Thursday, April 30, 2009

A Letter from Ron Paul About HR 1207 to Audit the Fed

Dear Friends,

As we reflect on President Obama's first 100 days in office, the hundreds of billions of dollars in taxpayer bailouts of Wall Street and the just passed budget, a staggering $3.4 trillion boondoggle, I wanted to share some good news with you.

As I write, H.R. 1207, my bill to audit the Federal Reserve, currently has 110 cosponsors in the House of Representatives. This piece of legislation is perhaps the most important of my career, and I thank you for your continued support in sending me back to Congress to fight for it.



A broad coalition of Representatives has joined with me in supporting your right to transparency at the Fed. For example, Rep. Tom Price (GA), head of the conservative Republican Study Committee, and Rep. Lynn Woolsey (CA), former head of the liberal Progressive Caucus, have both cosponsored the bill. Americans from all over the political spectrum are demanding an audit of the Federal Reserve. And with good reason!



Since its inception, the Federal Reserve has operated without sufficient transparency or accountability to the American people. In fact, current law specifically excludes the Fed from audit or real congressional oversight. No government agency has such an utter lack of sunshine.



The Federal Reserve has created and dispersed trillions of dollars in response to our current financial crisis. Of course, I am among the most outspoken critics of the bailouts, but Americans across the nation, regardless of their opinion of the TARP program, want to know where that money has gone and exactly how much has been spent.


H.R. 1207 will open up the Fed's funding facilities, such as the Primary Dealer Credit Facility, Term Securities Lending Facility, and Term Asset-Backed Securities Lending Facility to Congressional oversight.


Additionally, audits could include discount window operations, open market operations, and agreements with foreign central banks, such as the ongoing dollar swap operations with European central banks.


By opening all Fed operations to a GAO audit and calling for such an audit to be completed by the end of 2010, the H.R. 1207 would achieve much-needed transparency of the Federal Reserve.


Times are tough, and we continue to hear a stream of bad news. But I will continue to stand up for you in Congress and fight for our American traditions, to protect our Liberty and for an Audit of the Federal Reserve.

Thank you again for your support. I could not continue my fight without you.

In Liberty,

Ron Paul

Tuesday, April 28, 2009

The Doomsayer Allstars (Video) Ron Paul, Jim Rogers, Marc Faber, Max Kaiser, Peter Schiff

Over the past year a small group of trader/economist/pundits has emerged as a sort of cadre of doomsayers. They don't always agree with one another. They aren't always right. But generaly they do agree that the US dollar is being destroyed by the Federal Reserve for the benefit of a small group of very powerful people.

I agree with much of what these guys have to say. Not all, but much.

And now...Your Doomsayer Allstars!!!

1. Straight out of Galvaston Texas... the original Dr. No... Ron Paul!

2. Everyone's favorite Swiss Austrian Economist...Marc Faber!

3. Our man in in Asia...King Hong Kong...Jim Rogers!

4. This Kaiser ain't in Germany but in France...and he wants to kill the kings...Max Kaiser!

5. EuroPacific Capital's Head Dude...Better dead than Fed...Peter Schiff!


And there they are... yourrrr Dooooomsayer Allstarrrs!!!

Monday, April 27, 2009

Real Time Swine Flu Map, Atlas Shrugged Praised by CNN?, Goodbye Pontiac




Hopefully this thing won't get too bad. But always good to be informed.


_________________________________________________

The apocalypse may indeed be upon us. CNN has a very complimentary piece (mostly) on Ayn Rand and Atlas Shrugged.
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Goodbye Pontiac

Pontiac is no more. The maker of such legendary vehicles as the GTO and Firebird has died. If they ever do a remake of Smokey and the Bandit, and we can only pray that Hollywood some day will, the Bandit will have to be content riding the highways of Georgia in a Chevy Volt, or worse.

Pontiac’s demise is no shock. If anything its more shocking that the maker survived as long as it did. Let’s face it. Pontiac just made crappy cars.

Of course in addition to the GTO and Firebird, Pontiac also sired such winners as the Aztec, basically an ugly minivan with a pop-top off the back door, which we all know isn’t right.

Or the Le Mans which started life as a more than respectable late 60s Detroit muscle car. But in the 80s the nameplate was reintroduced as horrible econobox seemingly fused together with super glue and duct tape-which basically it was.

