Wednesday, December 23, 2009

I'm reading this on Christmas

It was the middle of December, 1776. The winds and storms of winter had entered the fight on the enemy's side. Washington found little comfort from what remained of his army - if it could be called as such. They were exhausted, barefooted and ragged. Sickness, death and desertion had reduced his force to but 2,000 men; men whose morale was at the lowest ebb.

Thomas Paine was with the Army through all its trials and tribulations. Legend has it that he sat on a stone, immune to the winter's cold with his musket across his knee and wearing Washington's coat, and with a stroke of genius wrote on a drum head "The American Crisis."

Before crossing the Delaware and attacking Trenton on Christmas Day, Washington ordered these flaming words of inspiration read aloud to his freezing soldiers:

THESE are the times that try men's souls. The summer soldier and the sunshine patriot will, in this crisis, shrink from the service of their country; but he that stands by it now, deserves the love and thanks of man and woman. Tyranny, like hell, is not easily conquered; yet we have this consolation with us, that the harder the conflict, the more glorious the triumph. What we obtain too cheap, we esteem too lightly. Heaven knows how to put a proper price upon its goods; and it would be strange indeed if so celestial an article as FREEDOM should not be highly rated.

I have as little superstition in me as any man living, but my secret opinion has ever been that God Almighty will not give up a people to military destruction who have so earnestly and so repeatedly sought to avoid the calamities of war. Neither have I so much of the infidel in me, as to suppose that He has relinquished the government of the world, and given us up to the care of devils.

I once felt all that kind of anger, which a man ought to feel, against the mean principles that are held by the Tories: a noted one was standing at his door, with as pretty a child in his hand as I ever saw, and after speaking his mind as freely as he thought was prudent, finished with this unfatherly expression, "Well! give me peace in my day." A generous parent should have said, "If there must be trouble, let it be in my day, that my child may have peace;" and this single reflection, well applied, is sufficient to awaken every man to duty. I am as confident, as I am that God governs the world, that America will never be happy till she gets clear of foreign dominion. Wars without ceasing will break out till that period arrives, and the continent must in the end be conqueror; for though the flame of liberty may sometimes cease to shine, the coal can never expire.

Quitting this class of men, I turn to those who have nobly stood, and are yet determined to stand the matter out: I call not upon a few, but upon all: not on this state or that state, but on every state: up and help us; lay your shoulders to the wheel; better to have too much force than too little, when so great an object is at stake. Let it be told to the future world, that in the depth of winter, when nothing but hope and virtue could survive, that the city and the country, alarmed at one common danger, came forth to meet and to repulse it. Say not that thousands are gone, turn out your tens of thousands; throw not the burden of the day upon Providence, but "show your faith by your works," that God may bless you. I love the man that can smile in trouble, that can gather strength from distress, and grow brave by reflection. 'Tis the business of little minds to shrink; but he whose heart is firm, and whose conscience approves his conduct, will pursue his principles unto death.

I thank God, that I fear not. I see no real cause for fear.

Thomas Paine - December 23, 1776

Monday, November 23, 2009

What will happen in the coming years...

I feel like I have to be on the record about what is going to happen in the coming years if we as a nation do not change course.

The problem is very basic: We are spending money we do not have. This happens both as individuals and as a nation. Our national debt now sits at $12 trillion, is projected to climb to $14 trillion next year, and in the next ten years is projected to double to $24 trillion. The interest payments on our debt alone are projected to rise to $700 billion every year in ten years time - in other words, a stimulus plan every year with absolutely zero benefit (not unlike the current results of the economic stimulus). This is money flushed down the toilet.

Compunding the problem, we have $109 trillion dollars in unfunded liabilities looking into the future - these unfunded liabilities are Social Security, Medicare/Medicaid, and Prescription Drug benefits paid primarily to the Baby Boomers who are just now beginning to enter retirement. Basically, we (they) have promised the Baby Boomers these benefits, and we (they) do not know how they are going to pay for them.

This fiscal problem does not take into account Health Care "reform," which will only add to the national debt problem and the unfunded liabilities.

The Ponzi Scheme that is Social Security, Medicare, Medicaid, and all the rest will come crashing down in a dramatic fashion. The US is bankrupt already - we just don't see it yet.

