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.

COVID-19 – Authoritarians, Storm Troopers, Liars, and Thieves

Angry Grizzly BearSince February 2020, the world has seen COVID-Authotirarians, Storm Troopers, Liars, and Thieves rise.  I think it is time to start naming names and being specific that we will no longer accept this detestable behavior from government, media, community, bureaucrats, and those who have constantly been aching for a chance to exert authority over someone else!  Too often, I have witnessed these ignorant savages trying to overcome common sense and legal boundaries in the name of a survivable viral disease because the atmosphere has allowed the rise of stupidity masquerading as “Health Policy!”

The Secretary of Veterans Affairs

Monday, 26 June 2021, the US Mail delivered to me a letter from the Secretary of Veterans Affairs (VA), Secretary Denis McDonough, and cosigned by Acting Under Secretary for Health, Dr. Richard A. Stone MD.  Two people who were selected by the fraudulent president Biden for their political adroitness and not for their brains, experience, intellect, or even manners, and the letter received is proof!  Imagine sending a letter to all US Veterans using an attitude of childishness and the faux superiority of the intellectual elite to compare getting the COVID-19 vaccine to serving in the US Military, “AGAIN!”

Angry Wet ChickenWhat was the desired intent of this despicable piece of self-righteous trash?  I have had three calls to date from two different VISN’s and VAMC’s requesting me to get vaccinated, neigh demanding me to get vaccinated.  Yet, the VA cannot even answer simple questions about my concerns for the vaccination, including future sterility, why vaccinated people are only catching the DELTA variant, how the vaccine interacts with medications already being taken, the neurological issues and heart issues from receiving the vaccine, and the list goes on and on!  But the VA wants to send me a letter talking down to me and my intelligence trying to promote the vaccine and claiming this is like serving in the US Military again!

Quoting Colonel Potter, M*A*S*H 4077, “Bull Feathers!”

Governors who do not understand the Separation of Powers or the Rule of Law!

Governor Michelle Lujan Grisham, governor of New Mexico, Governor Gretchen Whitmer, Governor of Michigan, Governor Gavin Newsom, Governor of California, Governor Andrew Cuomo, Governor Phil Murphy, governors of New York and New Jersey respectably, and too many more who act like tyrants, think like spoiled children and run their state’s like the Federal Government is their personal piggy bank and all the citizens are private property.  We, the citizens, are sick to death of being held captive to your ignominious and deleterious policies, stupidity, and damnable insanity!  You have disgraced your offices, demeaned the rule of law, and distanced yourselves from any political redemption.Apathy

I look forward to the day when you are held legally culpable, accountable, and individually responsible before the bar of justice for your behaviors, actions, double-dealings, and waste of taxpayer funds!  You named, and those unnamed who are cohorts in crime, have been the cause of unemployment, businesses shuttering, economic disaster, all for personal gain and individual ego, and your reigns of terror are, hopefully, soon to end in Federal Court and an Orange Jumpsuit!  You have betrayed the honest citizens in your states, and when they awake and arise, blessed change will follow, for there is nothing more dangerous than an honest man betrayed!

US Senators, US House of Representatives, and Every Legislator Elected in the United States

cropped-bird-of-prey.jpgEvery one of you should be ashamed!  Each one who has sat by and watched your governor or president be the flaccid media mouthpiece of cheap science, faux interest in public health, and have voted to create inflation, destroy businesses, livelihoods, and communities, while cheering the destruction of law and order, you also need to be held accountable for your culpability in this most disgusting and distressing event, COVID-19!  I absolutely require your retirement packages, repayment of all funds, and a dishonorable discharge from public service for every one of you!   Why have so few of you even asked the simple questions regarding COVID; for example:

      • Why is COVID different from every other viral disease in the world?
      • Why do we need to “fast track” a vaccine using untrusted, untried, and unknown technology?
      • Why is a Chinese Viral disease able to shut down economies, close businesses, close churches, and close everything but big box stores?
      • What is different about COVID, a viral disease less dangerous than any other viral disease shipped from China with a higher survivability rate, able to throw the entire world on its ear?
      • How did Fauci go from approving Hydroxychloroquine in research to being against Hydroxychloroquine for the same COVID viruses he wrote peer-reviewed research papers?
      • Why was common-sense medicine thrown away for personal suffering at home until those susceptible to COVID were dying?

You were elected to represent the best interests of ALL your electorate, not the special interests, Big-Tech, Big-Pharma, Big-Box retailers, but the common citizens, and you refused to perform your primary function!  Legislators have only two jobs, write common-sense laws that support the best for all citizens, honoring the US and State Constitutions, and scrutinizing the legislative branch!  That is your entire job, and too many of you have failed to even show up for work.

Yes; you who have sat around and done nothing to protect citizens from run-away government are guilty, culpable, responsible, and need to be held accountable in front of a judge for your lack of job performance!  Justice demands you to be held responsible.  You will be held liable and accountable.  I long to see you in distinctive clothing, carrying sandwich boards advertising your crimes, picking up trash, pulling weeds, feeding the hungry, and doing other public services until all the funds you have squandered, and the pain you have inflicted has been paid off!Plato 2

Neighbors and Bureaucrats

America has always come together in difficult times, relying upon our neighbors and communities for strength and support.  But those who have used COVID as a means to exercise dominion, creating rules and policies at a whim, demanding obeisance, and using fear of a public health emergency instead of logic and calm-headed reasoning should be utterly ashamed of yourselves!  I have watched neighbors, friends, families torn apart by COVID Storm Troopers who have used faux science, media talking heads, and the most abysmal behavior exercising control, and this behavior must cease immediately!  When government fails, bureaucrats lose their voice.  Well, the government has failed, the bureaucrats have lost, and it is time for a reckoning with the citizens who have been cheated, defrauded, and penalized!quote-mans-inhumanity-2

Neighbors and Citizens

Do you realize that you have had money stolen from your pockets through inflation, taxes, and a run-away government?  Do you understand that through media talking heads, faux science, and out-of-control legislative branches of government, your liberties, rights, and freedoms have been stolen and replaced with socialized government?  In fact, the socialization of the government began before COVID, and this was done to directly penalize you for crimes you have never committed and enlarge the pockets of career politicians!  Are you aware of how close the US Constitution has come to being irrelevant, overtaken by a socialized/communist government?  How concerned are you that your heritage, your legacy, and your family are about to be wiped out through government actions taken in capitals and applied on main streets, and the bureaucrats are laughing all the way to the bank!

VaccineCOVID is the virus with the highest survivability of ALL the Chinese viral diseases unleashed since the early 1990s; yet, COVID is the only virus to impact the world, as we have witnessed since Jan//Feb 2020.  Why is that?  Why is COVID powerful enough to change governments to demand green/health passports to enjoy food and drink in an outdoor café?  Businesses owners, why was COVID allowed to close your businesses?  None of the other Chinese Viral diseases were allowed to close you down; why was COVID allowed?  The Ebola outbreak in the last years of Pres. Obama was insufficient to close schools, businesses or demand health checks, and health passports; why was COVID given this honor?

What is Politics?

Knowledge Check!Politics is too often a word with so much baggage; people become confused and stop listening after hearing the word politics.  According to Webster:

As a Noun, “the activities associated with the governance of a country or other area, especially the debate or conflict among individuals or parties having or hoping to achieve power.”

