Peegee

[url]https://williamdbailey.wordpress.com/2012/07/02/we-mutually-pledge-to-each-other-our-lives-our-fortunes-and-our-sacred-honor[/url]
[url]http://www.theatlantic.com/past/politics/ecbig/gdp.htm[/url]


"The individual has always had to struggle to keep from being overwhelmed by the tribe. If you try it, you will be lonely often, and sometimes frightened. But no price is too high to pay for the privilege of owning yourself."
- Friedrich Nietzsche

“There is no worse tyranny than to force a man to pay for what he does not want merely because you think it would be good for him.”
-- Robert A. Heinlein

“[the Constitution] has either authorized such a government as we have had, or has been powerless to prevent it. In either case, it is unfit to exist.”
- Lysander Spooner

“Well first of all, tell me: Is there some society you know that doesn’t run on greed? You think Russia doesn’t run on greed? You think China doesn’t run on greed? What is greed? Of course, none of us are greedy, it’s only the other fellow who’s greedy. The world runs on individuals pursuing their separate interests. The great achievements of civilization have not come from government bureaus. Einstein didn’t construct his theory under order from a bureaucrat. Henry Ford didn’t revolutionize the automobile industry that way. In the only cases in which the masses have escaped from the kind of grinding poverty you’re talking about, the only cases in recorded history, are where they have had capitalism and largely free trade. If you want to know where the masses are worse off, worst off, it’s exactly in the kinds of societies that depart from that. So that the record of history is absolutely crystal clear, that there is no alternative way so far discovered of improving the lot of the ordinary people that can hold a candle to the productive activities that are unleashed by the free-enterprise system.”

- Milton Friedman

When the Nazis came for the communists, I remained silent; I was not a communist.
When they locked up the social democrats, I remained silent; I was not a social democrat.
When they came for the trade unionists, I did not speak out; I was not a trade unionist.
When they came for the Jews, I remained silent; I wasn’t a Jew.
When they came for me, there was no one left to speak out.

Pastor Martin Niemöller (1892-1984)

A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship.

(unsourced)

The Stoics and Epicureans held that individuals formed the State--with this difference, that the former viewed the individual as being socially inclined by nature, and the latter that he was naturally antisocial. To the Stoics, therefore, the "State of Nature" was a peaceful union; to the Epicureans it was a war of each against the other, with Society as a compelling means for a decent modus vivendi [way of living]. With the one a Society was conditioned "physei" (by nature); with the other it was "nomo" (by decree).

--Franz Oppenheimer, Preface to the 2nd American Edition of The State: Its History and Development Viewed Sociologically

"The danger to America is not Barack Obama, but a citizenry capable of entrusting a man like him with the Presidency. It will be far easier to limit and undo the follies of an Obama presidency than to restore the necessary common sense and good judgment to a depraved electorate willing to have such a man for their president. The problem is much deeper and far more serious than Mr. Obama, who is a mere symptom of what ails America. Blaming the prince of fools should not blind anyone to the vast confederacy of fools that made him their prince. The Republic can survive a Barack Obama, who is, after all, merely a fool. It is less likely to survive a multitude of fools, such as those who made him their President."

-Prager Zeitungon

All government, in its essence, is a conspiracy against the superior man: its one permanent object is to oppress him and cripple him. If it be aristocratic in organization, then it seeks to protect the man who is superior only in law against the man who is superior in fact;if it be democratic, then it seeks to protect the man who is inferior in every way against both. One of its primary functions is to regiment men by force, to make them as much alike as possible and as dependent upon one another as possible, to search out and combat originality among them. All it can see in an original idea is potential change, and hence an invasion of its prerogatives. The most dangerous man to any government is the man who is able to think things out for himself, without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane and intolerable, and so, if he is romantic, he tries to change it. And even if he is not romantic personally he is very apt to spread discontent among those who are.

- H. L. Mencken

Government, like any other organism, refuses to acquiesce in its own extinction. This refusal, of course, involves the resistance to any effort to diminish its powers and prerogatives. There has been no organized effort to keep government down since Jefferson's day. Ever since then the American people have been bolstering up its powers and giving it more and more jurisdiction over their affairs. They pay for that folly in increased taxes and diminished liberties. No government as such is ever in favor of the freedom of the individual. It invariably seeks to limit that freedom, if not by overt denial, then by seeking constantly to widen its own functions.

- H.L. Mencken

The act of balancing the budget WILL NOT get rid of the national debt regardless of who becomes/remains our President.

"The country is technically bankrupt. If you and I were in business, we would have to declare bankruptcy. Governments print money so they can get away with it. But we are insolvent and the debt will never be paid for. That’s a hard thing to accept. You can’t pay for this debt"

-Ron Paul 02/26/2010 CNN interview with Jack Cafferty

According to a study by The Cato Institute , “If one considers the unfunded liabilities of programs such as Medicare and Social Security, the true national debt could run as high as $119.5 trillion.”

Even though Ron Paul’s policies would likely put a dent in the national debt, the Committee For a Responsible Federal Budget notes that under President Paul, the national debt would still be approximately 76% of GDP. Even with $1 trillion in cuts and a balanced budget in the third year of a Paul administration, the national debt, and the accompanying interest, would still be unsustainable. But, other than Paul, every other candidate promises more unsustainable spending. Mitt Romney's proposals would actually increase the national debt to between 85% and 96% of GDP, depending on the level of new revenue his proposals could generate in addition to the new tax policies he announces.

[ed note: this post is out of date because IIRC the debt to GDP ratio is around 104% now]
[url]http://www.youtube.com/watch?v=RlgWboXV4Vo[/url]

Ron Paul is the only candidate who wants to talk about this because the current policy makers are adherents to Keynesian economic theory. This teaches massive amounts of liquidity and government spending will help support long term economic growth. The idea is that these programs will stimulate the economy and encourage employers to begin hiring again. Once the economy has improved, the large tax revenues are expected to make up for the shortfall while the Federal Reserve slowly reduces the cash supply without causing a shock to the financial system.

The problem with this kind of thinking is historical evidence shows it doesn’t work. Liquidity hasn’t created sustainable greater demand. It does not create the financial environment for long term economic growth or translate into wealth creation. In fact, it has the opposite effect. It stifles private investment and makes the economy dependent upon Federal Reserve notes.

The Federal Reserve has been increasing the supply of dollars by an average of 5.9% a year since 2002. If you add these yearly averages together, the supply has increased by over 63% and the value has decreased proportionally. These inflationary pressures are not going away either. This happened in Germany during the 1920s. Their situation was fueled by massive amounts of debt, their central bank printing huge amounts of money, which soon became worthless, resulting in hyperinflation and a stagnant economy. The situation in the US is similar in many respects. With trillions of dollars of debt, a devalued currency, shaken confidence in the financial system, the economy continues to struggle. One of the main distinctions between Germany of the 1920’s and the US today is that the US dollar is the world’s reserve currency. The US treasury market is the most liquid in the world issued by the largest economy in the world, and is therefore “less undesirable” than most other currencies. BUT, growing debt and a slow US economy, continue to devalue the dollar. While interest rates are low, interest payments on our debt stay low. But, when interest rates return to their historical average of 4-5%, the interest payment alone on our debt will quadruple, the economy will stagnate and default will be very likely. If this happens, investors will unload a variety of US based assets. This will cause the declines to become even more severe, most likely plunging the US into another hyperinflationary depression. Only this time the rest of the world will crash right along with us. No safety nets included.