Will Grandma Have to Eat Cat Food? or Hand Me the Ammunition!
By ChrisThis morning I received a few calls from people who I didn’t know. They only knew me from the recent opinion submission I sent to the Hudson Star Observer this week. They called me to congratulate me on writing the letter. It was short, sweet, and right on for these times. One gentleman asked about joining the St. Croix GOP and I bluntly said that the GOP was part of the problem. I didn’t say I wouldn’t support them, just that we have far to many RINOs. Another gentlemen commented on the last line, “Revolution has occurred for far much less a reason.” In fact, it has. Last evening someone told me that there are now around 20 states that have or recently introduced resolutions meant to re-affirm the rights guaranteed to state governments in the Ninth and Tenth Amendment to the Constitution. So thank you for calling me. All I ask is for you too to get involved with educating everyone about the largest grab of liberty in the history in the modern world. This is not just the GOP against the Dems, it’s ALL government tyranny against the citizens and their rights afforded them in the United States Constitution.
The link is here and contents are below:
Government can’t fix issue
To those of us who have fallen for the rapacious vagaries of the politician, the government economist and various soothsayers; why are we wondering why prices do nothing but steadily ascend, year after year, to the point of grandma having to eat cat food?
Whenever and wherever “fiat” money has been introduced, from France in the 1790s to America in 2008, a steadily debased currency and a steadily degraded economy follow. The degrading economy comes in the form of a rapidly escalating financial crisis which we here touted now, and then a severe depreciating currency. We are experiencing both today. The yield on a treasury note today is nearly zero percent.
Fiat money means that currency’s usefulness is not a result of any intrinsic value or guarantee that it can be converted into gold or another currency, but instead from a government’s order that it must be accepted as a means of payment.
This fundamentally collectivist approach promised that from nothing there would be something or as even Keynes would later put it, “from stone there shall be bread.” Where does everyone think the current bailout money is coming from? So far the obligations for the Treasury, the Federal Reserve, and other government agencies obligations or guarantees associated with the financial crisis stands at a staggering $8.3 trillion. This amount is equivalent to over 50 percent of the nation’s GDP.
Throw that on top of the $61 trillion Social Security and Medicare shortfalls and we have a liability of around $230,000 for every man, woman and child currently in the United States. That’s nearly a million dollars for a family of four. We need to wake up to this realization and rebel against the ideology that preaches that government can solve our financial crisis, let alone any other. Alas. It’s too late. Far too many have been deceived into thinking that the government can take care of them forever.
Revolution has occurred for far much less a reason.
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What a great letter Chris. As for the monstrous spending bill that just got rammed down our throats, I couldn’t get a straight answer out of either Russ Feingold’s office or Herb Kohl’s office. And what was my intricate question that they couldn’t answer? How are we going to pay for all of this?!
An excellent letter Chris. And to Curt’s question I would merely add, firstly, who? Who is going to purchase this massive amount of debt that is to be issued by the U.S. Treasury ?
The answer is that they hope several Arab states, England, and perhaps China, will step forward and purchase this debt. Several trillion worth all told.
Problem is, Germany just tried to sell (three times) treasury backed securities – no one would bite…
If there are no buyers, and the legislation is binding on the dispursement side, then it must be monitized which means simply that the Fed will create hundreds of billions of dollars out of thin air… Do you think there was a clause in this 1000 plus page document that said, if you cannot find someone to buy the debt to pay for this you cannot monitize the debt? Ha – no way!
The Chinese have stated very recently that they have had enough of our spend-like-drunken-sailor mentality; warning us about absolute debasement of the dollar if we proceed. If we do find customers for the debt, our children will have to cough up the principle down the road. Our legislators are throwing our children to the financial wolves.
If we monitize the debt, this is by definition massive inflation which will be followed by general (staggaring) price rises. Of course, the natural reaction in that case will be for the Fed to raise interest rates, but the degree to which rates would have to be raised given the size and speed with which this inflation would be taking place is unfathomable, and would make the Carter years seem like an objective to get back towards!
There are times when doing nothing is a profoundly correct choice. Now is one of those times, the government should do nothing except get out of the way which means permanent lowering of tax rates and ceasing to insist that it must act.
We cannot credit card our way out of this problem, it is what got us in it in the first place.