Deficit spending means a debt owed to someone, whether it is owed to a foreign entity or to ourselves. Money borrowed must be repaid. Selling trillions of dollars in Treasury bonds to China or to anyone else means we are borrowing with the understanding that we will repay the debt. Ultimately, if the spending becomes too reckless, our lenders will begin to seriously question our ability to pay, and to express concern over the falling dollar with which they will be repaid. After all, what good is being repaid on a debt when what you are being repaid with is essentially worthless? Where Obamanomics is such a radical departure from Keynsianism is the size of the deficit – it is virtually inconceivable that it will ever be paid back. The rhetoric coming from the president and his administration that such spending and deficits are “unsustainable” and ”unacceptable” ignores the fact that they continue to spend and increase the deficit with even more programs and projects, all the while declaring that this is the most certain path to full recovery and “sustainable job growth,” etc., etc… It is all utter nonsense.

To be fair to Mr. Obama, those who blame him in full or in part for creating the “Obama Recession” are as foolhardy as their counterparts who blame Mr. Bush. One must also understand that had Mr. McCain been the current occupant of the White House, the situation would be very much the same because of the prevailing mentality among the political elite that only government is big enough to solve such dire economic problems. And, while the actions taken by both Mr. Bush and Mr. Obama have certainly contributed the worsening of the situation over the long term, neither one bears full blame for its cause. They do, however, deserve blame for failing to clearly see the best path toward a solution, which is letting the natural laws of economics and human nature work instead of propping up a bubble with fiat money and regulations aimed at benefiting the politically well-connected to the detriment of everyone else. Bad regulations and monetary policy brought us to this place, and more of the same is quite obviously not going to help. Whether the entities favored by the proposed new regulations and legislation are big Democrat donors or big Republican donors is immaterial. Those with money and access to power will benefit to the detriment of the rest of us, no matter how flowery the language of “hope” and “change.”

According to the AFP, Mr. Obama “stressed that the actions taken by his government had ‘helped to stem what could have been a disastrous situation for the economy,’ adding that ‘we are starting to see stabilization and indeed some improvement.’” Accordingly, one might be inclined to argue that ballooning the national debt to $12 trillion, and attempting to force passage of a national healthcare bill along with a Cap-and Trade tax bill piled atop of unfounded – and unfundable - government obligations already at $106 trillion is the actual disaster. Indeed, the vast majority of the blame for that unfundable debt of $106 trillion does not belong with Mr. Obama but, rather, with his predecessors going back to President Johnson. Regardless of who gets the blame, however, is the sad reality that the figure of $106 trillion is proof that these government obligations are inconceivable to the rational mind, and adding the current U.S. national debt of $12 trillion to this figure simply makes the further point that the government itself is insolvent, because even if every man, woman and child in this country were taxed at 100% for a decade, that amount could never be paid off. Hence, Mr. Obama defers to Mr. Bernanke’s strategy of monetizing the debt and massively inflating our currency in doing so – the epitome of Keynesian theory. Sure, the Treasury will be able to pay off the numerical figure of its’ trillions in debt bonds with “dollars” created out of thin air, but those dollars won’t be worth anything by the time that happens. Massive inflation only benefits the party who has to pay the debt. Everyone else suffers.  (Continued...)

President Obama once again demonstrated his utter lack of understanding of the basic principles of economics during a meeting with his economic advisors on Monday. He chooses to blindly follow the misguided and discredited theories of Lord Keynes, among others, given him by his advisors. It is also most unfortunate for this country that the entire cadre of the presidents economic advisory team seem incapable of objectively analyzing the Keynesian model that they are so attached to, for if they could only extricate themselves from this “third way” paradigm and experience a few moments of economic lucidity, it is highly possible that even they could begin to fully understand just how utterly disastrous Keynesianism has been for the global economy in general, and our economy in particular. Unfortunately, they ignore the continued warning signs that keep popping up and continue to dig the United States ever deeper into this economic black hole that threatens to suck the very life out of what remains of our economy, and will ultimately take what remains of our liberty with it.

