Big Government

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

Wisconsin

I debated whether to offer an opinion regarding Wisconsin, but knew I could not let go of this protest. I am impressed with the 65,000 plus protesters that believe in something strong enough to brave the cold. More important to see debate with such passion engaging on our own soil gives me hope toward future revolution against our government and the tyranny we face. It appears the press – from the left and right, have managed to blur the issue at hand as there only appears two possible opposing views when tapping MSNBC or Fox News. I hypothesize three parties are now at war in this country: Public Servants, the Ruling Elite (executive pay), and the Private Sector. Thus, a two pointed perspective does not work and furthermore the issue at hand is not about trimming union rights, but re-aligning public servant compensation.

Austerity measures will generate class warfare and in this Great Recession the compensation of the three parties has diverged greatly. Executive pay remained safe and increased greatly and Public Service payrolls have increased far greater than private payrolls. On the other hand, the Private Sector has suffered irreplaceable job losses, flat wages and lives in fear of a pink slip delivery tomorrow. At the same time the Private Sector is asked to pay more income tax, more sales tax, more property tax, and more fees to pay for the perpetuation of Public Service compensation programs and to bailout reckless executives who lost gambling bets against the masses during the debt fueled frenzy.

Ancient Rome succeeded through an ever expanding territorial economy fueling the wants and desires of Caesar. The masses found relief through entertainment at the Coliseum and a sense of safety, but yet traded liberty for trite compensation. Similarly, America is like Rome; rich Senators, a small ruling class, and wealth obtained for a few due to the destruction of others. Our masses are entertained by media and sports, not taking time to understand the reason behind the need for change. Like Rome our public servants are protected by a never ending spigot of tax dollars and turn against the working class and income earners for whom they supposedly serve.

It is forgotten that our children will ultimately pay the price. Something is happening in America right now, and it started with the bursting of the debt bubble three years ago. Denial has not worked and protests will become more common, maybe leading to revolution. I am concerned for my children’s future and cannot imagine the tax burden, inflation, and tyranny they will face if we do not stop opposing the protesters in Wisconsin.

March 4, 2011 by Big Government Depression Great Recession Health care taxes

Dad’s Money

Dad’s Money (2/23/2011)

Nightly we are bombarded by incomprehensible numbers regarding Federal government spending: $14 trillion debt, $4 trillion budget, $1.5 trillion deficit and $180 billion interest payments. There are too many zeros on each number to print in this column, twelve each for the debt and deficit. Sadly, like gamblers in Las Vegas using colored poker chips we have lost sight of reality because no one touches the monies. As taxpayers our view of the government has become like a child’s view of Dad’s spending. A five-year-old watching his father has no idea where he gets money, but feels there is an endless supply. Sometimes Dad reaches in his pocket and uses green currency or coins like nickels and pennies. Other times Dad uses colorful plastic cards and swipes them in machines, and Dad has a book with checks where he illegibly scribbles names and amounts and declares the bills are paid. Of course, he also logs on his computer and banks via the web. Similarly, the government engages in a playful deception of payments, using computers, checks, and cash cards to move monies around.

Dad always seems to have money and as five-year olds we know he leaves each day and goes to work to make more. A connection between work and money seems obvious because doing chores sometimes brings allowance to children. As young children we always seem to have food, clothes, and toys. We don’t know how the lights operate or anything about mortgages and rent, insurance, gasoline, or car payments. However, we know dad takes care of us and most citizens view the government the same way with no understanding of tax income or expenditures

Right now we are enjoying historically low interest rates, easing interest payments on our $14 trillion debt. If interest rates return to historic norms of 6% the payments will increase to approximately $840 billion, nearly 23% of our current budget. Like a five -year-old trusting Dad to make money and spend money to care for the family we believe our elected trustees will do the same. However, re-election drives decision making, not the tough longevity of parenting and sadly our federal government is recklessly spending money. Congress must be held accountable for the deficit spending because they are bankrupting our country. Every parent and grandparent should know what is happening and encourage Congress to stop today’s fiscal negligence. Congress is punishing our future generations with inflation, high interest rates and more taxes. Sadly a five-year-old cannot stop Dad’s recklessness, but as a voter you can stop Congress.

February 23, 2011 by Big Government Great Recession taxes

Homework

My daughter’s homework recently piqued my interest while she was studying for an exam. Currently, she’s taking an American Government class; learning about types of government like authoritarian, dictatorship, oligarchy, and democracy. During our studying though we came to a handout that forced me to question today’s teaching as it focused on explaining the role of government. It is this question that divides left and right, Democrat and Republican. Personally I have a strong libertarian view which believes in a very limited role of government.

Reviewing her handout I learned there are seven roles taught to today’s students: defense, taxation, judiciary, education, health care, transportation, and economy. I wondered how many Thomas Jefferson would include on the list and speculated three: defense, taxation, and judicial review. Seeking a more definitive answer I found only defense and judicial protection receive consensus and without taxation the rest of the list cannot exist. Sadly, I think our country has reached a crossroads in development: we can have freedom and independence to control our lives with no government involvement but risk personal loss and failure, or we can mutually combine all of our earnings and share the bounty regardless of productivity to protect our entire society against any calamity that may befall us.

