Thursday, July 24, 2008

Oops! I've Moved!

Please check out my new blog at gardenreader.wordpress.com.

Thanks! :-)

Thursday, June 26, 2008

Writing Effective Letters to Congressional Representatives

Compiled by Neil Rest

Use complete, proper addresses.The correct addressing for Representatives is:
The Honorable __________
United States House of Representatives
Washington, D.C. 20515

Dear Representative__________:
The correct addressing for Senators is:
The Honorable __________
United States Senate
Washington, D.C. 20510

Dear Senator __________:


Use your complete return address:
Ms. Jane Doe
123 Main Street
Springfield IN 98765-2468


If you know the Member or staff aide, say so at the start of your letter. That may alert the aide reading it to give it special attention.

If you live in the Member's district, say so early in your letter.

Be brief!
Congressional staffs are severely overworked.
Only one typewritten page and only one subject.

Be courteous.
Ask for the Member's views; do not demand support.
Be constructive, not negative. If a bill deals with a problem, but seems to be a wrong solution, propose constructive alternatives. Recognize that you might have to compromise.

Be yourself.
If you are copying a model letter, put it into your own words.

Other tips
Show an understanding of both the issue and the legislative process, so that way your message will be taken more seriously. For example, name the bill's sponsoring Member(s), and/or whether the bill is supported/opposed by the President. Site the reference number (use Thomas online to find that information). Avoid jargon and acronyms.

Timing
A letter sent months before an issue is considered is likely to be forgotten; one sent after Congress acts is a missed opportunity.
Most Congressional mail arrives on Monday, Tuesday or Friday.


Follow-up
Write back! React to the Member's response. This is a two-way communication.
Follow up your Congressman's response (or lack thereof) with another brief letter, regardless of the position they have taken. If your Member agrees with you, send a letter of thanks for his or her stand. If your Member disagrees with your position, reply with a brief letter quoting the section of his letter with which you take issue, restate your position, and supply individual additional evidence to support it.
Maintain an extended, informed dialog with your Congressman.


And don't forget . . .
Elected officials are people too, and they like to be told when they've done something right. Send a congratulatory note when they do something that merits approval.


Keep it up!
Don't get discouraged.

Tuesday, June 24, 2008

Why the US has really gone broke

The economic disaster that is military keynesianism
Why the US has really gone broke
Global confidence in the US economy has reached zero, as was proved by last month’s stock market meltdown. But there is an enormous anomaly in the US economy above and beyond the subprime mortgage crisis, the housing bubble and the prospect of recession: 60 years of misallocation of resources, and borrowings, to the establishment and maintenance of a military-industrial complex as the basis of the nation’s economic life

By Chalmers Johnson

The military adventurers in the Bush administration have much in common with the corporate leaders of the defunct energy company Enron. Both groups thought that they were the “smartest guys in the room” — the title of Alex Gibney’s prize-winning film on what went wrong at Enron. The neoconservatives in the White House and the Pentagon outsmarted themselves. They failed even to address the problem of how to finance their schemes of imperialist wars and global domination.

As a result, going into 2008, the United States finds itself in the anomalous position of being unable to pay for its own elevated living standards or its wasteful, overly large military establishment. Its government no longer even attempts to reduce the ruinous expenses of maintaining huge standing armies, replacing the equipment that seven years of wars have destroyed or worn out, or preparing for a war in outer space against unknown adversaries. Instead, the Bush administration puts off these costs for future generations to pay or repudiate. This fiscal irresponsibility has been disguised through many manipulative financial schemes (causing poorer countries to lend us unprecedented sums of money), but the time of reckoning is fast approaching.

There are three broad aspects to the US debt crisis. First, in the current fiscal year (2008) we are spending insane amounts of money on “defence” projects that bear no relation to the national security of the US. We are also keeping the income tax burdens on the richest segment of the population at strikingly low levels.

Second, we continue to believe that we can compensate for the accelerating erosion of our base and our loss of jobs to foreign countries through massive military expenditures — “military Keynesianism” (which I discuss in detail in my book Nemesis: The Last Days of the American Republic). By that, I mean the mistaken belief that public policies focused on frequent wars, huge expenditures on weapons and munitions, and large standing armies can indefinitely sustain a wealthy capitalist economy. The opposite is actually true.

Third, in our devotion to militarism (despite our limited resources), we are failing to invest in our social infrastructure and other requirements for the long-term health of the US. These are what economists call opportunity costs, things not done because we spent our money on something else. Our public education system has deteriorated alarmingly. We have failed to provide health care to all our citizens and neglected our responsibilities as the world’s number one polluter. Most important, we have lost our competitiveness as a manufacturer for civilian needs, an infinitely more efficient use of scarce resources than arms manufacturing.

Fiscal disaster

It is virtually impossible to overstate the profligacy of what our government spends on the military. The Department of Defense’s planned expenditures for the fiscal year 2008 are larger than all other nations’ military budgets combined. The supplementary budget to pay for the current wars in Iraq and Afghanistan, not part of the official defence budget, is itself larger than the combined military budgets of Russia and China. Defence-related spending for fiscal 2008 will exceed $1 trillion for the first time in history. The US has become the largest single seller of arms and munitions to other nations on Earth. Leaving out President Bush’s two on-going wars, defence spending has doubled since the mid-1990s. The defence budget for fiscal 2008 is the largest since the second world war.

Before we try to break down and analyse this gargantuan sum, there is one important caveat. Figures on defence spending are notoriously unreliable. The numbers released by the Congressional Reference Service and the Congressional Budget Office do not agree with each other. Robert Higgs, senior fellow for political economy at the Independent Institute, says: “A well-founded rule of thumb is to take the Pentagon’s (always well publicised) basic budget total and double it” (1). Even a cursory reading of newspaper articles about the Department of Defense will turn up major differences in statistics about its expenses. Some 30-40% of the defence budget is “black”,” meaning that these sections contain hidden expenditures for classified projects. There is no possible way to know what they include or whether their total amounts are accurate.

There are many reasons for this budgetary sleight-of-hand — including a desire for secrecy on the part of the president, the secretary of defence, and the military-industrial complex — but the chief one is that members of Congress, who profit enormously from defence jobs and pork-barrel projects in their districts, have a political interest in supporting the Department of Defense. In 1996, in an attempt to bring accounting standards within the executive branch closer to those of the civilian economy, Congress passed the Federal Financial Management Improvement Act. It required all federal agencies to hire outside auditors to review their books and release the results to the public. Neither the Department of Defense, nor the Department of Homeland Security, has ever complied. Congress has complained, but not penalised either department for ignoring the law. All numbers released by the Pentagon should be regarded as suspect.

In discussing the fiscal 2008 defence budget, as released on 7 February 2007, I have been guided by two experienced and reliable analysts: William D Hartung of the New America Foundation’s Arms and Security Initiative (2) and Fred Kaplan, defence correspondent for Slate.org (3). They agree that the Department of Defense requested $481.4bn for salaries, operations (except in Iraq and Afghanistan), and equipment. They also agree on a figure of $141.7bn for the “supplemental” budget to fight the global war on terrorism — that is, the two on-going wars that the general public may think are actually covered by the basic Pentagon budget. The Department of Defense also asked for an extra $93.4bn to pay for hitherto unmentioned war costs in the remainder of 2007 and, most creatively, an additional “allowance” (a new term in defence budget documents) of $50bn to be charged to fiscal year 2009. This makes a total spending request by the Department of Defense of $766.5bn.

But there is much more. In an attempt to disguise the true size of the US military empire, the government has long hidden major military-related expenditures in departments other than Defense. For example, $23.4bn for the Department of Energy goes towards developing and maintaining nuclear warheads; and $25.3bn in the Department of State budget is spent on foreign military assistance (primarily for Israel, Saudi Arabia, Bahrain, Kuwait, Oman, Qatar, the United Arab Republic, Egypt and Pakistan). Another $1.03bn outside the official Department of Defense budget is now needed for recruitment and re-enlistment incentives for the overstretched US military, up from a mere $174m in 2003, when the war in Iraq began. The Department of Veterans Affairs currently gets at least $75.7bn, 50% of it for the long-term care of the most seriously injured among the 28,870 soldiers so far wounded in Iraq and 1,708 in Afghanistan. The amount is universally derided as inadequate. Another $46.4bn goes to the Department of Homeland Security.

