The Fear at the Fed

November 25, 2013

Why does the Fed continue to print?  Why does the Fed continue a policy of putting more money into the economy?  Why does the Fed pretend inflation is low and monetary policy requires a “stimulus”?  These questions  don’t get any attention by the administration and most of our Representatives. Doesn’t this seem odd?  It’s not odd if you understand why the Fed and our Representatives are afraid to confront these issues.  The simple answer is a motivation of fear.  Fear of what?  A depression.

Look at the history of the Great Depression and you quickly see the Fed tried to constrict credit and created a disaster.  Regardless of the many “causes” of the Great Depression it was the culmination of too easy credit and the ensuing effort by the Fed to rein it in.  The roaring Twenties didn’t happen because there was some magical increase in speculation.  That speculation was the result of the Fed loosening credit, causing inflation and speculation and ignoring the credit market.  It was the result of a political decision and the ensuing disaster was the result of a political decision.  Nothing else precipitated these unnatural economic phenomena. Panics prior to this era were mild and relatively inconsequential economically.  But this “experiment” in Keynesian manipulation demonstrated the folly of financial manipulation to the degree  it could cause real and permanent harm.  The Fed hasn’t learned from this lesson and the Savings and Loan Debacle and the Housing boom and bust demonstrates their inability to recognize the dangers of financial manipulation by the Fed but they persist in a straight line progression into oblivion.

They know that if they constrict credit the speculation  bubble will pop.  They know what that pop looked like in the thirties. They know this one could be for worse and last far longer and the politicians don’t want the ghost of Hoover to be their legacy. Therefore they simply pretend the issue isn’t before them but deeply fear it will manifest itself in the reality they are pretending isn’t on the horizon.  They have ignored the false reporting of inflation they have instituted and continue to rely on its veracity.  This was the kiss of death they indulged in and rely upon to excuse their ongoing spending and printing of money.  Inflation can be measured accurately by what is happening to the value of the dollar and the ensuing price increases That can be reported falsely but cannot be avoided in realty.  As fuel and food prices escalate eventually all other consumer and producer costs increase. The instances of inflation and hyperinflation of the past are historical facts. They were caused by government decisions.  They were caused by too much money in circulation.  The opposite conditions of depression and recession were likewise the result of government decisions attempting to correct rampant price rises. Each attempt led to further distortions of the economy and in many cases the collapse of the economy.

Politicians and their lackeys know this ,but want everyone who isn’t in or around politics to think they are unaware of what is going on. This pretense that observations and reality are tools of manipulation for politicos only deludes those participating in the acts of deception and pretending they are getting away with it. The obvious results can only lead to two  scenarios.  Either we drift into hyperinflation or we enter a huge depression.  They know this but hope they will not be the ones blamed.  That is their last hope.  Given the policies perpetuated and the history dictating otherwise, this hope is a false hope and a blatant delusion.

The other fear is the fear of hyperinflation.  The manipulation of the way inflation’s reported seems to give them cover from this scenario but again reality and cooking the books are at odds.  They are getting away with it for now and that is the depth of their vision.  It could come crashing down on their heads in the form of the amount of money required to service the national debt.  Printing won’t get them out of this issue without hyperinflation. This is real and visible in the future.  They choose to ignore it as it is in the future.  They choose to ignore the depression alternative because they are printing and containing this with the twin tools of misreporting of inflation and not mentioning what will happen if they constrict credit.  Again the hope emerges they can get away with it. Hope is simply wishful thinking without any recognition of cause and effect.  It is a supernatural miracle that will never happen.  They know this and thus they fear.


From the NY Times Editorials

November 19, 2008

Today the NY Times says, “Almost unnoticed in the election results was some very good news for the environment — and for land preservation in particular. Despite the financial crisis, voters made it clear that they want to increase spending on preserving open land, even at the cost of higher taxes.”

 And where will this stop?  The Federal Government and most state governments cannot afford to keep up the properties they have.  They buy with tax dollars then charge for use and still the condition deteriorates.  Letting the government and encouraging the government to own more and more what used to be private tax revenue generating land has but one end point.  In the near future private land will be obsolete or too expensive to acquire except by the government.  This affects agriculture , recreational usage, mineral extraction, grazing and a host of profit generation opportunities that provide goods and services.  This for a quarantined expanse of posted land by the government that produces nothing and cannot be developed and maintained.  