  • The activities of governments concerning the political relations between countries.”
  • The academic study of government and the state.”
  • Activities within an organization that is aimed at improving someone’s status or position and are typically considered to be devious or divisive.”
  • A particular set of political beliefs or principles.”
  • The assumptions or principles relating to or inherent in a sphere, theory, or thing, especially when concerned with power and status in a society.”

As a Verb, politic/s is derogatory and is defined as “engaging in political activities.”

From Old French Politique “political,” Latin from Greek Politikos, and Politẽs “citizen” and Polis “city.”  Thus, we have described the term politics in all its glory and inhumanity.  Is the term more understood?  Politics is a descriptive tool used to identify certain human activities where power is sought, and devious means and divisive gestures are employed to obtain that power.  Every action tied to securing power through devious means and divisive gestures is politics or political, meaning derogatory.  For those needing more, derogatory is “showing a critical or disrespectful attitude.”quote-mans-inhumanity

COVID has only EVER been about POLITICS!  Meaning that those exercising political leadership positions have a derogatory view of you; the common citizen, those of us who elected them to power.  The politicians are in the “political game” to demean, abuse, and destroy you.  Mad yet?  Feeling betrayed?  We, the citizens, need to restrict our consent to be governed, recalling all the politicians and demanding they be held accountable for creating the mess America is in!  I am not talking about being violent, I do not condone any violence, but I demand the Rule of Law be applied to those who have abused the law, usurped power, and exercised dominion!

© 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: Chapter 4 – Tax Freedom Day – Do you know why this is important?

Working DollarIn 2019, Tax Freedom Day was 16 April 2019.  For those not in the loop, Tax Freedom Day is the day all Federal, State, County, and Local taxes are paid from your paycheck.  This date gets further into the new year every year, and with the amount of inflation seen since 16 April 2019, you can bet that Tax Freedom Day will shortly be in the middle of May or July.

What is Paper Money?

Dr. Clarence Carson wrote an article about paper money and the US Constitution, quoted heavily below.  Paper Money, “… Paper that was intended to circulate as money but was not redeemable in gold and silver was technically described as bills of credit at the time of the Continental Congress and writing of the US Constitution and US Bill of Rights. The description was (and is) apt. Such Paper is a device for expanding the credit of the issuer.”  The credit of the issuer is improved, not the benefit of those forced to use the Paper as credit.  Hence, the US Government, to improve its credit, began printing money, and the problems in American Economics took off like a rocket sled on greased rails!Plato 2

Paper Money only has value when the person holding that Paper has confidence in the government printing that money.  In every nation across the globe, the only thing keeping value in the paper currency is confidence in the government by citizens paying taxes.  Hence, the problems with depressions, the confidence in value are shaken, and the holders of Paper Money become restless and lack confidence that their money is valuable.  Bills of credit, Paper Money conveying the value of debt have been around for a long time, as discussed in a previous article on money.  Why did the USSR fall; the currency had been worthless for years, and when the citizens had finally had enough, the government fell apart.  A fitting tribute and pattern to be heeded from history if we, the government owners, cannot get the government to cease and desist forthwith!

Government and Paper Money

The US Constitution, as originally written, forbids the US Government from printing paper money why; because of how fast the government abuses this power, creating inflation.  The Continental Congress was well aware of government abuses with Paper Money, thus restricting the Federal Government to coinage and tying the value to the gold standard.  Inflation is nothing more than a hidden tax, where the government controls how much value your money is worth.  Every person using US Dollars to make a purchase pays this tax.  Thus, by the time a consumable product has been paid for in a store, that tax, inflation, has been paid multiple times, and the consumer is always worse for every point of inflation the government allows.

IronyDid you know that the Federal Government allows 2% inflation every year as a “target?”  Consider this for a moment; the government wants your money and calls this tax a “good thing” for the economy.  Thus, your prices for everything increase 2% or $.02 every year because the government wants it to.  The 2% devaluation of your money is part of the Federal Reserves’ “Dual-Mandate” to achieve 100% employment and price stability.  Do you see any logic in making money less valuable as a means to improve employment and stabilize prices?  I don’t!  Now, consider this, inflation has hit a this year (2021) and has not stopped climbing.  Worse, inflation is expected to continue to grow as the government prints more Paper Money, which will eventually end in a depression preceded by massive deflation of the value of the US Dollar.  Keep in mind; inflation has become a global problem, as the majority of governments spent money they did not have during the pandemic.  Imagine lemmings racing for a fiscal cliff.

Lemmings 5Josiah Quincy wrote George Washington “that there never was a paper pound, a paper dollar, or a paper promise of any kind, that ever yet obtained a general currency but by force or fraud, generally by both.”   Yet, Congress still refuses to learn the lessons taught during the Continental Currency.  Debts, runaway inflation, legal enforcement to demand paper money be accepted, all of these lessons were experienced by the Founding Fathers, with Rhode Island being the Continental equivalent of California for bad fiscal policy and idiotic fiscal enforcement.Tax Scheme 2

The founding fathers met during an economic period of deflation, which quickly became a severe depression caused by states issuing paper money that was useless.  The founders “hoped to erect a system that would endure, and to do that, they wished to guard against the kind of fiscal adventures that produced both unpleasant economic consequences and political turmoil. Paper Money was reckoned to be one of these.”  Paper Money, without the backing of silver and gold, has led to speculation, inflation, deflation, cycles of economic depression, and Congress essentially stole the right to print paper money and borrow from the citizens unconstitutionally!  This cannot be stressed enough; there is a direct causal relationship between Congressional action, Executive Orders, and the economic problems America is suffering, including the bondage of debts insurmountable and the abuse of tax schemes!  All of which were powers strictly limited in the US Constitution because the founders knew the government would abuse the power of Paper Money!Bait & Switch 2

History shows that when paper money was discussed, the states overwhelming voted to remove the power to print money from the US Government, seeing this as the best method for long-term economic success in America.  “The vote was overwhelmingly in favor of removing the authority of the United States to emit bills of credit. The delegates voted by state, and 9 states voted in favor of the motion while only 2 opposed it. (New York delegates were not in attendance, and Rhode Island, of course, sent none.) It is a reasonable inference from the discussion that the delegates believed that by voting to strike out the words, (from the Articles of Confederation, which made up the bulk of the US Constitution), they had removed the power from the government to emit bills of credit.”  It is important to note that allowing states to issue bills of credit, print their own money, or stamp coinage was also forbidden.  To avoid the economic crisis, the founding fathers were in the middle of when framing the US Constitution and the US Bill of Rights from the Articles of Confederation.  How many problems, and how much lower would your taxes be if the Federal and State governments had simply followed the law instead of stealing rights and powers from the governed?

