Monthly Archives: September 2023

Biden, Economics, Elections, Representation, Responsibility, Taxation

TRASH-TALKING INFLATION

Leave a comment

Most of what we hear on TV or radio about the big enemy: INFLATION, is only partially true, at best.  Defeating that enemy, which politicians claim to be doing for their constituents, is impossible if we fail, sometimes on purpose, to understand the nature of it.  Let’s examine the primary aspect, or feature, of Inflation: it is a tool of government, by which we mean, the federal government. 

This is not to say that government intends to raise prices on commodities and goods and labor, but then, prices rising is not the definition of inflation, which is why much of what is spewed about “inflation”… is disinformation.  Inflation represents only an increase in the money supply; along with the federal government’s sneaky mechanisms, there are only a couple of ways to expand the money supply, primarily banks, and banks can do so only because of federal regulations.  Oddly, foreign banks and governments can ALSO expand the money supply, increasing inflation of the supply of dollars, not of wealth.   When prices rise there are temporary bumps in wealth due to increased receipts and, often, fixed rates of interest on loans.  So, there is a spotty increase in prosperity, but not for everyone.  Inflation increases dollars, but each represents less wealth than it did even a few months, if not weeks earlier.

Only the federal government can “create” money.  The Constitution charges the Congress to “…coin money, (and) regulate the value thereof…”  In 1913 Congress shed that Constitutional responsibility – and authority – when it created the Federal Reserve Bank, which is a consortium of private banks with federally appointed “governors.”  Legally, “The Fed” can loan money it does not have, to the government – it’s a neat trick.  Of course, the Congress must approve expenditures and, when the government has no cash, it must approve borrowing  “… on the full faith and credit of the United States …” to enable those expenditures.  To LIMIT the degree of overspending, Congress created the ”Debt Ceiling” in 1917, streamlining the emission of bonds by the Treasury as World War I expenses mounted.  With various changes and accommodations since, Congress has largely permitted the federal government to borrow whatever it can justify politically.

Since the Johnson Administration and the federalization of welfare and healthcare, the “Debt Ceiling” has proven to be not much of a ceiling, or limit, at all.  As we approach $33 Trillion in federal debt, the debt ceiling has become merely a tool of negotiation, with the ultimate “threat” of “government shutdown.”  With millions of people now dependent upon government handouts, it’s possible for those on the left to raise huge public, political outcry against a “shutdown.”  All that conservatives can garner is some compromise on unrelated policies or spending changes, but never is there a reduction in spending or overall cut to the federal budget.  It’s always an increase.  The $33 Trillion is documented inflation.  It’s not static, and it is expensive.  When the Federal Reserve was created in 1913, the concept of interest costs to federal borrowing was supposed to keep borrowings small and temporary – that is, “paid back” to stop the interest costs.  Today, the cost of interest on the national debt is well over $800 Billion – approaching the defense budget(!).  The concept of limitation through interest obligations is out the window with the debt ‘ceiling.’  Our “representatives” have shown over many decades that they cannot be trusted with OUR money.  How does inflating the money supply serve the interests of government?

On any given morning the value of all the dollars in the world is whatever it is.  Let’s call it ONE (1).  “Da Gummint” comes up with some cockamami plan to save the planet or forgive student loans or flood the country with 7 Million new welfare recipients… just saying.  With the federal budget already overspent by 30% or so (financed by earlier borrowing) the president’s party dutifully files legislation to make everyone’s life better while enrichening donors to their party.  It requires a new loan to enable the new magnanimity and, since all the loaned money (and tax receipts) authorized so far has been allocated, the “debt ceiling” must be raised.  Eventually it is and a new $500 Billion or so is authorized and the loan made.  The government spends the new dollars at a value of “1,” and target recipients do as well.  Congress-people brag to their constituents about the wonderful benefits and bacon they’ve delivered.

