Archive for January, 2010

Worst Economy Since 1946

January 29, 2010

The GDP fell 2.4%, the worst yearly drop since 1946, and the first yearly drop since 1991. The last time the economy didn’t grow during the year was so long ago thta kids entering college this year haven’t seen it in their lifetimes.

Now, this quarter we’re expected to see a little bit of an uptake in the GDP. Forecasters are saying this is due to inventory resupply. After this quarter, however, there is going to be another massive dip in economic activity. We are on the edge of a double-dip recession. We may see a new depression, something most people alive today have never seen.

What is causing this?

It’s really quite simple, if you understand what wealth is and where wealth comes from. Socialists like Barack Obama are only interested in where wealth ends up, without understanding what created it in the first place, nor understanding what it really is.

Wealth is an accumulation of value. Everyone has a different value for everything. This depends on a large number of factors, but ultimately, only individuals can determine what they really want. We are fooling ourselves if we think we understand what our neighbors want and value. Only we know what we really want.

The same thing has different value to different people. This is another lesson socialists don’t understand. If I don’t need a car, and you give me a a  car, you’re wasting that car! Instead, let people find someone who really wants what they have and exchange it for something they really want. That is, create markets, and people will create wealth on their own.

Every free trade interaction creates wealth! See, if I go into Safeway, hand over a dollar and buy a doughnut, both Safeway and I walk away with more wealth than we started with. I like money, but I’d rather have a doughnut than a dollar. Safeway likes doughnuts, but they’d rather have the dollar than the doughnut. Both people get what they want, which was more than what they had before.

Even the opportunity to trade is valuable! That’s because the stuff I have becomes more valuable to myself simply because I can use it. Drop me off in Seoul, Korea, and suddenly, dollar bills aren’t so useful for me. I’ll gladly exchange them for Korean won. Drop me off in Federal Way, Washington, and I’ll trade those won right back for dollars.

Armed with just the information above, the way to wealth is clear: Create, protect, and exploit opportunities to trade, and the people will create wealth on their own.

If this is too abstract for you, let’s consider what government taxes, borrowing, spending, regulation, and uncertainty do to an economy.

Taxes increase the price of everything. This is because if you want to do something, you have to pay taxes above and beyond what you’d normally pay. If I want to work for a company, they have to pay me more money than they’d have to pay if there were no taxes. If I want to buy a dougnut, I have to pay more than I’d otherwise pay due to taxes. If taxes go high enough, certain kinds of trade opportunities disappear altogether. The damage to wealth due to taxes is much greater than the value of taxes collected. Taxes hurt a lot more than they can ever help.

Borrowing decreases the amount of money available for lending. Let’s imagine you want to buy a house. You need to borrow money. However, searching high and low, near and far, you can’t find any bank willing to loan money to you. “Sorry, bud,” they all say. “See. we’ll make 5% off of you, but Uncle Sam is paying us 7%, and we’ve already loaned all our money to him.” When governments borrow money, the money that otherwise could be loaned out to individuals disappears. Government borrowing destroys wealth just like taxes do.

Government spending redirects economic activity to less efficient activity. The reasoning is simple. If people discovered that doing XYZ is profitable, they would do it, barring any other more profitable scheme. When government tilts the marketplace by paying people to do XYZ, which they otherwise wouldn’t do, then that means the other, more profitable things remain undone. Government spending destroys wealth just like taxes do.

Government regulation reduces opportunity. This is because government issues edicts making it illegal to do things that people might otherwise do. If people weren’t doing it in the first place, there is no sense for a regulation to limit the behavior. Government regulation destroys wealth just like taxes do.

Government uncertainty increases risks. See, if you knew what the government would be doing 10, 20, 50, and 100 years from now, you can plan accordingly. If you can’t tell what the government will do next year, you have to hold off until you find out. It’s really simple. If you were a child and you weren’t sure whether your family was going to go to the county fair, you wouldn’t know whether to save your money for the fair or to spend it right now. If you knew ahead of time, you could plan accordingly. Uncertainty means you can’t make good plans.

