Dollars and Sense – Inflationary Spending and Fiscal Insanity

Bobblehead DollThese articles have discussed money, monetary policy, fiscal sanity, and government spending several times this year.  Some have called me alarmist for raising fiscal sanity during a “Global Health Crisis.”  While COVID-19 (Sars-COV-2) is undoubtedly a viral disease with a 98%+ survival rate, I cannot in good conscience call this a “Global Health Crisis.”  The pandemic declaration was a political move, the mask mandating, business closures, and every other hysterical move have been carefully formulated to present a problem where none exists.  Has Sars-COV-2 mutated; absolutely, but the emotional hysteria has mutated far faster.

Dollars and SenseApathy

When you pass paper to a store clerk, are you spending money; no, you are spending confidence.  Your confidence in the dollar’s strength, as represented by a check, cash, money order, credit card, etc., is what is being spent.  Why was the Great Depression so lasting and detrimental; a lack of confidence in the US Dollar.  People who saved their money formed sane fiscal policies personally and acted logically lost their confidence in the US Dollar, and the dollar went into a great depression.

Since President Clinton, the US Government has been on a drunken spending spree and does not appear to be stopping unless the citizens demand they cease and desist!  What does this mean for you and me; everything costs more for two reasons inflation and interest.  When the government prints money, too much money increases prices, and too few goods chase too much money, resulting in people suffering.  When the government borrows money, the interest must be serviced; the interest will increase prices and usually absorb some of the extra capital on the market to bring down inflation.Lemmings 2

Except, Quantitative Easing (QE) is hindering the absorption of money on the market.  Hence America is witnessing something truly remarkable for the first time in financial history, the debt (principal), the interest, and the extra capital, all of these storms are combining into a major conflagration economically speaking.  Usually, at this point, a country begins to look for a place to go to war, which explains China and its expansionist policies in Southeast Asia and the Pacific Ocean.  Too much debt, too much interest, a military needing worked, and assets need to be stolen from other countries.  Typical historical thinking, war truly is grand larceny on a massive scale!

Where are America and China headed; let’s ask Czarist Russia, USSR, Nazi Germany, East Germany, China, North Korea, Italy, Venezuela, Greece, France, and who knows how many other economically unstable countries historically and presently.  Going to war will not solve this economic crisis, though some may try that solution.  The only solution worth advancing at this critical juncture economically is reducing the size of government, placing a firm halt on all government spending, and refusing the politicians to get into debt for at least two decades!  Yes, this means changing Social Security, Welfare, Medicaid and Medicare, and every other government benefit program to fit a reduced budget and smaller government model.  Failure to tighten belts for the next two decades will bankrupt America, and most of the world, making the Great Depression look like a summer picnic.Lemmings 4

Gold and Oil, real estate, Gross Domestic Products (the goods manufactured in America for sale), trade, all of these wealth tools and more cannot support the debt incurred, the money printed, nor the size of the government from the city and county to the White House.  As this trend continues, Wall Street will continue to be tumultuous, at best, and the confidence in the US Dollar will continue to slide.  But, as the dollar slides, which global currency will begin to take up the slack?

The Euro has discredited itself and is not worth the paper it is printed on.  China thinks they will step into the void and take up the slack with the Yuan, except their financial situation is almost as bad as Venezuela’s and Cuba’s, but their size and government type keep this hidden from the public.  Even though the Yuan is in junk status, the Communist government hides these facts; the truth is leaking out in higher trade tariffs and other global trade and finance costs.  Russia’s economic situation still has not stabilized with the fall of the USSR and will probably need another two to three decades until it can compete on the global economy again.Gravy Train 2

I heard a postulation that the Arabian Oil Rich nations of the Middle East would produce an OPEC-backed currency if the US Dollar fails.  I highly doubt this as a solution, but the potential is there.  Another person claimed the lack of confidence in the US Dollar would lead to the World Bank/International Monetary Fund (IMF) issuing currency for the world; boy, would that be a significant problem!  Yet, the American Dollar is being purposefully destroyed by the current crop of politicians, and nobody is standing up and declaring ENOUGH!