I believe the second option has been tried repeatedly throughout history and most recently by the idealist Karl Marx in a quest to end class struggles; recognizing the needs of the proletariat against the bourgeoisie. Modern communism expanded on the efforts of Marx’s writings with Lenin and then Stalin accelerating its spread; dictatorial regimes use communism to disguise their own human rights atrocities. Many would claim the U.S. has recently failed at the longest running experiment in capitalism and laissez faire economics allowing business to overrun the working class. However, a quick glance at American history confirms anyone, regardless of status, education, or connection can succeed to enormous wealth, unlike communist nations allow. Successes like Bill Gates, Larry Page, and Jeffrey Bezos abound and even Presidents Clinton and Obama come from the poorest of backgrounds and family struggles.

Ayn Rand concisely describes the role of government “as, the police, to protect you from criminals; the army, to protect you from foreign invaders; and the courts, to protect your property and contracts from breach or fraud by others.” I believe the role of government is to allow me freedom of choice – to succeed or fail

February 16, 2011 by Big Government Civil Rights sheep taxes

1970s versus 201Xs

The kids wearing plaid pants and striped shirts with long hair watching the “Brady Bunch”, “Adam-12” and “Emergency” are the men and women running our government today. It seems these “kids” have no recollection of the politics or monetary policy of the 1970s, instead only remembering the Bicentennial, bell bottom jeans, and Nerf footballs. A careful examination will show a decade that suffered an energy crisis causing an immediate recession. The same happened in 2008 when oil prices rose rapidly to $147/bbl driving our economy over a cliff to financial Armageddon. Nixon removed the Gold standard in 1971, and the Federal Reserve enacted new monetary policies to bring recovery. No radical method helped Nixon or Ford, and a hopeless Democrat was elected; promising prosperity and unable to deliver as we added the word “stagflation” to our vocabulary. As America entered the 1980s, after seven years of lackluster growth interest rates rose rapidly crushing the housing recovery. I remember my own parents struggling with 18% rates, job loss, and our manufacturing shift overseas as Chrysler sought a bailout and American’s learned “Made in Japan” meant quality compared to our union produced assembly lines.

For ten years inflation was high, reaching 13.5% in 1980 and unemployment soared above 10%, but like today the same policies were held: Federal spending never slowed, and tax increases for the rich were proposed. Gold prices accelerated and fueled speculation the end was near and the economy would not survive. Talk of wind mills, solar panels, energy conservation, and self-sufficiency abounded. Reviewing newspapers from the early 1980’s it is easy to spot Tip O’Neill’s 100-plus Democrat majority was adding to federal spending faster than the revenues received, not unlike the recent Pelosi dynasty. I found one article stating for every 1% increase in unemployment Federal spending deficits increased by $25-40 billion during the 1982 recession because unemployment drives down revenue and causes government to spend more.

Many argue the cornucopianism of Ronald Reagan saved the economy through supply-side tax cuts. I would argue a direct correlation should be made between recovery and oil prices as the UK’s discoveries of North Sea oil increased supply and probably fueled the recovery of the 1980’s and 1990’s. The 1970’s are remembered for Disco and parties, instead we should truly understand the damage of failed economic policies. We are three years into the current economic decline and the kids I knew now run Congress; I would offer 1970’s history provides more answers than the academic speculation used today.

February 2, 2011 by Big Government Depression Great Recession Peak Oil taxes

Welcome Back

Welcome Back
The 112th Congress began last week and last Monday night I found myself watching C-Span replaying Rep. Nancy Pelosi’s inaugural speech to the 111th Congress. In January 2008 we were on the cusp of driving over an unforeseen cliff into financial armegeddon. Therefore I wonder if Ms. Pelosi’s speech was sincere in its lofty promises regarding spending. She did manage to accomplish many of her goals including the passage of national health care. However, her single biggest failure was the blatant spending, supporting increases and propelling the national debt higher by $5.3 trillion dollars. One can easily argue it was not her fault, the financial crisis created a historic problem requiring spending unprecedented monies.

This past November Ms. Pelosi was re-elected by the constituents of the ultra-liberal California Bay Area 8th district identifying gay rights, social programs, and government intervention as the solution to America’s problems. On the other hand, also welcomed back was Rep. John Boehner, Pelosi’s outspoken critic in the House and the new House Speaker. The 112th Congress comes to Washington with great expectations to generate jobs, protect our soldiers, and provide tax relief. Influenced by the Tea Party movement Congress started its session with a historic reading of the Constitution to remind members our founding fathers had a vision for a great republic, guided by fiscal conservatism, and relief from tyranny. I applaud the efforts to require all new bills cite the Constitutional authority given to Congress to enact it. With this citation the legislature would no longer spend many nay years awaiting the judiciary’s decision to overturn unconstitutional legislation.

