the price of liberty.
Is my suggested
reform politically possible because it is conceptually possible?
No. I have described this reform only as an exercise to demonstrate
that a top-down, non-deflationary, political reform of the banking
system is conceivable. The public might respond favorably to the
offer of economic liberty, if given the opportunity. But this
opportunity will not be given — surely not by the present
system's beneficiaries, central bankers, who long ago established
the terms of debate regarding central banking. The debate is this:
politically independent national central banks vs. a single politically
independent international central bank. Other debaters need not
there will be a reform, one that undermines central banking.
The public
will at some point break the banks by abandoning today's officially
sanctioned money system. The central banks will inflate to keep
the inflation-induced economic boom alive. The public, through
the free market, will eventually abandon the official money system
and substitute an alternative monetary unit on its own authority.
Mises spelled this out in 1912: "It would be a mistake to assume
that the modern organization of exchange is bound to continue
to exist. It carries within itself the germ of its own destruction;
the development of the fiduciary medium must necessarily lead
to its breakdown" (TM&C,
p. 409). The defenders of central banking have persuaded the public
that the great advantage of central banking is "flexible money."
The public is going to get flexible money, good and hard.
The banks'
self-destruction could also go the other way: mass deflation.
Banks at the end of some future trading day may not be able to
clear their accounts with each other because of an unforeseen
breakdown in the international payments system. They may cease
operating because of what Greenspan has called a cascading chain
reaction of cross-defaults.
be sure, we should recognize that if we choose to have the advantages
of a leveraged system of financial intermediaries, the burden
of managing risk in the financial system will not lie with the
private sector alone. As I noted, with leveraging there will always
exist a possibility, however remote, of a chain reaction, a cascading
sequence of defaults that will culminate in financial implosion
if it proceeds unchecked. Only a central bank, with its unlimited
power to create money, can with a high probability thwart such
a process before it becomes destructive. Hence, central banks
will of necessity be drawn into becoming lenders of last resort.
But implicit in the existence of such a role is that there will
be some form of allocation between the public and private sectors
of the burden of risk, with central banks responsible for managing
the most extreme, that is the most systemically sensitive, outcomes.
Thus, central banks have been led to provide what essentially
amounts to catastrophic financial insurance coverage. Such a public
subsidy should be reserved for only the rarest of disasters. If
the owners or managers of private financial institutions were
to anticipate being propped up frequently by government support,
it would only encourage reckless and irresponsible practices.
(Speech, "Understanding today's international financial system,"
May 7, 1998)
Like a juggler
with too many oranges in the air at one time, fractional reserve
banking looks impressive for a while. Then it fails, taking the
division of labor with it. This is the ultimate price of fractional
reserve banking: the universally unexpected reduction in the
division of labor.
Expect it.
Gold does
not need an official price because no price needs to be official.
An official price is set by government officials. That is the
problem with every official price. The great advantage of a free
market, gold coin standard is that no government official possesses
the legal authority to set an official price for gold.
The classical,
government-guaranteed gold standard was never any better than
a government's promise to allow the public to redeem gold at an
officially fixed price. In every case, governments eventually
No defrauded
citizen can successfully sue a national government for its having
defaulted on its promise to redeem gold at a fixed price, for
the courts of the national government regard the national government
as legally sovereign, therefore enjoying sovereign
immunity from lawsuits that either the politicians or the
courts choose not to hear. When an official IOU for gold is issued
by a civil government or its licensed agent, the central bank,
it is worth the now-used paper that it is printed on. Any value
greater than this is the free market's imputed value to the government's
promise. In every case, this promise has been broken.
There are
a handful of people — only rarely are they academically certified
economists — who still call for a restoration of some version
of the classical gold standard, or even some version of the central
banks' gold-exchange standard. These people are well-intentioned
but naive. They look at a system that defaulted in 100% of the
cases during the twentieth century, yet they still call for its
restoration. They honestly expect to gain a permanent monetary
system settlement on their terms from the well-organized enemies
of every gold standard, whose power and wealth would be restricted
by any gold standard. Mises wrote in 1944, "The gold standard
did not collapse. The governments destroyed it" (Omnipotent
Government, p. 251). In the face of this historical reality,
today's tiny army of true believers who defend a government-guaranteed
gold standard tell us, "Next time, it will be different." These
people are slow learners.
central banks now own the people's gold. They are unlikely to
surrender this stolen gold until they have to. This "have to"
will be imposed, if at all, by some market crisis, not by conventional,
pre-crisis politics. Politically, there will be no change that
significantly restricts central banks' power over money until
the voting public imposes a change. This will not happen until
voters not only understand the logic of the free market gold standard
but are also ready to make this reform a single issue in their
voting behavior.
Today, there
is no understanding of the gold standard, classical or free market,
especially among economists. The public has forgotten all about
a gold coin standard. People have no awareness that the world's
central banks stole their grandparents' and great-grandparents'
gold coins. There will be no groundswell of political opinion
in favor of a free market gold coin standard until there is an
economic crisis that forces a reconsideration of monetary policy
on the politicians.
economic policy is preceded by economic theory. Today, the anti-gold
bias of monetary theorists is overwhelming. Every school of economic
opinion except the Austrian School believes that a national government
should enforce the decisions of its central bank, which establishes
and enforces national monetary policy. The only exceptions to
this rule are a few internationalists who believe that a world
central bank should establish monetary policy for every nation.
E. Read, the founder in 1946 of the Foundation for Economic Education,
used to say that we should postpone our attempts to implement
our grand schemes until we have made major progress in our own
personal programs of self-education and self-reform. Our reforms
should begin at home. I agree.
I have written
this little book on Mises's view of money in order to help readers
begin to think about the issue of money — in both senses
— and help them begin their own programs of intellectual
and financial self-improvement. Mises offered a theory of money
that was self-consciously based on a theory of individual decision-making.
He offered no grand scheme for political reform. He offered only
one policy: shrink the State.
Mises presented
a comprehensive theory of money which rested on only two legal
pillars, both of which have been undermined by modern law: (1)
the enforcement of contracts by the civil government; (2) the
right of peaceful, non-fraudulent voluntary exchange. His monetary
theory was a consistent extension of his theory of the free market.
He did not rely on a theory of State regulation of the monetary
system, any more than he relied on a theory of State regulation
of any other sphere of the economy. He denied the need for such
regulation. He showed why such regulation is counter-productive
for a society. He recommended only one monetary policy: the State's
enforcement of voluntary contracts. That was his recommended economic
policy in general. This minimalist theory of civil government
makes his theory of money unique in the history of academic economic
