Citizen Tom

A perspective from Gainesville, Virginia on the regime of “change”

Archive for the ‘political cartoons’ Category

A TUTORIAL ON DERIVATIVE MARKETS

without comments

I got the following in an email from one of my brothers.  When I read it, I cracked up.

Judge for yourself.  How well do you think this little yarn illustrates how foolish we can actually be?

Heidi is the proprietor of a bar in Detroit.  In order to increase sales, she decides to allow her loyal customers – most of whom are unemployed alcoholics – to drink now but pay later.  In a ledger, she keeps track of the drinks consumed (thereby granting the customers loans).  Word gets around about Heidi’s drink-now-pay-later marketing strategy and as a result, increasing numbers of customers flood into Heidi’s bar and soon she has the largest sale volume for any bar in Detroit.  By providing her customers freedom from immediate payment demands, Heidi gets no resistance when she substantially increases her prices for wine and beer, the most consumed beverages.  Her sales volume increases massively.

A young and dynamic vice-president at the local bank recognizes these customer debts as valuable future assets and increases Heidi’s borrowing limit.  He sees no reason for undue concern since he has the debts of the alcoholics as collateral.  At the bank’s corporate headquarters, expert traders transform these customer loans into DRINKBONDS, ALKIBONDS and PUKEBONDS.  These securities are then traded on security markets worldwide.

Naive investors don’t really understand that the securities being sold to them as AAA secured bonds are really the debts of unemployed alcoholics.  Nevertheless, their prices continuously climb, and the securities become the top-selling items for some of the nation’s leading brokerage houses, who collect enormous fees on their sales, pay extravagant bonuses to their sales force, who in turn purchase exotic sports cars and multimillion dollar condominiums.

One day, although the bond prices are still climbing, a risk manager at the bank (subsequently fired due to his negativity), decides that the time has come to demand payment on the debts incurred by the drinkers at Heidi’s bar.  Heidi demands payment from her alcoholic patrons, but being unemployed, they cannot pay back their drinking debts.  Therefore, Heidi cannot fulfill her loan obligations and so claims bankruptcy.  DRINKBONDS and ALKIBONDS drop in price by 90%.  PUKEBONDS perform better, stabilizing in price after dropping by 80%.  The decreased bond asset value destroys the bank’s liquidity and prevents it from issuing new loans.

The suppliers of Heidi’s bar, having granted her generous payment extensions and having invested in the securities, are faced with writing off her debt and losing over 80% on her bonds.  Her wine supplier claims bankruptcy, and her beer supplier is taken over by a competitor, who immediately closes the local plant and lays off 50 workers.  The bank and brokerage houses are saved by the Government, following dramatic round-the-clock negotiations by leaders from both political parties.  The funds required for this bailout are obtained by a tax levied on employed middle-class non-drinkers.

Finally, an explanation we can understand …

The Cartoons

Written by Citizen Tom

July 14, 2009 at 7:00 am

THE ENEMY OF CONSERVATISM — PART 3

with 5 comments

This is the last post of a three-part series.  The connecting thread?  What is the enemy of Conservatism?  This post proposes to answer that question.  In the process, I will first answer another question.  Why don’t our leaders practice Conservatism?

Why don’t our leaders practice Conservatism?

What is wisdom?

When we elect our public officials, what is it we say we desire from them?  Is it not wisdom?  What is this quality we call wisdom?  Are our elected officials wise?  Do they actually practice wisdom on our behalf?

These are difficult questions.  The problem is defining wisdom, that is, what is wise in actual practice.  This problem is why we have elections.   We cannot agree what constitutes the application of wisdom.

Consider, for example, how a professor of philosophy might approach the definition of wisdom.  After a long and laborious explanation, the Standford Encyclopedia of Philosophy finally reaches this conclusion (from here).

S (meaning Socrates) is wise if

  1. S has extensive factual and theoretical knowledge.
  2. S knows how to live well.
  3. S is successful at living well.
  4. S has very few unjustified beliefs.

Each of the four propositions above cannot be measured.  So even if we accept the above definition as true, we still have a problem.  Because the measure and the relative importance of each factor lies in the mind of the beholder, we cannot agree who is and is not wise.

