End the Inflation Tax

“Inflation has now been institutionalized at a fairly constant 5% per year. This has been determined to be the optimum level for generating the most revenue without causing public alarm. A 5% devaluation applies, not only to the money earned this year, but to all that is left over from previous years. At the end of the first year, a dollar is worth 95 cents. At the end of the second year, the 95 cents is reduced again by 5%, leaving its worth at 90 cents, and so on. By the time a person has worked 20 years, the government will have confiscated 64% of every dollar he saved over those years. By the time he has worked 45 years, the hidden tax will be 90%. The government will take virtually everything a person saves over a lifetime.”

— G. Edward Griffin

I actually beat DownsizeDC to the punch and promoted the End the Inflation Tax action item before they did by incorporating it into this previous post and digging it. Of course, I don’t have nearly the reach that DownsizeDC has but…

Well, Perry Willis’ blog entry on the Inflation Tax subject is here.

Mayor Bloomberg rips George Bush’s rebates

As heard on Jeff Ward. Michael Bloomberg, the Mayor of New York, on the latest round of tax rebates:

“They want to send out a check to everybody to stimulate the economy,” Bloomberg said. “I suppose it won’t hurt the economy, but it’s in many senses like giving a drink to an alcoholic.

“This country has a balance sheet that’s starting to look more and more like a Third World country,” Bloomberg said.

read more | digg story

Is it a crime if I say “I agree with him completely?”

If you read the article at the Arizona Republic, you might notice that it will take from 3 to 10 months to get the dollars to the recipients. Recipients that are already on file with the IRS, in records that the IRS already maintains. It will take at least three months and 300 million dollars to get the job done.

Can you say bureaucracy? I knew that you could.

I just want to know how long this bubble will take to float downstream and further increase the inflation rate; or are they planning on subtracting this ‘rebate’ from next years taxes?

Ron Paul on the Economy, CATO on the Gold Standard, DownsizeDC on both

I stumbled across this teaser on digg the other day:

The full interview | digg story

CATO ran a related subject on the daily podcast recently, titled Is the Gold Standard Still the Gold Standard among Monetary Systems? Personally, I don’t even know how you would justify a different standard. All the counter arguments have now been discredited.

…and the dollar continues to fall, while gold and silver continue to rise.


Downsize DC has been agitating for HR 2756, “Honest Money Act” for quite some time now.

However, they have finally added HR 4683, the “Free Competition in Currency Act” to a new action item entitled End the Inflation Tax.

…it should come as no surprise that the greatest boom and bust in American history happened immediately following the Fed’s birth in 1913. Fed inflation put the inflationary “roar” in the “Roaring Twenties” followed by the biggest bust ever, the Great Depression.

All past inflations, booms, and busts were created through essentially the same process, including the recent stock market and housing bubbles. The Fed is simply the government’s latest-and-greatest tool for legalized counterfeiting.

How You Can End This Con-game

Imagine what would happen if FRNs had to compete with gold, a form of money that can’t be significantly inflated or deflated because of its scarcity and durability…

  • People would begin to have gold accounts that they would use to buy and sell. The ownership of the gold would be transferred back and forth using checks, debit cards, paper certificates (currency), and a few coins, just like with FRNs.
  • When you went shopping you would start to see two prices, one in FRNs and one in a certain weight of gold.
  • If the Fed inflated the number of FRNs you would see the FRN prices rise while the gold price would stay roughly the same.
  • You would begin to prefer to pay the gold price, so you would want to be paid in gold too.
  • How could the Fed stop the flight to gold? Only one way. Stop inflating the number of FRNs.

Congressman Paul has hit upon the easiest way to end inflation, and the booms and busts that follow in its wake. Simply repeal the legal tender monopoly enjoyed by FRNs, and the coinage monopoly held by the United States government. Allow monetary competition. Not only would this help to end inflation and recessions, it would also limit the ability of politicians to hide the true cost of government through the inflation tax. But that’s not all . . .