Facts About Tax Freedom Day

IRSPlease note, the federal deficit, state deficits, pension crisis, student loan debt crisis, and interest are not included in the numbers quoted below.  The following information comes directly from the Tax Foundation (linked above):

      • Tax Freedom Day is a significant date for taxpayers and lawmakers because it represents how long Americans as a whole have to work to pay the nation’s tax burden.
      • This year, Tax Freedom Day falls on 16 April or 105 days into the year.
      • In 2019, Americans will pay $3.4 trillion in federal taxes and $1.8 trillion in state and local taxes for a total bill of over $5.2 trillion, or 29 percent of the nation’s income.
      • Americans will collectively spend more on taxes in 2019 than they will on food, clothing, and housing combined.
      • If you include annual federal borrowing, representing future taxes owed (interest on the debt), Tax Freedom Day would occur 22 days later, 8 May.
      • Tax Freedom Day in 2018 and 2019 was five days earlier than it was in 2017, primarily due to the recent federal tax law, the Tax Cuts, and Jobs Act.
      • From 1930 to at least 1995, Tax Freedom Day has taken 1.27 days longer per year to reach. – I do not have an updated reference for this information since 1995.
      • In 2019, on average, it took:
            • 42 days to pay the income taxes
            • 26 days to pay payroll taxes
            • 15 days to pay sales and excise taxes, not including surcharges and government fees for services
            • 11 days for property taxes – states control this, some municipalities, it took a lot longer
            • 5 days for Corporate Income Taxes
            • 6 Days for other taxes that always get passed along to the consumer.

Tax BurdenI have read economic reports from noted minds in economics that claim had the dollar not been loosed from the ties to the gold standard, America could not have produced the tools needed to win WWII.  To which I continue to claim, as Colonel Potter from M*A*S*H so aptly stated, “HORSE HOCKEY! and BULL COOKIES!”  Having Congress issuing massive letters of credit, borrowing tremendous sums of money, and the economic fallout remains a millstone about the financial neck of this country.  How much longer will Americans pay for debts created during WWII?  What about the ever-increasing debt burden and interest that is driving prices and taxes ever upwards?

Knowledge Check!The US Government has acted improperly since establishing the Department of the Treasury and the Internal Revenue Service.  Not just improperly but illegally under the US Constitution as drafted.  Illegally, immorally, and unethically towards the founders, and distorted the intent of the US Constitution to protect America from runaway government debt and inflation/deflation/depression cycles common when issuing Paper Money.  This is the utter truth, and until this problem is rectified, removing paper money is the right thing to do, even if it means some financial hardship!  America can survive financial difficulty; we cannot survive the bondage of runaway debt, interest that sucks all the GDP, and the socialism projects being paid for by tax dollars to buy votes from envious people looking for “equality and fairness.”

© 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.

$1.8 Trillion Annual Deficit – The Problems with Biden’s Budget

Angry Grizzly BearWith gratitude to the National Conference of State Legislatures (NCSL), their analysis of the proposed budget was broken down, and some sense was made.  Not that the news is logical, acceptable, or palatable, just that the budget documents were broken down, which was helpful.  We start with the most bass-ackwards aspect of the budget by asking one question, “Where is the money supposed to come from?”

The 2022 Budget Proposal left President Biden’s desk requesting Congress to spend $6 Trillion and add $1.8 Trillion in new deficit spending to the bloated debt the government already owes.  “Who is going to buy the bonds and make money on this debt?”  When a person employs a search engine, asking this exact question, many answers come forward, and some do not make any sense.

Peter Schiff stated:

The government doesn’t have money that it doesn’t take. Any dollar that the government spends is a dollar that the private sector can’t spend or can’t invest. The government has to take money out of the economy before it can put it back in. Nobody seems to understand this basic point because they see the Fed creating money, and they think, well, we just print money. They don’t realize that when they print money, they destroy the value of the money that’s already there. So, they’re not adding new purchasing power. They’re just redistributing it” [emphasis mine].

Thus the first problem with America’s debt and proposed budget transparent; there is no money that government can spend unless it first forcefully removes it from the owner.  That is theft, or as we recently discussed, legalized theft.  The Supreme Court of the United States (SCOTUS) has ruled that legalized plunder, legal theft, or forced taxation are the price we pay for civilization, thus making legal the government’s actions to steal money.Government Largess

Let me be clear; I am not an economist.  I select several very bright and experienced people to help explain things to me.  However, I can help others with less interest in economics understand what is happening in America right now to answer the question put forward, “Who is buying America’s debt instruments?”  The simple answer is that the Federal Treasury is buying the debt instruments, as the whole world sells their bonds and other American debt instruments.  What the Federal Reserve is doing is called “monetizing debt.”

Monetizing Debt

Gravy Train 3The definition of monetized debt is as follows. “Debt monetization or monetary financing is the practice of a government borrowing money from the central bank to finance public spending instead of selling bonds to the private sector or raising taxes. It is often informally and pejoratively called printing money or money creation.”  Money can only be created in two ways: selling products and services and lending money where the borrower pays interest.  While there are many different debt instruments, i.e., credit card, home loan, student loan, bonds, Treasury Notes, etc., the principle remains the same: you either sell goods and services to make money or lend money and make money on the interest.

Why does monetizing debt matter?

Two simple reasons the government allows debt to be monetized.  To hide debt, it doesn’t want the public to know about, and to absorb cash on the market as a tool to fight inflation.  Here’s the problem, there is too much debt on the government’s books to hide it from the public any longer.  Add to that the sheer volumes of cash in the marketplace after handing out money during COVID, and the Federal Reserve will monetize debt.  Even if the chair of the Federal Reserve denies monetizing debt, debt is being monetized.Burning money - THE JOSIAH BARTLETT CENTER FOR PUBLIC POLICY

In short terms, your pocketbook is going to take another hit on the chin, and possibly two.  First, your interest rate on privately held debt, credit cards, student loans, homes, etc., is going to go up, all while making lenders nervous and refuse to lend money.  Second, inflation is already making the dollars held less valuable.

Inflation first; inflation is the devaluation of dollars.  The government floods the marketplace with cash, and the currency you hold will drop in value.  For example, recently the inflation was reported to have been 4.6% higher year-over-year.  This announcement was made in April 2021, so all the money you earned last year suddenly became 4.6% less valuable this year, all before the interest rate increases affected those dollars.Inflation - 8 Things Everyone Ought To Know.

Case in point, the US Government sent me $1000 in January; I held onto those funds due to a move that was coming and spent the money in June.  However, between January and June, inflation moved up at a steady pace, and when I went to spend that $1000, it was only worth $850.  That is the power of inflation in your pocket.

Have you asked for a credit increase recently and been denied?  What about your credit limits on your credit cards, have they shrunk?  Both are indicators that the lenders refuse to lend due to the tremendous risks caused by fiscal insanity in the Federal Government.  What about home loans, have you had to produce more documentation, prove more income, and work harder to qualify for a loan?  What about student debt?  The government controls the lending of student debt.  Even here, the Federal Government cannot demand a lender loan money to student’s and many students have found their college expenses grow, and their ability to borrow shrunk.Inflation pickpocket | Cayman Compass

In a simple fact of life, every household in America understands perfectly. When your credit scores go down, your ability to borrow reduces, and it becomes harder to meet all your bills every month.  Every city, county, state, and even the Federal Government should know this lesson, but they refuse to believe problems arise when credit scores go down.  All because those elected believe they can tax some more, and the money magically appears.

Does money magically appear in your pocket; of course not!  It must be earned through working, selling goods and services, or trading your time for employment with an employer for a paycheck.  Does the law allow you to write blank checks, kite checks, backdate checks, or simply float a check waiting for a future payday; of course not!  Yet, this is what the government is doing right now with your money.  The government is spending money, promising the lenders that a future payday will be theirs, but the government has to spend money to get money.  Does that excuse work for you when the electric company, gas company, cellphone, and other bills arrive?A Helpful Chart : How Inflation Changes Mortgage Rates

The most heartbreaking statement I have heard in a long time was recently made by a physician’s assistant, who claimed, “Aren’t we all just one paycheck from disaster?”  The simple truth, mostly, yes!  Studies exist that talk about financial resiliency in America.  Financial resiliency is all about being able to weather a patch of trouble without losing your possessions in bankruptcy.  The conclusions were all but unanimous. Along with most industrial nations, America has no financial resiliency due to government fiscal policies that hinder saving money and the need to live on credit cards to keep the basics of life paid for each month.