If President Obama wanted to help, he would do the following:

  1. Dramatically cut taxes.
  2. Eliminate government borrowing.
  3. Dramatically cut spending to match tax revenue.
  4. Eliminate the vast majority of economic regulations.
  5. Eliminate uncertainty by encouraging constitutional amendments that keep taxes low, the government from borrowing, and the government from regulating the economy.

As it is, he is doing completely the opposite.

  1. Proposing dramatic tax increases.
  2. Dramatically increasing government borrowing, to the point of near-bankruptcy.
  3. Dramatically increasing spending.
  4. Dramatically increasing the scope of regulation, and “cracking down” on those who might be violating them.
  5. Increasing uncertainty by proposing one socialist policy after another, and vowing to resurrect them after they have been killed.

Economics ultimately boils down to one question:

Who is best at meeting a person’s needs?

Socialism fails because its answer is always, “A centralized government with tyrannical powers.”

The United States has won because it has chosen, largely, “The person himself.”

My Reaction to Obama’s State of the Union Address

January 29, 2010

I haven’t laughed so hard in a long time.

I especially love the joke where he says he’s going to balance the budget—next year! Hahah!

And the one where he says there’s a consensus on global warming!

Obama has some of the best comedy writers in the industry. It was much funnier than anything I’ve seen in any movie this year, or on any TV show.

But Obama has perfected the deadpan expression, too. When he says things like he’ll solve today’s financial crisis by balancing the budget next year, it almost seems like he actually believes it.

What’s especially funny is the way no one, on any side of the political spectrum believes anything he said. I mean, the left worked hard to make people believe President Bush was a liar, but with Obama, he’s done more to make people believe the president is a liar than anyone could’ve accomplished in a thousand years of smear tactics.

Dangerous to Whom?

January 29, 2010

Gateway Pundit has the skinny on an anti-Tea Party website claiming that the Tea Part is Over. (link) Of course, it’s funded by Barack Obama’s thugs, the SEIU.

Their mission is to ensure that the Tea Party’s “dangerous ideas” don’t get legislative traction.

“Dangerous ideas?” Which ideas, exactly, are dangerous?

Is it dangerous to allow the people to keep more of the money they break their back to earn?

Is it dangerous to stop the government from bankrupting our country?

Is it dangerous to say the correct way of dealing with an economic crisis is not with a socialist takeover of our economy?

Dangerous to whom?

I understand the frustration on the left. Their entire worldview and paycheck depends on bilking as much money as possible out of the working class’ pockets. The SEIU is one giant political organization who is funded by the common laborers across our country, and who use their money and political power to extract even more money. The Democratic Party wins elections by buying votes with the taxpayer’s money. These people can’t live without feeding on our food and sucking our life energy away.

Yes, our ideas are dangerous. They are dangerous the same way penicillin is dangerous to harmful microbes, or deworming medication is dangerous to intestinal worms. Our ideas are dangerous to bureaucrats, union thugs, wannabe socialist dictators and the cockroaches that live in the shadows of Washington D.C.

“Not True”

January 28, 2010

Justice Alito tells Barack Obama, “Not True.”

If I were President Obama…

January 28, 2010

Tonight, this is the speech I’d give if I were President Obama.

Senators, Representatives, thank you for having me tonight.

It is my constitutional duty to address you in the State of the Union from time to time. That’s in Article 2, Section 3. I am still grateful for the opportunity you’ve given me to fulfill my constitutional oath.

Before I begin, I want to remind you that we are the federal government of the most powerful and successful nation to ever grace God’s earth. We have been blessed with liberty and wealth that was unimaginable to our ancestors, and still unimaginable to the vast majority of the world.

In that sense, let us treat tonight’s address with due reverence and dignity. I ask that you hold your applause to the end, and save your comments for after the speech.

Thank you.