And who could forget (except everyone) the Pontiac 6000? Rarely has GM combined such utter lack of style with such utter lack of craftsmanship. For GM this is saying something.

Pontiac was Oldsmobile’s (also dead) little brother. Both makers served up lackluster products for nearly 3 decades before being taken to the woodshed. 30 years is a long time to build a poor product. But both Pontiac and Olds survived because GM was fat and happy with an equally fat market share that they thought would never erode.

GM management preferred to deal with sub par performance on the part of these sub-companies than deal with potentially unhappy unions and dealers that relied on the brands. It was just easier to sell shit than deal with the shit. And no company deserves to survive with an attitude like that.

Goodbye Pontiac. You won’t be missed. By me anyway.
-NDS








Friday, April 24, 2009

The Fed, Pakistani Nukes, and This Week's Libertarian Times




H.R. 1207 to Audit the Fed (And it has 50 Co-sponsors!)

I believe the Fed is the source of many of this country’s financial ills. I know I am not alone. H.R. 1207 would force an audit of the Fed. If there was any time to insist on this, now is the time.

-N.D.S

If you call Washington DC 1 time this year in support of a bill, make it for H.R. 1207.
Audit the Federal Reserve. Let’s see what they’re doing.
The Capitol Switchboard number 1-877-851-6437.
(VIDEO)

Track the Bill Here: (govtrack.us)
H.R. 1207: 2009-2010 Federal Reserve Transparency Act of 2009

Fed buys $7 billion in Treasurys

High School Senior makes case for commodity backed currency
A great little story



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Nukes and Al Qaeda in Pakistan
From: Defense Update

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Deadly new flu breaks out in Mexico, U.S.
Strange swine flu rocks La Ciudad de Mexico, Fatalities (61)

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When Do Deficits Matter?
While Democrats and Republicans switch sides, economists try to pin down a tipping point.
A very nice piece about an important question in Reason’s May newsletter.

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LIBERTARIAN TIMES – ISSUE #3, APRIL 24, 2009
From Andy in KL (Or Kenya, or Germany, or…)


Editorial

This third issue will be dedicated to the feedback received from last week’s issue on the Libertarian Diaspora and the idea of a global Libertarian Community. While the number of respondents was similar to last week’s (about 40%), the volume was much larger, for which I am very grateful. To all of you who took the time and effort to share your comments and suggestions, even offers of help, a great big Thank You!

Generally speaking, the idea of a Libertarian Diaspora/Community was received in Europe far more enthusiastically than in the USA. There could be several reasons for this. For one, my readers in Europe outnumber my readers in the Americas. They are also on average younger than the American readers. And perhaps, Europeans can identify better with a Diaspora than Americans. Some of you even belong to the Diasporas I used in my examples.

The way I want to approach sharing the comments is by presenting my proposed ideas through a number of questions and using the feedback as the answers received.

Is the goal of a Libertarian Diaspora or global Community worth striving for?
Is the goal attainable?
Is the economic crisis a sufficiently strong “trigger” to form such a Community?


Is the goal of a Libertarian Diaspora or global Community worth striving for?

None of you said it was not and many of you fully supported the idea and the goal of a Community of Libertarians that collaborate for the good of the Libertarian cause (spreading and defending the message of Liberty as we understand it) and for the good of the members of the Community (mutual support and cooperation on several fronts: educational, economic, philosophical, political, and perhaps even social and emotional).

Some of you asked for more specifics on the goals of a Libertarian Community. How would it work in practice? This is one area I want to explore, together with you, over the next couple of weeks. It is important that the members of the Community agree, not just on the philosophy, but also on the concrete goals and objectives.

The long-term objective of a Libertarian “Homeland”, sometimes referred to as “Libertopia”, was mentioned several times, however, for the time being, I would really like to leave it as a long-term objective.

I firmly believe that a fully organized and functioning virtual global Community needs to be established first before we can seriously look at a separate “Homeland” or “homelands”. It can serve in the meantime as a Vision or inspiration to strive for but we are a long way away from a “Libertopia”, I feel.

Is the Goal Attainable?

This is the question that generated the largest volume of feedback. It is also the question on which the European and American comments differed the most.

Most of the skepticism came from the American readers who reminded me, correctly, that the establishment of a global Libertarian Movement that goes beyond seminars and conferences has been attempted several times before and that none have succeeded over any length of time.