When inflation is stealing the value of your money, no wage can compete with government theft, all before taxes.  Add in tax laws that are counter-productive, job-killing, and increase the cost of doing business, and the job you have becomes tenuous at best.  Add in the hidden debts the government is trying to hide, and nobody in America is making money.

QuestionWhat about those who consider themselves “Rich?”

The same problems you are having with inflation are the same problems everyone is having with inflation.  Let’s go back to my $1000 that became $850 through six months of inflation.  We all spend the same money, and inflation is killing everyone’s dollar equally!  Hence, I beg you, do not allow the media hype about rich versus poor to derail the point.  Inflation and monetized debt are killing the US Dollar, which is why so many foreign investors have dumped their US Debt instruments for safer financial shores.

While some people have more financial resiliency than others, everyone’s dollar is dropping in value.  Inflation and low financial resiliency mean making budget cuts to charities, hiring someone to maintain a lawn, and a host of other ways and means American’s share our money.  It can mean turning off services, weighing how much fuel can be used, and a host of other belt-tightening decisions.  All things the government should first be doing, and they refuse.24+ Inspirational Quotes For Unemployed - Audi Quote

Yours and my liberty and freedoms depend upon stable economic policy, firm fiscal policies, and elected officials scrutinizing the government for waste, fraud, and abuse.  Yet, what do we regularly find; fraud, waste, and abuse!  The Department of Defense has lost multiple trillions of dollars; not a single politician is asking for an audit and an explanation or is willing to withhold additional appropriations until the lost money is accounted for.  The Department of Veterans Affairs continues to mismanage funds, misappropriate funds, and waste money like overripe fruit; yet, still, we have zero interest from the politicians elected to scrutinize government.

I repeat Peter Schiff, only for emphasis:

The government doesn’t have money that it doesn’t take. Any dollar that the government spends is a dollar that the private sector can’t spend or can’t invest. The government has to take money out of the economy before it can put it back in. Nobody seems to understand this basic point because they see the Fed creating money, and they think, well, we just print money. They don’t realize that when they print money, they destroy the value of the money that’s already there. So, they’re not adding new purchasing power. They’re just redistributing it” [emphasis mine].

Inflation Quotes | Inflation Sayings | Inflation Picture Quotes - Page 2In redistributing your money, the government has proven they are the problem, and the solution begins locally!  Change your mayor, city council, county board, school boards, and every other elected official.  Getting the local governments in fiscal shape allows state governments to begin practicing fiscal health and sanity.  Then, we put people into the Federal Office more interested in scrutinizing the government than in writing endless laws and abdicating their legislative role to the executive bureaucrats and the judicial branch.

Knowledge Check!The budget put forth by President Biden is the height of insane, and I have only covered less than 1/10th of the budget problems in this article.  Granted, I covered the most egregious problem, but the fact that the legislative branch is even negotiating a compromise is beyond insanity and borders on criminal negligence!  We, each citizen of a representative government, must stand and tell our representatives NO MORE!  No more fiscal insanity, borrowing to buy votes, entering into debt obligations that make captives of unborn millions of other people.  No more will we allow them to buy votes to maintain power.  End the financial abuse of the taxpayer; your wallet will thank you!

© 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 3

Bait & SwitchThere many ideas I embraced as a child that brings me short mentally and cause some discomfort.  The biggest of these was the support of labor unions.  As a kid, I thought labor unions were the best thing since sliced bread.  I learned in K-12 how the labor unions had ended child labor, gave us weekends, Federal holidays, and the 8-hour day, among other tremendous and notable accomplishments.  Until I lost my job to a labor union guy who took four times as long to complete work, complained horribly and sent me to the unemployment line.  I never understood what he had to complain about, times were hard, and I lost a good job to a labor union member.

ApathyBecause of the hold, the Labor Unions have on government, the line between government policy and labor union influence is generally so blurred that confusion is bred as to why things work the way they work in government.  Unfortunately, every country with a representative government and labor unions has the same problem.  Labor unions are entirely Marxist in their ideology, but to keep the masses happy, instead of communism, we get rampant socialism instead.  J. T. Murphy writes specifically eloquently on the ties between socialism and the labor unions.  Frankly, I have never understood how a labor person can swear they love freedom and America while supporting tooth and nail their labor unions’ Marxist and socialist agendas.

Inflation and Socialism, plus the Captivity of Debt

Public Employment Retirement Costs Are At "Tipping Point"Public-sector labor unions are the number one reason many states in America have seen their credit ratings drop.  The debt of the retirement packages and pensions is a millstone around every state’s neck.  This is an absolute reality proven time and time again.  The pension crisis is so large that Forbes keeps coming back to this topic several times a year.  If you would like a primer on the public pension crisis, go here.  The public pension crisis is mentioned solely because it remains the number one budget item for too many states.  With that much money owed, the debt runs the state’s fiscal decisions, not people, and brings up the captivity of debt.

Look up the principle of “usury” in historical texts, and you find usury occurs when interest is charged on money borrowed, which creates captivity.  TheWalletcoach.com eloquently details how debt is captivity.  The oldest of historical texts, the Old Testament, is vehemently against charging usury of brothers and family members, but strangers being in debt captivity was okay.  Today, the confinement of debt, specifically the public pensions, leads the politicians like a goat to slaughter. But, unfortunately, none of the politicians can find the time to formulate a plan, gather their fellow politicians, and fix the problem.  Debt, to the height of the public pension crisis, creates inflation and leads to socialism, as the government runs out of other people’s money to pay for the failures of previous politicians to be fiscally literate and fiscally responsible.  Add in the labor unions’ consistent sticky hands, and the local and state governments are in deep trouble.  Add in the Federal Government’s debt obligations, and money trouble is a catastrophe!  Please note that catastrophe is not an “If” or “when;” it is a current issue right now!National Debt Graph + Bush-Reagan Voodoo Video - zFacts

16 March 2019, Tom Del Beccaro, writing an opinion piece for Fox News, produced the greatest missive I have ever seen tying the principles of debt captivity to inflation and governments becoming socialized!  Historically speaking, Mr. Del Beccaro is 100% correct that the socialization of Greece and the fall of the Roman Republic are both tied to government debts. However, the Founding Fathers in America knew history, were literate, and they feared what would happen to this Free Republic (if we can keep it) when the government is allowed to rack up debts!  Every single publication I have on the Founding Fathers, and the Founding of America, come back to the bondage of debt and the problems with government debt. However, when the population demands “free benefits” from the government and uses their voting power to elect only those who keep the “Gravy Train” coming, socialism has been achieved in all but name!Government Largess

That fact alone should scare every member of the American Experiment into correcting their government!  Yet, what do we find, the exact opposite!  Frightening does not entirely cover my feelings here!