Forcing FRNs to compete with gold would also confer one other benefit. Over time the prices you pay will tend to fall as increases in economic efficiency (for example, technological improvements) lower the cost of production and increase the supply of goods and services. A stable money supply tends to become more valuable over time, unlike an inflationary currency that constantly loses value.

read more | digg story

Both of these pieces of legislation would be a benefit to those of us seeking shelter from the continuing weakening of the dollar; which is probably why neither of them will see the light of day. Still, nothing happens without effort.

The text of Ron Paul’s introduction of the Free Competition in Currency Act can be found here.

Common Sense 117 – Terrorists and Liars

Going through the backlog of Common Sense (with Dan Carlin) episodes that I wanted blog on.

Entitled Fanatical Deradicalization the first half of the show is about options in the War on Terror. Personally, I’ll stick to the observation that there isn’t any way to win a war on a tactic, any more than there’s a way to win a war on a substance or a market.

However, I thought about what would happen if we began using the methods described (Fighting terrorism with terrorists) in the second piece, essentially breaking the thought processes (or lack of them) that the terrorists currently use to justify their actions; deprogramming them and sending them back to their people to change them as well. That was back during the Clinton years when the terrorist tried to bomb the World Trade Center the firsts time. If it works, I think we should do it.

The first piece (by Gary Anderson) proposes an interesting method for turning the populations of the Middle East towards our cause by painting the terrorists in the proper light by buying ad time on popular TV stations in the area. But I have to agree with Dan that the more interesting proposition is simply letting the people in the region experience the return to Islam that the radicals want to impose on the Middle East. The suggestion was that we use it as a threat, I suggest we just vacate the premises and let the chips fall where they may.

Be careful what you wish for, it may come true.

The second part of the show dealt with lying Presidents and what their punishment ought to be. I’m solidly behind the idea of impeaching presidents. I think we should have started with Woodrow Wilson (The Federal Reserve alone is worth impeaching him over) and every President afterwards to the present day. All of them were impeachable, and at least some of them should have been (Clinton should have been removed from office. But not for lying about sex; talk about a minor charge) Let’s start now. It’s not to late to teach the bureaucracy that there are consequences to their actions.

Common Sense 116 – Voting for Cake & It’s Not the Environment, Stupid

Going through the backlog of Common Sense (with Dan Carlin) episodes that I wanted blog on.

I had to go digg up the article that Dan referenced in the first half of the show, it’s that good:

The big lie of campaign 2008 — so far — is that the presidential candidates, Democratic and Republican, will take care of our children. Listening to these politicians, you might think they will. Doing well by children has now passed motherhood and apple pie as an idol that all candidates must worship.

A moral cloud hangs over our candidates. Just how much today’s federal policies, favoring the old over the young and the past over the future, should be altered ought to be a central issue of the campaign. But knowing the unpopular political implications, our candidates have lapsed into calculated quiet.

read more | digg story

This guy is ‘spot on’ (as the English say) and he doesn’t pull any punches. Not even Ron Paul has had much to say on the subject, because what is there to say? Hey, old people, you’re going to have to give up your benefits? Hey, young people, we’re going to raise your tax rates another 40%? No, neither of these solutions work, and yet one of them will have to be imposed; and sooner rather than later.

The sad thing about the Social Security situation is the same story as the situation with foreign policy. Anyone who’s been paying attention knows the system is “broke and broken” but no amount of pointing this out to the politicians for the last 20 years or so has made any difference.

Bush’s half-hearted attempt to introduce ‘private’ (they weren’t, but that’s what they were referred to as) accounts early in his first term met with such a backlash from seniors and Democrats that I doubt anything will be done to solve this problem. It looks like the ‘third rail’ of the political arena will simply be allowed to ‘go to ground’ (bankruptcy) where it will be effectively be rendered harmless to the politicians who remain. Good luck with that.

The second half of the show involved the introduction of the Tata Nano, and the effect that industrializing the third world will have on the environment.

All the issues in this show are presented as having to do with can people vote against their own short term best interests, in favor of long term best interests of the world as a whole; or at least, a larger group than the single person casting a vote.

As far as Social Security goes; as the population ages, and as the taxes start rising on those who are still working, you will see cuts in benefits to the elderly. That move will benefit the people who hold the power at that point in time, and the citizenry they cater too. No amount of whining by the then shrinking pool of boomers will matter that much. Considering it was the boomers who failed to act when the problem became apparent, I’m not going to shed too many tears over the prospect, even if it’s my benefits that get cut.