  • When does one’s knowledge become extensive?  What kind of knowledge is relevant?
  • How do we define living well?
  • What constitutes success at living well?
  • Which beliefs are unjustified?

Benjamin Franklin, stated the problem more concisely.

Who is wise? He that learns from every One. Who is powerful? He that governs his Passions. Who is rich? He that is content. Who is that? Nobody. — Benjamin Franklin, “Poor Richard’s Almanack,” July 1755, The Complete Poor Richard Almanacks, facsimile ed., vol. 2, p. 270 (1970). (from here)

Do our leaders have wisdom?

Conventional wisdom suggests that we gain wisdom as we grow older.  Unfortunately, there is nothing that suggests gaining wisdom with age is inevitable;  experience seems to do many of us very little good.  Many of us never learn from our “mistakes” or the “mistakes” of others.  Why?

Christians have an explanation for this problem.  Believing that wisdom comes from God, Christians regard the Bible as wisdom.  The Bible says wisdom is the gift of the Lord, and the Bible says we gain wisdom only when we have the right attitude. What is the right attitude?

Mark 10:13-16 (New International Version)

The Little Children and Jesus

People were bringing little children to Jesus to have him touch them, but the disciples rebuked them. When Jesus saw this, he was indignant. He said to them, “Let the little children come to me, and do not hinder them, for the kingdom of God belongs to such as these. I tell you the truth, anyone who will not receive the kingdom of God like a little child will never enter it.” And he took the children in his arms, put his hands on them and blessed them.

Little children are not “too clever.”  Their wants and desires are simple and readily seen.  They do not deceive others or themselves.   Without any awareness of pride, little children return the love of the adults who love them.

We call little children innocents for it is as adults we become captives of sin.  With experience, we have the opportunity to become either foolish or wise.  We struggle to choose correctly, and too often, we fail.

Although they may have degrees and well padded resumes, our leaders are only human.  Just like the rest of us, our leaders struggle to choose between good and evil.  In fact, our leaders, when driven by hidden ambition and pride, may be less wise than most of us.

We demonstrate wisdom with the choices we make.  We choose our leaders, and we choose only with such wisdom as we have.  If we do not choose wisely, then we do not have wise leaders.

Are we as a People wise?  If our choice of leaders is a good measure of our wisdom,  then our dissatisfaction with our political leaders indicates we are not.  The political philosophies and practices of our leaders range widely.  Because the majority of us are uncertain how our government should work, we do not know how to pick the people who should run it.  Instead, we end up with a popularity contest, and we end up with a leadership as foolish as ourselves.

What is the enemy of Conservatism?

Modern American Conservatism is a modest political philosophy.  It is advocated principally by those who believe that the American Dream is freedom, that the sole mission of government is to protect the liberty of the People.  From the Conservative perspective then, wise leadership is that leadership which is able to restrain itself.  Instead of trying to solve the People’s problems (which Conservatives regard as impractical), Conservative leadership protects the People’s rights so that the People have the liberty to solve their own problems.

What does the Bible suggest is the prerequisite for wisdom?  Who is the most famous Biblical example of a wise man?  That man was King Solomon.  How did Solomon receive his wisdom?   He humbly asked wisdom of God (2 Chronicles 1:7-12).

Centuries before he lived, Solomon understood Jesus’ admonition towards humility.

Matthew 23:11-12 (New International Version)

The greatest among you will be your servant. For whoever exalts himself will be humbled, and whoever humbles himself will be exalted.

Wikipedia (see here) has an interesting article that describes humility from the perspective of different religious faiths.  This article describes Christian humility as having the following features.

  1. submission to God and legitimate authority;
  2. recognition of the virtues and talents that others possess, particularly those which surpass one’s own, and giving due honor and, when required, obeisance;
  3. recognition of the limits of one’s talents, ability, or authority; and, not reaching for that which is beyond one’s grasp.

Second to charity, humility is perhaps the greatest virtue we need in a leader.  However, when we ourselves are prideful, unwilling to be the servants of others, we will not choose humble men and women to lead us.  Instead, we will choose a fantasy.  Michael Zak, in Back to Basics for the Republican Party, describes the problem this way.

