Another update on Ron Paul, voter affidavit, Tex and alternative media:

So I apologize for my long overdue update once again. Life tends to keep me busy but I’ll try and address a few key points real quickly.

Ron Paul and the battle for delegates:

Anyone keeping up with the Republican race probably knows that things are getting down to the wire now. Currently there are less then twenty states left to vote and Santorum just recently dropped out. Newt Gingrich is expected to announce is withdrawal from the race today leaving only Ron Paul and Mitt Romney. Which is funny and you likely wouldn’t know this if you were following the mainstream media who are saying that the Paul campaign is winding down. The exact opposite is actually true with Ron Paul making public appearances which are drawing thousands of people and the campaign now actively campaigning and airing ads in Texas.

First of all if you want a more accurate idea of the real delegate numbers check out the blog lemon global.


This number needs to be slightly updated but basically it puts Ron Paul at about 500 delegates now and Mitt at 600. How does this work you ask? Well basically there are two big factors. The first being that a majority of caucus states are still going through their voting process. For instance Politico ( http://www.politico.com/2012-election/delegate-tracker/ ) says that Mitt has 13 delegates, real clear politics says he has something like 10. None of these are accurate because the delegates for caucus states do not cast their vote until the Republican convention. However we do know who the delegates are supporters of and most of them are not Mitt or Santorum delegates. In the voting which has happened so far most of the delegates have ended up being Ron Paul supporters.

You see the Paul campaign learned a lot from the election in 2008 where even though the campaign failed to win the majority vote in says Nevada they still won a majority of the delegates in the caucus. So the strategy this time around has been to focus more resources on caucus states to win as many delegates as possible. This isn’t to say that there hasn’t been opposition to cheating though such as in North Dakota where the state GOP party gave voters a preselected Mitt Romney friendly list of potential delegates to vote on and presented this as their only reach choice. Which is not the way a caucus works. Sadly there have been similar problems all across the country.

Back to the original point though Ron Paul is expected or has been winning large number of delegates in caucus states such as Iowa. When Santorum was running this was expected to put him in third or second. With Santorum gone most of his delegates are now expected to vote for Ron Paul at the convention. Keep in mind none of these numbers are hard numbers but overall they are good guesses. So when the time comes we’ll see.

Now I won’t lie and pretend like the odds are not against the Paul campaign. Mitt Romney has massive donations from corrupt firms such as Goldamn Sachs (funny enough the same companies bankrolling the Obama campaign) and when you factor in the free media coverage Mitt is getting it makes this a very uphill battle. Our advantage is the massive grassroots effort which Ron Paul has on his side. Currently there are about 700 delegates left and Mitt needs 400 more to get the nomination. So the real goal now becomes to prevent Mitt from hitting the magical 400 he needs to reach the 1,144. Keep in mind this is all guess work. If Mitt can be prevented from claiming to have enough delegates by the time the GOP convention takes place then what is called a brokered convention happens where the delegates can vote for anyone they choose and this is where we can win. Because even in states which are not caucus states it has been confirmed that a majority of delegates are Ron Paul delegates. So what can you do? A few things. Spread the news. Share articles around Ron Paul, tell your friends, family, take part in the phone from home program, donate and also one or two new things I will touch upon.

For a good video of what is going on feel free to check it out here: http://www.youtube.com/watch?v=347BJLhZkE4&feature=share

If you have voted or if you are going to vote for Ron Paul or know anyone who has please direct them to this link and the sites it leads to: http://www.dailypaul.com/228436/all-ct-de-ny-pa-ri-voters-prove-your-votes-through-the-brand-new-website-wwwronpaulvotecountorg

This is a set up for voters to sign a affidavit which is legal to use in court proving you voted for Ron Paul. We need everyone signing and sharing this now. The reason why is because this can be used as proof proving the number of votes Ron Paul really received in states which have voted already and also force more fair and honest counting of votes in upcoming states. So please share.

Finally Texas is an open primary: http://www.dailypaul.com/229306/get-the-word-out-texas-is-an-open-primary-date-to-register-to-vote-by-april-30-2012-calling-the-republic-of-texas?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+dailypaul%2FFClq+%28The+Daily+Paul+-+Ron+Paul+for+President+2012%29&utm_content=FaceBook

Meaning that anyone can vote. As long as you’re a registered vote you can vote. So please get together everyone you know and vote for Ron Paul when the time comes.