Missing from this compilation is $1.9bn to the Department of Justice for the paramilitary activities of the FBI; $38.5bn to the Department of the Treasury for the Military Retirement Fund; $7.6bn for the military-related activities of the National Aeronautics and Space Administration; and well over $200bn in interest for past debt-financed defence outlays. This brings US spending for its military establishment during the current fiscal year, conservatively calculated, to at least $1.1 trillion.

Military Keynesianism

Such expenditures are not only morally obscene, they are fiscally unsustainable. Many neo-conservatives and poorly informed patriotic Americans believe that, even though our defence budget is huge, we can afford it because we are the richest country on Earth. That statement is no longer true. The world’s richest political entity, according to the CIA’s World Factbook, is the European Union. The EU’s 2006 GDP was estimated to be slightly larger than that of the US. Moreover, China’s 2006 GDP was only slightly smaller than that of the US, and Japan was the world’s fourth richest nation.

A more telling comparison that reveals just how much worse we’re doing can be found among the current accounts of various nations. The current account measures the net trade surplus or deficit of a country plus cross-border payments of interest, royalties, dividends, capital gains, foreign aid, and other income. In order for Japan to manufacture anything, it must import all required raw materials. Even after this incredible expense is met, it still has an $88bn per year trade surplus with the US and enjoys the world’s second highest current account balance (China is number one). The US is number 163 — last on the list, worse than countries such as Australia and the UK that also have large trade deficits. Its 2006 current account deficit was $811.5bn; second worst was Spain at $106.4bn. This is unsustainable.

It’s not just that our tastes for foreign goods, including imported oil, vastly exceed our ability to pay for them. We are financing them through massive borrowing. On 7 November 2007, the US Treasury announced that the national debt had breached _$9 trillion for the first time. This was just five weeks after Congress raised the “debt ceiling” to $9.815 trillion. If you begin in 1789, at the moment the constitution became the supreme law of the land, the debt accumulated by the federal government did not top $1 trillion until 1981. When George Bush became president in January 2001, it stood at approximately $5.7 trillion. Since then, it has increased by 45%. This huge debt can be largely explained by our defence expenditures.

The top spenders

The world’s top 10 military spenders and the approximate amounts each currently budgets for its military establishment are:

Rank Country Military budget
1. United States (FY 2008 budget) $623bn
2. China (2004) $65bn
3. Russia $50bn
4. France (2005) $45bn
5. United Kingdom $42.8bn
6. Japan (2007) $41.75bn
7. Germany (2003) $35.1bn
8. Italy (2003) $28.2bn
9. South Korea (2003) $21.1bn
10. India (2005 est.) $19bn
World total military expenditures (2004 est) $1,100bn
World total (minus the US) $500bn

Our excessive military expenditures did not occur over just a few short years or simply because of the Bush administration’s policies. They have been going on for a very long time in accordance with a superficially plausible ideology, and have now become so entrenched in our democratic political system that they are starting to wreak havoc. This is military Keynesianism — the determination to maintain a permanent war economy and to treat military output as an ordinary economic product, even though it makes no contribution to either production or consumption.

This ideology goes back to the first years of the cold war. During the late 1940s, the US was haunted by economic anxieties. The great depression of the 1930s had been overcome only by the war production boom of the second world war. With peace and demobilisation, there was a pervasive fear that the depression would return. During 1949, alarmed by the Soviet Union’s detonation of an atomic bomb, the looming Communist victory in the Chinese civil war, a domestic recession, and the lowering of the Iron Curtain around the USSR’s European satellites, the US sought to draft basic strategy for the emerging cold war. The result was the militaristic National Security Council Report 68 (NSC-68) drafted under the supervision of Paul Nitze, then head of the Policy Planning Staff in the State Department. Dated 14 April 1950 and signed by President Harry S Truman on 30 September 1950, it laid out the basic public economic policies that the US pursues to the present day.

In its conclusions, NSC-68 asserted: “One of the most significant lessons of our World War II experience was that the American economy, when it operates at a level approaching full efficiency, can provide enormous resources for purposes other than civilian consumption while simultaneously providing a high standard of living” (4).

With this understanding, US strategists began to build up a massive munitions industry, both to counter the military might of the Soviet Union (which they consistently overstated) and also to maintain full employment, as well as ward off a possible return of the depression. The result was that, under Pentagon leadership, entire new industries were created to manufacture large aircraft, nuclear-powered submarines, nuclear warheads, intercontinental ballistic missiles, and surveillance and communications satellites. This led to what President Eisenhower warned against in his farewell address of 6 February 1961: “The conjunction of an immense military establishment and a large arms industry is new in the American experience” — the military-industrial complex.

By 1990 the value of the weapons, equipment and factories devoted to the Department of Defense was 83% of the value of all plants and equipment in US manufacturing. From 1947 to 1990, the combined US military budgets amounted to $8.7 trillion. Even though the Soviet Union no longer exists, US reliance on military Keynesianism has, if anything, ratcheted up, thanks to the massive vested interests that have become entrenched around the military establishment. Over time, a commitment to both guns and butter has proven an unstable configuration. Military industries crowd out the civilian economy and lead to severe economic weaknesses. Devotion to military Keynesianism is a form of slow economic suicide.

Higher spending, fewer jobs

On 1 May 2007, the Center for Economic and Policy Research of Washington, DC, released a study prepared by the economic and political forecasting company Global Insight on the long-term economic impact of increased military spending. Guided by economist Dean Baker, this research showed that, after an initial demand stimulus, by about the sixth year the effect of increased military spending turns negative. The US economy has had to cope with growing defence spending for more than 60 years. Baker found that, after 10 years of higher defence spending, there would be 464,000 fewer jobs than in a scenario that involved lower defence spending.

Baker concluded: “It is often believed that wars and military spending increases are good for the economy. In fact, most economic models show that military spending diverts resources from productive uses, such as consumption and investment, and ultimately slows economic growth and reduces employment” (5).

These are only some of the many deleterious effects of military Keynesianism.

It was believed that the US could afford both a massive military establishment and a high standard of living, and that it needed both to maintain full employment. But it did not work out that way. By the 1960s it was becoming apparent that turning over the nation’s largest manufacturing enterprises to the Department of Defense and producing goods without any investment or consumption value was starting to crowd out civilian economic activities. The historian Thomas E Woods Jr observes that, during the 1950s and 1960s, between one-third and two-thirds of all US research talent was siphoned off into the military sector (6). It is, of course, impossible to know what innovations never appeared as a result of this diversion of resources and brainpower into the service of the military, but it was during the 1960s that we first began to notice Japan was outpacing us in the design and quality of a range of consumer goods, including household electronics and automobiles.

Can we reverse the trend?

Nuclear weapons furnish a striking illustration of these anomalies. Between the 1940s and 1996, the US spent at least $5.8 trillion on the development, testing and construction of nuclear bombs. By 1967, the peak year of its nuclear stockpile, the US possessed some 32,500 deliverable atomic and hydrogen bombs, none of which, thankfully, was ever used. They perfectly illustrate the Keynesian principle that the government can provide make-work jobs to keep people employed. Nuclear weapons were not just America’s secret weapon, but also its secret economic weapon. As of 2006, we still had 9,960 of them. There is today no sane use for them, while the trillions spent on them could have been used to solve the problems of social security and health care, quality education and access to higher education for all, not to speak of the retention of highly-skilled jobs within the economy.

