Stop Pulling the Wagon

I am amused at all the “hand wringing” and finger pointing about our Governments “Debt Problem”.  Whose fault is it?  How are “they” going to “fix” it?  Who is going to “pay” the debt?

Being a student of the history of money and the governments who issue that money I can tell you I am absolutely positive how this will be “fixed”.  The only real question is timing.  It is said that in email and electronic messaging the way to shout is to use all capital letters so I will shout my answer to these questions.

OUR GOVERNMENT WILL DO WHAT EVERY OTHER GOVERNMENT SINCE AT LEAST THE TIME OF THE ROMAN EMPIRE HAS DONE WHEN THEY GET INTO FINANCIAL CRISIS.  THEY WILL USE INFLATION.

It works like this.  If you owe 14 Trillion Dollars but you inflate (spelled de-value) your currency by 50% you only have to repay the equivalent of 7 1/2 Trillion Dollars.  If you deflate it by a factor of ten, then you would only have to repay the equivalent of 1.4 Trillion Dollars.  In todays world that is “chump change”.   Play with this concept a little using your own inflation factor and do the math.

If you will look at the currency note pictured above,  it was issued by the German Government in December 1922 for the amount of 1000 Marks.  In September of 1923  that same German Government overprinted  and changed the value of the note to 1,000,000 marks.  So in nine months the government changed the value of (devalued) the currency by 1000%.  This is called hyper-inflation and it destroys the value of whatever money is in the hands of citizens (often their life savings) at the time of the “re-valuation”.  Another way of doing it is simply by inflation through run-a-way interest rates which has the same impact on the value of money in circulation.

At first glance this might look appealing because a person is tempted to think “okay, my dollar bill will suddenly be worth a hunred dollars” (or whatever) but it doesn’t work that way.  Remember, Government is the one with the power to print money.  So the money you have is now worth that much less.  Think of it this way: If our own Government were to revalue the dollar by 50% your local Dollar Store would become the Two Dollar Store only you would still have the same dollars in your bank account or wallet, but now they would buy you only half as much.

Do I think we will get into a hyper-inflation scenario like Germany did following the First World War?  Probably not, but, the government will have to do something with our ever growning National Debt.  All too soon we will reach the point that it becomes ever more difficult, or impossible,  just to pay the interest on that debt in todays dollars.  Inflation will be the only option left unless we are willing to make sacrifices I don’t see the American public expressing the discipline or desire for.  If interest rates were to rise sharply, as in the Carter years of the 1970’s, then “Katie Bar The Door”.

Just my thoughts.  You don’t have to agree.  But consider the very real history behind the currency note above.

Bob Bandy

I HAVE A QUESTION. WHY IS BERNIE MADOFF IN PRISON FOR 150 YEARS WHILE 537 BERNIE MADOFF WANABE’S ARE LIVING A LIFE OF LUXURY AND INDOLENCE AT THE TAXPAYERS EXPENSE IN OUR NATIONS CAPITOL?

Supposedly ole’ Bernie is guilty of running an 80 Billion Dollar Ponzi scheme which bilked thousands of investors.  In the meantime, 435 members of the House of Representatives, 100 memers of the Senate and 2 elected members of the Administration just scammed three hundred million Americans for another 2.4 Trillion Dollars to add to the 14.3 Trillion Dollar Ponzi scheme that is our nations National Debt.

After months of finger pointing, name calling and accusations they just pulled off another big one.  Lets see, they add 2.4 Trillion to the debt while they promise to reduce deficit spending 21 Billion Dollars.

Folks, 21 Billion Dollars is equal to the amount of debt they will be adding to the deficit in the next five days!

Remember, our children and grandchildren will “inherit” the 16.7 Trillion Dollar Debt forever!  That and whatever “our Representatives” continue to add to it !

And, there is no doubt this bunch will continue to add to the total.  All so they can perpetuate themselves as power brokers in public office.

Lets see, they spend an additional 2.4 Trillion dollars over and above the amount they will take in and for that they promise to reduce deficit spending by 21 Billion.  What are they planning on doing?  Taking five spending days off in the next year?  What a sacrifice!  Heck of a deal!     

Click on the following link for a “Casey At The Bat” spoof which I include just because its funny….  We have to remember to laugh at ourselves…. No offense intended….     

Bob Bandy

IMAGINE THIS 

You are on a train that is moving down the rails at 80 miles per hour.  You have been notified that  the railway bridge is out ahead.  Suddenly you realize that the trains engineer and conductor are having an argument in the seat just behind you.  One is saying they should reduce the trains speed to 78 miles per hour before they reach the bridges location  and the other is arguing they need to reduce the trains speed to 74 miles per hour.  In this nightmare scenario you are shouting at them that they need to stop the train but they either can’t hear you or won’t listen to you.  