I will not even address the problem of the many pension funds out there, both public and private, that require an increasing population and increasing workforce to remain solvent. These are Ponzi Schemes as well, and they will follow suit.

The current financial situation is unsustainable.

How is the US government going to solve this problem? Will they raise taxes? No, that will destroy the economy and result in the ending of their political careers. Will they cut spending? No, too many people are dependent on the government and making the necessary cuts to remain solvent as a nation would result in the ending of their political careers. So what do they do? They are going to monetize the debt. They are going to print the money needed. They are going to destroy the US dollar.

Think about it. Most people don't understand what the dollar really is - it is mysterious, confusing, and complicated - because it represents nothing. The dollar is worth what it is worth because people believe it is worth something. It is also worth what it is worth due to the simple economic equation of supply and demand. When the US government is trustworthy, the demand for the dollar rises and it is worth more - when the US government is viewed as untrustworthy, its value falls.

It is also worth more when there are less dollars in circulation. It is worth less when its supply increases. And boy, its supply has increased over the last year - by a whopping 130%!

The drop in the dollar has been steady and gradual of late - that is because foreign governments that own US dollars in their reserves, as well as US debts, no longer trust the US government to pay them back and are slowly moving out of the dollar and into other currencies and assets (gold). The Federal Reserve is also keeping lending rates at extremely low levels - when taking inflation into account, they are in fact lending money to banks at negative interest rates! These banks in turn either use this money to shore up their books, or use this money to make money in other assets, such as stocks, bonds, or real assets.

But lets return to the national debt and the unfunded liabilities problem. How are they going to make good on these debts? They are going to pay these debts off with printed dollars - they are going to pay them off with worthless money. The government could pay off the national debt today - just print $12 trillion and pay off the principal. But what happens? You have too many dollars now in the system, and the value of the dollar plummets and we see hyperinflation. Every dollar you have in your savings account, or in stocks and bonds, is now worth nothing overnight. We reset as a country to zero.

China holds the most US debt. They want to be assured that the US is going to make good on its debt and its word and pay them back with money that is actually worth something. They also hold many dollars in their own reserves. When China believes that the US will inevitably be forced to pay them back with worthless money, with printed pieces of paper, they will dump their dollar reserves and get whatever they can get for them. This will start the hyperinflationary cycle. This hyperinflationary cycle is on a razor's edge right now - first one to blink, China or the US, things could change dramatically overnight.

Once China dumps its dollars, other countries will follow suit, and amidst the carnage the US government will decide to just print more money to pay off our debts, because the dollar is crashing with or without the actions of the Federal Reserve and US Treasury. In other words, "When in Rome, do as the Romans do, and right now Rome is burning."

This scenario gives the government the cover to either blame China, or blame some other bogeyman of their choosing, for the fact that every dollar you own is now worth nothing, and every cent the government owes you in Social Security, or Medicare, or any other unfunded liability is now worth nothing. It wasn't their fault! It's a crisis! It's a catastrophe! It's the fault of the rich and powerful!

The system resets, and your net worth is whatever you own in real assets, because real assets rise with inflation. Stocks will rise, but likely not along with inflation. Bank interest rates may rise, your wages may rise, everything will rise, but if it's not a real asset, they will likely not rise with inflation, but behind it. And then, when it takes hundreds of dollars to buy a sandwich, the government will create a new currency, and a new system, and all debts will reset to zero.

Take what you will from this prediction. You respond as you wish - you are responsible for your own decisions or lack thereof, and in no way am I a financial advisor or life coach. But if you want some advice, here are a few common sense suggestions:
1) Pay off your current debts and buy real things you need. Whatever you do, don't borrow money to buy shit you don't need.
2) Invest in yourself, not in others that are not beholden to you - invest in skills, knowledge, and in relationships. Whatever you are doing, make yourself indespensable. Be the best at whatever you do.
3) If you are a Baby Boomer, plan on not retiring. Social Security will not be there for you, nor will any pension plan. Remember, the dollar is going to be worth nothing, and everything promised depends on the dollar. If you do begin your retirement in the next couple years, perhaps do what you've always wanted to do - learn those skills, and be useful and productive even in retirement. It never hurts to be productive.
4) Become self-reliant. Don't keep up with the Joneses, because the Joneses are fucked. Be frugal with your resources, and learn to live with less.
5) A penny saved may be a penny earned - but only if it was coined before 1983. Paper money is worthless - coins have some inherent value based on the metals it is stamped from. Electronic money is worth even less - it is a promise, and promises can be broken. Be careful where you invest your earnings - just riding out the storm and keeping a long-term view only works when the foundation - the currency - is on a firm footing.
6) Make your word solid. Make your handshake firm. When the US government finally is shown to be the dishonorable den of thieves that it is, people of honor will be needed to lead once again. Your word will be worth more than anything else.

