Some guys named William Hauser and Jerome Slater say we have to bring back the draft to win the War on Terror. Read the article here. My stance is that throwing human bodies at the problem won’t fix it. The War on Terror is not a winnable war, and the Bush administration knew that when they started it. 9/11 gave them the excuse to expand State power on a scale not before seen, and it allowed them to put America in the stance of always fighting the bogeyman of terrorism. Perhaps if we’d had a government concerned with upholding the Constitution we wouldn’t have had an interventionist foreign policy toward the Middle East for so long, and maybe then Arabs would not have had a reason to be pissed off at us. Even to this day, the idiots in this country think we got attacked on 9/11 because the terrorists hate us for our freedoms. That’s the stupidest thing I’ve ever heard, but apparently it’s the easiest thing for people to believe.
Yes, tomorrow is the all important corronation of our new King, Ruler, Potentate, Messiah…just insert your favorite hoighty toighty word here, because it all seems to describe Barack Obama these days. The MSM is like a bunch of school girls seeing the Beatles for the first time. Oh, it’s just so grand. These people who are so head over heels for Obama don’t realize the tyranny their god will bring upon them. Today, Obama showed some of his un-American thinking when he picked up a paint roller and helped paint a house. He said, ““We can’t allow any idle hands,” he said. “Everybody’s got to be involved.” I think the Liberty Papers blog sums up my thinking on this quite well: “I don’t know about you, but the idea of the government deciding who has “idle hands” and then forcing them to “be involved” terrifies me.” Every time Obama opens his mouth, he just confirms yet again that he is a socialist and that he hates individual freedom. The hype surrounding this man is sickening and frightening at the same time. Someone who is so well loved by the people can get away with alot of tyranny before those people turn on him. Of course, by the time they turn on him he will have so much power it won’t matter what the people want. It almost doesn’t matter now.
Obama will put his hand on a Bible tomorrow and he will swear to uphold the Constitution, but he will be one of the greatest enemies of the Constitution instead. What’s worse, the House and Senate will enable him and the Supreme Court will more or less let things slide. We will get a New New Deal, but it will turn out to be a Raw Raw Deal.
Here’s my list of things the government needs to do in order to avoid another Great Depression:
1. Do nothing
That’s it. If the government does nothing, we will have a very sharp, very painful recession, but it will be relatively short, perhaps another year or two. Yes, the Big Three Auto Makers will go under and people will lose their jobs, but those production plants will be bought by someone else and the workers that are hired will be paid something close to what Honda and Toyota pay their employees. This will allow these re-emerging companies to once again be competitive and actually make money when they sell a vehicle. Yes, banks and other financial institutions will go under, more people will lose their homes, etc. However, this is what MUST happen for things to get better again.
People don’t seem to understand what a recession is to begin with. The liberals blame the conservatives and the conservatives blame the liberals, but they are both responsible. Mainstream Keynesian economists will say this is a normal business cycle, but there is nothing normal about what is happening. Recessions come about in this country because of the Federal Reserve. The Fed artificially sets interest rates to increase or decrease the supply of money. Right after 9/11 the Fed cut rates drastically, and we were all told it would be patriotic to go out and buy a car for 0% financing. It was free money, and we took advantage of it. We got really good deals on our mortgages, too. But cheap money makes people buy things they wouldn’t have bought before because it would have been out of their price range or means to do so. So what happens when everybody is up to their ears in debt and all the sudden this bad behavior begins to show consequences? Fast forward to the present day. This recession is a CORRECTION of our previous bad behavior. It must be allowed to occur in order for the economy to get back on its feet again. If the government continues to do everything in its power to “shorten” the recession, what’s left of it will last longer and a full correction will not occur, which means another correction is coming. It’s like death, you can’t put it off forever. Over on the Western Standard blog, it is noted that
“Austrian economists have been predicting precisely this economic crisis for a very long time. They’ve been bearish on housing, concerned about a looming credit crisis, and raising alarm bells about the value of the U.S. dollar (we have yet to see the massive inflation that they’ve been predicting, but I’m no longer as skeptical of their predictions as I used to be). Now they’re screaming from the rooftops about the various bailouts. They’re radical free marketeers — my sort of people — and they think the governments are making a big mistake by throwing good money at bad investments. Having predicted this crisis, it will be interesting if they will also turn out to be right about the disastrous effects of the bailouts.”
Yes, the Austrians have been warning for years that the Fed creates the Boom/Bust cycle with its monetary policy. It is just a shame that the leadership of the Fed is comprised of people who will be doing the exact opposite of what needs to be done in order to help the economy. The Federal Reserve should be abolished, and we should return to the sound money principles set forth in the Constitution.