However, the case for environmental degradation resulting from third world industrialization is hardly a cut and dried matter. Expecting the rest of the world to stay undeveloped just so that we in America can continue to enjoy massive levels of consumption is building castles in the sky. People are going to do anything to improve their lives, and if that means they need a car, they’ll be buying Nanos. Consequently, we may be growing crops in Greenland again in the near future, and sea levels my rise a few inches. Global warming isn’t what we should be worrying about.

I realize the average person prefers to be scared rather than informed; however, the briefest step back from agreeing to whatever draconian measures the enviro-whackos want to impose on us, will reveal several rational objections that make good arguments for doing something else entirely. Arguments like this one from CATO and Indur Goklany:

The world can best combat climate change and advance well-being, particularly of the world’s most vulnerable populations, by reducing present-day vulnerabilities to climate-sensitive problems that could be exacerbated by climate change rather than through overly aggressive Green House Gas reductions.

read more | digg story

The report is written in college level English, I’m sorry. I’ve listened to the audio, and the average person shouldn’t have a problem understanding that targeting greenhouse gas emissions (what environmentalists are doing when they worry about more cars on the roads) will produce a less positive result than targeting things like Malaria prevention, for example.

So, I wouldn’t ask the Indains and others to forgo buying automobiles; it’s a waste of time anyway. Either individual liberty (the ability to make choices for oneself) leads to long term survival for the species, or the species is doomed no matter how you slice it. Pretending that smart people (read as environmentalists) can save us from ourselves, if we hand our freedom over to them, is just another form of magical thinking.

It won’t work.

Liberty Dollar set to Move Up (again)

Got an alert in the inbox today from Bernard. Looks like my silver rounds will soon be worth a good bit more, again. I held eLD and ALD through the last move up, and it proved to be quite profitable. I’ll be holding ALD through this one as well.

I would be holding eLD, but the FBI stole it from the people who were storing it for me a few months back (I’m sure it was all just a misunderstanding, right?) Maybe we’ll get it back some day.

Here’s the text of the alert titled 30DMA Hits $16 – Liberty Dollar set to Move Up to $50 Silver which can also be found here.


Liberty Dollar Set to DOUBLE+

BINGO!!! Yesterday, February 7. 2008, the 30 day moving average (30DMA) for silver closed at exactly $16.00 for the first time…. And catapulted the Liberty Dollar into the 45 day slot to Move Up to the new $50 SILVER BASE!

Buckle UP! Silver is going to the moon and we want you all to come along. This is without a doubt – the third most important event for the little currency that could… Of course the first was its birth on October 1, 1998 and second was its serendipitous Move Up to the $20 Silver Base on Thanksgiving Day, November 24, 2005.

Liberty Dollar will Move Up on Easter Sunday, March 23 if the 30DMA for silver stays over $16 for 45 consecutive calendar days. Behold a new monetary system arises just as the US dollar descends into a pit of debt. Serendipity may strike again!

If you were onboard for the first Move Up then your money DOUBLED! This time it is even better! Now you can TWO AND HALF TIMES (2.5XY$) your money!!

Just imagine… In the same timeframe that Bushwacked has been president, the $10 Base Liberty Dollar will have Moved Up to the $50 Base and increased 500%…while the US dollar has lost 50%! What would you rather have? A currency that has increased FIVE TIMES or one that has lost HALF its purchasing power? Do you need a calculator?

Is there anybody opposed to doubling your money? Isn’t ‘protecting your purchasing power’ one of the key benefits of the ‘inflation proof’ Liberty Dollar? Absolutely! Just imagine what it could do for your family, your business, or your community! Just image what it could do for our great country!!

