Liberty Maven

America has become a nation marching to war in lockstep, left foot following right foot towards the all-too-certain future that has already befallen the body’s other half. Crushing electoral defeats serve as little deterrent in a political system where the pendulum swings comfortably on the same axis, the defeat coming at the hands of the opposite extreme which just as aggressively pursues the same noble goals via the same dead ends with the same overdrawn credit card.

What are the American people to care if their government’s missile strikes land in the bedroom of a young boy who was guilty only of being born in the wrong nation, to the wrong family, at the wrong time? That missile was far enough away from the American’s suburban home not to leave an impression in his more sophisticated brain – you know, the one with the attention span that lasts longer than 10 seconds only when celebrity gossip or local rumors or evening sitcoms are on the agenda. The same brain that can comprehend the suffering of an upper-middle income child who needs more government grant money to get that Bachelor’s degree in Political Science, so they can go to Washington, DC and feel self-important, lobbying a tiny cell of the organism that is the American war machine.

That machine is marching, left foot following right.

That young boy looks down in spirit alongside a newfound friend from a faraway land called Afghanistan. Thousands of miles away, a child’s family is no longer weeping. The older brother has given his life a new meaning, driven by the emotion that could only be delivered from a plane high above. He doesn’t know who the missile was intended for, but he knows where it came from, and he is determined to exact revenge within his lifetime, for his brother, for his family, for his God. He’s training with a group he had no interest in just a year ago, far away from his family, who quietly, tearfully told him they understand.

His parents see the men in uniform patrolling the streets where they grew up. They march by in lockstep, left foot following right.

They’ve seen the strange men before – different uniforms, hammer and sickle where stars and stripes now sit – and they wait for the day when their homeland will once again be theirs, and theirs alone. They rush home to meet curfew as the sun fades below the barren mountains to meet the other side of the globe, giving rise to a morning that will see political speeches on the glory that democracy has bestowed upon such an ungracious people who are unwilling to accept responsibility for it.

Americans greet the day with a fill-up and a subsequent lament about the outrageous price of oil over their five-dollar lattes. In the corner of the marble-floored coffee shop, a muted television shows a talking head offering his take on the political ramifications for the next election cycle. Trendy twenty-somethings are too busy discussing the imminent danger of global warming for sea otters to look up and notice. Fiscally conservative thirty-somethings on the opposite side of the street are voicing their contempt at another tax dollar wasted on health care.

The missiles are too far away to matter – if a Libyan dies in the chaos and no American is around to hear it, he apparently doesn’t make a sound. Left side of the street agrees with right.

War isn’t personal, especially those of the humanitarian variety. Profiteering government contractors, self-righteous politicians, and Americans on Main Street have one thing in common: they all want to keep it that way. They all march in lockstep, left foot now following right. Previous generations have dragged their feet and forced the gears of the war machine to come to a halt, if only long enough for the leg in power to flex and leap forward once more. Nothing close exists in the modern-day war machine. Our generation has needed no story about the humanitarian causes for their violence, for they’ve managed to pretend it simply doesn’t exist. Of apathy and outrage, apathy was the easier pill to swallow, poison though it may be. The government and the media won’t stop selling it, FDA regulations be damned.

One day, the realities of war will set in, and it will be far too late to take back the lives, the money, the apologetic excuses for why the politician on my side means well, unlike the politician on the other side who did the same thing. That day can’t come soon enough.

Quotes of the Day

“No Intervention!” banner displayed by Libyan insurgents

“We have to get him ourselves.” – Libyan demonstrator

“Wherever the standard of freedom and Independence has been or shall be unfurled, there will her (America’s) heart, her benedictions and her prayers be. But she goes not abroad, in search of monsters to destroy. She is the well-wisher to the freedom and independence of all. She is the champion and vindicator only of her own. – John Quincy Adams, then-Secretary of State, 1821

We are inspired by the desire of the Libyan people to overthrow Muammar Qadhafi. Sadly, Qadhafi has reacted violently to their protests, and a civil war is now being waged.

We hope the insurgents are committed to freedom, and if so, we hope they will prevail.

But they must to do it without our help. This is THEIR struggle, not ours. As the letter below shows, a U.S. military presence may only undermine the insurgency, not help it.

The good news is that the Obama Administration has shown skepticism toward intervention.

The bad news is that the advocates for intervention are prominent and vocal.

To counter their pressure, we need more members of Congress to speak out in opposition.

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Last week Donald Rumsfeld went on the Opie and Anthony radio show to promote his new book, “”. It was an odd interview to begin with. Opie and Anthony are not known for their hard-hitting political interviews, but rather, numerous fart and sex jokes. Comedian Louis C.K. was in studio during the interview, and decided to ask Donald Rumsfeld a humorous question. You can listen to the interview here:

Compare that interview with the rather hard-hitting tough journalistic interview Judge Andrew Napolitano did last night with The other Donald:

And here is the Judge after the interview, saying that Rumsfeld described the interview as the “toughest” he’s had. I’m thinking he wishes he’d rather be asked if he’s a lizard by Louis CK than be interviewed by the Judge again.