The argument for more government land acquisition is an argument for more government control and in essence more government.  The fact that such a movement is supported by the voters is proof the voters haven’t clue what too much government can do to individual rights, standards of living and national security.

The Two Prong Attack of Islam

December 11, 2015

The Two Prong Attacks of Islam

A false dichotomy is afoot.  The notion that Islam is only composed of “Radical” extremists and the other Muslims are simply peaceful is actually a two prong effort to instill Sharia law by two methods of infiltration.  First ,the one that gets the most attention is the bloody acts of killing and maiming witnessed most recently by the attacks in Paris.  Here the suicidal fanatics demonstrate to the innocents and the muslim population at large how dedicated and ruthless they can be.  Willing to blow themselves up to instill terror in the hearts of the innocents they simultaneously instill that same terror in the Muslims passively going along who dare not speak up against their fanatical brothers acting out the atrocities of Mohammad.  This method of spreading Islam has been the strategy of Islamists from the first days of this religion.  The objective of creating Sharia law and the killing of infidels, the worldwide conquest of all nations, and the establishment of a caliphate drive this movement.

Once the terror is established by the fanatics the road is clear for the passive Muslims to make their move by infiltration and non-assimilation into countries primarily of another persuasion. Relying on the altruism and fear of their victims, mobs of Muslims take over by majority as in the town of Hamtramck Michigan. It is equivalent to a mopping up operation after the blitzkrieg of the fanatics.  This follow up movement must be reinforced by periodic acts of violence and terror to reinforce the followers belief that the movement is inevitable.

Americans and many others have not wised up to this approach and have excused the followers as deserving of innocence.  The taking over of pockets of formerly non-muslim areas proves otherwise.

If you couple this approach with a willingness to lie to promote Islam you have a potent objective that can only be stopped if it is recognized as the devious monstrosity it is.  The intellectual defense of claiming islamaphobia  when “innocent followers” are accused of compliance to this spread of Islam works well in a country willing to give the benefit of the doubt and turn the other cheek .

This war is a different war than those of the past.   It is not a war of identified enemies with uniforms and national loyalty.  It is a war of subversives willing to connive and infiltrate, perform suicidal carnage and simultaneously slither into the population of the unsuspecting in two different forms.  One is the fanatic and one is the follower but both have the same objective and only perform differently to obtain this goal.

The term radicalized has real meaning when the follower becomes the fanatic.  Passively infiltrating and avoiding assimilation is a more subdued method so those who want to speed up the process and inspire the followers to comply become who we call “ radicalized” which means they are now of the fanatic class and will do violence to intimidate and strike terror.

So what is to be done in such a war?  First identify the strategy for what it is and realize how attitudes and mores are affecting our ability to counteract the movement.  Calling the followers innocent is a major mistake.  When the followers do not denounce the fanatics you can be sure they are being compliant.  How many Muslims did you see condemn the killings in Paris?

This logically leads to the need to identify and root out those who are plotting against the people who are innocent.  The source of propaganda is wherever the notion of a caliphate and Muslim dominance is taught.  These centers whether in America or the Middle East or the Far East must be targeted as seeds of conquest and infiltrated and monitored and/or destroyed.  Hiding behind the “sacredness” of a religious temple or sanctuary is only another tool the true Muslims hide behind just as they hide behind women and children in battle.

Once the enemy knows we are onto their game, the game is over. When they talk we know they lie.  When they seek peace we know they seek dominance.  When they claim innocence we know they only use a different method to overtake us.  When they cry discrimination, we simply tell them we discriminate against all criminal behavior.  We need to give no quarter to this enemy that is doing everything it can to overtake us.  They think they are being clever but the identification of their methods and connivance puts us in the position of strength they fear.  Once they know that we know what they are up to, trepidation will begin, doubt will spread and the cleverness they were sure was undecipherable will disappear.  Know your enemy is the first requirement of victory.

The Real Nuclear Option and Why it is Necessary and Moral.

