Liberty Forged

the State has no money of its own, so it has no power of its own. ` Nock

Posts Tagged ‘stagflation’

Financial Crisis solved: Start Liquidating Federal Gov’t assets

Posted by Jesse on March 14, 2009

It’s called leading by example

A Forgotten Day and A Forgotten Country Harry Brown

In 1886 the federal debt was $1.40 per person (adjusted for inflation to dollars of 2002 value). In 2002 the federal debt was $21,564 per person.

Free to Plan A Secure Retirement Harry Browne

The federal government owns trillions of dollars worth of assets it doesn’t need and shouldn’t have. These include power companies, pipelines, idle military bases, business enterprises, over 400,000 buildings, oil and mineral rights, commodity reserves, and much more including 29% of all the land in the United States.

When the federal government is reduced to just its Constitutional functions, there will be no reason for it to continue hoarding those assets. They can be sold to the public, putting them in the hands of people who will use them more responsibly and more productively. And the sales will generate the money to clean up the financial mess the politicians have made.

Repudiating the National Debt Murray Rothbard

It is ridiculous for a citizen to be taxed by one arm of the federal government (the IRS), to pay interest and principal on debt owned by another agency of the federal government. It would save the taxpayer a great deal of money, and spare savings from further waste, to simply cancel that debt outright. The alleged debt is simply an accounting fiction that provides a mask over reality and furnishes a convenient means for mulcting the taxpayer.

Social Security, perhaps the most revered institution in the American polity, is also the greatest single racket. It’s simply a giant Ponzi scheme controlled by the federal government. But this reality is masked by the Social Security Administration’s purchase of government bonds, the Treasury then spending these funds on whatever it wishes. But the fact that the SSA has government bonds in its portfolio, and collects interest and payment from the American taxpayer, allows it to masquerade as a legitimate insurance business.

…This combination of repudiation and privatization would go a long way to reducing the tax burden, establishing fiscal soundness, and desocializing the United States.

In order to go this route, however, we first have to rid ourselves of the fallacious mindset that conflates public and private, and that treats government debt as if it were a productive contract between two legitimate property owners.

What is America Harry Browne

If you devote yourself to fighting against the latest political proposal, you may be wasting your time.

The growth of government is inevitable because the major issue has already been decided: there is no longer an America of tiny government, voluntary association, and the free market. So the only arguments now are over how the politicians will run our lives the Republican way or the Democratic way.

Our one hope is to persuade our fellow Americans that a return to the Bill of Rights could bring us much smaller government, much greater personal income, access to more low-cost products and services, and the freedom to live your own life as you think best not as the President or Congress wants.

Every battle is trivial compared to the fight to restore that unique America.

And don’t forget about the Fed

The Solution Murray Rothbard

To save our economy from destruction and from the eventual holocaust of run away inflation, we the people must take the money-supply function back from the government. Money is far too important to be left in the hands of bankers and of Establishment economists and financiers. To accomplish this goal, money must be returned to the market economy, with all monetary functions performed within the structure of the rights of private property and of the free-market economy.

Abolish the Fed Ron Paul

From the Great Depression, to the stagflation of the seventies, to the burst of the dotcom bubble last year, every economic downturn suffered by the country over the last 80 years can be traced to Federal Reserve policy. The Fed has followed a consistent policy of flooding the economy with easy money, leading to a misallocation of resources and an artificial “boom” followed by a recession or depression when the Fed-created bubble bursts.


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Keynes wants a World Central Bank – Congress is allowing it to happen

Posted by Jesse on February 5, 2009

For more on the subject of monetary policy and centralization of the economy click on the Rockwell Podcasts links to left.

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Before the US House of Representatives, February 4, 2009, introducing the The Federal Reserve Board Abolition Act, H.R. 833.

Madame Speaker, I rise to introduce legislation to restore financial stability to America’s economy by abolishing the Federal Reserve. Since the creation of the Federal Reserve, middle and working-class Americans have been victimized by a boom-and-bust monetary policy. In addition, most Americans have suffered a steadily eroding purchasing power because of the Federal Reserve’s inflationary policies. This represents a real, if hidden, tax imposed on the American people.

From the Great Depression, to the stagflation of the seventies, to the current economic crisis caused by the housing bubble, every economic downturn suffered by this country over the past century can be traced to Federal Reserve policy. The Fed has followed a consistent policy of flooding the economy with easy money, leading to a misallocation of resources and an artificial “boom” followed by a recession or depression when the Fed-created bubble bursts.

With a stable currency, American exporters will no longer be held hostage to an erratic monetary policy. Stabilizing the currency will also give Americans new incentives to save as they will no longer have to fear inflation eroding their savings. Those members concerned about increasing America’s exports or the low rate of savings should be enthusiastic supporters of this legislation.

Though the Federal Reserve policy harms the average American, it benefits those in a position to take advantage of the cycles in monetary policy. The main beneficiaries are those who receive access to artificially inflated money and/or credit before the inflationary effects of the policy impact the entire economy. Federal Reserve policies also benefit big spending politicians who use the inflated currency created by the Fed to hide the true costs of the welfare-warfare state. It is time for Congress to put the interests of the American people ahead of special interests and their own appetite for big government.

Abolishing the Federal Reserve will allow Congress to reassert its constitutional authority over monetary policy. The United States Constitution grants to Congress the authority to coin money and regulate the value of the currency. The Constitution does not give Congress the authority to delegate control over monetary policy to a central bank. Furthermore, the Constitution certainly does not empower the federal government to erode the American standard of living via an inflationary monetary policy.

In fact, Congress’ constitutional mandate regarding monetary policy should only permit currency backed by stable commodities such as silver and gold to be used as legal tender. Therefore, abolishing the Federal Reserve and returning to a constitutional system will enable America to return to the type of monetary system envisioned by our nation’s founders: one where the value of money is consistent because it is tied to a commodity such as gold. Such a monetary system is the basis of a true free-market economy.

In conclusion, Mr. Speaker, I urge my colleagues to stand up for working Americans by putting an end to the manipulation of the money supply which erodes Americans’ standard of living, enlarges big government, and enriches well-connected elites, by cosponsoring my legislation to abolish the Federal Reserve.

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The Insolvency of the Fed

Since August 15, 1971 the US dollar has been an irredeemable paper currency. Every irredeemable paper currency in history has failed. Yet, the experiment of the US dollar and the rest of the fiat paper world continues.

figure11

Average of World Central-Bank Interest Rates (FED, BOJ, BOE, ECB, Switzerland)

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The [Moral] Case for Gold [Sound Money]

Posted by Jesse on January 9, 2009

What is happening today, but told yesterday

[MP3] Current Economic Conditions [Frank Shostak]

And other goodies….

[MP3] Ron Paul in 1984 @ a Seminar on Money and Government

[Article][MP3] The Economics of a Free Society [Ron Paul]

[Article][MP3] Why the Gov’t Must Stop the Fed’s Massive Pumping [Frank Shostak]

[MP3] Power and Ideology in DC [Jeffrey Tucker]

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Stagflation! Must be that strong economy…

Posted by Jesse on February 29, 2008

The problem with “debt monetization”

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