Socialism, Taxes, and The Workplace

Gravy TrainReturning to the pattern discussed on 16 March 2019, Tom Del Beccaro, writing an opinion piece for Fox News, discussed how taxes are a knee-jerk reaction to “keep that gravy train running.”  Therein lay the root causes for how socialism has been promoted in the workplace and how high taxes will eventually go!  I have written about this relationship for a long time, but please allow me to refresh memories.

In the United States, the Government Agency tasked with employment, employment laws, and employer responsibilities is not the National Labor Relations Board (NLRB); by statute, it is the Department of Internal Revenue Service (IRS).  The NLRB is only there to handle labor unions, labor union growth, and labor union law.  The IRS defines what an employee is vs. a contractor or knowledge vendor.  Worse, the IRS rigidly protects this relationship as a key to preserving the government’s interest (tax dollars) in keeping socialism in the workplace.  Some of my earliest articles deal with these exact principles and the socialized employee structures in which each worker and business is demanded to participate.Gravy Train 2

Upset with how your employer treats you, both on and off the employer’s property, there is only one place to put the blame, the IRS.  The IRS states the employer can invade your privacy, in your home, as an extension of “Risk Control” because your employer agreed to the IRS’s demands to pay taxes.  Your rights, freedoms, and liberties are curtailed, culled, and clipped in the workplace because the IRS demands the employer play ball with them, and your liberties are the price you pay for a paycheck.  Every time I see a labor union complaining about how the employer treats them, I want to shake the stuffing out of the leaders, for it is not the employer but the IRS that should be struck down and disbanded!  Yet, the NLRB will always side against the employer, and the labor union, a Marxist organization, wins, the IRS wins, and the employer and non-union employees lose. As a result, socialism in America becomes more powerful and influential.

Socialism and Mothers in the Workplace

As a means to improve the strength of the family in society, several religious organizations would love to see mothers provided the power to stay home.  Yet, socialism, as a fundamental operating principle, that all able bodied people must support the state, K-12 educators can rear kids, and the government acquires drones who do as they are told.  High fuel prices are no longer discussed on the nightly news because the government needs every able-bodied and disabled person working and asked the media to find something else to discuss.Plato 2

Why does the current president keep ducking questions about inflation; because the higher inflation goes, the higher prices are demanded, and the more people will rely upon the “Government Gravy Train.”  Unfunded liabilities (kited checks) are acceptable to socialists as a means of controlling the populace and keeping people in the game.  Higher taxes from inflation are good when it controls those in society who would raise their heads and ask questions under the thumb of totalitarian control.  If mothers returned home, how fast would demands for improved schools become the big issue in local politics, again?Gravy Train 3

My wife, a single mother due to divorce, while raising her two kids, relates stories of gathering mothers in Seattle to fight the school board and win.  Bewitched (1964-1972), the TV show reflects several times where Samantha got involved and changed local politics.  It used to be expected in local politics for mothers to have the ultimate last word on worthy politicians for whom to vote.  Yet, by increasing prices, mothers had to go to work.  It is now standard for politicians to get elected whose only desire is to keep socialism going, stealing liberties and freedoms while pontificating that the other party is at fault for your suffering.

Knowledge Check!I repeat, only for emphasis, the IRS remains the most influential, nefarious, and deadly threat to America.  America, what I am proposing will be a culture shock. It will turn many people onto their heads. It will appear anathema, all because we, the citizens, have watched the government become stronger and us the citizens weaker for so many generations.  But, the reality remains, we own the government, the government has been abusing us, and the time of big government to solve all the problems from a broken shoelace to fixing the weather has to end!  We must believe, gather knowledge, and act as a conjoined whole to make the necessary changes.

© 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.

Audemus Jura Nostra Defendere – Revisiting a Principle!

Angry Grizzly BearAlabama’s state motto has been used previously to discuss maintaining and defending our inalienable rights as provided by the deity and ensconced into law.  Well, after the week America has had, it is time to revisit this principle and ask for your assistance in raising our voices in defense of American Law.

Audemus Jura Nostra Defendere” – “We dare to defend our rights,” also translated as “We Dare to Maintain our Rights.”

The second sentence of The Declaration of Independence is long but influential and partially quoted below emphasis mine:

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.”

You have a right to life, and yet the government, bureaucrats, and organizational leaders are trying to do precisely this, take your life, steal your right to pursue happiness with or without a vaccine that causes death, and treats people unequally based upon the vaccine.  More than 600,000 Americans have lost their lives through failure to act and caused COVID to be worse than it should have been.  Worse, there are factors actively striving right now to continue to strip your liberties, chain your children to debt captivity, and much worse.  Do you dare to defend your rights?  Do you dare to maintain your rights?  If not, stop reading right now.  If so, pay attention, America is in the most danger it has ever faced, and your ability to stand and defend and maintain your rights is critical to saving America.Apathy

America this week learned that colleges are stripping student rights, liberties, and freedoms to demand they obtain a vaccine that is less effective due to the youth of the students and is causing heart problems in Israel, Canada, and America.  Your children are being ordered to obtain the COVID Vaccine, and none of the politicians are standing up and screaming, not for my constituents!  Does anyone else wonder why we have Constitutional liberties being stolen, and the politicians are silent?Vaccine

Now, consider what the fraudulent president assured America of, “If there’s one message to cut through to everyone in the country, it’s this: Vaccines are safe.”  Yet, at the start of their lives, young people are experiencing heart problems from these “safe” vaccines right now!  What will we learn in 5 or 10 years about the long-term health effects of the COVID Vaccine?  The AstraZeneca vaccine is not permitted in America, as of the president’s speech on 17 May 2021.  Yet, we are shipping this vaccine all around the world.  The same vaccine that was never “officially” tied to blood clotting problems in Italy and other European countries.  Why?  The clinical trials for the vaccine strictly refused pregnant women or those women wishing to become pregnant, but all women are being encouraged to get vaccinated.  There is a health danger, and the vaccine is the root of the threat.Life Valued

I repeat myself only for emphasis; I am not “Anti-Vaccine.”  I am a concerned American who is already taking several prescription drugs. Unfortunately, none of the manufacturers can answer simple questions about the vaccine and how these drugs interact with my medication.  My wife sent me the following; want to know more information, watch the video.  It is well worth your time.  Plus, the video opens more questions about the mRNA vaccine technology, whether the COVID Vaccine is a vaccine, and whether you should exercise your right not to inject something questionable into your body.  I am not telling you to act one way or another, but I encourage you to ask providers tough questions before allowing the jab.Plato 2

In a pretty hushed-up report this last week, we learned that prices were up almost 6% from a year ago when inflation was problematic enough to be part of the presidential races.  Now, inflation in April was up 4.6%, and the Federal Government was still throwing cash into the marketplace.  Debt continues to skyrocket; your local political leaders are debating who has the authorization to spend the money the Federal Government just threw at them.  Yet, no one asks how high inflation will be by year’s end or where the money is coming from.  The only way to maintain our rights is to ask more challenging questions and demand answers from those supporting the flagrantly destructive policies of the current political leaders!

Knowledge Check!The powers who think they can control the government consider themselves above the law, and they are responsible for the more than 600,000 direct COVID-19 related deaths and the more than 14,000 COVID Vaccine deaths.  Is your right to life sufficiently strong enough to motivate you to action?  Will you defend your family and extended family’s rights to life?  Look at the links, look at the data, ask questions, and then make your mind up regarding your right to life and your pursuit of happiness with or without the COVID Vaccine as well as the soon-to-be rolled out boosters, updates, and additional chemicals.