The pioneer in analysing what has been lost as a result of military Keynesianism was the late Seymour Melman (1917-2004), a professor of industrial engineering and operations research at Columbia University. His 1970 book, Pentagon Capitalism: The Political Economy of War, was a prescient analysis of the unintended consequences of the US preoccupation with its armed forces and their weaponry since the onset of the cold war. Melman wrote: “From 1946 to 1969, the United States government spent over $1,000bn on the military, more than half of this under the Kennedy and Johnson administrations — the period during which the [Pentagon-dominated] state management was established as a formal institution. This sum of staggering size (try to visualize a billion of something) does not express the cost of the military establishment to the nation as a whole. The true cost is measured by what has been foregone, by the accumulated deterioration in many facets of life, by the inability to alleviate human wretchedness of long duration.”

In an important exegesis on Melman’s relevance to the current American economic situation, Thomas Woods writes: “According to the US Department of Defense, during the four decades from 1947 through 1987 it used (in 1982 dollars) $7.62 trillion in capital resources. In 1985, the Department of Commerce estimated the value of the nation’s plant and equipment, and infrastructure, at just over _$7.29 trillion… The amount spent over that period could have doubled the American capital stock or modernized and replaced its existing stock” (7).

The fact that we did not modernise or replace our capital assets is one of the main reasons why, by the turn of the 21st century, our manufacturing base had all but evaporated. Machine tools, an industry on which Melman was an authority, are a particularly important symptom. In November 1968, a five-year inventory disclosed “that 64% of the metalworking machine tools used in US industry were 10 years old or older. The age of this industrial equipment (drills, lathes, etc.) marks the United States’ machine tool stock as the oldest among all major industrial nations, and it marks the continuation of a deterioration process that began with the end of the second world war. This deterioration at the base of the industrial system certifies to the continuous debilitating and depleting effect that the military use of capital and research and development talent has had on American industry.”

Nothing has been done since 1968 to reverse these trends and it shows today in our massive imports of equipment — from medical machines like _proton accelerators for radiological therapy (made primarily in Belgium, Germany, and Japan) to cars and trucks.

Our short tenure as the world’s lone superpower has come to an end. As Harvard economics professor Benjamin Friedman has written: “Again and again it has always been the world’s leading lending country that has been the premier country in terms of political influence, diplomatic influence and cultural influence. It’s no accident that we took over the role from the British at the same time that we took over the job of being the world’s leading lending country. Today we are no longer the world’s leading lending country. In fact we are now the world’s biggest debtor country, and we are continuing to wield influence on the basis of military prowess alone” (8).

Some of the damage can never be rectified. There are, however, some steps that the US urgently needs to take. These include reversing Bush’s 2001 and 2003 tax cuts for the wealthy, beginning to liquidate our global empire of over 800 military bases, cutting from the defence budget all projects that bear no relationship to national security and ceasing to use the defence budget as a Keynesian jobs programme.

If we do these things we have a chance of squeaking by. If we don’t, we face probable national insolvency and a long depression.

Saturday, May 31, 2008

The $53 Trillion Asteroid

By Glenn Beck, CNN (Glenn Beck is on Headline News nightly at 7 and 9 p.m. ET.)

NEW YORK (CNN) -- Let's say a giant asteroid was headed toward Earth right now and experts say it has a good chance of ending civilization as we know it. Let's also say that we've known about this asteroid for years but even as it gets closer and closer our leaders do nothing.

"Don't worry," they tell us, "The next administration will figure something out."

With the future of our country at stake, would Americans really sit back and tolerate that kind of inaction? Of course not -- we'd be sharpening our pitchforks and demanding answers.

Well there may not be a space asteroid heading toward us, but there is an economic one -- and the threat to our future is just as severe.

You might think that I'm talking about the recession (sorry: potential recession) or credit crisis, but I'm thinking bigger. Much, much bigger.

Let me give you three numbers that will put this economic asteroid into perspective: $200 billion, $14.1 trillion, and $53 trillion.

Ø$200 billion is the approximate total amount of write-downs announced so far as a result of the current credit crisis.

Ø$14.1 trillion is the size of the entire economy.

ØAnd $53 trillion is (drum roll please) the approximate size of this country's bill for the Social Security and Medicare promises we've made.

While no one will ever mistake me for Alan Greenspan, it seems to me that the third number is quite a bit larger than the other two. It also seems very few people care.

According to the latest Social Security and Medicare Trustees report (and I use that term loosely since it has the word "trust" in it) released earlier this week, the economic asteroid will first make impact in the year 2019 when Medicaid becomes insolvent.

Only an immediate 122 percent increase in Medicare taxes and a 26 percent increase in Social Security taxes can prevent (or delay) its impact.

Realizing that Americans have become pretty much numb to these kinds of ridiculous sounding proposals, U.S. Treasury Secretary Henry Paulson tried to up the ante this week. "Without change," he said, "rising costs will drive government spending to unprecedented levels, consume nearly all projected federal revenues, and threaten America's future prosperity."

Now, I know we're all worried about important sounding things that none of us understand, like CDO's, SIV's, and Credit Default Swaps, but our Treasury Secretary just said? "Rising costs will ... consume nearly all projected federal revenues ..."

Translation: Every single tax dollar that is sent to Washington will be used to pay for just these two programs.

That means no money is left for anything else. Nothing! No Department of Defense or Homeland Security, no Department of Energy, no Department of Justice, no Environmental Protection Agency, no Internal Revenue Service. Actually, knowing our government, they'd probably keep the IRS going.

Of course, none of this is exactly breaking news. Our leaders have known about this rapidly approaching asteroid for years now and they've done nothing but debate it. At the same time, I'm a realist. I understand that this stuff is "the third rail of politics," but our leaders' negligence on this issue is damn near criminal. No, correction, it is criminal.

But part of the problem with this issue is that numbers followed by 12 zeroes aren't relatable to the average American. Try this on for size.

A million seconds is 12 days. A billion seconds is 32 years. A trillion seconds is 32,000 years. And 53-trillion seconds? 1.7 million years.

In an article that will appear in an upcoming issue of my magazine Fusion (www.glennbeck.com) former Comptroller General of the United States David Walker tries a different tactic. He writes that our unfunded promises translate into "an IOU of around $455,000 per American household."

(In my new book How to Prosper During the Coming Bad Years in the 21st Century, I have devoted Chapter 2 to David Walker’s forecast of 52-trillion in unfunded liabilities. HJR)

Wow. Does the size of our debt hit home now?

The America that I know doesn't sit around waiting for someone to rescue it from disaster. Besides, who do we expect to swoop in and save the day? Congress? The president? Please -- they're not only the ones who put the asteroid into space; they've also been making it bigger with irresponsible spending on everything from prescription drugs to billions in rebate checks and bailouts.

Bruce Willis and Tommy Lee Jones? They're more likely to be on Social Security than to save it.

And that leaves only us: We the People. Like every other crisis we face, we must save ourselves. But how?

Be honest, no matter what side of the political aisle you're on, it's obvious that our financial deficit is dwarfed only by the deficit of trust in our leaders.

I'm willing to sacrifice, but not when I believe that our leaders will do nothing but make the asteroid even larger.

Bush Claims More Powers Than King George III

MASSACHUSETTS SCHOOL OF LAW AT ANDOVER

Bush Claims More Powers Than King George III,
Constitutional Scholar David Adler Contends

The Bush administration has arrogated powers to itself that the British people even refused to grant King George III at the time of the Revolutionary War, an eminent political scientist says.

“No executive in the history of the Anglo-American world since the Civil War in England in the 17th century has laid claim to such broad power,” said David Adler, a prolific author of articles on the U.S. Constitution. “George Bush has exceeded the claims of Oliver Cromwell who anointed himself Lord Protector of England.”

Adler, a professor of political science at Idaho State University at Pocatello, is the author of “The Constitution and the Termination of Treaties”(Taylor & Francis), among other books, and some 100 scholarly articles in his field. Adler made his comments comparing the powers of President Bush and King George III at a conference on “Presidential Power in America” at the Massachusetts School of Law, Andover, April 26th.

Adler said, Bush has “claimed the authority to suspend the Geneva Convention, to terminate treaties, to seize American citizens from the streets to detain them indefinitely without benefit of legal counseling, without benefit of judicial review. He has ordered a domestic surveillance program which violates the statutory law of the United States as well as the Fourth Amendment.”