Inflation

The US Government, and many others globally, have increased their drunken spending since Jan/Feb 2020 to incredibly extensive levels and used a “Global Health Crisis” as the excuse.  Except when Ebola was sweeping the world, we did not have this level of insane spending and government intrusion.  Ebola is far deadlier, easier to spread, and yet the Ebola disaster is barely remembered.  Bird Flu, Swine Flu, SARS, MERS, all these viruses have had their time in the media hysterical spotlight, every single one of them is deadlier than Sars-COV-2, easier to spread, and they were never a cause for a global pandemic.Gravy Train

Inflation is caused by poor economic policy, where the government grants itself the ability to print money.  Inflation is not just money and monetary policy; inflation is also confidence, faith, and trust.  Inflation is how the government acts, thinks, and behaves.  Inflation is as real as COVID-19 and just as deadly as Ebola while being more problematic for everyone.  From Dec 2020 to the end of July 2021, inflation has increased the price of goods and services by 3.8%, seasonally adjusted, or 5.4% non-seasonally adjusted, which means that prices go up as a seasonal adjustment in the summer.

Fiscal Insanity

Consider with me an analogy; you live in a community of houses and pay a Homeowners Association (HOA) Fee.  Your neighbor has decided they can write checks on your checking account, and the HOA has granted them legal protection to write checks on your bank accounts.  Because your neighbor has legal protection, you sell off assets to provide the funds for your neighbor.  You sell to other neighbors letters of credit that you promise to pay interest on, provided your other neighbors hold those letters of credit for specific amounts of time.  Except, your neighbors stop buying those letters of credit over time because they do not like how your neighbor keeps writing checks and spending your money.  How do you keep this house of cards from blowing over and losing everything?

Tax BurdenAmerica is in this position right now!  Trend lines show a steady downward trend in the value of the US Dollar.  Inflation will keep increasing prices as too much money is chasing too few products on the market.  Debt needs to be serviced and interest paid.  But, when the interest payment is the only thing being paid, and the principal will also need to be serviced, where and how does the principal get serviced when the interest is absorbing all the monthly payments?  Simple economics, money once created and put into the money market, cannot just be absorbed or disappeared.  Just like food doesn’t disappear once consumed, the offal must come out and be handled responsibly.  Well, the dollar is in an offal position and needs responsibly handled!

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

The Proper and Improper Role of Government – Part 1

Several years ago, I tripped across a paperback book and felt to read the book.  It was written by Ezra Taft Benson, who was the 15th US Secretary of Agriculture, whom I respected for his keen mind; I felt compelled to read his book.  Mr. Benson, writing about the proper role of government, providing a running commentary about the founding of the United States of America, is worthy of study by every student as a part of social studies.  Before reading this book, I had not thought about the role of government, proper or improper. However, after reading this book, I came to understand why America is in such trouble and how the government is the perpetrator of the crimes against the citizen of America.

If they were missed, I have written articles about the US Constitution, the US Bill of Rights, the role of the “Rule of Law,” and other founding documents.  All these and more are essential or fundamental principles of understanding for discussing the government’s proper and improper role.  Please note, when talking about the proper and improper role of the government, I am not explicitly discussing The United States of America; but all non-Communist governments and many of the principles should be applied to communist governments to improve the situation for the citizens.

Private Property Produces Liberty and Freedom

Unfortunately, to fully appreciate all Mr. Benson is discussing, one must first understand the role of private property.  Charles Reich, an American legal and social scholar and an author while also a Professor at Yale Law School, wrote a paper every American citizen needs to read and be concerned over.  With the US Government changing the definition of private property and selecting winners and losers for government investment, the US Government radically changed and fundamentally destroyed the basic fabric of American law!  “Property is not a natural right but a deliberate construction by society. Like the Bill of Rights, property represents general, long-range protection of individual and private interests, created by the majority for the ultimate good of all” (Reich, 1964, p. 771-772)

Starting in the 1930s, during the “Great Depression,” changes were made to America’s methods of governance by the President, a willing media, including sycophants in the Senate and House, continuing a trend that began under President Woodrow Wilson (D).  Thus, establishing the Federal and State Government’s ability to rule by largess, picking winners and losers based upon obeisance to a bureaucrat’s whims, wishes, and will.  Reich lays out this history, walks the reader through the laws, and makes the case that because of democratic rule, America’s Republic has been reduced to a feudal system where the government decides who gets the largess and who does not.  With the Federal and State Governments making these decisions, businesses do not compete fairly upon their own merits but upon how much taxpayer money they can bamboozle from Uncle Sam.  Unfortunately, the entire system hinges upon reducing private property ownership and the freedoms private property allows feeding the ever-hungry beast of Government consumption.

The United States of America and every representative government can only provide freedom to their citizens if that country allows ownership of private property.  From private property principles comes every freedom and liberty enjoyed, as even the government must bow to the will of the people owning private property. So how did the government hijack your personal liberties and freedoms; well, there are a couple of wrongheaded Supreme Court cases, several Federal Court Cases, a complicit Congress with supermajorities, and a couple of presidents who were forward-looking and planning on stealing for personal gain.  The judicial interpretations opened judicial activism, released judicial restraint, and Congress stepped into the vacuum to protect itself from the people’s will.

One of the scariest ways personal freedoms have been stolen has been through owning a home but not owning the property under that home.  Homeowner’s Associations and the United Nations Agenda 21 actions have stripped personal property and made the homeowner pay ever-increasing homeowners association fees for the privilege of losing liberty and freedom.  All these actions, and many more, originated in the government actions under President Woodrow Wilson and were compounded by President Franklin D. Roosevelt.  Many will try and claim WWI and the Great Depression, and WWII triggered taking “bold action” through the legislative process.  What they mean was the Legislative Branch kowtowed to the Executive Branch, while the Judicial Branch twiddled their collective thumbs and began to legislate from the bench.  Never forget, the two presidents with the most executive orders are Wilson and Roosevelt, and this was even with a complicit media and friendly legislative branch.

Reich (1964, p. 773) implicitly details that the power to change the culture and definitions of private property and liberty started with judicial activism that led to government intrusion.  “During the first half of the twentieth century, the reformers enacted into law their conviction that private power was a chief enemy of society and individual liberty. Property was subjected to “reasonable [emphasis in original] limitations in the interests of society. The regulatory agencies, federal and state, were born of the reform. In sustaining these major inroads on private property, the Supreme Court rejected the older idea that property and liberty were one and wrote a series of classic opinions upholding the power of the people to regulate and limit private rights.”  Continuing, Reich (1964) detailed relevance and the conflict of having government contractors and bureaucrats inventing the rules to provide services or grant largess.  Concluding that “many agencies take action which is penal in all but name,” and how these penal actions are punishing the citizen through adjudication without a judge, jury, or trial.

To review, the US Government stole private property, abused the US Constitution and US Bill of Rights, and fundamentally changed America.  Private property is the source of freedom and liberty in a representative government.  By choosing to limit private property, many have never been able to possess the most basic of human rights and liberties.  Worse, the deck has been stacked to keep the average citizen from owning private property.  When the US Government used statehood to strip constitutional authority from the states to own their own land, America started a decline where private property produced liberty and freedoms.  These are crucial steps in the journey to understanding the proper and delineating the improper role of government.

Finally, Reich brings us to the summum bonum of the problem where the government, Federal and State, have been leading the citizen, the “Welfare State” as a “Right.”  Consider, “It is time to recognize that “the public interest” [emphasis in original] is all too often a reassuring platitude that covers up sharp clashes of conflicting values and hides fundamental choices. It is time to see that the “privilege” or “gratuity” concept, as applied to wealth dispensed by government, is not much different from the absolute right of ownership that private capital once invoked to justify arbitrary power over employees and the public”  (Reich, 1964, p. 787).  Who is smart enough to “know” “the public interest?”  Honestly, which political party, politician, business leader, or influencer would you select, always to know the “public interest” and work for the “common good?”

Without private property, the citizen will not find a secure place to consider how to vote and who to vote for properly. This has been designed into government to facilitate single-party rule.  I agree with Reich (1964, p. 787), “Above all, the time has come for us to remember what the framers of the Constitution knew so well-that “a power over a man’s subsistence amounts to a power over his will.” We cannot safely entrust our livelihoods and our rights to the discretion of authorities, examiners, boards of control, character committees, regents, or license commissioners. We cannot permit any official or agency to pretend to sole knowledge of the public good.”  Hence, before we can understand the government’s proper and improper roles, we must have liberty derived from private property!

References

Benson, E. T. (1995). The proper role of government: The Improper Role of Government. H. V. Andersen (Ed.). Heber City, UT: Archive Publishers.

Charles A. Reich, The New Property, 73 Yale L.J. (1964). Available at: https://digitalcommons.law.yale.edu/ylj/vol73/iss5/1

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

NO MORE BS: Calling Out Politicians

Rep. Greg Stanton (D) got called out on my blog and both of Arizona’s Senators, and previously I have called out the now Secretary of the Interior Deb Haaland (D), who was then a member of the US House of Representatives.  A comment was passed along to me that I only pick on politicians with (D) after their name.  I will call out every single politician who does not honor their oath of office or represent their constituents.  Politicians in America be on alert; I will not tolerate this behavior anymore.

America deserves better from those elected to public office, from the dog catcher to the school board and from the city council to the president’s office.  Every office-seeker is accountable to those who elected them.  Not to the special interests, banks, businesses, and other entities are pushing agendas and money into their pockets through legal but ethically questionable and illicit schemes.  Across the globe, in every democratically elected government, too many politicians are abdicating their jobs, refusing to do their jobs, endlessly asking questions to avoid doing their jobs, and exercising every excuse possible to waste time and collect a paycheck from the taxpayers.  Hence, be on alert; the electorate is awake, taking notes and passing names around.

To the Speakers, Majority and Minority Leaders, your role is two-fold, represent who elected you to office, and lead your political caucuses in the respective houses of government.  Speaker Pelosi (D), we have regularly informed you that you are not doing your job.  While the following applies to the US Senate specifically, it speaks to all majority and minority leaders and is worth knowing:

“Elected at the beginning of each Congress by members of their respective party conferences to represent them on the House or Senate floor, the majority and minority leaders serve as spokesmen for their parties’ positions on the issues.  Working with the committee chairs and ranking members, the majority leader schedules business on the floor by calling bills from the calendar and keeps members of his party advised about the daily legislative program. In consultation with the minority leader, the majority leader fashions unanimous consent agreements by which limitations of time for debate are agreed to and divides that time between the parties. When time limits cannot be agreed on, the majority leader might file for cloture to shut off the debate.  The two leaders coordinate party strategy and try to keep their parties united” [emphasis mine].

We need to be precise; a majority and minority leader are not US Constitutional offices but were created to aid the organization of government bodies.  These positions were first designed and accepted by democrats to benefit President Woodrow Wilson’s legislative pogrom.  One of those American Presidents who was quietly destroying America, one legislated article at a time!  Worse, even with a complicit Congress, the two-term president wrote 1803 executive orders and proclamations!  President Woodrow Wilson, the highest writing, end-running around the US Constitution President until eclipsed by President Franklin D. Roosevelt and WWII; thus, leaving President Wilson #2 on the list of presidents ruling by executive fiat instead of legislated law.

Feel free to disagree, but the following are considered accomplishments of President Woodrow Wilson (D).  I find direct lines of congruence from the problems of today and President Wilson’s complicit Congress, and only if you intend to destroy America would I call these “accomplishments.”

      • Including an “ambitious agenda of progressive reform that included the establishment of the Federal Reserve and Federal Trade Commission.”
      • He won a Nobel Peace Prize for his work on the Treaty of Versailles, which directly led to WWII. Winning a Nobel Prize for creating global problems reminds me of another Nobel Peace prize winner-President Obama (D)!
      • President Wilson is responsible for starting the “League of Nations,” the foundation of the current United Nations. We all know how well that has worked out for America!
      • As part of President Wilson’s progressive reforms, “Congress passed the Underwood-Simmons Act, which reduced the tariff on imports and imposed a new federal income tax.”
      • With the help of friendly Congresses, President Wilson saw child labor laws, an eight-hour day for railroad workers, and government loans to farmers all passed as legislative accomplishments, which set up the animosity between railroad and government workers against every other employee in America.
      • President Wilson used his roots in the confederacy to resegregate the US Federal Government, overturning many hard-won concessions. Republicans had fought to secure and destabilizing America while creating the problems of the 1960s Civil Rights movement.

As a dedicated independent voter, I call out any and every politician who is not doing their job, or advancing a government pogrom that steals liberty, destroys freedom, or persuades people to give up their rights for “government protection.”  The United Nations is killing the world and needs to be stopped by any legal means necessary!

The tax system in America is the reason why employees cost too much to compete with other countries.  The tax system provided government bloat to allow the government to see us, the citizens, as property, pick winners and losers and abuse the US Constitution.  With the amount of trade America does with the world, why do we pay so much in taxes at the local, county, state, and federal levels?  The income tax system is regressive, which means it hurts innovation, job creation, job growth, and the entrepreneurial spirit that has made America since the colonial era.

Want an interesting fact to chew on; America did not need an income tax when it was installed under President Wilson and a complicit congress.  The Military-Government Complex created during WWI was a tragedy that has never been corrected, and a farce force-fed to the American people, and who has paid the price, every taxpayer since President Wilson!  Why does Congress give itself tax breaks; because they know that if they paid the same as everyone else, they would pay too much in taxes.

The Great Depression was a farrago of government ineptitude from beginning to end!  The government used the suffering of millions of people to create a government jobs program, the military-industrial complex, and government debt as a means of stealing freedom, robbing liberty, and breaking the American soul!  If you are as tired as I am of the politicians, join me in calling them out.  Call out the perks they voted for themselves, the retirement benefits that make a CEO’s “Golden Parachute” look like a paper kite.  Call out the politicians who refuse to respond to their constituents.  Call out the spending and tax politicians at every level of government.  Demand your liberty and freedom back!

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.