answer to the question, "What kind of money should we have?" was
simple: "whatever individuals voluntarily choose to use." He wanted
the State to get out of the money business. This included the
State's monopolistic agent, the central bank. He offered a comprehensive
theory of money that demonstrated that the State does not need
to be in the money business in order for a free market social
order to prosper. The money system, as is true of the other subdivisions
in a free market economy, is part of a self-adjusting, self-correcting
system of dual sanctions. These dual sanctions are profit and
loss. Money is market-generated. It is also market-regulated.
It is a product of consumer sovereignty, not State sovereignty.
The State is always an interloper in monetary affairs. The State
reduces market freedom and efficiency. The State makes things
worse from the point of view of long-term economic stability.
So does the State's now-independent step-child, central banking.
This theory
of endogenous money is unique to Mises and his followers. No other
school of economic opinion accepts it. Every other school appeals
to the State, as an exogenous coercive power, to regulate the
money supply and create enough new fiat or credit money to keep
the free market operational at nearly full employment with nearly
stable prices. Every other theory of money invokes the use of
the State's monopolistic power to supply the optimum quantity
of money. No matter how often some non-Austrian School economist
says that he is in favor of the free market, when it comes to
his theory of money, he always says, "I believe in the free market,
but. . . ." As Leonard Read wrote in 1970, we are sinking
in a sea of buts.
When they
are not outright collectivists, non-Austrian School economists
are defenders of the so-called mixed economy: economic direction
to the free market provided by State officials, on pain of punishment.
This position is clearest in their universal promotion of non-market,
State-regulated, central-bank money. Mises denied that there can
be a mixed economy. There are only State directives that affect
market operations, in most cases negatively. (Rothbard substituted,
"in all cases negatively.")
theory of money offers hope. The public is in charge, not central
bankers. The public will decide what money it prefers and how
it will be used. The free market is economically sovereign, not
the State. Monetary reform, when it comes, will be imposed from
the bottom up.
If what
he wrote is true, then we need not waste our time by building
reformist sand castles in the air by designing sophisticated,
top-down monetary reforms that voters do not understand, politicians
do not have time to consider, and central bankers will successfully
thwart for not being in their personal self-interest. The free
market will triumph without the implementation of our well-intentioned
but politically amateurish monetary reform schemes. Mises's theory
of money and credit shows us why the central bankers cannot win,
just as his theory of economic calculation showed us why Marxist
central planners could not win. Unfortunately, it took seven decades
of economic losses and about a hundred million needless deaths
to confirm his theory.
Here is
my advice: do not adopt a theory of money and banking until you
understand the free market. Money and banking are not independent
of the free market. They are extensions of the free market. When
searching for a consistent theory of money, begin with a consistent
theory of the free market. Begin here: Human Action, Chapter
15: "The Market," Part 1, "The Characteristics of the Market Economy."
market economy is the social system of the division of labor under
private ownership of the means of production. Everybody acts on
his own behalf; but everybody's actions aim at the satisfaction
of other people's needs as well as at the satisfaction of his
own. Everybody in acting serves his fellow citizens. Everybody,
on the other hand, is served by his fellow citizens. Everybody
is both a means and an end in himself, an ultimate end for himself
and a means to other people in their endeavors to attain their
own ends.
This system
is steered by the market. The market directs the individual's
activities into those channels in which he best serves the wants
of his fellow men. There is in the operation of the market no
compulsion and coercion. The state, the social apparatus of
coercion and compulsion, does not interfere with the market
and with the citizens' activities directed by the market. It
employs its power to beat people into submission solely for
the prevention of actions destructive to the preservation and
the smooth operation of the market economy. It protects the
individual's life, health, and property against violent or fraudulent
aggression on the part of domestic gangsters and external foes.
Thus the state creates and preserves the environment in which
the market economy can safely operate. The Marxian slogan "anarchic
production" pertinently characterizes this social structure
as an economic system which is not directed by a dictator, a
production tsar who assigns to each a task and compels him to
obey this command. Each man is free; nobody is subject to a
despot. Of his own accord the individual integrates himself
into the cooperative system. The market directs him and reveals
to him in what way he can best promote his own welfare as well
as that of other people. The market is supreme. The market alone
puts the whole social system in order and provides it with sense
and meaning.
The market
is not a place, a thing, or a collective entity. The market
is a process, actuated by the interplay of the actions of the
various individuals cooperating under the division of labor.
The forces determining the — continually changing —
state of the market are the value judgments of these individuals
and their actions as directed by these value judgments. The
state of the market at any instant is the price structure, i.e.,
the totality of the exchange ratios as established by the interaction
of those eager to buy and those eager to sell. There is nothing
inhuman or mystical with regard to the market. The market process
is entirely a resultant of human actions. Every market phenomenon
can be traced back to definite choices of the members of the
market society.
The market
process is the adjustment of the individual actions of the various
members of the market society to the requirements of mutual
cooperation. The market prices tell the producers what to produce,
how to produce, and in what quantity. The market is the focal
point to which the activities of the individuals converge. It
is the center from which the activities of the individuals radiate.
The market
economy must be strictly differentiated from the second thinkable
— although not realizable — system of social cooperation
under the division of labor; the system of social or governmental
ownership of the means of production. This second system is
commonly called socialism, communism, planned economy, or state
capitalism. The market economy or capitalism, as it is usually
called, and the socialist economy preclude one another. There
is no mixture of the two systems possible or thinkable; there
is no such thing as a mixed economy, a system that would be
in part capitalist and in part socialist. Production is directed
by the market or by the decrees of a production tsar or a committee
of production tsars.
If within
a society based on private ownership by the means of production
some of these means are publicly owned and operated — that
is, owned and operated by the government or one of its agencies
— this does not make for a mixed system which would combine
socialism and capitalism. The fact that the state or municipalities
own and operate some plants does not alter the characteristic
features of the market economy. The publicly owned and operated
enterprises are subject to the sovereignty of the market. They
must fit themselves, as buyers of raw materials, equipment,
and labor, and as sellers of goods and services, into the scheme
of the market economy. They are subject to the laws of the market
and thereby depend on the consumers who may or may not patronize
them. They must strive for profits or, at least, to avoid losses.
The government may cover losses of its plants or shops by drawing
on public funds. But this neither eliminates nor mitigates the
supremacy of the market; it merely shifts it to another sector
(pp. 257-58).
on Money: Part 1
on Money: Part 2
- Mises
on Money: Part 3
- Mises
on Money: Part 4
- Mises
on Money: Part 5
subscribe to Gary North's free investment letter (e-mail), click here.
2002 LewRockwell.com