Adler said the authors of the U.S. Constitution wrote that the president “shall take care to faithfully execute the laws of the land” because “the king of England possessed a suspending power” to set aside laws with which he disagreed, “the very same kind of power that the Bush Administration has claimed.”

Former Attorney General Alberto Gonzalez, Adler said, repeatedly referred to the President’s “override” authority, “which effectively meant that the Bush Administration was claiming on behalf of President Bush a power that the English people themselves had rejected by the time of the framing of the Constitution.”

Adler said the Framers sought an “Administrator in Chief” that would execute the will of Congress and the Framers understood that the President, as Commander-in-Chief “was subordinate to Congress.” The very C-in-C concept, the historian said, derived from the British, who conferred it on one of their battlefield commanders in a war on Scotland in 1639 and it “did not carry with it the power over war and peace” or “authority to conduct foreign policy or to formulate foreign policy.”

That the C-in-C was subordinate to the will of Congress was demonstrated in the Revolutionary War when George Washington, granted that title by Congress, “was ordered punctually to respond to instructions and directions by Congress and the dutiful Washington did that,” Adler said.

Adler said that John Yoo, formerly of the Office of Legal Counsel, wrote in 2003 that the President as C-in-C could authorize the CIA or other intelligence agencies to resort to torture to extract information from suspects based on his authority. However, Adler said, the U.S. Supreme Court in 1804 in Little vs. Barreme affirmed the President is duty-bound to obey statutory instructions and reaffirmed opinion two years later in United States vs. Smith.

“In these last eight years,” Adler said, “we have seen presidential powers soar beyond the confines of the Constitution. We have understood that his presidency bears no resemblance to the Office created by the Framers… This is the time for us to demand a return to the constitutional presidency. If we don’t, we will have only ourselves to blame as we go marching into the next war as we witness even greater claims of presidential power.”

The Massachusetts School of Law is a non-profit educational institution purposefully dedicated to providing an affordable, quality legal education to minorities, immigrants, and students from economic backgrounds that would not otherwise be able to afford to attend law school and enter the legal profession.

On Conscription

Say No to Conscription

Mr. PAUL. Mr. Speaker, I hope my colleagues who believe that the current war on terrorism justifies violating the liberty of millions of young men by reinstating a military draft will consider the eloquent argument against conscription in the attached speech by Daniel Webster. Then-representative Webster delivered his remarks on the floor of the House in opposition to a proposal to institute a draft during the War of 1812. Webster's speech remains one of the best statements of the Constitutional and moral case against conscription.

Despite the threat posed to the very existence of the young republic by the invading British Empire, Congress ultimately rejected the proposal to institute a draft. If the new nation of America could defeat what was then the most powerful military empire in the world without a draft, there is no reason why we cannot address our current military needs with a voluntary military.

Webster was among the first of a long line of prominent Americans, including former President Ronald Reagan and Federal Reserve Chairman Alan Greenspan, to recognize that a draft violates the fundamental principles of liberty this country was founded upon.

In order to reaffirm support for individual liberty and an effective military, I have introduced H. Con. Res. 368, which expresses the sense of Congress against reinstating a military draft. I urge my colleagues to read Daniel Webster's explanation of why the draft is incompatible with liberty government and cosponsor H. Con. Res. 368.

ON CONSCRIPTION (By Daniel Webster)

During America's first great war, waged against Great Britain, the Madison Administration tried to introduce a conscription bill into Congress. This bill called forth one of Daniel Webster's most eloquent efforts, in a powerful opposition to conscription. The speech was delivered in the House of Representatives on December 9, 1814; the following is a condensation:

This bill indeed is less undisguised in its object, and less direct in its means, than some of the measures proposed. It is an attempt to exercise the power of forcing the free men of this country into the ranks of an army, for the general purposes of war, under color of a military service. It is a distinct system, introduced for new purposes, and not connected with any power, which the Constitution has conferred on Congress.

But, Sir, there is another consideration. The services of the men to be raised under this act are not limited to those cases in which alone this Government is entitled to the aid of the militia of the States. These cases are particularly stated in the Constitution--``to repel invasion, suppress insurrection, or execute the laws.''

The question is nothing less, than whether the most essential rights of personal liberty shall be surrendered, and despotism embraced in its worst form. When the present generation of men shall be swept away, and that this Government ever existed shall be a matter of history only, I desire that it may then be known, that you have not proceeded in your course unadmonished and unforewarned. Let it then be known, that there were those, who would have stopped you, in the career of your measures, and held you back, as by the skirts of your garments, from the precipice, over which you are plunging, and drawing after you the Government of your Country.

Conscription is chosen as the most promising instrument, both of overcoming reluctance to the Service, and of subduing the difficulties which arise from the deficiencies of the Exchequer. The administration asserts the right to fill the ranks of the regular army by compulsion. It contends that it may now take one out of every twenty-five men, and any part or the whole of the rest, whenever its occasions require. Persons thus taken by force, and put into an army, may be compelled to serve there, during the war, or for life. They may be put on any service, at home or abroad, for defense or for invasion, according to the will and pleasure of Government. This power does not grow out of any invasion of the country, or even out of a state of war. It belongs to Government at all times, in peace as well as in war, and is to be exercised under all circumstances, according to its mere discretion. This, Sir, is the amount of the principle contended for by the Secretary of War (James Monroe).

Is this, Sir, consistent with the character of a free Government? Is this civil liberty? Is this the real character of our Constitution? No, Sir, indeed it is not. The Constitution is libeled, foully libeled. The people of this country have not established for themselves such a fabric of despotism. They have not purchased at a vast expense of their own treasure and their own blood a Magna Carta to be slaves. Where is it written in the Constitution, in what article or section is it contained, that you may take children from their parents, and parents from their children, and compel them to fight the battles of any war, in which the folly or the wickedness of Government may engage it? Under what concealment has this power lain hidden, which now for the first time comes forth, with a tremendous and baleful aspect, to trample down and destroy the dearest rights of personal liberty? Sir, I almost disdain to go to quotations and references to prove that such an abominable doctrine has no foundation in the Constitution of the country. It is enough to know that that instrument was intended as the basis of a free Government, and that the power contended for is incompatible with any notion of personal liberty. An attempt to maintain this doctrine upon the provisions of the Constitution is an exercise of perverse ingenuity to extract slavery from the substance of a free Government. It is an attempt to show, by proof and argument, that we ourselves are subjects of despotism, and that we have a right to chains and bondage, firmly secured to us and our children, by the provisions of our Government.

The supporters of the measures before us act on the principle that it is their task to raise arbitrary powers, by construction, out of a plain written charter of National Liberty. It is their pleasing duty to free us of the delusion, which we have fondly cherished, that we are the subjects of a mild, free and limited Government, and to demonstrate by a regular chain of premises and conclusions, that Government possesses over us a power more tyrannical, more arbitrary, more dangerous, more allied to blood and murder, more full of every form of mischief, more productive of every sort and degree of misery, than has been exercised by any civilized Government in modern times.

But it is said, that it might happen that any army would not be raised by voluntary enlistment, in which case the power to raise armies would be granted in vain, unless they might be raised by compulsion. If this reasoning could prove any thing, it would equally show, that whenever the legitimate powers of the Constitution should be so badly administered as to cease to answer the great ends intended by them, such new powers may be assumed or usurped, as any existing administration may deem expedient. This is a result of his own reasoning, to which the Secretary does not profess to go. But it is a true result. For if it is to be assumed, that all powers were granted, which might by possibility become necessary, and that Government itself is the judge of this possible necessity, then the powers of Government are precisely what it chooses they should be.

The tyranny of Arbitrary Government consists as much in its means as in its end; and it would be a ridiculous and absurd constitution which should be less cautious to guard against abuses in the one case than in the other. All the means and instruments which a free Government exercises, as well as the ends and objects which it pursues, are to partake of its own essential character, and to be conformed to its genuine spirit. A free Government with arbitrary means to administer it is a contradiction; a free Government without adequate provision for personal security is an absurdity; a free Government, with an uncontrolled power of military conscription, is a solecism, at once the most ridiculous and abominable that ever entered into the head of man.