To begin, let me be frank with the American people. I was not raised in a family like most of yours. My mother, father, and grandparents, although I dearly love them and respect them, did not teach me much about what liberty and freedom are all about. My education was under the hands of known communists and traitors to our country’s ideals. In times past, my mind has been clouded by illogical and unreasonable thoughts. However, after taking some time to ponder on our country’s history, and reading the sacred writings of our forebears, I have come to several conclusions.

First, the document that should be reverenced more than any other on this planet is the document penned by Thomas Jefferson and adopted, unanimously, by the Continental Congress in July of 1776. And among that document, these words stand above the rest:

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn that mankind are more disposed to suffer, while evils are sufferable than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.

Brothers and sisters, friends, patriots, people of this great country, people of the divine birthright that we call “human” of every nation, kindred, tongue, let me reaffirm these words.

As I pondered these words, I thought about the many injustices throughout the world. Among them, there are two types.

The first is the injustice of men or small organizations of men against other men or small organizations of men. The second, is the injustice of great groups of men against little groups of men.

Of the first, we need a society that reverences and respects the law. By so doing, the smallest injustice can be remedied, quickly and swiftly. These are the laws that you are so familiar with and that apply to everyone’s lives everywhere.

Of the second, we need a society that fears and constrains government. For it is governments, and governments alone, that have the power to murder countless millions of innocent people. We’ve seen this time and time again in our world’s history.

The most despotic government of all, far more terrible than any we’ve seen in history, is the communist regimes in Russia, China, Southeast Asia, North Korea, and other places throughout the world. Among these communist regimes I count communist sympathizers and admirers like Adolf Hitler and the Third Reich. Hundreds of millions of people have been tortured, starved, and murdered by these regimes.

Why is it that these governments were able to so thoroughly humiliate their own people, while other governments can scarcely lift a finger, as I have tried, to impose injustice on the people?

I declare to you, it is because of the Constitution of the United States.

In times past, I have denigrated this sacred document. I have felt like it was the barrier between injustice and liberty. I felt like if governments were simply free to do what they wished, we would all be better off. But now that I have had time to ponder these things, I have come to realize the exact opposite is true.

Indeed, the constitution is chains, chains used not to subjugate the people, but bind the government. These chains constrict the size and ability of the federal government, insisting that certain key elements are in place to prevent anyone, like myself, from obtaining too much power over the people. These chains are the very chains that have stopped me from realizing my dream of taxing businesses into oblivion, and driving everyone to seek refuge from government welfare programs. These chains prevented me, a very popular and powerful president, from enslaving you to that same government.

Thank God Almighty for those chains! It is because of those chains that I stand before you thoroughly humbled and humiliated. The peoples of Virginia, New Jersey, and Massachusetts have sent a message to Washington D.C., and that message is heard in the oval office. I am sorry. I was wrong. I will no longer pursue the socialist policies of the past.

Turning over a new leaf is difficult. It means making new friends and saying farewell to old ones. And you have no way of trusting that my words are sincere. Tonight, I hope to be short on promises and long on actions.

Let’s begin with the internal affairs of our country.

Senators, Representatives, I have come to understand that the constitution is meant to be interpreted not only by the Supreme Court, but by the congress and presidency as well. I swore an oath to the document, not the court, and certainly not to you. I come here to declare that I will never, ever, do anything that violates this sacred document.

Please review, carefully, Article 1, Section 8. There is a limit to the things you can do, very carefully spelled out there. Anything that approaches any of those limits are things I will not honor.

To begin with, I have fired almost all the employees of the federal government. They should be receiving their pink slips right now. You have written a budget to pay them, that is true. But the spending is, as far as I can see, completely unconstitutional.

Don’t worry, they wouldn’t have anything to do. All the bureaucratic regulations passed without a vote of the congress and a signature of the president is no longer law. I have rescinded all the executive orders as well. The people will no longer look to the executive branch to learn what the law is. The attorney general will prosecute no one guilty of violating any of these executive orders or regulations.

