Two if by Sea

Texas Blinks

2011-05-29T16:42:00.000-07:00

It went largely unnoticed by the so-called mainstream media, but a Constitutional showdown of epic proportions almost occurred in Texas this week. HB 1937, which passed the Texas House 138-0 before being stopped in the Senate, and would have given state law enforcement officers the ability to arrest TSA agents for touching the genitals of would-be flyers without reasonable suspicion that an individual might be hiding something in their crotch. The idea that a state would interpose itself between its citizens and an overreaching Federal government is nothing new. However, in an era where an apathetic American public, and equally apathetic state governments, have looked the other way time and time again while power is centralized in Washington DC, United States Attorney John E. Murphy showed just how easy it is for the Federal Government to intimidate any state wishing to exercise its sovereignty. Just before the bill was to be brought to the floor in the Senate, Mr. Murphy sent a letter to Texas lawmakers threatening to shutdown all flights to and from Texas should the bill pass. That was all it took. Support immediately evaporated and the bill was pulled from the floor. Having just visited Texas, I was impressed with the level of pride Texans, at least superficially, have in their state. It is not uncommon to see state flags flying where one would normally see the stars and stripes. However, the Federal Government last week showed just how little bite is left to back up the "don't mess with Texas" bark.

In case you missed it, here is a replay of the showdown between Austin and Washington:

Texas University makes $1 billion dollar bet against the dollar

2011-04-16T22:00:00.000-07:00

If you watch CNBC or read the New York Times, you probably know that gold is still largely considered an investment vehicle for whack jobs and conspiracy theorists by the so-called mainstream media. Still, gold's relentless climb in the face of a dollar that is under constant attack from Helicopter Ben Bernanke and his merry gang of money printers has not gone unnoticed by the University of Texas. The university, which manages almost $20 billion worth of assets, recently upped its gold position to 6,643 bars bringing its total position in the yellow metal to almost $1 billion at today's prices. This sobering news out of Texas, along with a dollar that is making new lows almost every week, should serve as a wake up call for the millions of Americans who are still following investment guru Michael Moore's strategy of hoarding Federal Reserve Notes.

Going to war without Congressional approval used to be an impeachable offense

2011-03-23T23:06:00.000-07:00

Just ask Joe Biden. Before Joe was Vice President, he used to believe that if George Bush were to attack Iran, it would be grounds for immediate impeachment. He was chairman of the Senate Judiciary Committee, taught separation of powers in Constitutional law, convened a group of Constitutional experts to study the subject in 2007, and concluded that:

The President has no Constitutional authority to take this nation to war against a country of 70 million people [Iran] unless we're attacked, or unless there is proof we are about to be attacked. And if he does...I will move to impeach him.

Barack Obama used to agree with his good buddy Biden:

The President does not have power under the Constitution to unilaterally authorize a military attack in a situation that does not involve stopping an actual or imminent threat to the nation.

So what has changed since 2007? Maybe Obama and Biden believe that UN approval of a war act supersedes Congressional approval? Maybe they have secret intelligence that Libyan troops are massing on our borders? Or maybe they realize that the legislative branch of our government has surrendered so much of their power to the executive branch over the years that they can thumb their noses at Congress with impunity? My guess is it's the later.

War Number 3

2011-03-20T00:07:00.000-07:00

I can hardly believe it. A 1.6 trillion dollar deficit at home. Two wars in the Middle East. And now the Barack Obama is launching cruise missiles into Libya. How much will this cost? What is the end game? Where is the Congressional approval? Are we declaring war on Libya? Who is going to pay for this? What gives us the moral authority? Will the anti-war left ignore this just like they ignored Obama's Afghanistan escalation? Who are we fighting to support? Brace yourself, this is going to be a mess.

Robert M. Groves has a lot of Nerve

2010-03-30T01:06:00.000-07:00

For months Groves has been inundating Americans with advertisements from the US Census Bureau directing them to fill out their census forms and return them. He tells us that without accurate census data there may not be enough hospitals, roads, or schools. He hails the census as way "to empower the people over their government, instead of the other way around". Former Census Bureau Director Kenneth Prewitt, however, is more honest in his assessment that the Census is used for the "planning of our economy...and of our social services needs, and so forth." He continues, "In fact, every question plays some key role in a public program or a regulatory activity." If you are like me, this sort of double talk may leave you scratching your head. On one hand, we have Groves telling us that responding to the Census "empowers" us over our government. On the other hand, we have Prewitt telling us that the information gathered by the census will be used to divvy up entitlements and create new regulations to restrict our activities. That doesn't sound very "empowering" to me.

Unfortunately for Groves (and fortunately for the American people), the Constitution does not provide a census for any of these reasons. Article I Section 2 makes no mention of hospitals, roads, schools, entitlements, or increased regulation. A Census is required ONLY for the purpose of apportioning representatives and making sure taxes are evenly distributed:

Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers, which shall be determined by adding to the whole Number of free Persons, including those bound to Service for a Term of Years, and excluding Indians not taxed, three fifths of all other Persons. The actual Enumeration shall be made within three Years after the first Meeting of the Congress of the United States, and within every subsequent Term of ten Years, in such Manner as they shall by Law direct.

The latest generation of activist census takers are either oblivious to the Constitutional function of the census, deliberately ignoring it, or making up a fanciful interpretation of this clause in order to justify their behavior.

The good news is that at the end of the day, Groves and his minions are only as powerful as we the people allow them to be. If you feel "empowered" by telling the government your name, telephone number, ethnicity, if you own or rent your home, or if you sometimes live somewhere else, then by all means do it. However, know this: None of this information is Robert M. Groves' or any other census taker's business. It is certainly not required for "representatives and direct taxes" to be apportioned. So long as the American people remain apathetic, we can count on Groves and future Census Bureau directors to continue to abuse their power by prying deeper and deeper into our personal lives. If the Constitution is ever going to be taken seriously again, it must start with the people. As Groves would say, it's in our hands!

Debt Limit to be Raised to $14.3 Trillion

2010-01-21T23:49:00.000-08:00

In what is reflective of the public's indifference to our enormous national debt, a small AP story was posted this week about a proposal made by Senate Democrats to raise the national debt ceiling to an unprecedented $14.3 trillion. Needless to say, it did not make many headlines, but for those of us concerned about the value of our currency and the size of government, it serves as yet another reminder of the devastating consequences of bailouts, unfunded entitlement spending, and our massive overseas presence. One noteworthy item mentioned in the article is an agreement by "top Senate leaders" not to pass the legislation with less than 60 votes:

Congress has never failed to increase the borrowing limit, but it will take 60 votes to pass the legislation under an agreement by top Senate leaders.

Getting 60 votes became more complicated after Sen.-elect Scott Brown's victory Tuesday in Massachusetts. Democrats will shortly have 59 Senate seats and will need at least one Republican to pass the legislation.

Stand by for the fingering of the RINOs...

Leave Internet Shoppers Alone

2010-01-14T22:49:00.000-08:00

During the boom years of the early 2000s when the Federal Reserve was doping up the economy with cheap money and consumers were spending more than they were taking in, state government coffers were swelling with income tax revenues. Budgets increased, more and more entitlements were enacted, and little consideration was given to the possibility of tax revenues decreasing in the future. Today, after the bubble has burst and consumers' purse strings tightened, state governments (especially California) have been left with billions of dollars worth of obligations that cannot be met.

For many Americans, these developments are welcomed. One of the most effective ways to reduce the size of government is to simply starve it. States, unlike the Federal government, lack the ability to inflate their way out of deficits and therefore run the risk of having their credit rating cut should debt increase to unmanageable levels. Nevertheless, many politicians and their media lackeys have chosen to duck the question of fiscal responsibility, and instead chosen to attack consumers and successful Internet retailers. With sales tax rates in some states north of 9%, consumers have more reasons than ever to look to out of state retailers for price breaks on major purchases. This is, of course, not an unexpected occurrence. As tax rates go up, the more incentive people have to avoid paying them.