text:
San Antonio Turning to Social Media in Airline Wars
The City of San Antonio wants to attract Virgin America Airlines to San Antonio International Airport, but it is not going about it the usual way, by making appeals to airline executives in meetings and at conventions.
The Airport has begun a social media campaign, and is encouraging San Antonians to send 'Tweets' directly to Virgin CEO Richard Branson, urging him to consider San Antonio in his next expansion round.
"We want to let Richard know that San Antonio is ready for Virgin America," airport spokeswoman Nora Castro said. "We would love to have him here in San Antonio."
The San Francisco based airline, is expanding into Texas. It recently began service to Austin Bergstrom Airport, and will move into Dallas Love Field in October. Branson's Virgin Group is a shareholder in Virgin America.
Castro says residents can join in the social media campaign.
"They can hash tag 'SAT Wants Virgin," she said.
Virgin is known for its gadget friendly seating, with entertainment centers at every seat in First and Budget classes.
"We have wonderful airlines here in San Antonio, and the addition of Virgin Airlines would be great from the city."
No comment from Virgin.

subset: commoncrawl


text:
publication since 1991, Wrangler News is distributed
free every other Saturday to more than 18,000 homes in
the Kyrene Corridor area of South Tempe and West
Chandler, and is supported by local and regional
Friends of the Chandler
Public Library Book Sale
Jan. 6, 2007
Friends of
the Chandler Public Library will hold
its winter used-book sale Jan. 12-13 at
the Sunset branch library at Ray and
Rural roads, with a members-only sale
Thursday, Jan. 11.
The event
also will be held at other Chandler
libraries, with a Sunday, Jan. 14, sale
at the main library only.
proceeds support Chandler library
programming, which includes summer
reading for children, teens and adults.
memberships, available at the sale,
provide book-sale privileges and a 10
percent discount at Pages, the Friends'
gift shop, at the main library in
downtown Chandler. Pages sells gifts,
coffee, homemade fudge and light
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text:
Claire Messud's new novel, The Burning Girl, feels somehow different from anything she's done before...
Condition: Standard
DustJacket: Standard
All Product Details
Since the 1970s, the U.S. economy has been sending more and more of its rewards to fewer and fewer people. Once seen as a global exemplar of egalitarianism and middle-class opportunity, America has become the most unequal of developed nations—a land where corporate leaders earn hundreds of times the pay of average workers, and the only population group growing faster than millionaires is the uninsured. Statistics aside, this quarte-century-long trend has changed the texture of American life in ways that threaten our deepest values.
Drawing on the best and latest research, the contributors explore issues such as the real story the numbers tell about how America has changed; dimensions of inequality (education, health, and opportunity); causes of inequality, looking past the usual suspects of technology, trade, and immigration; the persistence of racial disparities; the erosion of democracy and community; and inequality as a moral and religious problem. Not just a catalog of inequality's ills, the book concludes with a plausible and hopeful policy path—beyond redistribution—to a more just and humane economy.
With contributions by:
David A. Smith is a senior fellow in Business, Society, and Democracy at Demos, a think and action tank in New York City. He previously served as Director of Public Policy at the AFL-CIO and as an aide to Senator Edward M. Kennedy.


text:
Orange (NYSE: ORAN) is a large market cap stock with a market cap of 40498.27. It is in the Telecom Services – Foreign industry and sector Technology, with a current P/E of 14.72, a forward P/E of 12.17 and EPS of 1.03. At a stock price of 15.16 (-0.59%) it has a dividend yield of 6.00%.
EPS growth for the last five years have been -10.30%, more recently this last year it has grown by 105.30%. The next year growth is going to be about 17.22% and more long-term 31.90% after five years. EPS growth quarter over quarter is 45.90%. Sales growth for the past five years have been -2.40% and sales growth quarter over quarter is 2.70%.
For performance, Orange the past week has seen a gain of -1.88%. For the last month performance for Orange is -1.37%. While the last quarter is -10.16% and half year, -11.38%. Finally for the year, performance is 0.57%.
The 52-week high for Orange, is at -14.82%, and for the 52-week low it comes to a value of 9.72%. The 20-day simple moving average is -2.99% and -7.07% for the 200-day simple moving average.
Volatility for the week is at 1.22%, and for the month it is 0.96%. Orange, has a target price of 20.
In terms of debt, long term debt/equity is 0.85, and for total debt/equity Orange has 1.05. The gross margin is 55.50%, while operating margin is *TBA, the profit margin is *TBA. The current ratio is 0.7 and the quick ratio is 0.7.
Insider ownership is at 17.90%, with instituitional ownership at 1.20%. Orange has a payout ratio of *TBA. With the total shares outstanding coming to 2671.39. The shares float is 2133.89, with the float short at 0.01%, with short ratio coming to 0.3.
In terms of returns, the return on assets see Orange, get *TBA, with its returns on investment at 6.30%. Return on equity is *TBA. So will the investors see the target price of 20, reached soon?
Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.