Also, I have notified the Fed that we will no longer be borrowing any money from them. They are an unconstitutional bank, My treasurer, Timothy Geithner, will pay back every red cent we have borrowed from them. I have also instructed the Fed that they will no longer print another penny of US currency until the Congress write specific legislation to print such money. The executive has no power to determine how much money to print. Only congress can do that.

The retirement accounts of all the federal employees is being liquidated as I speak. I am going to hold on to the money until congress tells me what to do with it. Keep in mind, congress, that I cannot invest America’s money in any market. It gives me too much power to pick winners and losers. I will only give the money as salary to employees.

I have also decided that I will spend the budget up to as much as I please, as long as it doesn’t exceed the budget. I will retain the extra and keep it in the treasury. You can use that money to spend on items listed under Article 1 Section 8.

I have also stopped all payments to any foreign, state, or local government. I have also stopped all payments to any individual or corporation who is not a direct contractor for the American people. This is because, as it is quite clear, you are not allowed to spend America’s money to buy votes.

I have also stopped payments on all Social Security and Medicare plans. The Federal Government is not a retirement account. I would ask Congress decide how to return the people’s money to them. I prefer we repay in proportion to how much we have taken, but that is up to the representatives to decide.

On taxes, I have stopped collecting taxes on any wage. It appears that income and wages are two different things. I agree with the Supreme Court. I ask that Congress decide how to return all the money we’ve unconstitutionally collected on wages.

The next federal budget will be carefully scrutinized. I promise the American people, that every line item will be carefully examined. The test I will apply is simple:

One, does it adhere to, plainly, one of the items in Article 1, Section 8?

Two, is it general enough that I get to decided who to give the money to?

Three, is it important to spend the people’s money on?

If I cannot answer, clearly, yes, to all three of those questions, I will let you know which items I feel are disagreeable and veto the entire bill. There is no room for negotiation on this matter. I would prefer we spent none of America’s money than spent a penny of it poorly.

I wish to speak about taxes for a moment. Note the careful wording of Article 1 Section 8 regarding taxes. It says, clearly, that these things should be uniform throughout the nation. Note that the current tax code is anything but uniform. A person may find themselves taxed under different laws based on a variety of different reasons.

The tax code needs to be rewritten, now. I have instructed my Treasurer to stop collecting all taxes until this matter is resolved. Until you can come up with a tax code that is obviously uniform, I cannot, in good faith, execute such a tax law.

Now, you may be thinking we need some sort of gradated income tax. I disagree. This is not uniform. If we are to have an income tax, it is to be a tax that is uniform—like 15% on everyone, or 20%, or whatever number you choose. You cannot tax one person at 0%, another at 5%, and still others at 15% and expect that to be uniform.

In fact, I believe we have a tremendous untapped resources for cash.

First, we are allowing banks to print the majority of money out there. By gradually increasing the reserve limit, and reserving the right to print money only for congress, we can remove massive amounts of money from circulation. To compensate, congress can order the printing of new money to replace it, thus paying for whatever we need. My treasury secretary assures me that there is more than enough money to pay off the national debt should we pursue this policy over the next ten years. Let us begin immediately.

Next, the federal government owns a significant amount of land throughout the United States. We can, and should, sell that land. The Federal Government doesn’t need that land to provide the services listed in Article 1, Section 8. If the people want to turn the national parks into nature reserves, they are free to do so. However, the federal government can do no such thing.

But if the economy grows, the money supply must increase to satisfy the demand for new money. Otherwise, we are hit with deflation. I ask congress, particularly the House of Representatives, to ask the people in their districts whether there is too much money or too little. Ask them if prices are falling or rising, if their salaries are growing or diminishing. Then use this information to vote on whether we need to expand the money supply and by how much. This money is free to be spent on anything listed in Article 1, Section 8.

In fact, I am assured that there is more than enough money to pay off the national debt and maintain a healthy government without collecting taxes for the foreseeable future. If this is true, then we should be able to have our federal government work off of the growth of the economy alone.