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Rand Paul endorsement of Mitt Romney and Ron Paul says will not win enough delegates:

Rand Paul has officially endorsed Mitt Romney and Ron Paul has announced that he will not be able to win the nomination. This is the latest news coming out in politics for all supporters of the freedom movement and Ron Paul. With all of the success which the liberty movement as a whole has had in educating people about big government, big spending, endless wars, the federal reserve, inflation and such this has come as a very big blow to all of us. I’ll admit that even personally I’m feeling disappointed hearing this news. If you didn’t hear it Rand Paul while speaking with Sean Hannity officially endorsed Mitt Romney saying, “My father was always my first choice but now that the nomination process is over I’m proud to support Governor Romney,” and you can find the accompanying video here:

The internet was on fire from this and just about everyone Ron Paul forum, group, social media and everywhere else I knew of or was a part of had different opinions. People were asking if this could split the growing freedom movement, if Rand is a traitor, if he made a deal, did he sell us out. A lot of negative comments have been said about him with many saying that the revolution will continue on without Rand Paul. Now with this no one knows for sure why he would seemingly do this at the last moment. Sources claiming to have information from the Bilderberg a well known group made up of powerful elites in society who deal in major politics claim that a death threat, threat to Ron Paul’s life or something similar was given out which caused his son to do this.

Bilderberg Members Discuss Killing Ron Paul

Is Rand Paul Supporting Romney to Save His Dad’s Life?

Sadly we’ll likely never be able to verify for sure or not if this is true. Another blow then came when less than two days later Ron Paul himself announced that his delegate total is not enough to win him the nomination. Full details can be seen here: http://runronpaul.com/election/ron-paul-says-he-wont-have-enough-delegates-to-win-gop-nomination/ More or less it seems that he says that even with all of the delegates which the campaign has won they will number up to five hundred and not enough to win the nomination. So therefore he is conceding that while a victory is not likely that the campaign can still have an impact on the convention in Tampa, Florida to shape the changes in the Republican Party which plays in the long term goal of reshaping American politics.

So my personal thoughts… I see a lot of stuff with people asking questions such as if all delegates or most delegates are unbound why is he giving up, others say Ron Paul is not fully giving up, some say that he might be selling out or this is all too much of a coincidence and does play into something behind the scenes.

I have no idea if a death threat was made which caused this to happen or not but I wouldn’t be surprised if some kind of strong behind the scenes pressure which will never know if is happening. One needs to keep in mind that as President Paul wishes to stop all of the government printing, military industrial complex spending, bailouts, handouts, secret loans, the list goes on and so does the number of people who could potentially lose out. So yes, I do believe that something could be going on. I sincerely hope that this isn’t being done purely willingly by both Paul’s since it is coming at a terrible time. I won’t lie this is a horrible blow to the moral of all supporters as we continue through the last few primaries to try and win votes. I cannot say that I truly believe that we’ve been sold out or anything to that effect at least not yet.

Clearly the odds are no longer in our favor and I see a lot of supporters bringing up Gary Johnson everywhere saying that it is best to support Johnson, back Johnson, contribute to his money bombs and spread the word. Now don’t get me wrong I like Gary Johnson more than most politicians. Although there are claims that back in 2008 he was putting down Ron Paul which I need to look into. But he is more anti-war, anti-small government and such than most anyone else except for our man Paul. What I’m going to say at this point is that everyone has to decide for themselves how to take this announcement about endorsing Romney and not having enough delegates. Our first pick for president hasn’t actually said that he is dropping out of the race to be fair but what he said hasn’t helped us at all. At this point I myself personally will continue to do everything I can to support Ron Paul, his supporters, delegates, spread the word, etc.

I feel the best thing to do is until if and when he officially drops out of the race and until the votes have all been counted up in Tampa, Florida and the delegates all agree to make Romney the nominee that we cannot give up now. Supporters of this freedom movement have formed larger groups then ever before and the impact the Republican Party is being felt all across the country. Now the odds clearly aren’t in our favor especially since supporters, delegates, and none delegates alike will be discouraged.

But until the votes are counted I’m not going to throw in the towel. And while I’m not as sure for his son I can say that after thirty years I have a hard time believing that the Congressman would say something like without a good reason. Especially since back in 2008 he had refused to concede defeat until the very end and even in this campaign he made it clear that he plans to see things through until the end. Remember the delegates pick the nominee. Romney has the advantage but until he wins the nomination I refuse to simply accept that he will be it. If this happens and if the Congressman does not run third party then I will shift my energy to Gary Johnson.

I have nothing personal against this man but the truth is that he is not Ron Paul. Listening to him talk he does not explain all of his positions as well and he simply does not have the support base like the campaign does right now. While I do believe that the Libertarian Party has been extremely helpful in spreading the freedom movement and that Harry Browne was a personal favorite of mine who I would have voted for back during the Bush election if I were old enough. I do not believe that especially in this rigged voting system that he can truly beat the current candidates with how little people know of him. So for now I’ll keep my support with my current candidate until that is no longer an option and then I will change.