Barack Obama has announced that he will shut down the base in Guantanamo Bay, Cuba. I didn’t vote for him, but I absolutely support him on this issue. From “Caffeinated Politics”: “It is essential with President Bush gone from the White House that we start to again nurture respect for American leadership around the world. Barack Obama as leader of the world’s superpower, can start to move in that direction by putting in place the process to close Guantanamo. It has rightfully earned us the scorn and anger from the world community.”
When the War on Terror commenced, Bush had plans for Gitmo, and they weren’t good. He needed somewhere to keep terror suspects where US law wouldn’t interfere with what “had” to be done. And of course we know how things ended up. Nobody has rights, nobody has a chance to confront their accuser, and the prisoners there can be held indefinitely without even being tried in any kind of court. It’s a good thing that Obama will be ending this. He even said one of the reasons he is doing it is because what we are doing there doesn’t follow the Constitution. That’s a rare thing to hear from a politician these days (except of course from Ron Paul). My question is this: he’s stopping the unconstitutional goings on at Gitmo, so when will he be phasing out the Federal Reserve so that we may once again have a Constitutional unit of currency that is either silver or gold and cannot be devalued? When will he be bringing all the troops home from our unconstitutional wars? When will he be phasing out Social Security, Medicare, and Welfare? I’m not holding my breath. You see, Obama is closing Gitmo because his voting base wants it closed. They’ll love him for it, and they know it’ll tick off the conservatives. Obama cares not a wit about whether or not the Constitution is followed, and in that regard, he will be the same as Bush.
Israel’s attacks on the Gaza strip may be seen by the world is somewhat necessary, but the US will reap its own consequences from this conflict. The US has long been a close ally of Israel, and we have had a part in arming Israel as well as sending billions of aid to them every year. The Muslim world knows this. Israel may be attacking Gaza, but the Muslim world is a country without borders. If you attack some of them, all of them are ticked off, and they love to play the revenge game. They know what we’ve done to support Israel, and in somehow and some way, we will be “punished” for it. None of this would befall us, of course, if we followed the foreign policy of the founding fathers: “Peace, commerce and honest friendship with all nations; entangling alliances with none.” Thomas Jefferson
We haven’t followed that advice for over a hundred years. Actually, Abraham Lincoln started it with his war against Southern Independence, and it’s been downhill ever since. We can support Israel without arming them and sending billions to them, we just have to get our government to see that.
In the past, unions served a high purpose. If no one would take care of the workers, the workers had to take care of themselves, and they did. But then the government got involved and took some freedom of choice away from employers. In effect, the government severely hampered how well the employers were able to negotiate. So now we’ve got a monster called the United Auto Workers (UAW). The average wage of someone who belongs to the UAW is about $25 more per hour than someone working for Honda, Nissan, or Toyota. That’s a huge difference, and that’s the main problem of the Big Three auto makers. They have to compete against higher quality cars that are made even cheaper than the crap they send down the line, and they have to keep their retail prices in the same ballpark as the imports. But if they do that, and they DO do that, that means they LOSE money on just about every vehicle they sell. It’s simple math. If you spend on average $25 more per worker per hour, you will not make a profit by pricing your product at the same level as the competition. It’s time to let employers decide what to pay their workers and when to fire them. With the impending failure of the Big Three, the market is telling us that the UAW needs to go, or at least it needs to reevaluate its priorities: have a job, or get paid gobs of money and then have no job. It’s their choice.
He almost had me fooled yesterday. I mean, the news I saw yesterday and last night all pointed to “orderly bankruptcy”, whatever that is. Even though that was still sort of a mystery, I was hopeful that Bush would do the right thing and let the Big Three fail, even though I knew he would be meddling to some extent. But today, Bush proved he’s against free markets. I think the core issue here is that he’s letting fear rule his decision making process. Instead of letting things happen that need to happen (or else these conditions wouldn’t exist), he’s preventing what needs to happen and ensuring that the industry will continue to lag behind the competition. The “Below the Beltway” blog quotes Peter Schiff:
“As usual, both sides have it wrong. The government should let the Big Three fail not because we no longer need an auto industry, but because we desperately do. What we do not need is the bloated, inefficient auto industry that we have today. By allowing the Big Three to fail, their capacity will be turned over to new owners who will be able to acquire the means of production at fire sale prices and hire workers at globally competitive wages. The result will be a more efficient auto industry making cars that people around the world actually want to buy at prices they can afford. Such auto makers could conceivably be profitable and could become the cornerstone of a manufacturing renaissance in the United States. In contrast, Ford, Chrysler and GM are never ending money pits that threaten to swallow a good deal of our economy.”
Why isn’t Peter Schiff our Treasury Secretary?