This is the financial plan that the Founding Fathers knew about and set up for us in the constitution. It is one of literally thousands of tidbits of incredible wisdom in government.

I’d like to speak to the people, who elect you to office. People of the United States, for too long you have been told that the federal government is allowed to do things it is simply not allowed to do. If you don’t like the limitations on government, you are free to ask your representatives and senators to craft an amendment, through the amendment process. I don’t feel like the constitution needs much more amending, but it does need a lot more adhering.

To put it another way, you elected me to do certain things. If I cannot do the most basic things right, what good am I? What good is a pro basketball player that cannot dribble or shoot, or doesn’t even understand the most basic elements of the game? In a way, the federal government is like the basketball player that arrives with football pads and helmet, and uses a baseball bat to beat the opposite team into submission. Because the federal government won’t play by the rules laid out in the constitution, we aren’t even playing the game of government any more, but despotism and tyranny.

Now, I’d like to take a chance to explain the situation we are in internationally.

It appears that I came into office expecting that people would see things my way and we can all sing “Kumbaya” and there would be peace. Unfortunately, it appears that I was extremely naive in this regard.

I am taking a new approach with foreign policy. I am adopting the Teddy Roosevelt approach. I will speak softly, and carry a big stick. I hope Congress will spend money, wisely, to give me the biggest stick possible.

Right now, a good stick would be the kind of stick I could use to beat organizations like Al Qaeda at their own game. I’d also need a stick to threaten the Iranian regime to allow free elections in their country. I’d need another stick to drive into Kim Jong Il’s skull. At the other end of that stick, I’d like a spade to dig up the graves of those who have been murdered by that regime, and fill them with those who did the murdering.

These are the sticks I need right now. A few other sticks might prove useful. We have a problem with piracy. I’d like a fleet of small navy ships to destroy piracy around the world.

We have a problem with a growing belligerence from China and Russia. I’d like a global defense network and missiles and bombers and other devices to make them understand that war is no longer an option in this world.

If we can convince all of our belligerent co-inhabitants of planet earth that belligerence is not an option, there will be no war. Unfortunately, the despots of this world only understand war, and so we shall deliver it when they are fully ripe.

In North Korea, I want to show my wristwatch. You have, from this time on, exactly one hour to surrender. That’s right, surrender. Our troops will move into your country in exactly one hour, and a coalition government of the Japanese, South Koreans, and Americans will be installed. Those guilty of abusing the people will be executed after a trial according to the laws of that government. The North Korean people will be fed and cared for, and we will begin the process of integrating them into South Korean society.

In Iran, you have just one hour from the time I’m showing right now to surrender. No, we don’t want to invade you. We just want you to surrender to the activists in your country. Come out from your palaces, offer an olive branch, and relax the laws of your country. If need be, have your top leaders resign, and call a special election immediately. I suggest you invite foreign observers to monitor the elections so that it can be properly certified. I would suggest turning to someone else besides former President Carter for this, as he’s proven himself to be untrustworthy. Should you fail to surrender, I will order my troops, who have been victorious in toppling the Saddam regime, to march through Tehran on their way to Afghanistan. I assure you, you will not like what your people will do to you when the US Marine Corps and Airborne Rangers are covering their backs. We have fought your people in Iraq, and we find them easy targets.

I have a phone in my office, and you have the phone number. If I don’t hear a phone call from both of you by the time an hour has passed, I will execute my authority under the war powers act.

To all the other countries of the world, I declare that I want to open our borders to your trade. We are rich because we trade freely with ourselves. We want to be richer, and so do you, by expanding the number of people we can freely trade with. I am asking congress to pass legislation immediately allowing the import and export of goods with no federal tariff. Adam Smith wrote plainly in “The Wealth of Nations” of the great benefit a nation will have if they engage in free trade while others do not.