Monday, October 12, 2009

Why Washington is Printing Money

I had a brainstorm today. I read a post on a gold website that basically said that a weaker dollar is a good thing because it creates a situation where the US can export more. In other words, it makes US-produced goods cheaper overseas, and thus more attractive and competitive.

In my time spent in New Zealand, a strong NZ dollar was viewed as a bad thing because NZ depended on exports and tourism. As the NZ dollar became stronger, their exports became more expensive and it became more expensive for tourists to spend money in NZ.

The reality of cheaper exports also made me think of one of the economic goals of Obama: We need to make things again.

With a strong dollar, why aren't we making things anymore? Because our cost of labor is too high, and thus manufacturers move overseas where labor is cheaper.

With a weaker dollar, our goods become more attractive.

Why? Because with a weaker dollar, we pay our workers the same salary and benefits in cheaper dollars. In essence, it is a pay cut without having to admit it is a pay cut, because while the workers are paid the same dollar value, the purchasing power of those dollars is diminshed.

Cheaper dollars also can lessen the impact of the unfunded liabilities of Social Security and pension funds for retirees. With a weaker dollar, we pay our retirees the same benefits in cheaper dollars. In essence, it is a cut in benefits without having to admit it is a cut. Because those dollars cannot buy the basic necessities, retirees will have to work longer instead of retiring and enjoying "the good life."

Obama and the Federal Reserve are cowards, because they are destroying the dollar to do what needs to be done, which is this: Unions need to renegotiate their contracts to make the US competitive again, and retirees need to work longer before they retire and collect benefits. A weaker dollar accomplishes these things without having to make the tough decision, and as a result all of our savings are destroyed as well.

This is what the economic wizards in Washington DC are doing. It is evil. It is immoral. And it is invisible to the public at large. When invisible, and complex, those unaccountable few who make these decisions will not have suffer the political consequences.

Friday, August 7, 2009

Most People Don't Care... Enough

I had an interesting discussion with a good friend of mine yesterday. I've been pretty frustrated of late with the people of my country. People are starting to wake up to what is going on, but most still insist to keep their vulnerable asses in the air and their heads buried in the sand. My little experiment on Facebook in trying to warn family and friends proved fairly futile - I think after a time most just sent me to the back of the bus, not wanting to hear what I had to say anymore. That's fine. But don't say I didn't warn you.

I explained that the conclusion I came to - for the apparent ass-end-up-head-in-sand paradigm - is that most people just don't care. My friend challenged me on this conclusion, and I better explained my thoughts with this: Most people don't care enough to be challenged and know that what they believe is true.

People care. They just don't care enough to want to know if what they believe is right. This holds true across the political spectrum and across issues. Most people formulate their "world-view," whatever that is, and they cling to it blindly and plug their ears and say "na-na-na" when any challenging arguments or thoughts come their way.


Thomas Jefferson once said: "Question with boldness even the existence of God; because, if there be one, he must more approve of the homage of reason than that of blindfolded fear."


I, unlike most people, want to be challenged. I want someone to debate with me, because I want to be on the side of what is right and true. I used to be a "liberal democrat," indoctrinated into the leftist fold via the public school system and my parents' foundational belief that rich people took advantage of the poor - that making a profit was always a result of ripping people off - and thereby they should be punished. My father also worked for the government, so bigger government was a good thing to him.

For a long time I was safe and happy with my leftist world-view. When I entered college, I decided that I should find out what the other side was saying, such that I could counter their arguments. Know my enemy, I thought. So, I started watching Rush Limbaugh on television. And a funny thing happened - I started to realize that the other side was right.