Finally the last thing to keep in mind is that at the end of the day and like I said before this is not the end. People are saying for Ron Paul to not destroy himself and only time will tell how this plays out. But as I have said before in a previous article changes in the Republican party are happening:


Even if 2012 is not the year where we make our victory for president we have had many minor victories which will lead into the bigger one. I won’t lie with any else either then a freedom minded president at the helm things will get a lot worse before they get better. But take heart in the fact that we are changing things even if it ends up taking a bit longer than we should. So this talk of Rand Paul endorsement, Ron Paul not having enough delegates, and Gary Johnson will not be the end of the freedom movement no matter the results

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Ron wins Virgin Islands, Update on Ron Paul, Kony 2012, NDAA, ACTA. Real cause of gas prices, The danger of Monsanto, Failure of the EPA, The danger of mainstream medicine:

Ron wins Virgin Islands, Update on Ron Paul, Kony 2012, NDAA, ACTA. Real cause of gas prices, The danger of Monsanto, Failure of the EPA, The danger of mainstream medicine:

Ron wins Virgin Islands:

If you haven’t heard Ron Paul won his first win in terms of popular vote in the virgin islands beating out Mitt Romney with twenty nine percent of the vote to twenty six.

Ron Paul wins popular vote in US Virgin Islands, but Romney dominates the delegates

The sad part about this though is that almost every major news media outlet declared Romney the winner. How did they do this? Well basically Romney won more delegates in the caucus then Ron Paul did for once. What’s so wrong about this is almost every single caucus which has been held so far such as Iowa where Ron Paul is expected to win the most delegates the media just went with whoever got the popular vote as the winner. The one time Ron Paul gets the popular vote and not the delegates and they do the reverse. If this isn’t media bias then I’m not sure what is. But thankfully we’re still pushing forward.

Update on Ron Paul:

I figured that an update on the Ron Paul campaign is in order. There is a lot of confusion on what is going on right now and a lot of outright lies including the media claiming that Ron Paul is losing and is winding down his campaign when the exact opposite is true. On Super Tuesday (March 6th) although Ron Paul didn’t win any states he placed second in more states then anyone else. Also there continues to be signs of widespread vote fraud in multiple states. The worst example was the Maine caucus were voting was delayed for an entire county by the state GOP who then said their votes would not count even though Ron Paul had the most support there. On top of that the state GOP also did not count votes from some towns even when people said that they did indeed vote.

It’s hard to believe that people are going to still claim that there isn’t any cheating going on even with things like this. Apparently we haven’t heard the last of it since in Washington there were reports of automated calls being made to voters telling them that the election day had been changed when it really was never changed. Despite all of this things are going well. The reason why we are doing well is now despite what people are saying in the latest polls Ron Paul does best to beat Obama next to Mitt Romney and is the only one to beat Obama in a head to head match up in some states. Although in some ways Ron Paul does better then Mitt Romney since he pushes Obama’s numbers down further then Romney does.

Something else which a lot of Mitt supporters do not wish to admit is that while Romney does well with some Republican in a lot of states he is doing very poorly with independent voters. While Ron Paul almost always does well with independents. This is very important because independents make up a larger portion of voters now then they ever have before and in order to win president you need those independent votes. If the Republican party can’t win those over then there is no way to beat Obama. But back to my original point Ron Paul isn’t really losing or going anywhere. Although in some primaries he hasn’t done as well as we would like and we’re sure that vote fraud might play a part in it. He is doing very well in caucus states where voting is handled locally instead of by the state.

Mitt Romney has lost a lot of states now which makes it so a brokered convention seems very likely. The race is already over halfway over and realistically not even Romney has won half the delegates he needs. It makes it very unlikely that anyone will win enough delegates before the GOP hold it’s national convention. If this happens and we have what is called a brokered convention then at this point the delegates can vote for anyone they choose. The reason why this will go well for us is because reports are coming in from all over the country that even in states where Ron Paul has not gotten a lot of votes that a majority of delegates getting elected are Ron Paul supporters. So this all seems to play into his official strategy. Of course only time will tell for sure what happens. But know this that we’re not losing or going anywhere.

Here is an interesting post which apparently came from a pro Santorum page:

Comment from a Santorum supporter on a pro Santorum FB page:

“I’m a supporter of Santorum, but I’m also an “anybody but Obama” vote. However as a delegate to our county convention I can tell you that the place was filled with Ron Paul supporters. They are stacking the deck for the National Convention and they will win if you other three don’t consolidate and do it ASAP! But, the problem is bigger than that. Due to a dismal interest level in the political process by voters in general, Paul has very successfully made the case to his people that they can still win by going to their conventions as delegates in mass numbers. Our guest speakers kept saying how impressive the size of our convention was-chalk that up to Paul supporters, and every one of them wanted to go on to the next level.
So, while the others are out pounding the ground for votes he has been working behind the scenes organizing his people to get to the conventions, become delegates and take the nomination from the inside. He keeps saying that he HAS a LOT of delegates. I kept wondering what on earth he was talking bout, but now I see. He could, conceivably, win with the fewest votes in the history of the country. Can HE beat Obama????” …..YES HE/WE CAN!!!