Into the paradise of domestic life you enter, not indeed by temptations and sorceries, but by open force and violence.

Nor is it, Sir, for the defense of his own house and home, that he who is the subject of military draft is to perform the task allotted to him. You will put him upon a service equally foreign to his interests and abhorrent to his feelings. With his aid you are to push your purposes of conquest. The battles which he is to fight are the battles of invasion; battles which he detests perhaps and abhors, less from the danger and the death that gather over them, and the blood with which they drench the plain, than from the principles in which they have their origin. If, Sir, in this strife he fall--if, while ready to obey every rightful command of Government, he is forced from home against right, not to contend for the defense of his country, but to prosecute a miserable and detestable project of invasion, and in that strife he fall, 'tis murder. It may stalk above the cognizance of human law, but in the sight of Heaven it is murder; and though millions of years may roll away, while his ashes and yours lie mingled together in the earth, the day will yet come, when his spirit and the spirits of his children must be met at the bar of omnipotent justice. May God, in his compassion, shield me from any participation in the enormity of this guilt.

A military force cannot be raised, in this manner, but by the means of a military force. If administration has found that it can not form an army without conscription, it will find, if it venture on these experiments, that it can not enforce conscription without an army. The Government was not constituted for such purposes. Framed in the spirit of liberty, and in the love of peace, it has no powers which render it able to enforce such laws. The attempt, if we rashly make it, will fail; and having already thrown away our peace, we may thereby throw away our Government.

I express these sentiments here, Sir, because I shall express them to my constituents. Both they and myself live under a Constitution which teaches us, that ``the doctrine of non-resistance against arbitrary power and oppression, is absurd, slavish, and destructive of the good and happiness of mankind.'' With the same earnestness with which I now exhort you to forbear from these measures, I shall exhort them to exercise their unquestionable right of providing for the security of their own liberties.

Congressman Ron Paul
U.S. House of Representatives
May 9, 2002

Monday, May 26, 2008

Quotes on Foreign Relations

I'm currently reading a compilation of essays by Ezra T. Benson, former Secretary of Agriculture in the Eisenhower administration, and also former president of The Church of Jesus Christ of Latter-Day Saints. Among the essays, one entitled United States Foreign Policy includes many quotes from former presidents and other leaders that I don't want to lose or forget.

The Virginia Bill of Rights (Article 15, drafted by George Mason and adopted by the Virginia Convention on June 12, 1776):
No free government, or the blessings of liberty, can be preserved to any people, but by a firm adherence to justice, moderation, temperance, frugality and virtue, and by frequent recurrence to fundamental principles.

Senator Robert A. Taft:
We cannot clean up the mess in Washington, balance the budget, reduce taxes, check creeping Socialism, tell what is muscle or fat in our sprawling rearmament programs, purge subversives from our State Department, unless we come to grips with our foreign policy, upon which all other policies depend.

George Washington:
I have always given it as my decided opinion that no nation has a right to intermeddle in the internal concerns of another; that every one had a right to form and adopt whatever government they liked best to live under themselves; and that, if this country could, consistently with its engagements, maintain a strict neutrality and thereby preserve peace, it was bound to do so by motives of policy, interest, and every other consideration.

Thomas Jefferson [in his First Inaugural Address]:
Equal and exact justice to all men, of whatever state or persuasion, religious or political; peace, commerce, and honest friendship, with all nations -- entangling alliances with none....

James Madison:
Of all the enemies to public liberty war is, perhaps, the most to be dreaded, because it compromises and develops the germ of every other. War is the parent of armies; from these proceed debts and taxes; and armies, and debts, and taxes are the known instruments for brining the many under the domination of the few. In war, too, the discretionary power of the Executive is extended; its influence in dealing out offices, honors, and emoluments is multiplied; and all the means of seducing the minds, are added to those of subduing the force, of the people. The same malignant aspect in republicanism may be traced in the inequality of fortunes, and the opportunites of fraud, growing out of a state of war, and in the degeneracy of manners and morals, engendered by both. No national could preserve its freedom in the midst of continual warfare.

James Madison:
The management of foreign relations appears to be the most susceptible of abuse of all the trusts committed to a Goverment because they can be concealed or disclosed, or disclosed in such parts and at such times as will best suit particular views; and because the body of the people are less capable of judging, and are more under the influence of prejudices, on that branch of their afairs, than of any other. Perhaps it is a universal truth that the loss of liberty at home is to be charged to provisions against danger, real or pretended, from abroad.

Herbert Hoover:
We must realize the vitality of the great spiritual force which we call nationalism. The fuzzy-minded intellectuals have sought to brand nationalism as a sin against mankind. They seem to think that infamy is attached to the word "nationalist". But that force cannot be obscured by denunciation of its greed or selfishness -- as it sometimes is. The spirit of nationalism springs from the deepest of human emotions. It rises from the yearning of men to be free of foreign domination, to govern themselves. It springs from a thousand rills of race, of history, of sacrifice and pride in national achievement.

Senator Robert A Taft. [in his book, Foreign Policy for Americans]:
No one can think intelligently on the many complicated problems of American foreign policy unless he decides first what he considers the real purpose and object of that policy.... There has been no consistent purpose in our foreign policy for a good many years past.... Fundamentally, I believe the ultimate purpose of our foreign policy must be to protect the liberty of the people of the United States.

J. Reuben Clark [on the United Nations Charter]:
There seems no reason to doubt that such real approval as the Charter has among the people is based upon the belief that if the Charter is put into effect, wars will end.... The Charter will not certainly end war. Some will ask -- why not? In the first placce, there is no provision in ther Charter itself that contemplates ending war. It is true the charter provides for force to bring peace, but such use of force is itself war.... It is true the Charter is built to prepare for war, not to promote peace.... The Charter is a war document, not a peace document.

Not only does the Charter Organization not prevent future wars, but it make it practically certain that we will have future wars, and as to such wars it takes from us the power to declare them, to choose the side on which we shall fight, to determine what forces and military equipment we shall use in the war, and to control and command our sons who do the fighting.


General Thomas S. Power [with regard to maintaining a defensive force of sufficient magnitude to deter aggressors]:
Deterrence is more than bombs and missles and tanks and armies. Deterrence is a sound economy and prosperous industry. Deterrence is scientific progress and good schools. Deterrence is effective civil defence and the maintenance of laws and order. Detterence is the practice of religion and respect for the rights and convictions of others. Deterrence is a high standard of morals and wholesome family life. Deterrence is honesty in public office and freedom of the press. Deterrence is all these things and many more, for only a nation that is healthy and strong in every respect has the power and will to deter the forces from within and without that threatens its survival.

Senator Robert Taft:
I do not believe it is a selfish goal for us to insist that the over-riding purpose of all American foreign policy should be the maintenance of liberty and the peace of the people of the United States, so that they may achieve that intellectual and material improvement which is their genius and in which they can set an example for all peoples. By that example we can do an even greater service to mankind than we can by billions of material assistance -- and more than we can ever do by war.

Tuesday, May 6, 2008

Allow Intelligence! A Movie Review by James Perloff

Traditionally minded Americans don’t often cheer Hollywood products. We gladly report an exception: Expelled: No Intelligence Allowed (rated PG).

As many NEW AMERICAN readers know, Charles Darwin’s theory of evolution transformed Western culture. The Bible taught that life forms are creations of God, with man the centerpiece, made in God’s image. Darwin introduced a new doctrine: random interactions of chemicals had created life, and man was just an animal, evolved from lower life forms through survival of the fittest. Sold to the public as scientific fact, “Social Darwinism,” with its view of man as beast, helped spawn unprecedented cruelties under communism and Naziism.