NO FearYou have a right in America; you and I possess the right to refuse our consent to be governed.  I have publicly stated I have rejected those in power my consent to be governed.  Join me; let’s demand the government stop before America is lost!

References

Flythe, J. E., Assimon, M. M., Tugman, M. J., Chang, E. H., Gupta, S., Shah, J., … & Zonies, D. (2021). Characteristics and outcomes of individuals with pre-existing kidney disease and COVID-19 admitted to intensive care units in the United States. American Journal of Kidney Diseases, 77(2), 190-203.

Mahajan, P., Dass, B., Radhakrishnan, N., & McCullough, P. A. (2020). COVID-19-Associated Systemic Thromboembolism: A Case Report and Review of the Literature. Cardiorenal Medicine, 1-8.

© 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: Have You Heard?

DutyThe following is a recap of several stories that should have been big news, but since the corporate media is practicing “Biden Behind Covering” (BBC), I doubt this news was heard anywhere.  However, this information is critical, and I have included the links if you want more than my paltry summation of the story.  I encourage you to always hit the links included in the articles I publish, so you know where I get my source materials.

Judge for yourself the importance of the following, but I encourage you to judge wisely, for America is in deep trouble!

Inflation Definition: Formula & How to CalculateFrom the NCSL regarding the future of finance, we find a curious article, “Do State and Local Governments Need to Worry About Inflation?”  The simple answer is absolutely, as the continuing pension crisis will be multiplied as inflations grows.  How much is inflation up, a year ago inflation was 4.2% less than it is today.  But that is a statistic that doesn’t carry the real weight of the problem.  If you owed $100 last year, without interest calculations, you now owe $4.20 more.  That $10.00 steak is now $10.42, before taxes.  That tank of fuel, before all the taxes, is $0.42 more expensive than a year ago, and inflation was already hurting America.  The way inflation works is comparable to running on a freshly waxed floor in your socks, you have to exert more effort to maintain your same spot, forget slowing down, or stopping for that will include falling.  Let me reintroduce you to a term used in the early 1970s, stagflation.  Stagflation occurs when the inflation rate is so out of control, no new jobs are created, employers are looking to cut employees left and right to maintain shareholder profits, and the entire economy grinds to a messy halt.

Inflation may erode PTI's political capital - Newspaper - DAWN.COMRisk managers across the financial system are looking at the government on the Federal, State, and Local levels and are not liking what they see as inflation continues to grow beyond the Federally approved 2% annual allowed rate.  As taxes adjust for increased inflation, it will require more money to pay taxes to maintain current levels, as inflation depletes the value of dollars saved.  Thus, every government is looking at their “Rainy Day” funds, and are watching it depreciate as inflation increases, and this is happening before a penny is even spent.

VaccineFrom SHRM, we find the next astounding piece of news, the “EEOC Gives the Greenlight for Limited Incentives for COVID-19 Vaccinations.”  Mandatory vaccinations are illegal in the United States, currently.  However, incentivizing vaccinations by an employer has now been made acceptable.  Do you see a problem with this EEOC ruling?  Did you notice how slippery the slope is between employers incentivizing vaccinations and mandatory vaccinations?  During periods of higher inflation, how much value is $500, from an employer to vaccinate?  Other employers are allowing employees to sticker their badges showing they vaccinated and can stop wearing a mask in public.  No sticker, you have to keep your mask on.  Slippery slope?  Colleges, K-12 Schools, and other organizations all have a hodgepodge of rules for mingling in a post-COVID government mandated lockdown, as the “New” normal.

Do you see the problems with employers picking winners and losers based upon vaccination status?  How long before those who cannot, or will not, be a guinea pig for a useless vaccine, that is shrouded in mystery, and which has zero long-term studies completed, for a viral disease with a 99.02% chance of survival, are shown the door because of risk averse insurance policies?  I have some concerns with this decision and remain convinced that the EEOC has been bought and paid for by parties unknown.  Their last several decisions have left me seriously concerned.  Watch the bureaucrats, they are sneaky!Plato 2

Virginia Allen, writing for The Daily Signal, provides the next piece of news that should be wall-to-wall with parents marching.  “California Public School Gives Third Graders Assignment About ‘Place on Gender Spectrum.’  Let that sink in for a moment.  9-year-old students are being asked to choose where they place themselves on the “gender spectrum.”  What the heck is a “Gender Spectrum?”  At 9-years old, I was more interested in getting better at little league than I was about anything else, except my paper route.  A quote from the article sums the problem nicely:

The school board is completely indoctrinated. Many teachers are completely indoctrinated. … You cannot change their mind. The only thing you can do is vote them off [the school board] and let them know there are consequences to teaching children inappropriate things for their ages.”

When your politicians are no longer afraid of the citizens they afflict, tyranny has begun to reign!  California is a perfect example of what happens when the populace checks out, the politicians stop fearing the ballot box, and power concentrates under a single party.  Now, ask yourself, is this the America you want for your kids and grandchildren?  I know my answer!Apathy

Cal Thomas also writing for The Daily Signal, presents the scariest topic of all, “Ministry of Truth 2.0.”  Consider for a moment, you make a comment in a grocery store, an off-hand comment to another person, the next day a person from Homeland Security is knocking on your door to discuss your passing of disinformation, who possesses the legal authority to place you under arrest, no evidence needed, and you are guilty until reluctantly allowed to be innocent.  From the article:

Secretary of Homeland Security Alejandro Mayorkas is reportedly considering the development of tools that would help America’s children discern truth from lies and know when they are being fed “disinformation.”

Millstone of Designed IncompetenceIf you have not read, or listened to, George Orwell’s book 1984, you might not recognize “the Ministry of Truth,” which is the propaganda arm of the government who rewrites history to what the government says it is, and not what actually happened.  Would someone please explain to me who appointed the Homeland Security Secretary the harbinger and decider of truth and lies?  When the media cannot even get the truth right, how will a government, senate appointed, person who serves at the pleasure of the current sitting US President know, recognize, or even understand truth?  When the media allow truth to be “subjective to circumstances, environments, and cultures,” how will bureaucrats be able to discern truth?

Tell me, how will the tools be protected from the bias of the tool designers?  One of the biggest issues in modern research is researcher bias; yet somehow the secretary of Homeland Security can magically control bias to protect the tools from the opinions, knowledge, experiences, and politics of the designers.  Exactly how will this occur?  Do you recognize how slippery this slope is, and how dangerous?Why

As a homeowner in a town that is within 50-miles of the southwest border, the continued blind-eye being turned to the southern border infuriates me.  Please, follow this link, and then consider what is being said.  Do not look at the politics of the situation, do not listen to the political leaders and political commenters.  Listen to your heart, your gut, your conscience, and tell me, if the 9-year old girl was your sister, cousin, daughter, what would be your response?  From the article we also find the following:

The cartels are making an ungodly amount of money on a daily basis, somewhere to the tune of $15 to $25 million a day in just the trafficking and smuggling of human beings. That doesn’t include the narcotics. We’re seeing, for example, fentanyl, 5,000% increase in fentanyl coming across the border.”

America Is Crying Digital Art by Deborah VicinoWant to hear the truth about the problem on the southern border, let’s talk about “got-aways.”