The Left appealed to my emotions. The right appealed to my reason. And if given a chance, reason will win out every single time.

It's hard to come to the realization that everything you have believed to be true isn't - that you have been lied to, that you have been manipulated, that you have been scammed. Most people do not allow themselves to be vulnerable enough to allow their beliefs to be challenged by themselves and their own critical thoughts, much less the ideas and opinions of someone else. It is very safe and secure to believe you have everything figured out - that you are right and everyone else is wrong - that you are one of the few and the enlightened, or the chosen, or the saved, and everyone else is damned.

The same thing holds true for my religious beliefs. Growing up, I was raised a Christian, but really only on Sundays. Faith did not have much to do with my ordinary, everyday life. In college, I started to explore my faith more and more. After graduation and in striking out on my own, I committed myself more and more to the Christian Faith, devoting my time, money and talents as I was supposed to do. In taking the chance to live and work in another country, I devoted myself fully to my faith, finding a church that finally seemed to "get it," and really working to build "His Kingdom" here on earth. It was great - I felt I was doing something important and a part of something real. All those doubts and questions - am I doing God's Will, why am I struggling, is it me, do I pray enough, do I know enough, am I a good enough Christian, what is holding me back from being blessed by God, is it the church, is there a perfect church for me out there? - I finally found my place. And it was great. For awhile.

Well, circumstances in my life challenged my faith - challenged it right to its core. Once again, reason won out over emotion - reason won out over faith - and I am no longer a Christian. It was very difficult, and again I felt I was scammed, that I was lied to, that people used me for their own ends. It was infuriating, and fortunately I was able to climb out of that very dark place and be at peace with God.

Most people will definitely not allow their faith to be challenged. Their faith makes them feel secure, and safe, and gives them hope for a brighter day in the future. That's fine - I feel the same as well, but I base my feelings of security and safety and hope on reason - on beliefs that have been challenged - because I care enough about knowing what I believe to be right and true. I am confident in my right beliefs through reason - not faith in falsehoods.

Most people don't care enough. In fact, they care so much for the opposite - clinging to their world-views and religions - that they outright ignore or attempt to silence opposing views. These people are dangerous.

Please, people - care enough to allow yourselves to be challenged - seek it out. There is a Truth, and it matters. Don't believe the Lies.

Friday, March 6, 2009

Expansion of the Fish-Giving-Teaching Parable

You know the old parable: "Give a man a fish and he eats for a day. Teach a man to fish and he eats for a lifetime."

We're going to take this further and create a parable for Capitalism vs. Socialism.

Let's say a man is taught how to fish, and he starts fishing in his little village. He gets really good at it, and has more than he needs to feed his family. Some of this he chooses to give to his neighbors who have fallen on bad times. Some he trades with local farmers, or for other goods.

But man, this spot is a jackpot - he can't keep the fish out of the boat he is so good at it. So, he decides to hire some of his neighbors to fish with him. But not everyone in the village is good at fishing, or has any ability to be good at it. Some are good at cleaning the fish. They use everything. The local farms start producing more because of the natural fertilizer.

He needs another boat and oars. The local carpenter in town builds it for him. The local carpenter needs to focus on building the boats, so he hires people to go find the wood and mill it, and more people to help him put the boats together. Nails are needed, and pitch. Other businesses expand, blacksmiths and pitch producers.

The fisherman needs more nets and sails, so the local seamstress starts weaving and repairing the nets. She needs help weaving the rope to make the nets, so she can focus on making the nets.

The fishermen need new clothes - they wear out with the hard work, and get really smelly. Another local seamstress starts making clothes, and innovates to create pockets for tools, or special gloves to protect their hands against the sharp fish fins and rope burns. Other fishing villages hear about these advancements and they start exporting the clothes. A washing service is started, to wash the clothes.

The fish keep coming. People he trained man their own boats. Some start their own business fishing. They begin to export the fish, selling them to distributors that transport them to other villages in the area and beyond. Wagons are needed, as well as stables for the horses. More and more people are employed, taking care of horses, fixing and making wagons.