text:
|Home > National News > Article
"I then found out that the project manager on site was having a barbecue on the weekend at his own home and decided to take the cartons of Crown Lager to his house for his friends," he said. "My opinion was formed as some of the workers obviously looked on me as a union activist."
Yesterday Mr Hensley said Mr Brcic had signed a standard letter of engagement with a clause that he would be on probation for four weeks. But on starting work at Nowra he had caused problems with some "amazingly unexpected behaviour".
Mr Brcic had been given the job at the passenger terminal because he had expressed a desire to work in Sydney. Then Mr Hensley had received reports about the cartons of beer.
Mr Hensley had told Mr Ferguson that Mr Brcic was "going down the route of being dismissed" and Mr Ferguson had not been pleased but had made no threats.
Because the company was going through a difficult period and laying off workers, he had decided Mr Brcic should be laid off. Mr Brcic had claimed to have been elected a site union delegate and was being victimised.
When Bovis Lend Lease had agreed to fund Mr Brcic's employment with the union, the union had taken him as an employee. It was decided at board level to give $20,000 to the union, of which $10,000 could be regarded as a contribution to the union picnic fund and the rest for other "donations".
Dr Matt Collins, counsel assisting the inquiry, put to Mr Hensley that the payment was not about the picnic fund at all. Mr Hensley replied: "It was a settlement of that dispute, yes."
He agreed that as part of the settlement, Bovis Lend Lease would nominally reinstate Mr Brcic, and then let him resign. If the union saw it as a "win", it was entitled to.
The inquiry resumes today.
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USGS Western Ecological Research Center
In 2003, Southern California experienced several large fires that burned thousands of hectares of wildlife habitats and conserved lands. A USGS study published in the Journal of Herpetology reports that after the fires, burned chaparral and coastal sage scrub (CSS) plots lost herpetological diversity and displayed a significant shift in overall community structure.
To examine the effects of the 2003 Cedar and Otay Fires, USGS researchers sampled 55 plots over four locations in San Diego County: Elliott Chaparral Reserve, Little Cedar Ridge, Rancho Jamul Ecological Reserve and Santa Ysabel Open Space Preserve. The herpetofauna and vegetative communities at all locations had been surveyed before the fires.
At burned plots, shrub and tree cover had decreased by 53% in chaparral and 75% in CSS habitats, when averaged across the second and third post-fire years. Additionally, post-fire herpetofauna communities in burned plots became more similar to communities in unburned grasslands. In contrast, in grassland and woodland/riparian plots where shrub and tree cover were not significantly affected by fires, no differences were found in herpetofauna communities.
While herpetofauna can seek shelter during fires, subsequent losses in cover and understory and increases in open ground can continue to impact organisms. Species dependent on moist leaf litter, such as salamanders, remained undetected during two years of post-fire sampling in chaparral plots. In contrast, habitat generalists like the western fence lizard remained the most abudant reptile in both chaparral and CSS plots.
The evidence suggests that in Southern California, a continued unnatural fire regime and subsequent landscape changes could result in a simplification of reptile and amphibian communities.
Amphibians dependent on vegetative cover, such as this Monterey salamander (Ensatina eschscholtzii), may be lost after large, repeated wildfires as landscapes shift to more open habitats. Image credit: Chris Brown/USGS.
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Pride of America - Hawaii: Pride of America Cruise Review by Mstaczek97
Overall Member Rating
Pride of America - Hawaii
Destination: Hawaii
Embarkation: Honolulu
My DH and I went on this cruise for our 10th anniversary. This was our 4th cruise together, 2 on Carnival and 2 on NCL. We got married in Hawaii...so we were looking forward to going back and thought the cruise would be a good way to do this. And............we were right!!! We had a great cruise and vacation! We had a few minor glitches (minor electrical interruption on Monday-for about 20 mins) otherwise everything from air/cruise package to stateroom and car rental went relatively smooth....
Air/Cruise: We traveled on the day of the cruise (we had no choice since we had limited vacation days). Fortunately we had no weather issues and flew from CT/Chicago/Honolulu without any problems. Tip: Make sure you call your airlines as soon as you get your educes to get your seat assignments.
Embarkation: Great....got off the plane got on the bus for the NCL transfer and at the ship ½ hour after landing. Nobody in More the latitudes lines and was on the ship within 5 mins. We were able to go right to our stateroom.
Stateroom: We had an inside stateroom (booked a gty) and ended up on the 10th floor. Location great...one floor below the Aloha Cafe. I was nervous about 2 things...being in an inside stateroom and being under the Aloha Cafe. Both were fine....room was clean and I didn't feel claustrophobic at all, despite the room was smaller then previous rooms. Our room steward was great (Erin) everything was in order, even had the famous towel animals most nights! We really didn't think we heard a lot of extra noise from the Aloha cafe.
Romance Package: We were very pleased with this package. Well worth the $79.00.
Overall ship: Pride of America is very nice, large and clean. EVERYBODY was very friendly and helpful. ALL staff said hi and how you doing! We went to the latitudes reception (never received an invitation but a quick call to reception fixed that!). Pool area appeared ok (never used pool...never had time). All bars and restaurants nicely decorated.
Restaurants: Overall we had a good experience. My DH and I don't totally agree on freestyle....he likes the standard seating...thinks you get better service because your waiter would get to know you. I like being able to eat when and where I want to. We had very slow service in the liberty. We also had to wait about 30 mins to get a table. We did have wonderful service in Skyline and ended up eating there 3 nights and requested the same servers (Julie and Jess) each time without a problem. Food was good and plentiful! We also had dinner in Jefferson Bistro and dinner and service was excellent. This dinner was part of our Romance package. Aloha buffet was very convenient for breakfast, ate outside mostly. They served the same food as the dinning rooms but we both felt the food in the dinning room was fresher. We also ate a Cadillac diner...food was good and were able to eat out side. Nice for a small snack/meal.
Disembarkation: Great....did the Easy Fly....well worth the 20 bucks! Walked off the ship around 8:00 without any lines or confusion!
Part 2....Hawaii...The Islands
We rented cars via Thrifty. We got great rates and signed up for Blue Chip program. Overall no major problems....but a few minor inconvenient problems. Mostly everybody get cars thru Thrifty so lines can be long. Biggest hassle was in Hilo....Line to wait for the shuttle was disorganized. It seems the blue chip didn't help here as regular customers got off first then blue chip members got driven to the airport itself. We had to wait about 15 mins. They didn't have any cars available. Other ports were no problems even got upgraded to convertible in Maui!! Tip: make sure you go back to the Aloha marketplace to pay for a parking place in Kauai. Your shuttle driver will point it out to you.
The Islands:
We had been there before so we wanted to see some different things except for Kauai.
Hilo: We started off viewing the Rainbow Falls (didn't see any rainbows) and then drove to Akaka Falls. Both falls pretty with Akaka making more of a visual impact. There is quite a hike on paved paths but worth the time. We then drove to Mauna Loa Macadamia nut factory. The store is open but the factory is closed on Sundays. Tip: buy your nuts and all souvenirs at Wal-Mart's...much cheaper. We did buy 2 bags of "seconds" chocolate nuts for $5.00 at the nut factory. We then proceeded to my favorite part of the Island (this trip). We went to the Ahalanui Warm Pond in the Puna district. See quote from Kapoho2's posting on the boards "The Ahalanui Warm Pond is now a beach park run by the county. There are lifeguards on duty, picnic tables and porta-potties. There are also stone steps into the pond with railings....so this a great swimming place for those needing a little assistance getting in and out of the water. This pond is large and is usually a comfortable 91 degrees. Only if the waves are big on the east side and are breaking over the wall to the pond does the temperature vary. It is quite an interesting experience....which we enjoy almost daily!! This was neat and very enjoyable, especially with the waves crashing over the walls. On the way back to the ship we stopped at Walmarts for some souvenir shopping.
Maui: We started our day one off with a ride on Road to Hana. We did do this before but decided to do again and made some stops we didn't last time. It is a great ride for a convertible. We followed the AAA guide book and it served us well. We drove all the way to the seven pools but turned around. You couldn't go swimming due to high water levels. So we turn around instead of paying the 10.00 fee. We did stop at Wai'anapanapa State Park...nice park with arches, lava tubes and blow holes. Well worth the visit. We took our time on the road to Hana and enjoyed it the second time around! Overnight parking is a little dicey...no spots left in the one area by the ship. We asked the guards and they told us we were ok to park on the right side of the road. It worked out fine....but we did worry! On day 2 to headed towards Lahaina...we tried the Maui Tropical Plantation but the 1st tour didn't started until 10:00 and we didn't want to wait for an hour. We stopped in Lahaina...went to the Jodo Mission and stopped by the banyon tree. We then headed out of Lahaina and ended up doing route 30 and the Kahekili highway which brought us back to the port. This was very pretty views but I thought more nerve-wracking then the Hana road. Road VERY narrow at times with just as many curves. Again...great road to do in a convertible. After we survived that road we headed to the Iao Needle.
Kona: We headed out to South Point, which is the southern most point in the US. It was 50 mile ride but the scenery is very unique with the lava flows. The road to south point was very isolated. Very windy with some locals fishing and a few tourist. It was a good day but would not recommend it if this was your 1st time to Kona. The town of Kona is nice. We considered just staying in town but glad we made the trip out to south point instead. Tip: You need to take a cab to the thrifty rental agency or make sure you rent your car from the Hotel. We did not know this was an option so we had to take a cab. We were able to split the cab fare (24.00) with another couple. Thrifty did let us drop the car off at the hotel...waiving the return fee.
Kauai: This was our 1st time. On day one we drove to the North Shore. Beaches and scenery very nice. We went swimming at Ke'e Beach...literally at the end of the road. Parking can be tight you may have to walk a bit. We viewed the wet and dry caves. This was a pretty beach with great views of the start of Napali Coastline. We left there and made our way to Poipu beach. This beach was rated a top 10 by travel channel....it was nice but didn't think it was that great of a beach. It is very rocky. Although it did have a great changing area and showers. Parking was easy at the pre-paid lot. Day 2: consisted of the going to Waimea Canyon. Nice pretty laid back ride for day 2. Tip: Make sure you go all the way to end of the road...great views of the blue,blue ocean! A bit of a bummer: We left late about 2 hours because they were repairing the previous electrical problems. So................we didn't get to Napali coast until sunset. Got to see some of it and I'm sure it would have been beautiful. BUT we did get see a beautiful sunset!
Oahu: Our return flight was at 4:15pm so we decided to rent a car. Again...easy disembarkation off the ship by 8:00. We drove to the North Shore...made few stops along the way. No big waves as it is wrong time of year for that. We stopped by Dole Plantation...wasn't impressed so we continued onto the Aloha Stadium Swap Meet. Not a bad deal for 2 bucks. Huge swap meet with lots souvenirs but multiple tents with the same things. We did get 8 tee shirts for $20.00. It was getting close to 2:00 so we dropped off the car and headed to the airport!
Final Impressions: We were very pleased with this trip. As many posters have said...keep an open mind, be kind and courteous and you will have a great trip! I hope this has been helpful and feel free to contact me if I can be of any help!
A lot of posters recommend the Revealed Books on HI...but we had just as much luck using the AAA guide book. So if you don't want the expense of buying the books and carrying 3-4 books go for the AAA guide book...free if you are a member.
Aloha! Less
Published 08/29/07
Cabin review: IB10167 InsideInside (IB) Reviews >>
Read Cruise Critic's Pride of America Review >>
Food not good but a nice time ...
First time with NCL
Awesome way to get to the isla...
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Need more advice? Ask the community a question.
I currently have a Pioneer Elite VSX-94THX receiver and the OPPO B-83 blu-ray player. My setting is 1080P/24 and the picture is great. Question: Which is being used when I play the OPPO - the Anchor Bay processor (in the OPPO) or the Faroudja (in the Pioneer)? I read that when the setting is 1080P/24 - the Faroudja doesn't kick in. I hope not.


