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Making a Recession Great

This is from Ron Paul’s weekly Texas Straight Talk column, it’s accurate and timely and deserves to be widely read:

Making a Recession Great

House Democrats recently adopted a budget with massive tax hikes, many of which are directed at those Americans who can least afford them. By allowing the Bush tax cuts to expire in 2010, this budget will raise income taxes not only on those in the highest income brackets, but raises the lowest bracket from 10% to 15% as well. Estates would again be taxed at 55%. The child tax credit would drop from $1000 to $500. Senior citizens relying on investment income would be hurt by increases in dividend and capital gains taxes. It’s not just that the Democrats want to raises taxes on the rich. They want to raises taxes on everybody.

The problem is, policing the world is expensive, and if elected officials insist upon continuing to fund our current foreign policy, the money has to come from somewhere. The wars in Iraq and Afghanistan have already cost us over $1 trillion. The Democrats’ budget gives the President all the funding he needs for his foreign policy, so one wonders how serious they ever were about ending the war. While Democrats propose to tax and spend, many Republicans aim to borrow and spend, which hurts the taxpayer just as much in the long run.

Supporting a welfare state is expensive as well. Over half of our budget goes to mandatory entitlements. The total cost of government now eats up over half of our national income, as calculated by Americans for Tax Reform, and government is growing at an unprecedented rate. Our current financial situation is completely untenable, and the worst part is, as government is becoming more and more voracious, the economy is shrinking.

The bottom line is that Washington has a serious spending addiction. While both parties debate how to raise the revenue, both parties seem happy to spend over $3 trillion of your money in various ways. While some in Washington criticize the war in Iraq, very few are criticizing the interventionist mindset that got us into the war in the first place. Many so-called “Iraq War critics,” criticize this administration rather than truly opposing the decades old policies that led to war. They claim they will eventually get the troops out of Iraq, but the danger is that they simply plan to move them around to other countries, not bring them home. The American people want peace. Minding our own business is the best way to achieve it. Not only is it also a whole lot cheaper, but free trade and friendship with other countries benefits all involved.

This spending spree is exactly the wrong policy for an economy on the brink of recession. History has shown that all empires eventually crumble under a worthless currency and with an exhausted military. Since too many of our nation’s leaders haven’t taken the time to learn from history, we are seeing mistakes repeated through recently enacted policies such as the new House budget.

This article by Lee Rogers is very good as well and sums up the current state of the economy:

The Federal Reserve is Destroying America

It is incredible to see the rampant devaluation of the U.S. Dollar. The Federal Reserve just hours ago made a rare cut of 25 basis points during the weekend which will cause even more inflation. Gold immediately moved up $20 an ounce and the U.S. Dollar Index plunged under 71 in international trading. If this type of market activity continues the U.S. Dollar will have no value in a few months. While it is probably unlikely that we will see a hyper-inflationary collapse of the U.S. Dollar within the next few months, these policies are entirely unsustainable. If the Federal Reserve does not move to defend the value of the U.S. Dollar we will eventually see a hyper-inflationary collapse and worldwide financial turmoil. This view is also shared by other well respected financial analysts. Peter Schiff recently raised concerns about a hyper-inflationary collapse of the U.S. Dollar, Robert Reich a former Clinton cabinet member believes we are facing a depression and Alan Greenspan the man who caused this whole mess wrote in the Financial Times stating that we are facing the worst financial crisis since World War II. What’s amazing is that the Federal Reserve isn’t even trying to protect the U.S. Dollar because all they care about is saving the power of their private banking cartel. They don’t care about the U.S. Dollar nor do they care about the country itself. They are destroying this country through their actions and there needs to be an investigation into the controllers of this bank. Read the rest here.

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3 Responses

  1. Ok. I am terrified. Having two children and not knowing what all of this will do. I have been trying to prepare but the economy is failing faster than I can buy ammo and canned goods.

    We want to leave the US but we have no idea where to go. Can anyone advise? I love this country. I grew up in the mountains and on the rolling farms. Now, I cry thinking of leaving but in my situation, I feel it is best. I want somewhere with fresh air and water. Space for my kids to grow and run outside. Peace.

    I have looked at micro nations or buying and Island. I am open to anything. I prefer someplace with other peaceful people.

    Any advice is greatly appreciated.

    Lime

  2. I sympathize with what you are saying and feel very much the same way. I wish I had a good answer for you but I really don’t. I have heard some people mention places like Costa Rica or certain Pacific Islands as desirable possibilities for relocation.

    Relocating to those places is not a realistic option for most people. It seems to me that the next best thing would be to get away from major population centers and to areas where you can be part of a community through family, church, friends, etc. that will support each other if things get tough.

    If you go to worldaffairsbrief.com you can find a book called “Strategic Relocations” by Joel Skousen that addresses this topic. There are many other such books as well.

    These are just a few thoughts, if you are serious about this please do your own research on the matter. I would just add though that it is important to keep things in perspective and not get panicked or upset. We should all be making preparations for an uncertain future, it is a wise thing to do. Just approach it in a calm, moderate and reasonable way and keep hoping for the best while preparing for the worst. I don’t think it’s time to “head for the hills” just yet, although that day may eventually come.

  3. You could check out http://www.freestateproject.org/
    however I agree it is time to prepare (well, past time) and to be informed, not to “head for the hills”.

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