Category Archives: Political philosophy

VENEZUELA ACCELERATES DOWN

Inflation is not an increase in prices.

Inflation is a decrease in the value of a currency.

Hugo Chavez, the socialist leader of Venezuela is giving the world yet another example of how central planning works. Under his leadership the Venezuelan Bolivar is experiencing rapid depreciation. As of April 2010, the Bolivar was declining in value at a 32% annual rate.

CHAVEZ AND A FAN

The Chavez government has nationalized privately owned oil companies (sixty of them), metal companies, newspaper companies, universities, banks, food supermarkets, the communications industry and general merchandise retailers. The justification, expressly stated in many cases, was to control inflation. Most recently the Venezuelan stores operated by a large retailer based in France were closed by the Chavez government, without notice, only because they raised their prices in tune with inflation.

The government is running most industries, and inflation is “still” rampant so Chavez reasons the problem must be somewhere else. Now he thinks he has found the cause. Venezuela imports most of its food. “Venezuelan businessmen buy abroad, come here and ask for more than it really costs” he said in fractured English. Translation – If businessmen are unwilling to operate at a loss the government will confiscate their businesses and do it for them.

The Financial Times reports:

Chávez seems to think he can decree low inflation. But it’s absurd,” said one local businessman who is broadly sympathetic to the government.

Last week, he said private companies exploited their workers for economic gain, and then sold their goods for inflated prices. He particularly singled out the country’s largest food and beverage producer, Polar, and recommended that the bourgeoisie read more Karl Marx.

But then Mr Chávez was undone by his own socialist project’s contradictions when 30,000 tons of rotting food were discovered at a warehouse run by state oil company PDVSA. Mr Chávez conceded that corruption and inefficiency was involved, but remained undaunted: “This will not divert us from our route toward our main goal . . . Socialism!”

Yet my liberal friends ask what is wrong with Socialism.

ROAD TO RECOVERY

Contained in every recession are the seeds for its own recovery. It is a little known fact, but true, that prior to the 1930’s the government did not intervene in recessions. The economy was left to heal itself which it did very nicely. Such an approach, call it a non-approach if you will, is not feasible in today’s electoral Democracy. Given that constraint, what should government do?

DO
Stimulation needs to be focused on the private sector. It is the private sector that’s in recession, not the government. Jobs added to the private sector are a boon to the wealth of the nation. The cost is relatively small, with emphasis on the “relatively” of course. A few one shot injections and a modicum of patience is all it usually takes.

One such injection was used by both John F. Kennedy and Ronald Reagan was to open a 2 year window during which business could get quicker tax write-offs on new plant and equipment. Inasmuch as it was a temporary benefit the response of business was quick. The immediate cost to the government was zero. The long term outlay by the government was zero. The only thing that changed was the timing of the receipt of revenue. That is the sort of thing government should do.

Most important of all is for the government to get out of the way and let the recovery begin.

DON’T
Don’t expand the government sector. The government sector is never in recession and does not need “stimulation”. Do not encourage the destruction of usable personal property. When many people are out of work it is not the time to reduce the supply of goods and increase the cost of living. Roosevelt ordered the slaughtering of thousands of young pigs, Obama paid to have serviceable used cars destroyed. Roosevelt’s avowed purpose was to raise the price of pork. Obama’s purpose was not to raise prices but used car prices have risen as a normal consequence.

The most dangerous thing a government can do in the midst of a recession is to raise taxes. Raising taxes, even a little bit, during a recession risks depression. Raising taxes substantially increases the risk proportionately.

THE ROCK AND THE HARD PLACE
Two other weapons government can normally use to fight a recession are lowering interest rates and lowering taxes. But taxes are already low and interest rates are near zero. On both the fiscal and monetary fronts, we are out of ammunition. Only an external event, a change of administration or the passage of time will lead us out.

THE MAJORITY IS SILENT NO MORE

It is easy to lose sight of the fact that conservatives are the majority in the land. We leave the shouting and screaming to those who think they can bring perfection to an imperfect world. Conservatives busy themselves with tilling the fields, striving to achieve their goals, and yes, painting that picket fence so often derided by the left. We find time to teach our children right from wrong and to help a neighbor in need. There is just no time left to complain about what government has not done for us.