At the core of the socialist outlook on life is what Freidrich Hayek described as the “fatal conceit.”  Far from any conscious or conspiratorial intent, a socialist’s fatal conceit stems from his egotistical assumption that any problem would disappear if he were able to impose his will on it.  Government employees, whom he projects would somehow act on his behalf, serve as the proxy for imposing his will on society.  A faceless bureaucracy is too impersonal, however, for some socialists, who prefer a proxy with a face.  These people prefer to focus their aspirations on some charismatic leader, whose cult of personality attracts people across the political spectrum who might otherwise not agree on anything else.  What matters to these socialists is that they can all dream about how the great leader would impose their own will on society if only he were in charge of everything.

Thus pride, humility’s opposite, undoes us.  For the leader we choose will be like ourselves.  If we are prideful, our leader will not long act on our behalf.  For once he has secured his power, our leader will impose his will, not our own, upon society and, of course, ourselves.

The End

This is the last post in a three part essay.  Links to parts 1 and 2 are provided below.

Note that Crystal Clear Conservative posts the latest Gallup Poll on the trend towards Conservatisms.

The Cartoons


Even Barack Obama was not sufficiently — umm, progressive — for some people.  I trust that they are happy now.

At the rate things are going, this is about the only way Obama will cut spending.

Written by Citizen Tom

July 8, 2009 at 7:00 am

DEEPLY CONCERNED

with 2 comments

It appears that President Barack Obama’s speech writers are going to have to spend more time with a thesaurus.  As Snapped Shot has observed here, Obama is overusing the expression “deeply concerned.”

Just in case some of those enthralled by the Exalted One misunderstand the meaning of this expression, here is the definition.

DEFINITION: Deeply concerned is what one experiences when one steps into deep doo-doo.  Deeply concerned is a euphemism which one uses to avoid the crude  admission that one is in deep doo-doo.

Actual examples as used by the Exalted One:

Obviously we are deeply concerned about the employment rate. What we are still seeing is too many jobs lost – too many families who are worried about whether they are going to be next.  (from here)

massive unemployment = deep doo-doo

In the Middle East, there is deep concern about Iran’s pursuit of nuclear weapons capability not simply because of one country wanting nuclear weapons, but the fact that if Iran obtained nuclear weapons, it is an almost — it is almost certain that other countries in the region would then decide to pursue their own programs.  (from here)

nuclear weapons + terrorist henchmen = deep doo-doo

Unfortunately, if overused, the expression deeply concerned will lose its efficacy.  So we can expect the Exalted One to develop a list of synonyms.  Thus Obama will tell us he is deeply troubled (by doo-doo), deeply disquieted (by doo-doo), deeply disturbed (by doo-doo), deeply alarmed (by doo-doo)…..

The Cartoons

Illustrating how President Barack Obama will soothe our deep concerns.

President Obama can continue to be “deeply concerned,” or

He can adopt some of the policies from the previous administration.

Written by Citizen Tom

July 7, 2009 at 11:16 am

AN ABSENCE OF EMPATHY

with 5 comments

I saw a new expression recently that I thought very good, “polarization merchant” (first noted here on Teri’s Tirades).  This is one of those expressions that is so apt no one can object and so succinct that comprehension is immediate.

Governor Sarah Palin resigned on Friday, and as the Washington Examiner notes, she is still getting dissed by the news media (here).  Many people have an extreme dislike for Palin, and this dislike blossoms forth in the news and entertainment media.  What is a mystery is why?  What has Sarah Palin done to earn such antipathy.  Consider that her opponents condemned her as inexperienced.  If that was the case, then what could Palin have done to earn such anger?

To some extent I think the problem is the way the news media does business these days.  The people in the news and entertainment business merchandize polarization.  To appear unbiased — and to emphasize and promote conflict — the corporate news media gives equal time and plausibility to both sides of every story, even when one side is complete and utter nonsense.  Hence, if that is what it takes, we humanize rabid terrorists, we make same-sex sex amusingly gay, and we work overtime to make a popular sitting governor appear the babbling fool.  Anything for ratings and profits.

Why did Palin resign?

The instant experts will go on and on giving us their opinion, but few will of them will listen carefully to the lady’s words.  Fewer still will put themselves in her shoes and try to understand what it is like to walk in them.

