Dear Friend of Liberty,…

An appropriate call to action from John F. Tate (President, Campaign for Liberty):

This week, the U.S. Senate is debating the so-called “Stimulus” bill, a nearly TRILLION DOLLAR boondoggle being carefully marketed as a treatment for our economic woes.

In reality, this big government disaster-in-the-making will only further devalue our dollar, increase our national debt, and continue our country’s descent into socialism. You may think there’s nothing you can do to make a difference, but you can.  More on that in a moment.

Just last week, House Democrats passed their pork-laden “stimulus” package over the surprisingly united opposition of House Republicans.  The Senate bill is, amazingly, an even more inflated version.

Our economy cannot survive this type of continued limitless spending and reckless disregard for free market principles.

Our country is already over $10 TRILLION in debt, with tens of trillions in unfunded liabilities on top of that.

This “stimulus solution” to our economic problems is exactly the type of disastrous big government policy that created the crisis in the first place, and passing it will certainly prolong the suffering.

What can YOU do?

For starters, you can contact your Senators today and urge them to oppose this bloated federal spending spree. There is mounting outrage over this pork-laden disaster, and the politicians are getting nervous.

You can get contact information for your Senators by clicking here, then selecting your state from the map and clicking “Congressional Information.”

Our website not only allows you to speak out and hold your Congress accountable, but it also keeps you updated on all Campaign for Liberty activity in your state and across the country.

To make your voice heard and to stay involved with the Revolution in your state, follow this link: http://www.campaignforliberty.com/usa.php

Campaign for Liberty was founded to deliver the message to the bureaucrats in D.C. that “Enough is enough!”  It is our mission to stop this extravagant spending, educate our fellow countrymen on sound economics, and turn the tide back toward liberty and a balanced federal checkbook.

It is crucial that you help us by making your voices heard.

Calling and writing Congress can seem hopeless at times, but that’s exactly the feeling politicians want you to have. They want you to think you don’t matter. They want you to sit quietly.

Let them know that you won’t be quiet, that you are watching them, and that you are not going away.  Demand that your Senators defend the constitutional values they have sworn to uphold.

Encourage them to call this “stimulus package” what it really is – a socialist repudiation of our nation’s values – and to vote it down.

Again, please contact them today by following this link: http://www.campaignforliberty.com/usa.php

With your help, we can win this battle in our fight to restore our Constitution and reclaim the Republic our forefathers fought to give us.  And even if it does still pass, we will use it to further the Revolution that you and I are bringing about.

In Liberty,

John F. Tate

President, Campaign for Liberty

P.S. Radical Socialism is currently being debated in the halls of Congress. Please write and call your Senators and demand that they oppose this so-called “Stimulus Package” and other Big Government power grabs.

P.P.S. Campaign for Liberty practices the principles we preach. Unlike the government, we will not go into debt. Only your ongoing support allows us to continue our fight against tyranny. If you can help Campaign for Liberty financially, please make your generous contribution of $250, $100, $50, or whatever you can afford at this time here: https://www.campaignforliberty.com/donate.php

Thank you for all of your hard work for the cause of liberty!

Related Posts:

Stop the Stimulus

I already explained on numerous occasions why bailouts and more government spending won’t work, make things worse and create another Great Depression.

Below please find a great pro-active campaign that was sent to me from BreakTheMatrix.com:

Announcing: A quick, easy, FREE plan for stopping the stimulus… TODAY. Time to mobilize, Matrix Breakers!!

Watch the video, then see below for everything you need to get started:

Resources:

Senate Phone/Fax numbers + Emails (by State)

Sample phone script:

“Hello, my name is __________, and I am a member of a conservative social media group called Top Conservatives on Twitter. I’m calling today to find out how Senator _____ intends to vote on S. 1, the stimulus package. (write down and report back the response. If the answer is “Vote Yes”) I’d like to encourage him/her to vote against this piece of legislation because it is too large and will be ineffective in boosting the economy. I especially don’t like (the talking point of the day). Please let Senator ______ know that I would like for him to vote “NO” when this piece of legislation is offered.”

Sample fax/e-mail text (please copy and paste these to your e-mail):

To the Honorable Senator _________,

My name is ____________, and I am a member of a conservative social media group called Top Conservatives on Twitter. I am writing today to ask you to vote against S. 1, the pork laden stimulus bailout. This is a bill that is full of wasteful spending and will not effectively boost the economy. In its current form, the stimulus bill will be more expensive than the Iraq and Afghanistan wars combined. It is a bill that is being marketed as an immediate response to a national emergency, but many economist have agreed that it will do nothing but prolong the recession. It reflects the “Christmas wish-list” of the Democrats most powerful interest groups more than the needs of the country. I urge you to keep the country’s best interest in mind, and not the desires of liberal interest groups, in mind as you vote against this bill.

