Archive for November, 2008

Ron Paul, Bailouts, Freedom is Popular, and the Future

November 29th, 2008 12:16 am  |  by  |  Published in Activism, Bailouts, Banking, Big Government, Constitution, Debt, Economics, Federal Reserve, Free Market, government spending, Individual Responsibility, inflation, Liberty, Maven Commentary, Money, Philosophy, Politics, Ron Paul, Socialism, Taxes  |  1

There are those of us lamenting the potential demise of the so-called “freedom movement” or what has come to be called the Ron Paul Revolution now that Barack Obama is headed for the White House. Even if it wanes I believe the undercurrent will always be there because liberty is in our nature.

I believe every single human on earth is born with the freedom gene. It is only the social and cultural order that ends up pushing us away from it as we get older and “learn” how the world works. I’ve often spoke of Ron Paul as a teacher, but he could also be thought of as a de-programmer. It is hard to unlearn the political status quo dogma for far too many of us. It takes time, constant effort, and a little luck.

As sure as the sun rises Ron Paul will continue to deliver his freedom message. He does so again below in an interview with Russia Today.

Yes, freedom is popular. In fact, it is human nature.

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Thanksgiving – Thanks to the Free Market for Giving

November 28th, 2008 12:08 pm  |  by  |  Published in Education, Free Market, History, Liberty, Obama, Politics, Socialism  |  Comments Off

Jacob Hornberger at the The Future of Freedom Foundation wrote an article called Thanksgiving, Socialism, and the Free Market in which he tells us the true story of how he Pilgrims changed from a failed socialistic system to a free-market system to overcome mass starvation:

The story of socialism at Plymouth Rock is one that few Americans are taught in their public (i.e., government) schools. On landing at Plymouth Rock, the Pilgrims established an economic system in which all their crops would be owned in common and whose harvest would be distributed to each family in accordance with its needs. The colonists felt that such a socialist system would be consistent with their deep religious convictions.

There was one big problem, however, with this spread-the-wealth economic system: starvation. When everything was owned by everyone, people would look for excuses to avoid working in the fields and the harvests were not sufficient to keep everyone fed.

Finally, after repeated food shortages Plymouth Rock Governor William Bradford declared an end to socialism at Plymouth Rock. He announced that every family would be responsible for planting and harvesting its own crops and would be free to keep the bounty.

The result? No more starvation! Instead, a bountiful harvest and more than enough food for everyone.

And that’s what the first Thanksgiving was all about — to give thanks for the plentiful bounty that had been brought into existence through the “miracle of the market.”

Hornberger goes on to lament the fact that Obama strongly supports socialistic programs, which does not bode well for our future.  Read the whole article here.

And you can read more about the system of socialism the Pilgrims put into place (the Mayflower Compact) in this article by Chuck Muth.

No Matter What They Do, The Great Collapse Continues

November 28th, 2008 10:17 am  |  by  |  Published in Activism, Bailouts, Banking, Big Government, Debt, Economics, Federal Reserve, Free Market, government spending, Individual Responsibility, inflation, Liberty, Maven Commentary, Money, Philosophy, Taxes  |  1

Bailouts, rescues, economic stimulus oh my. What we have is a few thousand (maybe) people in high places that firmly believe they can control the free market decisions of more than six billion people. That is laughable. Not even Messiah-in-Chief Barack Obama has this power. The market is speaking no matter what efforts the delusional goons do to try to silence it.

In a most pessimistic AP article we learn of the next stage of our economic reckoning.

Black Friday’s retail shoppers hunting for holiday bargains won’t be enough to stave off what’s likely to become the next economic crisis. Malls from Michigan to Georgia are entering foreclosure, commercial victims of the same events poisoning the housing market.

Hotels in Tucson, Ariz., and Hilton Head, S.C., also are about to default on their mortgages.

That pace is expected to quicken. The number of late payments and defaults will double, if not triple, by the end of next year, according to analysts from Fitch Ratings Ltd., which evaluates companies’ credit.

“We’re probably in the first inning of the commercial mortgage problem,” said Scott Tross, a real estate lawyer with Herrick Feinstein in New Jersey.

No matter what they do, it seems the economic meltdown will continue. Here is what I’m doing “just in case”: Purchasing a safe. Purchasing a few guns and learning how to use them. Buying as much physical gold and silver as I can afford. Keeping 3-6 months of living expenses out of the bank. Stocking up on non-perishable food. Am I crazy?