The abundance is so great, that luxury goods start coming into town. Some creative people start making art, or music, or write plays to perform, and the people pay to see them.

The fishing village grows to the point where it needs a government - it needs an elected body to protect the people from criminals and thieves, to enforce contracts, and to maintain the roads coming and going out of town. A small tax is levied on everyone to pay for these services.

The fisherman who started it all is rich, as well as those who built their businesses at the onset of the fishing boom. But there are still poor people too - people who just don't have any useful skills, or who are sick or injured, and the people of the town continue to help them - giving them a fish so they can eat for a day, because they just can't take care of themselves.

But then the local governmental body doesn't think it is fair that the fisherman is so rich when there are those in the town that are so poor. So they decide to tax the fisherman more, because he has more.

The fisherman has to cut back on his business, because it just doesn't make sense with the higher taxes. Those cuts travel down through the system, forcing layoffs at the other businesses dependent upon the thriving fishing business. The amount of fish produced is reduced, and thus less trade.

Those people who got laid off need help. There are more people than before that need their fish for a day, and the governmental body doesn't have enough taxes from the rich fisherman to pay for it all. So, they raise the tax again on the rich fisherman, and on some of the other richer businesses in the area.

Again, it doesn't make sense to keep more employees than the fisherman and the other businesses can afford. More layoffs, and more people in need.

The governmental body is now being pressured by the poor for food and services. They raise taxes again. More layoffs. More people in need. Less business. Less production.

Soon, the fisherman is alone in his boat again. Everyone's taxes are high to pay for all the poor.

Today, the village is a ghost town.

Capitalism vs. Socialism - Capitalism creates, Socialism destroys.

Monday, February 23, 2009

The New Declaration of Independence

I thought it would be fun to slightly alter the Declaration of Independence of 1776 - I basically went through it and deleted what did not apply to the situation we find ourselves in today. I did not add anything that did not already exist in principle in some form in the original document (for example, I did not add the tyranny of the Federal Reserve in debasing our currency). All additions/changes are in bold. So read and enjoy and be amazed how much this applies to today!

When in the Course of human events it becomes necessary for one people to dissolve the political bands which have connected them with another and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shown that mankind are more disposed to suffer, while evils are sufferable than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security. — Such has been the patient sufferance of these States; and such is now the necessity which constrains them to alter their former Systems of Government. The history of the present United States Federal Government is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these States. To prove this, let Facts be submitted to a candid world:
  1. The Federal District Courts have refused its Assent to Laws, the most wholesome and necessary for the public good.
  2. The Federal District Courts have forbidden State Legislatures to pass Laws of immediate and pressing importance, unless suspended in their operation till its Assent should be obtained; and when so suspended, it has utterly neglected to attend to them.
  3. The Federal Government has erected a multitude of New Offices, and sent hither swarms of Officers to harass our people and eat out their substance through increased taxation.
  4. The Federal Government has combined with other nations to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving its Assent to their Acts of pretended Legislation.
  5. The Federal Government has imposed Unconstitutional Taxes on us without our Consent.
  6. The Federal Government has suspended our own State Legislatures, and has declared itself invested with power to legislate for us in all cases whatsoever.
  7. The Federal Government has plundered our seas, ravaged our coasts, burnt our towns, and destroyed the lives of our people through Environmental Legislation.
  8. The Federal Government has excited domestic insurrections amongst us, and has endeavoured to bring on illegal aliens from beyond our borders.

In every stage of these Oppressions We have Petitioned for Redress in the most humble terms: Our repeated Petitions have been answered only by repeated injury. A Federal Government, whose character is thus marked by every act which may define a Tyrant, is unfit to be the ruler of a free people.

Nor have We been wanting in attentions to our Elected Federal Representaives and Senators. We have warned them from time to time of attempts by their legislatures to extend an unwarrantable jurisdiction over us. We have reminded them of the circumstances of our founding. We have appealed to their native justice and magnanimity, and we have conjured them by the ties of our common kindred to disavow these usurpations, which would inevitably interrupt our connections and correspondence. They too have been deaf to the voice of justice and of consanguinity. We must, therefore, acquiesce in the necessity, which denounces our Separation, and hold them, as we hold the rest of mankind, Enemies in War, in Peace Friends.