But every once in a while, into the life of a man, a society or nation, there comes a mortal threat. Normal pursuits are put aside. We rise to meet the threat and we are the silent majority no more. Our voices are heard; heads are turned, the left is surprised. They forgot we were there. The left is confused for they understand us not. First they smirk, then they fear, then they fight with smear once that they see that we are here.

The left fears our guns but we bring not guns to the fight. Our weapon is our vote. We are the majority but that is to no avail if we do not bring our weapon to the scene of the battle. Vote. What else can you do? You can give up a day in November and volunteer to drive voters to the polls. That’s just one idea.

GROWTH OF GOVERNMENT IS DEMOCRACY’S DESTINY

The Vicious Cycle

No worker wants to see his employer downsized. Downsizing brings job insecurity and lessened opportunity for those employed. Government employees at all levels realize it’s the Democratic Party that fights for growth and expansion of government, and with it, security and opportunity for the government worker. The Democratic Party is the party for the government, of the government and by the government.

The rest of the people pay for the salaries and benefits enjoyed by government employees. The Republican Party calls for limited government, reduction of government expenditures and lower taxes. The Republican Party is the party of the rest of the people.

The recent passage of the 26 billion dollar funding bill is a prime example of the vicious cycle at work. It was promoted by the Administration as a bill to fund salaries for teachers, police, firemen and first responders, which indeed it was, government workers all.

The bigger government gets, the more people there are who vote for bigger government. Democracy is a fragile system. This is just one of its vulnerabilities.

TAXES HAVE CONSEQUENCES

Rational Expectations

John Kerry docks his yacht in Rhode Island where taxes are lower rather than in Boston Harbor which would be a little more convenient. Kerry isn’t the only one, you can be sure of that. Rhode Island gets more revenue because their tax rate is lower. Massachusetts gets less revenue because their tax rate is higher.

Do not be critical of John Kerry for moving his boat, excuse me, his yacht. It was the smart thing to do. You and I would do the same if we had a yacht, in my case it would be a boat.

This is but one example illustrating why a 10% increase in tax rates does not produce a 10% increase in revenue. People have alternatives. Economists have a name for it. They call it the law of “Rational Expectations”.

Debt and Taxes
California and New York are two of the states in the nation with the weakest balance sheets.
California and New York are two of the states in the nation with the highest rates of taxation.
This is not a coincidence.
Bob B

ALINSKY RULE PREVAILS AT THE MOSQUE

Rules for Radicals Tactical Rule #4 “Make the enemy live up to their own book of rules. You can kill them with this, for they can no more obey their own rules than the Christian church can live up to Christianity.”

Obviously, our rule in this instance is freedom of religion.

In Act II of his plan, Alinsky also states the job of a community organizer is to agitate. He says flat-out in the book, – a good community organizer is a community agitator. Get the people riled up, then, use the turmoil to your advantage.

RAUF, THE IMAM OF THE MOSQUE

Certainly, the Imam Feisal Abdul Rauf is no follower of Saul Alinsky. He doesn’t need to be in order to know and employ the principles and tactics. Alinsky didn’t invent them; he simply put them together in clear and cohesive form. Knowledge of Alinsky’s teachings gives an observer great insight into the motivation behind the actions of anyone who strives to change our government or our way of life.

The Imam has chosen controversy. He has no interest in pleasing the crowd. He wants to stir up the crowd. He seeks a victory for Islam and there can be no victory if there is no battle to be fought. Appeals to his “sensitivity” are naïve in the extreme, almost silly. Lower Manhattan is not a haven of Muslims; it is a symbol of free market America. Building a 100 million dollar monumental Mosque in that location, rather than close to a Muslim population, makes no religious sense at all. But as we have said before, it is a brilliant move for the advancement of Islam.

NOTE: We had this article written, all but the editing, when we discovered the video by U.K. personality Pat Condell. We are not a fan of the man but must give the devil his due. So often it seems, those on the outside looking in have a clearer view than those who are within.

THE POST-AMERICAN PRESIDENCY

The following has been taken and edited from an article originally published at Town Hall by Random Thots on June 03, 2009 under the title “Does Obama Really Loathe America?

From a UK newspaper, the Telegraph,
“No leader in American history has gone to greater lengths than Barack Obama to make amends for his own country. From condemnation of American “arrogance” in a speech in Strasbourg to acknowledging U.S. “mistakes” before millions of Muslims on Arab television, Obama has rarely missed an opportunity to apologize for the actions of the American people.

