Author Archives: Bruce MacIsaac

About Bruce MacIsaac

Bruce MacIsaac graduated from Computer Systems Institute with an AS Degree in Systems Analysis. He spent twenty years in the computer field, most recently as the Internet Administrator for Westco Internet. He is a published poet, professional truck driver, and blogger. His interests include politics, travel, Commercial Motor Carrier regulations, spirituality and aviation.

The Case for Liberty and an Article V Convention – Part III

Parts I and II of this US Constitution - We The Peopleseries briefly described what an Article V Convention is, and some compelling reasons for the States to call for one. This missive will propose ideas for numerous amendments to our Constitution, the purpose of which is to restore the principles embodied in the document when it was first ratified.

Founding Principles

The United States of America was intended to be a land where the principles of liberty and justice for all were paramount. What is meant by liberty? Merriam-Webster defines liberty as:

1 : the quality or state of being free:
a : the power to do as one pleases
b : freedom from physical restraint
c : freedom from arbitrary or despotic control
d : the positive enjoyment of various social, political, or economic rights and privileges

The right of ownership of one’s labor and property is implied in the concept of liberty, as is the concept of personal responsibility. When labor and property are confiscated at the point of a gun, whether by burglar, tax collector, or slave owner, liberty ceases to exist. When it is possible for one group of people to take by force, the fruits of the labor of another simply because the first group says they need it, or an intermediary says so on their behalf, we have returned to indentured servitude. It matters not how well-meaning the intermediary may be. Neither should the intermediary be able to use the threat of confiscation of property or labor to manipulate behavior, yet the current mishmash of federal tax code does just that. Neither Congress nor the Administration will ever voluntarily give up the power to control via the tax code. Yet ultimately, it is the power of the purse that allows the people to control the government, or the government to control the people.

Taxation and Spending

Ultimate control is why the US Constitution gave the power of the purse to “The Peoples House”, the House of Representatives, rather than the house of the States’ Representatives, the Senate.

An additional protection against a tyrannical government was in the area of taxation. Prior to ratification of the 16th Amendment in 1913, any tax on income had to be of the flat-tax variety, apportioned equally among the states, thereby preventing redistribution and manipulation.

Ideally Federal revenues would be voluntary, giving the people the direct power of the purse. Voluntary contribution, however, would lend itself to abuse by allowing the wealthy to manipulate the government. The closest the country could hope to get to an all voluntary tax would be a tax on consumption, or something akin to the “Fair Tax”.

Consider the following Amendments;

  • Repeal the 16th Amendment.
  • Congress shall not levy any tax on income or property, regardless how derived, nor shall congress impose any tax on estates greater than 5%. Congress may levy a tax on sales, the total of which shall not exceed 15% of the national economy. Such sales tax must be uniform across all products and services except that food necessary for living be exempt. Also the first $500.00 (indexed for inflation) of any single purchase of clothing be exempt, the first $250,000.00 (indexed for inflation) of the purchase of a primary residence or the first $1,500.00 (indexed for inflation) of monthly rent on a primary residence shall be exempt.
  • An amendment requiring a balanced budget. The text of S. J. Resolution 10 from the 112th Congress would do as it requires super majorities in both houses to raise taxes or borrow money and limits expenditures to 18% of GDP.

 

Representation

The original intent for Congress was that one house, The House of Representatives, should represent the people while the other house, The Senate, should be the voice of the State Legislatures. That system worked well for 100 years. It was thought, correctly as it turns out, that for the States to retain their power and sovereignty, their legislatures had to be represented directly in the Federal Government. If not, the Federal System would encroach on the States’ rights and eventually overwhelm them. To safeguard the States, the Constitution required Senators to be elected by the legislatures in each of the several States, thereby dividing power between the State Houses and the people.

To insure the people were properly represented, each member of the House of Representatives was to represent no more than 30,000 voters. By limiting the number of voters a congress person could represent, it was thought that people would have adequate access to their representatives and would be better represented. Today one congress person represents roughly 700,000 people. Is it any wonder they spend all their time chasing campaign contributions?

The campaign season has also extended to the point where it is continual. Politicians who have been in office for decades have built up massive war chests of campaign cash and have entrenched themselves with constituent service to the point where they are very difficult to defeat. Our politicians were meant to be public servants for a limited period of time, and then return to private life.

Consider these possibilities to correct some of the problems;

  • Repeal the 17th Amendment.
  • Limit the terms of Congressional Representatives to four terms for House members and two terms for Senators. Additionally, House members who become Senators, may serve only one term in the Senate.
  • Extend truth in advertising, libel, and slander laws to campaign advertising and speeches outside of congressional sessions.
  • Re-apportion congressional districts and extend the House of Representatives to 870 seats.
  • Except as expressly provided for in the Constitution, Congress shall pass no law which exempts members of Congress or any of their staff from any law.

 
Executive Branch Overreach

Increasingly, the administrative departments of the Executive Branch have been putting in place rules and regulations that have the force of law. The bureaucrats making the rules were not elected nor have they been accountable to anyone, other than the President.