We, therefore, the People of the Sovereign States of America, appealing to the Supreme Judge of the world for the rectitude of our intentions, do, in the Name, and by Authority of the good People of these States, solemnly publish and declare, That these Sovereign States are, and of Right ought to be Free and Independent States, that they are Absolved from all Allegiance to the Federal Government, and that all political connection between them and the United States of America, is and ought to be totally dissolved; and that as Free and Independent States, they have full Power to levy War, conclude Peace, contract Alliances, establish Commerce, and to do all other Acts and Things which Independent States may of right do. — And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our Lives, our Fortunes, and our sacred Honor.

Sunday, February 15, 2009

My Economic Recovery Plan

I believe we a polishing a turd - a really huge, smelly elephant turd - when considering the Obama Economic Recovery Plan (OERP, which sounds a lot like vomiting). This country is fundamentally flawed in many ways, and before I get into my fixes for the economy and the country, we need to identify the reasons for this financial collapse:
1.) Personal irresonsibility - spending money we don't have, or making mistakes with the expectation that someone else will fix them
2.) Enabling "sloth" - government welfare programs that guarantee no pain to anyone, no matter how bad their personal decisions, with no expectations of getting off the government dole
3.) A "no one fails" mindset - all kids should get As, all kids should go to college, everyone should have a house, everyone should be able to buy what they want whenever they want it, etc. etc. - when no one fails, no one succeeds. When no one is a failure, no one can be considered excellent
4.) Dumbing-down the society - related to #3 - if we do not learn from history we are destined (or cursed) to repeat it
5.) Envy and class-warfare - the classes have been divided, and the producers in this society are demonized while the consumers are given the status sainthood
6.) Moral relativism - when there is no right and no wrong, anything goes - all bad behavior must be explained and understood, rather than discouraged or punished
7.) Feelings are valued higher than reason and rationality
8.) The Environmentalist Movement - protecting the environment in a reasonable way has been replaced with "people are evil and a blight" mindset, and the planet is somehow to be valued above everything else in its purest, untouched form - it has gone from good stewardship to worship
9.) Social Engineering and Manipulating Capitalism - Capitalism is a force of nature, it is natural law, and self-interest is a good thing (as opposed to selfishness, which is something else entirely) - government cannot tinker with this system in an effort to cleanse it of greed, selfishness, or to encourage what it considers "good behavior" and not expect that natural force to respond in ways unforeseen
10.) Lack of personal and economic freedom

