the holistic radical

April 9, 2008

What is the Significance of the National Debt?

It’s a good indicator of how we ruined a once solid economy.

http://www.naturalnews.com/022931.html

Comments by Mike Adams, the Health Ranger

As we wind our way towards an election between the professional liars that have been put forward as candidates for U.S. President, it seems to be a great time to remind us all about the issue being routinely ignored by virtually everyone (except Ron Paul, of course, who was never really embraced by the “please lie to me” mainstream public). To what issue am I referring? The national debt, of course.

As you can see in this bumper sticker, the way to annoy a liberal is to “get a job,” as the pop culture bumper sticker says. To annoy a conservative, all you have to do is “defend the Constitution.” But how do you annoy everybody? That’s simple: Explain the national debt.

Americans don’t want to hear about the national debt. It’s like a family living paycheck to paycheck, maxed out on their credit cards, trying to pretend the collection notices are all being lost in the mail. They don’t want to admit they have no ability to actually pay off the debt they’ve incurred by pursuing a flamboyoant lifestyle, blowing wads of cash on high-priced wines, luxury vehicles, and an occassional line of coke — they desperately want to imagine they can keep living on money that appears from nowhere, regardless of how much they owe to everybody else and the fact that their incomes don’t even come close to matching their expenditures.

Too bad every household in America doesn’t have its own Federal Reserve, huh? If it did, we could all just print money to pay off our debt, save our skins, and ignore the fundamentals of economics. But even in Washington today (and New York), the Federal Reserve is too busy bailing out greedy, criminally-operated banks to turn much attention to the much larger issue of the United States’ national debt. Apparently, saving the banks is more important than anything else, and the Fed is now committed to destroying the U.S. dollar through runaway hyperinflation in order to prevent a few rich bankers from facing the consequences of their outrageous sub-prime lending sprees.

America runs its finances like a crack addict

But let’s get back to the national debt for a moment. The United States government is broke. The only reason it’s been able to operate for this long is because other nations and foreign central banks have been foolish enough to keep lending the U.S. government more money. It’s like giving cash to a crack addict and hoping he will somehow seek out a drug rehab center on his own.

This is the person who never gets a job, never makes an honest living, but yet somehow manages to hit up everybody else for cash. You know how it works: “I need to buy a car to get a job,” they say. And then when you pony up the cash for their car, they get drunk and wreck the car, and they never try very hard to get a job in the first place. They keep spending and spending, tossing money down the drain on blows of crack, meth, heroin or booze. They promise to go into rehab someday, if you’ll only help them through “the next month” with a little more cash. This is the life of a drug addict. (Do you know one? Everybody does, it seems…)

America is that drug addict. It borrows cash from the central banks around the world, blowing it all on Medicare prescription benefits signed into law by Bush (money for drugs, see?). It spends trillions on military campaigns that accomplish nothing positive, yet enrage the global community and recruit lifelong enemies of this nation. Notice how the price of oil has more than tripled since the war with Iraq started? It’s so bad now that truck drivers are going on strike over the price of diesel.

America spends money not merely like a drunken sailor, but like a crack-addicted sailor with a wheelbarrel piled high with one-hundred dollar bills, locked in a room full of Gov. Spitzer’s favorite hookers and a suitcase spilling over with blow.

Don’t dare explain the national debt to anyone

But try to explain the simple workings of finance, debt and economics to the uninformed, and you’ll be accused of being a doomsayer, a pessimist, or — the worst insult in today’s fear-based society — unpatriotic! How dare you point out the economic truths that will soon bring this country’s federal government to its knees! Such blatant truths shall not be tolerated… especially not in a country whose entire financial system is based on a cascade of fictional financial instruments propped up by nothing more than wishful thinking and Enron-style accounting fraud.

Let me translate all this for you in serious terms: The United States is already broke. The Federal Reserve is destroying the currency. The U.S. dollar will soon be virtually worthless. There is no saving the dollar, and there’s no saving the savings of any U.S. citizen foolish enough to be holding dollars when the music stops. The Federal Reserve has already decided to do anything in its power to save the rich bankers; even if it means destroying the value of all the dollars held by hard-working Americans. The day will come, folks, when your savings accounts will all be “recalibrated” and you’ll be given ten cents on the dollar while the Fed slinks away with 90% of your savings, using it to bail out overpaid bank owners.