Now, however, science has evolution on the retreat. For example:

  • A single cell, which Darwin thought “simple,” is encoded with information that would fill thousands of books, and is far too complex to have formed by chance.
  • In his book Darwin’s Black Box, Lehigh University biochemist Michael Behe demonstrates that certain biochemical systems, such as blood clotting and the immune system, are “irreducibly complex” — that is, they consist of interdependent parts that cannot function in lesser stages, and thus cannot have evolved step-by-step.
  • In Not by Chance, Dr. Lee Spetner, who taught information theory at Johns Hopkins University, documents that random mutations — evolution’s alleged building blocks — cause losses of genetic information, not gains.
  • In Evolution: A Theory in Crisis, molecular biologist Michael Denton shows that, on a cellular level, there is no evidence for the proclaimed evolutionary sequence “fish to amphibian to reptile to mammal.”

As the new data has emerged, evolutionists have fought to prevent classrooms from openly discussing the weaknesses in Darwin’s theory. Freedom of speech has been suppressed in academia, and educators persecuted for daring to address intelligent design (ID). It was this trend that prompted the documentary Expelled.

According to the film’s website, the project “began with an observation made by [co-producer Walt] Ruloff, a successful computer software entrepreneur who comes from a high-tech world in which innovation is constant and eagerly sought. In stark contrast, he noticed, the scientific and academic communities were deeply resistant to innovation, in this case innovation that might revise Darwin’s theory that random mutation and natural selection drive all variation in life forms.”

The film’s host and narrator is Ben Stein, economist, law professor, speech writer for Presidents Nixon and Ford, and author of over 20 books, but probably best known as a comedy actor, with his trademark monotone voice. He is also a pro-life creationist, making him a maverick in Hollywood.

Liberty and Justice — for All?

“Scientists are supposed to be allowed to follow the evidence wherever it may lead, no matter what the implications are,” says Stein. “Freedom of inquiry has been greatly compromised, and this is not only anti-science, it’s anti-American.” The film underscores America’s tradition of personal freedom with visits to landmarks such as the Jefferson Memorial and Washington Monument, and contrasts these with images of the Berlin Wall, symbol of tyranny. That wall is gone, but another, we learn, has been erected in American universities.

Stein interviews double Ph.D. biologist Richard Sternberg, a research fellow at the Smithsonian Institution. In 2004, as editor of Proceedings of the Biological Society of Washington, Sternberg allowed publication of a peer-reviewed article suggesting there is evidence for intelligent design in nature. This resulted in a vicious, smear-tainted campaign of abuse against Dr. Sternberg, driven by certain Smithsonian officials and by the National Center for Science Education (self-described as a “clearinghouse for information and advice to keep evolution in the science classroom and ‘scientific creationism’ out”). The attack on Sternberg was so outrageous that it led to a congressional investigation and an ensuing report, Intolerance and the Politicization of Science at the Smithsonian.

Among others, Stein also visits:

  • astrophysicist Guillermo Gonzalez, who, despite publishing over 60 articles in peer-reviewed science journals and being credited with helping discover new planets, was refused tenure at Iowa State University after he advocated teaching intelligent design;
  • molecular biologist Caroline Crocker, compelled to leave George Mason University after including several slides about intelligent design in one of her lectures;
  • NASA-honored engineering professor Robert J. Marks II, forced by Baylor to remove an ID-friendly website from the university’s servers.

But Stein doesn’t just meet intelligent design’s defenders, he also takes on some of its most adamant critics, including Eugenie Scott, executive director of the National Center for Science Education; Michael Shermer, founder of the Skeptics Society; Cornell professor William Provine; and atheist blogger P.Z. Myers. Ultimately he travels to England to confront Richard Dawkins, author of The God Delusion and probably the most vocal critic of ID and creation.

Producer Ruloff warns: “People will be stunned to actually find out what elitist scientists proclaim, which is that a large majority of Americans are simpletons who believe in a fairy tale.”

During his interview, Dawkins dismisses religion as “primitive superstition,” and those who reject evolution for it “ignorant or insane.” Logically questioned by Stein, Dawkins admits that life could have come from “a higher intelligence” that “seeded” it on this planet — i.e., he could accept aliens as our creator, but not God. But this begs for an answer to the question: how did life get started on the aliens’ planet?

Ideas Have Consequences

Creation-evolution is a vital issue. It is far more than a science discussion. Most Americans believe, as Thomas Jefferson said, that “men are endowed by their Creator with certain unalienable Rights.” If, as Darwinism says, there was no Creator, then there is no basis for rights, no moral absolutes, nor any God to whom we are accountable for our actions.

Small wonder, then, that Darwinism has always found a comfortable home in totalitarian states. Stein visits the former mental institution at Hadamar, Germany, where over 14,000 mentally ill were once executed by the Nazis. As Stein notes, Charles Darwin advocated eugenics, writing that “the weak members of civilized societies propagate their kind. No one who has attended to the breeding of domestic animals will doubt that this must be highly injurious to the race of man.... Excepting in the case of man himself, hardly anyone is so ignorant as to allow his worst animals to breed.” Stein explores the link between Darwin and Nazi eugenics, interviewing California State University professor Richard Weikart, author of From Darwin to Hitler. And he notes that eugenics was espoused in America by Planned Parenthood founder Margaret Sanger.

The film also exposes media bias. Intelligent-design advocates tell Stein how the politically correct press has distorted their positions. Journalist Pamela Winnick recounts the abuse she received after trying to report on the evolution-design controversy in a balanced manner. A discomforting moment for Americans comes in the film when Polish scientist Maciej Giertych tells Stein that there is less censorship on this issue in Poland today than in the United States.

A Model of Communication

Expelled strikes a blow for free speech, and is drawing much-needed attention to the creation-evolution battle. It has been effectively marketed by Motive Entertainment, which also took on The Passion of The Christ and The Chronicles of Narnia. Motive’s appealing website for the film, www.expelledthemovie.com, along with grass-roots promotion from advocates of creation and intelligent design, has spurred a groundswell of demand.

Atheists have been bitterly denouncing the film. Atheist P.Z. Myers declared: “It’s going to appeal strongly to the religious, the paranoid, the conspiracy theorists, and the ignorant — which means they’re going to draw in about 90% of the American market.” Such attacks have unintentionally served as further promotion. On April 18, Expelled opened in 1,052 theaters, breaking the record for documentaries (Michael Moore’s Fahrenheit 9/11 opened in 868).

Expelled is not your grandfather’s documentary. A fast pace, rocking soundtrack, and Stein’s deadpan humor all defy that word’s connotations. The interviews never drag — they are interspersed with clips from old films to underscore points being made. There are two superb animation sequences, one demonstrating the cell’s complexity, the other a satirical “casino of life” in which hundreds of slot machines must simultaneously hit jackpots in order for life to commence by chance. This movie will leave you entertained and informed (we know plenty these days that do neither).

Near the film’s end, shots of the Berlin Wall coming down remind us that the walls of academic censorship must fall also. Stein’s final words exhort audience members to get involved.

Expelled: No Intelligence Allowed is a model of communication that all can learn something from.

Wednesday, April 30, 2008

Principles of Freedom 101

The 28 Principles outlined here are from the book, The 5000 Year Leap: A Miracle that Changed the World, by W. Cleon Skousen.

Principle 1 - The only reliable basis for sound government and just human relations is Natural Law.

Principle 2 - A free people cannot survive under a Republican Constitution unless they remain virtuous and morally strong.

Principle 3 - The most promising method of securing a virtuous and morally stable people is to elect virtuous leaders.

Principle 4 - Without religion the government of a free people cannot be maintained

Principle 5 - All things were created by God, therefore upon Him all mankind are equally dependent, and to Him they are equally responsible.

Principle 6 - All men are created equal.

Principle 7 - The proper role of government is to protect equal rights, not to provide equal things.

Principle 8 - Me are endowed by their Creator with certain unalienable rights

Principle 9 - To protect man's rights, God has revealed certain principles of Divine Law

Principle 10 - The God-given right to govern is vested in the sovereign authority of the whole people.

Principle 11 - The majority of the people may alter or abolish a government which has ecome tyrannical.

Principle 12 - The United States of America shall be a Republic.

Principle 13 - A constitution should be structured to permanently protect the people from the human frailties of their rulers.