Is the Move Up some wild wacky idea to defraud you of your hard earned US dollars? Hell No. The Liberty Dollar defrauds nobody. It is the government money that is defrauding you!!! Since the day the Liberty Dollar was introduced on October 1, 1998, I have specified the exact monetary structure for the new currency to respond to higher silver prices and published the “Move Up” points:

Move Up point from the $10 to the $20 Silver Base is $7.50 30DMA completed
Move Up point from the $20 to the $50 Silver Base is $16.00 30DMA pending
Move Up point from the $50 to the $100 Silver Base is $41.50 30DMA future1
Move Up point from the $100 to the $250 Silver Base is $84.00 30DMA future2
Move Up point from the $250 to the $500 Silver Base is $211.50 30DMA future3

When the Liberty Dollar Moved Up to the $20 Silver Base all Liberty Dollars DOUBLED. Now, when the 30DMA for silver stays over $16 for 45 consecutive calendar days the Liberty Dollar will Move Up to the $50 Silver Base and all Liberty Dollars that you have will increase TWO AND HALF TIMES!!

Now for the mechanics: It would be beneficial for you to understand that time is a critical factor when designing or even considering money. Just as $20 today does not buy the same twenty gallons of gas as it did ten years ago, I incorporated time into the Liberty Dollar model twice. First by using the 30DMA instead of silver spot rate and second by lengthening the time the 30DMA must be maintained to Move Up to each new Silver Base. Whereas the Move Up to the $20 Silver Base was achieved after the 30DMA was maintained for 30 days, the Move Up to the $50 Silver Base now requires 45 days. The Move Up to the $100 requires 60 days and an additional 15 days per each Move Up.

As the Move Up point is so important, the Liberty Dollar uses an independent, third party source for its 30DMA. This definitive information is readily available, total transparent and easily verifiable by everyone. The 30DMA is one of the econometric stability-inducing features that protect the Liberty Dollar from the erratic actions of free market silver. You can check the 30DMA by simply going to ScotiaMocotta, which is a division of the Bank of Nova Scotia, a Canadian Bank, at: http://www.scotiamocatta.com/prec/pdfs/pm_daily.pdf. The 30DMA is listed at the bottom of page 2. And just above the List of Moving Averages, please note the chart for silver. All averages are up and the 100 day moving average is up very sharply. Double since March 2006! There is no doubt silver is headed to the moon and the US dollar is… well we all know… headed down.

And on the technical side, please note the Commentary on page one that states: “Silver’s outlook is more bullish than gold’s as it didn’t break its short-term up trend and most studies have yet to turn outright bearish. In addition, open interest has increased, which implies that the market remains somewhat confident on further upside in silver. Support comes in at the upward trend line of $16.44, while resistance comes in at intraday congestion of $16.93.” (Please note that both figures are well over the $16 Move Up point.)

Do you want to 2.5XY$? Get some Liberty Dollars… BEFORE it Moves Up. The last day may be Friday March 21 at 5:00 PM CST… as the Office will be closed on Saturday and Easter Sunday.

Remember: Doesn’t it just make sense that when the underlying commodity that backs the currency increases in value, shouldn’t the purchasing power of that currency also increase in value? Of course. And isn’t that the essence of an “inflation proof” currency? Absolutely! In fact, when you think about it, the only way the Liberty Dollar can accommodate higher commodity prices is to increase its Face Value.

The Liberty Dollar is a private voluntary barter currency. It is specifically designed to function dollar-for-dollar with the US dollar – regardless of how much it depreciates or how much silver appreciates – so you can protect your purchasing power in the market place. Does that mean that the Liberty Dollar should be used as “Legal Tender”, “Current Money” or “Coin”? No! Absolutely not! It is only to be used between consenting adults. You cannot pay taxes with it. Nobody is forced to accept the Liberty Dollar. But why would you want to use anything else?

So you don’t have to use the Liberty Dollar? Of course not! You can keep your head in the sand and your money in depreciating US dollars and lose your ass, your home, your business, everything that is denominated in US dollars. Is the Liberty Dollar opposed to the US dollar? Absolutely not! We love the US dollar as defined by the Mint Act of 1792. We love the US dollar that made the United States the greatest economic power in the world. We love the US dollar that represented real value and maintained its purchasing power. We are opposed to any money that is made out of thin air and rips off The People. That is morally wrong. And for the government to use that fiat money primarily for a ‘war of aggression’ is a sin against The People and an assault against world peace.