Some of the money is used to pay current federal expenses of various kinds, including entitlements, and some goes to pay interest on this and earlier debts, now approaching THIRTY-THREE TRILLION DOLLARS, with an “F.” But, you ask, how does that cause the price of eggs to go up?  Simply put, increased “prosperity” in consumers’ / buyers’ hands and bank accounts, puts stress on the marketplace: supply and demand.  At first, sellers are happy – more people want more of what they sell, and… every seller is also a buyer.

Demand for eggs goes up as more people feel they can afford eggs, but, more significantly, large baking companies demand more eggs than a month ago because stores are selling more of their higher-priced goods.  Egg producers need to expand production but it takes a while to do so.  Large buyers bid up the price of eggs because they are determined to produce more crème-filled pastries to meet demand, and producers will accommodate their largest customers.  Eggs go up in price for domestic buyers, too.  Soon, a new equilibrium is attained and eggs stop rising in price from their new baseline, market price, but buyers of all kinds of things are spending dollars at a value of, say, .93, not 1.

Two hundred-million buying decisions, or more, are made every day based on relative values to buyer and seller.  Prices are “driven” up as if every seller wants to be a more expensive supplier, but, in fact, most don’t: most want their value to appear higher to attract the next buyers’ ‘buy’ decision.  But the seller’s “cost of eggs” has increased and he must pay the rent from his sales; he raises his prices, usually reluctantly.  Everywhere you turn some “news” outlet is decrying “rising inflation,” when what they are talking about is “rising prices,” usually the CPI or Consumer Price Index.  If there weren’t simultaneous DE-flationary forces at work, we’d be in real trouble.

Okay, then, what is a deflationary force?  First and foremost, rising prices!  It’s a sloppy, effective and painful way to absorb the extra cash created by inflation (of the money supply.)  Government-generated inflation is done so without any connection to increased production or wealth; worse, it has no mechanism for debt destruction.  Private, or economic inflation is tied to improved production, greater efficiency and, usually LOWER prices overall, another, positive, deflationary force: increased productivity and wealth.  When “The Fed” sets ever-higher interest rates to “combat inflation,” it doesn’t put any meaningful brakes on government-generated inflation, but it does screw up economic inflation.

“Real” companies borrow money from banks when they are certain that a bigger plant, new production equipment, new delivery vehicles or better computerization, for examples, will enable the company to produce more for less, or at higher quality, or with such marked improvement that it opens new markets, or with such improved efficiency that waste is reduced and costs per unit are lowered.  The loans involved come from banks that operate, by federal regulation, on the basis of fractional reserves.  This, essentially, allows banks to lend out about SIX TIMES more than what they hold in reserves.  That is, about 86% of outstanding loans are comprised of… wait for it: AIR.  Every commercial or real-estate loan is mostly air.  But!  It’s generally fine.  Why?

“Real” loans are made to people or businesses that have the credit-worthiness that predicts the “destruction” of that new debt.  Those are what banks call “performing loans.”  Depending on the nature of the loans and the financial standing of the bank, itself, “performing loans” are counted among “assets” of the bank and fractional reserve rules can apply to them, too!  Simply stated, bank loans inflate the money supply.  But it’s not like government / Federal Reserve inflation; “real” loans include mechanisms for 1)debt destruction; 2)increased WEALTH; 3)increased productivity and economic activity; 4)rewards for smart economic risk and honest, legal, work and growth.  Smart, conservative banking is essential to healthy inflation.

The federal “system” of over-spending, over-borrowing and aversion to intelligent economics, is essential to economic weakness and political mendacity.  See the difference?

It is necessary to introduce capital – and cash – into the economy.  It’s called “liquidity.”  There has to be enough money to borrow and enough to spend, but how much?  Is there some federal agency or department that would ever add new liquidity in the right amounts and the right places?  Absolutely not!  Neither now or ever.  Free enterprise capitalism pretty-much automatically introduces enough liquidity to enable growth, PROVIDED that the government isn’t competing with its citizens to do ever-larger fractions of the spending – and borrowing – in the economy, AND that conditions are not made politically acceptable for monopolies to form and distort markets, which is where we are, now.

