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Saturday, January 2, 2010

Treason, Sedation and Eight (8) Trillion Dollars of Government Spend

First some definitions...

"Treason against the United States, shall consist only in levying War against them, or in adhering to their Enemies, giving them Aid and Comfort. No Person shall be convicted of Treason unless on the Testimony of two Witnesses to the same overt Act, or on Confession in open Court."  http://en.wikipedia.org/wiki/Treason

Therefore...."Any person or persons who preform Treason is then a Traitor"  (Rohr 2010)

"Sedition is a term of law which refers to overt conduct, such as speech and organization, that is deemed by the legal authority as tending toward insurrection against the established order. Sedition often includes subversion of a constitution and incitement of discontent (or resistance) to lawful authority. Sedition may include any commotion, though not aimed at direct and open violence against the laws. Seditious words in writing are seditious libel. A seditionist is one who engages in or promotes the interests of sedition." http://en.wikipedia.org/wiki/Sedition

If treason is defined by our Constitution as giving another country "Aid" then there is a lot or "traitors" holding office in our Government. Aid to another country can be interpreted to mean direct or indirect aid. It is reasonable to assume it can also be the result of a direct "cause of action" or "inaction".

In less than 14 months, our Government financial leaders have spent over 8 Trillion Dollars, (that's $8,000,000,000,000.00+), using the credit of the United States.  This means they spent money they did not have.

Why spend all that money you might ask? If you are a student of Economics, it's is easy to see why.

This Administration is following Keynesian Theories in which a Government can re-balance the economic equation of Investment, Commercial and Government by spending money equal to the decline in the total economy. If one area slips (declines) such as Investment, the theory proposes that the GDP can be rebalanced through an increase in Government Spending. 

The problems created by spending this amount of money are several fold.
  1. This spending as based on a theory which is unsound and will not meet the objectives of returning the country to sound financial and employment footing.  It has been proven that while the theory is correct in a vacuum...macro economic forces are not in a vacuum, they are now global, systemic, and not isolated to a single spending stream no matter how large...including any amount the government might spend. 
  2. Unless Government spend is widely dispersed, it will not have the "rising tide will float all boats" effect that was intended.  As we will all witness shortly, the spend has been placed on state pork programs to get the bills passed, community organization projects (Acorn), on large companies in defense and some infrastructure (Boeing, IBM, GE, GD), on programs designed to increase efficiency in health care (more GE), and on propping up the banking system further than TARP (mortgage toxic asset recovery). The point here is that "the spend will not raise the tide", but become highly visible as one sector gains and in opposite, disastrous as other sectors visibly FAIL ON.  What is needed is actions which will benefit all..not the few.  
  3. This spend does not adequately address the core need...which is allowing the deflation of the "bubble" to take place in natural order and timing.  In a world of inflating and deflating bubbles", in simple English, "the longer it takes for a bubble to deflate, the longer the time to reach inflation and stabilization" (Rohr 2009).  Any action or inaction which serves to slow down or change the natural timing and order of things is a wrong approach. If unchecked, the Government could extend the time it takes to recover by literally decades. Many Economist agree that the recovery efforts have served to extend the time to recovery, not decrease it.  
  4. This spend is based on debt. In in 1930's Depression, Government was fiscally solvent, had gold reserves equal to the money in circulation and outstanding credit in the world financial community even though it was recovering from WW1 repayments. In the world we live in today, Government debt based spending is simply good money (secured by making loans) chasing the wrong approach...a potential means to bankrupt the country.   
  5. This spend will not increase base value for all taxpayers...the same ones who will ultimately fund the spend in the first place.  All taxpayers should see something for their money...or else why spend the money. It is very hard to find programs which raise value for all taxpayers, but I can think of one simple, yet incredibly effective program which would raise the value for all taxpayers. Return the U.S. Currency to the gold standard.  In this action, everyone would benefit and no one state, company or individual would gain over another. All would share in the wealth stabilization. Our nation debt rating would immediately go from damaged to solvent. Your personal wealth will reverse the current decline and increase due to th solid footing.  Even countries who hold our paper (our debt), would benefit knowing that their future payments will be on par with the same gold they now seek to hedge the ongoing devaluation of our Dollar.       

In Summary:
  1. This spend will add to the problem...not repair it. From where I am sitting, the outlook is not good for any repair in the immediate next few years. I feel we are on the verge of a US and perhaps a Global Depression...one that will make the 30's look like a "good time".  Our economy is 40% of the worlds economy. If we go down, the world economy will go down...inspite of what you are hearing that says China is this, or China is that.  
  2. It is not the Government's responsibility to intervene in normal market actions.
    Markets go up, and markets go down...all part of a normal market dynamics as it responds to changes in marketplace demand and supply, efficiency and value. What specific Constitutional power grants the right to spend my money, my son's future income and maybe his son's too, without general voter approval on any bill or program?  Is it the article which states "the Government shall maintain the value of it's issued currency?" Adjusted for inflation, you would need $29.50 to buy just one 1906 dollar. It looks like your Government has done a fine job holding up the value of the currency. I want a control over future Government spending that goes far beyond current law.  I want the people who are paying the bills to make the final decision.   
  3. "If our Government leaders are deflating the value of the dollar through increase in our national debt without Constitutional authority or evidence of clear success, then those same are traitors to our county and have aided the enemy by weakening this great nation...It's that simple" (Rohr 2010).
(On the side:  I have a problem with this statement under the definition of "Sedation"...deemed by the legal authority as tending toward insurrection against the established order. Deemed by what legal authority? What if the cause is the same authority creating the reason for the overt speech and organization...what then?  In a contest between the First Amendment and Sedation who wins. Or, how about this jewel?  "Sedition may include any commotion, though not aimed at direct and open violence against the laws." Any "commotion"??? How about talking to another person in public with a conflicting point of view in a "highly emotional manner"? Is this now a commotion punishable by Sedation laws?
  • Are you becoming afraid of your Government?
  • Are you happy with all this "hope and change" you Obama voters wanted?
  • Do you want to have a say in how you tax money is determined and spent?
I know now that we have let the power shift "from the people" to "the few in office who do not have OUR best interests at heart" or fear a nation without GOD...the very thing our founding fathers warned us about.   

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