Here is an excellent appearance by Ron Paul on MSNBC’s “Morning Joe”. Fiscal responsibility, foreign policy of Obama, and more is discussed. Ron Paul at one point bluntly calls Barack Obama a warmonger.

Yes, Ron Paul has won his second consecutive CPAC straw poll and as expected all the anti-libertarian, defense=offense, neo-conservatives (and Donald Trump, whatever he is) are dismissing the victory. They say it doesn’t mean anything. They don’t know what they are talking about, as usual. Of course it means something.

It doesn’t necessarily mean that Ron Paul will be the GOP nominee in 2012. Paul hasn’t even announced if he’s running yet. The victory’s meaning really has little to do with 2012 and much to do with the future direction of the Republican Party.

The organizers of CPAC sheepishly denounced their own straw poll prior to announcing Ron Paul as the winner. Appropriately enough, while they denounced the presidential preference question they gushed when talking about the results to the other questions in the poll. Yet the same people that voted for Ron Paul answered those other questions as well. Why did they not suggest that those results were skewed?

Yes, Ron Paul’s Campaign For Liberty and Young Americans for Liberty made it easier for supporters to attend CPAC by offering discounted tickets and lodging packages. They did not “bus them in” as some suggested. The reason so many showed up at CPAC for Ron Paul is because they are true political activists. They are active, vocal, and dedicated to spreading the liberty message to those who are and aren’t willing to listen.  This is something the GOP has been missing for a long time.

It is mainly foreign policy differences that keep the old guard GOP from embracing these young Ron Paul activists. Perhaps if the rest of the Republican Party could ever understand the fundamental differences between…

1. preemptive war and national defense
2. isolationist and non-interventionist
3. anti-semitism and ending all foreign aid
4. blaming America and blaming American policy

…they could welcome Ron Paul and his supporters. The CPAC straw poll result suggests an effort should be made to understand and perhaps embrace these differences. After all, isn’t the ultimate Republican goal to defeat Obama in 2012? Seeing eye to eye with Ron Paul and his numerous activist supporters could go a long way toward that goal.

I have little hope this will happen, but in the long run it may not matter. Many of those young Ron Paul supporters are growing up, feeding on liberty, and will become office-seekers in the future.

The result of the CPAC straw poll does have meaning. It suggests the future is burning bright with the fire of liberty.

by Peter Schiff, CEO of Euro Pacific Capital, and host of The Peter Schiff Show, broadcasting live from WSTC Norwalk CT from 10am to noon Eastern time every weekday, and streaming at www.schiffradio.com

Based on his recent public comments, Fed Chairman Bernanke seems determined to give the U.S. dollar the reputation of Egypt’s Hosni Mubarak: an unwanted relic of the past that everyone agrees must go, but stubbornly clings to a privileged position. The dollar is currently the world’s ruling currency, but, as with Mubarak, I believe that growing public discontent will spur regime change quicker than most pundits expect.

Clearly, the most significant problem facing central bankers around the world is the recent eruption of inflation, which is sparking unrest in Asia and the Middle East. With respect to this issue, Bernanke is alternating his responses through two different personas.

Sometimes he chooses to act like Baghdad Bob, the Iraqi Information Minister who, in the opening days of the 2003 invasion of Iraq, continued to deny the presence of American troops even as U.S. tanks rumbled behind him. The parallel to Bernanke’s testimony to Congress today is striking.

Speaking to the House Budget Committee, Baghdad Ben not only claimed that there is no evidence of overall inflation in the U.S., but that even food and energy prices are rising less than 1% annually. This is simply not true. He then claimed that the Fed’s massive QE purchases of U.S. Treasuries do not distort the yield curve, despite the fact that he has stated repeatedly that the program was specifically designed to lower long-term rates.

The reason behind these lies should be evident. Acknowledging inflationary threats would force him to raise rates. But Baghdad Ben knows that the current economic “expansion” is a lie built on a weak foundation of ultra-low interest rates. He knows that even marginally higher rates will trigger a savage return to recession. In his view, the only choice is to sell us an elaborate fiction – even when it obviously conflicts with the facts.

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by John Browne, Senior Market Strategist at Euro Pacific Capital

This week, the financial media celebrated as the Dow closed above the 12,000 mark for the first time since June 19th, 2008. For many, this milestone is another sign that the financial nightmare of the past three years will soon fade in the rearview mirror.

The euphoria over share prices has been bolstered by recently released data which catalogs rising consumer confidence and spending, and corporate earnings reports that have beaten estimates. In the meantime, the bond markets have remained resilient, despite evidence of massive public debt problems that bubble beneath the surface. But is this optimism based upon enough sound evidence to support long-term investment?

