Littlestuff Weekender-1-29-2011

Article I, Section 8 of the Constitution of the United States:

The Congress shall have the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts and excises shall be uniform throughout the United States;

To borrow money on the credit of the United States;

To regulate commerce with foreign nations, and among the several states, and with the Indian tribes;

To establish an uniform Rule of Naturalization, and uniform laws on the subjects of bankruptcies throughout the United States;

We’ll include a portion of Art. I, Sec. 8 each Saturday for the next few weeks so that readers can become very familiar with the enumerated powers.

The enumerated powers were listed so that the reach and scope of the federal government would be confined to a clearly defined group of tasks, responsibilities and powers. As we share these over the next few weeks, consider how many unconstitutional functions the government has undertaken. They’ve invaded the prerogatives of individuals, taken over many roles of the states, and generally exceeded their authority in every facet of life in the United States.

Monday, I’ll be meeting and speaking with the UA 912 Group in Upper Arlington. We’ll be at MCL Kingsdale, 3154 Kingsdale Center, UA, OH, 43221. We begin at 6:00pm and will be discussing the Principles of Libertarianism. I hope that you can stop by.

Next weekend, February 5^th and 6^th, we’ll be in Flint, Michigan to be the dinner speaker for the Michigan Libertarian Party LibertyFest. On Sunday, the 6^th, we hustle back to Ohio to attend the 40^th Wedding Anniversary party for my sister, Karen, and her husband, David Stombaugh. Pat will leave from there to go to Butler County where she’ll be staying with Kelly’s family for a few days.

On February 9^th through 13^th, I’ll be in Washington, D.C., for the CPAC convention with 10,000 of my closest friends.

Following Valentine’s Day, I’ll be starting my garden seeds indoors.

Even though we have snow all over the place, and temperatures continue to hover in the 20’s, I’m beginning to get “the itch” for spring.

When we look around at the federal and state political class, I am so amazed by their seeming indifference to our precarious financial circumstances. They must be so self-focused and dishonest in order to treat our situation so cavalierly. I suspect that they are tone deaf ….and brain dead.

When I become discouraged, I recall that life still goes on. Babies are born (congrats to Evelyn Kolb, Mom, Dad and sibs), anniversaries are celebrated (kudos to Sis and Dave), little victories are won, and hope continues to sprout in the most unlikely places.

The little redhead has the word for today:

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The next month or so will be critical for determining the direction and efficacy of the new Congress. Hearings will be called, bills will be introduced, and we’ll get a strong sense about their intentions for dealing with our fiscal situation. By May we should begin to see results as the products of the committees move to the floor. August and September will also be critical times as they prepare the budget for the next Fiscal Year beginning in October. They have no slack. Weakness and timidity should not be tolerated. I fear that even if the House steps up, the Senate (D’s and R’s) will blow it. Of course His Majesty, the Obamination, will probably veto any effort to place our fiscal house in order.

Have a wonderful weekend. I plan to attend an auction today if everything works out. I’ll be back on Monday.

Comment: cearlwriting@hotmail.com   or  www.littlestuff-minoosha.blogspot.com

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The Real Extremists

Because we, you and I, believe in constitutional government and fiscal responsibility, we are often labeled as “extremists.” The sneering condescending lefties aren’t the only ones who describe us this way because the establishment GOP joins the chorus when they huddle in the cloak rooms and bars of Washington, Columbus and county seats across the nation. Apparently they identify people who think differently from them as extreme. Underlying their definition is the idea that anyone who questions or opposes the status quo is an outlier…outside the mainstream…extreme.

Politicians in the United States love to extol the contribution of the middle class to our nation. Phrases such as “the working people,” “small businesses,” and “everyday people” are commonly uttered and heard during political campaigns and in policy debates. It seems, at times, as if the entire political world were focused on the preservation and potential of the vast middle class. Our well-being is portrayed as the dominant impetus for every legislative and government initiative. Their rhetoric is misleading. Their efforts are not directed toward the benefit of the middle class because the political class is primarily composed of extremists. Yes, you read that correctly…politicians and the government bureaucracy are extremists.

Their extremism is rooted the fact that they view some entities as Too Big To Fail (TBTF) and at the same time view some of our citizens or residents as Too Small To Succeed. Even a cursory examination of the protected classes would illustrate that the powers, interests and resources of the government are primarily reserved to protect the most extreme elements of our economic population. The great unwashed middle gets lip service and IRS invoices. As the two-faced political leadership continues to sing the praises of the middle class, they implement policies that endanger it. Clearly a new song book is in order. To give you a mental image of how the base of our republic is abused, imagine the following:  You have a small pyramid and each side is 4 inches square. Also, you have a solid rubber ball that is 8 inches in diameter. Now, if you were asked to balance the pyramid on the ball, you could do it. It may require a few attempts for perfect balance, but in the end you would succeed. That image represents the delicate balance of an economic system undergirded by a solid, but flexible, group of producers. Now, balance the pyramid on the ball by using one of the points of the pyramid. I can almost guarantee that you will run out of patience before you succeed. The tangential point where the pyramid contacts the ball represents the smaller productive base that is available to support the system.

