I would point out, too, that the U.S. dollar has lost 95% of its purchasing power since 1913. And the U.S. dollar is among the best currencies of the last hundred years. That says something about paper currencies, doesn’t it?
This points out why if we keep printing more paper money, we will have hyper inflation and our economy will be ruined. Inflation is already growing at an increasing rate.
Friday, February 18, 2011
Tuesday, February 15, 2011
What can we learn from the riots in Egypt?
What can we learn from the events in Egypt? We can learn 2 things from these riots.
One is that we are partly responsible for the riots. One of the main causes of the riots was the huge increase in the price of food which can be traced to the Fed's inflationary monetary policy. The CRB food index shows increases in food price in the past year of up to 36%. When people are hungry they riot.
The dollar is at the center of the international monetary system. When the value of the dollar drops, the price of food goes up. While our consumer price index isn't really effected by food prices, many people throughout the world suffer because of increased costs of food.
Our monetary policy is not only ineffective in the United States, but it is also causing resentment against the U.S. Radicals are taking advantage of this situation by promising food and shelter for all.
The Fed's inflationary monetary policy is failing here in the U.S. and puts America's influence in the world at risk.
The Fed has failed at doing the job that it was created to do. We have had too many recessions and 2 major depressions since the Fed was created. It is time to eliminate the Fed.
The second thing we can learn is that the people in government are not any better than the rest of us when they try to anticipate the future. No one was able to forecast what happened in Egypt. This just shows why socialism fails and capitalism succeeds. There isn't any federal government that can regulate the economy. When the government tries, it will eventually fail.
When you depend on the government to control everything, you are saying that the government knows more than the private section and can foresee and avoid financial crisis like the one we are in now.
Of course, the government will blame someone else, but it is only that the government cannot control the future. As a result, the government's promise that it can prevent future crises actually has the opposite effect. The government acts when it shouldn't and causes more problems.
The market may not be able to control problems, but the problems are not increased with bailouts which only postpones and increases the problem. The market allows bad decisions to fail and it corrects itself as quickly and painlessly as possible.
One is that we are partly responsible for the riots. One of the main causes of the riots was the huge increase in the price of food which can be traced to the Fed's inflationary monetary policy. The CRB food index shows increases in food price in the past year of up to 36%. When people are hungry they riot.
The dollar is at the center of the international monetary system. When the value of the dollar drops, the price of food goes up. While our consumer price index isn't really effected by food prices, many people throughout the world suffer because of increased costs of food.
Our monetary policy is not only ineffective in the United States, but it is also causing resentment against the U.S. Radicals are taking advantage of this situation by promising food and shelter for all.
The Fed's inflationary monetary policy is failing here in the U.S. and puts America's influence in the world at risk.
The Fed has failed at doing the job that it was created to do. We have had too many recessions and 2 major depressions since the Fed was created. It is time to eliminate the Fed.
The second thing we can learn is that the people in government are not any better than the rest of us when they try to anticipate the future. No one was able to forecast what happened in Egypt. This just shows why socialism fails and capitalism succeeds. There isn't any federal government that can regulate the economy. When the government tries, it will eventually fail.
When you depend on the government to control everything, you are saying that the government knows more than the private section and can foresee and avoid financial crisis like the one we are in now.
Of course, the government will blame someone else, but it is only that the government cannot control the future. As a result, the government's promise that it can prevent future crises actually has the opposite effect. The government acts when it shouldn't and causes more problems.
The market may not be able to control problems, but the problems are not increased with bailouts which only postpones and increases the problem. The market allows bad decisions to fail and it corrects itself as quickly and painlessly as possible.
Thursday, February 3, 2011
Inflation, Food price, and the Federal Reserve
Many years ago, Federal Reserve Chairmen tried to protect the dollar's purchasing power. Many decades ago, they didn't even exist. America used silver and gold to protect our purchasing power.
Ben Bernanke, the current Federal Reserve Chairmen, seems to believe that a rising stock market will produce rising employment. However, by printing more money and increasing the United States debt, he is also increasing inflation.
When inflation causes prices to increase, especially food prices, civil unrest occurs. Fiat money loses its value and it becomes worthless. People will want food and tangible assets.
However, for a short period, Ben Bernanke will have achieved his objective of a rising stock market.
Then the economy and the stock market will collapse.
We must stop printing money and spending money that we do not have.
Ben Bernanke, the current Federal Reserve Chairmen, seems to believe that a rising stock market will produce rising employment. However, by printing more money and increasing the United States debt, he is also increasing inflation.
When inflation causes prices to increase, especially food prices, civil unrest occurs. Fiat money loses its value and it becomes worthless. People will want food and tangible assets.
However, for a short period, Ben Bernanke will have achieved his objective of a rising stock market.
Then the economy and the stock market will collapse.
We must stop printing money and spending money that we do not have.
Why are people rioting in Eygpt?
The media says the the riots are political, but the real reason behind the riots is food price inflation.
It was no coincidence that the protests across North Africa were triggered by a Tunisian fruit vendor who was protesting against police confiscation of fruit and vegetables he was trying to sell on the street.
The United Nations reports the price of cereals rose 39% last year. The price of oils and fats, meanwhile, rose 55%.
All staples, like bread, beans and rice. for Egypt’s 80 million people are in critically short supply. When people are hungry, rioting is sure to follow.
