The Welfare State Corrupts Absolutely

What’s that? The government is promising to cap our out-of-pocket expenses, require coverage for preexisting illness and free preventative care, and extend the same deal to absolutely everyone? And this will have no negative consequences whatever, such as limits on what we can buy or enlargement of the budget deficit or higher taxes for the middle class — but it will actually save money? Oh thank you, government!

This irresponsible mindset, which is similar to a not-very-inquisitive child’s, is what at least two generations of government intervention in health care — and the welfare state in general — have produced in the American people. Thus the welfare state retards moral and intellectual development. We expect the State — our surrogate parent — to make it all right. The demagogues we call politicians are happy to feed this attitude because it provides occasions for the expansion and exercise of raw power while seeming, like Santa Claus, to give away free goods. Of such things long political careers are made.

Free medical care does not exist yet the public demands it and the politicians legislate it.

Economic Collapse Permanently Destroys Middle Class Jobs

When the economic tide goes out, all boats sink into the mud.

Too many people were goaded into illusory occupations by tax subsidies for higher education, government (rather than market) demand, and other distortions like the credit-without-prior-production of the central bank. Political pandering and central planning replaced the natural balance of an economy growing organically through the honest signals of the price system.

As long as there was enough optimism and ignorance to sustain the illusion, the distortions only grew larger.

Though the ignorance largely remains, there’s no more blind denial left to sustain the burden of all that wasted effort. If your job disappears, it may not come back.

This time it really is different.

Business are cutting back and will continue to cut back until the happy days of yore return. Don't hold your breath.

We're Governed by Callous Children

This is historic. This is something new in modern political history, and I'm not sure we're fully noticing it. Americans are starting to think the problems we are facing cannot be solved.

Part of the reason is that the problems—debt, spending, war—seem too big. But a larger part is that our federal government, from the White House through Congress, and so many state and local governments, seems to be demonstrating every day that they cannot make things better. They are not offering a new path, they are only offering old paths—spend more, regulate more, tax more in an attempt to make us more healthy locally and nationally. And in the long term everyone—well, not those in government, but most everyone else—seems to know that won't work. It's not a way out. It's not a path through.

Government does not have solutions to these problems. The problems are so enormous that they may be insoluble but government thinks it can spend its way out or bomb its way out. It can't.

The Network Revolution Versus the State and Its Allies

We see hierarchical institutions challenged, and soundly beaten, on every side by the new network culture.

Cops are terrified not only that activists are Tweeting their movements at demos, but that — in a world of ubiquitous cell phone cameras — they’ll be on Candid Camera next time they pull a Rodney King. Every time a surly drunken cop assaults a bartender, or cops publicly urinate during a Police Day parade, they wind up on YouTube.

Large organizations of all kinds are learning what the Streisand Effect is all about: when institutions attempt to suppress embarrassing information on the Web, their very attempt to suppress it winds up attracting publicity beyond their worst nightmares.

It's us (we the people) against them (government). This article points to some successes by us.

Nancy, Are You Serious?

The Speaker is certainly correct that federal Congress has certainly legislated on "many aspects of American life." In fact, there is a lot more at stake with the Commerce Clause than "just" our health care — the entire authority for economic central planning rests on this single clause. I strongly disagree with Pelosi that the Constitution allows Congress broad power in this respect. First, the exact language from my job description in Powers of Congress, Article I, Section 8, Clause 3:

"The Congress shall have Power... to regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes."

Pelosi believes that she has the power to "regulate Commerce... among the several States" and I suggest that in blunt language she instead literally means to "control the economy... of the States." Pelosi and her ilk accomplish this by confusing the modern meanings with the legal meaning and contemporary context of the founders.

Ms. Pelosi could not believe she was asked if her health care legislation is constitutional. "Are you serious? Are you serious?", she responded. Well, yeah. We are seriously wondering where she got the idea that she is the master and we are the slaves. Not from the Constitution.

Rats! City to Pay for Informing on Tax Cheats

Chicago and Cook County residents aren’t the only ones about to get shocking tax news; the city is debuting a “tax whistle-blower” plan that could turn neighbor against neighbor in Chicago’s business community.

The folks at city hall will pay cash bounties to informants who turn in business tax cheats around the city. The reward would amount to some sort of percentage of the tax money that the city recovers.

"It's just another way of bringing people into compliance," Revenue Department spokesman Ed Walsh told the Sun-Times.

1984 anyone? The tax schemers in Obama's former digs are pitting residents against each other by inducing them to rat out their neighbors. We wonder if this concept will catch on nationwide. The politicians are finding fewer people to gouge as unemployment rises and raising taxes on Kool-Aid and Nehi sodas does not sit well with their constituents.

Resigning from the Empire

Expressing his frustration with an occupation in Afghanistan that is doomed to fail, citing similarities between the U.S. effort and the failed Soviet occupation of the same country, reminding us that the futility is reminiscent of American involvement in Vietnam, calling the entire project a “complex, opaque and Sisyphean mission” that is strategically bankrupt to the core, Matthew Hoh has submitted a compelling and bold letter of resignation from his post as the Senior Civilian Representative for the U.S. Government in Zabul Province. The whole document is well worth reading.

The PDF link is here. More info here.

For the 2010 Census: Name and Address Only

Our Constitution is written in clear, understandable English. Consider the census provision. "The [first] actual Enumeration shall be made within three Years after the first Meeting of the Congress of the United States [March, 1789], and within every subsequent Term of ten Years, in such Manner as they [Congress] shall by Law direct." This allows Congress to count us, but only count us. The operative word, "Enumeration."

How then can we help Congress? By giving census officials your name and address, thereby counting you, but nothing more. By doing this simple task, you assist Congress and census officials fulfill their oath-taken duties "to support this Constitution."

We have agreed to be counted but the license ends there.

Government is the enemy. Do not willingly divulge information to the enemy just because they demand request it.

Macroeconomics for the Keynesian Dummies in Government

The Anglo-Saxons have forgotten what makes a successful economy. The Chinese have remembered.

Just look up Warren Harding on Wikipedia. The first entry you will find is not the 29th president of the United States of America, but a rock climber with the same name. But what do you expect? History is nothing but a long list of disasters in chronological order. Historians love calamity. And they reserve their highest accolades for those who cause them. The same is true in financial history. Those who make it big are those who make it worse.

It is safe to assume that no one working at the Federal Reserve or at the White House has a picture of Warren Gamaliel Harding over his desk. Yet, if American presidents were ranked on the basis of how well they faced up to financial disaster, Warren G. Harding might be somebody. His handsome face would be carved on Rushmore. His likeness would grace the $100 bill. Harding was the last American president to deal honestly with a major financial crisis. Every president since has tried to scam his way out of it.

Warren G. Harding was the last President to use common sense in dealing with a recession says Bill Bonner.

The Federal Reserve System Repays the Treasury Most of the Interest It Collects From the Treasury

There is widespread ignorance regarding the FED. If you want to understand how the FED works, and what the economic implications are, read these free books on the FED, written by Murray Rothbard, a free market economist who really did understand the FED. Begin here: The Case Against the FED. Then read his textbook on money and banking, The Mystery of Banking. Then read his history of the origins of the FED. See Part 2 of his History of Money and Banking in the U.S.

Finally, read the booklet published by the Federal Reserve Bank of Chicago, Modern Money Mechanics. The booklet shows how the fractional reserve process works. It's straight from the horse's mouth! (It has been out of print for many years. Hooray for the Web!)

OK, class. Gary North presents your reading assignments for this week.

Money is You

Do you see where this is going?

Are you beginning to understand that it is not dollars that are being sold, or bonds, or agency debt, or treasuries, or anything like that.

Where is your government going to get the money to pay off its creditors?

It is not pieces of paper or contracts or computer bits that are being sold.

There is only one thing that the government has to sell.

Governments have only one asset that they can use as collateral.

Your leaders are selling you.

The next time you are about to cast a vote for the "lesser of two evils", replay this video. You might not want to support tyranny by encouraging it with your participation.

How they are turning off the lights in America

How did this happen in America? America was once the envy of the world in its industrial capability. America's industrial capacity built America into the most productive nation the world had ever known. Its standard of living rose to levels never before accomplished. Its currency became valuable and powerful, allowing Americans to purchase imported goods at relatively cheap prices.

America grew because of innovation and hard work by the pioneers of the industrial revolution, and because America has vast natural resources. A great economy, as America once was, is founded on the ability to produce electrical energy at low cost. This ability has been extinguished. Why?

Politicians are turning out the lights, literally.

Is Adulation of the Military Really Patriotic?

The politically incorrect answer to this question is a resounding “no!” Being genuinely patriotic means supporting the country’s society and culture. Excessive reverence for the U.S. government, military, and flag is merely nationalism and is similar to episodes in Russia, Germany, and Japan in the last century. And slathering the military with too many resources tempts politicos, such as George W. Bush and Madeleine Albright, to dream up unneeded military adventures overseas, which many times end in disaster.

True American patriotism, following in the tradition of the founding, rejects militarism without rejecting an appropriate role for the military. According to the Constitution, the active military should “provide for the common defense” and nothing more. This limited role should rule out the military being used to invade other nations for ostensibly lofty purposes.

Foreign interventionism in the name of expanding democracy and nation building is unconstitutional, expensive and wrong.

You Might Be a Constitutionalist If. . .

[N]either the Democrat nor Republican Party (at the national level) has any intention of slowing the out-of-control expansion of government. Neither party has demonstrated any loyalty to preserving and protecting our constitutional form of government.

Like National Socialists and Soviet Socialists of old, the only thing that concerns Democrats and Republicans today is who is in power. Both are equally willing to destroy the freedoms and liberties of people without conscience or regret as long as their party remains in control.

A long and interesting list of unconstitutional things our government is doing. Interesting, that is, if you believe the Constitution should be, at least, a guiding document for our politicians.

7 Months After Stimulus 49 of 50 States Have Lost Jobs

America Now Over 6 Million Jobs Shy of Administration's Projections

Wednesday, October 21, 2009

The table below compares the White House's February 2009 projection of the number of jobs that would be created by the 2009 stimulus law (through the end of 2010) with the actual change in state payroll employment through September 2009 (the latest figures available).

Jobs. Jobs are the key to a recovery but where will the jobs come from? Consumers are tapped out. If consumers aren't buying then businesses aren't hiring. They're firing laying off until consumers start buying again. Unemployed consumers can't start buying without jobs. So what's Obama and company doing to create jobs? Well, nothing. Quite the opposite. They're increasing taxes and regulations and making it more expensive for businesses to operate competitively.

Don’t Cry For Us, Argentina

Argentina’s problems began with simple government interventions into the economy aimed at artificially propping up wages. From those first interventions came further interventions to deal with the problems caused by the previous actions, and so on. In the end, all that was left was inflation, chaos, political violence, and poverty.

The United States is facing perhaps its second-greatest economic crisis ever, and so far the government has taken page after page from Juan Peron’s playbook. As a result of this economic and political foolishness, the economy continues to shed jobs and hope.

Our leaders are following the same formula for disaster as Argentina did says William Anderson.

Dems seek cover to boost debt limit

The Senate must soon increase the national debt to above $13 trillion — and Democrats are looking for political cover.

Knowing they will face unyielding GOP attacks for voting to increase the eye-popping debt, Democrats are considering attaching a debt increase provision to a must-pass bill, possibly the Defense Department spending bill, according to Democratic and Republican sources.

Adding it to the defense bill would allow Democrats to argue that they voted for the measure to help troops in harm’s way — and downplay that their vote also expanded the limit for how much money the country can borrow.

Look for a secretive vote in the middle of the night - probably a Friday night in order to minimize news coverage - to hide the fact that they cannot manage their fiscal responsibilities.

Health Care Hypocrisy

It is surreal that in a free country we are talking only about HOW government should fix health care, rather than WHY government should fix health care.

If the Republicans in Congress were really serious about a free market in health insurance and freedom in medical care, then they would support things like medical savings accounts, allowing the use of pre-tax dollars to purchase medical insurance, a 100 percent tax credit for medical insurance and expenses, medical insurance sales across state lines, complete deregulation of the health insurance industry, unrestricted freedom of contract between insurers and insurees and between doctors and patients, the freedom of insurers to discriminate based on the perceived risk of any individual or group, the absolute right of refusal for any preexisting condition, and the repeal of any federal law related to drugs, health insurance, or medical care.

"Government is not the solution to our problem; government is the problem." ~ Ronald Reagan

The USA—A Failed State

The U.S. has every characteristic of a failed state.

The U.S. government’s current operating budget is dependent on foreign financing and money creation.

Too politically weak to be able to advance its interests through diplomacy, the U.S. relies on terrorism and military aggression.

Costs are out of control, and priorities are skewed in the interest of rich organized interest groups at the expense of the vast majority of citizens. For example, war at all cost—which enriches the armaments industry, the officer corps and the financial firms that handle the war’s financing—takes precedence over the needs of American citizens. There is no money to provide the uninsured with health care, but Pentagon officials have told the Defense Appropriations Subcommittee in the House that every gallon of gasoline delivered to U.S. troops in Afghanistan costs American taxpayers $400.

The Constitution has been consigned to antiquity. The government is plundering its people and squandering the wealth of the nation.

Uncle Sam's gift to the prudent saver: Less money

This is a quiz. What do the record-high Wall Street bonuses have in common with the record-low yields for savers? Answer: They show yet another way that prudent people, especially those living on fixed incomes, are being cheated by the government's bailout of the imprudent.

Here's the deal. The government is spending trillions to keep interest rates down to support the economy and prop up housing prices, and those low rates have inflicted collateral damage on savers' incomes. "It's a direct wealth transfer from savers and retirees to overly indebted borrowers," says Greg McBride, senior financial analyst at Bankrate.com.

But government doesn't look at the consequences of their actions. Creating problems is its job description. They get (re-)elected by promising to "fix" the problems they create.

The Very Busy Politicians in Washington DC

With a faltering economy, multiple wars, and the approaching demise of the dollar’s reserve status, there are more than enough problems to keep politicians in Washington working day and night. In between handing out cash for clunkers and nationalizing healthcare, the administration is busy sending more troops overseas, escalating existing wars, and seeking out excuses to start new wars. Congress is working on “urgent” legislation to address crises like healthcare reform and climate change. The reforms are so very urgent that legislation must pass swiftly with no time to read the bills even though the new laws wouldn’t take effect for several years! Meanwhile, the Federal Reserve is busy dealing with our dollar crisis by printing up more dollars.

Congress stays busy by spending, taxing, regulating, nation building, and general tyrannating (look it up - if it's not a word, it should be). Ron Paul expresses his concerns.

Tim's Poem

Tim says:

Living to see these days in this country is making me wonder how we let it get this far when inside I already know. Here’s my summary, and there is no disrespect meant to anyone, only an honest evaluation of our society.

Guns are bad and so is saving,
you must keep on working, slaving.
Keeps you busy so distracted,
you can’t stop the laws enacted.
Don’t ask why just go along,
“THEY” are right YOU must be wrong.
One Right, Two Rights, Three Rights, Four,
lose them all and have no more.

“THEY” know how to control the masses,
Good little sheep just pay your taxes.
But you can barely make a dime.
and this recession gives you time.
You’re worried and it’s got you thinking,
Something is wrong, something is stinking.
You’re starting now to realize
the wool is coming off your eyes.

Keep it simple face your problems,
Uncle Sam can never solve them
Big government is not the way,
it can only kill the U. S. A.
“THEY screwed up, forgot the lessons
taught long ago, the Great Depression.
Spending, Printing while you holler,
“Must you really kill the dollar??”

It is morals that we really need
to put a stop to all the greed.
All is not lost, it’s not too late,
but YOU must act don’t hesitate!
The task is hard and yet worthwhile,
success can only make you smile.
So now YOU ask “What’s the solution?”
YOU MUST RESTORE THE CONSTITUTION!

Tim waxes poetic in a response to another governmental invasion of liberty.

Economics Simplified

Economics simplified

In a small town on the South Coast of France, holiday season is in full swing, but it is raining so there is not too much business happening. Everyone is heavily in debt, depressed by the global financial crisis.

Luckily, a rich Russian tourist arrives in the foyer of the small local hotel. He asks for a room and puts a Euro100 note on the reception counter, takes a key and goes to inspect the room located up the stairs on the third floor.

The hotel owner takes the banknote in hurry and rushes to his meat supplier to whom he owes E100.

The butcher takes the money and races to his wholesale supplier to pay his debt.

The wholesaler rushes to the farmer to pay E100 for pigs he purchased some time ago.

The farmer triumphantly gives the E100 note to a local prostitute who gave him her services on credit.

The prostitute goes quickly to the hotel, as she owed the hotel for her hourly room use to entertain clients.

At that moment, the rich Russian is coming down to reception and informs the hotel owner that the proposed room is unsatisfactory and takes his E100 back and departs.

There was no profit or income. But everyone no longer has any debt and the small town people look optimistically towards their future.


BINGO! THE SOLUTION TO THE GLOBAL FINANCIAL CRISIS!

Partisan Politics—A Fool’s Game for the Masses

Democrats encourage people to hate big corporations, and Republicans encourage people to hate welfare recipients.

Of course, it’s all a fraud, designed to distract people from the overriding reality of political life, which is that the state and its principal supporters are constantly screwing the rest of us, regardless of which party happens to control the presidency and the Congress. Amid all the partisan sound and fury, hardly anybody notices that political reality boils down to two “parties”: (1) those who, in one way or another, use state power to bully and live at the expense of others; and (2) those unfortunate others.

The two political parties that divide us with misleading "differences" are actually allied in their intent to control us.

Obama wins Nobel Peace Prize

OSLO (Reuters) - U.S. President Barack Obama won the Nobel Peace Prize on Friday for giving the world "hope for a better future" and striving for nuclear disarmament.

I'm speechless. On what basis? Glibness and bulls**t?

Dumbfounded and appalled - responses found on Drudge...

NORWAY PM SAYS OBAMA TO COME TO OSLO TO ACCEPT NOBEL PEACE PRIZE... DEVELOPING...
SOURCE: Obama will accept award on 'behalf of Americans and America's values'... Developing...
OCTOBER SURPRISE: OBAMA WINS NOBEL PEACE PRIZE...
MIXED REVIEWS; 'EMBARRASSING JOKE'...
PAPER: This makes mockery of peace prize...
White House Aide: 'It's Not April 1st, Is It?'...
Carter: 'Bold statement'...
Lech Walesa: 'Too early. He has no contribution so far'...
Oslo 'political endorsement'...