The FED sets rules for banks, including what the fractional reserve rate is, and what the overnight interbank lending rate of interest is.  They can chill a “too active” economy almost overnight.  Income-Tax policies can interfere with even small investment decisions.  Fannie Mae and Freddie Mac can skew the quality of the mortgage market whenever politicians decide it’s time to buy votes from certain “underserved” demographics.  That is, the government can skew normal buy-sell decision-making, hurting most while “helping” some.

Capitalism needs regulation; it’s human nature to get the most for the least if possible.  Honesty should be enforced; integrity should be enforced; quality and purity should be enforced; contracts should be clear and honest, particularly in employment, one of the areas where politicians (most of whom are economic idiots) like to meddle for votes.  Our public servants are failing to act as partners in the success, safety and comfort of citizens, which means conditions of honesty across all contracts, short and long, and across all elected and appointed offices.  Otherwise, they act as the least trustworthy manipulators of the lives of citizens for the gain of… politicians and government.

Our economy – the actions of daily life, growth and advancement – has been turned into a competition with government to survive.  We haven’t even discussed the credit-card “vig” we all must pay, now, to banking consortiums, nor the legalization of drugs.  Surely ours is a form of “Democratcy” that we should export to other countries… God forbid.

Biden, Climate, Crime, Culture, Economics, Elections, Family, Foreign Policy, Health Care, Immigration, Obama, Politics 2023, Religion, Taxation

VOTE PRUDENTLY

Leave a comment

What on Earth

Prudence wonders about whether America will resolve to solve its problems – actually stop nonsensical policies – reduce federal spending – let men be men and honor the majesty of motherhood… stuff like that.  Questions abound.  Why don’t we have a secure, tightly regulated border, all around?  That’s one to which there doesn’t seem to be a good answer.

Why have we allowed about 7 MILLION illegal entrants over the past 3 years – unexamined adults and children, with unknown backgrounds and unknown useful skills – to pour into our country IN CONCERT with criminal drug and trafficking cartels?  How do we propose to house them in a nation where housing costs are the highest in the world?  How will we educate them in schools that are becoming a black mark on our society, in how many languages, at costs per student that are the highest in the world with the lowest quality of education results?  What sort of a plan is there?  Looks like there isn’t one.

How can a country that is 33 Trillion dollars in debt invite multiple millions of illegal migrants onto our welfare rolls?  No good answer – or reason – here, either.

Americans are wondering – or should be wondering – how it is that our military is being reduced precisely when China’s military, especially their navy, is being increased at its fastest rate ever?  Why are our soldiers, airmen and sailors being weakened by critical race and gender theories as Russia, China and Iran are growing as direct threats to the United States and our allies?  For that matter, why weren’t the military leaders who engineered the stupid and dangerous abandonment of Afghanistan, fired and forced to answer for their stupidity and the preventable deaths of service members at Courts Martial?

Here’s a crucial, life-or-death question for Americans: Why did President Obama and, now, Joe Biden, fight so hard to help Iran become a nuclear power?  Keep thinking…

How can the once-best medical system in the world allow itself to be compromised by a federal government agency that is financially beholden to pharmaceutical companies, to the point of dictating treatments and even outlawing viable treatment options(!)?  How can that medical system allow licensed doctors, many who are recognized researchers, lose their licenses and positions – including having their research suppressed?  How could it?

How could so many tens… no, hundreds of thousands of needless deaths of Americans be permitted, even forced, by the rotten collusions indicated above?  How can we ignore the thousands of “sudden adult deaths” occurring among young, healthy recipients of mRNA injections?  Why are those same being pushed down to 5-year-olds?  Have we lost our minds?

We seem to have lost “America.”  To some, the “some” that wish to eliminate America from the future, there is no good in any part of the United States because of slavery, a practice our nation sacrificed horrifically to end.  The promise of freedom and individual sovereignty for which we also fought and sacrificed – a promise made to all who descended from our founding and which is enjoyed by all who wish to destroy America, now, is a promise based upon Christian sacrifice and faith in God.   There is nothing coincidental that those same wish to destroy Christianity as they tear down America.  When did we lose our courage to defend both?