When you consider that we are using more biofuels, that the world's population is increasing, that we are converting farmland into cities, and that we are printing more fiat money to put into circulation, food prices will continue to escalate.
It is not a surprise that there is unrest in the world.
The government must stop spending money that it doesn't have. It must balance the budget without raising taxes.
It was no coincidence that the protests across North Africa were triggered by a Tunisian fruit vendor who was protesting against police confiscation of fruit and vegetables he was trying to sell on the street.
The United Nations reports the price of cereals rose 39% last year. The price of oils and fats, meanwhile, rose 55%.
All staples, like bread, beans and rice. for Egypt’s 80 million people are in critically short supply. When people are hungry, rioting is sure to follow.
When you consider that we are using more biofuels, that the world's population is increasing, that we are converting farmland into cities, and that we are printing more fiat money to put into circulation, food prices will continue to escalate.
It is not a surprise that there is unrest in the world.
The government must stop spending money that it doesn't have. It must balance the budget without raising taxes.
Nevada's liberals acknowledge that tax increases have negative consequences.
This post by the NPRI states that
In trying to condemn Governor Sandoval, the liberals are saying that ending a subsidy
is a tax increase. However, ending a subsidy isn't a tax increase — ending a subsidy is ending a subsidy.
That is wby Senate Majority Leader Steven Horsford, D-Las Vegas, said that Sandoval’s suggestion that the university raise tuition "is shifting the problem to others, rather than owning it and dealing with it straight on.”
Every tax, subsidy, and bailout is money taken from others. on average, working men and women have to work 6 months out of the year to pay all their taxes. Can we really afford more taxes? Every tax increase forces more people to live below the poverty level. We have more people living below the poverty level then ever before.
Has welfare really helped?
We've finally achieved bi-partisan consensus — tax increases hurt people.
In trying to condemn Governor Sandoval, the liberals are saying that ending a subsidy
is a tax increase. However, ending a subsidy isn't a tax increase — ending a subsidy is ending a subsidy.
That is wby Senate Majority Leader Steven Horsford, D-Las Vegas, said that Sandoval’s suggestion that the university raise tuition "is shifting the problem to others, rather than owning it and dealing with it straight on.”
Every tax, subsidy, and bailout is money taken from others. on average, working men and women have to work 6 months out of the year to pay all their taxes. Can we really afford more taxes? Every tax increase forces more people to live below the poverty level. We have more people living below the poverty level then ever before.
Has welfare really helped?
Thursday, January 20, 2011
Useless rhetoric isn't solving poverty problem
In response to this letter in the Sun, I sent this letter to the editor.
In his letter about solving the poverty problem, Bruce Carper asks for solutions. He points out the poverty is obviously on the rise. I suggest that there are 3 major reasons for the increase.
One is that welfare isn’t working because it encourages people to live off the government instead of encouraging them to improve themselves so that they are more qualified to be hired. The program should require welfare recipients to participate in training or learning programs so that they become qualified to get a job. Another idea would be to put a limit on how long you can receive welfare. For instance, allow 5 years of welfare for a person’s entire life. Then if they are on welfare for 2 years, they would still be able to get 3 more years welfare should another unfortunate event occur.
Secondly, consider the effect of taxes on the need for jobs. In 1950, one could graduate from high school, get an average job, and support a family. Now, it takes 2 people working at an average job to support a family. The main reason is that taxes have almost doubled. Therefore, it takes 2 jobs to support a family. If one job could support a family like in 1950, we wouldn’t need as many jobs. Unemployment might still be high, but less families would be homeless and starving. Less people on assistance would reduce the costs of assistance and require less taxes.
The final major reason for increased poverty is the government regulations and fees on businesses. Here in Nevada, the unemployment tax paid by businesses just went up and they are considering another increase near the end of the year. Do you really think that businesses are going to be thinking of hiring more people when their cost of hiring just went up?
Many unemployed people could start a business to earn some money, but it is too expensive and time consuming to get the business license and complete all the red tape. For instance, a barber could cut hair in his home, but it would be illegal. A house painter could paint homes, but it would be illegal.
By cutting regulations, red tape, and fees, more businesses would open or move to Nevada to help reduce the unemployment problem.
These are just a few suggestions of how to how the less fortunate improve their standard of life.
Wednesday, January 19, 2011
Report: Nevada’s financial position ‘precarious’
This report by the NPRI points out how Nevada legislators have been ignoring state law. This is a problem at all levels of government.
This article states
We have to elect conscientious legislators and then hold them responsible for following our laws. It is time for a strong third party.
This article states
The Chicago-based Institute for Truth in Accounting today called the financial position of the State of Nevada "precarious" and said past Silver State governors and legislatures had evaded the state's balanced-budget law.It is not only our state that is in trouble. Our country is over 14 trillion dollars in debt because it spends more than it receives in income. It doesn't make any difference if the Republicans are in control or the Democrats are in control, they both spend our money.
"If governors and legislatures had truly balanced the state's budget, no taxpayer's financial burden would exist," said Sheila Weinberg, founder and CEO of the Institute. "A state budget is not balanced if past costs, including those for employees' retirement benefits, are pushed into the future."
We have to elect conscientious legislators and then hold them responsible for following our laws. It is time for a strong third party.
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