So what are We The People supposed to do? PROTECT YOUR PURCHASING POWER! Don’t sit around and watch your nest egg, retirement funds, college saving account, or even your weekly allowance disappear. You have no obligation to go broke to save the country, or the government money that is ripping you off!

Sure buying silver is the best thing possible. Yes, it is much better than gold. Sure it will be good for you and your family. But it will do nothing for our great country. Our country needs a value based currency and it needs it damn quick. That is why I designed and developed the Liberty Dollar in spite of being under criminal investigation by the FBI. So if you think I am a criminal, please do NOT get any Liberty Dollars!

CLOSING: A lot of great things are happening with the Liberty Dollar. Walk-in customers are way up. Two new RCOs just joined and others are in the wings. A new digital Liberty Dollar will be available soon so it will be easy to 2.5XY$ BEFORE it Moves Up!!! Amir Hirsch is closing out the last Ron Paul Chocolate Dollars for Valentine’s Day. Please order from http://ronpaulchocolate.com before Saturday and they should arrive by Thursday the 14th.

Can you type? You are invited to the Move Up Party!!! The biggest problem with the Move Up to the $20 Silver Base was keeping up with the orders. Seems like everybody wanted to DOUBLE their money. We anticipate this will happen again and are looking for about six people to come to Evansville for the Data Entry Party… Come for a day or two or more during the last two weeks of the 45 day slot: from March 10 to March 21. Your costs will be covered and you may even get a few 2008 Liberty Dollars to boot. Please email Sarah@LibertyDollar.org with PARTY in the subject field for particulars if you are interested in partying with the Liberty Dollar Team. Karen, no undercover agents need apply.

My fellow Americans: It is critical that we address the monetary problem in this country. But how? The government does not listen. All the politicians are a bunch of CFR “bellybuttons” except for Ron Paul. The IRS is a criminal gang. I am even under criminal investigation for trying to return America to value – one Liberty Dollar at a time!

The simple solution is for you to take your monetary matters into your own hands. After all – it IS your money. The quicker the better!! Buy silver if you want to protect your ass-ets. Get some Liberty Dollars if you want to return our great country to value. Just don’t sit there! Either change your money or lose it!

I know not what course you may take, but for me –
give me Liberty (Dollar) or give me death!

Bernard von NotHaus
Monetary Architect / Editor

Additional info about the Move Up is available at: http://www.libertydollar.org/ld/about/liberty-dollar-doubles.htm


As long as the spot price of silver stays above $16 an ounce, the Daily Moving Average will also stay above $16. Kitco chart link. Considering the upward trend of silver of late, I’m inclined to think that the move up will occur the first time that Silver’s DMA reached $16, this time.

The $20 move up DMA level was $7.50, and silver flirted with that price at least 3 times before finally staying above it for the required period. I’m betting that a repeat of this will not occur.

Considering the current weakness of the dollar, I’m beginning to wonder if the time to the next move up ($100 base, Bernard?) will be measured in years, or months?

What about the Losers?

Originally titled Austin, the Portland wannabe, this entry has morphed into an In Related News type column (with a tip of the hat to Dan Carlin) because Common Sense 113, What about the Losers asks the same questions that were being asked by Jeff Ward when he interviewed Austin Mayor Will Wynn (Editor’s note: it only took me 11 years to notice I spelled Will Wynn’s name wrong, and unfortunately I can’t find that interview online anymore. The link I had for it is dead. My Google-fu failed to turn it up anywhere else.) on Our Little Show a few months ago.

At the time, I was screaming at the radio “It’s because Austin desperately wants to be Portland!” but I think the answer will take more explaining than that. Probably quite a bit more.

First, let’s deal with Dan’s assertion that we live in a capitalist system. This is important because Dan’s point is quite valid; in a capitalist system the growth of the markets should be robust enough that even the least ambitious, least able to compete amongst us can be provided for charitably from the fat left on the table. The problem is, we don’t live in that system.

Ask any economist and they’ll hem and haw and finally explain that we live in a managed market system, a hybrid market managed from the top down with central controls placed there by government to ostensibly protect the investors/users/general population from the dangers of an uncontrolled market.