I believe the time is now to start a constitutional amendment to ensure that we will always have open borders with every country who wishes to trade with us. We can put in constitutional limits on how we limit trade, and eliminate them altogether.

But we should also welcome nations into our country who want to enjoy the full protection of being a part of us. I foresee a time when every nation is governed by a limited government like our federal government. Perhaps, one day, all governments will unite under a common constitution which enslaves the government to the will of the people. This way, we can ensure that no matter what language you speak, what your ethnic background is, or what your family’s history might be, we are all guaranteed basic civil rights and liberties.

On a final note, I want to impress upon your minds the importance I now put upon the document I have sworn to protect and defend. Nothing in this world will get between me and that document. I am devoting myself, entirely, to elevating it above everything else in our government.

I encourage everyone, everywhere, to likewise read and ponder upon the message of that document. Everyone, from kindergartners to graduate students to business leaders to factory workers to senators and representatives, should come to know the principles behind our government, and hold their representatives to its principles.

I can always dream, right?

Thank you, Detractors

January 24, 2010

I wish to express, without sarcasm or any kind of impoliteness, my sincere gratitude to those of you who disagree with me and engage in the debates we have in the comments. I enjoy debating, and I don’t mind looking like a fool to take my pleasure.

My only wish is that I could present these debates to our readers with more clarity. Suggestions are welcome, along with criticisms.

I believe that what divides left from right in the United States is the thing that make America great. In other words, the very fact that we don’t agree is the reason why the United States is #1 in the world. We may disagree, and yet we live, work, and worship together.

Whatever differences we have, we all agree on a few fundamental truths, though. Among them is mutual respect and general loving-kindness as the highest ideals. Through debate and engagement, we can actually come closer and agree to move forward in those areas where we agree. At the very least, perhaps we can convince a few of their absurdity or just vent our steam.

I hope I am treating you with respect and allowing you to present your arguments in a way you feel is proper. Yes, I enforce some limits, especially due to length and occasionally, foul content. You may never see the content I never ran with, and I may never remember what I’ve deleted over the years.

Use this post as a way to encourage me to do better, or tell the world how terrible a host I am.

On Romney

January 24, 2010

It’s too early to think about 2012.

So let’s do so anyway.

Mitt Romney is a surprising candidate, and he has already racked up 3 wins agaisnt Obama. Every time Obama and Romney have been involved in an election of some sort since 2010, Romney came away winning.

I hope people continue to underestimate Romney. It’s always easiest to destroy a haughty opponent.

I would encourage other solid republican candidates to start coming forward, at least in the background. From what I’ve seen, though, no one else seems up to the task of taking on the Romney machine.

Obama – Reagan and National Bankruptcy

January 24, 2010

If you were to set out to deliberately bankrupt the nation, what would you do?

The same thing you would do to commit personal financial suicide:

  1. Go as deep into debt as possible.
  2. Minimize your income.
  3. Maximize your financial obligations.

It took two centuries to run up the national debt. Obama doubled it in only his first year in office and tried to double it again over the next ten years with health care.

Remember Jimmy Carter?  OPEC reduced oil output to the point that the price of oil was four times 1976 levels causing “stagflation” with energy prices skyrocketing past everything else.  The economy was on the ropes. We had double-digit inflation, double-digit interest rates and double-digit unemployment. Federal tax receipts were also down.  We are dependant on income taxes.  When income drops so do tax receipts. Cap and trade will drive energy prices through the roof , reduce energy supplies and drive down government revenues.  Cap and trade will make the Jimmy Carter recession look like a cake walk.  It will be Jimmy Carter Squared!

Between TARP, Obama Care and Cap and Trade, we have the perfect economic storm brewing.  National bankruptcy will be the inevitable result.  What does national bankruptcy look like?

We have an example: (more…)

A New Tax Code

January 23, 2010

Switzerland just told the United States that their tax policy was an affront to human rights and that their request to get information on Swiss accounts that may be linked to tax fraud in the US is denied. (link) This is a remarkable defeat for the United States, and a deafening wake up call that our tax code is not only unjust, but in violation of basic human rights.