President Obama has elevated the art of national self-loathing to new heights, and seems to delight in prostrating the most powerful nation on the face of the earth before its critics and rivals, especially on foreign soil.”

From Michelle Obama,
Upon the nomination of her husband,
“I have never been proud of America, until now”

Later, when speaking to a group of children at a school,
“America is downright mean”

From the man whom Obama most looked to for guidance in his life,
“America lies! Lies! Lies! God damn America ! “

From Obama’s community organizing comrade,
I only regret we did not do even more bombing of American facilities (paraphrased).

From the Russian newspaper PRAVDA,
“Like the breaking of a great dam, the American decent into Marxism is happening with breath taking speed.”

“The final collapse has come with the election of Barack Obama”

Minutia?
Obama banished the bust of Churchill from the White House and sent it back to Britain.
Obama smiled and thanked Hugo Chavez for his gift of a book condemning America.
Obama accepted without comment the prominent display of a Che Guevara poster in one of his local campaign offices.
Obama launched his Senatorial campaign from the home of a man who told the New York Times in 2001 that the notion of the United States as a just and fair and decent place “makes me want to puke.”
In New Orleans Obama said “We had to realize that we were no longer the America we had hoped to be…but here’s the good news America was ashamed and shocked.”

Does this not all add up to something? Who is this man? What are his real beliefs, his real goals?

Author Pamela Geller has undertaken the task of providing some answers to those questions in her recently released book, The Post-American Presidency, The Obama Administration’s War on America. Here is a sampling of chapters: Obama and American Exceptionalism, Obama and Jews, An Islamo-Christian Nation, Destroying the Prestige of America.

We recommend the book.
Disclaimer: The author’s blog, Atlas Shrugs, is a long time member of Random Thots prestigious and exclusive blogroll.

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MISSING AT THE MOSQUE

Understanding Islam

One of the comments often heard about the building of an Islamic mosque at ground zero goes something like this, “I think they have a right to build it there, but is it wise for them to do so?” Let me tell you, it’s not just wise, it’s brilliant!

What’s missing from the debate over the Mosque is a clear understanding of Islam and the muslim religion of Mohamedism. There is a good reason why the Islamic sponsors of the Mosque have chosen the name Cordoba House, why they want to build it where they do, and why they want to have a dedication ceremony on Sept 11th. At Random Thots we think it is vitally important to have a basic knowledge of some of the history and core beliefs within the muslim world. For many years there was no need, there is now.

Islam is more than a religion. It is the law of the land, it is territorial, it is Jihad, it is a nation. It is a nation without borders, not because its location is not defined but because its location is limitless. It encompasses the entire world. Other religions recognize religion and government as two different things, no matter how closely tied they may be. In Islam they are one and the same.

The goal of Islam is the establishment of the religion/government of Mohamedism worldwide. The first concern is to purify the Holy Land (all of the Mid-East) of kuffa (non-believers) then to rule the world beyond. Once that has come to pass, peace will prevail throughout, and not before. This is the peace Islam so earnestly seeks. Jihad is the struggle to complete the work that will bring about that time of peace. Christians and Jews also envision a time when the world will be at peace, but believe there is nothing they can do to determine or hasten the time.

Islam divides the world into two realms. dar al Islam (the world of submission to and acceptance of Allah) and dar al Harb (the world of war). To an Islamist you are either a believer or an abject enemy, an enemy of God and man and standing in the way of peace.

Jihad in dar al Harb, the realm of war, is fought on two fronts, both well understood in the muslim world. The first is the militant front, the flying of planes into the WTC towers, bombing a train in Spain to swing an election, and bombings like those in Bali and London. These are the hot heads, lesser in number but louder in voice than the majority. For the vast majority of devout muslims violence is not their way. Nevertheless, the militants are doing God’s work, praise be to Allah.

The second front of the jihad in the realm of war is the exhortation to follow the command of diaspora. Go into the lands of the kuffa and populate but do not assimilate. Conform and wait, but be not one of them for they are your enemy. Mohamed preached it in the 15th century. The concept later became known as that of the Fifth Column. The term was first used by Emilio Mola, a Nationalist General during the 1936–39 Spanish Civil War. As his army approached Madrid, there was concern that the four columns of his forces would not be sufficient to take the city. He said, not to worry, his troops were supported by a “fifth column”, a column of his followers inside the city.

