Obama speaks to both houses 02/24/2009

President Obama addressed both houses of Congress last night and talked about how the government will fix the economy.

Some of his statements went against my economic theory.

For example "lending is the life blood" of the economy. The fact is we don't need lending at all. Our "financial system" has failed over and over again since it began. It goes against natural economic law and therefore can't exist without artificial government support. Now that wouldn't be a problem, except that the more failed systems we support the less competitive we become in the global economy and we spiral downward.

"It's not about about the banks, it's about the people" this doesn't make sense. He is giving money to banks to "loan" to us. So we have to pay it back but banks don't? The reason they are giving it to the banks is that the financial system creates money. For example I have $100 dollars in the bank. Now the bank loans out $70. Now I have a $100 and someone else has $70. It doesn't make a lot of sense but this is what economists practice. So with the governments $1 trillion they can inflate the economy by $1.7 trillion... smoke and mirros. The government understands that only one thing needs to happen to support the fake economy (financial system) is fake inflation.

Education it is our responsiblity to make laws that make it work. My theory is that consumer choice without mandates will always improve quality and bring down prices. I would eliminate the need for teachers and schools to be licensed. Let the parents decide who should teach their kids.. And stop the mandate. I need the choice not to send my kid to school, so I have more leverage in netotiating price and quality.

Read instead of video games - What if they are wrong. Kids will do what they need to do to get what they want. Being skilled in the technical arena has proven to be a virtue in our economy.

"We will eliminate the no bid contracts that wasted billions in IRAQ" I thought this was funny because isn't that what the government does to us every day? We don't have a choice on education, drugs, heathcare, insurance, etc. In fact all government agencies reduce our chance of getting bids on our contracts and cost us $trillions.

Stable and Affordable housing. We want to keep prices up AND make the affordable, the only way to do that is risky financing... here we go again!!