If Alabama voters choose freedom, will lawmakers step up?

MONTGOMERY, Ala. – A simple amendment to the Alabama state constitution could set the stage for blocking implementation of the Patient Protection and Affordable Care Act in the Heart of Dixie.

Alabama voters will consider Amendment 6 on Nov. 6. The legislatively-referred amendment would free Alabama citizens from any requirement to participate in Obamacare, or any other compulsory health care program.The ballot language reads as follows:

Proposing an amendment to the Constitution of Alabama of 1901, to prohibit any person, employer, or health care provider from being compelled to participate in any health care system.

Yes ___

No ___

“We want the people of Alabama to know that if we’re going to join a program like that we’re going to have it on a ballot, and you and me and everyone will be able to vote and decide if we want to join a national health plan or not,” Rep. Phil Williams (R-Madison) said.

If passed, the amendment would place the onus on the Alabama legislature and executive branch to block implementation of the PPACA and shield their citizens from federal mandates.

The proposed amendment had to garner a 60 percent majority in both the House and the Senate to go to the voters.  A simple majority on Nov. 6 will approve the amendment.

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The Weight of the Fed in the Voters’ Decision

In science, there are lots of facts, but only a few theories. Fewer still, perhaps, are the “laws” of science, one of which is the Law of Conservation of Matter, which holds that matter can neither be created nor destroyed. The laws of science, however, aren’t good enough for the Federal Reserve — you see, the Fed creates money.

Since the financial crisis of 2008, the Federal Reserve has created trillions of new dollars. The Fed creates money when it buys assets, which is called “quantitative easing,” or QE. The assets the Fed buys can be “whatever assets it likes: government bonds, equities, houses, corporate bonds or other assets from banks.” For instance, when it launched QE2 in Nov. 2010, the Fed bought $600B in U.S. Treasury bonds.

Just as the Fed creates money, it also destroys money. The Fed destroys money when it sells assets. When the Fed sells its assets, it takes money out of the system; that money is then no longer out in the economy where folks can use it. (I’m not sure if the Fed hits the delete button when the checks for its sales clear, or if that even matters.)

One would think with so many trillions of new dollars pumped out into the world that “price inflation” would erupt. That hasn’t happened because the Fed’s new money isn’t circulating; it’s “sitting on the sidelines.” That the Fed’s new dollars are idle may be a boon, respecting price inflation. For if commercial banks were indeed loaning their new money out, the number of dollars in the system would be even greater than what the Fed has created. That’s because of the money multiplier of our “fractional reserve” banking system. But, if the Fed’s new money started to be used in the economy, price inflation should return. In which case the Fed would need to end QE and begin what analysts call the “exit strategy.” 

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