It’s time to start drawing up a new federal tax code. Before we go much further, though, let’s ask by what authority do we tax in the first place. Keep in mind that governments are created by the people to protect their natural, God-given, unalienable rights. Governments should never impose on those rights, and instead focus only on securing them.

Simply put, government isn’t free, as in price. It costs money to have a government do anything at all. Where does that money come from? It has to come from somewhere.

The Articles of Confederation was an early experiment in a government without taxes. States were asked to pay their fair share into the national budget to defend all the states together. Obviously, some states either couldn’t raise the money or refused to do so. Once one state stopped paying, the other states did so as well. The lesson from this is taxes cannot be voluntary. Either they are just, and thus enforceable, or they are optional, and remain uncollected due to basic human nature.

One source of revenue is the printing of money. Government can have exclusive control over the money supply. As they print money, it affects everyone equally. That is, if there is too much money printed, everyone suffers. If there is too little printed, everyone suffers. If there is just the right amount, then everyone benefits.

How much money should be printed? Economic history and experience tells us that the money supply should grow at roughly the same rate as the economy grows, and perhaps a little faster to avoid the devastating effects of deflation. In other words, err on the side of inflation, but try to match the growth of the economy. There is a natural feedback mechanism with all of this. Print too much money and spend it, and prices become inflated. Print too little, and prices become deflated. It’s not too hard to tell where the money supply is actually going, and the people will feel the pain either way almost before it happens. The government would do well to listen to the people in this regard, printing money until they start complaining about inflation.

If our economy is worth, $14.2 trillion, and it is growing at a very healthy 5%, then that means the government can print about $710 billion dollars. This is nothing to sneeze at. If this were enough to run government, then we wouldn’t need taxes at all.

So, before we even talk about taxes, let’s first talk about cutting the government budget.

First, we must eliminate all non-essential services. The constitution is quite clear on what we can and can’t buy with the federal government. Things like welfare, Social Security, and Medicare are far beyond that scope. They should immediately be canceled.

Whatever services the government provide, it should try to get compensated for it. For instance, if we’re going to use the federal government to build a national highway system, then the federal government should charge tolls on people that actually use that system to recuperate the costs.

Some services cannot have their costs recuperated. For instance, we can’t charge people for the military and justice system. Or can we?

The justice system—yes. Whenever a case is heard before the courts, the people who bring the case should pay for the costs. If justice isn’t worth the costs, then justice shouldn’t be served. In other words, if it isn’t worth the $500 or whatever to get a judge to hear the case, and the several thousand dollars to bring in a jury, don’t do it.

We should charge criminals for their crimes, and have them repay their debt to society for executing justice on them. Obviously, to be fair, we should make the justice system as efficient as possible.

However, there is still some costs that can never be repaid. In these cases, after we have exhausted the free money we get from printing money to feed a growing economy, we have to turn to taxes.

What kinds of taxes are most fair? Most of the taxes we are familiar with today are not fair. They are designed to put all the tax burden on the richest in America, with the intention of taking the surplus and giving it to the poor. This reeks of Robin Hood, but backwards. Remember, Robin Hood took money from the government, which unjustly collected excessive taxes, and returned it to the people. If politicians really were following Robin Hood’s example, they would be plundering the federal treasury to return it to the taxpayers. Instead, politicans who advocate unjust taxes are playing the role of the Sheriff of Nottingham.

The income tax punishes those who earn more money. If anything, those who earn more money do so by benefiting society more than if they had earned less. As long as they are using legal means of persuasion and productivity, we should be thankful that we have high-earners among us.

The estate tax, or death tax, punishes those who are building wealth over the years. Let them determine what to do with the money they have rightfully earned.

Sales taxes punish trade. Trade is the engine whereby wealth is produced. It is a tax on the engine of wealth itself.

