D4L UPDATE, November 9th, 2011
by Chuck Donovan
During an interview last week, Fox News reporter Juan Williams scoffed when Ron Paul talked about the danger of inflation. Mr. Williams dismissed the idea that the current rate is higher than what the government reports, and shrugged off a 3.5% inflation rate as insignificant.
I want you to imagine I drop by your house with a bulldozer and knock your house down. The damage I did will be immediately obvious. Now imagine I drop by your house and politely knock on your door. We visit for a while, exchange pleasantries, and maybe we have coffee. Then I tell you not to mind me while I take a hammer to the side of your house and give it a few hard hits. The next day I drop by and politely visit again. This time on the way out I use my hammer to take a brick out of your house, or maybe a couple of shingles. I continue to visit along with my hammer and just take out one little piece of your house with each visit. If you have the time and resources you might be able to keep up with me as I do this. Your house may show little evidence of my hammering, but without you working to repair my actions your house will eventually show substantial damage. Each hammer strike on your house is repairable, but only with extra work you are going to have to do.
We all have a good idea how damaging big inflation is. But what Mr. Williams doesn’t seem to understand is that low inflation rates are like my hammer. They cause economic damage. They force you to work harder. They damage your ability to maintain your current lifestyle or to get ahead. With each hammer blow of “small” inflation, your buying power is set back. The dollars in your pocket incrementally buy less of what they could have purchased the day before.
Even if our current inflation rate really was only 3.5%, you still need to understand you are being directly damaged by the monetary policy that allows inflation.
– The Robert Murphy debate challenge against Paul Krugman is seeking to gather $100,000 in pledges to the Fresh Food Program, a food bank in New York City. They are currently up to $70,645. Visit the website and make a pledge so that Austrian Economist and voluntary exchange advocate Robert Murphy can publically debate Nobel Laureate, Keynesian Economist, and coercive central planner, Paul Krugman. Your credit card will not get billed until Krugman actually debates.
NEW THIS WEEK
– The Dodd Frank Bill hit me personally last week. My wife is a German citizen. She worked for years in Germany before she moved here and married me. She had some savings in a German bank which we have dutifully been reporting every year to the IRS. Last week her German bank informed her that because of the new reporting requirements, they have decided not to manage accounts for clients living in the United States. I’ll let you guess just how upsetting this is to us. I can only quote Frederic Bastiat, a man who was severely criticized by Karl Marx. (That is my way of saying pay a little more attention to Bastiat and a lot less to Marx.) “They will come to learn in the end, at their own expense, that it is better to endure competition for rich customers than to be invested with monopoly over impoverished customers.”
– Johnny Isakson again plans to use your tax dollars to pick winners and losers.
- The “HOME” Act, something Mr. Isakson has been spending his limited time and resources to champion, is another attempt for the central government to prop up the real estate market despite massive failure after failure of their previous interventions.
- The taxpayers lose again, and Johnny’s buddies in real estate will again.
- The government wins more power over business, and private business loses again.
- The government wins more unconstitutional power again, and your civil liberties and the Bill of Rights lose yet again.
- Unfortunately Congressman Tom Graves has decided to spend his time and political capital supporting the same bill. What these gentlemen don’t seem to want to understand is that government should not be in the loan business.
- Isakson and Graves should not be working on this. While not working to reign in out of control government and stopping the growth of our shocking national debt, they should be working to shut down Fanny and Freddie, and the Fed. Shame on them for getting it wrong yet again.
– For 2010, Isakson received a score of 96% from the Council for Citizens Against Government Waste.
- Keep in mind that in 2010, I was Georgia’s only U.S. Senate candidate to sign the CAGW “No Pork Pledge”.
- The National Taxpayers Union scored Isakson with a 90% in 2009 and 96% in 2010.
- However, his average during 6 years as a Congressman was 61.7%. His average as Senator, from 2005 to 2008 was – 71.25%.
- So basically as long as there is a Democrat in the White House we may rely upon “fiscally responsible” Republicans like Isakson to actually be fiscally responsible.
- By comparison, Ron Paul’s Average for 13 years was 88.6%.
- Jim Demint’s average as Senator – 92.6%.
- The REPUBLICAN PARTY from 1999 to 2008 averaged a sad little 68%.
I’m not sure what kind of a child left behind you have to be, but where I went to school, those were called failing grades.
Johnny Isakson and other posers offer themselves up at taxpayer champions. In reality, they are just pork-barrel champions.
RECOMMENDED INFORMATION OF THE WEEK
- Skepticism and Climate Science, from the Cato Institute
- Penn Jillette’s Cato Institute interview, Lying in Service to Truth
- The Real Newt Gingrich – A thorough discussion of his record beginning with accurate predictions that were made in 1996.
- The Online Library of Liberty, A project of the liberty fund, dedicated “to encourage the study of the ideal of a society of free and responsible individuals”
QUOTES OF THE WEEK
– “The state is the great fictitious entity by which everyone seeks to live at the expense of everyone else.” – Frederic Bastiat
– “The progress of freedom depends more upon the maintenance of peace, the spread of commerce, and the diffusion of education, than upon the labors of cabinets and foreign offices.” – Richard Cobden