Tuesday, September 30, 2008

Why I Oppose a Bail Out

I oppose any type of bail out plan for many reasons. Here are a few:

First, I believe it is morally dangerous and takes us a few steps further down the socialist road. To quote Peter Schiff :

“When the U.S. government owns all mortgages, the real estate market will be completely subject to political, rather than financial, concerns. Will foreclosures be outlawed? Will loan term easements and principal reductions become standard campaign issues?”

My fear is that property rights could be lost in the name of saving the economy.

Second, for months Paulson, Bush and Bernanke have been saying that the fundamentals of our economy are sound and then suddenly they say they need billions of dollars with complete control? I refer to a quote we posted on our “Where Will We Stand” blog:

"Give me control of a nation's money and I care not who makes her laws." - Mayer Amschel Rothschild.

I am not going to trust the same guys that lied when they said everything was fine. These guys were trying to save face with foreign investors and central banks - our creditors – knowing full well the situation was grim.

Third, these same three amigos of ours have somewhat created their own reality. They have pressured congress to act in such a huge way so quickly and have already bailed out enough firms that were “too big to fail” that they signaled banks and other troubled financial institutions to wait on the sidelines to see what hand out the government would give them. This slowed the lending that typically occurs between banks and dried up liquidity in the market that allows transactions to flow. If they were smart they would have started a long time ago with small incremental changes to build up to what they propose now but as I mentioned before the situation did not really allow – they had to save face.

Fourth, our Amigos are very smart men. But if they didn't have the foresite to see this coming when many others did, why should I believe that they know how to get out of this mess? As I'll point out below I think that there are some important issues they have not even addressed. But why should we expect any more from politicians? I'll ride the free market out thank you very much.

And last, for now, if some type of bail out were to pass, and it appears that the fight for a bail out will continue, I don’t believe that it would improve our final position when the dust settles. In fact, it is likely to make things worse, in my opinion.

The reason why is that the fundamental problems that got is in this position cannot be addressed in a matter of weeks. They run much deeper than that. I think the main long term issues are pretty simple:

  1. US consumption is greater than production
  2. This consumption has been financed with debt
  3. Our currency is no longer backed by gold but is a fiat currency

Now, there is way too much behind each of these statements to address them here. I’d like to attempt that later. In my opinion these are the main issues that will lead to a huge devaluing of the US dollar thru inflation. Stay tuned for more on that …





Posted by Nathan 5 comments

Monday, September 29, 2008

Where do we go from here?

Hopefully, this bad bail-out bill will continue to be defeated. So what now? First, let's make sure we all understand how we got here. The more we study, the more we realize we need to face our consequences and make some changes. Click the following link for an article about how we got here and where we should go next.
http://www.cnn.com/2008/POLITICS/09/29/miron.bailout/index.html







Posted by Trina 0 comments

Good Ole Boys Club Takes One on the Chin

The $700 billion bail out plan failed to pass the House. US citizens everywhere expressed their anger that a Wall Street bail out only profits those who particpated most in causing the problems. As far as I am concerned any type of bailout leads us down a very slippery slope. This time they listened to us and this is proof to me that we can have an impact. Small ripples gather to make large waves. Please continue to communicate your thoughts to your representatives. We just avoided a huge step towards socialism!

Here a couple of links for more:

http://money.cnn.com/2008/09/29/news/economy/bailout/index.htm?cnn=yes

http://www.foxbusiness.com/story/markets/senators-push-lawmakers-pass-bailout/


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Posted by Nathan 0 comments

Saturday, September 27, 2008

Where Will We Stand?

An email we sent just before posting here:

Dear Friends and Family,

The Constitution is eroding before our eyes. Where will we stand? There is now a bail-out plan pending in Congress that we need to give careful attention to. There is panic about the direction our economy is going in. Individually and as a nation we have increasingly used debt to fund our consumption. We have been borrowing from other countries to finance our spending. In a word, we have maxed out all of our credit cards, cannot make the minimum payments, and there are less and less people wanting to lend us money, and for good reason.

Much of the media, and many of our government leaders in essence say that we cannot survive without increasing the amount of debt we carry. They argue that the amount of money we owe to the world does not matter because we are the economic force that makes the world go round. What? What makes our country any different than its individual citizens? None of us can say that the amount we owe the bank doesn't matter because without us the bank would go out of business! Ludicrous! Our nation is so addicted to debt that our leaders are now going to take our money and "lend" it to the fat cats in Wall Street because somehow it will "trickle down" to us so that we can still have easy access to more debt that will pull us out of this recession. The thinking that got us in this position is supposed to get us out?

The scary thing about this bill is that it will put all of this money into the hands of one person, Treasury Secretary Paulson, to do as he sees fit. And even scarier, he will be above the law for how he spends it -- no congressional oversight, no judicial review, nada. He will have dictatorial power! Many Americans see that this is no good and are writing their representatives in Congress to oppose the deal. We urge you to do the same! THIS IS A BAD DEAL! It is unconstitutional.