Many of you, from both sides of the pond, reflected that a “mere” philosophy lacks the ingredients necessary to form a lasting bond such as exist in a Diaspora based on culture, religion, or birth. A philosophy can never duplicate the strong emotional and social bonds of a people linked by family, customs and nationality. Also, many Libertarians live in the country of their birth and have strong ties to its culture, customs, and institutions, perhaps more so in America than in Europe. This could be another reason for the greater prevalence of American skepticism.

Does the fact that previous attempts have failed mean that this attempt has to fail too? I don’t think so and many of you did not think so. We should learn from past failures, find out why they happened and the circumstances surrounding them, and ensure that we don’t make the same mistakes. That’s why it would be good to get more details about these past attempts and if any of you have such details, please share them with us, so that we may all learn from them. Failure, really, is only when you give up trying. If the goal is worth it, we should keep trying but not repeat the same mistakes.

The other suggestion that was made by many of you is to focus on economic collaboration as the stronger bond (compared to philosophical) to replace the cultural and religious bonds of other Diasporas.

Throughout the world, we see how economic success forms strong bonds even among people who have no other link to each other. Any large corporation is made up of individuals whose only connection to each other is their work. They often talk about their corporate “families” and try to establish the social and emotional bonds through Family Days, social functions, sports or other activities, apart from just work.

As Libertarians, we should therefore add strong economic ties to our philosophical bonds and social functions (camps, seminars, conferences, etc.) to “get” that feeling of belonging to a special group and to act accordingly.

We may need to define what “strong economic ties” are in our context. I imagine it would involve establishing formal enterprises that make use of the talents, knowledge, experience and resources of a particular group and run it as a successful commercial enterprise that makes profit, part of which is shared among the members/shareholders and part of which is “re-invested” in Libertarian activities, be they educational, social, political or philosophical. The decision makers in the enterprise would have to be members from the Community. Customers can come from anywhere.

Please let me know if this is an idea worth “fleshing out” over the next few weeks! Any suggestions here are welcome!


Is the economic crisis a sufficiently strong “trigger” to form such a Community?

While not many of you commented on this question, those that did were of the opinion that, in the not too distant future, the fallout from government reactions to the economic crisis will be sufficient to act as a trigger. Most put the timeframe as within the next 2 years. This would give us time to establish a Community with the required economic, philosophical and social bonds.

The anticipated fallout includes the destruction of monetary value and hence our savings, massive inflation caused by reckless printing of money, greater interference by governments in the lives of businesses as well as individuals, greater restrictions on what we can do with our savings and perhaps on free movement, attacks on tax havens and any attempts to minimize taxation, price and wage controls, massive unemployment that could potentially result in social unrest and threats to our personal security.

We have already heard cries of “Off with their heads”, be they directed at AIG executives or the former CEO of Royal Bank of Scotland and many other former high flyers. A recent front cover of ‘The Economist’ alluded to the French Revolution and warned of rising populism.

While the above fallout may or may not happen, the probability of it happening is rising as more and more people are directly impacted by the crisis: unemployment, pay cuts, benefit cuts, insecurity in the workplace, inability to make ends meet, later retirement, and a host of other minor effects.

These scenarios may be sufficient to encourage Libertarians to “unite” and work together for the common as well as the individual good. Competition is fine, but if done properly and within a defined framework, collaboration can achieve much more and faster and more efficiently.

The readers of “Libertarian Times” come from 23 countries at present and the scenarios outlined above may start to happen in only a few of them. A recently published list on the Internet named 10 countries that will feel the impact of the crisis more severely than others. Perhaps our Libertarian friends in those countries can be our “canaries in the coalmine” and give us ample warning of when the “trigger” is coming for the rest of us!

Andy

Wednesday, April 22, 2009

Feinstien Jacks the System for 25 Billion

This from the Washington Times:


On the day the new Congress convened this year, Sen. Dianne Feinstein introduced legislation to route $25 billion in taxpayer money to a government agency that had just awarded her husband's real estate firm a lucrative contract to sell foreclosed properties at compensation rates higher than the industry norms.

Mrs. Feinstein's intervention on behalf of the Federal Deposit Insurance Corp. was unusual: the California Democrat isn't a member of the Senate Committee on Banking, Housing and Urban Affairs with jurisdiction over FDIC; and the agency is supposed to operate from money it raises from bank-paid insurance payments - not direct federal dollars.

