American politics appears to be broken. Polarisation, excessive reliance on the judiciary to make laws, and gridlock in Washington, resulting in episodic fiscal cliffs, suggest a malaise. I've just read a piece in the American Interest by the ever-insightful Francis Fukuyama on what is wrong with American political institutions. He delves into the historical development of American politics and finds that the current problems are deep-seated. He highlights two particular problems - (a) the rise of lobbyists and special interest groups and (b) the usurpation by the judiciary of law making. Fukuyama is pessimistic about the future of American politics. According to him, the last time the US found itself with such a malaise, it took the Civil War to change the political trajectory of the country.
According to Robert Shiller , speaking at Davos, Bitcoin is a perfect example of a bubble - story here . Shiller sees Bitcoin as a backwards step in the evolution of money. George Selgin , a free banker, takes an opposing view - click here . Although he doesn't believe that Bitcoin is money, he sees its development as a fascinating turn in the evolution of money. In particular, he lauds the fact that Bitcoin production is constrained and cannot be infinite. There is a short video below where Bitcoin explain how it works.