The President, The Fed and The Treasury all warn us that there will be dire consequences to our economy if this bill does not pass, but they cannot guarantee us that it will even work. In fact, hundreds of top economists have stated that it will not work! The truth is that we are headed into a deep recession, and rightly so. We need to decrease our spending and save. Our credit cards are maxed out! Does it make sense to sink deeper into debt even as we shred the Constitution to pieces?! There are a lot of economic principles and concepts to understand how all of this works. Read the Constitution. Remember why the United State of America came to be. Remember that basic principles work the same for a country as for an individual. We need to stay out of debt. Also remember that we become a slave to whoever we are in debt to. Remember to learn from history. Why did Germany let Hitler take over-- because of desperation! Do not look to someone or some government to save you! We are citizens of the United States of America! We are FREE! Free to choose for ourselves, free to accept the consequences of our successes and our failures and become better for it all. We should not sell our freedom because of fear and desperation. Of all people, we can learn and recover because we are free to do it! Where will we stand?

Please participate by voicing your opinion to your representatives in Congress - Senate and House. Also, please visit our blog at http://beylernomics.blogspot.com/. We would like to know what you think.

In Freedom,

Nathan and Trina

"Give me control of a nation's money and I care not who makes her laws." Mayer Amschel Rothschild





Posted by Nathan 2 comments

Another $634 billion?

Unbelievable! Leave it to the Democrats in Washington to "sneak" something like this through while everyone's attention is on another bill! The President was previously opposed to all of this additional spending. What changed his mind? Did he strike a deal to get the Wall Street bail-out passed? Sure makes you wonder. Bush still has to sign it. Time to quickly put in my two cents. Click here to find out about another spending spree with tax payer money that we don't have.





Posted by Trina 1 comments

Socialism on the Rise

Sometimes it's best to let others do the talking...

http://www.europac.net/externalframeset.asp?from=home&id=14065





Posted by Nathan 0 comments

Teaching China

China has been looking-up to the U.S. as an example, as a "teacher." The good, old U.S.A. is a wonderful model to follow, if it practices what it was founded on. Too bad that hasn't been the case as of late. It's really quite unfortunate. China has also been funding a lot of our debt. I think that our government has actually been afraid of losing their confidence, thus losing their funding. That is a big reason why they bailed-out Fannie Mae and Freddie Mac. It is becoming more and more apparent that the United States economy has been running on "ridiculous" practices that cannot be sustained. Our student, China, is learning, but has our example been good or bad? Look what they're saying now. Click here.





Posted by Trina 1 comments

Basics

The comments below are from an email I sent July 18, 2008. I was surprised with the reaction of some that somehow I was making an investment pitch or promoting someone for personal gain. Nothing of the sort. My intent was to simply raise awareness of issues that I believe are fundamental to understanding the situation we find our country in and provide resources to that end:

Economic Resources

Many of today's economic woes have been caused by our own government's attempt to influence the "invisible hand" of true capitalism and our nation's addiction to debt. With so many major US companies on the brink of bankruptcy and near annihilation you might ask how this happened to the greatest nation and economic force in the world and, arguably, in history. I've found some answers in some sources that I'd like to share with you now. Please, I urge you to take time to read these. I believe that the tide is receding and a huge tsunami of economic turmoil is headed to the shores of the United States of America.

How is money created and what backs it? Learn how the decision to drop the Gold Standard has hurt the USA. Read Alan Greenspan's essay "Gold and Economic Freedom" published in 1966 - http://www.321gold.com/fed/greenspan/1966.html. Unfortunately, Greenspan didn't follow his own advice during his tenure as Chairman of the Federal Reserve. "Helicopter" Ben Bernanke is following the same horrific path.

If you believe the Fed's inflation rates (calculated in the CPI) then you probably don't do your own shopping or gas pumping. Inflation is created and reported by the federal government. Read Irwin Schiff's comic book story "The Kingdom of Moltz" to understand what inflation is and why it is in the government's interest to create it, understate it, and promote the false notion that it occurs naturally in any economy. http://www.constitution.org/tax/us-ic/schiff/moltz.pdf

Finally, to put all the pieces together, and for some great investment advice, read Peter Schiff's book "Crash Proof: How to Profit From the Coming Economic Collapse" published in 2006. Peter is one of the few that has for years been predicting the bursting of the housing bubble and many other things that have already happened. He explains economics in a simple and easy to understand way and then lays out an approach to preserving wealth and capital. I have already taken his advice and you can benefit too whether you have anything to preserve or not. The book can be found on Amazon.com and in bookstores. Check out his website that introduces the book and offers a ton of great commentaries, video archives and other resources that will help out as well. http://www.europac.net/ I hope to be able to discuss this further with most of you. Please forward this email on to anyone you think would be interested in this discussion.

Nathan





Posted by Nathan 1 comments
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