Now visualize this:  Our nation is racing toward a 1.6 Trillion Dollar Budget Deficit for the next fiscal year.  This will be added to the 14+ Trillion Dollar National Debt.  You hear members of Congress arguing over whether we should cut the budget by 6 Billion Dollars or 60 Billion Dollars.  This is “chump change” when compared to the 1 Trillion 600 Billion Dollars they plan to add to our childrens and grandchildrens national debt.  In this nightmare you are shouting at them to “Stop the Train” and balance the budget but they can’t hear you or won’t listen to you.  

Do they understand that history shows us governments have always “solved” fiscal mismanagement “problems” by de-valuing and inflating the money supply?  From Ancient Rome to 1920’s Germany to 20th century Zimbabwe the story has been repeated.  Hyperinflation is not a new model car.  It is fiscal disaster.  Do they care?  Can they spell Zimbabwe?  A country where they finally started printing 100 Trillion Dollar Notes because of fiscal stupidity and even those notes wouldn’t buy a loaf of bread.  It seems we are on the same “tracks” to financial ruin as a nation.

Think about it………….

Bob Bandy

The Simpsons Movie - 20th Century Fox - Matt Groening

I ask the question metaphorically as I do not advocate violence. 

Still, what does the citizenry do when government will not listen to the clear voice of the people?

Federally run and mandated Healthcare – We don’t want it!

Amnesty for illegal aliens – No! 

Porous and open borders – No!

Bailouts for poorly run Corporations and States -No!

Bankrupting our children and grandchildren with deficit spending – No!

Micro-manage every aspect of our lives – No!

Tax everything and every part of my daily life – No!

Leave me alone, get out of my way and stay out of my wallet – YES!

Are these people so self focused on their own failed ideology and so oblivious to the will of the American people?  Have they no eyes?  Have they no ears?  The American people are fast approaching the point of open rebellion.  The anger is building day by day.  Revolution is in the wind.  They have taken our America and trashed it. 

Pray that it will be only a peaceful rebellion and confined to the ballot box.                         …..Bob

I ONCE HEARD THAT IF YOU ARE UNDER THIRTY AND NOT A LIBERAL, YOU DON’T HAVE A HEART AND IF YOU ARE OVER THIRTY AND NOT A CONSERVATIVE, YOU DON’T HAVE A BRAIN.  

IN “WIZARD OF OZ” TERMS, ONE WOULD BE THE TIN MAN AND THE OTHER WOULD BE THE SCARCROW.

It is my view that neither Liberals or Conservatives are inherently and intentionally evil.  In my later years of life I have even considered myself to be something of a “Closet” Liberal.  I keep wishing that Liberal ideas would work but I have been around long enough to know that they do not.

BIG GOVERNMENT IS NOT NECESSARILY EVIL,  IT IS JUST BY NATURE HORRIBLY INEFFICENT!  THE MOST EFFECTIVE FORM OF GOVERNMENT IS LOCAL, ACCOUNTABLE AND CONCENTRATES ON DOING JUST A FEW THINGS WELL AND DOING THOSE WITHIN VERY SPECIFIC PARAMETERS AND ON A LIMITED BUDGET. 

I am thinking that we may be on the “cusp” of a very Un-Civil War as a Nation.  Not a war of guns and battles (I hope) but a War that would see our culture degenerate into “Unarmed Camps” of non-negotiable demands that are at polar opposition to one another.

THE TRUTH IS THAT NOT EVERTHING CAN BE NEGOTIATED.  I REMEMBER THAT MY FATHER TAUGHT ME THAT YOU CANNOT BE A LITTLE BIT DIS-HONEST ANYMORE THAN YOU CAN BE A LITTLE BIT PREGNANT. 

As just one example, how does a person who believes that life is sacred and begins at conception negotiate with another person who believes that it is all about a womans right to choose and its not a baby till after its born?  There is no middle ground here.  And this is only one example. 

Its sort of like being at war with an enemy who has only one non-negotiable demand.  That you and yours be dead.  Whats to negotiate? 

TRUTH IS TRUTH.  SOME THINGS ARE SIMPLY RIGHT OR WRONG.  NOT EVERYTHING CAN BE FIXED.  SO WHAT DO WE DO?          – Bob 

Whether I agree with her politically in every area or not,  here are some of the things I like about Sara Palin:

Sarah Palin articulates and lives by many of the values I not only believe in but are the foundations of my life.

Sarah Palin shares my love of country and my vision of what America can be.

Sarah Palin believes that every human life is important and has something to contibute.  She believes, as I do, that babies with Down’s Syndrome are not “throw-a-ways” and have something to bring to our world.  I have personally known several  people who have had Down’s Syndrome and all of them had loving and kind personalities.  Not a single one was a liar, a thief or a murderer.

Sarah Palin makes members of the “far left” crazy and I enjoy watching their antics!  In their fear and revulsion of what she stands for, they go to such extremes and make such silly statements that I find them entertaining.         

As I said at the beginning,  I may disagree with Sarah Palin on some issues but I love the way she stands up for her values.    – Bob