Let me be clear: what we are presently witnessing in the ongoing economic crisis is the natural laws of economics giving their referendum on Keynes. The current national unemployment figure of 10.2% simply underscores the point. In short, Keynesian theory suggested what has been called a “third way,” not fully capitalism and not fully socialism. It sought a system where the government, both through the power of the central bank and intervention through regulation, legislation and manipulation would be able to bring about a condition of perpetual prosperity, an end to recessions and economic cycles of boom and bust, and end to the bubble economy. The problem with the theory is that the very controls and manipulations demanded by Keynesians to “grow” and “sustain” the economy are the very things responsible for the creation of the economic bubbles and the business cycle, precisely because these things violate the natural laws of economics. Mises, Rothbard, Hayek and others have proven this time and again. The natural laws of economics correlate with human thought and action, and these things are wholly incompatible with bureaucratized central planning boards and central banks fixing prices, wages and interests rates at values much different than those the free market would deem proper. Attempting to isolate these things from the reality of the marketplace in essence creates the bubbles that are bound to burst at some point because they are at odds with the market, with the decisions and choices producers and consumers make on a daily basis.

Keynesian theory has been the driving force behind the economic policies of the industrialized world since the early twentieth century. Keynes’ model economy was viewed as having evolved beyond capitalism, thus noted above as being a hybrid between capitalism and socialism. It advocates corporatism. It is therefore by its own admission decidedly not capitalism. Those who prefer to cast the blame for the current economic mess on unrestrained capitalism are flat out wrong and woefully uninformed, because there has been no unrestrained capitalism in the United States – ever. Sure, we came fairly close up until 1913; however, once the Federal Reserve Act and Income Tax Acts were passed and the Constitution amended through the ratification of the 16th Amendment, all hopes for true capitalism were indeed dashed.

Mr. Obama and his advisors like to remind us how they inherited this economic crisis from the previous administration. There is nothing untrue in that statement. However, for anyone, especially a well trained and educated economist, to lay the whole blame for this mess at the feet of the Bush Administration without taking into account the overwhelming number of far more important factors that are truly the root cause, is disingenuous, dishonest, and grossly insulting to those of us who have studied anything other than Keynes, as well as an affront to the common sense of anyone who takes the time to question the current scenario and really think it through. Those economists who regurgitate the official government talking points and try to put a positive spin on the current course of action undermine their own legitimacy in doing so. It is simply incredible that so many of these economic advisors are so quick to declare unrestrained laissez-faire capitalism the root cause of this crisis when they know full well that the prevailing Keynesian school of economic thought that has been driving economic policy for the better part of a century is itself specifically defined as being something that is not capitalism. There is far too much at stake to play semantics and talk out of both sides one’s mouth.  (Continued...)

The talking heads are all aflutter with the latest bout of economic news. For a couple of months now several prominent personalities have repeatedly proclaimed the “recession” to be over and that America is well on its way back to prosperity. How they could make such claims while looking at the same data the rest of us see defies both logic and common sense. The problem with the talking heads is that they have now committed themselves to their predictions of recovery while, in fact, we are very far away from seeing any such thing realistically materialize. They are focusing on individual bits of data that seem encouraging and positive, while ignoring warning signs and negative information. They are simply not looking at the bigger economic picture.

While they praise the perceived beneficial effects of the $787 billion stimulus package (less than 20% of which has been spent thus far) for bringing the economy back from the brink of total collapse, they conveniently ignore the fact that this so-called stimulus is only a massive “credit injection” that has been created literally out of thin air, is based on and backed by nothing, and can therefore ultimately produce nothing. It is entirely fictitious.  And, while certain trends may indicate an improvement in economic conditions in the near term, what is certain is that any long term prospects for a real healing of this economic hemorrhaging are equally fictitious for as long as the "recovery" is dependent upon credit created out of thin air, based on nothing, and with no value.

Indeed, essentially every step taken by Congress, the administration (current and previous), the traditional media, and, sadly, many respected economists, to identify, assess and combat this growing financial crisis has also been based in fiction. The very fact that these same people who created the conditions that encouraged and enabled the behaviors that resulted in this crisis is alarming enough. Their elation over the latest housing numbers merely demonstrates the latest stage of denial and their almost universal ignorance of logic and good economic sense.

While celebrating the latest housing sales numbers, up 9.4%, and proclaiming this as the latest indicator that the “recession” is all but over, the talking heads seem to have forgotten about the commercial real estate market that is about to implode and drag many more financial institutions with it, as well as the flash-in-the-pan that was “cash for clunkers.”  (continued...)