text:
Location: Apple Resource CenterSecond floor
Hours: Monday - Friday8:30 a.m. to 5 p.m.
Phone Number: 301-696-3583
The Catherine Filene Shouse Center for Career Development and Experiential Education regularly hosts information sessions about programs available to Hood students; presentations by businesses and organizations seeking interns, volunteers and employees; and career preparation tutorials. View the upcoming events.
Now more than ever, employers are highly selective about whom they hire. Virtually all hiring managers prefer to hire graduates who bring real–world experience to their organization. In very real terms, a degree alone may just not be enough to land your dream job. Internships do more than just look good on your resume. You can test–drive the career path that interests you most.
Volunteering is a win-win for everyone: it makes the world a better place; you receive on-the-job training in the "real world"; it strengthens your résumé; it enhances your major field of study; you make professional business contacts and references for future jobs; you gain leadership experience; you could discover potential new career paths; you contribute to a cause that you care about; you have a way to put your religious faith, beliefs and ethics into action.
Our alumni do remarkable things and have incredible experiences in their professional lives. Some entered the work force directly after graduation, others earn professional, master's and doctoral degrees before beginning their careers.
The FBI's Honors Internship Program is a 10-week, paid internship for college undergraduate and graduate students from a wide range of educational backgrounds. Students will have the opportunity to work side-by-side with FBI employees in Washington, D.C. or in field offices around the country.


text:
LG KE970 Shine review | Conclusion
Our Rating!
Review rating
LG Shine Conclusion
T he LG KE970 Shine is a mobile phone that will appeal not only to the trendy man or woman but also to the gadget freak. It has an easy operable MP3 player and operating the menu functions is just as quick and easy. Of course it can do with improvement on some points, for example an auto flash. It is very inconvenient having to turn on and off the flash every time you want to use it or stop using it. The monitor is excellent, although rather difficult to use in bright sunlight, which I more or less expected when I saw this phone for the first time. All in all LG have put a remarkable high quality telephone in the market, with solid exterior and a trendy appearance. The LG Shine is easy to operate which will be to the benefit of the novices among us who are just starting to use a mobile phone. In short the LG Shine is a real must!