Congress has abdicated its responsibility to legislate, happily passing on this function to the aforementioned agencies. Often these rules have adversely affected large segments of the population, yet the people have been powerless to stop them.

Congress has also abdicated its responsibility with regard to military action. The Constitution grants Congress the power to declare war, not the President. Even the War Powers Act, which many believe to be unconstitutional, requires the President to seek advise and consent from Congress within sixty days of beginning hostilities, yet two years later bombs are continuing to drop in Yemen. The President has yet to seek approval from Congress for that action.

Possible amendments to return power to its rightful place might be;

  • No rule or regulation issued by any Federal Agency and having the force of law shall take effect unless it has been approved by both houses of Congress by up or down vote.
  • Congress shall have the power to repeal any rule or regulation put in place by the Administrative branch by up or down vote in both houses.
  • Excepting the event of a direct attack on the United States or its territories, the President shall not initiate any military action without a Declaration of War, or Letters of Marque and Reprisal issued by Congress. In the event of direct attack, the President must seek and receive such declaration or cease hostilities within ninety days. No funds from the US Treasury shall be used to conduct military operations past ninety days if no declaration or letters exist.

 
Obama Care and the Commerce Clause

The original intent of the Commerce Clause in the Constitution was to make commerce regular between the States, that is, to prevent one State from charging tariffs or duties on the goods of another. Yet this clause has been used repeatedly to justify whittling away at States’ rights. The most glaring case has been The Affordable Care Act. Justice Roberts had to, in effect, re-write the law; calling a penalty a tax to avoid the abuse.

Here is a suggested amendment to end Obama Care;

  • Congress shall pass no law requiring any citizen or entity to purchase any commercial product or service, and any such law in existence at the time of this amendment’s ratification shall become null and void within six months after ratification.

The Supreme Court

Often the Court has taken it upon itself to ignore the original intent of the framers of the Constitution when making its decisions, thereby creating new law where none exists. This has almost always been done by a five to four vote. Matters of such weight should require substantial unanimity among the members of the court.

Therefore consider these amendments;

  • The Supreme court shall consist of twelve members, appointed by the President and ratified by the Senate.
  • Supreme Court members cannot be removed from office except by impeachment for high crimes and misdemeanors.
  • Court members terms shall be limited to fifteen years.
  • All constitutional decisions by the Supreme Court shall require at least a two-thirds majority.

 
States Rights

Prior to the Civil War, the United States was a collection of sovereign States who agreed under the Constitution to do together what could more easily be done collectively. The Constitution was clear in Article I Section 8 what the powers of the Federal Government were to be. All else was left to the States. This intent was emphasized in the 10th Amendment.

Through federal mandates on everything from light bulbs to toilets to school curriculum and lunch requirements, from healthcare to voting to immigration enforcement, the US government has been usurping State sovereignty and dictating policy.

Consider these amendments to return power to the States;

  • The Federal Government must enforce immigration and naturalization law. If the Federal Government fails or refuses to enforce said law, the States have the right to enforce the law in lieu of the Federal Government, and to pass the necessary State laws to carry out said enforcement.
  • The States may require such reasonable proof of citizenship as they deem necessary in order to vote.
  • Any State has the right to peaceably secede from the union upon passage of a resolution by three-fourths vote of the State legislatures, signature of the respective Governor, and ratification by three-fifths vote of the people of the State.
  • No funds shall be used from the Federal Treasury to mandate State behavior as a condition for receipt of said funds.

 
Religious Freedom

Freedom of religion was never meant to be freedom from religion. In fact the First Amendment specifically states that “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof ;”. Yet the court system has prohibited the free exercise of religion in many circumstances and locations, and has all but established Atheism as the National Religion.

The following changes to the First Amendment are offered for consideration;

  • Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof, regardless of venue, and including the display of religious symbols in the public square and on Federal Property; or abridging the freedom of speech including politically incorrect speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

 
Conclusion

The forgoing suggestions are offered for the reader’s consideration. What is important are the ideas expressed. There may well be other amendments worthy of inclusion, and the wording and inclusion of those offered in this article are certainly open for discussion and debate.

The purpose of an Article V Convention, after all, is to debate ideas in order to mold our founding document into a basis of government that works for all of the States in the Union, and their citizens. To do nothing in the current climate is to continue down the road to Totalitarianism at warp speed.

The next installment in this series will discuss the necessity of great diligence in choosing the delegates to an Article V Convention and suggest some possible conferees.

The Case for Liberty and an Article V Convention – Part II

Constitution650It should be obvious to anyone by now, that with few exceptions our representatives in the Senate and House of Representatives have little interest in good stewardship of the nation as a whole, nor do they exhibit any interest in limiting their own power or that of the other two branches of Federal Government. Quite the contrary, they seem only interested in what will benefit them, the maintenance and growth of their power, the power of their respective parties, and the growth of their personal balance sheets and those of their friends’. For these reasons it is incumbent on the State Houses to exercise their Article V responsibility to reign in the excesses exhibited in Washington.