And the federal government? Under a long string of presidential crooks — Democratic and Republican alike — it has decided to pursue a dangerous experiment called, “What happens if we never pay our debtors while running up more debt?” That experiment, not surprisingly, will end in the financial demise of this nation. (But there’s good news: A new, better system may emerge from the dust of the greenback… keep reading…)

You can’t defy the laws of gravity… nor economics

These aren’t careless predictions, by the way. These are simple observations the follow the fundamentals. Why are the nations of the world fleeing the U.S. Treasury debt auctions? Why are dollars increasingly worthless everywhere except in the United States itself? The answer is because the Fed is hyperinflating the currency to save the banks, even while the government is snorting yet more crack and spending unprecedented levels of increasingly-worthless dollars on drugs and war (or, as they call it, “medication and defense”).

Hence the bumper sticker: Annoy everyone. Explain the national debt. People don’t want to hear this. They’d rather imagine none of these problems exist; that debt doesn’t matter; that unlimited dollars can be created out of nothing with zero impact on peoples’ savings; that the U.S. government is wise enough to avert financial disaster. These are the hopes of the deluded. These are precisely the ramblings of Enron’s accountants before the crash, or dot-com stock pushers before that crash. They’re the slobbering blatherings of all the people who said housing prices will never fall, and therefore everyone will get rich off the never-ending housing price booms!

Being right does not make you popular

I’ve spend many years pointing out the idiocies of the deluded. I publicly predicted the dot-com crash and began warning people to get out of the market in 1998 – 2001. (This is a matter of public record, not some wishful hindsight.) I also publicly predicted the collapse of the housing market right here on this website, beginning nearly two years ago. And now, those predictions that once seemed “radical” are the Wall Street Journal’s front page news. What am I predicting now? Like I said, it’s not a prediction, it’s just an observation.

It’s like observing gravity. If you toss something into the air, you can be confident it’s going to come falling back to the ground. You don’t have to “predict” gravity; it’s a law of the universe. It works by itself, like clockwork, regardless of what you want it do to (I’m ignoring near-light speed travel, relativity, quantum physics, and all that fun stuff for the purposes of this metaphor, by the way, for those readers who are physicists). Likewise, when you see a nation throw its dollars into the air, spending its way to oblivion, ignoring its debt and ramping up its spending to even higher levels, it doesn’t take much of a prediction to know that it’s all going to fall back to the ground in a grand economic collapse.

So I’m not even calling the coming collapse of the U.S. government a “prediction.” It’s just common sense. It’s as obvious as gravity. If you don’t believe me, do the math. There is no mathematical solution to the current financial crisis facing not merely the banks and the currency, but the federal government itself. The only unknown factor is WHEN things will happen. Can the Fed help the economy limp along in a state of near-collapse for another year? Perhaps. Five years? Maybe. Ten years? I doubt it.

Now for the good news: The good news is that the U.S. federal government will eventually go bankrupt. Yes, that’s the good news! Because after the financial chaos passes (which will not be fun, believe me), we have a chance to create a new society, a new currency and a new, honest system of government that actually represents the People for a change. The current cabal of corruption and criminal behavior that sits in Washington and pretends to protect the interests of the voters is about to find itself on the receiving end of an angry mob. The 200+ year experiment called The United States of America is in its final chapter. But out of its failure, we can learn important lessons. We can learn things that will help us create a better future society. Lessons like:

• Never let a private company (the Federal Reserve) control the money supply.

• Never let “representative” legislators vote in your place. Insist on a DIRECT Democracy in the next society. (We don’t need Senators and Congresspeople, folks. The whole concept is long since outdated, and most Senators and Congresspeople are crooks.)

• Never let a government abandon the gold standard for its currency. If you do, that government will inevitably hyperinflate the currency and leave the people broke.

• Never let corporations run the government. If you do, your government will become a branch of the corporations, and the regulators (like the FDA, USDA, etc.) will become agents of corporate-sponsored terrorism that abandon all ethics and destroy the health and safety of the People.

• Never allow the centralization of power in one branch of government. For example, do not allow the creation of Executive Orders we’ve seen signed by the President.

• Never allow one man (the President) to commit acts of war. Didn’t we learn this after Vietnam?

• Never allow people from industry to take jobs in the government where they become biased, pro-corporate pushers of everything from pharmaceuticals to beef.