Documents reviewed by The Washington Times show Mrs. Feinstein first offered Oct. 30 to help the FDIC secure money for its effort to stem the rise of home foreclosures. Her letter was sent just days before the agency determined that CB Richard Ellis Group (CBRE) - the commercial real estate firm that her husband Richard Blum heads as board chairman - had won the competitive bidding for a contract to sell foreclosed properties that FDIC had inherited from failed banks.

About the same time of the contract award, Mr. Blum's private investment firm reported to the Securities and Exchange Commission that it and related affiliates had purchased more than 10 million new shares in CBRE. The shares were purchased for the going price of $3.77; CBRE's stock closed Monday at $5.14.

Spokesmen for the FDIC, Mrs. Feinstein and Mr. Blum's firm told The Times that there was no connection between the legislation and the contract signed Nov. 13, and that the couple didn't even know about CBRE's business with FDIC until after it was awarded. (continued at link)

http://washingtontimes.com/news/2009/apr/21/senate-husbands-firm-cashes-in-on-crisis/

Sunday, April 19, 2009

CNN vs. Chicago, Garafolo is a nutbar, Ron Paul talks about the Tea Party Message




CNN vs. Chicago, Garafolo is a nutbar, Ron Paul talks about the Tea Party Message

CNN vs. Chicago
http://www.youtube.com/watch?v=y6xWGvdRQ9Q

Garafolo says that tea party attendees are racists
http://www.youtube.com/watch?v=jAAHMDpk7Ik

Ron Paul talks about tea parties on Monetel Williams
http://www.youtube.com/watch?v=YEeXpnHQIrk

Saturday, April 18, 2009

Libertarian Times- April 17, 2009 (Libertarian Diaspora)

This is a great piece. Andy is right on the money with this one.



LIBERTARIAN TIMES – ISSUE #2, APRIL 17, 2009


Editorial

Welcome to the second edition of Libertarian Times and many thanks to all of you who wrote comments, questions and suggestions (about 40% of you) and to those who responded to the questions in the “Your Turn” section of issue 1 (about 10%). I really appreciate your feedback and I will devote this second issue to my response.

One common thread in your feedback from issue 1 was the (correct) observation that it was not really a newsletter.

There are so many newsletters, blogs and information sites available already and I do not have special access to sources that would allow me to bring “breaking news” to you, not even from the Libertarian side.

My purpose in summarizing the news pertaining mainly to the economic crisis was simply to get agreement on the “facts” of the situation, to ensure we are all on the same “page” and so have a common starting point. The next step was to get agreement on the impact of these facts on 3 areas: the global economy, the Libertarian cause, and your individual lives. The third step was to get agreement on a plan of action for the community to protect our interests, our money and our savings, to defend our philosophy, and to ensure that the community survives and prospers far beyond this crisis.

Many of you have been curious about my “real intentions” with this “newsletter” and I want to use this issue to “come clean”, so to speak.

I think the best way to describe my objectives here is to give examples to illustrate what I have in mind and what inspired me to write to you all.

My first vivid experience of what a community can achieve when it works together was shortly after arriving in Australia as a new migrant. I rented an apartment opposite a synagogue in Melbourne, owned by a Jewish immigrant. I later found out that every apartment in that street was owned by a member of the Jewish community.

A sight I will never forget was when, on Saturday morning, a fleet of 10-12 Rolls Royces rolled up and parked outside the synagogue. All the passengers alighted and went to the synagogue. The remarkable thing about this was that all the Rolls Royce cars were the same model, same year and the same color (wine-red).

When I had the opportunity to pay my rent and talk with the landlord, who was one of the owners of the Rolls Royce, he explained to me that several members of the Jewish community had agreed to buy the cars in bulk, agreed on a color, and placed the order as a single order, thus fetching a substantial discount. Until that time it had never occurred to me that people could or would do such a thing. I figured it was particularly Jewish and left it at that.