Read More »

Obama Appoints Yet Another Fed Thug, Paul Volcker

November 28th, 2008 9:47 am  |  by  |  Published in Bailouts, Big Government, Commentary, Debt, Economics, Federal Reserve, Free Market, government spending, History, inflation, Money, Obama, Socialism  |  Comments Off

While Obama is being heralded as “making the economy a top priority even before taking office on Jan. 20″ by appointing former Chairman of the Federal Reserve, Paul Volcker, as his economic adviser, the reality is that this actually sets off several more red flags.

Although Paul Volcker is often credited with having slowed and eventually ended inflation in the late 70′s and early 80′s during his tenure with both Jimmy Carter and Ronald Reagan, let’s not forget that he is, above all, a Fed guy, one who believes in fiat monetary policy, in creating bubble and bust markets via interest rate manipulation.  In other words, he does not truly understand sound economic policy and is not capable of making the tough choices which will save our economy and our country.

Even more disturbing is the fact that Volcker is very much buddy-buddy with George Soros, the wealthy billionaire socialist who has actively declared war on the U.S. dollar. And as if this were not the worst of it, Soros himself might actually be a contender as one of President Barack Obama’s advisers.

Who says you don’t get what you pay for?  George Soros has certainly proven that you can buy and pay for an election in The United States of America.

Peter Schiff, Vindicated

November 26th, 2008 7:01 pm  |  by  |  Published in Banking, Big Government, Debt, Economics, Federal Reserve, FOX news, government spending, inflation, Investing, Liberty, Media, Money, national debt, Peter Schiff, Politics, Taxes  |  2 Responses

As we’ve mentioned quite a few times here at Liberty Maven, Peter Schiff is one, along with Ron Paul and other Austrian Economists, who accurately predicted the current economic crisis years ago.  Here’s an amusing little video made up of video clips from 2006 and 2007 in which Peter Schiff makes his dire predictions and warns people away from stocks (especially bank stocks) while people like Arthur Laffer and Ben Stein were lauding the “stable financials” and predicting a rise in housing prices and the DOW at 16,000 in 2008.  One even offered a BUY recommendation for Washington Mutual!

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Obama’s Exit Strategy and the Future of our Republic

November 26th, 2008 12:22 am  |  by  |  Published in Activism, Big Government, Constitution, Foreign Policy, Individual Responsibility, Libertarianism, Liberty, Maven Commentary, Obama, Philosophy, Politics, War  |  Comments Off

Last week I wrote an article suggesting that Obama put the decision of war in Afghanistan back in the hands of Congress where it belongs. In a Washington Times op-ed Bruce Fein makes a similar argument for Obama’s Iraq exit strategy. I couldn’t agree with him more.

After Inauguration, he should declare the war illegal because it was initiated by President George W. Bush pursuant to an unconstitutional delegation of power by Congress effectuated by the Authorization for the Use of Military Force Against Iraq (AUMFAI). Mr. Obama should announce that all combat operations in Iraq will cease 30 days after Inauguration unless Congress enacts a statute directing him to continue the war.

He can depend on congressional inaction. Members lack both the incentive and political backbone to take responsibility for sending men and women to die on a fool’s errand to make Shi’ites, Sunnis, and Kurds democrats after 5,000 consecutive years of despotism and vicious tribal, ethnic or religious enmities.

After Congress balks at President Obama’s challenge, all U.S. combat troops in Iraq would return home in an orderly fashion beginning February 2009. President Obama could blame any ensuing Iraqi strife, ethnic cleansing or domination by Iran on Congress for failing to prolong the war.

Fein goes a bit further and suggests that such action is a win-win for Obama.

The first three comments to this piece on the Washington Times site demonstrates the complete and utter ignorance many people still have about the authority of the Constitution. The document is law. It is not just law, but the “supreme law of the land.” Just because a lawmaking body in the 21st century makes a law in direct opposition to the Constitution doesn’t mean the 18th century document is null and void.

In practice though, that is what the Constitution has become and sadly, that may be all that matters. The great question of our time may be: How can the Constitution effectively protect our natural rights when the citizens have left it up to the federation of money and power hungry bureaucrats in Washington to enforce and follow it? They aren’t interested in natural right preservation. They are solely interested in power preservation.

Maybe the answer lies in the question itself. It is up to the people to enforce Constitutional restrictions on our government, but how can this be done in this era of government and citizen co-dependence?

In time, the only remedy for such co-dependence may be a new Declaration of Independence.