What those dangers are is anyones guess, because hindsight has shown that the failures of the stock market can generally be traced back to interference in the market by the Federal government, or by it’s monetary arm, the Federal Reserve (before the Federal Reserve the fluctuations in markets were probably an offshoot of the legalized theft that is Fractional Reserve Banking. I’m leaving that discussion for another time because this thing is almost a book already) Most of the other markets haven’t so much failed, as they were never allowed to fully bloom before being stifled by state and local controls placed on whatever resource or talent the market formed around.

But the controls do serve the purpose of keeping the markets in check (whether the controls are professional licensing, health inspection, zoning and planning, or just the good old Securities and Exchange Commission) Keeping the markets in check being indistinguishable from slowing growth.

So we don’t really live in a capitalist system, and it’s been getting less and less so for more than a hundred years now. We do still live in what is largely a meritocracy (which is better than the alternatives) but it’s a far cry from the kind of capitalism that most laissez-faire capitalists dream about, and the profit margins are getting leaner all the time.

If there’s limited profit (what it means to be lean) then there’s limited fat to provide for those marginal types on the fringe of society. And no amount of exhortation to buckle down and provide for them from outside is ever going to result in their getting more of what they need. Like a parent telling a child to be good and share, if there’s only one toy, the toy’s owner gets to play with it.

Globalization (Dan’s second point) was occurring whether we drafted and joined GATT, NAFTA, CAFTA, et al, or not. I would actually offer up the observation that the agreements appear to have been drafted to favor the staid multi-national corporations after the wilderness had been tracked by more nimble entrepreneurs.

[much like the stock tech bubble was burst just in time for established corporations to wade in and take over newly created tech industries. But it would be very black helicopter of me to say that, wouldn’t it?]

So blaming the state of affairs on these agreements suits me just fine. I just wouldn’t waste time kicking the scapegoat of Globalization (whatever that means) for the fact that you can’t make $30 bucks an hour doing tech support for (insert giant corporation’s name here) anymore. As Dan rightly points out “they have smart people in India too” and they’ll work for much less. Any corporation bent on reducing costs is going to outsource work in those sorts of circumstances, globalization incentives in place or not.

It’s not globalization’s fault, because that’s only part of the big picture. There’s also the consistent devaluation of the dollar (generally referred to as inflation) by spend-happy congressmen bent on buying their way into re-election at the top end of the government chain (not to mention crusading Presidents with Foreign Dragons to Slay) These actions reduce the purchasing power of the dollars you have left after your job was outsourced to India.

On the other end of the government chain, you have cities (like Austin) that have activist governments bent on achieving various goals, either for the enrichment of the powerful within the city, or to satisfy the security/comfort demands of the citizens, or both. In Austin, the government has used zoning, licensing, and control of the water/wastewater and road system, as well as what’s known as an Extra Territorial Jurisdiction (ETJ) to limit growth and prevent what city planners refer to with distaste as sprawl. The predictable results have been growth outside of city controlled areas (leading to congestion and a mad dash to toll all roads that lead into Austin) and a steep climb in real estate values within city boundaries.

I say predictable, because this is the same formula that Portland and other cities modeled after Portland have used to limit growth and encourage compact city centers. The problems with this model have been documented in CATO studies, which I have perused often enough that I end up in a screaming match with my radio when the Mayor is interviewed.

Traffic congestion, homelessness and poverty. All of these are attributable side effects of limiting road construction, driving up the cost of housing, and diverting public funds to programs (such as light rail and subsidized housing) that do not produce the benefits promised. When you couple that with multi-national corporations outsourcing employment to countries where three generations of a family live under the same (small) roof; and the devaluation of the wages that remain, you have the recipe for the near unavoidable disaster which looms on the horizon.

Hello, interesting times. The ancient Chinese guy I was just talking to mentioned you.


So, what about the losers? What’s the solution? A lot less government, and a lot less government interference. It’s what will occur whether we head that way voluntarily or not. We might as well plan for it.

On the local end it’s going to mean relaxing building restrictions at the city level and perhaps relying upon the licensed professionals to do their job without the city looking over their shoulder (an architect can dream, can’t he?) it means privatizing road ownership (road construction, contrary to popular belief, is already mostly private) so that real maintenance costs can be established and funded. Privatized mass transit systems (London’s seems to work just fine)

On the Federal end, who knows? Can Washington be reasoned with? Considering the battle in California over medical Marijuana (a clear states rights issue if I’ve ever seen one) I’d have to say it looks like no. Can the out of control bureaucracy be brought to heal? That remains to be seen, but also doubtful.