In the same suburb I saw restaurants and corner shops opposite each other and assumed they were competitors. Later I found out they were actually owned by members of that same Jewish community. The illusion of competition actually helped their businesses grow. Again, this was a totally new concept for me (I was 20 years old at the time, coming from “old” Europe) and as I discussed all this with my landlord (by now we had become good friends) I was amazed at the source and reason for the community’s success. Again, however, I dismissed it as a purely Jewish phenomenon, resulting perhaps from 2,000 years of persecution or from a desire to maintain their culture and religion or a combination of both.

Over the years I noticed that this kind of community cooperation was not limited to Jews, but I also saw it in the Chinese and Indian communities, and later in the Iranian community created by the exodus of many Iranians following the Islamic Revolution of 1979. More recently, I have had the privilege to witness it again among the Somali Diaspora which consists primarily of the intellectual and commercial elite that left the country just prior to the war of 1991.

What they have achieved is truly remarkable in my view.

Not only have they maintained contact with each other, although they are dispersed all over the world, they are actively working together to establish enterprises, gain influence in the countries where they reside, support each other, ensure their children are taught the history, culture and customs of Somalia, and they plan as a group on how to rebuild Somalia once peace is restored. The dividends from their various enterprises are used not just for their immediate needs but also as capital for the future reconstruction of their country. They have regular meetings, including a global yearly affair (the last one was in Alberta, Canada), where they plan their next steps, exchange business ideas, create links between the communities in each country, and celebrate their culture.

In Kenya, for instance, where I am at the moment, whenever a new business opens, a new hotel or factory is built, there is a good chance that a Somali is behind it.

As I analyzed these various communities to find out what they had in common that made them so successful, I came up with the following conclusions:

A dramatic event was the trigger for dispersing them throughout the world (whether it is the destruction of Jerusalem in 70AD, the Communist Revolution in China of 1949 – the whole of Taiwan is practically a Diaspora - , the Iranian Islamic Revolution of 1979, the Rwandan Genocide of 1994, or the war in Somalia in 1991, some major historic event triggered the exodus, usually from among the elite of that population)
Although dispersed, they kept in touch, worked within their communities in each country where they settled, achieved success by collaborating, cooperating and supporting each other, and working toward bigger objectives (restoring their original home country, for instance) than their personal ones, without of course neglecting them; in fact, they make sure that each individual member of the community is also personally successful
Thirdly, they partially integrate into the society where they live but maintain their own identity at all times; marriages are usually from among the children in the community; they go to great lengths (and often expense) to ensure their history, their culture, tradition, and customs are maintained; they support each other at all levels (physically, mentally, spiritually); and they construct an “infrastructure” to support their global communications, collaboration and management.

While I do not wish to “over-romanticize” these communities and while harmony is not always assured (witness the Chinese Triads for instance or the Italian mafia gangs), there is no denying that much of their success is due to the fact that they are “strangers” in the lands where they live, they have a common bond, and a long-term objective related to their home country, and have used these things to support each other and work together toward their common objectives.

While reflecting on all of this, I realized that we Libertarians are actually in a very similar situation to these Diasporas.

We too are “in this world but not of it”. There is not a single one of the 193 national governments of the world that we could fully identify with or whose philosophy we could fully embrace.

We too have a philosophy (“culture”) that we think needs protecting, defending, promoting, and ensuring it does not die out.

We too keep in touch, exchange ideas, have regular meetings, and sometimes organize into political, educational or philosophical groups.

And we too have a desire to “return” to our home country, where the philosophy and ideas of Liberty (in all its Libertarian meanings) are applied, practiced and developed. Many Libertarians I know are searching for a “Libertopia” where we can live our Libertarian lives. The arrival of the “Libertarian Times”!

What was missing was the “trigger” to create the Libertarian “Diaspora” and I see the current global economic crisis, especially the reaction by governments all over the world to the crisis and the likely impact of this reaction on our Libertarian community and all it implies, as a potential trigger for us to collaborate as a global community, in the same way as the other Diasporas have achieved. This is my vision and the purpose of my letters is to find out who among you shares this Vision and is prepared to work together toward achieving our objectives.

Perhaps you think “I’m a Dreamer” but I need to find out if “I’m the only one”!

As always, keep your letters, feedback and suggestions coming and thanks for bearing with me!

Andy

Friday, April 17, 2009

The Dollar, the Fed, and Freedom (My Speech from 4-15-2009 Tea Party)

The Federal Reserve is not the easiest thing to talk about sometimes. Below is the speech I gave to the Charlottesville Tea Party this past Tax Day. There were over 1500 people in attendance in this traditionally very statist town.