Kony 2012:

I thought I would mention this quickly. There has been a big talk about the Kony 2012 video circulating about the African warlord Kony using child soldiers. While this is indeed horrible this film is proving to be nothing more then a propaganda film. Why you ask?



Basically the information in the film is over six years old. Kony has relatively little power now and most of the resident in Uganda consider him to be a minor threat compared to what he used to be. What is even worse is that the current president of Uganda is apparently just as bad as Kony using the same tactics in abducting and using child soldiers and killing hundreds of thousands of people. The best part is the fact is that he is a dictator far worse then Kony who is supported by the US government. Basically it’s the usual game where we’re supporting a dictator who kills his own people. Locals in Uganda see the Kony 2012 film as nothing but an attempt to get an excuse for the US to invade their nation and then not leave. Sadly they are probably right since a bill has already been introduced in Congress calling for an expansion in funding and soldiers being sent to Uganda to go after Kony. It’s ironic that we’ll expend all of this energy on this man but ignore what the government of Uganda is doing to its own people.


The battle against unconstitutional bills continues. You may have heard of the NDAA a law which legalizes the military having the right to arrest and detain anyone who is “belligerent” toward the US Government. Many other bills are being challenged and battled to and prevent them from passing including an international treaty called ACTA which would allow governments for anyone signs the treaty to take down web sites in rather arbitrary moves without much due process of law. There has been a giant fight about this as group such as Demand Progress have been working hard to prevent Congress from legalizing law such as the NDAA (which sadly passed anyway). Thankfully we have other routes since multiple states are now passing laws nullifying the NDAA at the state level. But honestly this is far from over. I suggest joining groups such as Freedom Works, Bill of Rights defense committee and demand progress because these bills looking to take away our rights are not about to end anytime soon.

First NDAA, Now Enemy Expatriation Act


Real cause of gas prices:


A very interesting piece by Ben Swann one of my favorite news reporters. Basically he explains the real cause of rising gas prices. While I knew that inflation was a big part of it I didn’t realize how bad it is. The short version: In terms of buying oil with gold oil is actually cheaper now then it usually is at this time of year. Yet gas prices are going up. But why is that? If it was all supply and demand then oil prices should be up all across the board including in the price of gold. Basically oil prices are not really going up. The value of the dollar is dropping due to inflation and so is the buying power of it. Ron Paul actually pointed this out back in 2008 when no one else did and he noticed the same thing with oil prices. Another reason why I believe he is the only man running who is to be president.

The danger of Monsanto:

I haven’t blogged about them much but everyone should know about the danger of what is in our food supporters. Basically Monsanto is a company which makes GMO (genetically modified organism) food a type of fruit of vegetable which has been altered by science to behave a certain way. The problems with this are pretty numerous. The worst of which is the fact that through the force of government law Monsanto now controls ninety percent of all plants grown in American and most of the world. They do this by growing plants which cross pollinate with other small farmers. They then turn around and sue the farmers for “copyright infringement” since they have a patent on their seeds and they win! Farmers then either have to pay them a fee or start using GMO Monsanto seeds. The problem with this is that Monsanto seeds do not grow new seeds so every year you need to go back to them for more seeds. You can see the problem with this. This is just the beginning though. The level of corruption runs pretty deep including files leaked by Wikileaks showing that the FDA has purposely ignored information showing GMO food to be dangerous and even worked to to put penalties on countries who do not wish to use GMO food. The FDA has also worked to silence whistle blowers who have tried to expose Monsanto when FDA higher ups refused to release information on just how bad their food is. Studies have shown that GMO food cause organ damage in animals which consume it and now GMO plants are becoming so resistant to herbicides that Monsanto is being forced to use chemicals which are highly toxic and deadly to humans just to attempt to keep them under control. The level of danger and corruption is pretty sickening.

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Overdue for an update/pressing matters, ACTA, NDAA, Alternative information web sites/groups, alternate search engines, online money ideas:

Overdue for an update/pressing matters, ACTA, NDAA, Alternative information web sites/groups, alternate search engines, online money ideas:



Overdue for an update to the blog here and keep meaning to work on one. Just busy. So I won’t worry to much on this and just get to the most pressing things.




First of all people knew about SOPA from my black out of my blog. Well currently there is a worse item which is trying to be forced on us now called ACTA. An international treaty which would put massive censorship ability in the hand of all world governments who sign onto it. Clearly I have a lot of problems with this just like anyone else would.



This is just one of many articles which list the many dangers which ACTA poses.



There are things floating all around. One above is a petition to stop ACTA and the other gives instructions to all people in how to contact elected officials to help try and block ACTA before it’s to late.


The biggest problem with ACTA is simply the fact that to a large extent it basically allows one government to arbitrary demand that another country removes a certain web site without any real due process of law if they accuse them of wrong doing. Something which I think we can all agree is dangerous in the hands of one government. Much less multiple governments including the USA and China.