[I’d be interested to see what would happen if the states insisted on payment of federal debts in Constitutional money; precious metal coinage. I think the Fed would have a hard time winning that battle in court]

So the real question is “will the Federal government survive the collapse of the dollar?” (which appears to be underway right now. It’s been slow so far, let’s see how long that lasts. And yes, I’m being serious. When have you ever seen the USD trade at parity with CAD? I’ve never seen it, till now) I don’t think it can be avoided. If, by some machination of events beyond the average persons comprehension collapse is avoided, and the federal government continues, there’s no telling what it will look like. Better to not worry about events beyond our control.

As for the plight of the losers, I’ve been rolling this idea around in my head for years now. Since we don’t use real money anyway these days, and since the banks can create money out of thin air when they need it, why can’t we do the same thing for that portion of society that would do without necessities if they aren’t extended the equivalent of credit.

There would need to be a standardization or nationalization of accounts, so that each person would have one account (and only one account) into which his electronic funds are transferred when he works, and from which funds are drawn when purchases are made. But rather than having a lower point at which no more funds are available, as in today’s bank accounts, the loser hits the point where the cash card becomes a charity card. Businesses would be given direct tax write offs for extending charity, and charity would be limited to strictly defined necessities (such as utilities, food, etc.) If you want a large screen TV, sorry you’ll have to do without. If you became productive again, then after a set period of time your charity card would once again convert to a cash card, and you could purchase whatever you wanted with it.

Not a libertarian solution, but a solution all the same.


I can see several of my AnCap acquaintances bristling from all the way over here. So, why should I care if the losers do without necessities? If I don’t want to give them charity, I don’t have to. And that’s true, as far as it goes. This post is already too long, but I thought I’d touch on the issue of haves and have-nots (or winners and losers) because it’s the have-not / have quotient (and the correlative societal highs and lows of money and status) that defines whether a society can continue to function peacefully or not.

Too high a number and the have-nots are emboldened to take what they want from the haves; and not all of us are or want to be Joe Horn. Too low a number, and human nature takes over correcting the trend turning haves into have-nots through natural laziness.

So obviously, it’s in the haves best interest to act in advance of the outset of violence, by not allowing the number to get too high; and the easiest way to do this is to keep the low end of the have-nots from falling too low. Put whatever conditions you want on the charity that makes you happy (after all, this is an exercise in “what if?”) Sterilization of the lowest portions of society so as to prevent a blossoming of their ranks through reproduction, in the event that they go on charity status. Repayment of charity before cash status is returned. Whatever.

Just remember that the more draconian the penalties, the less effective the charity will be at mediating violence. Which is the point of offering it in the first place, if human decency isn’t enough of an appeal to move you.


Editor’s note 2019. So much bullshit, so little time. Be thankful I took the time to correct the former mayor’s name. The rest of this? Mostly smoke blown up my own ass. But, it was amusing writing it at the time. I will point out that my naivete concerning the motivations of the wealthy are on full display here. I fully expected them to be cognizant of the fact that there aren’t enough bullets in the world, even if you could speed load them all, to be able to kill every hungry, poor person lurking outside your window before they get you, when the payback time arrives. Apparently they think action movies are real just like everybody else does.

‘Euros Accepted’ Signs Pop-Up in New York City

When the Canadian dollar reached parity with the US dollar for the first time in living memory last year, I knew it was only a matter of time before this sort of thing started happening:

In the latest example that the U.S. dollar ain’t what it used to be, some shops in New York City have begun accepting euros and other foreign currency as payment for merchandise.

read more | digg story

Now, the only real question is, did this occur through manipulation (to facilitate the introduction of the Amero) or will the slide continue…?

Which would you prefer?

THE BIG ISSUE: $53 trillion in unfunded liabilities

I don’t think this issue can be talked about long and loud enough. It’s the 900 lb. gorilla in the room, and it’s hungry:

This means that every full-time worker owes a staggering $440,000, courtesy of government excess. Eventually, that debt must be paid, either in higher taxes, or in reduced benefits. These numbers represent a looming crisis of staggering proportions.