The Declaration of Independence contains a list of grievances against the King of England. They will not be reproduced here yet the list of governmental overreach in these United States is similar, large, and growing exponentially.

Beyond overreach, by its self-centered approach to public policy the federal government continues at an increasing pace to put our nation in peril by its failure to pursue sound agricultural, economic, energy, and foreign policies.

Its Justice Department has given up all interest in equal application of the law, and has instead sought to reward its friends and punish its enemies. Likewise this administration has used all of its agencies in the same manner and Congress has been unable or unwilling to stop them.

Richard M. Nixon was impeached in 1974 for Obstruction of Justice, Abuse of Power, and Contempt of Congress. He subsequently resigned his office. In June of 2012 President Obama’s Attorney General was held in Contempt of Congress for failure to produce documents related to the supply of weapons to criminals in Mexico in an operation called Fast & Furious. President Obama covered up this failure to produce documents with a dubious claim of Executive Privilege. To this date, no documents have been produced and Congress has failed to take further action. This is the same Justice Department that has declined to prosecute top Obama bundler Jon Corzine for bilking of almost a billion dollars of clients money and has declared big bankers “too big to jail”.

At the same time the Department of Justice through the Fish and Wildlife Service raided Gibson Guitar (whose CEO is a Republican donor) and confiscated raw materials without ever formally charging them with a crime. Eventually the DOJ extorted $350,000.00 from the company, still without any due process of law under the Constitution or return of raw materials.

The recent IRS targeting case is another example in a long, long list of political bullying by Administration agencies. Russell George, the IRS’ own inspector general, went to DOJ with clear evidence of illegal access and dissemination of taxpayer information, and Justice has refused to prosecute or even investigate the case.

Egregious as the abuse of power is, there are much larger problems facing the citizens of the United States. One of the most dangerous is the practice of laundering trillions and trillions of made up dollars through the US banking system. For the moment it has not sparked hyper-inflation, primarily because the banks borrow the dollars and loan them back to the treasury through bond purchases. So far, it has kept interest rates low, and stocks high. For the most part, this fiat currency has stayed out of the general economy. Big banks and large corporations have nowhere to put their money due to the vast uncertainty about future rules and regulations. Rather than invest, hire and expand, they have been buying back their stock, and speculating on commodities like food, farm land, and oil.

When those trillions finally make their way out into the economy at large, they will drastically lower the value of existing dollars, making prices higher, forcing interest rates to rise and devastating the poor and middle class. When food is unaffordable people take to the streets. We have seen it happen in Greece, Italy and all across the Middle East in recent years. The entire United States is following the footsteps of the City of Detroit.

The passage of the Dodd-Frank Act ushered in a new era of unaccountable bureaucracy heretofore unheard of in the history of the United States of America. Now that Harry Reid has been successful in subjugating the Senate Republicans to his unquestioned will, we citizens of these United States will be forever beholden to the will of an unelected unaccountable Czar of Consumer Banking and his fifteen minions. This Act effectively nationalizes the entire US banking system in the same way Obama-care nationalizes the health care system.

In addition to confirming the new Czar of Consumer Banking, the deal worked out in the Senate effectively gave President Obama a pass on the unconstitutional appointment of members of the National Labor Relations Board.

The erosion of the US Constitution has accelerated since the ratification of the 16th Amendment in 1913, and has reached the point where the Constitution is inconsequential in limiting the power of the federal government to intrude into our lives. The original intent of the founders was that if any tax were to be imposed on income it would be of the flat-tax variety, apportioned equally among the States. The US tax code now has become a means of rewarding friends, punishing enemies, and manipulating behavior. The Federal Government was never intended to have that kind of power. States were to be sovereign and State Governments paramount in legislating for the citizens. The Federal Government was only intended to be a facilitator of those very few (eighteen enumerated powers) things that could be better accomplished by the States acting in concert rather than individually.

Congress will never limit its own power. The drafters of the Constitution foresaw the possibility that the Federal Government would eventually exceed its authority and become tyrannical. Seeking to avoid a future shooting revolution, they included in Article V the ability for the States to convene a convention for the purpose of proposing amendments to the Constitution. The time has come for the States to exercise that power.

Part III of this series will offer suggestions for possible amendments to reign in our Federal Government and return the Nation to one based on individual liberty and responsibility.

The Case for Liberty and an Article V Convention – Part I

US Constitution - We The People

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 to 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 shown 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. –Such has been the patient sufferance of the citizens of these United States; and such is now the necessity which constrains them to alter their former systems of government. The history of the present governing leadership is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute tyranny over these states.

We are all, or should be, familiar with the foregoing passage from the Declaration of Independence. Except for two subtle changes made in the copy above, it stands as valid in today’s US political environment as it was in 1776.

Our government has become despotic to the point where it is now, or soon will be our duty to throw it off. Those wise men who assented to the Declaration were smart enough to include a method for doing so without guns, death, and destruction when they crafted our current Constitution. It is contained in Article Five.

