True responsibility or fiat responsibility……

Posted: 19/02/2009 in Uncategorized
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We talk about responsibilities in politics today, but what do we really mean when we say ‘responsibility?’ Do we mean that we take full credit for our actions, willing to retain all of the risks and rewards? Or do we mean something entirely different today?

Some analysts have claimed that this stimulus legislation may eventually cost the taxpayers of this nation well over three trillion dollars. There are many other suggestions being presented, but most fall within a range of 1.5 trillion dollars or so. That’s a lot of money, and we could look upon it as having an interest rate of nearly 100% or more upon this money we have borrowed from ourselves.

And since we are actually borrowing from ourselves, wouldn’t it be in our best interests to use this 870 billion dollar tax bill as wisely as possible? One would think so, but is that the reality of the situation? Hardly. Last year the nation’s largest automakers were given subsidies to help themselves get back into a more prosperous position. And yet this past week, GM said that they required at least 30 billion dollars more to keep from going under. That is twice what they have already taken from us n the way of tax dollars.

And yet they still want more. Are they being responsible? They seem to feel as though they are making a case that proves that they are being responsible with our tax dollars. A Financial Times article says “The carmakers claim that bankruptcy would trigger further failures among suppliers and devastate their car sales. A Chapter 11 filing by a company of GM’s size would mark America’s largest biggest business failure ever.” Is failure such a bad thing for the taxpayers?

The argument has been made that by forcing the Big Three into insolvency would further exacerbate the already declining economic conditions. But would giving GM another 30 billion on top of the 15 billion they already have received accomplish anything different? I think not. One of the biggest issues we face today is not the fact that thousands and thousands of people have walked away from their mortgages, but the fact that we have allowed ourselves to rely upon fiat currency as our standard of financial success.

What is fiat currency? Fiat currency is money that exists simply because our government says it does. It is a paper ‘note’ that says a dollar is a dollar. It is not based upon a real intrinsic value such as gold or other items of strategic value. It is merely a promise from a government that says that piece of paper holds the value of a dollar.

Chrysler is asking for another 2 billion dollars of this fiat currency. Promissory money, based upon a governments declaration that a dollar is a dollar. Credit, if you will. Credit that does not need to be paid back to the taxpayers. The alternative for GM is bankruptcy, supposedly. The article goes on to say “GM said that a Chapter 11 filing would be riskier and costlier than reorganisation in court as government would have to provide debtor-in-possession financing because private DIP financing would not be available for a company of its size.”

So what the carmakers seem to be saying is that a poor farmer in Aroostook County, struggling to be responsible enough to pay his bills, pay his mortgage, feed and clothe his family, will be required to bail out a man who has steered his company to the brink of collapse, all the while making more personal income in one year than that farmer in the County makes in a lifetime. Is that really responsible of GM?

Promissory notes, fiat currency, credit. That is the true cause of the demise of our economy. We placed so much faith upon a promise that we did not see that with the changing of the leadership of this nation, that promise became worthless. We based our hopes upon credit, plastic money. Not a true promise of solid, true wealth.

Many economists have argued in the past against relying upon the fiat system. Alan Greenspan wrote in 1966 in an essay entitled ‘Gold and Economic Freedom” that “This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.” And that is what we have come down to when we deal with economy today. We have a society that operates within a boundary of promissory currency that has no real value. We no longer have any real tangible articles to trade with others for the goods we desire.

And the leftists we have re-elected into office for so many times and so many years have finally gained enough power, that real value has little meaning today. The real value our elected representatives cling to is the power and prestige of their position. The state will be responsible for what we eat. What we wear. Where we go. Who we are. This is the real meaning behind this victory Obama is relishing.

Obama, who so closely wants to be compared with Lincoln, the Great Emancipator, has turned his back upon the very ideals Lincoln held so dear to his heart. It was the Democrats who demanded that slavery be allowed continue in this Nation. It was the Democrats who persued a divided nation. It was the Democrats who populated the KKK and sought to destroy the Black citizens of this country. And today, it is a Democrat who stands as President of this Nation, ready to divide this same nation, and send its people into a new kind of slavery, to a new kind of master.

Responsibility. It means so many things today.

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