Next up is the NDAA which I am sure most people have heard about. If not the NDAA known as the National Defense Authorization Act is a law passed by congress which has vague wording which has made it legal for the US military to arrest people who are suspect of being terrorists without due process of law or trial. Naturally this is terrifying to a great number of people. Thankfully people are speaking out against this. The ability to take away the right to fair trial for everyone including American citizens is just wrong.





The best thing to do here is to sign the petitions and contact your local state representatives to urge them to co-sposner the new bill introduced by Ron Paul of Texas. The bill being one which nullifies the section of the NDAA which allows for the arrest of American citizens without trial.



Alternative information web sites/groups:


Finally I want to list good alternative web sites and groups to join to keep up o date information on what is going on. This includes:






Alternate search engines:


And finally some alternative search engines to use. A lot of people don’t know it but major search engines such as Yahoo and Google record your information and store it in their records which a lot of people find worrying. Here are some alternatives.





Online money ideas:


And my final thought. I’m always looking around for different things. Currently I’ve been looking for a good supplier of metal coins. Gold and silver to stock up a little one and also money making ideas online.

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Tent cities, Occupy Wall Street and bailouts:

So one thing I’m going to touch on briefly is something which has been growing more and more in and around America known as tent cities. What this basically are as the name implies are communities if you will of people who basically have no homes, most likely no jobs and nowhere to go. So because of this they have been forced to send up groups of tents to try and find some resemblance of normal, safe, living. It’s truly sad and shows what kind of world we live in today along with how far our country has gone from what we aspire to be. Smaller tent city’s in some areas have as little as seventy people but larger ones have hundreds of people with estimates putting people in the thousands homeless in these tent city’s now. The homeless population in America has been guessed at being well over 700,000 and I believe it could likely be much larger then that. This problem began a few years ago and has already been accelerating with the bad economy, lack of jobs, increasing prices and loss of homes. So far all news points to this getting worse as well. Things like this need to make us as Americans and the rest of the world question ourselves in where things are going and what we are doing. What makes these situations even more sad is that in many of these tent city’s the local city has been working to try and drive them off of the land, parks and other places. Just drive them away. To where? No one knows, as long as they aren’t there. It think it’s truly sad. We should look at what is becoming of the country with massive debts, all time high unemployment, along with people being homeless and think on how our approach especially when it comes to government needs to be changed. If you google or youtube tent cities you will find large amounts of information on them.





Occupy Wall Street and bailouts:


Another thing I would like to address is the Occupy Wall Street and the bailouts such as the TARP bailouts. People have asked me my opinion on Occupy Wall Street and overall I would say that their heart is in the right place but some of their motivations are misguided. Many people within Occupy Wall Street wish for a redistribution of wealth saying that the rich have to much of the country’s wealth while the poor and middle class own very little these days.


With unemployment at an all time high there is a lot to support this. The middle class is shown to be smaller then ever along with the general income for very rich versus very poor people. Along with this now more then ever more things of value are owned by the major one percent of the population.



40 Facts That Prove The Working Class Is Being Systematically Wiped Out


Read more: http://www.businessinsider.com/end-of-the-middle-class-2011-7#ixzz1covm2HNx



The Middle Class in America Is Radically Shrinking. Here Are the Stats to Prove it: http://finance.yahoo.com/tech-ticker/the-u.s.-middle-class-is-being-wiped-out-here%27s-the-stats-to-prove-it-520657.html?tickers=%5EDJI,%5EGSPC,SPY,MCD,WMT,XRT,DIA







Other things worth noting are how many people claim unemployment is even higher then the 14 million people currently which hold us at about 9%. This I can agree with although I’m not sure if it’s as high as some people say but the numbers the government tracks does not include people who have given up looking for work. So I do believe that the numbers are even worse then we realize.




Something else which is interesting to mention too is how a recent study was done which you can look up anywhere on google: http://www.forbes.com/sites/bruceupbin/2011/10/22/the-147-companies-that-control-everything/


But basically it found that about forty percent of the worlds wealth and money is influenced by only 147 companies out of the hundreds of thousands of company’s all over the world. While I won’t say that this in itself says anything for such it is interesting to keep in mind.


I think the biggest thing which the people of Occupy Wall Street are sometimes forgetting is this problem isn’t just big corporations but also big government. There in is where the problems is. Many people want to ask Obama or ask government to make the rules more fair, change around wealth or help them out. The problem with this is though is that a lot of what corporations get away with is due to big government. People want to blame it all on big business. But when you have big government passing regulations which discourage small business, giving subsidizes to big business, bailouts and secret bail outs then you can see the problem. If we had a smaller government which didn’t pick and choose big business over small ones and protected peoples rights it would be far harder for corrupt business to get government advantages. But as long as big government has the power to benefit those with money then they will do so. I think this is where they should be corrected. You could name most any business or industry and I can probably explain how the government is causing trouble there and that is something I will get to later. But basically the people are right in being frustrated. But if they want real change they need to be calling for an end to perks for big business, an end to the fed and an end to leaders like our president or current Congress who continue to ignore what is good for the people.


Something else I want to touch on is the bailouts and my thoughts on that. I’ve always been very critical of the bailouts like most people. I disliked it from when I first heard of it and spoke against it and by proxy I have always had very negative feelings for people who supported them. I’ve debated with supporters of people such as Cain and Obama about supporting things such the TARP bailouts for big banks and such. One person even showed me this clip recently as to why Cain was not wrong to support the bail outs: http://www.youtube.com/watch?v=Ol45PnAIFRU


I’ll first by saying that the bailouts were foolish and a mistake. Done with good intentions or not what was basically done was ignoring the idea of a free market. The idea in a free market is that when you create a business you are responsible for it. Both success and failure. If you fail then you must take the burden and shut it down. Competition will come in, offer a better service, take over and create new jobs. It’s a cycle which happens everyday with small business and often with bigger business too. For all of the major company’s which have been around for years there are similar ones who have gone under recently. It’s basically the nature of business and a free market. I don’t wish to see people lose their jobs but business’s do close down for many reasons. The biggest problems with the bailouts is basically that you’re taking tax payer money, taking from the rich, giving to the poor and hoping that they will save jobs. This isn’t sound policy because you’re basically rewarding a business for doing bad simply because they are to big to fail and to many jobs will be lost. In this way you also artificially try to keep places alive while other business’s might go under when they might not have if there competitor had shut down first. Overall trying to fix a market in bad shape by buying out those who you think deserve it is not a good idea and does not encourage them to do well. As far as Obama goes I have very little in the way of happiness for him since signed the bailouts. While I know that Bush was the one who got it started Obama could just have easily refused to sign it and said, “Why are giving money to these big companies. Maybe we should give it to the people instead?” Keep in mind I don’t agree with the government handing out free money but even that would have been better then giving it to large banks and such. As for Cain he shows that his understanding of economies is limited since he supported the bailouts. He claims that if he had known what they would do with the funds he would feel differently. Really it should have been obvious that the money wouldn’t really benefit the average person but all of that aside the government shouldn’t be bailing out private companies to begin with. Something which people need to understand is that governments do not create wealth or money. The only way they can get money is to tax it, borrow it or print it. But they do not create wealth in the same way a business does or people working do by offering a product or service which people want. When government spends they must get the money somewhere and usually it comes by taking it from people or borrowing or taxing it. So people should not believe that the government should be bailing out the private sector or buying things up when they don’t truly create money to do so with. Government going beyond there means is a bill which we must always end up paying back. Generally through inflation and taxes. Now don’t get me wrong it’s not like believe that government should not exist at all. But rather that it is very important for us to understand the proper role of government in our lives.

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Inflation 103: The federal reserve, Rome, true inflation, national debt

So I’ve blogged more then once about inflation, the federal reserve and such. Since then I have lost that blog so I figured that I would make a new blog about it and just finally combine everything together. There is generally speaking a lot of confusion about inflation, what inflation is, how it works and what it does. People understand that it exists along with it being responsible for the price of things going up but people do not have an exact understanding on what has caused the type of massive inflation we have today. All of us remember how our grandparents or someone similar told us, “When I was your age a large candy bar only cost me a quarter,” and now it’s a dollar. Logically we know stuff is more expensive but it is important to understand what is causing this.


The simplest way to explain inflation all relates to supply and demand really so let is take a look at this from a consumer standpoint for a product. We’ll take something very simple like a pencil for instance. Now as far as I know a pencil is very cheap in almost any part of the world, simply because a pencil is a very easy to produce item and is very common. Almost everywhere you look you can find them very easily which also makes them cheap. Now, generally speaking items go up in value when they are more rare. So just think about if there were less pencils in the world. Like say 10,000, 1000 or even just 100. Then the value of a single pencil would probably skyrocket in price. So basically with supply and demand when there is more supply then people need the value generally goes down and when there is less supply then people need the value of it will go up.


I will be getting to the point of this part shortly here but now we need to go to something else that toes into this and what is causing the massive inflation we see today. Back in the day, America like many other countries were on what we call a gold standard. A gold standard was that my money I have was backed by something of real world value. Back in the day people used what were known as Gold certificate’s ( http://en.wikipedia.org/wiki/Gold_certificate ) which was basically a form of paper money with a certain gold value to it. These certificates looked similar to the paper money we have today. What this means is that banks were supposed to hold gold equal to certificates issued and if you took your certificate which was forth fifty dollars down to the bank you should be able to trade the paper note in for fifty dollars worth of actual gold. All banks were supposed to hold gold and people personally owned and used gold as well. In this way your money was backed by something of real world value since everyone holds value to gold.


Well first of all in 1913 what was known as the Federal Reserve came into being. The Federal Reserve System ( http://en.wikipedia.org/wiki/The_Federal_Reserve ) plays an important role in our central banking system. Back in the day banks were privately owned and each one was separate from the other. But eventually it was written into law for one reason or another (which I will go over later) to have one central banking authority from which the entire money supply is issued and thus the Federal Reserve came into being. On top of this in 1933 President Franklin D.Roosevelt signed into law that the gold standard was illegal ( http://www.gold-traders.co.uk/gold-information/when-did-the-gold-standard-end.asp ) which basically made gold ownership illegal for the average person. Also everyone had to trade in their gold certificates for the federal reserve notes which we use today.


Naturally this made it so that only the government had ownership of gold and no longer had to distribute it to regular people. The US dollar has become the worlds reserve currency due to the fact that it could be traded for a real world item which was gold and the US government could buy or trade gold with other countries still. Finally in 1971 Richard Nixon made it so gold could never be traded at a fixed rate/price anymore which brought an end to the gold standard on a global scale since central banks could no longer trade or convert gold at a fixed rate.


Now finally this will all go full circle because you see under the gold standard it is clear that money had to be backed by a certain amount of real world gold. So you could never give out more money then you had gold to back it. This is no longer the case anymore. Now when we go back to our rule of supply and demand it is pretty simple. When places got more gold they could expand their supply of money. When there is more of something the value of it goes down. You’ll see where we’re going with this. Certain items of importance can of course cause fluctuations in market price as well. Oil is one obvious item. Oil is used for everything these days so when oil becomes more scarce the value of it must go up. Thus it costs more to buy and people must ask for money for good and services in return to cover the increased cost of gas and oil for them. The two things referenced above though are what I call natural inflation.


You see natural inflation is of course when something on a broad scale drives up prices or like we discussed earlier when there is more of something, including money, the value of it goes down. So logically the more money there is in circulation a little bit lower the value goes because it is more common. So far this all makes sense, right? All right, now everything will make sense.


Basically what the Federal Reserve act did was create the ability to print money which did not need to be backed by the value of gold. Instead, it was the force of law which said, “You must take payment in these notes or else.” So the value did not come from a real world item but force of law instead. When you do not have the constrain of having a real world item such as gold forcing you to limit your money supply then what is stopping you from making money? Well logically, nothing at all. So if my money does not need to be backed by gold this just means that I can make as much as I want. Which is basically what the Federal Reserve does. They practice what is known as Fractional Reserve Banking where whenever a bank or anyone needs money they can simply print it up and give it out.


Now think about it we already know that if you apply our pencil idea to money then the more money there is circulating the lower the value of it is. So basically the real cause of the inflation we deal with today is not that the price of things is going up but that the value or our money/currency is going down. By having the supply of money not just outpace demand but far outpace demand the value of the money goes down. And that is the simplest explanation as to what modern day inflation is. Our money is no longer backed by real world value, instead being backed by force of law, so whenever the Federal Reserve needs to give out more money then simply generate it or print it up. You can see the problem with having no constraint at all in creating something supposedly of value from thin air. After all just think about how much money you could have if you could create it from nothing whenever you wanted to do so.


Last but not least the federal reserve works in multiple ways and I will try to explain them to the best of my ability. It tends to get a bit complicated. The most important thing here to remember is that the fed is a private business which operates independently and is overseen (supposedly) by the government. First of all the biggest and most obvious thing is that the fed prints money giving it value out of thin air and then gives it away to big companies, other countries and foreign dictators. This is probably what we’re all familiar with when the fed will give out or loan money in large sums to large banks, car companies, etc. The fed will also take part in other things such as quantitative easing programs where it will buy up treasury bonds from the US and even debt from private companies with extremely low interests rates. It will especially buy up debt or loan money to banks so they have excess cash on hand. The basic idea is that the debt has very low interest with excess cash on hand people will buy government bonds, banks will loan money and so will private companies. This in theory should keep interests rates low and make life easier for everyone. All of this is of course done by the fed creating money out of thin air to give out weather in printing, generate via computer for loans or however they chose to do so. One can see how this an odd system because fed will buy up US treasury notes. So in effect the fed creates money, buys up debt from the treasury and then the us government owes the fed money even though they are supposed to be running the fed. Strange, isn’t it?


So here is the basics for a recap. The US was on a gold standard until 1913 when the country was taken off of it. Being on a gold standard help make the US dollar the reserve currency. On a side note some people blame the gold standard for the great depression although most experts agree that the federal reserve played a big role in causing the depression in the first place. Anyway, at 1971 the US stopped using the gold standard as a whole on a global scale which took the entire world off of it. The federal reserve does not have our money backed by real world value but instead by force of law. Whenever money is needed or they want to keep interest rates for borrowing and lending low they print up money and buy up bad debt at low interests rates. Either way every time they create money out of thin air they are creating money with no value to it and no limits. And the larger the money supply is the lower the value of it is. Interests rates have been at record lows and the federal reserve has been giving out giant amounts of cash but basically run away inflation and lack of jobs in the US along with lack of business is driving our economy down no matter what they do. So in the short, the more money you make from thin air with no limits, the less it is worth.


