Why is this important?  Because Government has destroyed the value of our money, and the way of life we once enjoyed.  It is not how much you make, but what that money will buy you.  A hundred pennies 20 years ago, compared to having 100 pennies today, just isn’t the same.  All the economic wonks point the fact that we make more money as inflation rises.  Well I have news for them, this is bullshit.  I moved furniture to earn money through high School and College and made a whopping $11.50, 12 years later, I have moved on, but those movers are still making 10 dollars an hour.  You economists should look those workers in they eye and say inflation helps you.  The truth is it only helps those who have first access to it, ie banks.

So as the penny is laid to rest, so goes the American Dream.  Next the nickel, then the quarter, then the dollar.  How long until we retire the dollar and Americans are still making that $10 dollars an hour, how long can this squeeze by the Fed and Government last before something gives?

First he discusses his legislation which literally took American Dollars, and paid for the Pro Democracy Iran movement to OVERTHROW the current regime.  Explain to me how this in its self isn’t an Act of War?

Second, his plan is to prevent war by going to war?  By bombing them strategically and destroying their capabilities of creating a nuclear weapon.  The only problem is that Iran is a member of the nuclear non proliferation treaty, has inspections being done, and isn’t even close to having a bomb, yet we should go to war, risking thousands to millions of lives and what is left of the wealth of our country to stop them?

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Wake up America, get your country back.

Dr.  Paul has clearly articulated that he dissavows those letters, and didn’t review them, and feels. 

Most importantly are his actions.  His voting record is clear, he favors freedom over creating special classes.  Study his positions and the meaning of why he votes the way he does, and you will be far more enlightened.

Liberals and Progressives that follow Monetarist / Keynesian economic belief systems think that the money supply needs to grow with the economy, or there will not be enough liquidity to keep up with growing demand.  This is a dangerous view on money, and opens the door to the middle class robbery taking place.

First, let’s consider what is money.

Money is the general medium of exchange, the thing that all other goods and services are traded for, the final payment for such goods and services on the market.

Got it, so it is not dollars, it is not gold, it is not credit cards, it is ANY medium of exchange. It could be goats, radishes, or a gold coin. It is simply a store of value that is used for exchange. The problem with a radish is simply that it loses its value once it begins to rot. This is why Gold is considered a great store of value, it will never rot, and it is not easy to create more ( watch Gold Rush on Discovery and you will see just how tough it is).

Now let’s visit the Poker Game analogy of money again. The scenario is simple, you and another person buy into a 2 way poker game. You both agree to put in $100 dollars cash, and get 100 white chips in return each. The pot now holds $200 dollars total, and there are 200 white chips. The game is set to begin, and your opponent makes a suggestion, lets double the white chip count to 200 white chips each, for a total of 400 white chips, he suggests that by doing so, you will both have a chance at winning more, the problem is no extra money was added to the pot. Adding more chips without adding more dollars to the pot does not increase wealth, it simply devalues the value of one chip by half.

In the above example, it is the same as life, whether the pot has dollars in it, or diamonds, the value of the chips is only based on what it is backed by. If instead of adding chips, the two players added $100 each more into the pot, then the value those chips represent just doubled. The point is to show that the supply of money does not matter, it is merely what backs it.

So what is the problem with printing money then, it should have no effect? It is true, in the game it had no effect because both players are each given an equal amount to compensate for the difference in chips, and all is fair. Now enter the government and its monopoly doing the same to an entire nation. The problem is that distribution is not fair, nor is it equal.

When the government (The Fed) prints money, they do not send every American an check equal to the amount that was printed, so that every citizen benefits equally, instead it goes to those who are favored, and connected. Particularly banks, and government workers, and contractors for the government, at the expense of all others.