Article V. The Congress, whenever two thirds of both Houses shall deem it necessary, shall propose Amendments to this Constitution, or, on the Application of the Legislatures of two-thirds of the several States, shall call a Convention for proposing Amendments, which, in either Case, shall be valid to all Intents and Purposes, as part of this Constitution, when ratified by the Legislatures of three fourths of the several States, or by Conventions in three fourths thereof, as the one or the other Mode of Ratification may be proposed by the Congress; Provided that no Amendment which may be made prior to the Year One thousand eight hundred and eight shall in any Manner affect the first and fourth Clauses in the Ninth Section of the first Article; and that no State, without its Consent, shall be deprived of its equal Suffrage in the Senate.

The U.S. Constitution.

Article V gives the States the right to convene for the purpose of amending the document which gives our Federal Government its power. The states therefore can, by calling for an Article V convention, make the changes necessary to reign in the out of control Leviathan in Washington D.C., before it becomes necessary to defend ourselves from it with arms. This author submits that time is short. It would be to our benefit then, to call on our State lawmakers to make application to Congress for a general Article V convention as quickly as possible.

Part two of this series will cover the grievances which must be addressed and the abuses of power which the citizens of the several States have had to endure. Part three will suggest changes to our governing document which will again limit the power of the Federal Government and take into account some of the realities that were not in evidence 235 years ago. Part four will discuss the necessity of extreme caution in picking our representatives to such a convention, and suggest some possible conferees, and part five will lay out a suggested framework for the convention itself.

At this very moment, a great Patriot named Ernest Lee has embarked on a 1000 Mile March for Liberty from western Tennessee to Washington DC, and though he has not discussed his method for correction, he bears the principles of renewed Liberty and limited central government under his banner. He plans to arrive for a rally to present his grievances on the 2nd of September 2013. They are grievances with which many would agree.

People of like mind and similar concern all over the country are banding together and are frustrated at the rampant lawlessness and dishonesty of our Government, and the rapid erosion of our Liberty. Yet the proper course of action has been unclear. Submitted for your consideration is the remedy set forth by those great men of vision in Article V of the United States Constitution! The time for action is now!

The Hypocrisy of Gun Control

It is ludicrous to imagine that not allowing some guns to be gunsmanufactured based on what they look like or how many bullets they will hold at any one given time, will do anything to curb the rampant violence in our nation.

While our lawmakers bemoan the availability of what they mistakenly call “assault weapons”, they completely ignore the real causes of all this violence. The causes of violence are cultural, not mechanical. These purveyors of edict pretend that guns are the problem, yet completely ignore the colossal number of depictions of truly nasty maiming and killing our youth are exposed to via various media 24 hours a day. These are the very same people who will exempt Hollywood from any responsibility, claiming that fiction depicted on the screen has no influence on folks, while at the same time spending millions and millions of dollars on thirty-second television commercials to get themselves re-elected because they KNOW that pictures influence people! The argument defies all reason and logic.

They are the same people who ignore the black on white youth mob violence occurring at alarming rates in our cities, who ignore the handgun violence in Chicago (a city with some of the strictest gun laws in the nation), and who rush to do something, no matter how ineffective it is so they can appear to have done something.

It is certainly true that it is not possible to legislate morality. It is equally true that people imitate what they see. If our political leaders exhibit a lack of honesty, integrity, and cooperation why do the expect the general public to act any differently? If our silver screen heroes are busy blowing up everything in sight on screen and being arrested for every form of debauchery off screen, how do we expect those who look up to them to act?

When our laws, the very founding documents of our governing system are ignored by our President, what example is there for the rest of us? When our religious and societal institutions are held up to ridicule on a daily basis by the popular media, what do they expect to occur? When it is illegal to teach moral principals in our schools, and discipline is removed, why is anyone shocked when some unbalanced individual shoots up a kindergarten? It is surprising worse things don’t happen more often.

Criminals, by definition, ignore the law. They have fine examples in our political leadership from the President on down. What on earth makes anyone think gun legislation will suddenly make any criminal obey the law? After all shooting up a kindergarten is already illegal.

Why Tax Rates Instead of Loopholes?

The Obama Administration has been adamant about raising tax revenue by raising marginal rates rather than by closing loopholes and capping deductions, even though the latter solution would raise as much revenue as the former. Why all the insistence on rates?

Loopholes in the tax code have historically been used to manage behavior, as well as to reward and punish those who are in or out of favor with the powers that be. If President Obama gets his way, he will still be able to use loopholes to reward his wealthy contributors, while also using the tax code to punish those who oppose his policies.

A flatter, fairer tax code with few deductions and loopholes would mean that those donors who favored the President with their millions, would have to pay like everyone else.

It is not about the revenue, it IS about the power.

Why the Federal Debt and Deficit Matter

In 2007 while he was campaigning for President, Barack Obama called George W. Bush irresponsible and un-patriotic for adding $4,000,000,000,000.00 to the US debt during his eight years in office.

President Obama was correct in his estimation. That has not prevented him, however, from increasing the debt by $5,000,000,000,000.00 in less than half the time it took George W. Bush.