Property taxes punish property owners. This drives down the value of property, and drives people who have rightfully earned their property out of their own homes. No land is truly yours as long as the government collects “rent” in the form of property tax.

In short, all taxes are unfair to one group or another, punishing one group and giving another group a free ride.

As long as we treat all people as equal in our country, then we should tax them all equally. A marine fighting for his country fights equally for everyone within the country. He doesn’t fight more for the rich and less for the poor. He doesn’t fight more for the property owner or less for the renter. The police doesn’t secure the assets of the rich more than the poor. This concept of having the rich pay more because they have benefited from society more is absurd.

The tax that is most fair is the same tax whereby the Lord taxed his people Israel. When Moses needed money and supplies to build the tabernacle, the Lord commanded him to tax Israel to obtain what he needed. That tax was a per capita tax. Everyone was required to pay a certain amount of money, and no one could pay on their behalf. The rich and poor alike were required to pay this tax, the exact same amount.

This kind of tax seems unfair to the poor—if the government does anything more than protect the rights of the people. However, if the government is only involved in protecting rights, then it is perfectly just, because the poor have as many rights to be protected as the rich.

What’s great about the per capita tax is that there is a terrific incentive to keep it as low as possible. At the same time, it encourages everyone, everywhere, to earn as much money as they can. The more they earn, the less the tax hurts. Once you’ve earned enough to pay the tax, then you are free to do what you like with the rest of your money. The government has no interest in it, at all.

Perhaps we can allow people time to come up with the money. For instance, you only pay if you have it, but if not, then we’ll just keep a tab until you do. Or perhaps we can allow people to pay early. For instance, if I had the money, I could pay of 100 years of the tax today, and never have the government bother me for the rest of my life. Perhaps we can allow people to loan out money to pay the tax. If you don’t pay it back, then eventually, you’ll have to deal with your creditors, but at least you can divide one large sum into several smaller sums over time.

According to my research, $750 billion should be plenty to provide for a standing army and the federal court systems. If we eliminated all the taxes at the federal level, our economy should grow at well about 5% a year. That would give us, free, about $710 billion. The remaining $40 billion, divided among a population of 300 million, would be $133. That would be the per capita tax for every man, woman and child living in America. My family would owe $931. I have the choice of either paying taxes, or asking the government to print slightly more money, and end up paying more in inflation. Whichever way the people choose, we will end up paying that money.

Now, we have the problem of the national debt. There is a way to pay it off. Today, we allow banks to grow our money supply by printing money they do not have. A bank can loan out many times more money than it actually has. This means, the vast majority of money out there is money that the banks, not the federal government, created. We can gradually reduce the ratio of loans to savings in the banks, and then print money to compensate for the money that will evaporate. We can use that money to pay off the national debt, and still have plenty left over.

We also have the vast tracts of federal land in our parks, as well as office buildings throughout the United States and abroad. As we reduce the role of the federal government, the office buildings will be empty anyway, and we can sell them and use the money to pay off the debt. We can also sell the federal lands back to the people and use the money to pay off our debt.

With a little creative financing, which isn’t creative at all for all the businesses in the world, it will be rather easy to settle our debt and return our government to well within the bounds it should exist in in the first place. It is quite possible to run the federal government without any taxes at all.

Glacier Data Faked

January 23, 2010

It feels like beating a dead horse, but as long as the “green” meme is alive, I’ll beat away.

The glacier data in the IPCC report, the one that said glaciers are retreating, was faked. At least, according to the scientist who made the claim. (link)

What’s great is he said he did it to manipulate the world leaders to political action.

Yes, this man should be punished for his crimes. Faking data to manipulate people is called FRAUD. Let him think about what he has done after several years in prison.

If you, or anyone you know, still believes that the earth is getting warmer due to human action, please let them know that the whole thing was a scam, invented to deceiver them. If they continue to believe in it, be sure to tell them that they are being manipulated by evil scientists who think nothing of using FRAUD to achieve their political goals of totalitarian government over the people.