Above all else, be polite. Passion is encouraged, foul language is not. Be aggressive, but not abusive.

*******************

THANKS to TCOT (TopConservativesOnTwitter.org) for organizing this counterstrike!

TopConservativesOnTwitter.org is a group that welcomes anyone who believes what they call “the basics of conservatism” – smaller government, lower taxes, self-reliance and gun ownership. You’ll find Libertarians, Ron Paul Republicans, Independents, regular Republicans, and many others in this group. I certainly have differences of opinion with some of the people there (as with any group), but on this particular issue, I see a huge opportunity to join forces and have a much greater impact.

Join the TCOT Action Project network at: http://tcotprojects.ning.com

More details here: http://www.tcotreport.com/moveovermoveon.html

And don’t miss Sandie’s blog – she’s a fellow BTM/TCOT member: http://scrosnoe.wordpress.com

**********************************

PLEASE help us spread the word by forwarding the video to your friends, and rating, favoriting, commenting in YouTube. That is the single best way to help it move up the charts so new people will see it and learn about what we’re doing.

Other ways to help: Digg, StumbleUpon, Reddit, Post this article and the video on Facebook, send a MySpace bulletin… you guys know the drill :)

THANK YOU for your help!!

Shelly

Related Posts:

Obama Promises More of the Same

MarketWatch writes Obama issues fresh sales pitch for stimulus plan:

“There is no doubt that the cost of this plan will be considerable,” Obama said in a speech at George Mason University in suburban Virginia.
But, said the president-elect, “if nothing is done, this recession could linger for years.” Read the speech.
Obama has made a stimulus plan the centerpiece of his incoming administration, calling for a huge spending and tax-cut plan worth about $800 billion. His aim is to create or save at least 3 million jobs over the next few years.
“I don’t believe it’s too late to change course, but it will be if we don’t take dramatic action as soon as possible,” Obama said, telling congressional leaders he wants to work with them on days, nights and weekends to get a plan passed “in the next few weeks.”
Obama said the consequences of inaction would be grim. He said unemployment could reach double digits, the economy could lose $1 trillion, or $12,000 for a family of four. He warned that fewer young Americans would be able to go to college or receive adequate job-training. He predicted the nation could lose its competitve edge.
“In short, a bad situation could become dramatically worse,” the President-elect said.
But Obama faces the challenge of stimulating the economy while trying to keep Washington’s budget deficit under control — a prospect that he acknowledges isn’t possible in the short term. Aware of the dangers, he and his team of economic advisers are studying ways to lessen the flow of red ink in years to come.
While there is agreement on the need to stimulate the economy, some Republicans are differing with Obama over the size of the package and the efficacy of the proposed tax cuts. About 40% of the stimulus plan, or $300 billion, would be taken up by tax cuts. About a third of those cuts would go to businesses in an effort to spur new investments.
Obama is calling for a central role for the government in the recovery, but he also said Thursday that the financial system needs to be overhauled and that Wall Street wrongdoers must be caught before they can do any damage.

Obama will be inaugurated as the 44th president on Jan. 20.

In essence, this is what Obama said in his speech:

We need to change course immediately. We will do this by spending enormous sums of money. (…like we have been doing for decades.)

We need to cut taxes. We will do this and at the same time spend more than we ever have. (… by borrowing more money from China.)

We need to prevent bubble and bust cycles. We will do this by getting people to borrow money again, consumers to spend more, and banks to lend more. (…which caused the bubble in the first place.)

So far President-elect Obama has absolutley no idea how to battle the crisis. He is surrounded by a group of clueless fools who are outbidding each other with horrible recommendations.

Related Posts:

Reflate the Economy? Now??

Once in a while you come across articles that are so utterly wrong and full of ambiguities, falsehoods, and undefined terms, that it is necessary to call the author out on the damage he is doing by tainting the minds of the readership. This time it’s yahoo’s Ben Stein who perpetrated the crime, in his article “Reflate the Economy – Now“:

Herewith a few thoughts about the economy, public policy and retirement.

First, a note to the mighty international powers convening at the White House for the G-20 Summit to consider the world economic and finance slowdown. In this situation where aggregate demand is collapsing and where credit is desperately tight almost everywhere, the future dangers facing us are all on the deflationary side.