There Are No Miracles

November 25th, 2008 8:33 pm  |  by  |  Published in Bailouts, Debt, Economics, government spending, Individual Responsibility, Money, Politics  |  2 Responses

A Russian political analyst has predicted the U.S. is in the process of collapse, and hope for an Obama miracle will disintegrate in the spring. Do you believe he is right?

Asked why he expected the U.S. to break up into separate parts, he said: “A whole range of reasons. Firstly, the financial problems in the U.S. will get worse. Millions of citizens there have lost their savings. Prices and unemployment are on the rise. General Motors and Ford are on the verge of collapse, and this means that whole cities will be left without work. Governors are already insistently demanding money from the federal center. Dissatisfaction is growing, and at the moment it is only being held back by the elections and the hope that Obama can work miracles. But by spring, it will be clear that there are no miracles.”

Read the full report at Drudge

Why the Citibank Bailout is Such a Raw Deal

November 25th, 2008 3:53 pm  |  by  |  Published in Bailouts, Banking, Big Government, Chris Martenson, Debt, Economics, Free Market, government spending, inflation, Liberty, Money, national debt, Politics, Socialism  |  Comments Off

Chris Martenson, creator of the Economics Crash Course, was quick to analyze the Citigroup bailout and point out that not only was the money handed over with no questions asked (compared to the grueling questioning given to the Big Three automakers), but that the type of loan given to Citigroup, called a “non-recourse loan”, basically gives the company a strong incentive to default on the loan and pocket $270 free and clear:

This is the most staggering giveaway I could have possibly imagined. To understand why, let’s review the definition of a non-recourse loan:

A nonrecourse loan is a secured loan (debt) that is secured by a pledge of collateral, typically real property, but for which the borrower is not personally liable. If the borrower defaults, the lender/issuer can seize the collateral, but the lender’s recovery is limited to the collateral. If the property is insufficient to cover the outstanding loan balance

This means that when, not if but when, the Citi defaults on this loan there will be no mechanism for recourse for the taxpayers. Why am I confident that Citi will default on this particular rescue loan? Because they are smart people and paying it off would be stupid.

The $300 billion of “assets” pledged as collateral for this loan are worth, perhaps, half that. Possibly as little as 10% if Citi has done its job and purged the worst of the worst from its balance sheet to tuck into this sweetheart deal.

So it’s very simple. Either Citi makes good on the loan and repays all $300 billion and then takes possession of perhaps $30 billion of damaged assets or it defaults and keeps $300 billion.

What would you do?

Read the whole article here.

Ron Paul: The Bailout Surge

November 25th, 2008 2:33 pm  |  by  |  Published in Bailouts, Banking, Big Government, congress, Constitution, Economics, government spending, Liberty, Money, national debt, Politics, Ron Paul, Taxes  |  Comments Off

As often is the case, Ron Paul is the voice of reason when it comes to political and economic matters.  In this week’s Texas Straight Talk he quite clearly opposes any types of bailouts — of the “Big Three” automakers, or otherwise — and reminds us that the true responsibility of the government is to be “good stewards” of our nation’s resources:

We must remember that governments do not produce anything. Their only resources come from producers in the economy through such means as inflation and taxation. The government has an obligation to be good stewards of these resources. In bailing out failing companies, they are confiscating money from productive members of the economy and giving it to failing ones. By sustaining companies with obsolete or unsustainable business models, the government prevents their resources from being liquidated and made available to other companies that can put them to better, more productive use. An essential element of a healthy free market, is that both success and failure must be permitted to happen when they are earned. But instead with a bailout, the rewards are reversed – the proceeds from successful entities are given to failing ones. How this is supposed to be good for our economy is beyond me.

Read the whole column.

Is Ron Paul The Future Of The GOP?

November 25th, 2008 12:19 pm  |  by  |  Published in Activism, Politics, Ron Paul  |  Comments Off

David Weigel points out some interesting facts about the GOP’s efforts for a makeover. He also quotes former Ron Paul campaign staffer Justine Lam being quite critical of Paul’s Campaign for Liberty.

“I was very skeptical at first,” Lam told me last week, “and I still am. Without Kent Snyder’s direction and vision [longtime Paul friend and ideas man Snyder died this year], this can degrade into one of Ron’s organizations from the past. Look at FREE—it’s nothing. All they do is self-publish Ron’s book, and not even at high quality. These organizations became salary collection devices for people close to Ron Paul. They didn’t become real forces like the Institute for Justice, for example, that are able to create change. They just exist.” Lam criticized the CfL for its “long, rambling” early e-mails—while it’s improved since launch it’s still not a group that has anything to teach Republicans.

Read it all here.