Lots of fun.


The Dollar, the Fed, and Freedom

So we’re here to make our voices heard because we believe, we feel, we know, that there is something very wrong our country. Over the past year we’ve seen our IRAs shrink, the value of our homes diminish, and in recent months have even begun to fear that our way of life, a way of life that is based on freedom and free enterprise is under serious threat.

And it is under threat. But this is not a new phenomenon. We have just recently entered an acute stage of crisis. For quite a while we have we have observed the continual decline in the purchasing power of our dollar. It gets harder and harder to make ends meet. Slowly, year by year, more and more of our freedoms are taken away by bureaucrats who enforce ever more numerous regulations. We say nothing as the tentacles of government reach into every corner of our once private lives. We have said nothing, but that time is past. We now say we have had enough.

As a fan of freedom it pleases me to see such open advocacy for liberty today. But this crisis, and the ensuing fallout is not Obama’s fault. It’s not Tim Gietner’s fault. It’s not Hank Paulson’s fault. It’s not even Ben Bernake’s fault, solely.

The main reason we find ourselves in the midst of the current economic calamity is because of the deeply flawed Federal Reserve driven economic regime this country has lived under since 1913.

The famous economist Murray M. Rothbard once said, “The Federal Reserve System virtually controls the nations monetary system, yet it is accountable to no one. It has no budget, it is subject to no audit, and no Congressional Committee knows of, or can truly supervise its operations.”

We are told that the Federal Reserve exists for our benefit. We are told that the world would fall apart without its guiding hand. This is false.

Most people don’t really know what the Federal Reserve is.

The Federal Reserve is an ingenious institution that bridges the gap between the federal government and the large banks of the world. It is a central bank that sets the price of money, that is interest rates for the US and by extension much of the world. It is after the US government the most powerful institution in the world. But it is most importantly a cartel by which the most powerful banks in the world protect their interests, often at our expense.

It is a cartel like any other. Only the Federal Reserve doesn’t deal in sugar, oil, or drugs, It deals in money. People forget that money is a commodity in addition to the means by which commodities are exchanged.

The Fed gets to set the cost of money arbitrarily. If it wishes to raise interest rates it does so. If it wishes to lower interest rates it does so. By doing either one it determines the fate of millions by sheer decree. There is no market mechanism at work here. Whether the Fed moves is the opinion of fallible, often very fallible, Fed governors. I for one do not like my fate being determined by a small group of secretive and thoroughly unelected “masters of the universe” that I know are at least as human as I am.

I would prefer that interest rates be set by the market. If a bank wanted my money it’d give me a higher rate. If it didn’t it’d offer me a lower rate. Banks sell money. Don’t forget that. Money is subject to the same rules of supply and demand that turnips are. The bankers however have done a very good job of convincing people that that there is some kind of mystical element to what they do. I’m here to tell you that there is no magic. Bankers adhere to the 3/6/3 rule. That is get the money at 3%, lend it at 6% and be on the golf course by 3 PM.

The Fed has many powers granted to it by Congress through the Federal Reserve Act. But the most important of these powers is the ability to create money out of nothing. Just move a couple of decimal points to the left and poof new money to do whatever the Fed wants to do. OK it’s not quite that simple, but it’s close to that simple.

It’s a great trick. Whenever the government needs another credit card to pay its bills it just asks the Fed to make a new one. And then another. And then another. And then another. Until we have a debt that threatens to destroy the Republic itself.

This is our current situation. We are trying to use yet more debt to extricate ourselves from a situation that was created by the reckless creation of debt. It will eventually destroy us if we don't head in a new direction in the very near term. Seriously when does it end? When do we start being adults? When do we start doing the right thing?

The truth is that the federal government and the Federal Reserve don’t believe that they adhere to the same laws of economics that the rest of us live under. Vice president Cheney for example is famous for saying that deficits don’t matter. They may not matter to him but they matter to most of us. Deficits have to be serviced. Debt does have a cost. Eventually the house of cards will fall. Even if we can print money with abandon the piper has to be paid. And the piper is paid with inflation.

Inflation is not soley the rise of prices, this is a common misunderstanding. It is in fact the increase of the money supply. The “inflation” of the amount of money. For example imagine for a second that there is $100 in the universe. Now imagine if the Fed decided to print another $100 into existence. What happens to the original $100? It becomes half as valuable. That’s what’s happening now.