September 21, 2014

This essay is not about some silly Senate label on a vote that diminishes minority input. It is about the necessity to demolish and instill terror into the minds of those who think terror is a viable means of dealing with their fellow mankind. Harry Truman decided the loss of American and ally life would be too high a price to pay when the option of invading the Japanese was proposed and contemplated. He was correct in his use of atomic power as witnessed by the fact that the Japanese for all their bravado and kamikaze tactics capitulated only a few days after seeing what was in store fro them if they continued their madness.

We are faced with a new bunch of butchers who intend to intimidate us into accepting their barbaric notions and the only rational response to a terrorist is to give him an idea of what real terror will consist of for him and those who associate with him. We do not need to send soldiers into the Middle East to be captured, killed and hit with road bombs. We have done that and the results have been shattered American families, maimed returning soldiers, losses of parents lives and children growing up facing the threat anew.

We have the means and the weapons to obliterate this barbarism but we don’t have the will to inflict the kind of mayhem that will get the attention of the terrorists and leave them in a state of constant fear. They seek to instill fear, let them know what kind of fear they can experience as they are wiped out and confronted with the realization that only by their complete surrender can they be allowed to coexist. We are not going to embrace their 13th century philosophy of slavery to their beliefs that the world has long outgrown and overcome. We are not going to revert to barbarism but we are going to inform those who want barbarism that we have far greater weapons and means to put a stop to any movement that aims and reversing our gains that established individual rights . We have no intention of simply surrendering those gains for some barbaric notion of a faith that honors martyrdom over productive behavior. We have no intention of cowing down to killers who behead our fellow citizens.

With the stockpile of nuclear weapons we possess why did we stockpile them and retain them if not to deter any threat that was presented? We cannot use diplomacy on these primitives, they are infiltrated with blind faith and that idiocy rejects reason. Reason and diplomacy cannot be divorced. That leaves only force and overwhelming force must be the answer to their threats. We will lose thousands of American troops in another prolonged “conflict” that could be avoided with a little courage from those who sought power through elections and then refuse to protect those who voted from threats. Power without courage is a means to ultimate demise.

The lack of courage of our politicians is the result of them absorbing uncritically what the nature of government is and why its primary function is to protect the citizens that they supposedly represent. The politicians have diverted and obfuscated thinking their only purpose is to get elected and then worry about he next election to stay in power. That is NOT the role politicians should accept nor aspire to. The moniker “public servant” which they bandy about, if taken literally would fit their job description more closely than the current notion that they are an elite wiser than thou overlord.

There can never be peace if these continuous police actions answer conflict with troops stationed at all corners of the globe waiting to be kidnapped, beheaded, shot or imprisoned while the thugs rant and rave they want their unreasoned rules to prevail. Thoughtful persons have shouted to the American people to “wake up” and demand their government protect them ( with the unspoken addendum , “ by any means necessary”).

The final issue to address is the loss of innocents. Not by the terrorists evidently as this isn’t the dominant theme. We can warn before we strike but we cannot avoid the loss of innocent lives of our enemies just as we cannot avoid losing soldiers if we place them in harm’s way to avoid a more devastating attack via nuclear weapons. It has been a tradition in the Middle East to join the winning side and switch as the tides of battle turn. This seems to be unnoticed by our politicians and they consequently don’t know who to side with for a coalition. This phenomena would come to a screeching halt if they knew the United Staes would not tolerate and would retaliate against any threat to American interests.

I know that most who bother to read this will call it too radical and too out of step with the people who fill out polls. I can only say, “ so what?” We have seen what the conventional pundits and politicians have come up with as an answer and it simply hasn’t and won’t work. For the sake of the coming generation speak up and don’t rely on them to discover what we now know , have learned the hard way and have elected leaders who don’t know what their job is.

The Alternative to Obamacare that Republicans Can’t Grasp.