• Never allow politicians to censor scientists.

• Never allow the population to be dumbed-down through sub-standard public schools that only raise a generation of obedient workers, not skeptical thinkers.

• Never allow the media to control the population through advertiser-supported propaganda and violent programming.

• Never allow politicians to destroy citizens’ rights. When they attempt to do so, march on your capitol (in a non-violent way, of course). Arrest the politicians. Prosecute them for crimes against the People.

• Never allow corporate lobbyists to have access to lawmakers. If you do, you’ll end up with a corrupt government that only protects corporations, not the People.

• Never allow your government to operate in secret, with secret prisons, secret wiretapping laws and secret war “evidence” that is never made public. Secrecy breeds corruption. Honest societies do not need to conduct their judicial processes in secret.

• Never allow corporations to play God with the food supply by genetically modifying the crops.

• Never allow corporations to be granted intellectual property ownership over seeds, genes, animals and medicines. If you do, you will one day wake up impoverished, “homeless on the continent your fathers conquered,” to quote Jefferson.

• Never allow banks to operate on a fractional reserve system of loans and money creation that’s just begging for a series of cascading failures.

… I could go on, but you get the point. We have learned some very tough lessons over the last 200+ years, and once this present government collapses, it is crucial that we apply those lessons in creating a new system that abandons tyranny and embraces genuine freedom. We will have this opportunity soon. Many Americans will lose their life savings on the journey towards this new opportunity, but if we maintain our collective vision of a brighter future society, I believe we can create something much better out of the ashes of this failed experiment called the United States of America.

Please note: In no way do I support violence of any kind in creating a new society in the aftermath of this current one. I only support collaboration, openness, freedom and great respect for all living creatures as well as our sacred planet Earth. I believe the passing of this failed government is a blessing, not a curse, and I believe the collapse of the U.S. dollar will ultimately help awaken many to the tough but rewarding decisions that will face us all in the very near future. We must consciously decide to take back our freedoms, our rights and our futures from a system of corporate and government control that has destroyed our planet, exploited our people, and stolen our savings. But if can make the rights decisions based on creating a more promising future for our children, then the rewards will be unimaginable.

We the People hold the power to create a new society based on the freedoms and promises once held sacred in this land. Be ready to play your role, a constructive role, in the aftermath of this current society. And do not be surprised when gravity kicks in and this entire fictional government charade comes crashing down along with the fractional reserve banking system, the criminal Federal Reserve, the war-mongering politicians and the endless, endless debt. There is no way out now other than collapse and rebirth.

I can’t say when it will come, or exactly how it will play out. I only urge us all to remain positive, informed and constructive. The coming chaos will be painful in the short term, but out of the ashes of a failed society, we can work together to rebuilt a new one based on real freedom, honest money, sensible medicine and limited government.

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December 6, 2007

Stop the Presses–No Taxes on Tips

Another reason to rally behind Ron Paul. This is one ballsy guy–because he tells the truth that needs to be told, plain and simple. He doesn’t need handlers or spin. He might be too uncomplicated for American politics.

No Taxes on Tips

It is an outrage that waiters, waitresses, and other service-sector employees have to pay taxes on the tips they earn. The IRS makes an estimate of how much service-sector workers will make in tips, and taxes them on it even if the taxpayer did not actually earn as much as the IRS’ estimate!

Tips provide a substantial portion of the income of many service-sector employees, many of whom are young people just trying to make a few extra dollars to get through school, or single parents often balancing two jobs while trying to make enough to raise a family. This tax amounts to nothing more than the federal government punishing these employees for working hard and doing their jobs well.

I have introduced H.R. 3664 in Congress to end this problem. The Tax Free Tips Act of 2007 will exempt tips from federal income and payroll taxes. Ending taxes on tips will give workers an immediate pay raise, letting them keep more money to put toward things like a house or car payment, their retirement, or their own and/or their children’s education.