As the fed pours more money into the world economy each dollar we own is worth less. Of course there’s always a delay.

Inflationary monetary policy does work for some, the thing is it’s usually not you or me.

Lets say for instance that a cement company gets a piece of a construction industry bailout and is able to buy it’s cement at $5 a bag with citizen subsidized dollars, but 6 months down the line we decide that we want to build a porch. Well now there is much more Fed created money chasing the same amount of cement (and other goods.) Now I have to buy my cement at $7 a bag from the company that got the federal bailout because prices have gone up across the board. They "make" 2 bucks on the same cement just by virtue of the fact that they got the Fed created money first and had the right friends in Washington and New York. The cement company didn’t create any value. It was just able to short circut the money flow from Washington.

Many Americans are becoming increasingly aware that though they play fair their government and the institutions surrounding it do not.

We teach our children to be honest. We are honest in our business dealings. Yet the powers that be have little regard for fair play. In fact many of us feel as though the rule makers look at us as suckers, or worse.

Why is it that the three wealthiest counties in the United States according to Forbes Magazine , Fairfax County VA, Loudon County VA, and Howard County MD, just happen to ring Washington DC? It is because it is in the leafy suburbs of Washington that the wealth of this great nation is aggregated and then doled out to an immense bureaucratic class. We, the producers of the nation are the bureaucrat’s cash cows. They make the rules to benefit themselves and their agencies. They are paid handsomely by us to enforce rules and write codes that make our lives more difficult.

Between the Federal Reserve attacking the value of our savings by destroying the dollar and the federal government taking more and more of our depreciated dollars it is amazing that more Americans are not up in arms.

The thing is we have just gotten used to being abused. We know that the federal government is bigger than us and can squash us if it wants, so every April 15th we bow and then go on with our lives.

This year though lets take a moment to remember the string of failed Obama appointments, people who would have happily expanded the state if given the chance, who it was discovered hadn’t paid their taxes. Is it only we out in the hinterlands that pay our taxes? I swear if you are going to advocate for big government at least pay your taxes.

I personally, in case you haven’t figured it out by now, am not an advocate of big government. I would like to see a much smaller government in fact. I would like to see an end to the bailouts. I’d like to see an end to the never ending regulation that emanates from Washington. But most of all I’d like to see an end to the Federal Reserve and the havoc it creates in the economy.

There is a way to do these things believe it or not that in relative terms is simple. Reinstate a gold standard.

A gold standard does a few things.

First if a dollar is backed by gold one knows that there is real value in the money one owns. It is tied down. It can’t be inflated away by a central bank that wishes to pay back debt at depreciated levels, and have no doubt that is exactly what the Fed is scheming, at the expense of you and your savings.

It also restricts the growth of government, something that under the current dollar regime seems impossible. There is only so much gold in the world, therefore the government can only grow but so big. Or at least it will have to get the approval of its citizens who will have to fork over their gold based dollars to finance an expansion.

A gold standard will also encourage social security. Now I don’t mean the FDR created government program, I mean actual social security. People will be able to save for their future secure in the fact that gold has retained its value over 5 millennia. In Jesus’ time an ounce of gold would buy the average Roman a nice tunic and a pair of well made boots or sandals. Today that same ounce will buy a fairly nice suit and a decent pair of shoes. The gold has retained its value. Can the same be said of the US dollar over say a much more modest period of time.? A century? Definitely not. In fact since the Federal Reserve took control of the dollar in 1913 the dollar has depreciated to about 2.5% of its original worth.

Gold and its sister silver most importantly empower the average person who has the discipline to amass it. Gold rewards those who live below their means and think forward. It punishes those who make their living with economic slight of hand. Gold increases transparency and shifts power to everyday people. This is why the current system that is built on opacity and looks with derision at those of us who live outside of the Beltway or off of the island of Manhattan fights reistatement of the gold standard. (When of course they are concerned with it at all.)

Our founders wanted a gold standard for the same reason they instituted the right to bear arms in the constitution. A population with guns has power. Likewise a population with gold has power. If we really want change in this country. If we really want government to work as much as government can work we must insist on a new gold standard.

The socialists will hate it. The central bankers will hate it. The corporations in bed with the government will hate it. And this is why the people must insist upon it.