In what is also not an unexpected occurrence, pro big government media attack dogs Michael Hiltzik at the LA Times, and Randall Stross at the NY Times, have focused their rage not on the politicians whose irresponsible budgetary policies and lack of foresight got their states into debt, but at those who dare to shop at Amazon.com. Stross even when so far as to accuse Amazon.com founder Jeff Bezos of not doing his part "to avert layoffs of schoolteachers and firefighters and, yes, professors at state universities". Nothing could be further from the truth. The solution to every state's budget crisis is to simply spend less. It is a painful and unwelcome reality for every politician whose electability depends on the volume of freebies they can promise their constituents. Therefore, as the financial crisis deepens, we can continue to expect to see politicians and the rich media elite pointing their fingers at cash-strapped consumers trying to avoid oppressive sales tax bills. Do not be fooled by their tear jerking tales of teachers and firefighters being kicked out onto the street. These people know the solution to all their problems is less government, they just cannot bring themselves to admit it.

Bernanke Desperate to Prevent Tax Payers from Knowing how their Money is Spent

2009-11-28T19:08:00.000-08:00

Ben Bernanke and his Wall Street cabal are distraught at the thought of being held accountable for the decisions they make. Bernanke's latest op-ed in the Washington Post, in which he argues that the correct "reform" for the Federal Reserve is to give it more power, is too little too late. Bernanke asserts that the Federal Reserve is "highly transparent" and "played a major part in arresting the [current economic] crisis". While it is true that some parts of the Fed's books are open to an audit, there are still trillions of unaccounted for dollars in existence, and what the chairman also fails to mention is that it was the Fed's loose monetary policy that created the crisis in the first place. No, the answer to this problem is not to give the Federal Reserve more power. They can write op-eds and trot out apologists like Randall Kroszner to threaten us with worse "inflation outcomes" should they suddenly be forced to reveal to the public how our money is being spent. But really, how could "inflation outcomes" be any worse? Since the Federal Reserve was created in 1913, the American dollar has lost 96% of its value. No, the American people will not be persuaded by Krozner or Bernanke's fear mongering. The corrupt nature of the central economic planners at the Federal Reserve will be exposed. It is just a matter of time.

Get Rid of your Dollars Today

2009-11-17T23:07:00.000-08:00

After Ben Bernanke's comments on Monday, in which he stated that the Fed sees no bubbles forming, inflation is under control, and we can forget about interest rates being raised anytime soon, you would have to be crazy to hold dollars in any significant quantity. This expert analysis comes from the same institution that failed to prevent the technology stock bubble of the late 90s, and the recently popped real estate bubble. Bernanke's comments mean the dollar will continue to fall, gold and other commodities will continue to increase (in dollar terms), and you can be rest assured somewhere people are borrowing cheap dollars and using them to pump up a market. For the foreseeable future, Americans can expect the purchasing power of their savings to decrease, and their savings account interest rates to be next to nothing. While Obama tours China extolling Americans to save more, the Federal Reserve continues to do everything in its power to encourage Americans to spend as fast as possible.

Make no mistake about it, Americans need to save more, but not in 0.5% interest rate savings accounts full of dollars. Americans need to wise up and prepare for the inflation bonanza that is coming sooner rather than later. While it is, of course, prudent to keep a several month supply of cash in a savings account should an emergency arise, the rest needs to be traded in for hard assets as soon as possible. With commodity backed ETFs, like GLD and SLV, that trade like stocks, it is easier than ever to reap the benefits of owning real money without the headache of having to store it. Don't believe Bernanke. Get rid of your dollars before it is too late.

Bad Advice from Michael Moore

2009-11-01T20:23:00.000-08:00

Recently, Michael Moore sent an "action plan" to his email list with suggestions for those eager to "fight back" against capitalism after having seen his movie. Most of Moore's suggestions are standard left wing fare: bigger government, more regulation, socialized medicine, more unions, etc. However, one suggestion in particular shows how little Moore, a college drop out, understands what's going on in our economy:

3. Do not invest in the stock market.If you have any extra cash, put it away in a savings account or, if you can, pay down on your mortgage so you can own your home as soon as possible. You can also buy very safe government savings bonds or T-bills. Or just buy your mother some flowers.

What a horrible idea! Instead of investing in real assets, Moore would have his followers store their wealth in dollars. This at a time when the supply of dollars is rapidly increasing, and the value of the dollar quickly decreasing. Even worse, Moore suggests buying savings bonds or T-bills. The only thing worse than storing one's savings in dollars, is storing one's savings in contracts to receive dollars in the future. In general, the only hope the average individual in this country has for their savings to retain its purchasing power is to invest in stocks and commodities. What Moore suggests here, is tantamount to telling his followers to flush a chunk of their nest egg down the toilet each year. Not only does this demonstrate Mr. Moore's complete lack of understanding with respect to basic economics, but it calls into question any and all conclusions drawn in "Capitalism: A Love Story".

Fed to Savers: You don't matter

2009-10-25T21:28:00.000-07:00

Reading this article at cnbc.com reminded me of one of the most devastating consequences of the decisions made by the monetary policy "experts" at the Federal Reserve.

"It's also time", says the author, Andrew Barry, "for the Fed to consider the plight of the country's savers..who are being forced to take substantial interest rate or credit risk if they want higher yields.. there are millions of Americans — most of them elderly — who diligently saved and now have little income to show for a lifetime of effort."

Without question, the condition of our nation's savers is a pretty low priority for Bernanke and his cabal of Wall Street buddies. Those of us who have been living within our means, staying out of debt, and managing to put some money away in the bank have punished unfairly by the Federal Reserve's monopoly on interest rate control. In the past year, the interest rate on my savings account has dropped from a healthy 3.3%, to a paltry 0.5%. Other savers across the country have been affected in the same way. Of course, none of this matters to Bernanke. What's important to him is that his friends on Wall Street have easy access to money with which to rebuild their businesses, and build the next bubble, after the previous bubble popped last year. To the elitists in Washington and on Wall Street, savers are simply a necessary casualty of the bailouts (yes a 0% interest rate is a bailout).

There is, however, another way. In a truly free society, savers would be paid an interest rate determined by market forces, not the whim of bureaucrats in Washington. As the amount of savings declined, interest rates would rise. As savings increased, interest rates would decline signaling to entrepreneurs that now is the time to begin new capital intensive ventures. If you are as fed up with this nonsense as I am, make a point of emailing your representative this week and asking him or her if they think it is fair for the Federal Reserve to punish the savers in our country.

Separating the Redcoats from the Patriots in the Republican Party

2009-10-20T01:14:00.000-07:00

Fake Republican Lindsey Graham's October 12th tirade against Ron Paul highlighted the fundamental differences between the so-called "Republican Establishment", and the burgeoning grassroots conservative movement centered around the philosophies of small government, sound money, and the Constitution. A quick perusal of Graham's stump speeches on YouTube reveals that one of his major talking points is how he intends to "grow the party". Well Lindsey, how is that coming along? When was the last time over 10,000 people came to hear you speak? When was the last time you were on the NY Times best seller list? Just who are you expecting to look at your record of supporting bailouts, endless war in Iraq, the "Patriot Act", general disdain for the Constitution, blind trust of Ben Bernanke, support for Sonia Sotomayor, and go, "gee, whatever party that guy's in is the party for me."? The reality is that outside of South Carolina, almost nobody knows who Lindsey Graham is. He has no real Internet following, young people don't get excited to hear him speak, and his views on the issues are all over the place. The best thing Lindsey Graham could do for the Republican party is to stop talking, serve out the remainder of his term (or even better, resign early), and then go back to South Carolina and retire from politics.

Money Back in the Day

2009-10-08T23:41:00.000-07:00

This past spring I had the opportunity to visit the National Museum of Rome, which contains a massive vault full of ancient coins. That experience, combined with the recent rapid decline of the dollar, got me thinking about what the people of ancient Rome would have to say about our fiat currency system.

Most, if not all coins minted by the Romans had some intrinsic value. The vault at the museum was full of coins made from bronze, silver, and gold. In order to create money, the Roman government had to acquire these metals. This worked fine until new sources of bronze, silver, and gold became more and more difficult to find. The costs of defending Roman territory and subjugating those who had been conquered rose as the empire expanded. These military obligations, combined with Keynesian-like programs to stimulate the economy on the home front, led to a situation where the Roman government could not bring in enough precious metals to mint the money it wanted to spend. To "solve" this problem, they just began including less and less precious metal in each coin. The result of course was inflation, which was no doubt a contributing factor to the decline and fall of their empire.

When I started typing this, I thought I was going to be writing a piece on how ridiculous the Romans would have found our paper based monetary system, but now that I think about it, that's probably not true. The Roman emperors kept massive armies in the field across Europe and Asia. The citizens of Rome were just as eager for entitlements and bailouts as the citizens of America would be two millennia later. Their leaders, without understanding the full consequences on their actions, were quite happy to oblige them. Yes, I think the Roman government would have found a great deal of use for Ben Bernanke's printing press.

Alan Grayson: An Unlikely Patriot

2009-09-30T00:15:00.000-07:00

It is surprising to find a member of the Congressional Progressive Caucus attacking the printing press that enables big government and the welfare state, but that is exactly what Alan Grayson did at last Friday's hearing on HR 1207. Representative Grayson pressed Federal Reserve General Counsel Scott Alvarez relentlessly on the Fed's alleged independence, while Alvarez feigned ignorance in attempt to run out the clock.

The Health Insurance Mandate

2009-09-23T23:38:00.000-07:00

One of the key elements of the President's health care reform agenda is mandating that all Americans who can "afford" health insurance purchase coverage. Should this mandate turn into law, it will be perhaps the first time in history that the government of the United States has required that its citizens purchase a service as a condition of generating a certain amount of income. What a huge win this will be for the insurance companies! In speech after speech, President Obama has feigned distain for the health insurance industry, yet he is ready to force hundreds of thousands, if not millions, of new customers under threat of fine to purchase their services. The individuals in this new customer base, many of whom will be young, healthy, and not making use of the insurance they will be required to purchase, will more than make up for any profit hits health insurance companies will take as a result of new laws requiring them to cover people with preexisting conditions. With enemies like President Obama...who needs friends?

Mike Honda Holds in Person Town Hall Meetings on Healthcare

2009-09-13T18:24:00.001-07:00

Today Congressman Mike Honda held two in person town hall events. Two if by Sea was on hand to cover the first event held at Santa Clara University. Those present seemed to overwhelmingly be in favor of socialized medicine, however, it is not clear how well the event was publicized. Representative Honda has had a small blip about it on his website for the last week or two, but those who do not regularly visit his website, or participate in left-leaning email groups or websites, probably would not have been aware of the event. For the better part of an hour Representative Honda fielded softball questions from a mostly friendly audience. Some audience members without specific questions, who nevertheless had won the question "drawing", were allowed to pontificate at length about the merits of a "single payer" system and their unwavering support for Representative Honda's agenda. Only at the end of the meeting, after it had been announced that the last few questions would have to be asked quickly, were dissenting voices from the crowd heard.

I was somewhat disappointed with the town hall event from the perspective of it being a real debate about healthcare reform. There was not a lot of diversity of opinion in the audience, an audience which was certainly not representative of the broad range of viewpoints people have in California's 15th district. In the future I would recommend that Representative Honda and his staff make an effort to reach out to those who may not readily agree with all his policies, and invite them to participate in the discussion.

Know Your Rights: Stop and Identify

2009-09-06T03:51:00.000-07:00

As I was returning home last night, I passed by a small sign indicating that a "DUI and driver's license checkpoint" was operating ahead. For those readers who may have never have had to deal with a suspicionless checkpoint, "checkpoint" is police-speak for "drivers will be necessarily stopped without reasonable suspicion, and may be tested for having consumed alcohol without probable cause". While this post will not deal with checkpoints specifically, it did remind me of the importance of knowing one's Constitutionally guaranteed rights when having an encounter with law enforcement.

One of the first things police usually ask for during an encounter is identification. Knowing when you are required to provide identification, and when you may legally remain anonymous, is extremely important for any patriotic American interested in protecting their rights. In Hiibel v. Sixth Judicial District Court of Nevada, the US Supreme Court decided that it was legal for states to make laws requiring individuals identify themselves during Terry stops, that is to say when a police officer suspects you have committed, are committing, or are about to commit a crime. Such laws are generally referred to as "stop and identify" statues. Currently, 24 states have such laws on the books and I would encourage all readers to become intimately familiar with the relevant codes in their home state. If your home state does not have a "stop and identify" law, then you may not be required to identify yourself during a Terry stop. I use the word "may", because officers may still find grounds to arrest you for refusing to identify yourself, in which case you would have to prove in court that the arrest was unlawful. That said, people can and do assert their right not to identify themselves to the police.