The Orange County chapter of the Campaign for Liberty held its 8th meeting on Thursday evening at 7:00 PM at O’Boys on Fairbanks Ave in Winter Park. The Campaign for Liberty organization emerged from Congressman Dr. Ron Paul’s dynamic presidential bid, and has literally exploded in membership, not only here in the U.S., but worldwide.

The organization’s mission statement is: “to promote and defend the great American principles of individual liberty, constitutional government, sound money, free markets, and a noninterventionist foreign policy, by means of educational and political activity.”

Attendance at the meeting was strong, with well over 70 friends of liberty crowding into the back room to hear several brief presentations on the status and growth of the Orange County chapter as well as the world-wide organization. The Orange County chapter is rated by the larger organization as the fastest growing, having added many new members and Local Coordinators. In fact, Florida is now first in growth with 213 Local Coordinators and, and Orange County is first among counties now with 46 Local Coordinators, 185 members and still growing.  (continued...)

Early on in his book “End the Fed” Dr. Ron Paul makes the following statement: “Everyone should have an intense interest in what money is and how it is manipulated by the few at the expense of the many. Money is crucial for survival. It is necessary for maintaining a free society. A healthy economy depends on it. Limiting political power is impossible without it. Sound money is essential for preventing unnecessary wars. Prosperity and peace are impossible in the long run without it. To understand money, one absolutely must understand what a central bank is all about. In the United States, the central bank is the Federal Reserve, the instrument by which our money and credit are constantly manipulated for the benefit of a privileged few.” (End the Fed, pp.3-4).

Here is a question to begin with: Have you ever really thought about why we need to have the FDIC (Federal Deposit Insurance Co.) if there is nothing wrong with our banking system? We always assume that whenever we wish we can just show up at a branch of our bank and slip our card into the ATM or write a check and we can withdraw as much of our money as we want, even up to the total sum we have deposited. After all, we’ve always assumed and been told that when we open an account, say for example a demand deposit (standard checking account) that the money is there for our use, that it is obviously ours, and that we can demand its redemption at any time, without notice. We’ve either been told or led to believe that once we deposit our money in a bank it is there for safe keeping, until such time as we, it’s owners, should decide to utilize it for whatever purpose we should choose. If this is indeed so, then why would we ever need the FDIC to insure our money, now up to $250,000 per account, if it is just being stored there in an account? This is one of those things that ought to raise a red flag, because although on the surface it seems benign, once one scratches even a little bit below that surface one soon discovers a mountain of evidence that only leads to more questions, and one of the best-kept open secrets of all time. What is that secret? The secret is the fact that our banks are inherently insolvent. The reason is called fractional reserve banking.  The primary culprit is the Federal Reserve.  (continued...)

As the war in Afghanistan enters into its eighth year with the situation on the ground rapidly deteriorating and Osama bin Laden nowhere to be found; with a naïve new president doubtless being pulled in several different directions by the various powerbrokers that be hesitant to make a decision regarding the direction and, indeed the ultimate aim of the war; with the global economy in shambles and the dollar on the verge of collapse, the current dire state of affairs begs the question: why? Why are we still in Afghanistan? Why have we not yet won? How could it be that we have not, after eight long years of war, captured bin Laden? These are among the many questions asked over the last several years, however the most important question – one that some of us have not been afraid to ask is this: are we even fighting to win?

To be sure, this question of whether we are fighting to win is directed at the politicians, the bureaucrats, the Pentagon, and the White House – all the political elite. It goes without saying that the men and women in harms way are fighting to win every single day, because for them winning means survival: the scope of the bigger mission becomes very narrow for a handful of soldiers coming under fire and their focus quickly becomes keeping each other alive. The problem is that these men and women are largely being used as pawns, having long ago been abandoned by the same politicians who continually demand and push for war amid flag-waving and pomp, tough talking speeches that result in the death and maiming of countless victims on both sides. These scoundrels are all too quick to pull the trigger and flex the military might of the United States to impose its will or right some perceived wrong somewhere in the world, but once engaged they quickly lose heart and deny the military the very things they need for victory, condemning the troops to multiple tours and suffering a deadly slug-fest that these politicians soon enough are afraid to win, because of the cost they never bothered to calculate at the outset.  (More...)