When you give someone a tip, you should not have to simultaneously tip the federal government.

http://www.ronpaul2008.com/issues/no-taxes-on-tips/

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BusinessWeek

Facetime November 29, 2007, 6:09PM EST text size: TT

Ron Paul on the Evil Fed, the IRS, and Saving the Buck

At 72, Ron Paul is a Web phenomenon. His campaign says that some 80% of the $17 million raised in the past four quarters—including about $4.3 million in one October day—has come from online supporters. And according to a mid-November poll, the Republican Presidential hopeful is gaining ground in New Hampshire, though he’s still in single digits. Like maverick candidates such as Howard Dean in 2004 and Ross Perot in 1992, Paul seems to connect with voters hungry for unvarnished positions. Paul, an obstetrician and 10-term congressman from the Texas Gulf Coast, voted against the war in Iraq and wants the troops home fast, but it’s his economic ideas that are the most radical: He detests the Fed and would abolish the IRS. Paul was about to climb on a plane for a campaign trip to South Carolina when I caught up with him.

MARIA BARTIROMO

As President, how would you strengthen the economy?

RON PAUL

The most important thing is to get control of the budget, because the more we spend and the higher the deficit, the more we have to tax and borrow and inflate the currency—literally create new credit to buy Treasury bills. We need to restore confidence in the dollar before [its decline] gets out of control. The easiest place to cut spending is overseas because it’s doing so much harm to us, undermining our national defense and ruining our budget. I would start saving hundreds of billions of dollars by giving up on defending the American empire. I’d start bringing our troops home, not only from the Middle East but from Korea, Japan, and Europe, and save enough money to slash the deficit. We can actually pay down the national debt and still take care of people here at home. That would restore a lot of confidence.

What is the most important change you would make?

Aim for the federal government to immediately live within its means, to take the pressure off the Fed to create money.

And that means what?

Means no more inflation. If the Fed doesn’t create money out of thin air—and they do it mostly to accommodate the deficits—that would restore the soundness of the dollar and give us our purchasing power back.

But as President, you’re supposed to be independent from the Fed. You would encourage the Fed to stop printing money?

You know this idea that we can create a secret bank and they manage things and rarely tell us—or Congress or the Executive Branch—what they’re really doing, there’s a problem there. I can’t even go to a monetary policy board meeting of the Federal Reserve, and I’m on the Banking Committee of the U.S. Congress. I want open government, and certainly the Fed ought to be open. But it’s an institution that really shouldn’t exist. [Its financing] allows Big Government to get bigger without being responsible. And that’s why we have runaway spending for both warfare and welfare.

Hasn’t the Fed been effective in providing liquidity in the current credit crisis?

You’re right, but it’s sort of like a drug addict. The drug addict demands more or he’s going to have convulsions. The economy would have a convulsion if the Fed didn’t inject more credit. But if you continue to do that, the problem gets worse. You can’t solve the problem of monetary inflation with monetary inflation. These circumstances have all been created by our government and the Fed.

How was the recent crisis caused by our government?

It was astounding that you could get a mortgage at 4%, and this was all due to the Fed creating money and artificially lowering rates, which gets people to do the wrong thing. Builders do the wrong thing, and people borrow money and buy houses they can’t afford.

How would you change tax policy?

Ideally, get rid of the income tax. In the meantime, I’d give huge tax credits to anybody who wanted to take care of their own medical care. I’d give tax credits for all educational benefits. I’d get the government out of managing education and medicine. And do it by changing the tax code. I have a bill right now that is very popular, especially for people who are trying to work their way through college or who are having a tough time making ends meet, and that is to exempt all taxes on tips. People who have a first job or a second job waiting on tables and doing other things, they’re harassed by government rules and regulations, and sometimes they have to pay higher taxes than the tips they actually receive. I’d move next to saying no taxes on anybody who’s trying to get through college. Why do we tax them, make it hard for them, then give them grants? It doesn’t make any sense.

Who are your economic advisers?

I don’t have any. I read Austrian economics, which I’ve been doing for 30 years. So my advisers have been [von] Mises and Hayek and Sennholz.

Do you consider yourself a friend or a foe of Wall Street?

If they believe in freedom, free markets, and sound money, they’ll love me. But if they like creating credit out of thin air, they’ll see me as a threat. I was one of three people who voted against Sarbanes-Oxley because I thought it was detrimental to Wall Street. I’d repeal it.

You want to take the troops out of Iraq, but what about Iran? What do we do if other nations turn hostile?