Of late I have listened again to the story of Moses and the Israelites.  Time and time again, unhappy, stiff-necked Israelites raged against God and Moses.  God could bear up under the complaints of the ungrateful and punish the offenders.  Moses, when he wearied could pray to God, but what can Sarah Palin do?  She too can pray and as wisdom dictates, resign.  Palin is not Moses leading the Israelites through the wilderness.   Palin is only a governor, and perhaps God wants her to resign and take up another task.

What can we do?

We can try to listen to Sarah Palin unfiltered (see here and here), and we can put ourselves in her shoes.  It is no secret that the news and entertainment media have subjected her and her family to constant harassment.  It is no secret that Palin’s political opponents have plagued her with legal troubles, forcing a costly defense which has put her family in debt (here).  Given these troubles, what would any of us do?  Would we allow our family to be forced into bankruptcy or resign?

Thus far Palin and her family have been isolated.  These people have borne the brunt of a nationwide offensive from the news and entertainment media.  As governor, Palin has been plagued by phony legal troubles.  Yet she and her family have received little help from the citizenry.

With that in mind, there two ways to view Palin’s exit.   Some have said Palin’s exit showed she could not take the heat.  Others, however, can just as rightly observe that we have no right to expect a governor or any public official to  endure  endless harassment, particularly costly legal harassment paid for by the state itself.

If we want Sarah Palin to run in 2012, then we have to give her reason to run.  We each have to look for ways to help.  Then perhaps Palin’s resignation may become what it already appears to some, a strategic retreat that allows her to strengthen her overall position.

All that is necessary for evil to triumph is for good men to do nothing.  — origin uncertain (here)

Other Views

Fisherville Mike has a parody in honor of Sarah Palin (here).

Mosquito Blog digs up an old video (here) and accuses Palin of whining.  Watch the video of Palin resigning (here).  Is she whining?  I don’t think so.  I think she is trying to explain a difficult choice.

Below the Beltway counts Palin out for 2012 (here).  Strikes me as premature, but I do not have a crystal ball.

The Mason Conservative sees Palin’s move as risky, but smart (here).

Virtual Virtucon set Liberals straight about their fantasies (here).

Rule .303 excuses Sanford and condemns Palin as spineless (here).  Judgmental?

The Cartoons

Do you remember the kindness of the news media and their careful and deliberate focus on the issues?

Written by Citizen Tom

July 6, 2009 at 7:36 pm

THE ENEMY OF CONSERVATISM — PART 2

with 2 comments

This post continues a topic that I started with this post, What is Conservatism? — Part 1.  As Smash Mouth Politics observed (here), there is an old adage that says we get more Conservative as we grow older.  Moreover, there is statistical evidence that supports this claim.  So I decided to study the issue.

Why does experience make one more Conservative?

What is experience?

If we look at the word itself, the answer is not readily apparent.  Experience can be used at both a noun and as a verb.  With the addition of a “d”, we gain a new form of the word, “experienced.”  That form is used as an adjective.  Nevertheless, in all its forms, the normal dictionary definition of the word “experience” refers to gaining knowledge firsthand from observation and participation.

How does experience change us?

No ordinary dictionary definition of “experience” will say much about what experience does to us.  For that, we must go to the Devil’s Dictionary by Ambrose Bierce.

EXPERIENCE, n. The wisdom that enables us to recognize as an undesirable old acquaintance the folly that we have already embraced.

To one who, journeying through night and fog,
Is mired neck-deep in an unwholesome bog,
Experience, like the rising of the dawn,
Reveals the path that he should not have gone.

Joel Frad Bink

When do we begin to gain experience?   Human life begins as a single cell in the womb of a woman.  In a period of weeks, the head and arms and the legs take form, and a clearly human form emerges.   Yet even after months have pass, it is only at birth that “experts” say the formative years of human life begin.  From our perspective, from long outside the womb, perhaps there is some small truth that demarcation.  How can a fetus be reckless?  What choices can a fetus make?  Its attitude?  Perhaps, but no one knows.

So it is that we usually think of wisdom as something we gain from the time of our birth.  Yet Jesus observed that to gain wisdom we should behave like little children.

