Smoke and Mirrors

Posted by Jolly on January 29, 2012

With all the “rhetoric” from the talking heads on cutting spending it really makes you wonder, if our government were a business, would it be able to find investors to build the business?  I suppose the question is pointless since we are forced to invest in our government’s failed business model through taxation and inflation.  Inflation being an invisible tax we all pay when our financial savvy Federal Reserve prints money from thin air thereby devaluing the dollar and our purchasing power.

We can argue until we are blue in the face about how proposed cuts in the military budget will effect our national defense, but FU would like to end the bickering and propose a solution.  The question is where do you cut and still preserve our ability to defend our nation.  Cutting back on military spending becomes a very emotional issue for most of us because we are all patriots who feel it's better to over spend on national defense and be overly prepared then under spend and lose the War.

The biggest threat to our nations sovereignty is the inflation of the dollar through our "drunk sailor" like spending fueled by our Federal Reserve.  If you listen to our highly educated bankers who run the Fed, they will tell you that inflation is not a big concern right now.  They don't even consider commodity prices or the rising cost of college in their figures.  WTFO?  It's mathematically impossible to not have inflation when you print three and four trillion dollars of worthless paper backed by nothing in order to bail out financial institutions and sustain the welfare state with money we don't have.  Thomas Jefferson warned us that a Central Bank is more of a threat to our nations sovereignty than a standing Army.  I think it's pretty clear he was right.

Most Americans are really confused about Inflation and what it really means. Inflation is not the cost of goods and services going up, it's the value of the dollar going down.  The dollar is devalued when our very smart "private bankers" at the Federal Reserve decide to print more fiat money (fiat means backed by nothing, as opposed to real money backed by Gold) in order to fuel deficit spending.  They also manipulate the free market by controlling interest rates making it easy to borrow money.  This fuels even more debt on the part of John Q Public when money is so cheap to borrow.  Make no mistake; Inflation is a tax on each on every one of us.  It's the reason why the cost of a college education has skyrocketed over the past 20 years.  

But where does FU propose we slash spending other than our military?  Let's see, where to cut....hmmmm.  One area of our governments spending that I think most of us are on the same page is our failed Department of Education.  I have two kids in college as we speak and can tell you it’s unfreaking believable how much these Universities think a undergraduate degree is worth.  The Government is willing to loan whatever funds a student needs to attend a university regardless of whether one can pay it back or not.  Now that our Government has taken full control of the college loan program (though the health care bill), it’s probably the next great bubble we will deal with going forward.  The colleges know full well that the government will loan whatever they ask, so why not continue to jack the cost up each year. 

What ever happened to the free market?  Why can't private lending institutions loan money on a competitive basis to only the best students who show they will actually be able to pay the loan back when they enter the work force?  Why does every kid have to go to college?  I don't have answers for all these questions, but I would bet all the Gold I own if there was a limited amount of funds available for a college education, most Universities would have to become competitive or close their doors.

Eventually the music will stop and the next bubble will burst rendering all these debates by our do nothing congress meaningless.  I found a video that's quick and explains in simple terms how fiat currancy is destroying the value of our dollar.  

Now if you really want to get to the root cause of the problem, we would END THE FEDERAL RESERVE, return to sound money, and allow the free market to dictate what things are really worth not some invisible group of dishonest bankers stealing money from all of us through inflation.  If you are still looking through a pair rose colored glasses after watching this, enjoy the smoke and mirrors while it lasts and hang on for the next crash.

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