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The past financial year may have marked the first leg of recovery from the global crisis but a number of companies continue to struggle to shake off the lingering impact of the sharp downturn.
While the S&P/ASX 200 Index delivered a total return of 15.5 per cent in 2009-10, more than 40 per cent of the top 200 stocks generated returns that were at least 3.5 per cent below this benchmark, while 24 per cent posted a loss.
The question worth asking is whether there is any hope the ugliest ducklings in the group will turn into swans in the next 12 months.
The biggest losers between July 1 last year and June 30 this year include power and port investment company
The theory behind buying market cast-offs does hold water, Wilson HTM Investment Group quantitative analyst, Damien Klassen says.
"Timing is everything. If you are buying a cyclical stock, then it makes sense to buy it when it is down.
"But I am very much against buying a stock by just using quantitative screen, although quantitative screens can spit out some interesting ideas worth considering."
Investors will need to understand the key issues that have been weighing on these laggards and make a judgement on whether these issues will be likely to be overcome in the next year or so.
This strategy has proved popular in the US where investors bet on the so called dogs of the Dow in the belief that things move in cycles – and what goes down must eventually go up. However, it would be safer for investors to fish for laggards among the top 50 stocks instead, Klassen says.
Looking at the worst performers in the S&P/ASX 200 yields clues as to why.
But investors will be hard-pressed to find a broker daring enough to venture a "buy" recommendation on Elders, iSOFT, Sigma and a host of other underperformers as these companies do not seem to be anywhere close to resolving their operational or debt issues.
Head of asset management for Equity Trustees Shaun Manuell warns laggards in the top 200 benchmark are not "blue-chip" enough for value investors to load up on as there is a chance that a number may actually fall over.
"It's very rare to see a Dow stock go under. If a company stuffs up on the Dow, they are probably going to recover but if a company stuffs up on the S&P/ASX 200, it could be terminal," Manuell says.
The Dow holds 30 famous global companies, such as Johnson & Johnson, McDonald's, Walt Disney and International Business Machines Corporation (IBM).
From this perspective, size does matter, and looking at the expected total return of the 10 worst performing stocks compared with the 10 best performers on the S&P/ASX 50 Index seems to support the view that buying stragglers could put investors ahead.
The 10 ugliest ducklings are tipped to generate an average return of about16 per cent compared with 13 per cent for the 10 leaders.
The same is not necessarily true when looking at the best and worst performers on the top 200 index after adjusting for the increased volatility and outliers – stocks with expected returns that are well outside the standard statistical range.
But blindly buying stocks from any index without understanding the companies is not a good idea.
Klassen says investors can separate potential swans from ugly ducklings by using an analysis tool taught by most business schools called Poter's Five Forces.
It can help investors quickly evaluate how attractive the industry is for the company in question.
The first force is barriers to entry. This is about how easily a rival can enter the market.
The second is supplier power. If there is a concentration of suppliers or if suppliers are more valuable to the company than the other way around, it will create a potential threat to the business.
The third is buyer power. The same rules about suppliers apply. If the company has more power than buyers, it is a price setter. The other way around, it is a price taker.
Fourth are rivals. Ideally, investors will want to buy companies with market dominance in their respective fields as size often gives a company an edge.
Last are substitutes. It isn't only direct competitors that are a threat. If consumers can easily buy an alternative product or service, that will ultimately affect demand.
With these factors in mind, a number of black sheep from the S&P/ASX 50 Index have caught the eye of Klassen.
One of Australia's premier investment banks,
"Macquarie is an excellent poster child for the strategy," Klassen says. "Here's a company people look upon as a high quality organisation near the top of their peer group. There's a number of factors that have driven the share price down and forced them to change the direction of their business.
"You have to decide now if this will pay off – and you have to say the odds are good."
Macquarie used to have a strong focus on securitising a portfolio of assets in a special purpose vehicle and floating this vehicle on the exchange while charging a fee for managing the vehicle.
But the global credit crisis has brought such strategies to a crashing halt and Macquarie has turned its focus back to more conventional investment banking activities like mergers and acquisitions, equities and trading.
"If I was buying a group of laggards of similar quality, across different industries, I would expect on average they would recover and generate a nice net positive return," says Klassen.
A worthy addition to the group could be
What's worse is there is no turnaround in sight as both the US and UK central banks appear determined to buy up their own government debt to help reflate their economies. This in turn has kept downward pressure on yields.
But rising interest rates is not a question of "if" but "when" and when the global economic recovery returns to a firmer footing, it is likely to create a significant tailwind for company earnings.
What's more, the risks appear to be priced in, with the stock trading on an attractive 12-month forward adjusted price-earnings of about 11 times compared with its rivals that are on an average multiple of over 14 times.
Most brokers covering the stock believe it is worth buying as QBE has the potential to generate a 12-month total return of about 22 per cent.
Another industry leader worth considering is domestic stock exchange operator
While conditions have become tougher for ASX, it is still the 900 pound gorilla in the sector and its market dominance will be difficult to erode short of some transformational change to the industry, such as those brought on by new technology or government intervention.
That is not a likely outcome and there is still space for the stock to be re-rated, particularly as trading volumes recover. Another industry leader that has been snubbed by investors is
The pallet and logistics company has been losing market share in the US at a time when its operations in America and the UK are feeling the impact of the economic downturn.
This caused the stock to post a loss of 4 per cent in 2009-10 before investors caught on to the fact that these fears could be overblown.
While some would argue that Brambles is only at the start of its earnings upswing that would be likely to take a few years to play out, the near-term upside is probably captured in the current share price.
Investors who buy the stock now may need to be a little more patient.
The bad boy of the index that has been in the spotlight of late is telecommunications giant
The stock delivered a total return of 5.8 per cent in 2009-10, thanks solely to its high dividend, but has tumbled 11 per cent since to a record low of $2.66 last Wednesday.
It is arguably one of the biggest contrarian trades among the top 50 stocks as most experts would agree that it is cheap, but not many would encourage investors to buy in at these levels.
The problem is a lack of earnings transparency while its $11 billion deal with the national broadband network (NBN) hangs in the balance.
There are also worries that its dividends will not be sustainable in the medium term as the playing field has changed in the wake of the NBN. The new frontier for telcos is probably mobile data, and beating its smaller but more nimble competitors will be a challenge.
But supporters point to the fact that Telstra is also the leader in this category; and once a player takes pole position in a particular market, it isn't easy to unseat.
The catalyst for the stock is likely to be the NBN deal being finalised but investors will also be looking for clues as to how the company will grow when management holds its investor briefing today.
The risks could be well balanced with the reward at current levels. Brokers estimate the stock is likely to produce a total 12-month return of close to 30 per cent.
Other ugly ducklings tipped to turn in a 30 per cent plus total return include steel products maker
BlueScope was the second worst performer in the last financial year with a total loss of 15 per cent as it was squeezed by high iron ore and coking coal prices and an uncertain demand outlook. But it managed to post earnings for 2009-10 ahead of market expectations, thanks to a strong showing from its industrial products division and its Asian and Australian coated products businesses.
Wilson HTM believes iron ore prices will fall and steel prices will rebound, and it picks BlueScope as the best positioned steel stock to benefit from these events.
The broker also suspects that BlueScope will make a significant upstream acquisition in the near term to help bolster its growth.
On the other hand, Santos is not considered quite of the same quality as the rest as it isn't an industry leader in the oil and gas sector, which is dominated by larger international players.
It is also banking heavily on liquefied natural gas and gas prices have been under pressure in the past several months as the market is thought to be well supplied.
Sentiment was further hurt by the sale of a 15 per cent stake in Santos's Gladstone LNG project for $650 million – 20 per cent below Citigroup's expectations.
But the broker notes that it is not unusual for customers to pay a discount to valuation for such deals. For instance, Woodside sold a 10 per cent stake in its Pluto-1 project at a 33 per cent discount to Citigroup's valuation.
Santos has also managed to issue bonds recently and this will help alleviate concerns the company will need to undertake an equity raising to help fund its growth projects.
But Santos could still need another $2 billion and investors might be reluctant to buy the stock until there is more certainty, even though most brokers, including Citigroup, think the stock is cheap.
The stock lost 10.8 per cent in the previous financial year due to tough local pathology conditions after the federal government cut reimbursements by about 5 per cent and service providers found it difficult to pass on the cost to patients.
Net profit fell 7 per cent to $293.2 million, largely in line with consensus. Management provided 2010-11 guidance of 5 per cent to 15 per cent net profit growth in constant currency terms, excluding acquisitions.
Even if Sonic posted earnings at the low end of the range, some brokers believe the stock is still cheap as it puts it on a one-year forward P/E ratio of around 13 times – a 38 per cent discount to its five-year historical average.
That is attractive, considering Sonic could enjoy low double-digit earnings growth in the next three years.
The Australian Financial Review


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Court Issues Rulings On Police "Lies"
ALBANY, N.Y. (AP) _ New York's highest court says police can go too far lying to suspects, making confessions inadmissible as evidence when the lies told during interrogations become ``patently coercive.''
The Court of Appeals, ruling unanimously, has thrown out the murder conviction of 31-year-old Adrian Thomas and ordered a new trial without his purported confession.
The Troy man's infant son died with a head injury and infection in 2008.
Chief Judge Jonathan Lippman writes that investigators improperly told Thomas they'd pick up his wife if he didn't confess to injuring his son and that his already brain dead child would die if he didn't explain how the child hit his head. They also told him 67 times it was an accident, 14 times that he wouldn't be arrested and eight times that he'd be going home.