Let’s go back to the poker analogy. If we have 2 players, and each has paid $100 dollars in, and were each given 100 white chips, the value of those chips equal $1 dollar each. Now introduce the evil government dealer, who will not take a chip from you on each hand, instead they simply add 1 white chip into their pocket each hand that is dealt. After 100 hands, the evil government dealer, now has 100 white chips, while player 1 and 2 have 50 each. At best the players can now only get back their first investment, while the evil government banker has half the money. Go another 100 hands and both players have zero and the evil government banker has all the chips, and now all the money. The players are left with nothing, and the evil government banker wins. All that is left now that the parasite has killed its host, is the parasite.

That example may seem a little dramatic, but regardless of who the dealer is, whether it is government or someone else who is connected, they benefit from this game, at the expense of everyone else. When inflation exists, someone is getting the difference in value, and it is never the middle class.

I will close this post with a simple thought, why do we Americans accept the idea that our money is the worst investment, if we put it under the mattress for 10 years, we know it will have lost value. This is slowly killing our middle class the same way the frog boils away slowly. Our dollar should be considered a good investment, and we should be able to bury it in the yard, dig it up, and have it purchase more not less in the future. Wake up America.

Here is a simple explanation as to why this country is broken, and how to fix it.  It all starts with the Federal Reserve, and it’s banking policies.  For some reason, liberal thinkers believe lower prices are bad, and need to be fought tooth and nail.  Prices like the goods us 99% purchase fall as better productivity gains are made.  Consider the price of a plasma TV, there are few on sale for under $400 dollars for black Friday, just ten years ago, I remember 5 grand.  Every American is ecstatic they can actually afford to have one or a few of these great items in their home, yet liberal thinkers and those on Occupy Wallstreet say no way, we need inflation targeting of 2% or more, prices have fallen for the last few years (probably because the 99% can’t afford higher prices) yet they think this is great.

Why is inflation so evil for the 99% and so beneficial to the so called one percent, simple, it is the 99% that has no pricing power in this economy.  A business can simply raise prices by 2% or 3% percent to cover the cost increases caused by inflation, that doesn’t hurt them, they just pass it along.

The Banksters, are on the receiving end of this printed money, hey someone has to get the difference in what was destroyed, in this case, two percent of the currency of the world, that’s right they  get the delta.  Why, because they with help of the Federal Reserve, are the ones creating money out of thin air, with the policies of this government.

Let’s see how Grandma is doing, well the last couple of years gas, food, and other key expenses have increased in cost, does anyone remember $3.30 a gallon for gas as normal?  Unfortunately grandma has no pricing power as mentioned above, the Fed has made her CD pay .000001 % for all those years of hard work and saving, and her SSI is indexed to the fake government inflation stats that guarantees lower payouts.

Joe the employee, well he has not gotten a raise in the last 10 years, it is tough to watch your raise never come and gas prices rise.

Now let’s step back and imagine a world with an honest currency, that didn’t debase, it actually just held it’s value.  Prices would naturally be going down on items we use.

Joe the employee, has not gotten a raise in ten years still, however every item he purchases costs less, so Joe doesn’t need a raise, because the money he is paid in has gained in value for him.

Grandma, well her CD is paying much better since banks wouldn’t be able to print money, they would actually have to pay those who let them use it.  Her SSI benefit stays the same every year, and every year she actually buys more with it than she could of the year before.

Wow, such an easy solution, end the fed, and end unsound money, wake up Occupy, you advocate the enemy of the people.

I think we need to adopt a slippery slope concept for any idea.  Our slippery slope needs open doors and lead to more and more freedom from government.  How we can do this?  Here is my idea, we need to accept incremental wins towards freedom.  Every time we pass a new law or regulation, it needs to move us along closer to being independent.

Circle back to health care.  How do we inject this slippery slope idea into it, we need to move towards taking back our freedom?  The first step is opening up the availability of access to different policy choices, and hand the keys back to a consumer.  Allowing to shop across state lines, while giving tax credits for purchasing your own insurance, and giving individuals a subsidy of tax dollars into a health savings account.