OK, first of all, Mr. Stein, deflation is a drop of the money supply. At best you could hold that a deflation is a very slow growth or a stagnation of the money supply. Deflation, in that sense, actually started in the middle of the year 2006, indicating an upcoming correction of home, asset and consumer prices, usually starting within 1-2 years from then. This is what many libertarians, including myself, predicted at that point in time. 1 year later the US housing bubble began to leak its first holes. October 2007 kicked off the bear market on Wall Street. 6 months later the commodities and foreign exchange bubble began to deflate. Until October of this year we have seen a significant slowdown of the true money supply. Did you ever, during that time, happen to have the foresight or at least a grasp of what was going on at the time to talk about deflation? Now you are warning of a deflation? Now that the money supply has once again began to grow at an annual rate of 8%, after numerous government bailouts, loans to failing businesses, banks, car companies, Term Auction Facilities by the FED, stimulus packages, you are warning of a deflation? I’m sorry but you pretty much missed out on this one.

Secondly, your statement seems to imply that a deflation is a “danger”. I hope you are aware that this deflation was nothing but a correction from a previous credit expansion which went on from 1992 through 2000 and was recklessly propped up from 2002 through 2006. Deflation is exactly what is needed in order to realign the factors of production to useful occupations. Otherwise we will be back where we are today in only a few years. I suggest you read up on credit expansion. Do you really think we need more realtors, investment bankers, failing auto companies, banks, hedge funds, and reckless lending?

“That means there is virtually — for all practical purposes -no limit to how stimulative fiscal and monetary policy can and should be. The dangers of inflation at this point are extremely modest. There is a worldwide commodities debacle. There is almost no new corporate financing. Even mighty China is slowing hour by hour. Inflation is not a present danger.”

OK, then I recommend you have a look at the money supply data as of October 2008. We’re back to were we were in 2002, it’s the same old song. We are repeating the same mistakes. And you are cheering it on. Also, you are saying “this means” as if there was any connection between the previous paragraph and what you are writing in this paragraph. What is the connection? Because we are in a deflation we need to  start another inflation so in 7 years we will be in another, much more serious, deflation? Your reasoning makes no sense whatsoever.

In this situation, the governments that care about their citizens should and must have extremely expansive policies. That would include running very large deficits — which we are doing,…

…and have been doing for the past 7 years. Are seriously you suggesting that we do more of it? Is this your solution to the crisis? Does it not cross your mind that maybe this policy is what has gotten us into this mess?

…not even mentioning tax hikes until the situation is stabilized, and possibly cutting taxes as a temporary measure…

…ok which one is it now? Tax hikes or cuts? Do you have any concept at all?

…Public works projects, tax rebates, even to people who paid no taxes, extensions of unemployment insurance payments — all of these are necessary…

…of course paid for through inflation and credit expansion which is exactly what caused this mess. Believe it or not, but doing the things that caused our demise will not help, but aggravate the crisis.

…Bailing out the big auto companies, offering loan guarantees to encourage banks to lend, making sure lending facilities are in place for credit card issuers – all of these should be done and immediately.

No, we should not bail out businesses that are worth less than MINUS (!!) $56 billion, that produce goods that no one wants and that employ resources that would be much more useful elsewhere. The more we spend on them, the more agony we cause for the common people as I have explained in The Economics of Corporate Bailouts. Your plan above is a disastrous step by step guide on how to put the final nails in the coffin of the US economy.

Obviously, this is also a time for extreme monetary growth. As we economists would say, the velocity of money — that is, how often it changes hands — is falling rapidly. This means the Federal Reserve can pump up the quantity of money greatly to offset that fall without fear of inflation. There are the usual “pushing on a string” limits to how well this will work but it must be attempted.

What do you mean by obviously? What are you basing your recommendations on? You are making one claim after another without any backup. What help is it if the central bank pumps up the money supply? Absolutely nothing is produced when newly printed money is injected. To the contrary, misallocations result in even less useful production. And again, please note that as outlined above, what you are asking for is exactly what we did in the 90s and 2000s. Why should we do it again? We need the opposite. We do need less consumption, more savings, and a proper allocation of resources to occupations where they are needed.

The real issue choking the economy now is lack of lending and fear by the banks and other lenders. This must be met by explicit solvency guarantees from the central banks. There should be no pussyfooting around this. It’s a matter of extreme urgency.

The real issue that is choking the economy has been excessive lending via credit expansion. What do you mean by “solvency guarantees”? You mean that businesses that borrowed and spent recklessly should get more money to keep doing what they have been doing, money, of course, that will be taken from the taxpayer, the common man, who is suffering enough as is? Whether you finance it via taxation or inflation, the common man will foot the bill for any bailout. What do you mean by pussyfooting? You mean like actually using your head and trying to fix the problems we have created?