In this first video, the police make contact with a group of individuals holding a sign by the edge of the road. Towards the end of the video, the police ask for identification, the individuals state that they are not carrying identification and break off the confrontation.

In the second video, the police stop a vehicle for being parked illegally. An officer asks the passengers for identification, but the driver instructs them not to comply with the officer's request and explains why they are not compelled to do so.

Hotseat - Livestream make.tv

You're doing a heck of a job Bernanke!

2009-08-24T23:46:00.000-07:00

With the news that President Obama plans to reappoint Ben Bernanke as chairman of the Federal Reserve, it is appropriate to reflect on all the damage the Federal Reserve has done to the American Republic in its 96 year history. Since 1913, the Federal Reserve has brought us 2075.3% inflation (as of today). An item that cost $20 in 1913, now would cost $435. Americans no longer have the option of accumulating savings in cash. If history is our guide, Federal Reserve notes will almost certainly loose their value faster than one's bank account will accrue interest. When money was precious metals, or backed by precious metals, it was possible to save money and be confident it would retain or increase its value. Today Americans are forced to invest in risky markets they may not understand in order for their savings to match or outpace inflation. When these markets tank, years of savings can be wiped out almost overnight.

The Federal Reserve can create money out of thin air and give it to their well connected friends as they see fit. These well connected few can spend this new money before the inflation it causes hits the market. By the time the new money trickles down to the general public, prices will have already increased such that any benefit it provides will be offset by inflation. When the Federal Reserve declares a company "too big to fail", that company can then take on an artificial level of risk its competitors cannot match, knowing that if things turn south, the losses will be born by the tax payer. The Federal Reserve can create credit from nothing, artificially manipulate interest rates, and help build unsustainable bubbles. When their policies fail, the Federal Reserve apologists in the media, academia, and on Capitol Hill let them off the hook time and time again. In the minds of many, the monetary policy debate has long since been settled and is no longer open to discussion. Until the public wakes up, and demands our leaders hold the Federal Reserve accountable for the devastation their policies have wrought on our country, we can all look forward to more inflation, more economic bubbles, more bailouts, and less freedom.

Obama Plays Healthcare Guilt Card

2009-08-19T23:37:00.000-07:00

Today, when discussing "rumors" about his healthcare plan, President Obama said:

These are all fabrications that have been put out there in order to discourage people from meeting what I consider to be a core ethical and moral obligation: that is, that we look out for one another; that is, I am my brother's keeper, I am my sister's keeper. And in the wealthiest nation in the world right now we are neglecting to live up to that call.

This statement is misleading at best, and a straw man fallacy at worst. By suggesting that the goal of Americans opposing socialized medicine is to "discourage" people from looking out for one another, the President is assigning his opponents a position that is easy to refute, while ignoring the meat of their arguments. Americans on both sides of this issue are interested in looking out for their fellow countrymen. The main point of contention is whether or not the federal government ought to be the arbiter of what is or what is not an "ethical and moral obligation", and have the ability to compel Americans to meet those obligations, whether or not they agree with them, by forcibly taking money in the form of increased income taxes. In the type of society our Founding Fathers envisioned, each American would have the ability to determine their own moral obligations, and be allowed to meet those obligations as he or she sees fit.

Mike Honda Disappoints Constituents Eager to Participate in Healthcare Debate

2009-08-18T23:15:00.000-07:00

Over the past few weeks, Americans have been bombarded with images of contentious debates at healthcare town hall events across the country. In many states and districts, Americans have been given the opportunity to interact with their representatives and share their thoughts on healthcare reform in person. Not so if you live in California's 15th district. Representative Mike Honda has decided that, in leu of meeting with his constituents in person, he will be holding a "telephone town hall". For those readers not familiar with the way telephone town halls work, constituents interested in attending (listening) to the event sign up, and are robo-called before it begins. A lucky few will get a chance to ask a question and everyone else will just have to sit and listen. How the people allowed to ask questions are selected is anyone's guess, but they will be the only ones allowed any interaction with their representative. Not so much as a peep will be heard from anyone else.

Honestly, I can't blame Mike Honda for wanting to hide from his constituents. His insistence that he "will not vote for a bill that does not contain a robust public option which will ensure Americans have choices in health coverage", not only raises serious concerns about his understanding of the powers granted to the Congress by the Constitution, but is also out of step with the majority of Americans.

Cash for clunkers "devastating" charities

2009-08-16T23:14:00.000-07:00

When the government starts intervening in free markets, there's no telling what the consequences will be. As I've said before, "cash for clunkers" amounts to nothing more than a tax on the poor, who rely on a used car market with a plentiful supply of "clunkers" to be able to purchase affordable vehicles. According to this story on CNBC, another victim of this terrible program is charities. The Military Order of the Purple Heart, an organization that assists veterans and relies on "clunker" donations, will be forced to make "devastating" reductions in the level of service they are able to provide to veterans in need. If your representative voted for this program, maybe this week would be a good time to call their office and ask them what they are going to do to fix this problem.

Obama on Universal Healthcare Supply vs. Demand Problem

2009-08-11T23:51:00.000-07:00

As Two if by Sea reported earlier this week, there is a huge problem with adding 30+ million new people to a healthcare system without a simultaneous proportional increase in healthcare professionals. Amid all the softball questions being lobbed at the President during today's "town hall" on healthcare in New Hampshire, there was one question worth a second look:

Q Thank you, Mr. President. I've worked in the medical field for about 18 years and seen a lot of changes over those 18 years. I currently work here at the high school as a paraprofessional. I have a little, you know, couple questions about the universal insurance program, which, if I understand you correctly, President Obama, you seek to cover 50 million new people over and above the amount of people that are currently getting health care at this moment.
THE PRESIDENT: It will probably -- I just want to be honest here. There are about 46 million people who are uninsured. And under the proposals that we have, even if you have an individual mandate, probably only about 37-38 million, so somewhere in that ballpark.
Q Okay, I'm off a little bit. (Laughter.)
THE PRESIDENT: No, no, I just wanted to make sure I wasn't over-selling my plan here.
Q That's OK, Mr. President. (Laughter.)
THE PRESIDENT: She's OK --
Q He winked at me. (Laughter.) My concern is for where are we going to get the doctors and nurses to cover these? Right now I know that there's a really -- people are not going to school to become teachers to teach the nursing staffs. Doctors have huge capacities; some of them are leaving private to go to administrative positions because of the caseload that they're being made to hold. I really do feel that there will be more demand with this universal health care and no added supply. I also understand that it was to be taken from Medicare, about $500 billion -- correct me if I'm wrong on that

At this point the President started talking about medicare and later continued:

Now, the last question that you asked is very important and I don't have a simple solution to this. If you look at the makeup of the medical profession right now, we have constant nurses shortages and we have severe shortages of primary care physicians. Primary care physicians, ideally family physicians, they should be the front lines of the medical profession in encouraging prevention and wellness. (Applause.) But the problem is, is that primary care physicians, they make a lot less money than specialists --
AUDIENCE MEMBER: And nurse practitioners.
THE PRESIDENT: And nurse practitioners, too. (Applause.) And nurses, you've got a whole other issue which you already raised, which is the fact that not only are nurses not paid as well as they should, but you also have -- nursing professors are paid even worse than nurses. So as a consequence, you don't have enough professors to teach nursing, which means that's part of the reason why you've got such a shortage of nurses.
So we are going to be taking steps, as part of reform, to deal with expanding primary care physicians and our nursing corps. On the doctors' front, one of the things we can do is to reimburse doctors who are providing preventive care and not just the surgeon who provides care after somebody is sick...
The other thing that will really help both nurses and doctors, helping pay for medical education for those who are willing to go into primary care. And that's something that we already started to do under the Recovery Act, and we want to do more of that under health care reform.

It would be years before an increase in federal aid to medical and nursing students could produce any significant increase in medical professionals providing primary care. As to whether or not reimbursing doctors that provide preventive care would make any difference, I have yet to see any data on that above and beyond the President's speculation today. That means if medical insurance becomes an entitlement in the near future, there will be no solution in place to address the massive increase in demand for health services. It sounds like the President is OK with that, which means if this bill passes as is, we as Americans better be prepared for higher prices and longer lines at the doctor's office.