Mark 10:13-16 (New International Version)

The Little Children and Jesus

People were bringing little children to Jesus to have him touch them, but the disciples rebuked them. When Jesus saw this, he was indignant. He said to them, “Let the little children come to me, and do not hinder them, for the kingdom of God belongs to such as these. I tell you the truth, anyone who will not receive the kingdom of God like a little child will never enter it.” And he took the children in his arms, put his hands on them and blessed them.

We enter the world small and needy, dependent upon large adults for all our needs.  In time we grow bigger and stronger, and others become dependent upon us.  In time we lose the humility of childhood.  In time, we become unable to receive the kingdom of God with the humility of a little child.

Yet God calls us back.  With maturity come responsibilities, misfortunes, and blessings.

  • Responsibilities:  Both our conscious and the world make demands of us.  Sometimes these demands are more than we can bear.
  • Misfortunes:  Trouble comes.  Sickness, accident, job loss, broken friendships and so forth unravel our peace and our confidence.
  • Blessings:  Unexpected joys, help unwished for….remind us that everything does not depend upon us alone.

Age also tears at the strength of every man and woman.  Age stoops the back; age slows the mind.  With increasing aches and pains, age assures us that a  procession of funerals will eventually end with our own.  When we finally accept the certain knowledge of our own death we become afraid.  We become desperate for answers we do not have.

Why would experience make us more conservative?

Imagine being Job (The Book of Job).  You sit in ashes, mourning.  You have lost all.  Your family is dead.  Your servants and your wealth are gone.  Your body is covered with painful sores.   All that is left are your friends.  They come to share your misery, and for a time they are silent with sympathy.  Then they begin to speak, and their words are an accusation.  What, they wonder, have you done to earn God’s wrath?

Job was guiltless.  Job was so worthy God honored his faith.  He made Job’s faith an example for angels and generations of men to come.   So that we might know of Job’s example, God allowed Satan to curse Job.  Job, however, did not know of God’s intentions, and Job’s friends were unwilling to believe God would allow a good man to experience such ill fortune.  So they judged him, and they added to his pain.

Nonetheless, Job’s friends were not bereft of wisdom.  When Job repeatedly denied their accusations, they eventually grew silent.  Then a young man spoke up.

Job 32:10-13 (Today’s New International Version)

“Therefore I say: Listen to me;
I too will tell you what I know.

I waited while you spoke,
I listened to your reasoning;
while you were searching for words,

I gave you my full attention.
But not one of you has proved Job wrong;
none of you has answered his arguments.

Do not say, ‘We have found wisdom;
let God refute him, not a mere mortal.’

The young man found himself angry at Job’s denial, full of words, and compelled to speak.  God would not punish the guiltless, he thought.  Since God seemed unavailable, he decided to speak for Him.

Job 36:2-4 (Today’s New International Version)

“Bear with me a little longer and I will show you
that there is more to be said in God’s behalf.

I get my knowledge from afar;
I will ascribe justice to my Maker.

Be assured that my words are not false;
one who has perfect knowledge is with you.

When the young man had finished speaking, God decided to speak for himself.  He began by reminding Job, Job’s friends, and the young man of how little we actually know.   The Lord reprimanded Job’s friends.  Of the young man, nothing more was said.  Presumably, he was forgiven due to his age.  Perhaps he was expected to learn from his folly.

Conclusion

Experience is the difference between theory and practice.  As we get older, we accumulate a record of trial and error.  Under the care of parents, children have yet to be humbled by reckless behavior and evil choices.   Children do not fully understand the benefits of careful consideration and concern for the welfare of others.   Too often, the young have the confidence and pride of perfect knowledge.  The young have yet to see how what works theory fails in practice.

The Cartoons

Mark 10:13-16 (New International Version)

The Little Children and Jesus

13People were bringing little children to Jesus to have him touch them, but the disciples rebuked them. 14When Jesus saw this, he was indignant. He said to them, “Let the little children come to me, and do not hinder them, for the kingdom of God belongs to such as these. 15I tell you the truth, anyone who will not receive the kingdom of God like a little child will never enter it.” 16And he took the children in his arms, put his hands on them and blessed them.

Written by Citizen Tom

June 29, 2009 at 7:00 am