Author Archive for Steven Waechter

Mr. Waechter is an attorney and a recent graduate of Drake University.

Predictions For The Next Four Years (Part 2 of 2)

(This is Part 2 of a 2 Part Series– To Start With Part 1 Click Here)

Dollar Under Strain

There are so many dollars floating around out there, and so little American production for those dollars to chase, eventually foreign central banks will get wise and look to divest. At some point, that trickle could turn into a flood, and result in a dollar run. If that happens, life in America will be rather bleak for a time.

Police State

Obama has consistently lied about his civil liberties stances; campaigning against the Patriot Act and then supporting the renewal, and promising to veto the National Defense Authorization Act, and then signing it. There is no reason to believe he will change course now.

A …


Waechter’s Final Pre-Election Weigh In: No Matter How You Vote, the Economy Will Not Improve

I cast my ballot early. I didn’t vote third-party and therefore my vote isn’t being wasted. It also isn’t going to matter.

Since 1990, the United States has run aggregate trade deficits above $8 trillion. This is funny, because in 1990 the M2 metric of currency supply was only $3 trillion. There should be nothing but dust coming out of the ATM machines. We have purchased entire merchant-fleets full of foreign goods, and paid for it by quite literally printing money.

Foreign countries, being more blatant about their currency devaluation policies, have been willing to go along with this arrangement. The result is this dynamic: The US prints dollars to buy goods from China, and the Chinese central bank prints yuan to buy the dollars. …


Completely Pointless and Utterly Absurd

First, some chemistry; iodine turns black when exposed to starch. So, a lighter ink which contains iodine will turn black when it comes into contact with starch, which is included in the manufacturing process of standard copy paper. When the ink is used on paper that doesn’t contain starch (such as most paper made with cotton fiber instead of wood pulp) the ink will maintain a sort of brownish-yellow color.

If you pay for gasoline with a fifty dollar bill, chances are the cashier will make a mark on it with a counterfeit detector pen. American currency, made of cotton fiber and not including starch, will leave the ink that lighter color. Counterfeit currency printed on regular paper will make the ink turn black.

Interestingly …


Time to End the Iowa Finance Authority

In 1975, Iowa’s elected so-and-so’s felt inclined to establish the Iowa Finance Authority, giving it the mission of assisting the people of Iowa in acquiring affordable housing.  I guess Iowans tended to live in mud shacks prior to 1975, but no matter, the government is here to help.

Except, it doesn’t help. The Iowa Finance Authority’s own website (http://www.iowafinanceauthority.gov/) tells the tale, and affordability is not the goal of our state-level state corporatists. According to the talking points, IFA helps low-income Iowans, the disabled, and the otherwise strained in the task of obtaining affordable housing, which is simply not true. Nothing the IFA does is aimed at helping citizens afford anything, all they do is encourage easy credit.

Getting easy credit is not …


Tom Harkin Dissembles on Higher Education

Our esteemed Senator Harkin has been holding some hearings on for-profit colleges back in D.C., and now he has penned an editorial for the Des Moines Register. In full disclosure, I dislike Tom Harkin. Intensely. Then again, back in 2008, Charles Grassley voted for the TARP bailout, and now I don’t like him either.

But, back to the junior Senator from Iowa; Senator Harkin penned an opinion-editorial decrying the high tuition, poor student outcome, and massive debt of the students of for-profit colleges. If somebody would be so kind as to pass this on to the right honorable gentleman, would Senator Harkin please explain why his criticisms of the for-profit colleges are not extended to all colleges? Why does the servant of the people limit …


Iowa’s Expensive Wind Addiction

I recently heard a radio commercial urging me to contact various members of Congress to voice my support for tax credits connected to the wind energy industry. On a lark, I went to the Iowa Legislature website and searched active bills for the word “wind,” and received several dozen hits, many of which seemed to be focused on state tax credits for manufacturing and installing wind turbines. Both state and federal politicians seem to be tripping over themselves to get into the wind energy craze.

Back in 2010 Alliant Energy was petitioning to be allowed to increase the rates they charged for electricity, and one of the supporting reasons they put forward was the $150 million project called the Whispering Willow-East wind farm in Franklin …


Why I am Caucusing for Ron Paul

“I have little interest in streamlining government or in making it more efficient, for I mean to reduce its size. I do not undertake to promote welfare, for I propose to extend freedom…..And if I should later be attacked for neglecting my constituents’ “interests,” I shall reply that I was informed that their main interest is liberty and that in that cause I am doing the very best I can.”
– Barry Goldwater, Conscience of a Conservative

Perhaps more than any other politician of the twentieth century, Barry Goldwater captured the essence of the American spirit – ferocious independence. This spirit depends upon the Constitution for its life and energy. Without our Constitution, our nation is nothing more than another geographic location; nothing but more …


Student Loans, Debt Crisis and Bondage

In the medieval era there was a rather odd ceremony; when a member of the lower social castes found themselves in dire straights, they turned to the landowning nobility. In exchange for land to work, the noble demanded a portion of the produce, availability for certain laborious tasks, and service in the event of war. The agreement was sealed when the peasant laid his head into the hands of the noble lord.

This ceremony was called a Bondage, as it sealed the bond of the peasant to the noble, as his serf (in contrast with an Homage, where one noble became a vassal of another noble). In our advanced and progressive times, we are – of course – much more evolved and civilized. Far from …


The Great Sino-American Currency War

The economic relationship between the United States and China is often described as being “co-dependent.” The Chinese lend America money, and the Americans buy Chinese goods. If the Americans stopped buying Chinese goods, then people in China would lose their jobs, and if the Chinese stopped lending to America, then Americans couldn’t consume Chinese goods, and around and around as the story goes.

It is a complete mirage. Right now, the Chinese are dedicating a large portion of their economy (land, labor and capital) to produce cheap, depreciating consumer goods to sell to the United States. We pay for these goods with American dollars, and China’s domestic exporters have so far been happy to accept these dollars in exchange for their products.

These dollars flow …


Default is Inevitable, Part II

Talking points are truly amazing things. They capture the essence of the obsessions of political operatives. The political news has recently been dominated by the talking points surrounding the debt ceiling debate, with the main terms of choice being the assorted variants of “apocalypse.”

First of all, failing to raise the debt ceiling would not automatically lead to a default on the national debt. The federal government would continue to collect revenue, and could use that revenue to pay debt obligations as they fall due, or in other words, pay the coupon interest on time. This would involve deep cuts to everything else, and if you are a professional politician that is synonymous with impossible, so there is an assumption that default would be the …


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