The writing has been on the wall for some time now, and over the last several months there have been many none-too-subtle hints from China, France and a host of other nations about what they think of the dollar. The recent G-20 meeting in Pittsburgh was very much a consensus on abandoning the U.S. dollar as the world’s reserve currency and creating a new global reserve currency. Many scoffed at the viability of such an undertaking, declaring it to be unattainable, but anyone who has been paying attention to what our own Federal Reserve has been doing, who has grasped an even cursory understanding of the history and theory of money, and who has been observing what the other members of the G-20 have been quietly up to were not surprised by today’s announcement that the Arab gulf states, China, Russia, France, Japan and others are planning to divest themselves of their U.S. dollars and end all dollar transactions for oil.

This is a monumental and historic change in global monetary policy, and could soon prove devastating to the dollar. Indeed, it begs the question: will the dollar collapse? Unfortunately, the possibility is becoming increasingly likely despite the pictures of rainbows, sunshine and lollipops emanating from top policymakers, central bankers and analysts in and around Washington and New York. This is most unfortunate because very many people in this country stand to be completely blindsided by these unfolding events and just about the only source for information is foreign press. Too many Americans are right now under the illusion that the “recession” is all but over, that we are in the process of a “jobless recovery” and that our continuing to spend trillions of dollars that we don’t have is of no consequence because the Federal Reserve knows exactly when to begin reducing the money supply to stave off any harmful inflation. There are several serious problems with this entire situation that warrant attention.  (continued...)

Michael Moore the millionaire Marxist is at it again.  Everyone knew it was only a matter of time until he came out openly Marxist, and with his latest piece of pro-Marixst propaganda, Moore does not disappoint.   In the film, “Capitalism, a Love Story,” Moore seeks to illustrate how capitalism has failed and thus socialism is the only viable system by which a sensible and advanced people may prosper. Unfortunately for Moore it is clear from viewing many of his previous films that he doesn’t know what capitalism is. It is also clear that while Moore may well indeed have a true empathy for those financially less fortunate than himself, he has no intention of spreading his wealth around. Why? Because, in his own words, he is just like us. A recent interview with Larry King revealed the following exchange:

Moore: Who's got the money? And whoever has the money has the power. And right now, in America, tonight, Larry, the richest 1 percent have more financial wealth than the bottom 95 percent combined.

King: You're in that 1 percent, though?  (More...)

The favorite U.S. financial cocktail of fiat currency, inflationary monetary policy, and massive deficit spending that has been the staple of U.S. economic policy for decades could soon result in a hangover that the dollar might not survive. Already new concerns are being raised as to what might happen is China and Japan refuse to continue buying U.S. debt. Tiger Management founder and chairman Julian Robertson told CNBC: “It's almost Armageddon... (more here...)

Political thought independent of the Democrat and Republican parties is growing exponentially throughout Orange County and across central Florida. Thousands of central Floridians are joining this “patriot movement” as a result of widespread uneasiness with the ever-increasing size, scope and intrusiveness of the Federal Government over the last several years. Floridians are arming themselves with information and demanding that their voices be heard.

This growing concern over the increasing threats to individual liberty is manifesting itself in citizen patriots putting into action their belief in the founding principles of our republic...  (more)

In a speech aimed at further demonizing Wall Street by once again failing to accept that government also bears responsibility for the much of the ongoing financial meltdown, President Obama declared, “I have always been a strong believer in the power of the free market. I believe that jobs are best created not by government, but by businesses and entrepreneurs willing to take a risk on a good idea.”

It is one thing to utter such words in a speech, and yet something entirely different to put them into action; and to date, all of Mr. Obama’s actions relative to the economy have been wholly manipulative and hostile to the idea of free market capitalism. To be fair, Mr. Obama is certainly not alone in his hostility toward true free market capitalism, for since the inception of the Federal Reserve in 1913 U.S. economic and monetary policy have been overwhelmingly interventionist and inflationary, building an faux economy with a fragile basis in easy money, easy credit, fiat currency.  (continued... examiner.com)

In the early part of the Twentieth Century this movement caught on and came eventually to control the apparatus of both the Democrat and Republican parties.  Any assertion to the contrary is patently false.  Of those individuals most influential in the advancement of the Progressive agenda, the most popular names that come to mind are Theodore and Franklin Roosevelt, Woodrow Wilson, William Jennings Bryan, Thomas Dewey, etc.  Lesser known are those who thought and wrote extensively on how to institutionalize and perpetuate the cause, to normalize it and thus allow it to overcome, overwhelm and entirely pervert the original system as designed by the Framers.