Sadly it appears we remain at a crossroads in American politics as even a reading of the Constitution is called pompous theater by the likes of the New York Times. Regarding the 112th’s efforts, much debate will take place regarding the “Constitutionality” of their proposed actions, and only one man knows the intent of the Constitution although many consider that intent clear. I welcome back the members of Congress and hope they will look to Jefferson’s writings to protect our future, “Our tenet ever was…that Congress had not unlimited powers to provide for the general welfare, …was never meant that they should provide for that welfare but by the exercise of the enumerated powers, so it could not have been meant they should raise money for purposes which the enumeration did not place under their action; consequently, that the specification of powers is a limitation of the purposes for which they may raise money.” – Thomas Jefferson, 1817.

January 16, 2011 by Big Government General Rant Obama taxes

Tort Reform

Tort Reform

A discussion about nationalized healthcare cannot take place without mentioning tort reform. In essence, the thought is ‘reducing litigation or damages’ will reduce costs to healthcare. Of course, we could assume that would translate to all industries. Everyone remembers the lawsuit against McDonalds for serving hot coffee, spilled by the consumer. The initial amount of damages awarded was almost $3 million… and was eventually settled out-of-court for $600,000.

Similarly, businesses face threats of lawsuits daily from falls in parking lots or stores, misuse of products, or frivolous acts. A rampant industry of “legal theft” has been created by the television and billboard lawyers fishing for clients who may have an ailment never before considered, but with marketing and awareness suddenly thousands can suffer from imaginary problems, become part of a class lawsuit, and make money. The real winner is the law firm making millions in fees and taking a significant portion of the award.

Movies like “Erin Brokovich” and the many John Grisham novels/films have reminded us of the sympathetic need for our ability to litigate. In these blockbuster films the destitute win against the big, bad corporation and remind us they are evil and must be punished. In other parts of the world citizens cannot sue for millions and must bear the cost of legal fees when initiating a lawsuit and the defendant’s costs – should they lose. Neither method is perfect and creates unintended consequences. Americans appear frivolous and greedy in seeking justice and other countries appear to favor the big company over the individual.

Unfortunately we all face other consequences of our system. Imagine driving your car down Flagler Avenue and having a bicycle run into you. Several weeks later you may find a television lawyer serving you with a lawsuit. Regardless of fault, your insurance company will pay, not even argue the case, as the lawyer pursues an endless income stream from legal extortion. Similarly, a professional license is jeopardized by frivolous complaints and legal fees; to defend proper decisions can cost tens of thousands. Imagine the numbers professionals in the financial industry accused of “losing money” during the collapse of 2008-2009. Of course, the likes of Bernie Madoff permanently tarnished the reputation of those exercising due diligence.

Regardless of fault, a system of arbitration to bypass the expense of discovery should be established, especially on an individual basis. Principles costs money and often settlement to find personal peace through dismissal is a better option, but a feeling of admission of guilt is created when no guilt is present. “I do not add ‘within the limits of the law’ because law is often but the tyrant’s will, and always so when it violates the rights of the individual.” – Thomas Jefferson

January 8, 2011 by Big Government sheep Stupid People

Welcome 2011 (aka 1984)

Welcome 2011 (aka 1984)

Orwell’s 1984 is an unbelievable tale imagined in 1949 focusing on government surveillance and mind control. Since 9/11 Americans have followed the Orwellian path: trading liberty for the perception of safety. Like Sheep, there is no resistance stepping into body scanners, allowing our mothers, daughters, and wives submission to hands of questionable authority, and acceptance of cameras and data mining to predict actions. Our same ruling elite, like the “Inner Party” exempts itself from the rules and regulations put upon “We the People”.

My goal is not to pontificate doom and gloom, but raise awareness and challenge the status quo. I must wonder why a NFL football dominates television ratings when our society is collapsing around us. Much of the change thrust upon us was incrementally small and came slowly after 9/11. However, I believe there has been an acceleration of lost liberties in the last two years. For example: a pilot challenging TSA’s procedures last week had his home raided by Federal Authorities under administrative rules creating a warrantless search; TSA announced further silly rules scrutinizing Thermos bottles; passengers cannot take water through security as it may explode; Wired magazine detailed government collection and scrutiny of credit card and store loyalty card data; Google through StreetView and other data mining practices announced predictive behavioral searches; municipalities are investing in license plate readers to track all traffic in their communities; you cannot enter a store or public place without CCTV recording and forever storing your image; without warrants the NSA is listening to phone and email traffic; purchase of certain over-the-counter drugs requires logging your identity in a government database although no law is broken; Attorney General Eric Holder shared in an interview with Diane Sawyer last week American citizens require surveillance to stop homegrown terror; passage of Net Neutrality was the first step toward an ID requirement to access the web; and Janet Napolitano announced Wal-mart will install televisions nationwide to broadcast the “If you See Something, Say Something” campaign encouraging us to report on others.

I do not have confidence in the government, nor do I trust the government to maintain its integrity. By the government’s admission we need to question those who exercise First Amendment Rights, have certain political bumper stickers, belong to organizations like the NRA, and criticize the United Nations. As 2011 comes upon us I challenge you to watch the weekly announcements of new government “security” programs and ask, “Why?” Big Brother is watching you. – George Orwell.

December 29, 2010 by Big Government Civil Rights Stupid People