November 19, 2013

The free market alternative to Obamacare is not being presented from the Republicans. Why? Because they are not for free markets and are too tied up in their political i.e. crony attitudes. Republicans support subsidies which are nothing more that wealth redistribution. Republicans won’t stand up to the Democrats on tax increases using it as a “bargaining” tool to get their preferences. Republicans have supported entitlements, government intervention in the economy, and all of the evils of anti-free market ideology. This is why the country recognizes we do not have a two party system but a one party system that vacillates with the political expedient. Will the Republican party change? Look at the reception of the Tea Party by the old guard Republicans. The Tea Party has never been totally a free market monument but it is further in that direction and it should be the direction the Republicans should recognize and accept. Why don’t they? They are too focused on gaining political power which they have no idea how it should be more limited than exercised. Additionally they are brain dead when they address individual rights. Making abortion an issue that erroneously identifies a fetus as a child is a step that endangers the individual rights of the pregnant woman. This is why the conservative wing of the Republican is a barnacle that creates a division that shouldn’t exist. The belief that all will be okay with what the Republicans do in an election. This is the old guard Republicans mantra. What is in the minds of the Republicans matters. They are the major party that can move in the direction of freedom and prosperity. But where are the Republican thinkers that know why capitalism is the only system that has sustainability. Where are the Republican thinkers that are challenging the mistaken premises of the old guard? The loudest Republican voices are conservatives which shows why they are on life support. Republicans without a clear ideology are second class politicians dodging and darting hopping to slow the direction of the Democrats who have an ideology that is wrong and destructive. The Republicans need to jump to the lead and change the direction of the misguided crowd. They can’t do that with the lack of intellectual ammunition they have in their cache. It isn’t the garnering of political office that will establish a Republican movement toward free market principles. It is a think tank of intellectuals that understand the morality of capitalism and drown out the babble of the same old messages that have only continued to confuse and distract from the truth.

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January 24, 2010

Tuner38’s Blog › Nationalize the Debt

February 25, 2009

The government says,” It may have to nationalize the banks.”  The banks are usually a depository of assets that they loan a percentage of to earn money to stay in business.  Since the government has no depository of assets it can loan a percentage of they must think a huge national debt will be an adequate substitute.  But if this is true why not just declare all that is necessary to be bank is to have a lot of debt.  Now all who are in debt can declare themselves to be a bank and loan themselves money to alleviate their debts.  Think this won’t work?  Then what makes you think spending more will get the nation out of debt?  Wake up.

Tuner38’s Blog › Ignoring the Future — WordPress

February 5, 2009

The fact that all forms of government services are cutting back and/or charging higher fares as the country faces an economic meltdown shows how ineffectual government can be when trying to provide services that should be privately run.

As revenue slips private companies retrench but government doesn’t.  This attitude is only putting the country in greater financial distress. It would be a good time for a privatization movement which could unburden the government of what it cannot afford, initiate competition and the injection of profit making sound business principles.  

If people want to keep begging the government for money it doesn’t have to keep these quasi government businesses going and living by the rules the government attaches to the “loans”, they will have regressed into the feudal realms of antiquity and can no longer claim to contribute to the “home of the brave” in spirit.

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December 31, 2008

A question has arisen that needs an answer.  Money is being given to companies and organizations that is supposed to be coming from the taxpayers’ coffers.  But the taxpayers are losing jobs and the companies they are no longer employed by are being paid by the unemployed taxpayers ?  Who is getting the money from whom and how?  Since there is more debt than taxpayer revenues that means there is really nothing in the taxpayer till.  So whatever is being paid in taxes is really only paying a little on the principle and interest and not supplying any additional revenue for any bailouts.

This would indicate no one is looking at the big picture.  This would indicate the only option the government has is to further deceive the citizens into believing that what is really going on is somehow not going on. How long can that go on?  Not long.  What happens next?  The next major crisis is inflation.  You can bank on it.

Another New York Times Opinion Critique

December 7, 2008

Today the New York Times on their editorial page has an editorial entitled,”The Employment Crash” and in that editorial they say, “Members of Congress should be working now on another round of economic stimulus, consisting of bolstered unemployment compensation and food stamps and aid to states and localities, including money for creating jobs by rebuilding the nation’s infrastructure.”  They don’t say where the money for all this “stimulus is to come from nor do they say how more deficit spending will affect the value of our money. This is simply one of thousands of poorly constructed arguments advocating the growth of government and the destruction of any remnants of a free economy.  A stimulus with paper dollars that are losing value moment by moment is nto the answer to anything.  It is only an invitation to hyperinflation and further economic deterioration.