So you might ask why would they want to do this? Well, the idea is that by being able to create money at will the federal reserve can increase our buying power much faster then if we had to back our money with real world value and they also have exact control over our money supply. So naturally you can see the problem in one group having unlimited power to create money and control the money supply of the USA and to a large extent, the world.


A brief note there is an excellent article here on the Roman Empire and Inflation:http://mises.org/daily/3663


If you’ll notice the Romans basically practiced an early version of what we do today. Which was they had something of value gold and silver coins which everyone used. But when it became to much in the way of costs to pay for their administration and the ongoing wars they got the idea to expand the money supply by making it less and less silver and instead worthless metals which had no real value to people. They practiced this for years making it more and less silver until even reaching a point where soldiers and people working for the government or rich people used stuff such as gold for money instead because their own usual currency had lost so much value. Sometimes being worth a thousand times less then it originally was. This is basically just an early example of how inflation eventually destroys the stability of a country.


So basically there is what I would call natural inflation due to natural changes in the market and an increase in the money supply over time by people acquiring more things of value to back the money. Then there is artificial inflation which we suffer from now where the supply of the money far outpaces the demand and makes the value of the money go down. Most people agree that a vast majority of the increase of prices for things we have seen today including gold are more due the money itself losing value then the items themselves becoming more scarce. In essence we’re practicing a very similar system to what the Romans did back in the day and also what help lead them to ruin.


A topic worth touching on is also the national debt which is funny because a friend and I had a discussion about it in depth. If you’re unsure of what the debt is there is a good piece here:http://www.federalbudget.com/


But simply put the national debt is how much money the government owes. Now the two terms used as debt and deficit. Simply put the government each year (I think) or however often the government calculates how much money it will bring it through taxes and such versus how much it will spend. If it is spending how then it is making it is called a deficit and the government must borrow the money either from the federal reserve or another country to cover this shortfall. The money is borrowed in low interest which will be paid back eventually. Now a debt is normal for any country to hold because a country will be forced to borrow money and pay it back later on for any number of reasons. This here helps show the basic idea of our debt over time:http://en.wikipedia.org/wiki/History_of_the_U.S._public_debt


If you’ll notice there is a basic connection here where we maintained a much smaller debt on average until the federal reserve was created. This is when our debt mainly started to really jump up. It should also be noted that not to long before we went off of the gold standard on a world wide scale is when we began to run a deficit every year. So that is basically what the debt is. The government cannot pay its expenses so it borrows the money in the ways of treasury bonds and other such debts it owes with the promise to pay it back in the future.


My friend was explaining to me how she feels the debt is used as a scare tactic which to be honest it is used as a scare tactic a lot. But basically it is used to scare people and it is not as bad as we make it out to be. In a way I do agree with her because the debt has been used as a scare tactic by people in politics to gain points but the problem is a real one. Basically ever since the creation of the federal reserve and going away from the gold standard we have become addicted to debt. Now our paying off debt to a country is not like a regular Joe using a credit card and paying back in interest. The deal relates to however the deal was set up and usual done in chunks. You know so say we borrowed 1 million from China and then another 1 million later. The total debt we owe is 2 million but generally I believe countries pay them off separately, not all together as one large lump sum. While this is all fine though the real problem comes in the fact that we keep spending and spending and spending and borrowing more then we are able to produce in terms of money. So we borrow more and we also print more and you can see the insanity in this.


Basically you’re borrowing with no real plan on how to pay it back and on top of that every time we print money the same money we’re going to pay people back with loses some of its value. The problem is and things like this relate to out credit rating being downgraded for instance then eventually no one will want our money due to inflation and no one will want to loan us or the government money because they do not feel it is a safe investment in which they will get paid back. Our national debt has spiraled out of control once averaging only in the millions to over 14 trillion now and climbing. The problems are a lot of problems coming together but at the heart of all of this is our printing of money.


The federal reserve has been cited for doing multiple things wrong including losing 9 trillion in dollarshttp://www.dailymarkets.com/economy/2009/05/14/federal-reserve-cannot-account-for-9-trillion/and loaning out 16 trillion without Congress having known about it, http://www.unelected.org/audit-of-the-federal-reserve-reveals-16-trillion-in-secret-bailouts


A final thought some people might think I am wrong here and say that Bill Clinton balanced the budget and paid off the national debt. This however is not true. There is a good article here:http://www.craigsteiner.us/articles/16


The long and short of it is basically that Clinton paid down the public debt while increasing government debt. So overall debt increased during his time in office. Just something to keep in mind.


S all of this together shows us the problems we face with our run away inflation and that going on a stable currency which cannot be manipulated is our best way to get back to financial freedom.

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