Obama still doesn’t get it – Government can’t create economic growth, only prevent it.
Can I make a small request? Before we go throwing more good money (American Jobs Act) after bad (American Recovery and Reinvestment Act of 2009) can we review some basic economics?
There is no single topic of greater importance to the cause of liberty and peace than the nature and control of money. When free market participants are no longer able to choose their medium of exchange, a critical part of the free market dies. The resulting seeds of a centrally planned economy slowly grow and suffocate the power of choice.
Congressman and presidential candidate Ron Paul recently introduced legislation calling for the federal government to cancel the $1.6 trillion debt held by the Federal Reserve. Such a move creates legal challenges, one of which would be that the Fed would openly acknowledge that it is a private entity and that fedgov has no authority confiscate its assets. (Fedgov had no “authority” to call in gold in 1933, but legal tests to that stood up.)
If you’ve paid any attention to the inflation vs. deflation debate you’ve noticed that it is fairly convoluted. I’ve read the arguments in great detail and have come to the conclusion that it’s mostly a problem of semantics. Strictly speaking, deflation is a decrease in the supply of money and credit. As bad loans are written off, the supply of credit, which represents the lion’s share of the money supply, decreases.
The history I was taught in school never held much interest for me. It seemed like a random progression of names, events, and dates attached to motivations that made little, if any sense. It wasn’t until I began my self study of economics, and particularly the nature of money, that a whole new world was presented to me. This was a world whose history was anything but random. In fact, almost every event throughout the history of Western civilization could be traced along a single thread of motivation: the control of money and resources.
Federal Reserve holdings of US treasuries now exceed China’s, with the Fed owning $1,108 billion and China owning $896 billion, according to data released last Thursday. Japan holds another $877 billion. By June, according to one analyst, the Fed will have accumulated $1,600 billion in treasury issues, a number likely to match China’s and Japan’s combined holdings. Just how did the Fed come to own all these securities?
Incredibly, Fed Head Ben Bernanke says that the Fed is not printing money, that the inflationary impact of QE2 will be negligible. Bernanke further suggests that the Fed’s ability to shut down price inflation, if it raises its ugly head, is abolute. This man’s hubrus knows no end.
President Obama just announced another stimulus program, the previous spending having fallen far short of turning the economy around. Polls show that many Americans are opposed to deficit spending in efforts to get the economy moving again. After all, it was the Fed’s loose-money policies that caused the housing bubble. While Establishment economists blame
The sad history of paper money is that it is printed until it is worthless. This is to say that whenever paper currencies are de-linked from gold or silver (made no longer redeemable in gold or silver), politicians print those currencies until they are worthless. The most infamous destruction of a paper currency occurred in