Got-aways” are individuals that are crossing the border illegally that don’t want to get caught. They don’t want to go through processing because they are either a gang member, someone on the terrorist watch list, a convicted sex offender, [or] a violent offender. These are people who know that once they are caught, they will get turned right back around because of their record, because they have a record in the United States.”

From January to June, the Border Patrol, through all their efforts, have lost around 200,000 “got-aways.”  These are people seen on cameras, who have eluded apprehension, and are now roaming American streets.  A convicted sex offender was given a small baby to help him cross the border.  Where the parents of this child are, no one knows.  So, even when they get caught, we still have problems getting rid of the vermin mixed into this humanitarian crisis.  How many terrorists from non-South and Central American countries have slipped through as “got-aways?”

Knowledge Check!America is being taken for a ride by the Cartels who run the Southern border!  This is the truth, and anyone trying to tell you something else is selling snake oil and trying to make a buck off the tragedy that is the US Southern Border.  Like all evil and conspiring people through history, the innocent are the shields covering the criminal actions, these children deserve better, but they will never have a future until America becomes a land of laws again, where the Rule of Law is honored.

Child Abuse - New Day Advocacy CenterCan you hear the Statue of Liberty weep at how are laws are being manipulated by the drug cartels, for the glorification of single-party rule and fiscal return on investment?

© 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: Come, Let Us Reason Together – Chapter 4

Bird of PreyPSA:  I am not a cynic; I understand the concepts being discussed, and it might appear that I am cynical about insurance companies by the tone of the writing.  Please note, I am generally in favor of the insurance industry.  However, when government mandates insurance coverage to spread the risks out for the benefit of the insurance industry, insurance has become a tax.  When a business offers insurance, but the co-pays and the costs are too high, insurance is no longer a benefit, and I want the option to opt-out of the employer “benefit.”

Insurance as a concept has been around for a long time, historically speaking.  Maritime insurance was a concept from the 1340s, and Benjamin Franklin dreamed up property insurance in 1752, becoming America’s first insurer.  Insurance separated investment as a method of managing risk, making investing more palatable and shoving the consequences of natural disasters, pirates, and other methods of losing onto another responsible party.  Some of the biggest names in insurance can trace their roots to the Great Fire in London in the 1660s.  We mention all of this, as a foundation for understanding the role and the meaning of insurance.

Interest vs. Investing

Ziggy - The GovernmentInterest, in this usage is referring to the advantage to a group or single person, as well as improving one’s welfare.  Maritime shipping would take on several loads, and people who owned those loads had a vested interest (having a personal stake in something) in seeing that ship arrive on time at its intended destination.  For example, sugar has been a huge commodity in history, and a sugar mill would ship the sugar to destinations for sale.  People interested in improving their welfare could invest in the sugar mill, or with a higher risk, expecting a higher return, invest in the shipping company, or the ship.  Thus, investing became one where opportunities to increase interest became popular.

The modern stock market traces its roots to the 1600s and the Amsterdam Stock Exchange, where for the first time, people interested in investing could be joined to companies needing investors, and money could exchange hands for certificates (stocks or bonds) showing interest.  A point of reference, the Dutch East India Trading Company was an original benefactor of the Amsterdam Stock Exchange, and sugar, molasses, and spices were the commodities being shipped.  Not saying all the Dutch East India Trading was in non-human commodities, but sugar was a huge driving factor for separating risk through insurance that drove the stock exchange creation.

photo_slideshow_maxOne final point, government’s have interests, generally traced to those paying the highest taxes, or with the most political connections.  Government’s do not have allies, as much as they have groups of governments that share a common interest.  For example, countries belonging to NATO.  NATO is the North Atlantic Treaty Organization and was designed for those countries with interests in seeing trade safely through the North Atlantic.  Not all the countries in NATO are friendly with all the other countries, but the common interest in seeing trade and markets operate smoothly has generated NATO and kept it alive since 1949.  Government never has friends; they only have relationships based upon mutual interests.  These are cogent points that must be remembered!  Incredible as it seems, interests change, and when interests change, relationships between countries and governments force ideological changes, and today’s relationship might not be the same tomorrow, which is one of the reasons why the United Nations is such a pile of hypocrisy and uselessness!

Insurance and Investing

Insurance as described by Webster’s dictionary is a practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.  The payments of premiums provide the insurance company with vast sums of cash.  Some of which are placed into long-term investments, medium -term investments, stocks, bonds, T-bills, and other methods of protecting the money paid in premiums.  The higher the risk, the higher the cost of the premium.  The one rule in insurance that has never changed from the 1300s is, if the insurance company can collect a premium, and not pay on a claim, the interest the premiums collect remains and the shareholders see larger returns on their investments.

Calvin & Hobbes - EnmityHence, lawyers and bankers have a vested interest in seeing insurance companies not have to pay claims, but still collect premiums.  Thus, contract law was established, and the insurance companies took full advantage of language to protect their premiums from paying a claim.  Another growth industry directly tied to the insurance industry, was special courts for hearing claims and awarding damages (Tort Law).  Cornell Law university provides some clarity on tort law, “A tort is an act or omission that gives rise to injury or harm to another and amounts to a civil wrong for which courts impose liability.  In the context of torts, “injury” describes the invasion of any legal right, whereas “harm” describes a loss or detriment in fact that an individual suffers.”  Placing insurance companies squarely into the middle of tort law, and thus opening up new avenues for protecting against paying a claim from the premiums paid and invested.

Types of Insurance

ApathyImportant to understanding, Carl Marx and communism uses the ideas of mutual insurance companies to create a society where all share the risks, all benefit in the gains, at least in theory.  However, like insurance companies, someone in communism must enjoy all the benefits for taking the risk of establishing the community, and the reality of China, Cuba, and USSR become evident.  Where the leaders take everything for themselves, and the regular people live in squalor and depredation.

Janet Hunt wrote an great article on types of insurance companies and her article can be found here.  Currently there are nine different types of insurance companies available and are detailed below:

    • Mutual Companies – owned by policy holders who are also considered shareholders, sharing the risks, and benefiting from the lack of paid claims.  The mutual society of this type of insurance company shares dividends and when losses occur, generally the shareholders (policyholders) might not see an increase in premiums.
    • Stock Companies and Mono-Line Carriers – Stock companies are corporations and the distribution of dividends become payments to shareholders.  These insurance companies are very averse to paying claims.  Mono-line carriers only carry a single type of insurance.  For example, a company might only carry car insurance, specializing in just car insurance provides savings in overhead, and they might have agreements with other carriers to provide linked coverage for other insurance products.
    • Lloyds of London – When you want to insure the weird, Lloyds of London is the carrier of choice.  I cannot tell you how hard I have laughed at people willing to insure body parts, unusual, or high-risk items.  Share my laugh, look up what policies Lloyds has written insurance policies for and you too can have a good chuckle.  Lloyd’s does carry insurance for mundane and normal, but those policies do not make me laugh.  I feel sorry for the citizens of the United Kingdom, since Lloyd’s of London is backed by parliament, the taxpayers are on the hook for Lloyd’s losses eventually.
    • Alien Carriers – These are insurance carriers that are owned and operated in one country, doing business in another country, selling premiums, and paying claims.  Important to note about alien carriers, the lawyers charged with engineering methods to control risks to paying claims can create a nightmare using the laws of both countries.  Alien carriers can also be operating in one US State but be owned and governed in another US State.
    • Domestic Insurance – These are companies who are owned and operate in a single US State, or other geographical area.  For example, a domestic insurance company in Texas, might or might not have the ability to operate outside Texas, where it would be considered an alien provider.
    • Direct Sellers – Do not use insurance agents, selling directly to the public or insurance consumer.  To be considered a direct seller, the majority of the business occurs online or over the phone.  Direct sellers are pretty straight forward, and some of the biggest names in insurance providers are direct sellers.
    • Captives – A captive insurance company is a unique insurance provider, generally specializing in one type of insurance product for a specific industry or groups of individuals.  For example, if a business owns a fleet of vehicles, they will have insurance through a captive insurance company who specializes in handling the risks of fleet vehicles.  Another type of captive insurance company occurs when a parent corporation needs insurance but builds a branch of their company to handle the insurance instead of going through an insurance company.  In this model, the parent company keeps the premiums in-house and has a vested interest in protecting their investments.
    • Standard Lines – This is your normal insurance company with insurance agents, local offices, is regulated by the state board of insurance, pay fees into the general state guarantee fund, and are subject to the laws and ordinances of the state in which they operate.
    • Excess Lines – Think of these companies as insurance for high-risk individuals and companies, who cannot get insurance through a standard line company.