I’d treat them something like what we did with the Soviets. I was called to military duty [as a U.S. Air Force flight surgeon] in the ’60s when they were in Cuba, and they had 40,000 nuclear weapons and intercontinental ballistic missiles, and we didn’t have to fight them. We didn’t have to invade their country. But to deal with terrorism, we can’t solve the problem if we don’t understand why they [attack us]. And they don’t come because we’re free and prosperous. They don’t go after Switzerland and Sweden and Canada. They come after us because we’ve occupied their land, and instead of reversing our foreign policy after 9/11, we made it worse by invading two more countries and then threatening a third. Why wouldn’t they be angry at us? It would be absolutely bizarre if they weren’t. We’ve been meddling over there for more than 50 years. We overthrew a democratically elected government in Iran in 1953; we were Saddam Hussein’s ally and encouraged him to invade Iran. If I was an Iranian, I’d be annoyed myself, you know. So we need to change our policy, and I think we would reduce the danger.

You have vehement new supporters. What’s driving the sudden interest in your candidacy?

I think they’re sick and tired of what they’re getting. They’ve lost all trust and faith in the government. They believe in the American Dream, and they’re getting a nightmare. And they’re rallying behind the program I’ve been working on for 30 years—defending the Constitution, limited government, free markets, sound money, and self-reliance; believing people can take care of themselves better than government can. The nanny state doesn’t work, the police state doesn’t work, and neither does the warfare. And they know it.

Maria Bartiromo is the anchor of CNBC’s Closing Bell.

http://www.businessweek.com/print/magazine/content/07_50/b4062021769214.htm

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December 5, 2007

Which candidates know anything about monetary policy?

Filed under: money and balanced budgets, politics, Ron Paul — Tags: , , , — sesame seed @ 4:27 pm

Here, Ron Paul makes several important points worth remembering:

–It is possible to eliminate the national debt. Not only that,but we can’t keep ignoring it and passing it on to future generations who will have to become work-slaves to debt their whole lives and have no retirement.

–We don’t need higher taxes to eliminate the national debt. Where are our taxes going? For illegal wars; to pay off cartels like the Federal Reserve, who own our debt and lord it over us; to the private subcontractors who are running this country and doing the services regulated government once did.

–The Federal Reserve creates debt by artificially pouring money into the money supply–also known as inflation. Inflation is what makes your money worth less in terms of purchasing power. Purchasing power, like it or not, is what drives our economy. But inflation also discourages saving, an, contrary to what you don’t hear anymore, saving is an important part of our economy, as well as an important tool for individual security.

–” Real conservatives have always supported low taxes and low spending.”–Yes, who we have in government are not Republicans–not that these labels matter, “Republican” or “Democrat”–the ones in power are all neo-conservatives with a very precise agenda to dominate the country and erode your liberties.

–Corporate welfare: no candidate I know of is even making this a topic on the table, other than Ron Paul. It is rampant and needs to end. If corporations love capitalism so much, they can sink or swim without taxpayer handouts, period.

–Even if you are not a libertarian, if you are not aware of the need for sound money policy, you really can’t know how to govern, how to implement social policies, how to know the impact of laws, how to distribute wealth, etc. Like the old saying, “follow the money.”

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Debt and Taxes

Working Americans like lower taxes. So do I. Lower taxes benefit all of us, creating jobs and allowing us to make more decisions for ourselves about our lives.

Whether a tax cut reduces a single mother’s payroll taxes by $40 a month or allows a business owner to save thousands in capital gains taxes and hire more employees, that tax cut is a good thing. Lower taxes allow more spending, saving, and investing which helps the economy — that means all of us.

Real conservatives have always supported low taxes and low spending.

But today, too many politicians and lobbyists are spending America into ruin. We are nine trillion dollars in debt as a nation. Our mounting government debt endangers the financial future of our children and grandchildren. If we don’t cut spending now, higher taxes and economic disaster will be in their future — and yours.

In addition, the Federal Reserve, our central bank, fosters runaway debt by increasing the money supply — making each dollar in your pocket worth less. The Fed is a private bank run by unelected officials who are not required to be open or accountable to “we the people.”

Worse, our economy and our very independence as a nation is increasingly in the hands of foreign governments such as China and Saudi Arabia, because their central banks also finance our runaway spending.

We cannot continue to allow private banks, wasteful agencies, lobbyists, corporations on welfare, and governments collecting foreign aid to dictate the size of our ballooning budget. We need a new method to prioritize our spending. It’s called the Constitution of the United States.

http://www.ronpaul2008.com/issues/debt-and-taxes/

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