Before we put this all together and relate it to the Mosque in Manhattan there is one more thing to cover. It’s a bit of history. Cordoba, a city in the southern region of Spain, was the first European city conquered by the Muslim Army. It remained under Muslim control for more than 700 years until the advancing Crusades led to its being returned to Christian governance. The name Cordoba has enormous significance in the Muslim world. It symbolizes the peak of their power as well as a source of great resentment.

Symbolism is as much a part of battle as guns and cannons. Our National Anthem is the Star Spangled Banner. The raising of the American flag on the Island of Iwo Jima is the powerful symbol of our WW II victory in the Pacific. The Muslim world is watching. The erection of Cordoba House in the shadow of Ground Zero will stand as an Iwo Jima to the Muslim world.

Some American’s will see the approval for the building of the Mosque as a concession to religious freedom, others will view it as an insult to those who died. A few may even be fooled into believing the claim that it is an outreach from the Islamic community seeking better “understanding”. But there will be no division of thought in the Muslim world as to what it signifies.

So you see, to build it some distance away and dedicate it on whatever day it is completed would turn a monument to Islamic progress into a conciliatory defeat. If it comes to that, and we don’t believe it will, it will not be named Cordoba House.

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HOW LONG WILL THE STICKY RECESSION STICK?

Recessions are a natural element of the economic cycles in a free market society. They even serve a useful purpose. Recessions put a damper on the irrational exuberance that leads to boom and bust. Recovery from recession is just as natural as its recurrence.

MOTHER OF SEVEN Photo from FDR Library via National Archives and Records Administration

Since the end of the Great Depression the average length of a recession has been 11 months; the longest was 16 months in duration. The National Bureau of Economic Research is the universally accepted arbiter for determining when these periods began and when they ended. The NBER has set December 2007 as the start of the current recession. That makes it 2 years and 9 months old. It is by far, the longest recession on record.

Banks have cash to lend, corporations are flush, interest rates are low, labor is plentiful and cheap. These are the seeds for renewal of growth that naturally occur in any recession. But they are not taking root. It is the herbicidal policies of the Obama Administration we have to thank for that.

Taxes will rise but the details remain unknown. The rule of law has been subrogated to executive dictate. Assets have been acquired by government through intimidation. Unions are supported by government as seldom before. Obamacare has significantly increased the cost of adding new employees to a payroll. The Dodd and Frank Act for financial reform has given regulators carte blanche to make the law, no one knows what’s in store. Cap & Trade and Card Check hang as specters for 2011. The Federal debt is set to soar. Socialism is knocking at the door. There is no need to wonder why business is not rushing to expand and banks are reluctant to lend.

The collapse of the mortgage industry brought on this recession. It was the Community Reinvestment Act (CRA) and the actions of the government sponsored enterprises Fannie Mae and Freddie Mac that fed the real estate bubble which, one day, simply had to burst. It was Andrew Cuomo, Secretary for HUD who threatened the banks because “only” 42% of their loans were to sub-prime lenders. This was not a naturally occurring recession. It was government induced and now it is being government prolonged. It is FDR redux.

What did Reagan say? “Government is not the solution to the problem. Government IS the problem”.

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911 VICTIMS SPEAK OUT

Freedom’s Lighthouse reports

The Drudge Report is leading this morning with the headline, “Shock Poll: 1 out of 4 Think Obama Muslim.” They link to a Time article that says 24% believe Obama to be a Muslim:

Considering his muslim roots, his statement that America is a muslim country, his de facto denial of Islamic terrorism and the sternness of his admonishment to Americans opposed to the infamous mosque, I ask, where is the shock in a poll that reveals that 24% believe Obama is a muslim?

From Time Magazine

The survey also revealed that many Americans harbor lingering animosity toward Muslims. Twenty-eight percent of voters do not believe Muslims should be eligible to sit on the U.S. Supreme Court. Nearly one third of the country thinks adherents of Islam should be barred from running for President — slightly higher than the 24% who mistakenly believe that the current occupant of the Oval Office is himself a Muslim. In all, just 47% of respondents believe Obama is a Christian; 24% declined to respond to the question or said they were unsure, and 5% believe he is neither Christian nor Muslim.

Mistakenly believe? Is that a fact? Does Time know something the rest of us do not? Put me in the 5%, at least for now. But I will not declare the 24% “mistaken” for they could be  right.

This video has already gone viral but it cannot be posted in too many places so we offer it here. If you have not seen it yet, view it now.

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