The full transcript of the town hall can be found here.

Healthcare is a Right?

2009-08-09T22:06:00.000-07:00

This weekend I found myself thinking a lot about what it would mean for the federal government to legislate healthcare as a "right" on equal footing with "life, liberty, and the pursuit of happiness". If healthcare is a right, then doctors and nurses must be forced to provide their services to all comers (regardless of citizenship), and everyone else who supports them, right down to the janitorial staff, must also be compelled to work. When healthcare becomes a right, then demand becomes essentially unlimited. Unlimited demand leads not only to long lines, but also rising prices (at least in a free market). Furthermore, if healthcare is a right, then those who generate excess income, must be forced to use a portion of that excess income to pay for the healthcare of those who do not generate sufficient income to cover their own medical expenses. Some would call this "redistribution of wealth". No matter what its label, a tax of this sort raises important ethical and Constitutional questions.

Redcoats to Patriots: We want names

2009-08-05T23:24:00.000-07:00

Do you know anybody who has been making ~~patriotic~~ fishy statements about government run health care? Maybe they are a friend...a neighbor...somebody you work with...maybe you even share a roof with them. Well, whoever they are they need to be reported to the Redcoats immediately. According to the White House blog:

There is a lot of disinformation about health insurance reform out there, spanning from control of personal finances to end of life care. These rumors often travel just below the surface via chain emails or through casual conversation. Since we can’t keep track of all of them here at the White House, we’re asking for your help. If you get an email or see something on the web about health insurance reform that seems fishy, send it to flag@whitehouse.gov.

Of course, this isn't the first time in American history that neighbors have been pitted against neighbors.

Cash for Clunkers: The Redcoats Tax the Poor

2009-08-04T23:23:00.000-07:00

I could write a small novel on everything that is wrong with the philosophy behind the "Cash for Clunkers" program that is all over the news this week. Think about it. The government will give you a small wad of cash to trade a working, probably paid off, "clunker" in for a new car and a pile of debt. The solution to an economic crisis born of too much borrowing and spending, and not enough saving, isn't more borrowing and spending. There is, however, another component to the "cash for clunkers" program that has been largely ignored, namely the reduction in the supply of used vehicles available for people who can't afford to buy new cars. For more on that I'll defer to Dr. Paul:

Rand Paul Puts KY Redcoats on Notice

2009-08-03T23:01:00.000-07:00

If you live in Western Kentucky, you might have felt the Earth shake on Saturday as Rand Paul slammed the infamous 1100 page bank bailout bill on the podium during his speech at the Fancy Farm picnic, and took the career politicians who passed it (without reading it of course) to task.

If you are feeling particularly inspired after having watched this video, consider making a contribution to his Senate campaign:
http://www.randpaul2010.com/

The Income Tax: Government Sanctioned Slavery

2009-08-02T22:45:00.000-07:00

Did you ever really think about what the government is doing when it collects income taxes? I don't know about you, but every day I get up and go to work. In exchange for the time I spend at work, I receive an hourly wage. At the end of the pay period I am compensated an amount equal to my hourly wage times the number of hours I have worked. At that point the, federal (and depending upon where you live, possibly the state) government steps in and confiscates a portion of the money which I have received as compensation for my labor. The seizure of these funds effectively renders me into a state of involuntary servitude for some portion of every hour I work. Worse yet, the harder I work and the more successful I become, the more time I am forced to spend in this state of servitude. The 13th Amendment, which was adopted in response to the much more overt and horrible form of slavery with which Americans are familiar, proclaims:

Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction.

In order to purchase food, shelter, and clothing I need money. In order to obtain money I must generate income. In order to generate income I must work. When a portion of the income generated by my work is taken away from me by an entity under the threat of imprisonment, I have been forced into involuntary servitude by said entity. When that entity is the federal government, good luck getting any justice.

Something you can do to fight the Redcoats:

Send the Peter Schiff for Senate campaign a few bucks on August 7th:

http://www.schiffathon.com/

http://schiffforsenate.com/