Now most purists like myself would say, no way government should not be involved, we put our foot down, and just vote no because it is not constitutional.  Giving tax subsidies to others to fund their health savings accounts, is Socialism.  Though I agree with that premise, it forces us into an all or nothing mode, while progressives are always glad to take small wins, knowing their slippery slope will lead to more government intervention.  As I see it, it would be constitutional in the sense that we have reduced the level government is involved in our system, opening the door for its eventual exit.  This creates the necessary condition for freedom, and eventual free market, since subsidies can simply be rolled back, now that the market is functioning closer to how it would under free market conditions. If we were to take small wins, and begin creating the conditions of freedom, chunk by chunk, one day we may actually have our country back.

We simply need a Libertarian Slippery Slope Policy

The biggest problem I see as I read comments everywhere, is the lack of understanding of what Ben’s policies are giving us.  Let’s start with the simple assumption that Government is always wrong, and to find the solution, let’s consider the opposite of what is happening.  This is usually the easiest way to finding a practical solution to most problems created by Government.

The number one complaint I hear from people is that the Middle Class Wages are not keeping up with prices.  This is true, and over time if prices rise at 5% and wages grow at 3%, the truth is, you didn’t really get a raise at all.  Your 3% actually lost you 2% of your income that year.  In order to consider it a raise, it would have to be over the real inflation level.  Imagine I want my career to grow, I would have to ask the boss  for a raise every single year for a raise more than inflation, at some point my luck will run out, I won’t get my raise.  This means each year I am highly likely to lose money every year I work.  Well this has a very chilling affect on the middle class.  This is what is happening to the middle class on a grand scale.  Every year the treadmill we all walk on is moving, and our raise just never is enough, eventually the treadmill wins, you can’t watch it forever.

What would the opposite of this policy be, deflation.  This sends shivers down old Ben’s spine.  The world may end is what we hear.  First of all what causes deflation, there are two forces at play, the first is the good type, and that is productivity gains.  Consider a plasma tv once cost 5000 dollars, now it only costs 500.  This is because of gains in productivity, this is a very good thing.  Another example would be a farm, what once took thousands of men months in a field, can be done by machines at a fraction of the time and cost.  The second type of deflation which is bad, and what Ben worries about is credit deflation.  This is entirely different.  Credit deflation comes because Ben blew a massive credit bubble, and as Fractional Reserve Banking Fails, as it always does because it is a Ponzi scheme, it destroys money at an exponential rate.   We can get into this another post.

Now consider what the good deflation would be like for our workers and middle class.  Falling prices would mean that I never need to ask for a raise.  Prices would fall relative to my income, and that would be the same as me actually getting a raise.  Over time, prices are much lower than what I make, this gives me buying power, this creates the middle class of our country.  We need to get back to a Money Standard where it can’t be printed out of thin air.  Inflation is a wealth transfer to those who can get a return greater than inflation, while the average working class has no chance.  We need Fire BEN, and bring back free market principles to our monetary policy.  We need deflation not inflation as the Academic idiots will have you think.

Liberal policies and conservative war mongering has come home to roost, spending what you don’t have by definition comes to an end.  I am not an expert, but it doesn’t take an expert to open your eyes, and realize things we buy everyday cost far more than any raise any of us have received the last 10 years.

People need to realize a dollar is only  worth what it buys, and as the Fed prints and Government spends, our savings is being destroyed.  Once the real wealth is wiped out, just like in a household, the standard of living will drop next.  We need to wake up quick and stop this madness.

Government Waste

I have a park near me in which you can hike up a mountain, it is really nice.  It is raw nature, with very little improvements from any human, however at the entrance of it, I have to pay 5 dollars to a Park Ranger, who collects money to fund this very expensive building guarding the forest.  It serves no purpose, nor does the Park Ranger.  I literally am paying him for nothing.  If this is what will be shut down, I say bring it on.