Sound Money – 2013 May Be “Do Or Die”

The headlines out of Europe continue to underscore a painful reality.  The present global monetary system, which is built upon fiat money and a distorted application of Keynesian economic theory, has entered the final phase of existence. This phase is marked by loss of confidence in the fiat scheme, reluctant consideration of alternatives, and the decreasing effectiveness of new policy initiatives designed to hold the system together. The economic hardship that accompanies this phase is now evident in Europe. It is only a matter of time before it is unleashed on this nation.

We were warned of this outcome centuries ago.

George Washington’s words to a Rhode Island Senator echo across the centuries.

“Every lover of his country will therefore be solicitous to find out some speedy remedy for this alarming evil. There is no possible substitute for the loss of commerce. Our first grand object, therefore, is its restoration….   But if in the pursuit of the means we should unfortunately stumble again on unfunded paper money or any similar species of fraud, we shall assuredly give a fatal stab to our national credit in its infancy. Paper money will invariably operate in the body of politics as spirit liquors on the human body. They prey on the vitals and ultimately destroy them….  Paper money has had the effect in your state that it will ever have, to ruin commerce, oppress the honest, and open the door to every species of fraud and injustice.”

This truth is still valid in the 21st century, yet is fully understood by very few. Words such as “ruined,” “evil,” “oppression,” “fraud,” and “injustice” are seen as partisan rhetoric in the battle for control of the Federal leviathan – and the paper money that flows so freely to it via the Federal Reserve. Clueless politicians on both sides of the isle do not recognize that this flow of money will soon cease to exist, along with the power it buys. The vacuum left will create a power grab of historic proportions.

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Even When You Win You Lose

The degree to which someone will tolerate federal tyranny depends on if it is directed at them or someone else.

Both the left and the right use the power of government to push through their political agendas but nowhere is that more evident than at the federal level. With each new election no matter which side wins, the balance of power always tilts in the direction of more restrictions on individuals and diminution of the states.

In recent years, both parties have effectively used the federal government to cajole, bribe or force the states into submission with unconstitutional laws. But one issue has eluded the left, the elimination of the laws concerning marijuana and medical marijuana in particular. With repeated assurances from candidate Obama, that he would respect state laws legalizing medical marijuana the left felt that the War on Marijuana was over. Then with the election of President Obama and Democrat majorities in both houses of the Legislature, they knew that they had won.

Or had they?

The best-case scenario was the elimination of all federal marijuana laws or at the least non-enforcement. But what has transpired in the last year is the just the opposite, enforcement on all fronts. The more states implement new more lenient possession laws and legalize use for medical conditions the harder President Obama’s DOJ comes down on providers.

The left could not depend on conservatives or those that professed belief in limited government and expanded individual freedom. They knew that those professed beliefs were only for public consumption especially when Election Day was fast approaching; otherwise, it was Big Government Nanny State as usual. But how could the President not only abandon them but also become their biggest foe?

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Republicans Join Democrats to Save Corporate Welfare (Again)

Rep. Tom McClintock (R-CA) introduced three amendments to the recently passed Energy & Water appropriations bill that would have eliminated a slew of business subsidies at the Department of Energy. Unfortunately, House Republicans once again teamed up with their Democratic colleagues to keep the corporate welfare spigot flowing.

From The Hill:

The largest spending cut proposal came from Rep. Tom McClintock (R-Calif.), which would have eliminated the Energy Efficiency and Renewable Energy account at the Department of Energy and used the $1.45 billion in savings toward deficit reduction. Like other Republicans, McClintock argued that this account needlessly spends money on questionable private investments that have not led to any measurable returns. But the House rejected McClintock’s amendment in a 113-275 vote, in which 113 Republicans voted for it but 107 Republicans joined every Democrat in opposition.

From a second article from The Hill:

Rep. Tom McClintock (R-Calif.) proposed ending all nuclear energy research subsidies to private companies, which would have saved $514 million and used that money to lower the deficit. But the House rejected that amendment in a 106-281 vote that divided Republicans 91-134. McClintock also proposed language cutting fossil energy research subsidies, which would have saved $554 million. But the House killed that amendment 138-249, as Republicans split again 102-123.

A few comments:

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