Principle 14 - Life and liberty are secure only so long as the right to property is secure.

Principle 15 - The highest level of prosperity occurs when there is a free-market economy and a minimum of government regulations.

Principle 16 - The government should be separated into three branches - legislative, executive, and judicial.

Principle 17 - A system of checks and balances should be adopted to prevent the abuse of power.

Principle 18 - The unalienable rights of the people are most likely to be preserved if the principles of government are set forth in a written constitution.

Principle 19 - Only limited and carefully defined powers should be delegated to government, all others being retained in the people.

Principle 20 - Efficiency and dispatch require government to operate according to the will of the majority, but constitutional provisions must be made to protect the rights of the minority.

Principle 21 - Strong local self-government is the keystone to preserving human freedom.

Principle 22 - A free people should be governed by law and not by the whims of men.

Principle 23 - A free society cannot survive as a republic without a broad program of general education.

Principle 24 - A free people will not survive unless they stay strong.

Principle 25 - Peace, commerce, and honest friendship with all nations - entangling alliances with none.

Principle 26 - The core unit which determines the strength of any society is the family; therefore, the government should foster and protect its integrity.

Principle 27 - The burden of debt is as destructive to freedom as subjugation by conquest.

Principle 28 - The United States has a manifest destiny to be an example and a blessing to the entire human race.

Monday, April 14, 2008

Fiat Paper Money

by Rep. Ron Paul, MD (R-TX)
September 12, 2003

In an article entitled "Gold and Economic Freedom," Federal Reserve Chairman Alan Greenspan wrote that "The excess credit which the Fed pumped into the economy spilled over into the stock market- triggering a fantastic speculative boom...The speculative imbalances had become overwhelming and unmanageable by the Fed... In the absence of the gold standard, there is no way to protect savings from confiscation through inflation." The irony is that Mr. Greenspan's words, written in 1966 to describe the era leading up to the Great Depression, could easily have been written in 2003 to describe the consequences of his own Fed policies during the 1990s.

Mr. Greenspan once understood that a fiat money system represents nothing more than a sinister and evil form of hidden taxation. When the government can print money at will, it's morally identical to the counterfeiter who illegally prints currency. Fiat money polices especially hurt savers and those on fixed incomes, who find the value of their dollars steadily eroded by the Fed's printing presses.

We need to understand why a fiat system is so popular with economists, the business community, bankers, and government officials. One explanation is that a fiat monetary system allows power and influence to fall into the hands of those who control the creation of new money, and to those who get to use the money or credit early in its circulation. The insidious and eventual cost falls on unidentified victims, who are usually oblivious to the cause of their plight.

Another explanation is that it's human nature to seek the comforts of wealth with the least amount of effort. This desire is quite positive when it inspires efficient work and innovation in a capitalist society. Productivity is improved and the standard of living goes up for everyone. But this human trait of seeking wealth and comfort with the least amount of effort is often abused. It leads some to believe that by certain monetary manipulations, wealth can be increased out of thin air.

Most Americans are oblivious to the entire issue of monetary policy. We all deal with the consequences of our fiat money system, however. Every dollar created dilutes the value of existing dollars in circulation. Those individuals who worked hard, paid their taxes, and saved some money for a rainy day are hit the hardest. Their dollars depreciate in value while earning interest that is kept artificially low by the Federal Reserve easy-credit policy. The poor and those dependent on fixed incomes can't keep up with the rising cost of living.

We do hear some minor criticism directed toward the Federal Reserve, but the validity of the fiat system is never challenged. Both political parties want the Fed to print more money, either to support social spending or military adventurism. Politicians want the printing presses to run faster and create more credit, so that the economy will be healed like magic – or so they believe.

Fiat dollars allow us to live beyond our means, but only for so long. History shows that when the destruction of monetary value becomes rampant, nearly everyone suffers and the economic and political structure becomes unstable. Spendthrift politicians may love a system that generates more and more money for their special interest projects, but the rest of us have good reason to be concerned about our monetary system and the future value of our dollars.


Tuesday, April 8, 2008

Twelve Steps to Financial Disaster

The following is digested from an article by Martin Wolf on February 19. Wolf is associate editor and chief economics commentator at the Financial Times www.ft.com.

Nouriel Roubini of New York University's Stern School of Business's 12 steps to financial disaster:

Step one
is the worst housing recession in US history. House prices will, he says, fall by 20 to 30 percent, which would wipe out between $4 trillion and $6 trillion in household wealth. Ten million households will end up with negative equity and so with a huge incentive to put the house keys in the post and depart for greener fields.

Step two
would be further losses, beyond the $250bn-$300bn now estimated, for subprime mortgages. About 60 percent of all mortgage origination between 2005 and 2007 had "reckless or toxic features," argues Prof Roubini.


Step three
would be big losses on unsecured consumer debt: credit cards, auto loans, student loans and so forth.

Step four
would be the downgrading of the monoline insurers, which do not deserve the AAA rating on which their business depends. A further $150bn write-down of asset-backed securities would then ensue.

Step five
would be the meltdown of the commercial property market. Step six would be bankruptcy of a large regional or national bank.

Step seven
would be big losses on reckless leveraged buy-outs.

Step eight
would be a wave of corporate defaults. Some insurers might go bankrupt.

Step nine
would be a meltdown in the "shadow financial system,” dealing with the distress of hedge funds, special investment vehicles.

Step 10
would be a further collapse in stock prices.

Step 11
would be a drying-up of liquidity in a range of financial markets, including interbank and money markets.

Step 12
would be "a vicious circle of losses, capital reduction, credit contraction, forced liquidation and fire sales of assets at or below fundamental prices.”

Heston on Winning the Culture War

The following is a speech NRA President Charlton Heston gave to the Harvard Law School Forum on February 16, 1999.

I remember my son when he was five, explaining to his kindergarten class what his father did for a living. "My Daddy," he said, "pretends to be people."

There have been quite a few of them. Prophets from the Old and New Testaments, a couple of Christian saints, generals of various nationalities and different centuries, several kings, three American presidents, a French cardinal and two geniuses, including Michelangelo. If you want the ceiling repainted I'll do my best. There always seems to be a lot of different fellows up here. I'm never sure which one of them gets to talk. Right now, I guess I'm the guy.

As I pondered our visit tonight, it struck me: If my Creator gave me the gift to connect you with the hearts and minds of those great men, then I want to use that same gift now to re-connect you with your own sense of liberty...your own freedom of thought...your own compass for what is right.

Dedicating the memorial at a Gettysburg, Abraham Lincoln said of America, "We are now engaged in a great Civil War, testing whether this nation or any nation so conceived and so dedicated can long endure."

Those words are true again. I believe that we are again engaged in a great civil war, a cultural war that's about to hijack your birthright to think and say what resides in your heart. I fear you no longer trust the pulsing lifeblood of liberty inside you...the stuff that made this country rise from wilderness into the miracle that it is.

Let me back up. About a year ago I became president of the National Rifle Association, which protects the right to keep and bear arms. I ran for office, I was elected, and now I serve...I serve as a moving target for the media who've called me everything from "ridiculous" and "duped" to a "brain-injured senile, crazy old man." I know...I'm pretty old...but I sure Lord ain't senile.

As I have stood in the crosshairs of those who target Second Amendment freedoms, I've realized that firearms are not the only issue. No, it's much, much bigger than that.

I've come to understand that a cultural war is raging across our land, in which, with Orwellian fervor, certain acceptable thoughts and speech are mandated.

For example, I marched for civil rights with Dr. King in 1963 - long before Hollywood found it fashionable. But when I told an audience last year that white pride is just as valid as black pride or red pride or anyone else's pride, they called me a racist.

I've worked with brilliantly talented homosexuals all my life. But when I told an audience that gay rights should extend no further than your rights or my rights, I was called a homophobe.

I served in World War II against the Axis powers. But during a speech, when I drew an analogy between singling out innocent Jews and singling out innocent gun owners, I was called an anti-Semite.

Everyone I know knows I would never raise a closed fist against my country. But when I asked an audience to oppose this cultural persecution, I was compared to Timothy McVeigh.