Okay, that might be enough to generalize what got us into this mess. Now, to my fixes:
  1. Return to the US Constitution. Any Federal program or department not granted authority in the Constitution would be immediately eliminated and turned back to the states to do with as they please. This would amount to massive cuts in the Federal Government, and an increase in local control over government - in other words, many of these programs and jobs would not disappear, they would just return to the state or local level where they belong. As another example of what this would mean, the "police actions" since the Korean War would no longer be Constitutional - the Congress is the only Federal body that has the authority to declare war - so Congress would have to decide if the wars in Iraq and Afghanistan are worthy, and if not, troops would be pulled home. Because the Federal Government is so far beyond its authority, and is essentially unconsitutional as it stands today, the ramifications of this fix could be discussed for some time, but to sum it up - the Federal Government would be lean and focused and within its constitutional authority, and all other powers would be delegated to the individual states to do with as they please.
  2. Some results of #1 would be: elimination of federal welfare programs, phasing-out of Social Security and Medicare, elimination of many federal departments including most notably education, paying down the national debt.
  3. Repeal the amendment to the Constitution allowing the federal government to confiscate money via income taxes. The income tax was originally instituted to wage a curent war, and was supposed to be abolished after the war was won (it was either the Civil War or WWI). The Federal Government is authorized to raise money via tariffs and levies - basically either tariffs on imports, or something closer to a national sales tax. The Federal Government has no business in knowing how much money you make, stealing it from you before it is in your hands to give to someone else, and manipulating your behavior via the tax code.
  4. Everyone would pay taxes, rich and poor - everyone should have a stake in the Federal Government, and not just a stake in how much they receive in handouts. Today, 50% of the country does not pay income taxes. There is no way those people are going to vote for an efficient government - they are going to vote for whoever gives them the most money.
  5. Remove all roadblocks to private industry. Beyond legitimate environmental concerns (such as air and water pollution that can travel across state boundaries) the Federal Government should not be placing restrictions on business and industry. Because of Environment regulations, it is impossible to get anything done in this country anymore - we can't build roads, or bridges, or drill for oil or mine for coal and steel, without jumping through a bunch of hoops and paying off a bunch of do-gooding environmentalist groups and causes. There is no way that we could build the Interstate system today. A new oil refinery hasn't been built in over 20 years in the country. We are stretching the capacity of our energy production to its limit, and we see brown-outs. This and many more examples are because we cannot get anything done at all in this country because of extreme environmentalism. If you want a true boost to the economy, we need to start making things again, and all efforts would be made to lower or eliminate restrictions to industry. THAT would put people to work, and the cost of doing business would be dramatically lessened.
  6. The power of Unions will be lessened, because their government backing will evaporate. Workers have a right to Unionize, but if the private business wants to fire them all and hire non-Union workers, that is their right as well. As it currently stands, Unions expectations are unrealistic and create a situation where American businesses cannot compete. If the Unions did not have Big Government backing them, and the negiotiation table was level, perhaps more reasonable agreements will be adhered to, and we wouldn't have major companies going bankrupt because of past agreements, namely pensions, that put off the day of reckoning into the future.
  7. Student loans would be targeted, if they even exist. We have a situation today where everyone goes to college, and for things that aren't marketable, primarily because the government gives them free money to do so. When your own money is not at stake, you make bad decisions. And when schools are dependent of government dollars to operate, they begin to compromise success for funding and social advancement. If you choose to become a history major, you are not guaranteed a job in that limited field. If you choose to become something marketable, such as an engineer, your investment will likely pay off. You do not need to go to college to succeed in this country - we need more entrepreneurs and less workers. We need more people who can make things or fix things than those who push papers around.
  8. Public education will return to the states, where it belongs. If those schools want to lower standards, or socially engineer their students, that will be their decision, but each state will have to live with the consequences of either focusing on true success or the competing social advancement. States that do not strive for excellence will suffer the consequences in the marketplace, and will not be able to compete with states that do.
  9. The Federal Reserve would be abolished, and a gold-standard (or some equivalent, perhaps energy) would back the US currency. Our economy is only as sound and stable as our currency, and the Federal Reserve has been reckless in tinkering with the money supply and economy through printing its fiat currency. Nixon took us off the gold standard with the understanding that money would be expanded and contracted as the economic grew and shrunk (Keynesian Economics), and government spending would be responsible and live within its means (not go into debt). As we have seen, we cannot trust government to be fiscally responsible, so the Federal Reserve - the enabler of bad fiscal policy - has to go and a sound currency needs to return. You need to have a solid foundation to take risks with your money and invest, and the volatile value of the dollar, and its coming hyperinflation, is the single greatest threat to our prosperity.
  10. The Federal Government's first responsibility is to protect its people from foreign enemies, and to protect its borders. Just as I wouldn't tinker with the free market system, I would not tinker in international affairs. Free trade creates allies, and an exchange of both goods and ideas. I would focus on military strength, but would not use it unless the country was threatened. Nothing but the best and brightest would be allowed into our country. I would avoid entangling ourselves in international affairs and conflicts. I would remove the US from the United Nations, which is a worthless and corrupt agency, and focus on individual relations between sovereign nations. I would trade with free and democratic nations first, and totalitarian regimes would not be supported but would be penalized with high tariffs.

This "fix" on its face seems quite radical and extreme, but in reality it is just returning to the founding document of this country, the US Constitution, which delegates most powers and responsibilities to the individual states. It is the Unites STATES of America! The autonomous states were intended to be "laboratories of democracy" and could compete in the free market just as companies do, and the best system would arise from the competition. The only role of the Federal Government in the relations between the states would be to protect the free movement of people and goods across state borders.

You cannot have a free and prosperous society and country if the rules in the rulebook are continually changed and reinterpreted. Returning to the Constitution is the only thing that will save this great country from economic and political collapse.