DownsizeDC

These are just current debt projections. If you add on all the programs that the various mainstream presidential candidates would like to tack onto this staggering debt load (like single payer health care. Just sign over your children and grandchildren, because they will never know a debt free moment in their lives) it becomes a complete order of magnitude worse.

If you want to know why the dollar continues to weaken, you need look no farther.

Downsize DC: Wisdom From the Past

I’m just going to quote the Downsize dispatch:

“Mr. Speaker, today the Chief Executive sent to this House of Representatives a . . . bill for immediate enactment. The author of this bill seems to be unknown. No one has told us who drafted the bill. There appears to be a printed copy at the speakers desk, but no printed copies are available for the House Members. The bill has been driven through the House with cyclonic speed after 40 minutes debate, 20 minutes for the minority and 20 minutes for the majority. I have demanded a roll call, but have been unable to get the attention of the Chair. Others have done the same . . .

“I want to put myself on record against procedure of this kind and against the use of such methods in passing legislation affecting millions of lives and billions of dollars. It is safe to say that in normal times. after careful study of a printed copy and after careful debate and consideration, this bill would never have passed this House or any other House. Its passage could be accomplished only by rapid procedure, hurried and hectic debate, and a general rush for voting without roll call.

“I am suspicious of this railroading of bills through our House of Representatives, and I refuse to vote for a measure unseen and unknown. … I want the RECORD to show that I was, and am, against this bill and this method of procedure; and I believe no good will come out of it for America. We must not abdicate our power to exercise judgment. We must not allow ourselves to be swept off our feet by hysteria, and we must not let the power of the Executive paralyze our legislative action. If we do, it would be better for us to resign and go home-and save the people the salary they are paying us.

“I look forward to that day when we shall read the bill we are considering, and see the author of the bill stand before the House and explain it, and then, after calm deliberation and sober judgment- after full and free debate-I hope to see sane and sensible legislation passed which will lift America out of this panic and disaster into which we were plunged.”

Powerful. We couldn’t say it better ourselves. But who said it, and when? Was it Ron Paul on the Patriot Act? Dennis Kucinich on the Iraq Resolution?

Actually, these words were spoken by Rep. Ernest Lundeen from Minnesota in March, 1933 upon passage of the Emergency Banking Relief Act.

This was the act which, among other things, authorized the Secretary of the Treasury to steal gold from the American people. The people received the “equivalent” of their gold in paper money, which was later devalued. 75 years later, America is still drowning in inflation, and it’s getting worse. We must restore the freedom of the people to to use gold, or any other commodity they mutually agree to, as money once again. Please tell Congress to pass the Honest Money Act.

But the power of Rep. Lundeen’s words resonate even today. The worst bills Congress passes are the ones they rush through unread with little or no time for debate. And in 2007, that was how virtually every bill was passed. In 2007, Congress was in session for 39 weeks. The figures are imprecise, but on an “average” day the House passed three bills amounting to about 100 pages of legislation.

The Senate’s pace was slower. Sometimes they spent a whole week debating one bill, and then passed dozens of bills the following week. But on an average day in session, the Senate managed to push through 1.4 bills and 70 pages of legislation.

Of course, there are no “average” days and no “average” bills, but it is clear that neither chamber takes the time to read and seriously deliberate the bills they pass. Many sail through the House with “suspend the rules and pass” procedures, while in the Senate many bills pass with “unanimous consent,” without the Senators even knowing what they consented to.

We can’t under-estimate the harm that unread bills have inflicted on the Republic. The Patriot Act was passed in a rush with scant opposition, and Patriot Act II was passed before its supporters discovered shocking provisions in it. The Real ID Act was attached to a bill funding the troops and sailed through the Senate unanimously, giving the people no chance to react or respond. And as we now know, the disastrous 1933 Emergency Banking Act was passed in a similar fashion.

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We can put an end to this. We can tell Congress what Rep. Lundeen said 75 years ago, and demand that they introduce and pass the Read the Bills Act. You can do so here.