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It will be good when you are accustomed to it.
Studio9Resources saidMe too.
Link is not opening up for me…for some reason.
CodingJack said
I'm not crazy about how Microsoft and Apple seem to be merging mobile and desktop experiences. I know it makes sense because it's easier for the average user to learn once, but as a heavy desktop user I want a start button damn it!
Seems the start button is very important for us, I am worrying about how can I adapt to use it without a start button.
I don't care, the goole+ is more attractive to me.
Seems a little cute.
Wow, it is really a lifelike design.


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|Re: [PATH] IPv6 IPsec support
|"David S. Miller" <davem@xxxxxxxxxx>
|Wed, 05 Mar 2003 20:43:48 -0800 (PST)
|kuznet@xxxxxxxxxxxxx, linux-kernel@xxxxxxxxxxxxxxx, netdev@xxxxxxxxxxx, usagi-core@xxxxxxxxxxxxxx
|<20030305233025.784feb00.kazunori@xxxxxxxxxxxx> <20030305.152530.70806720.davem@xxxxxxxxxx> <20030306093219.1a702868.kazunori@xxxxxxxxxxxx>
From: Kazunori Miyazawa <kazunori@xxxxxxxxxxxx> Date: Thu, 6 Mar 2003 09:32:19 +0900 - Extension Header Processing on inbound: As a result of IPv6 IPsec support, Extension Header processing is devided into ipv6_parse_exthdrs and ipproto->handler. I think it is better to merge other Extension Header handling into ipproto->handler. Ok. - Fragmentation support on outbound: We should change ipv6_build_xmit like ip_append_data style to support fragmentation with IPsec. Please work together with Alexey on this. There are known major problems on ipv4 side, and it must be resolved before ipv6 side may be done. For example, right now a non-TCP packet can do the following. If it is just slightly smaller than MTU, and when encapsulated in ESP/AH it becomes larger than MTU, we will not fragment it and too-large frame will be sent to device. In my last round of talks with Alexey I believe we were very close to a possible solution to this problem. The idea was to have a "local dont-fragment" flag, and at the very last stage of IP output we check this and either 1) clear DF and fragment or 2) drop packet and send ICMP message back. Alexey, what is the current state? - Removing duplicate codes, clean up and improveing performance. - Considering relation of IPv6 IPsec and Mobile IPv6. This is future stuff. Ok.
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WBKR Battle for the Big O Finalist #12: Daniel Carroll & The Valentears [Video]
The Battle for the Big O finale is coming up 7pm, Saturday, July 26th at Diamond Lake's Good Time Theatre and we really believe we have assembled our strongest Top 12 in the five year history of our annual talent search. And rounding out the line-up for the final will be The Valentears. The group's frontman, Daniel Carroll, showed up at our Show Me's of Owensboro audition and topped 19 other acts to earn a spot in the finale. Check out the version of "Strawberry Wine" that got him there. This is pretty cool!


text: 13 Signs That You Need More Free Time Facebook Pinterest Twitter Print Mail Save Left Arrow Right Arrow Photo by Brand New Images/Getty Images Always racing from one task to the next but accomplishing very little? Follow these simple tips to make your busy schedule more manageable. Start Right Arrow Start


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Albuquerque, N.M. • A powerful storm system that has caused hundreds of accidents across the Western U.S. has marched eastward with predictions of widespread snow, freezing temperatures and gusty winds.
The fierce weather has caused at least eight deaths and prompted advisories Saturday afternoon in New Mexico and Texas.
As thick, gray clouds covered the Southwest, forecasters said the storm would sweep across the South and toward the Atlantic coast next week, causing problems for holiday travelers.
Joe Harris, a meteorologist with the National Weather Service, said the "Nordic outbreak" will "produce a mixed bag of wily weather that will end up impacting much of the nation."


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If you've been looking for a good reason to polish up
the family history stories you've begun working on, here you go:
ISFHWE's 2014 writing competition opens Oct. 1. Details coming
soon on ISFHWE's website.
Everyone who registers for the live Online
Immigration Records webinar will receive a PDf of the
presentation slides, plus access to view the recorded webinar as
often as desired.
The Online Immigration Records webinar is Sept. 26 at 7 p.m. ET.
Good news! You can save $10 on your webinar registration by signing
up before Sept. 19.
When you go back 40 generations,
and you have roughly a trillion ancestors—more than the number of
people who existed at the time Charlemagne lived. (Virtually all
family trees have consanguineous marriages, so the same person will appear
in multiple places in a tree.)
NationalGeographic.com article explains how there comes a
point in history when "all individuals who have any
descendants among the present-day individuals" (that's us) "are
actually ancestors of all present-day individuals."
"all Europeans alive today have among their ancestors the same man
or woman who lived around 1400 ... About a thousand years ago, a
peculiar situation prevailed: 20 percent of the adult Europeans
alive in 1000 would turn out to be the ancestors of no one living
today (that is, they had no children or all their descendants
eventually died childless); each of the remaining 80 percent would
turn out to be a direct ancestor of every European living today."
I don't have Story View yet or I'd show you what it looks like,
but you
can see more Story View details and screenshots on the
Genea-Musings blog (Randy has had access to Story View for
months now).
Your search results also will start with a list of
records you've already attached to the person you're researching,
so you can see what you have and what you need.