Why does it matter? Why all the gloom and doom about ever increasing debt and deficits? The government can just print more money, so why does it matter?

The problem goes to the definition of the word inflation.

in·fla·tion
   [in-fley-shuhn] noun
1. Economics . a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency ( opposed to deflation).

By definition, increasing the money supply (printing money, now called quantitative easing) is inflation. It is inflating the money supply. Anytime the money supply is increased, the value of each dollar is lessened, causing prices to increase.

Suppose instead of dollars, we traded in slices of pizza. You get paid at the end of the week in slices, and when you go to buy gas at the service station, you pay with slices of pizza.

Now consider the term value. Suppose the value of a whole pizza cut into six slices is what a tank of gasoline costs for your car.




= One tank of gas






All of the sudden, suppose the government decides that pizzas will be now cut into eight slices instead of six. You get paid in slices, remember, not pizzas. The value of things has not changed, however. A tank of gas still costs a whole pie, meaning you now have to earn two more slices to fill up your tank.





= One tank of gas

Each slice is smaller now, and buys less. This also means that if you have loaned the government pizza slices, by buying treasury bonds, the slices you get back when you cash in your bonds are worth less than the ones you lent them. With interest rates kept artificially low, as they are now, it may even mean that the slices you get back including interest will buy less than the slices you lent them.

Since the dollar is no longer tied to anything of physical value, like gold, its value is purely arbitrary. It depends only on the total number of dollars in circulation. As our government continues to spend money it doesn’t have, it has to borrow the difference, either by selling treasury bonds to it’s citizens, to other countries or to the federal reserve. In order for the federal reserve to purchase enough debt to keep the country going without interest rates going up and greatly increasing taxes on everyone, it has to print more money. At some point, price inflation will start to increase rapidly, what is known as hyperinflation. Prices will skyrocket as in the case of Brazil in the early 1990’s. At its peak, Brazil’s inflation rate was somewhere around 4,000%.

In America, we are already seeing prices on food and energy rise rapidly. There is no question that a fair portion of the rise in energy prices is due to the decreasing value of the dollar. As energy prices rise so does the cost of everything else, especially food.

This relation to quantitative easing (printing money) and price inflation can be illustrated quite easily by comparing the value of silver to the value of gasoline. In 1907 an ounce of silver would buy about 3 gallons of gasoline. In 1984 gasoline was about $1.20 per gallon and silver sold for about $8.14 per ounce meaning that 1 ounce of silver would buy about 6.8 gallons of gas. Today gasoline sells for about $3.83 per gallon and silver for $30.27 per ounce meaning that 1 ounce of silver today will buy 7.9 gallons of gas.

By the gasoline example we see that if silver were used as money, the cost of a gallon of gas today would actually be less than HALF of what it cost in 1907!

In a report titled “The Realities of Modern Hyperinflation” produced by the International Monetary Fund, authors Carmen M . Reinhart and Miguel A. Savastano point out;

“Chronic high inflation does not necessarily degenerate into hyperinflation. But, in the five countries reviewed here, hyperinflation did ensue, triggered by an uncontrolled expansion in the money supply that was fueled by endemic fiscal imbalances.”

One of the reasons for Ron Paul’s insistence on a return to sound money is to avoid a hyperinflation cycle brought about by an ever expanding money supply. If we continue to spend money that we do not have at the federal level, we are headed for exactly the kind of hyperinflation which is devastating to the poor and middle class. Simply taxing the rich will not fix our debt and deficit problem. The rich only have enough money to keep our government spending at its voracious rate for several months at best, even if we confiscate ALL their money.

Currently all revenue the federal government receives is spent on mandatory programs, social security, medicare, medicaid, food stamps, welfare and debt service. All discretionary spending including defense, is borrowed money. If we do not deal with the entitlement programs we are doomed to an inflationary spiral that will quickly spin out of control.

The IMF report leaves us with seven lessons to remember about hyperinflation.

Policymakers would do well to bear in mind the seven lessons that emerge from this overview of modern hyperinflations.

1. Hyperinflations seldom materialize overnight and are usually preceded by a protracted period of high and variable inflation.
2. Stabilization may take years if fiscal policies are not adjusted appropriately. Even when fiscal adjustment is implemented, it takes time to achieve low inflation, especially when money is used as the nominal anchor.
3. Sharp reductions in fiscal deficits are always a critical element of a stabilization program, regardless of the choice of monetary anchor.
4. Unifying exchange markets and establishing currency convertibility are often essential ingredients of stabilization, irrespective of the choice of main nominal anchor.
5. Output collapses during, and sometimes in the run-up to, hyperinflation. Although stabilization measures cap the implosion in economic activity, there is little evidence to suggest that they kindle a robust rebound in economic activity.
6. Hyperinflations are accompanied by an abrupt reduction in financial intermediation.
7. Stopping a hyperinflation does not restore demand for domestic money and domestic currency assets to the levels that prevailed before the hyperinflation began. Capital returns to the country when high inflation stops, but dollarization and other forms of indexation dominate financial intermediation for many years.