Rubbing raw the memories of slavery is a process very similar to climate fear-mongering.  The abiding purpose of both movements is never solution or even resolution of those supposedly existential threats to humanity: it is only to empower centralized, political control of humanity and its various nations and economies.  Where is the American Constitution in all of this?

Lately we have taken to defunding police departments where they are MOST needed, in cities where crime has been the worst, and where normal people and commerce are being threatened to the greatest degree.  There must be a good reason to do this in the minds and hearts of those who control those funds.  Prudence cannot discern what it might be… unless, and it’s becoming less and less of a long-shot, those who advocate and promulgate those anti-police policies, are actively trying to destroy America, too.  Evidently, they believe that the hollowing out of American cities – turning them into crime-ridden enclaves, will weaken America’s ability to defend itself when the final push to turn America communist, arrives.

The economic stress of “losing” the cities will also hasten the downfall of the nation.  Cities are the engine of growth and strength; they are always attacked in war.  George Soros and, now, his son, Alexander, have targeted American cities for collapse by financing District Attorneys who are radically opposed to bail, prosecution and incarceration of criminals.  Capitalizing on the unfortunate death (not a murder, more a suicide) of George Floyd, Soros and other anti-American types in the Democrat party, fed so-called protests that mingled with brutal, destructive riots and demanded the end of policing as we knew it in cities.  Some purpose is being served by what seems completely stupid.

The United States, Canada and Mexico sit atop the richest sources of carbon-based fuels on earth.  With the right economics and politics, North America (and South America for similar reasons) could be energy-independent and wealthy, industrialized and CLEAN.  Unfortunately, Mexico is nearly controlled by criminal cartels, Canada has slid into globalist socialism, and the U. S. has fallen sway to anti-scientific “climate-change” hogwash that leads us to sacrifice both freedom and wealth – and global influence – as well as our national sovereignty.  For unfounded reasons, we can’t use the energy we own; we must buy it from hostile countries that obtain it less cleanly than we do, and ship it by the millions of tons in dirty ships.  This dumb idea makes sense to a fringe element that benefits from battery-powered vehicles, solar panels and windmills.  As with other, numerous life-changing trends and forces at work within the federal administrative state, government falsehoods are actively diverting our nation from its history and heritage.  Why do we allow this?

Lithium-ion batteries, mostly controlled by China in terms of materials and manufacture, are being forced upon a public that doesn’t want them.  Why?  Because the government-types believe we need to want them.  They don’t work well and they are toxic and dangerously combustible.  This is all to reduce “carbon,” one of the key building-blocks of life on earth.  There is a belief – an ideology – that claims that carbon-dioxide, the major product of breathing, is capable of such a massive “greenhouse effect” that it will destroy life on this planet, including raising sea levels 20 feet or more.  People motivated by their faith in this concept are unable to consider that it is probably incorrect… and they are noisier than most of us, gaining political sway.  They are forcing the switch away from our extraordinarily efficient gasoline-fueled vehicles and from the freedoms they enable.  So, we are being forced – not encouraged, FORCED – to switch to less capable and less safe modes of transportation that cost more to operate… when they do operate.  They do have slick electronics, but they are relatively useless except in very limited applications.  Why do we, the People, permit our government to batter(y) us?

Our so-called Representatives have divested the Congress of most of its responsibilities.  Article I, section 8 of the Constitution, among other financial responsibilities of the Congress, states that “the Congress shall have the power… To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures; …”  Yet the same band of worthies created the Federal Reserve in 1913 and, in stages, slipped the “Fed” into a position of financing unlimited debts on the credit of the United States.  Despite its supposed purpose of managing liquidity among banks and preventing financial crises, the Fed enables politicians to make economic promises that they generally do not understand the consequences of, knowing that there is unlimited funding available by “borrowing” from the Federal Reserve.  The Treasury issues U. S. “bonds” of various maturities and the Fed “buys” them with money it doesn’t actually have.  What could go wrong?  Socialism… socialism devolving into communism… that’s what could and is going wrong.  Why are the inheritors of the world’s greatest political and economic system allowing their nation to be stolen by socialist enemies… from inside?