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business knowledge Archives
SimonCRE, One Stop Voice Relocate to Scottsdale
SimonCRE and One Stop Voice, headed by Scottsdale entrepreneur Joshua Simon, moved into a larger office space this month at a location at Scottsdale and Chaparral roads. The new office space more than doubles the square footage giving some much needed breathing room for the expanding businesses. The purposeful timing of the move capitalizes on market… Read More →
Tucson Law Firm Launches Phoenix Office at Arcadia Gateway Center
Zanes Law, a 10-year highly successful firm in Southern Arizona, selected the 90,000-square-foot Arcadia Gateway Center, 4222 E. Thomas Road in Phoenix, for its first office in the Valley. Serving personal injury clients, the firm is led by Doug Zanes, an Arizona injury lawyer, and Claudia Zanes, the CEO. "We chose a location that was… Read More →
W. P. Carey School & SRP Host Small Business Leadership Academy
Small businesses play a key role in our economic recovery, creating jobs to help get our community back on track. The W. P. Carey School of Business at Arizona State University is offering a program to help small business owners and executives learn how to improve efficiency, streamline operations and raise profits. The fifth annual… Read More →
Seven Tips For Franchise Owners: Leveraging Your Name
Running a franchise is easy if all franchise owners manage under a common brand, a Unique Selling Proposition (USP) and everything else the contract commits them to follow. So how can individual franchise owners become a team and bring their individual businesses ahead by one name and one USP? All owners and managers are driven… Read More →
Girlfriend University Isn't Just For The Ladies
Don't let the rhinestones, quotes by Madonna, crystal chandeliers and fuchsia touches fool you; Girlfriend University is serious business. Founders Renee Dee, former publisher of Arizona Foothills Magazine, and Jodi Low, a former sales and marketing professional, combined their corporate and entrepreneurial backgrounds to create Girlfriend University as a way for women to grow personally… Read More →
Far-reaching Initiatives Are Driving The AZ Tech Council
When it comes to new initiatives to promote and develop Arizona's high technology industry, there is no telling how far the Arizona Technology Council will go. Would you believe … China? A 10-day, fact-finding journey — led by Arizona Technology Council President and CEO Steven Zylstra — to one of the oldest nations on the… Read More →


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Pentagon Papers dramatizes the actual secret history of America's involvement in Vietnam. J-Powers is the writer/director and has his young cast deliver a number of monologs sometimes spiced with a flavor of a period or character they are interpreting.
The production aims to inspire a new generation of Americans to demand honesty and transparency from leaders, while baby boomers and beyond can reflect on the days they lived through.
The monologs are spiced with '60s music, simple changes in props, wardrobe, and blocking with periods of time, or an event projected on a back screen. This makes for creative variety since the dialog is delivered in narrative style.
The cast features: Jeffrey Ashkin, Serena Dolinsky, Mark Jacobson, Stephen Juhl, Dave Kirkpatrick, Amanda Martindale, and Brian Sounalath.
J-Powers does a remarkable amount of research and meets the challenge of placing this information in an interesting format that serves to remind that "we don't go to war; we live in a constant state of being 'at war.'" J-Powers (aka John Powers) is well known for his works adapting and dramatizing historical events. It is interesting to note that in history we know what we are told in the press, but that is not necessarily the whole story or the truth, and Powers dedicates himself to the truth.
Pentagon Papers plays Sundays at 3:30 p.m. through March 23 at the Open Space at Santa Monica Playhouse located at 1211 4th St. in Santa Monica. Convenient parking is across the street; regular admission is $19.50. Students, teachers, seniors, and members of the military are $17. Group rates are available. Buy tickets online at http://SantaMonicaPlayhouse.com or call the box office (310) 394-9779 ext. 1.


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Dancers use their bodies to express emotions, unlike opera singers, who use their voices, and Punchin' Jack, who only uses his fists. Get an eyeful of art with this GrouponLive deal.
The Deal
- Two tickets to Shanghai Ballet's The Butterfly Lovers
- When: Sunday, October 20 at 4 p.m.
- Where: Music Hall Center
- Door time: doors open 1 hour before showtime; house opens 30 minutes before showtime.
- Ticket values include all fees.

Seating Options
- $39 for center rear mezzanine (up to a $129.70 value)
- $49 for main floor/front center mezzanine (up to a $129.70 value)
- Click here to view the seating chart.

Shanghai Ballet's The Butterfly Lovers
Sometimes called "the Chinese Romeo and Juliet," the story of the The Butterfly Lovers has been told for centuries. Zhu is disguised as a boy when she first meets Liang, and a fast friendship forms between the two. The smitten Zhu eventually reveals her true identity, and finds her affections returned—but an arranged marriage and an angry family threaten to keep the lovers apart.

The Shanghai Ballet captures both the passion of young love and the tranquility of nature in their performance of the classic tale. Choreographer Xin Lili and the company's dancers enact the tragic romance with only the music, their bodies, and appropriate footwear.
Detroit Music Hall Center for the Performing Arts
Built in 1928, Detroit Music Hall Center for the Performing Arts dazzles patrons with an ornate art-deco façade and lush Spanish Renaissance interior. Elegant columns, glittering chandeliers, and vibrant geometric patterns create a palatial atmosphere in the lobby. The auditorium's intimately arranged velvet seats leave every viewer within 70 feet of the stage, eliminating the need for binoculars or drawn-out games of telephone describing the onstage action.


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Your J.P. Morgan Securities Financial Advisor will take the time to understand your goals and customize a lending solution that meets your borrowing and liquidity needs.
Home Financing
Financing a new residence or a second home often depends on many factors and, sometimes, unique circumstances. Working with our partners on the J.P. Morgan mortgage team, your Financial Advisor will take the time to understand your particular situation and customize a suitable lending solution.
J.P. Morgan specializes in jumbo and non-conforming residential mortgages offering a variety of flexible lending arrangements, such as:
- Mortgages for trusts, LLCs, partnerships and other non-traditional purchasing arrangements
- Extended rate locks available and a one-time ability to "float-down", or reduce, your rate if rates drop by 0.25% any time between application and closing1
Access Liquidity Through Your Investment Portfolio
A line of credit established against your J.P. Morgan Securities investment portfolio2 can help you:
- Cover near-term expenditures or major purchases
- Meet tax obligations
- Address cash-flow needs
- Meet longer-term goals, such as charitable giving
Tailored Credit Solutions
Allow us to help you structure a credit solution that fits your unique circumstances and personal wealth-management objectives. Our lending specialists can analyze complex balance sheets and cash flow statements and develop customized financing arrangements.
1 A rate float-down adjustment cannot be made within three days of closing. The float-down is permitted only when the current standard rate for the same product is below the locked rate by 0.25%. The locked rate will be reduced to the current standard rate for the same product with a maximum decrease of 0.375% from the locked rate. If the current standard rate is below the locked rate by 0.75% or more, then there is no limit on the rate decrease. Please note that your original rate lock expiration date will not change if a float-down adjustment is made.
2 Borrowing with securities as collateral involves certain risks, including the possibility that you may need to deposit additional securities and/or cash in the account to meet a maintenance call and that securities in the account may be sold to meet the maintenance call. Proper management of your account and a thorough understanding of the conditions that may affect your investments will assist you in effectively using the margin lending program.
Bank products and services offered by JPMorgan Chase Bank, N.A. Member FDIC.
Securities offered by J.P. Morgan Securities LLC, member FINRA and SIPC.
J.P. Morgan Lines of Credit may not be used to purchase, trade or carry securities or to repay debt used to purchase, trade or carry securities.