Twitter Hashtag #RacistDemocrats

After becoming completely disgusted with MSNBC’s coverage of the RNC Convention, beginning with Chris Mathews assumption that all food stamp recipients are black, to their failure to cover Mia Love, or any GOP minority speaker, I took to Twitter to establish a new hashtag #RacistDemocrat, only to discover someone had beaten me to it.

With the thousands of examples of horrible epithets hurled at black conservatives from the left on social media, and the hundreds of examples of somewhat softer racism from the media and political leaders, it seemed important to have a place to post examples.

After Mia Love’s speech last night, open-minded tolerant democrats took to twitter to call her horrible names and even went so far as to edit her Wikipedia page, calling her a “house nigger.”

From Twitchy.com

Tuesday night after rising GOP star Mia Love brought down the house with her inspiring convention speech, the stomach-turning Left labeled the black conservative a “token” and an “Aunt Tom.”

Meanwhile, revoltingly racist, woman-hating Wikipedia vandals were hard at work updating her entry with disgusting slurs like “House Nigger” and “dirty, worthless whore.” The page called her a “total sell-out to the Right Wing Hate machine and the greedy bigots who control the GOP.”
Glenn Reynolds reported the defacement of Love’s Wikipedia page last night.

Here is a screen shot of the page before it was corrected:

While they claim to want a colorblind society, and discourse in a civil manner, it is becoming increasingly difficult to take anyone on the left seriously when they display this kind of bigotry and hatred.

Code Pink Female Anatomy Protest in Tampa – May be inappropriate for children!

The foul weather did not keep dozens of protesters from “Code Pink” and “Occupy” from showing up in Tampa to oppose the GOP.

Dressed like parts of the female anatomy, many protesters voiced their opinion in support of on demand abortion. Some parts of the attached video may be offensive and not appropriate for children.

2016: Obama’s America Delivers A Unique Perspective on Obama’s World View

Dinesh D’Souza’s look at Barack Obama’s life growing up in Hawaii and Indonesia offers unique insight into the perspective of the nation’s 44th president. In the recently released movie “2016: Obama’s America”, the President of King’s College in NY City chronicles the life of a young man who was raised in an anti-colonialist environment.

Influenced by tails of a father he met only once, and a step father who saw Indonesia finally free itself from Dutch colonial rule in 1949, D’Souza shows his audience the anti-colonial influence that so impressed Barack Obama in his early years. This influence continued when back in Hawaii, he was mentored by the notorious communist Frank Marshall Davis.

When juxtaposed with a traditional American upbringing, the film makes clear the differences in world view between Barack Obama and the historical American perspective. It explains his animosity toward long time American allies, Great Britain and Israel, and asserts a possible motive for downsizing not only the country’s strategic defenses, but the economy as well.

In the end, D’Souza asks each viewer to look within themselves and ask the question which world view would they choose for the future of America.

The film, released in only a few markets last month and expanded nationwide over the weekend, has grossed $9.2 million, and become the top earning documentary of the year (excluding nature films).

Media Ignores Occupy the Truth Rally About Media Bias

An estimated 1500 people turned out in Cleveland for the Occupy the Truth rally to draw attention to the main stream media’s bias in reporting the news.

The one group that did not turn out was the main stream media, proving the group’s point.

In April, five members of Occupy Cleveland were arrested for attempting to blow up the Brecksville-Northfield High Level Bridge. The main stream media largely ignored the alleged terrorists’ connection to the Occupy movement.
Jim Hoft, an organizer of the event and blogger at the Gateway Pundit wrote,”The goal of Occupy The Truth is to inject some honesty into the narrative of just how potentially violent the Occupy movement can be.”

Conservative favorites Dana Loesch, Michelle Malkin and Sonnie Johnson headlined today’s rally in Cleveland. Dana Loesch rocked the crowd with sarcasm aimed at the Occupy movement, the main stream media and Ohio Senator Sherrod Brown.




Many prominent members of the democrat party, including Mr. Brown have praised the Occupy movement, despite the numerous incidents of rape and violence within its ranks, while at the same time falsely accusing the Tea Party of racism and hate.

The media have ignored or minimized most of the incidents perpetrated in the Occupy movement. As of last December at least 403 incidents have been reported involving Occupy members, but the media has failed to piece them together.

President Obama is NOT a Socialist!

In two speeches last week in Colorado President Obama revealed his true ideology, and it is not Socialism. While defending the automaker bailouts, he demonstrated his vision while calling for similar bailouts for all industries.

In this one speech he confirms what many have long thought, Obama’s philosophy is closer to Mussolini than Marx, one of Fascism or National Socialism rather than Communism or Socialism.

The Affordable Care Act has effectively given him control, not only of the insurance industry, but the health care industry as well. In addition there is a provision in the bill (Sec. 2717, Subsection D, paragraph b,) which gives him control over all of us.