The next set of presidential elections in 2024, may be our last opportunity to reverse at least SOME of the stupidity we have been borrowing for since 1963.  It will be Prudent for Americans to reaffirm their Americanism rather than their adherence to any party, and vote accordingly, and not by mail – DON’T VOTE BY MAIL!  It’s too easy to steal your vote or negate it.  Show up and vote… for America.

Crime, Culture, Economics, Elections, Politics 2023

UNCIVIL WAR

Leave a comment

The Democrats’ war on Donald Trump is revealing the nature of the Left.  It is not very different from how the Bolsheviks and the Soviet Union treated wrong-thinkers as the “Revolution” devolved into brutality and murder.  So far, at least, the Biden administration has held off from extorting confessions from those who don’t agree with Administration thinking about virtually anything.  No one has mentioned bullets in the back of the head to solve wrong-thinking problems, but locking up political opponents is doing the job.

Sadly, a lot of stupid violence took place on January 6th, 2021.  Organized protesters went to Washington with shared, poorly conceived ideas about actually taking over the Capitol, a few of whom were armed and foolishly violent.  We still don’t know how involved federal agents were in those groups, but there were many, evidently. And the FBI and others have shown their willingness to embed themselves into conspiratorial groups in order to learn about planning for future crimes.  We’ve even seen how the FBI will practically create such a group in the case of the kidnapping of Governor Gretchen Whitmer of Michigan.  There are many questionable actors who were in the crowd on January 6th, but no one has identified or questioned them.

On the other hand, many of those currently incarcerated due to January 6th events, assaulted no one, smashed nothing and did no worse than enter the Capitol through open doors.  Their treatment in jail seems to be outside of legal norms; some have yet to be charged two and a half years after the fact.  Those are they who can be considered “political” prisoners.  Having watched FBI agents storm the private homes of pro-life activists while permitting illegal demonstrations at the homes of Supreme court Justices, shows that the motivations within the FBI are political in many instances and worth questioning.  Could there have been a cadre of FBI and other agents embedded in groups that went to the Capitol intending violence?  Apparently, yes.

There are other oddities about the so-called “insurrection.”  One is that President Trump wanted to reinforce the Capitol Police with thousands of National Guard troops.  Legally, only the mayor of Washington and / or the Speaker of the House could “ask” for federal troops to function in their jurisdictions.  Both refused to do so.

Information and “intelligence” existed that indicated subversive groups were planning to create troubles on January 6th.  Trump was holding a huge rally near the White House and thousands of people would be in the city and probably attempting to approach the Capitol to protest the certification of electoral votes.  If there were a way to turn such a protest to Democratic advantage, no pair of Democrat leaders would be better positioned – or likely – to take such advantage than Pelosi and Bowser.  Having the crowds storm the Capitol, particularly in conjunction with rabble-rousers whom both knew were intending to do so, could create the perfect storm of confusion and illegality with which to smear Donald Trump and conservatives in general.  It was all too well played out for the benefit of Democrats.

Within hours, Speaker Pelosi ordered fencing with razor wire and guarded gateways to surround the Capitol complex.  Added to that “security” were thousands of National Guard troops that she treated fairly poorly, causing them to sleep in parking garages among other things.  Soon the “January Sixth” committee was formed outside of Congressional traditions and yet another impeachment of Trump was attempted to no avail.  But, the January 6th Committee continued its tightly slanted “investigation” for a year and a half, yielding mostly political claims and talking points, while copious real evidence was hidden or kept secret.  Little of value derived from the committee’s “work” although lots of fearsome claims were made about conservatives and Trump supporters.  Now we’ve learned that the “Committee” destroyed much of its recorded work – a travesty, if not multiple crimes.  Another set of tactics were developed and implemented through the Department Of Justice.