From Time magazine to friends and colleagues, they're essentially saying, "Chuck, how dare you speak your mind. You are using language not authorized for public consumption!"

But I am not afraid. If Americans believed in political correctness, we'd still be King George's boys - subjects bound to the British crown.

In his book, "The End of Sanity," Martin Gross writes that "blatantly irrational behavior is rapidly being established as the norm in almost every area of human endeavor. There seem to be new customs, new rules, new anti-intellectual theories regularly foisted on us from every direction.

Underneath, the nation is roiling. Americans know something without a name is undermining the nation, turning the mind mushy when it comes to separating truth from falsehood and right from wrong. And they don't like it."

Let me read a few examples.

• At Antioch College in Ohio, young men seeking intimacy with a coed must get verbal permission at each step of the process from kissing to petting to final copulation...all clearly spelled out in a printed college directive.

• In New Jersey, despite the death of several patients nationwide who had been infected by dentists who had concealed their AIDS, the state commissioner announced that health providers who are HIV-positive need not...need not...tell their patients that they are infected.

• At William and Mary, students tried to change the name of the school team "The Tribe" because it was supposedly insulting to local Indians, only to learn that authentic Virginia chiefs truly like the name.

• In San Francisco, city fathers passed an ordinance protecting the rights of transvestites to cross-dress on the job, and for transsexuals to have separate toilet facilities while undergoing sex change surgery.

• In New York City, kids who don't speak a word of Spanish have been placed in bilingual classes to learn their three R's in Spanish solely because their last names sound Hispanic.

• At the University of Pennsylvania, in a state where thousands died at Gettysburg opposing slavery, the president of that college officially set up segregated dormitory space for black students.

Yeah, I know...that's out of bounds now. Dr. King said "Negroes." Jimmy Baldwin and most of us on the March said "black." But it's a no-no now.

For me, hyphenated identities are awkward...particularly "Native-American." I'm a Native American, for God's sake. I also happen to be a blood-initiated brother of the Miniconjou Sioux. On my wife's side, my grandson is a thirteenth generation native American...with a capital letter on "American."

Finally, just last month...David Howard, head of the Washington, D.C. Office of Public Advocate, used the word "niggardly" while talking to colleagues about budgetary matters. Of course, "niggardly" means stingy or scanty. But within days Howard was forced to publicly apologize and resign.

As columnist Tony Snow wrote: "David Howard got fired because some people in public employ were morons who (a) didn't know the meaning of niggardly, (b) didn't know how to use a dictionary to discover the meaning, and (c) actually demanded that he apologize for their ignorance."

What does all of this mean? It means that telling us what to think has evolved into telling us what to say, so telling us what to do can't be far behind.

Before you claim to be a champion of free thought, tell me: Why did political correctness originate on America's campuses? And why do you continue to tolerate it? Why do you, who're supposed to debate ideas, surrender to their suppression?

Let's be honest. Who here thinks your professors can say what they really believe?

It scares me to death and should scare you too, that the superstition of political correctness rules the halls of reason.

You are the best and the brightest. You, here in the fertile cradle of American academia, here in the castle of learning on the Charles River, you are the cream. But I submit that you, and your counterparts across the land, are the most socially conformed and politically silenced generation since Concord Bridge. And as long as you validate that...and abide it...you are - by your grandfathers' standards - cowards.

Here's another example. Right now at more than one major university, Second Amendment scholars and researchers are being told to shut up about their findings or they'll lose their jobs. Why? Because their research findings would undermine big-city mayors...pending lawsuits that seek to extort hundreds of millions of dollars from firearm manufacturers.

I don't care what you think about guns. But if you are not shocked at that, I am shocked at you. Who will guard the raw material of unfettered ideas, if not you? Who will defend the core value of academia, if you supposed soldiers of free thought and expression lay down your arms and plead, "Don't shoot me."

If you talk about race, it does not make you a racist. If you see distinctions between the genders, it does not make you a sexist. If you think critically about a denomination, it does not make you anti-religion. If you accept but don't celebrate homosexuality, it does not make you a homophobe.

Don't let America's universities continue to serve as incubators for this rampant epidemic of new McCarthyism.

But what can you do? How can anyone prevail against such pervasive social subjugation?

The answer's been here all along.

I learned it 36 years ago, on the steps of the Lincoln Memorial in Washington, D.C., standing with Dr. Martin Luther King and two hundred thousand people.

You simply...disobey.

Peaceably, yes. Respectfully, of course. Nonviolently, absolutely.

But when told how to think or what to say or how to behave, we don't. We disobey social protocol that stifles and stigmatizes personal freedom.

I learned the awesome power of disobedience from Dr. King...who learned it from Gandhi, and Thoreau, and Jesus, and every other great man who led those in the right against those with the might.

Disobedience is in our DNA. We feel innate kinship with that disobedient spirit that tossed tea in to Boston Harbor, that sent Thoreau to jail, that refused to sit in the back of the bus, that protested a war in Viet Nam.

In that same spirit, I am asking you to disavow cultural correctness with massive disobedience of rogue authority, social directives and onerous law that weaken personal freedom.

But be careful...it hurts.

Disobedience demands that you put yourself at risk. Dr. King stood on lots of balconies.

You must be willing to be humiliated...to endure the modern-day equivalent of the police dogs at Montgomery and the water cannons at Selma.

You must be willing to experience discomfort. I'm not complaining, but my own decades of social activism have taken their toll on me. Let me tell you a story.

A few years back I heard about a rapper named Ice-T who was selling a CD called "Cop Killer" celebrating ambushing and murdering police officers. It was being marketed by none other than Time/Warner, the biggest entertainment conglomerate in the world.

Police across the country were outraged. Rightfully so - at least one had been murdered. But Time/warner was stonewalling because the CD was a cash cow for them, and the media were tiptoeing around it because the rapper was black.

I heard Time/Warner had a stockholders meeting scheduled in Beverly Hills. I owned some shares at the time and decided to attend.

What I did there was against the advice of my family and colleagues. I asked for the floor. To a hushed room of a thousand average American stockholders, I simply read the full lyrics of "Cop Killer" - every vicious, vulgar, instructional word.

"I GOT MY 12 GAUGE SAWED OFF

I GOT MY HEADLIGHTS TURNED OFF

I'M ABOUT TO BUST SOME SHOTS OFF

I'M ABOUT TO DUST SOME COPS OFF..."

It got worse, a lot worse. I won't read the rest of it to you. But trust me, the room was a sea of shocked, frozen, blanched faces. The Time/Warner executives squirmed in their chairs and stared at their shoes. They hated me for that.

Then I delivered another volley of sick lyric brimming with racist filth, where Ice-T fantasizes about sodomizing two 12-year old nieces of Al and Tipper Gore.

"SHE PUSHED HER BUTT AGAINST MY..."

Well, I won't do to you here what I did to them. Let's just say I left the room in echoing silence. When I read the lyrics to the waiting press corps, one of them said "We can't print that." "I know," I replied, "but Time/Warner's selling it."

Two months later, Time/Warner terminated Ice-T's contract. I'll never be offered another film by Warner, or get a good review from Time magazine. But disobedience means you must be willing to act, not just talk.

When a mugger sues his elderly victim for defending herself...jam the switchboard of the district attorney's office.

When your university is pressured to lower standards until 80% of the students graduate with honors...choke the halls of the board of regents.

When an 8-year-old boy pecks a girl's cheek on the playground and gets hauled into court for sexual harassment...march on that school and block its doorways.

When someone you elected is seduced by political power and betrays you...petition them, oust them, banish them.

When Time magazine's cover portrays millennium nuts as deranged, crazy Christians holding a cross as it did last month...boycott their magazine and the products it advertises.

So that this nation may long endure, I urge you to follow in the hallowed footsteps of the great disobediences of history that freed exiles, founded religions, defeated tyrants, and yes, in the hands of an aroused rabble in arms and a few great men, by God's grace, built this country.

If Dr. King were here, I think he would agree.

Thank you.