Compare his statement in Colorado with this one. “Fascism should rightly be called Corporatism as it is a merge of state and corporate power.” -Benito Mussolini

And with this one, “State intervention in economic production arises only when private initiative is lacking or insufficient, or when the political interests of the State are involved. This intervention may take the form of control, assistance or direct management.” -Benito Mussolini

And this one, “The Fascist State lays claim to rule in the economic field no less than in others; it makes its action felt throughout the length and breadth of the country by means of its corporate, social, and educational institutions, and all the political, economic, and spiritual forces of the nation, organized in their respective associations, circulate within the State.” -Benito Mussolini

Mussolini also said, “The measures adopted to restore public order are: First of all, the elimination of the so-called subversive elements. […] They were elements of disorder and subversion. On the morrow of each conflict I gave the categorical order to confiscate the largest possible number of weapons of every sort and kind. This confiscation, which continues with the utmost energy, has given satisfactory results.”

A section of National Defense Authorization Act, signed by President Barack Obama in December, could give the Federal government legal powers to detain any dissident voices if they are deemed to be enemies of the state.

In 2008, in a campaign speech in Colorado Obama called for a “private army, just as powerful, trained and well funded as the military.”

Today, he is busily de-funding the US military while labor unions are being exempted from stalking laws and other laws pertaining to the use of violence in their cause.

Consider this description of Mussolini’s reign in 1930’s Italy from the Constitutional Rights Foundation, Mussolini and the Rise of Fascism.

During the 1930s, Mussolini organized industry, agriculture, and economic services into state-controlled labor unions and employer associations called “corporations.” Government officials appointed the heads of each union and employer corporation. They negotiated wages and working conditions with each other.

This “third way” corporatism attempted to unify workers and employers by requiring them to set aside their private interests in favor of the best interests of the fascist state. In practice, however, the employers usually benefited more than the workers did.

Police crackdowns on dissent were mild compared to fascism in Hitler’s Germany. But a special court tried anti-fascists, those working against Mussolini’s regime.

Again, if we look at the way General Motors was re-organized, with the labor union in control and a large share of stock owned by the federal government, it parallels Mussolini’s “third way”. Now President Obama wants to re-organize the rest of industry in the same manner by his own admission!

Also notice how President Obama has sought to organize existing labor unions like the UAW, SEIU, and the NEA into a private army behind him while at the same time punishing non-union businesses like Gibson Guitar and right to work states like South Carolina.

While not blatantly anti-semetic, his treatment of Benjamin Netanyahu has been far less than friendly, and his “off mike” comment to Nicolas Sarkozy was telling. More troubling though is the recent DHS report labeling groups who are “suspicious of centralized federal authority, reverent of individual liberty, and believe in conspiracy theories that involve grave threat to national sovereignty and/or personal liberty,” as possible terrorists.

This administration and it’s support groups spend an inordinate amount of time trying to demonize certain other groups of people based on their political philosophy, religion, and color of their skin. The continuing persecution, though not nearly as ferocious, is akin to the demonization of people of Jewish extraction in 1930’s Germany.
Marx believed that the workers should unite and takeover the means of production, that the fruits of that production would then be shared among the workers according to their needs. Fascism on the other hand, believes that the government, in partnership with corporations, should run the nation, and that the people must live their lives for the greater good of the country, rather than the pursuit of happiness for themselves.

Whatever the guiding philosophy, time and time again the administration has shown an utter disregard for the constitution and the rule of law, preferring to govern by edict rather than the consent of the governed. Without the re-election restraints placed on him in a second term, there is no telling how dictatorial he may become.

SuperPac Anti-Romney Ad SO Bad Even MSNBC Condemns It!

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This morning on The Morning Joe, even Mika Brzeznski called out the White House for lying about knowledge of the Priorities USA ad, which implies Joe Soptic’s wife’s death was due to Mitt Romney closing GST Steel.

Stephanie Cutter, Obama’s campaign manager, denied knowing anything about Mr. Soptic’s story even though she hosted a press conference call with him three months ago.

The ad has been proven to be materially false. Mitt Romney was not in charge of Bain Capital when GST Steel closed. Prior to it’s closure Mr. Soptic was offered a buyout, which he declined. His wife had health insurance for two years after it’s closure and her death was six years after the plant closed! Notice in the MSNBC segment that Mr. Soptic is wearing the same shirt in both an Obama administration ad and the Priorities USA ad. This seems to beg the question, were the ads shot on the same day?

It is illegal for a campaign to coordinate with a SuperPac on message or advertising.

It’s obvious from their demeanor that they are loath to do it, but kudos to MSNBC and the Morning Joe for doing the right thing!

Luxury Tax 2.0 – Obama’s War on Prosperity

President Obama keeps asking “Do you want to return to the failed policies of the past?” At the same time he is urging us to envy those who have worked very hard and risked their own capital to make the American dream come true.

An examination of that question might be in order. Those who are not willing to just blindly accept what they hear, but are of reasonable mind might wish to examine the facts. His plea is not a new one, it is one we have tried before, with disastrous results.