The recovery in the Dow, to within some 15 percent of its all-time high, should not be much of a surprise to our readers at Euro Pacific, nor should it count as a mark of confidence to anyone. We have always held that ultra-low interest rates distort the investment landscape by forcing yield-starved investors from bonds into equities. Driven by this massive government subsidy, along with a high real rate of inflation, the stock market cannot help but rally. Indeed, the only surprise is that our current rally took so long to develop.

The rally even appears to be immune to the uncertainties created by the unrest in Egypt, which is arguably the largest global political crisis we have seen since the invasion of Iraq in 2003. The big question is: can this rally be trusted for the longer-term? Three factors highlight the risks.

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The great Robert Higgs makes the best argument yet against the idiotic neo-conservative “blame America” accusation in his latest commentary.

Higgs writes:

In discourse about public affairs, words matter much more than most people appreciate. We live immersed in language so twisted and abused, in part by the design of interested parties and in part by the sloth of inattentive speakers and listeners, that we often fail to notice or object to linguistic miscarriages that pass for intelligent expression. The examples are legion, but here I have in mind a particular turn of phrase that American conservatives, especially neocons, have employed in recent years as a counterstrike against critics of U.S. foreign and defense policy:  They describe such critics as “blaming America” or sometimes as “blaming America first” for attacks against this country or its citizens abroad.

Thus, for example, those who fault U.S. Middle East policies for creating the conditions that caused Muslim fanatics to attack Americans, both at home and overseas, are said to be blaming America for what the policy’s defenders’ take to be the unprovoked acts of terrorists bent on imposing Sharia on the United States, destroying this country’s freedoms, or attaining another such farfetched objective.

Applications to earlier events and policies include use of the expression to fend off the arguments and evidence of those who maintain that the Roosevelt administration waged economic warfare in 1940-41 to provoke a Japanese attack that would justify and lead directly to full-fledged U.S. engagement in World War II; and use of the expression against those who argue that the Truman administration bore at least partial responsibility for the onset of the Cold War. People accused of blaming America are commonly called “America haters.”

Although this riposte to criticism is the rhetorical tactic of first resort for the more simple-minded, flag-waving species of self-anointed patriots, it is by no means their exclusive property. Neocons writing in such elevated outlets as the New York Times and the Washington Post have not been bashful about smearing their critics as people who “blame America.” I noticed this linguistic resort most recently in a commentary by an intelligent, reasonable economist and was shocked that he would embrace this trope while suggesting that “pacifists” and others who criticize U.S. foreign and defense policies are unrealistically imagining that international disputes and warfare can somehow be eliminated from human affairs.

In my view, replying to policy critics by accusing them of “blaming America” is worse than linguistically crude and ideologically twisted; it is stupid.

Read the rest of Higgs at The Independent Institute.

Ron Paul and incoming Kentucky Senator Rand Paul sat down with an interview with Anderson Cooper earlier tonight. It was an interesting contrast of styles with a similar message.

by Michael Pento, Senior Economist at Euro Pacific Capital (www.europac.net)

The Fed’s lucky streak of luring bond investors with low interest rates may be drawing to a close. Nevertheless, the extended period of low borrowing costs has bred a new breed of investor. To the bulls and bears, we can now add the ostriches – those who bury their heads in the sand of declining debt service ratios while refusing to face up to intractable levels of total US government debt. If these ostriches were to actually look at the numbers, they would realize that it is their investments which are made of sand.As the issuer of the world’s reserve currency, the US government has enjoyed the benefits of low interest rates despite its inflationary practices. When we run a trade deficit with a country like China, they have a strong incentive to ‘recycle’ the deficit back into our dollars and Treasuries. This practice has hidden what would otherwise be much higher borrowing costs and much lower purchasing power for the dollar. This artificial price signal allows people like Paul Krugman to claim that the Obama Administration’s stimulus programs should be much larger. Because our yawning fiscal deficits have not driven bond yields significantly higher, he sees no reason to curtail spending. Krugman wants to spend like its World War III, and then has the nerve to call those worried about the budget mindless zombies!

Krugman is just one partisan Democrat shouting at mirrors, but the misunderstanding has struck the right-wing as well. Last week, in a debate with me on CNBC’s The Kudlow Report, Brian Wesbury, Chief Economist of First Trust Advisors and writer for The American Spectator, claimed that our $9.3 trillion national debt is of little consequence because our GDP is a far greater. However, he failed to note that our $14.7 trillion of GDP only yields about $2.2 trillion in revenue for the Treasury. To fully access that entire GDP, the government would have to raise all tax brackets to 100% without producing any reduction in output or decrease in revenue. This is, of course, preposterous. As was demonstrated in the 1970s, even small increases in marginal tax rates have a substantial negative impact on output. A healthier appraisal would center on the fact that our publicly traded debt is now 422% of our annual tax revenue.

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