I know, that is a whole lot more than you think you want to know about insurance companies.  However, my only logic for making these distinctions in this article is to aid in understanding the classifications of insurance company, and some of the peculiarities in insurance products.  I feel the more you know, the better questions you can ask, leading to improvements in your bottom-line.

Emtional Investment CycleWith all the ties to investing, savings products, and the flow of money into and out of an insurance company, the discussion of insurance companies remains critical.  Especially when the government can create an insurance company, then mandate that company be used to provide coverage, creating a tax and fee that the taxpayer might not realize.  For example, around the time that states began demanding drivers have car insurance, GEICO began selling policies to non-government employees.  GEICO is an acronym for Government Employees Insurance Company, and by selling policies to non-government employees, the government is able to reduce the risk of insuring their employees.  Thus, an argument can be made that the government only created GEICO to reduce the risks of insuring government employees, as well as benefiting from a flush of cash from premiums paid.

Ziggy on GovernmentBoth Lloyds of London and GEICO leave me worrying for taxpayers.  However, since the US Government is the only provider for some types of insurance, specifically flood insurance, which is mandatory for homeowners living in a flood plain, one must ask more questions about where the money goes and why?  What steps have been taken to protect the public from large scale incidents where the insurance company will have to make massive payments?  What does the government invest in to protect the premiums paid against the time of claims?

When a person begins discussing savings instruments, investments, and the links between insurance companies and government, a lot of potential questions arise, and the answers become more sparse inversely to the specificity of the questions asked.  For example, if a savings account interest is so low, due to inflationary spending by the government, what interest does the government, as a holder of savings accounts, receive for their investment?  Where does the government invest their premiums from insurance payments?  How is the government protecting their customers from inflation as a result of poor fiscal policy?Plato 2

Never forget, an insurance company must pay dividends to their shareholders who have invested interests (money).  GEICO is a Berkshire Hathaway company, and stopped being publicly held in 1996.  The questions for why the Government Employee Insurance Company is wholly owned and operated by Berkshire Hathaway opens a lot of questions.  This would be akin to Lloyds of London being sold to a private company, where parliament stopped caring or backing Lloyds.  Why becomes a major question requiring detailed answers.  Look at the political situation in America at the time of the sell, and more questions rise, and less answers are provided.

Knowledge Check!America, when it comes to cash flow, money, and government fiscal policy, we need answers.  We need the elected representatives to understand basic economics, and we need to hold a tighter rein on those elected representatives.  The current fiscal health of America is poor, solely because of the elected representatives and their bureaucratic minions.  We must have a solution that protects America, and this solution needs every citizen involved and engaged.

© 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: Come, Let Us Reason Together – Chapter 2

Bird of PreyAs American state, city, and county governments, begin to become greedy little children over the $350 Billion the Federal Government is “handing out for COVID relief” to “spur a national recovery from the economic toll of COVID-19.”  I wanted to take a minute and speak some reality to the situation.  Let us logically review what has happened since November 2019 in the light of a non-partisan, apolitical review.  I urge you to take what is said, conduct your own research, and come to your own conclusions.  As Dumbledore said, “I could be as wrong as Humphrey Belcher, who believed  the time was ripe for a cheese cauldron.”

    1. COVID-19 started in Wuhan Province, China. It was delivered around the world by the Chinese Government’s intentional decision to allow travel while infectious.  The virus was further enhanced by the political nature of Government, the intrusion of Government, and the mass hysteria whipped up by the global media.  Power-hungry people looked upon a virus with a 99.02% survivability rate and saw a golden opportunity to seize power from those who elected them to office.Apathy

These are basic COVID-19 facts that have never been refuted, and the adults in the room have recognized the power-mad politicians and the media usurpers from the beginning of the “pandemic.”  While politics continues to play an over-sized role in COVID, while people are still suffering, and while some “normality” is breaking out, the money spent to date will eventually need to be repaid, and no one is discussing this problem.  Worse, more money is being printed and pumped into the economies of the world to “spur growth,” and this is never good fiscal policy!

    1. Printing money causes inflation. Too much money, not enough goods, raises prices beyond sustainable limits to rebalance the economy; hence inflationary prices will continue until excess money is absorbed.  This is a fundamental economic fact everyone should know.  Money is created through several processes, but printing it to throw at a problem, does not resolve the issue; it only prolongs the misery of the original problem.   The original problem was not COVID-19 but a runaway government from the Obama reign, where the economy stalled, the money pumped in did nothing, and a recession dragged on artificially due to the political hands in the economy.  The same problem from Obama’s reign will lead to the same economic issues under the fraudulent president.Plato 3
    2. Fiscal insanity is not fixed by Federal impropriety and investment. Too many states, California, Illinois, Michigan, New York, Maine, and so many others, are in dire financial straits.  However, their fiscal health was already failing before COVID-19.  Investment by the Federal Government will not change the underlying issues and make a fiscally insane state fiscally sane.  In fact, the opposite will occur; the funds being handed to the states under the auspices of “spurring growth” will exacerbate fiscal problems.  More to the point, the excess money in the markets will mean more financial problems for the rest of the United States, which will bleed into the global economy!Plato 2

You cannot buy your way out of fiscal problems!  The only answer to spur growth is to reduce Government!  Reduce regulations!  Reduce the intrusion of Government!  Eliminate taxes!  Instead, the same tired act is being performed, print money, give it to the states, complain about inflationary prices, blame the rich, and increase taxes!  The only thing the Trump Presidency proved, without a shadow of a doubt, if America can get the millstone of Government off her neck, her economy BOOMS!  Yet, what has Washington and too many state capitals done, doubled down on policies that do not work and try to call this “progress.”

Knowledge Check!Agree or disagree, your choice and your consequences.  I have made my case; the money being pumped into the states will lead to inflationary prices, above and beyond a sustainable level.  The states all have sticky fingers and wet lips looking for these funds.  Sure, there are many promises regarding how these funds will be spent. Still, I guarantee most of the promises are empty. The politicians will have their special interests fed first—leaving the citizens to pay exorbitant fees for food, clothing, housing, services, and products until the extra money is consumed, which might occur sometime in the next 5-years at a minimum.  Who benefits, nobody!  Who loses, everyone!

© 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.