The sums involved will be substantial, but tiny compared with the losses to the world if we slide into a world wide depression. I offer as an example that it might have cost the government about $30 billion to $60 billion to save Lehman. That was deemed too expensive. The losses to the U.S. from the panic caused by that blunder are on the order of $4 trillion to $ 5 trillion. This is what is at stake if we do not spend the hundreds of billions and maybe a trillion or more to reflate the economy now.

If Lehman generates losses in the billions of dollars then the damage is already happening . They withdraw resources from uses where they are of more use and employ them in occupations of less use. If we take money from the common man, asking him to restrict his consumption, and throw it at Lehman then they will keep pursuing the same failed business strategy. How is this helping anyone? What damage has been done to the economy by letting Lehman go bust? What are you basing your numbers on? The trillions of fictitious paper value wiped out? You mean like those trillions that got wiped just as much after billions, if not trillions, of Term Auction Facilities, Deficits, and Bailouts? You are so utterly wrong I can’t even express my discontent with what you are writing. You mention a depression. Have you any idea of what caused the crash of 1929, and what turned it into a depression. Have you read any credible books about this event? As always I recommend “America’s Great Depression” by Murray Rothbard.

Mr. Obama clearly has a better idea about this than Mr. Bush, who is dragging his feet about Detroit and other aspects of reflation. I hate to say it, but I think we are lucky Mr. Obama won the election. Of course, time will tell.

What do you mean by Bush dragging his feet about Detroit? Are you referring to the billions that have already been made available to GM, the countless subsidies, “bridge loans”, and what have you, all for a company that has a Shareholder’s Equity of less than MINUS $56 billion?

I desperately hope I am wrong and I may well be, but the government has to put in a bottom here. Otherwise, the bottom is very hard to see. Again, I hope very much I am being too pessimistic.

In that sense, I have good news for you. You are dead wrong. In fact, there is hardly one single thing that you are right about in this article. The fact alone that you write an article and in it say that you hope you are wrong shows me that you have no basic concept of the workings behind the business cycle, credit expansion, inflation, deflation, monetary policy, and bailouts.

Secondly, the broad stock market is now at levels it hit roughly ten years ago on the Dow Jones Industrials Average and the S&P 500. This means something horrifying. If there are to be no long term gains in stocks, the retirement projections of almost everyone are simply demolished. Unless a pre-retiree is terribly lucky, he or she cannot count on meaningful gains in stocks. Obviously, the interest on bonds is modest and aside from Treasuries, they have been hit hard as well.

If workers can only rely on dividend and interest income and not on long-term capital gains of 8% or 9% per annum, pre-retirees have to save enormously more than they had anticipated to adequately fund their retirement. This is serious business.

Yes, bond interest is dropping because the government is once again inflating the market. It is true, one should be concerned about the future productive capacity of this country. It is an important component towards a safe and prosperous retirement. But you are destroying your country’s productive capacity if you keep going down the spiral of inflation, credit expansion, and corporate bailouts. The objective of economic policy is to optimize the utilization of all factors of production as per the market participant’s value preferences (demand), and not to continuously employ them in operations that generate losses and that the consumers don’t need.

Again, I hope I am wrong. Historically, stocks have major recoveries after falling as low as they have in recent months compared with the 15-year moving average of stock prices. This is what my pal Phil DeMuth, of Conservative Wealth Management, tells me, and he is a super smart fellow. But I would also consult my pal Ray Lucia, who requires his clients to have a very large amount of cash or short-term Treasuries to get through long difficult stretches. Ray’s advice has turned out to be spectacularly sensible. But, again, if we have a lot of low return cash and low return stocks and low return bonds, we have to save much more than we thought we did three or even two years ago.

Yes, I have nothing to add in addition to what I already said in my previous comment.

This makes reflation even more desperately needed. I hope Mr. Bush will wake up, stop listening to Dr. Evil, his Treasury Secretary, Henry Paulson, and work with President-Elect Obama to get a large, serious stimulation package into the economic bloodstream pronto.

The fact that you repeat wrong statements doesn’t make them right. You have not understanding of what has happened, what went wrong, and naturally have no solution to this disaster at all. You are mixing up buzzwords, such as “stimulus”, “reflation”, “inflation”, and “deflation” without any basis. Your ‘solutions’ won’t work.

This is getting ugly.

Yes it is. It is because you and many other fellow contributors are completely puzzled by what is going on, and yet infecting the public with utter falsehoods. Public opinion ultimately shapes policy. The public needs to be educated about what really happened and what really needs to happen. You have no historical understanding of what caused the mess we’re in. You are recommending more of the same policies that got us here. I am asking you to take your responsibility toward the public serious. Many are reading and listening to what you write. As we continue driving this economy into a ditch, please don’t forget that you bear part responsibility for it if you keep writing what you’re writing.

Related Posts: