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Land of the Free

Land of the Free (4/27/2011)

Our national anthem brings pride unto ourselves when we quote the famous lines, “O’er the land of the free and the home of the brave.” Sadly, since that fateful night at Fort McHenry I would offer the founding fathers fight against royal tyranny for liberty and our forefathers shedding blood for future generations has been usurped by complacency. Examples abound in our current society of both the loss of freedom and lack of bravery.

A December 4, 2006 column in the Russian paper, Pravda, makes reference to “A record 7 million people – or one in every 32 American adults – were behind bars, on probation or on parole by the end of last year’, and when these figures are added to the estimated 1 million prisoners of war held by the United States, all around the World, the once great American Nation has now become the greatest jailer of human beings the World has ever known.” Laws such as “Three Strikes” have increased our incarceration rate for even the pettiest of crimes. Even the truly law-abiding are not free. Consider random traffic stops to check your license and insurance, TSA airport searches, security screenings to enter a public event, and proof of identity requirements for job applications and opening bank accounts. Exacerbating the situation is claims these freedoms are taken in the name of liberty.

Ironically, even bravery has been eroded out of fear of consequences. Questioning TSA regarding the 4th amendment and basis for searching six-year olds will prevent you from flying. Publicly videotaping law enforcement creates a fast path to court with criminal charges. My favorite example occurred two weeks ago: Juror 799, an Asian woman in her 20s, when asked to name three people she least admired on her juror questionnaire, wrote: “African-Americans, Hispanics and Haitians.” In the land for the free and home of the brave the woman was sentenced to indefinite jury duty by Federal Judge Nicholas Garaufis – a unilateral decision with no crime committed.

I challenge you to listen carefully to political demagoguery and proposals to “make you safer.” Blood was shed September 3, 1814 to capture freedom and liberty for future generations whilst Francis Scott Key watched the fight and immortalized his feelings. Sadly, our former enemies in Russia watch our freedoms erode and write about it, but the timidity bred into our generations of children makes them blind to the blood given for their liberty and they will not stand bravely for themselves.

April 27, 2011 by Big Government Civil Rights Freedom Stupid People Terrorists

The King’s Speech

The King’s Speech (04/20/2011)

I have never been as angry after a President’s speech as I was last week. Being forthright, I do not like Obama, never have, and never will. I believe he was unqualified to lead our country, has blamed others for his failures, will not hold himself accountable, and ultimately we disagree on the direction our country should go. Furthermore, I believe the Republicans have nothing different to offer than to protect their own interests and continue stealing our freedoms.

The King had an opportunity to win the American people over to the proposals for our future. Our fiscal situation is dire, inflation is increasing, wages are falling, energy and food prices are increasing, the Democrats have proposed spending $1.4 trillion more than tax revenues will produce, and in just 2 years the King and his court have increased the national debt 33%. The Jester, John Boehner, bragged regarding the bipartisan budget agreement, largest in history, but that lie only survived a week. The CBO reported the “real” cuts are only $352 million, less than 1% of the lie put to us.

The King, Jester, court, and sleeping beauty (Joe Biden) know how government works; let me explain. Let’s say you and I spend $100/month on eating out and decide next month we will budget $50 more dollars for dining. Using government accounting if we reduce the total budget to $120, we “saved” $30! There were no cuts; we just didn’t spend what we planned to, unlike spending $70 you and I would have inferred. Because my children’s future is in peril let me propose true government responsibility: mandatory 15% income tax for everyone, 20% for all corporations, and reducing the tax code to just one page as there will be no deductions of any kind. Second, eliminate the Departments of Energy, Education, Interior, Homeland Security, and Health and Human Services. Third, close all foreign military bases. Fourth, eliminate public funding of arts, Planned Parenthood, charitable programs, and any constitutionally questionable program. Fifth, cut all Congressional member and staff budgets and salaries by 50%. Sixth, eliminate all civil service pension plans and special medical plans. Seventh, remind our elderly that Social Security and Medicare were supplemental programs, not entitlements, and cut the monthly benefit to $750/person, regardless of income or marriage.

Only radical, truthful proposals will work to save our country. A parent makes tough decisions and redirects behavior; similarly we need politicians to lead, not steal our futures. The current tomfoolery will continue to strengthen the uprising and anger in America and revolution against the elected royalty will occur.

April 20, 2011 by Big Government Great Recession Mainstream Media Obama

My two cents…

The fed is between a rock and a hard place:

– no more QE: the stock market will crash, no easy credit, brakes on economy
– continue QE: rising inflation, real wages dropping, angry voters.

Furthermore the Administration is not supposed to be part of the monetary policy but Obama will politically pay for the decision either way.

What should we do:
– keep your gas tanks full (I filled the RV in January, $2.90/gallon, today driving home it is $3.80/gallon — $60 savings
– keep your pantry full — anything you buy today is cheaper than tomorrow
– understand the stock market is like going to Vegas. Best trading option is probably futures contracts
– pay down debt that costs more than 6%-8% to improve cash flow. Anything else is about to become cheap money. Free up the expensive money to invest in CD’s, dividend paying accounts when interest rates go back to 10-12-14%
– Remember, as interest rates go up bond prices go down. why do you think PIMCO sold ALL of their treasury bonds?
– Remember the government has $4 trillion in short-term treasuries coming due in the next 18 months

April 17, 2011 by Capitalism Depression Great Recession preparedness

Death and Taxes

Death and Taxes Redux (4/13/2011)

Attending funerals I reflect on death, and although inevitable we deny our mortality one statement that intrigues me is the saying, “Only two things are known; death and taxes.” I know with certainty I will die and everyone around me will die, someday. Of course cause of death cannot be predicted but risks associated with death can be minimized and each of us tries to live with a goal of prolonging life and we fight death with all of our might but cannot stop its inevitability. Taxes, however, are not an absolute, but we evolved to accept taxes part of our being, just like death. Instead of continually working toward ending this other ‘absolute’ in our lives our society seems willing to perpetuate this self-destructive mechanism upon ourselves.

Taking a step back, maybe a better word for tax would be “privilege payment”. We pay for the privilege of living in a civilized society, and this argument could be made throughout human history. Most of us are willing to contribute a nominal amount of our individual efforts to support the purported common good of the society in which we live. I accept there is a cost to civilization as I expect infrastructure for safe water, sewage disposal, defense, and transportation.

Regardless of the specifics of the individual line items that we agree to tax ourselves for, we should constantly examine the necessity. I choose to minimize the risks I take in my daily life, exercise, eat well and therefore am hopefully prolonging my life and cheating death. I argue that we no longer do the same regarding taxes and instead readily acquiesce to taxing our individual efforts and allowing the state to control and disburse them. I assert we have voluntarily enslaved ourselves to an entity that we may not be able to escape.

Death is inevitable; the process of self-destruction through taxation is not. Taxes are acceptable when presented with a true cost and benefit analysis, a clear exit strategy from the tax, and a method to provide for checks and balances against a tax. If you were taking an inventory of your personal health in an effort to ensure you were prolonging your life you would question every risk, every activity, and eliminate those that are harming you. This same analysis must be performed frequently and regularly regarding taxes. We must question every dollar that is spent and be willing to take tough measures to eliminate waste, just as you would do personally.

April 17, 2011 by Big Government taxes

The Hydra Monster

The Hydra Monster (4/13/2011)

On Friday Americans will repeat the annual ritual of paying taxes. Local television stations will provide live coverage from postal offices near closing time; editorializing what we “must” do to pay our taxes. Obediently most all of her citizens will have complied and the monster of government will continue living, and regardless of attack she cannot be killed through starvation or even radical cuts. Valiantly some men are trying like Congressmen Ron Paul and Paul Ryan, but attempts to shut down the government and truly kill the monster to save future generations are met with mockery from the press and she continues to live.

Sadly, the Hydra Monster lives at all levels of our lives. We start with our paychecks by enslaving ourselves for the first three to four months of the year to pay Federal income tax (20%) and FICA (7.65%). Sadly, most people ignore the 7.65% raise they would receive if employers did not have to pay taxes “on their behalf.” In Georgia I have a state tax of approximately 3% and there are the other taxes my employer pays instead of paying me: SUTA and FUTA. Adding it all together nearly 40% of our paycheck is gone. In November most local municipalities seek property taxes on those who own real estate, amounts of $5-$15k are averages in Volusia County (let’s assume 10% of income). With every purchase comes sales tax: 6.5%. Adding everything together comes to 55% of earnings. Of course, there are countless fees and taxes on phones, internet, licenses, and registrations further driving up costs.