The politics of envy got a thorough trial under George Herbert Walker Bush (41). In fact it worked out so well, it cost him his job along with 200,000 other poor unfortunates. Philosopher George Santayana put it so well, “Those who cannot remember the past are condemned to repeat it.” Either the current administration does not remember the “Luxury Tax” or they are banking on the fact that the public does not.

To refresh our memories, after his famous 1988 campaign quote “read my lips, no new taxes”, in 1990 under enormous pressure from the Democrats in congress, President Bush acquiesced and signed the “punish the rich for being rich” luxury tax bill. That bill greatly increased taxes on things like yachts, airplanes and expensive jewelry. The Democrats said it would increase revenues and if folks could afford to buy yachts, they should cough up some of that cash to help the poor and unemployed. The actual effect though, as one might guess, is that people quit buying yachts, or bought them offshore. The net effect was that revenues went down, and 200,000 people who worked in the boat building industry lost their jobs. Ultimately it cost Bush the 1992 election.

What so many people fail to grasp is “The Law of Unintended Consequences.” Everything we do has consequences but so many want a life without adverse consequences to anything. It just isn’t possible. The law of unintended consequences is a offshoot of the law of cause and effect. If one hits one’s self in the head with a hammer, one’s head will hurt. Cause (hitting your head), effect (head hurts).

The law of unintended consequences comes into play when ideas which sound, on the surface like good ideas meant only for the benefit of people, are implemented without any thought to what the actual outcome might be. For example everyone wants clean air. We probably have the cleanest air in the world now, but under the guise of cleaner air the EPA has put in place regulations which are closing coal fired power plants all across the nation, 57 this year and 175 by 2016. In the US 42% of our electricity comes from coal fired generators. That means that in exchange for making our air an infinitesimal amount cleaner we are going to not only sacrifice 8.5% of our coal fired generating capacity with nothing to replace it, but we are going to put thousands and thousands of people out of work. All of this while energy consumption continues to grow. As the power plants shut down, so do the coal mines, the coal haulers, the coal mining suppliers, and the coal rail haulers.

In addition to reducing our capacity for electrical generation, we will also increase the cost of electricity by at least a factor of two. So Grandma, who was worried about Paul Ryan throwing her off a cliff by trying to save social security, can just fry in her apartment because she can’t afford to pay the electric bill.

As the cost of energy increases, so does the cost of everything else. Farmers and manufacturers must pass this added cost on to consumers. Meanwhile, lets add some additional tax and regulatory burden to those manufacturers as well, because they are the evil rich and we have to get them. No one ever explains why we have to get them, we just do. It’s the fair thing, no matter what it costs the rest of us.

“I Love My Country,” Says Senatorial Candidate Tom Smith

The farm of US Senatorial candidate Tom Smith was the setting for Sunday’s picnic and meeting of the Indiana Armstrong Patriots in Western Pennsylvania.

Facing a tough race against Senator Bob Casey (D-PA), Mr Smith gave a short and well received speech about the importance of electing conservatives to the Senate this fall. He commented on the degree to which Pennsylvania had voted Republican in the last election and encouraged the crowd to do the same in November.

I had the opportunity to speak with him briefly. He struck me as a down to earth man with a strong sense of duty to his country. He said to me, “Someone asked me recently, with all you have Tom, this place, wife, children and grandchildren, why would you want to run for the Senate? I told them that I love them all dearly, but I love my country more.” He went on to explain that it is for those children and grandchildren that he is running. They are the ones who will have to pay for the massive debt we are accumulating, and it is their freedom which is at stake.

Jobs are top on the list of Tom Smith’s issues, with heavy emphasis on loosening the stranglehold the current administration has on the free market by repealing ObamaCare, encouraging energy production including coal, oil and natural gas, and opposing the coming huge tax increases on everyone.

Mr. Smith’s positions also include finally securing our national borders, limiting the terms of those who are supposed to serve us, but end up serving themselves in Washington, and reigning in once and for all the completely out of control spending from our nation’s capitol.

Also speaking Sunday’s meeting were Pat Leach on behalf of Soldier’s Angels and Naysa Woomer representing Heritage Action for America.

Soldier’s Angels motto is “May No Soldier Go Unloved.” It is a volunteer program by which people adopt a soldier currently serving on active duty. The angel corresponds weekly with the soldier and helps to provide them with little things from home that they cannot get where they are deployed.

Ms. Leach also told a story about knocking on doors for Republican candidates, one of which was answered by a young man who told her he was a democrat. She asked him if the election were held today would he vote for Mitt Romney or Barrack Obama. In a quiet, unassuming voice he answered, Mitt Romney. He had just last week lost his job, and his wife has been crying for three days.

Ms Woomer explained that Heritage Action for America was the sister arm to the Heritage Foundation. She went on to tell the audience of about 150 Patriot members that one of Heritage Action’s functions is to score House and Senate members on their voting records with regard to conservative issues. She pointed out that Tom Smith’s opponent, Bob Casey, has a Heritage Action score of just 3%. Scorecards were made available to all who wished to have one.

For more information on Tom Smith’s Senatorial campaign go to http://tomsmithforsenate.com.