Indeed to this very day we all suffer the effects of this treasonous plot and, in fact, as mentioned above the movement is presently and most rapidly approaching it’s apex, for over the last eight years a great deal of advancement was made in terms of establishing the final foundation from which would spring a transformation in government never anticipated, much less intended, by the Framers of our Constitution, by which the rights of the citizens of this republic would cease to be as they had been, and the balance of power would shift to the federal government as it usurps those rights and claims its own right as supreme arbiter of the rights of the people, citing the interest of national security.  Now, what we have observed since the new administration has assumed power is the implementation of the final stages of advancing this statist agenda with blinding speed and appropriate distraction to turn the attention of those less savvy away from what is really happening.  While employing such benevolent-sounding terms as “social justice,” “economic justice,” and “common good,” the progressives have and continue to imply a desire to “help those less fortunate.”  However, the inevitable result that they intentionally hide from and deny is that the means they have decided to employ in order to achieve such lofty-sounding goals as economic and social “justice,” those means being government authority and force, are wholly incompatible with what is perhaps the most important and vital premise upon which this republic was founded, that being equality of opportunity.  In sum, where the Framers of the Constitution sought to establish conditions to promote and perpetuate equality of opportunity, these “progressives” of both major political parties seek to replace that original intent with an equality of outcome.

The very essence and sole aim of the established Democrat-Republican duopoly in modern politics in America today is perpetuating oneself in power at all costs.  The ends justify the means for both the Republican and Democrat parties; hence the critical situation these treasonous miscreants have created.  Whether one or the other is elected, the end result is the same – more government encroachment, more unconstitutional activity, and an ever-increasing threat to our individual liberty.  No one in government, save very, very few men and women of honor who are knowledgeable of the growing danger to our republic and our liberty – indeed to our continued existence as a nation of freemen – are willing to stand up and speak the truth to the people.   What is telling about the real agenda of both the Democrat and Republican parties is the fact that those who do speak out against the unconstitutional and tyrannical actions of the government and its officials are labeled as “extremists” and “fringe” candidates and either ignored, ostracized or silenced by their own parties. 

 Indeed, the sad truth of the matter is that for at least the last hundred years of our history, the truth of our national history and the proper role of government has been intentionally obfuscated by those in power so that they might remain in power.  Crises are intentionally created and managed for maximum benefit to the ruling party, the tactic of fear mongering is shamelessly employed in an attempt frighten the masses into compliance, to coerce them to cede their God given rights to a government promising security and stability.  It would be most prudent for all citizens to remember the words of Benjamin Franklin, who once stated that a people who are willing cede their liberty for the promise of security deserve neither and will lose both.

One need not be the most astute student of history, politics and economics to seek and find the truth. One need only approach this quest with honesty and as open a mind as one can muster given the context in which this information has been heretofore presented to the public over the course of the last hundred years.  Interestingly, upon studying pertinent and largely omitted factual information one will quickly realize that the actual historical facts do not agree with the claims of politicians and other government officials, with the presentations and interpretations offered by most influential and mainstream news media, and certainly not with much of what passes for acceptable curriculum in government schools and in universities throughout the country. 

It is no small thing to make such an assertion, to declare that the modern American political system, economic system and a substantial portion of the news-media is based upon a lie; a lie well known and understood by those who perpetuate it and manipulate it to their advantage and to the detriment of this republic.  The lie itself is rooted in a political movement whose objective has always been Statism: that is, the elevation of the rights and authority of the State superceding and ultimately usurping the rights of the individual.  In the case of our republic, the process is manifesting itself by “giving” rights to the State, specifically the federal government, while simultaneously and necessarily abrogating the rights of individuals.  The transfer of power is transformed from a “bottom-up” system of popular representation to a “top-down” system of administration (czars, anyone?) according to the design originally devised by the early American Progressives, most notably Wilson, the Roosevelts, Goodman, Croly, Beard and Dewey.

 The lie itself is the very history of this nation, political and economic, as it is now popularly explained, understood and accepted.  As outrageous as this claim may seem on the surface, I expect that the reader will find the documentary evidence as powerful and irrefutable as I did, simply because it is true.