Donald K. Allen for President

Top of the Month

January 1, 2009

When our new President’s economic stimulus package of one trillion dollars hits our economy, you won’t notice any change. But the money in your purse, wallet and bank account has slowly, day-by-day begun to lose over ten percent of its value. This is the “hidden” tax on all of us that the Federal Reserve creates when it prints more money out of nothing. Dollars are worth less, and everything costs more as a result. Now there will be a lag time before this becomes obvious, and that is how the Federal Reserve is able to tax us without representation or our consent, and without us knowing what is happening.

Available money has for many years been accounted for as M1, M2, or M3 (see http://en.wikipedia.org/wiki/Money_supply). M2 is a relatively accurate figure for what our economy now has, and it is a little over seven trillion dollars. With the stimulus package mentioned above added to the M2, then you can safely say that whatever costs seven dollars right now will cost you eight dollars in a few years.

This is always the result of a central bank printing money with nothing (gold or silver) to back it. In every case in history, the inevitable outcome is runaway inflation, and there’s no reason to even think that it won’t happen here. Many people who understand this dilemma will go out and buy durable goods or actually buy gold or silver (if you can find it), because the longer you hold onto your money, the less it will be worth. Some people are shocked that many Americans are buying guns, but there is sound logic to this. With runaway inflation, there will be a spike in crime as those who have nothing try to take things from those that have. Also, guns tend to go up in value, and with the threat of our new President banning guns, they may become worth their weight in gold. So, right now, the two things worth having are guns and gold, and it appears that the gold is getting scarce as people hoard it away in preparation for the collapse.

Crazy things are coming to light now and not just the triple-speak financial investment schemes of Wall Street. The Nation has been reintroduced to the infamous Charles Ponzi of one hundred years ago when Mr. Madoff used his techniques to swindle thousands of people out of billions of dollars. But wait, there’s more! Did you know that there is a Ponzi scheme currently in operation that makes Madoff and Ponzi together look like pikers? Yes, it’s called the Social Security System, and it functions in exactly the same manner. New workers’ (investors’) money is used to pay earlier workers (investors) benefits. Who ruined what was once a viable operation, much like Madoff’s early financial work, because they just couldn’t keep their hands off of all that money just sitting there in our Treasury? Did you guess right? Congress. It just boils down to that old devil, greed.

Some are calculating that our economy will bottom out in March 2009, so look for things to get worse before they (hopefully) get better. Anything is possible at this point. I’m not as concerned about our economy as I am about the preservation of our Constitution. I’m still 110% in favor of The Fair Tax (http://www.fairtax.org/site/PageServer), which will tax us through our consumption, and not our incomes. Not on what we earn, but on what we spend. In conjunction with The Fair Tax is elimination of the 16th Amendment to our Constitution, which reads, “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.” Of course, Congress isn’t going to do this willingly, and will have to be forced to by the electorate (we the people). This would inhibit their ability to tax and spend.

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I recently read that we are two state votes away from declaring a Constitutional Convention (Con-Con), which would allow chosen representatives from each state to decide upon matters regarding our Constitution. This could provide an avenue for good changes, such as setting a cumulative term limit for Congress at 12 years, establishing “loser pays” legal reform, and possibly even enacting The Fair Tax. However, it might also allow negative changes, such as removal of the “natural born Citizen” requirement from Article II, Section 1. Thus far it appears our government is willing to ignore this particular prerequisite in favor of accepting the popular choice for President, so it probably just doesn’t matter. For that matter, if the wrong people are allowed to participate in the Con-Con (by wrong people, I mean those with a partisan agenda), then they could conceivably destroy the entire Constitution and write another.

There is yet another gathering afoot, which may be confused with the Con-Con. It is the Continental Congress 2009 (http://www.wethepeoplefoundation.org/#LatestNews), which is an effort by We The People Foundation to gather American citizens together to unite their voices in a call for action by Congress to address important national issues. This will be an interesting year. Can the American people prevent our indifferent government from destroying this Nation? Will we continue to be “One Nation, under God?” Isn’t it time you became more involved in the future of our country than just casting a vote?

Energy Crisis

Now that the price of gasoline is way down from last year and we aren’t crying about $4-or $5-dollar-a-gallon robbery at the pump, Americans have lost interest in our energy crisis. If the roof’s not leaking, why fix it? President Obama, who received huge donations toward his campaign for President from Middle East OPEC countries, isn’t interested in hurting their economies, and jeopardizing future donations, by opening up homeland drilling to make us independent of foreign oil. Look for another oil crisis when it’s coming time for his reelection, and you’ll get all kinds of talk about energy independence.

Meantime, Mr. Obama is going “green” with projects for wind and solar energy. Is he shutting down ethanol production, which is pathetically counter-productive? Is he pushing development of tidal energy, algae oil production, hydrogen fuel cells, and high-capacity storage batteries? Is he lining up electric companies across the country to fund his reelection by assuring them that he will favor their futures?