Soon, three state and two separate federal charges were concocted and fed to grand juries in New York State and City, Georgia, Florida and Washington, DC. – fed by prosecutors, a District Attorney and Attorneys General who are known to hate Donald Trump or to have backed Democrat politicians financially.  Naturally, they would set aside all biases in the matters of accusations against former President, Donald Trump, who believes that the 2020 elections were rigged against him fraudulently and that his likely victory in 2020 was “stolen” from him and the 75 Million voters who voted for him. (Wink, now.)

Trump, however, is in legal jeopardy, starting with the New York City charges brought by District Attorney, Alvin Bragg.  In order that he could “gin up” charges against Trump, a “count” against him was created for every check paid to reimburse Trump’s then-attorney, Cohen, who had created a means of payment to adult dancer, Stormy Daniels, of some $150,000.  At one point she claimed the money was to keep her from talking about a sexual encounter with Trump while he was married.  In other statements, she denied such an encounter.  Trump’s counter-argument is that Ms. Daniels had tried to extort money from Trump and that he paid her “hush” money to prevent public embarrassment.  This would naturally and automatically help him as he began his campaign to become president in 2016.  So, depending on how you look at it, paying her to keep quiet made sense on several levels, not simply political.

But Bragg is certain that the misdemeanor “crimes” of incorrect bookkeeping entries by the Trump organization were done to cover up a larger, Federal crime, of illegal campaign contributions.  That case can be made, but has virtually never been made before.  “Getting” The Donald trumps every other consideration.

Letitia James, the New York State Attorney General, ran for her office on a promise to “get Trump.”  She’s doing everything she can.  She’s cobbled together a host of charges against Trump’s companies, going back several years, claiming that properties and assets were “overvalued” to obtain loan rates and amounts that were, therefore, obtained fraudulently.  That those institutions that loaned money to Trump entities all made money and profits from dealing with Trump, makes no difference if there’s a way to damage Trump, himself.  That poorer individuals wouldn’t have been able to obtain the same terms is simply stating the nature of finance.  If it involves Trump, however, there must be a racist, homophobic, insurrectionist crime that’s prosecutable.  “Show me the man and I’ll show you the crime.”  Lavrenti Beria would be right at home in the Attorney General’s office.

Jack Smith, prosecutor of the “Documents Case,” is a different matter, and so is his case.  Trump had retained documents upon leaving the white House that were, evidently, still classified.  Some of his own statements seem to confirm that he knew some of them were problematic and still classified.  There are more than 32 felony counts filed against him and some may stick.  Trump has done his best to call Smith, himself, into question, but he is still the person who could get him convicted.  Many of the circumstances surrounding the case are unprecedented, and done for political reasons, but the facts on the ground are what they are.  The whole premise could have been – and heretofore, always have been – resolved through negotiation.  Virtually every President has retained records from office; Trump is the first to be charged criminally for doing so.  So, this case is eminently unfair, but it’s legal and the former President faces legal jeopardy as a result.

Georgia District Attorney for Fulton County, Fani Willis, in fairly obvious collusion with the federal DOJ, is attempting to strip away attorney-client privilege and executive privilege, while criminalizing opinions about a clearly questionable 2020 election process.  This is very bad legal country.  Will it lead to any state District Attorney now being able to hobble a President with conspiracy charges for speaking with advisors and attorneys?  What a mess Democrats are strewing across our judicial system.

What is it that makes Trump such an object of hatred and political fear?  Clearly, he threatens a lot of people in government and in the “industries” that survive on the largesse of government.  There are nearly 3 MILLION fairly permanent employees of the federal government.  Each has his or her own biases, beliefs and political leanings.  Most, unintentionally, some, intentionally, are part of the problem America faces: The rights and desires of the majority of Americans can barely be acknowledged, let alone become public policy, regardless of federal elections.  There exists a general resistance to significant change within the administrative morass called “the government.”  Trump intended and intends to restore power to the electorate; by default, this requires removing it from the bureaucracy.  The levers of power within the bureaucracy – what is called “The Deep State” – include numerous police and investigative agencies, most of which are populated by people who have their own, largely globalist, not nationalist, attitudes toward America.  If they deem it necessary, they will do what is being done to Donald Trump to protect their power, not ours.  Trump is the symbol, patriotic Americans are the target.