Live Free or Die is 200!

Today, New Hampshire's beloved motto "Live Free or Die," turns 200 years old. Now let's hope the people of this state will remember its meaning over the next 200 years.

Ben Bernanke is an Ignoramus

We trust this guy with controlling our money?

Letter to Paul Hodes

It is not often that I write my congresscritter. It is a futile exercise that ultimately only serves to add legitimacy to their actions. We still have the "right" to voice our opinions to our representatives in government. They can claim they weighed the thoughts of the people and that they decided accordingly. A load of hullabaloo if you ask me, but I think ending the Federal Reserve (well, in this specific instance, auditing it) is one of the most important issues of our time. The evil that is this organizatin cannot be overstated. So, to further the end of auditing the Fed, I sent the following letter to the "Honorable" Paul Hodes:

Rep. Hodes:

I am writing to request that you join 271 other Representatives in sponsoring H.R. 1207, the Federal Reserve Transparency Act of 2009.

The Federal Reserve, since its inception in 1913, has caused massive devaluation of the dollar and the biggest financial crises this country has ever seen, including the Great Depression. Over the past century, many influential economists, such as Ludwig von Mises, Friedrich August von Hayek, and Murray Rothbard, have noted that central banks have the power to destabilize an economy through their manipulation of the money supply.

An audit of the Federal Reserve will likely highlight the enormous increase in the supply of money that has occurred during this current financial meltdown. The Fed has sent this money, often without congressional approval, to private companies for their own profit. The "independence" of the Fed threatens our Republic, our economy, and the quality of life for every American.

Sincerely,
Tyler Stearns

Faulty Depression History

Every time I see an investment product, like a stock or mutual fund, they always list the past earnings (always positive, of course) as a selling point. But if you notice, they are always sure to put in: "past performance does not guarantee future results." This is good advice, however. The economy consists of millions, billions even, of autonomous actors making their own decisions in an ever-changing environment. It would be foolish to look exclusively to the past to see into the future.

That is why I hate when people like Christina Romer, chairwoman of Barack Obama's Council of Economic Advisers, point to empirical evidence from the Great Depression to justify the policy of today as if it will have the same effects. But what I hate even more is when the empirical evidence doesn't even support the claim. Romer thinks it was a reduction in deficit spending that caused "the depression within the Depression" of 1937. Luckily we have Mises.org, where a great man like Robert Murphy can post an analysis of this claim. Click the link to find out why Romer's Keynesian fallacy is wrong. Hint: the empirical evidence is ambiguous and contradictory.

Interested in Purchasing Silver?

I have a small stock of .999 silver. This includes 1 oz. rounds and 10 oz. bars. I also have various 90% coins and other collector's coins. Send an email to livefreenh@hotmail.com if you are interested.

I'm Glad He's Here

Oops. Turns out the U.S. government will have to borrow $9.3 trillion over the next decade to pay for Obama's inane projects. Right now the national debt stands at just over $11 trillion. Our total Gross Domestic Product equals $14.5 trillion. So if we add all of that new debt to our current debt, we will have a national debt 140% of our total national GDP. That means it would take over an entire year to repay all the government owes; that is over a year of paying for nothing but debt and nothing else. And to bring it a little closer to home: $20.3 trillion in debt equals almost $67,000 per man, woman, and child in this country. I am sure it is all worth it, Barack.

Anatomy of the Bank Run

The case of IndyMac, the largest regulated thrift institution to fail in U.S. history, shows just how fundamentally unsound our government supported banking system is. The fractional reserve banking swindle can only continue so long and I hope the IndyMac failure will open some people's eyes.

Of course Murray Rothbard wrote it best in his article "Anatomy of the Bank Run": "But in what sense is a bank "sound" when one whisper of doom, one faltering of public confidence, should quickly bring the bank down? In what other industry does a mere rumor or hint of doubt swiftly bring down a mighty and seemingly solid firm? What is there about banking that public confidence should play such a decisive and overwhelmingly important role?"

Unfortunately, government bureaucrats are playing the same tune now, blaming Sen. Chuck Schumer for the run on IndyMac. He wrote a letter that "expressed concerns about IndyMac's viability." Schumer is correct to deny that he had any part in this, for as Rothbard noted, how can any business be sound if a mere rumor sparks a total collapse?

But Schumer is wrong to blame this on IndyMac and those "greedy capitalists." The fault lies with the government; without the Federal Reserve and the FDIC the fractional reserve banking scheme couldn't continue. We will only see sound banking and real money when the Fed, the FDIC and all those other bureaucracies are abolished.

Reality Check: The Causes of Inflation

Frank Shostak has written a simple yet brilliant article over at Mises.org explaining the recent increases in inflation. Ben Bernanke and other establishment economists will have you believe that inflation is caused by high commodity prices, such as the record price of oil. Mr. Shostak notes, correctly, that no single commodity can cause a general rise in prices. Only an increase in the supply of money and credit can cause the overall level of prices to rise. I won't try to explain any further; just read Mr. Shostak's uncomplicated and lucid essay on the true causes of inflation.

How Many Americans Have to Die in Iraq?

We should continually ask ourselves that question. Are 4,087 dead and 30,333 wounded not enough to realize there has been enough blood spilled? Remind yourself of the lives lost to this unnecessary occupation by visiting the casualties page at AntiWar.com. We all need a good slap in the face now and then. If that isn't good enough, then have a glance at the faces of those who've died.

Congratulations to Bob Barr

Bob Barr just won the nomination to be the Libertarian Party's 2008 presidential candidate. As a Republican and libertarian I saw Ron Paul as the perfect candidate this election cycle. I still support Dr. Paul and he may still get my vote in November. But there is no chance I will support John McCain. From campaign finance to the war in Iraq to immigration policy McCain has been on the opposite side of true conservatives and libertarians. Bob Barr will offer us another option. He is a former Republican Congressman from Georgia so we know he can get Republican and broad-based support. He can also give an outlet for those who don't want to write in Ron Paul come November.

I still haven't made up my mind who I am voting for, but I can say that Bob Barr is near the top of the list. Congratulations to him and the Libertarian Party. Visit his website to learn more.