Taxes anger me because the Hydra Monster called government relentlessly feeds itself on the backs of all men and abusively spends the collected monies. At the national level the monster is so large the President readily acknowledged during his promotion of healthcare fraud and waste in Medicare comes to $1 billion, but the monster lives on. Locally governments build multi-million dollar firehouses on prime commercial property and create pension plans to allow productive citizens to withdraw from the workforce at early ages. In Nassau County, NY policeman earn $100k after five years and are entitled to hundreds of thousands in annual retirement benefits!

Our country is dying, consumed by the Hydra Monster. No matter how hard our heroes try to cut a head she will live on, breathing fire against her people, growing meaninglessly, and adding more heads to become ever more pervasive and invasive in our lives. Radical change is required to defeat the Hydra Monster, only banded together can she be killed. Paying taxes this week is a sad offering to the misery befalls man but will make the Monster stronger.

April 17, 2011 by Big Government Capitalism Depression Great Recession taxes

Hypocrisy

Hypocrisy (03/30/2011)

I consider hypocrisy to be the most appalling and disgusting action someone can take. I believe examples abound like politicians campaigning for family values then engaging in affairs, organized religious leaders looking away from rape by their clergy, preachers wrapped in wealth, or global warming followers driving jets and SUVs. Many on the right are struggling with the hypocrisy of the press; their basis of accusations of liberal bias against the mainstream media. Out of fairness, our media has never been held accountable for any reporting, no matter how inaccurate. With the Libyan conflict though it appears a “wink-wink” of approval has been made to the current administration.

In December 2007, Senator Obama said: “[the] president does not have power under the Constitution to unilaterally authorize a military attack in a situation that does not involve stopping an actual or imminent threat to the nation.” Shortly thereafter Senator Obama was supported by Senator Joe Biden who pledged to start impeachment proceedings against President Bush if Iran were attacked without congressional approval. Ironically, we find ourselves with the hypocrisy of our President and Vice President doing exactly what they accused Bush of doing. On March 19, 2011 President Obama stated, “Today we are part of a broad coalition. We are answering the calls of a threatened people. And we are acting in the interests of the United States and the world.”

Hypocritically the question must be raised as to how Obama could make such a statement, and ignore his prior assertions of Presidential authority. Over the last several weeks uprisings have occurred throughout the Middle East, starting with the self-immolation of a fruit stand worker in Tunisia. Each of the middle-eastern governments has turned on its citizens: Tripoli, Yemen, Bahrain, Libya, and of course our oil-rich ally Saudi Arabia. While the President had psychic-like success with his NCAA basketball picks his reason to start a war with a meaningless dictator remains a mystery. Whether or not I agree with Mohammar Qhaddaffi, Libya is a sovereign nation entitled to manage her affairs, or the same principles shall apply to China, Korea, Venezuela, and most of the middle-east. Protected by our media it is easy to see the quick dismissal of the hypocrisy of the situation, as a lover will always look away. “Hypocrisy is a fashionable vice, and all fashionable vices pass for virtue,” – Moliere (1622-1673).

April 17, 2011 by Big Government Mainstream Media Muslim Obama Terrorists

I am Angry

I am angry because it appears no one knows what is going on around them with deficits, rising fuel prices, Islamic radicalization, and Middle East uprising. The most twisted issue is an American society willing to tax food, clothing, and shelter, at the same time as supporting 44-million Americans on food stamps all while watching media celebrities like Charlie Sheen make fools of themselves. It cost an extra “Andrew Jackson” to fill my car today and the mainstream blames fuel prices on the Middle East, but that’s far from the truth. A middle-school look at the readily available data shows a more fundamental reason for the rise, one destroying our lifestyle and future.

Rising fuel prices are simply attributed to three factors: monetary supply, supply and demand, and speculation. Speculation is based on fear in the market which is driven by political unrest around the world. Supply and demand is a direct consequence of emerging economies, hurricanes in the Gulf, or destruction of Middle East oil assets. Although the Middle East uprisings are dominating news reports daily, the current rising prices are truly a function of monetary supply. Fed Chairman Ben Bernanke speculated on QE2 in August 2010 and it was officially announced November 4, 2010. Each week I graph crude oil prices and up until August prices were relatively stable, but immediately following QE2’s speculation fuel prices started to rise, increasing more after the official announcement. With the devaluation of our currency, OPEC announced a desire for higher fuel prices to effectively capture the same income. Today’s Middle Eastern uprising is a secondary issue exacerbating the underlying cause of rising fuel prices. Blame our government and central bank, not those fighting for civil liberties.

The solutions being thrown around by political pundits from both sides make no sense and demonstrate politics’ need-to-please, not realistic solutions. Opening strategic reserves is anecdotal to a giving a cancer patient a band-aid. “The Long Emergency,” as James Howard Kunstler writes, has begun and political unrest, failed monetary policies, and a third-world desirous of the same excesses we enjoy will continue to drive oil prices upward. I am angry pop-culture nonsense Tom Brady’s hair and Gaga’s breast milk ice cream exploits resonates more importantly than the collapse of our currency. On November 10, 2010 I wrote, “Gasoline should easily reach $3.40/gallon by April as OPEC is demanding a minimum $100/gallon.” I am angry no one listens.

March 25, 2011 by Big Government Muslim Obama sheep Stupid People

Left – I agree more than you think

I rarely read the columns to my Left and Right on this page, but recently was made aware of a comment asserting I had a “Right” bias. Although probably not far off at first glance, due to my fear of tyranny through larger government, I thought I might take on the challenge and clarify many of my positions for all who read. I compiled a list of my columns for the last 80 weeks and saw a common theme emerging, one that distances me from most on the Right and those on the Left, but more so defining a tolerant middle-ground. Let me proceed.

We should not have a death penalty, in my opinion to put one innocent man to death is far more grievous an error than all the guilty men “legally” killed. In contrast I would argue the same applies to abortion and we should not terminate those who cannot speak for themselves. I do not support school sponsored prayer, or even prayer at a public event. At the same time I feel it is wrong to tell someone they cannot pray or express themselves religiously, both positions fail to respect the individual. I do believe the environment should be protected at all costs, to not be a conservationist is only destroying the world for future generations. However I am of the opinion Global Warming is complete hogwash. Regarding health care, as dutiful men we need to care for the indigent and infirmed, but government is least likely the right mechanism to transfer such wealth whereas charity and selflessness will more efficiently provide.

I move far from the left on the concept of income redistribution and sincerely believe all men are created equal, and therefore have an equal chance of success. However, I do believe some amount of government regulation is necessary as many men will choose cheating and scheming over honesty. Like many on the Left I believe the Patriot Act was the most abusive attack on our civil rights ever made and it should be immediately abolished. Unlike those on the Left I believe the Founding Fathers did not see the Constitution as a living document, fearing tyranny, and wanted to give liberty from government to future generations.

I can state my position succinctly: I love my country, but fear my government. “When the people fear their government, there is tyranny; when the government fears the people, there is liberty.” – Thomas Jefferson.

March 25, 2011 by Big Government General Rant

Destroying Futures

Imagine earning $30,000 (3 Trillion) per year but having bills and obligations of $42,000 (4.2 Trillion) per year. Additionally, let’s assume you have a spouse and two children with wants and desires. With your income falling short you would know radical changes in your lifestyle must be made and if you are a Dave Ramsey fan you know every expenditure would have to be considered and nearly one-fourth must be cut. However, the kids will complain if you cut their movies, food, school activities, clothes and even iTunes budget (government spending). Your spouse does not want to discuss the issue because she feels the problem will go away, as if by magic, and there is no reason to upset the kids (political debate).

However, there is an answer: debt. Of course, a loan to create a source of “income” can be created (deficit spending). For instance, a second mortgage on your home could fund the shortfall and maybe allow you to buy a new big-screen television or car, a hugely popular decision at home. But this only works for a while, quickly you discover the interest only payments add another $500 per month to your obligations, thus you are now using the debt taken on to pay for the original shortfall and the new debt (treasury auctions)! You have looked for ways to increase income, but the economy isn’t growing and no one is hiring (tax revenue). Your anxiety increases because you know this cannot keep going and bankruptcy may be the only way out.

One day however, your neighbor Fred (Federal Reserve) knocks on your door and explains his multi-level marketing business is doing well and as long as he keeps getting new people involved his success will grow and he would like to help you. Hesitantly you agree to his proposal: he will paper over your debt (purchase bonds), and you can repay him in 30-years. Thoughtfully you think his proposed near zero interest rate and 30-year offer has to work. At age 50 it is even unlikely you will be here in 30 years to deal with the repercussions. With a wink, Fred explains your children will assume the entire debt, with interest. After contemplation you feel it is better to risk your children’s future than to reign in your lifestyle today, and hurt their feelings, and since they do not get an opinion (can’t vote) they will never know. Like a deal with the devil, you know there is no way out.

March 4, 2011 by Capitalism Depression Great Recession preparedness taxes