Thursday, February 12, 2009

The Next Great Depression - The Silver Lining

I am generally a pessimist, if you haven't noticed. I have been beating the doom and gloom drum for some time now, and I have been proven right with this developing economic crisis. Let me be clear: we are in no way clear of this mess, and in fact it is just the beginning. This recession will deepen, and will become a Depression - primarily because we are doing all the same things that have brought about this crisis. Obama and the Democrats are spending money we don't have, and like those individual irresponsible American idiots deep in debt they are likewise frittering it away on luxuries that will not stimulate the economy. It is eternally frustrating.

But there is a "silver lining" to this crisis that I am pretty excited about - I have used the word "reckoning" for some time which literally means making things right - it won't be all bad. Here are my optimistic and postive thoughts on the crisis (some serious, some not-so-much, you decide):
  1. The Left-leaning areas of the country will fail first - the big cities, California, the Northeast - it will be great fun to see the cities descend into chaos and anarchy as people can't get the things they need and expect and feel they are entitled to - dig a moat around the major cities and we'll all be fine! In the information age we really don't need big cities anymore, so screw 'em! We'll see how long they hold fast to their liberal idealism when the shit hits the fan and it's do or die time.
  2. Along the same lines, the current welfare system is just not sustainable under an economic crisis. The worthless bastards that have been leeching off you and me for a few decades now will finally be allowed to fend for themselves, and they'll kill each other doing it. Fantastic!
  3. Illegal Immigration will cease - Americans will not allow these people to steal American jobs anymore. This is kind of sad, because most of the illegals are probably great people, but a lot of crime comes with them with the bad apples, so good riddance.
  4. Our culture will refocus on what is important. All the trivialities will fade away. First things first will return, because it will be necessary to survive. Not to say we won't have distractions, but that's what they'll be - distractions, not the focus. Maybe American Idol will survive, but not much else will.
  5. Sports "stars" will no longer be paid huge salaries to play a game. That will be one of the first things to go. If people can't afford to go to the games, and companies cannot afford to sponsor them, it all trickles down to the talent. Related to #4, maybe the inner cities will refocus on education and values when they see they cannot make millions if they practice really hard at the basketball court.
  6. Likewise, Hollywood actors and actresses will not command huge salaries. These huge salaries are just not sustainable, when it is all dependent on a prosperous and paying public.
  7. Kids getting away with all the bad behavior that they do in public today will not be tolerated. Remember the days when you could yell at someone else's kid for acting like a jackass? Well, those days are going to return, because guess what: it won't matter if you get sued, because no one is going to have any money!
  8. Big payout lawsuits will dry up - no one has any money to sue for!
  9. HGTV will go off the air, thank God!!! No home equity loans to do lavish improvements.
  10. People will say it like it is - Political Correctness will be laid to rest - if you're an idiot, you will be called one. If you're lazy, you will hear about it. If you're a no-good SOB criminal, you will meet your maker. People will not tolerate flaws of character when things aren't so comfortable and cushy anymore.
  11. Global Warming nonsense will no longer be of such importance - when you are struggling just to put food on the table and keep warm, I don't think you're going to give a shit if your lawnmower burns gasoline.
  12. The dollar is going to collapse, so everything will reset - no national debt, no personal debt, no personal savings. What you have right now in physical assets is all that you will have, so stock up if you can. People are going to want to get drunk, so invest in liquor. And guns. Lots of guns.
  13. The bleeding-heart people who got us into this mess will be unarmed, because they hate guns, so they will not be a problem whatsoever.
  14. If the government somehow survives as it is currently constituted and continues down the path to socialism and the USSA, individual states (Texas first) will secede from the USSA to escape the rising taxes and liabilities of Social Security and Medicare. So, we'll have somewhere to escape to with like-minded people! And this new country will be filled with young, hard-working, armed men and women so no one will screw with us!
  15. Real work will be valued - not sitting behind a desk punching away at a keyboard, but getting out there and using the hands God gave us to build things, and fix things, and maybe beat the shit out of dangerous people!
  16. Family will come first, because that's all we'll have, and it will be enough.

How's that for looking on the bright side of life! This list will probably grow as I think of more things that excite me about the Next Great Depression.