If we want to take our government back we must take our money back. The best way to do this is with a new gold standard.

Thank you.

Friday, April 10, 2009

The Revolution Begins to Mature

The Revolution Begins to Mature

Ron Paul is fond of saying that libertarians don’t need 51% of the population to go along with them to start a revolution. He’s right. Those who subscribe to liberty as a cause need only get, and this is a total guess but it feels right, about 20% of the American population to identify themselves as little l libertarians for things to really start rolling.

What’s amazing is that between 10-20% of the population already identify themselves as libertarian in relatively recent polling by Gallop.

We constitute a real force. Liberals and conservatives only beat us out by a few percentage points in the American electorate. Yet we are not given equal billing to say the least.

Equal billing is what I say we demand.

For years the left dominated the political discussion in this country. They controlled the media and the government for decades and so were able to marginalize conservatives for a generation. Then Reagan came and so many people began to openly identify themselves as conservative that a bone had to be thrown. Bill Buckley and George Will got a chance to speak. Now the conservative voice among a roundtable of liberals is standard fare.

I say that at the very least libertarians should insist that they too get a voice in the mainstream political discourse. If we are 1/5 of the population we deserve to be represented. Get David Boaz on This Week. Seriously email the morning political talk shows.

We must allow people the cover to identify themselves as libertarian in polite company. If a libertarians are represented in the non-fringe political discourse more people will identify themselves as libertarians at cocktail parties. It is at cocktail parties that much politics is done.

The thing is I truly believe that the number of people who are of libertarian disposition is much larger that 20% and is likely to grow in the very near future. The generation that has grown up on the net, that inherently understands the nature of self organizing systems, is libertarian. If we truly believe in the possibility of a libertarian society we must make the most of the next 10 years as this group begins to transition into positions of leadership in society.

Libertarians are mainstream. It’s hard for me to even write. But it’s true. All those years of building a movement are starting now to really pay off. As a relatively recent convert (the past 10 years or so) to the movement I have to say that much is owed the folks that laid the foundation for the movement we now participate in. To you guys, I say thank you.

Now is the time to get into the fray.

We must insist that we are given time to make our case just like the liberals and the conservatives in places where ideas collide. Especially if they collide in the media. We must insist that any serious political discussion is not serious if the libertarian voice is not represented.

It’s one thing to have magazines and websites that preach to the choir. We need to be out there making converts. We need to get to the libertarians who don’t know they are libertarians yet. We’ve kept the flame alive for years. Now is the time to ignite the brush fire.

Saturday, April 4, 2009

Audit the Fed. Dare we peer into the abyss?

Dr. Ron Paul has sponsored HR 1207 a bill that would open the Fed’s books to the public. As of this writing there are 55 other members of Congress who have agreed to co- sponsor this bill. It has even been introduced in the Senate.

This is a revolutionary development. If the public were able to see what it is the Fed is actually doing it might trigger widespread outrage. Wait, we already have that. Maybe we would actually see change, real change, not the Obama kind, and at least the beginning of the end of a deeply corrupt and evil system.

I don’t use the word evil loosely. But the Fed is probably evil. The Fed is an institution that was constructed for a small group of people who run the banking systems of the world. We are mere decorations in their world. In their eyes, it is they who are the masters of the universe. We might as well be ants. In the past we have been as easily crushed.

But there is something afoot. There is revolution in the air. Many people are asserting their God given dignity and insisting that they are in fact not ants, but human beings.

I am deeply encouraged by recent developments such as the increased momentum HR 1207 is enjoying on the Hill and the Tea Parties that will be held around the country on April 15th.

I am proud to say that I will be speaking at the Tea Party being held here in Thomas Jefferson’s home town, Charlottesville. There is talk of thousands of attendants. I think this is, perhaps not wildly, but perhaps very, optimistic. Yet my broker radar is going off and is telling me that this could actually turn out to be very big. We shall see.

In the mean time email your Congressperson and tell them to cosponsor Dr. Paul’s bill. Do this even if you know your rep will never do such a thing. Scare em’. Make them know we’re watching and that we will continue to do so.

http://www.youtube.com/watch?v=bW4YZ6R53yA

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Nick Sorrentino is the Editor of The Liberty and Economics Review and CEO of Exelorix.com a social media management company.