Each new law, regulation, tax and restriction has some measure of a negative impact on the producer; however the huge crony mega-corporation and the union harlots are immune from the ultimate damage because they are too big to fail. The non-producers are protected because of the government’s compassionate use of your productivity and money. The assumption is that you will become accustomed to the perpetual squeezing of your liberty, your property and your labor and meekly go along. Simple observation informs us that the pyramid cannot balance on the point for very long. It must topple. As I see it, the only answer for the preservation of the middle is to drive the extremists from power. We must shrink the pyramid, enlarge the ball, and destroy the extremists’ control of our lives and our livelihoods. Extremism has proven to be a seductive vice in our recent history. It is time to silence the siren’s song.

Comment:  cearlwriting@hotmail.com  or  www.littlestuff-minoosha.blogspot.com

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Interest Inferno

You cannot drown an inferno by peeing on it. You can’t win a gunfight with a water pistol. You will never grow chickens by planting eggs, so why do career politicians expect us to believe that they are being responsible when they cut spending across the board by five per cent (5%)? The interest on the United States’ national debt is $600 million dollars per day…Six Hundred Million Dollars per day for interest on the national debt. Neither one defense armament nor one welfare check can theoretically be purchased or paid from the first six tenths of a billion dollars every day of the year. Obviously, there is no serious consideration about reducing the principle because our leaders continue to borrow funds to pay the interest on previously borrowed money. Good grief!

Cutting the federal budget in a meaningful fashion will require much more than token freezes and symbolic 5% across the board cuts. In order to implement significant reductions in federal outlays, the government must eliminate entire departments and their functions. Wholesale savings can be achieved only by re-orienting the federal mission from a “do all things for all people” to the constitutionally proscribed limited purpose for the government. We must, however, be cautious if the federal monolith were to suddenly rediscover its constitutional mandate because the nature of the political animal is to mandate that the states pick up the torch and provide the federally discarded programs. If you were to do an historical analysis of the Medicaid entitlement, you would be forewarned.

Alexander Pope wrote “Hope springs eternal in the human breast,” and expecting Congress to behave responsibly by massively reducing the size and reach of the federal government is like expecting elephants to fly in formation. As a result of their lack of courage, wisdom and integrity, we will be faced with a game of fiscal chicken in the United States. Cities, states and other governmental units will belly-up to the bailout trough while begging for some federal fiat funny money to put off the inevitable for a short time longer. If the federal government is the first to fail, it will have the same impact as a massive asteroid landing in the center of the nation….destroying much and disrupting everything. On the other hand, if one of the sates or several local governments were to collapse, then the ominous sound of clicking dominoes will reverberate throughout the land…and the globe.

Unfortunately for the sake of our nation, our citizens and our future, politicians lack the courage to do what’s right. Their priorities are to please all their constituencies and to kick the can down the road. The spending goes on, the borrowing continues (note the upcoming vote to increase the debt limit), the daily cost of interest grows larger, and “we the sheeple” get fleeced and slaughtered.

Oh, one final note. Even if they stop the borrowing (fat chance), and if interest rates climb upward, the $600 million dollars per day will be a pleasant memory.

Comment:  cearlwriting@hotmail.com    or   www.littlestuff-minoosha.blogspot.com

Mother, May I?

“Take a step backward.”

“Mother, May I?”

You’ve probably played or observed that game when you were in elementary school. The premise was that no activity could be initiated until you requested the permission of “Mother.” If you failed to seek the approval of the “Mother,” you were prohibited from taking the action, and indeed, would be penalized. Isn’t it wonderful that during your formative years, you were being prepared to be a willing and docile member of the Nanny State? I was doing some research Sunday afternoon, and my mind wandered off into the weeds…a common occurrence. I tried to identify at least one element of my life that is not impacted by a law, rule, regulation, ordinance or covenant. There may be some, but I was unable to recall them.

You have probably seen a picture of Gulliver when he was restrained by the Lilliputians. There lies the big fellow with multiple lines restricting his movements. He’s apparently conscious and aware, but he is incapable of performing the simplest task without the permission of the “little people.” Jonathan Swift has been rightly celebrated as a brilliant political satirist, and the enduring nature of his work is made clear by the germaneness of the Gulliver word picture. His 18^th Century work maintains its resonance today. All around us we can find evidence that we are being controlled by the little people. “You must do this,” “you may not do that,””buy a license, pay a fee,” and be certain to read the fine print are seemingly the sum and substance of our daily lives.

While President Obama pleads for a more civil tone in Washington, his bureaucratic minions are forcing us to say “please” every time we wish to do something for ourselves. My experience has taught me that forced politeness or civility often leads to smoldering resentment. Compliance and conformity with rules and regulations consume valuable chunks of our time and patience as we wait on “hold” for a live human voice to resolve our issue. We angrily attempt to decipher where our problem fits into the inadequate menu delivered by the monotonic voice as we stumble through the numerical options she offers. Even though we feel detached and insignificant as we struggle through the bureaucratic maze, we also know that the tentacles, the strings are real. We suspect that we have become marinated marionettes…in a pickle with strings firmly attached.

Do this, do that, don’t do this, and by all means never do that. At times it seems as if I spend my life saying “Excuse me” as I continually bump into the Nanny as I attempt to live my life, my way. Liberty should not be adorned with strings, chains and cables. Liberty should be packaged with ribbons and those clever little stickers. Strings, chains and fetters are not the essence of liberty. They are the antithesis of freedom. It is past time for us to sever the annoying threads of too-big government. The moment has come for us to assert our natural God-given rights and insist that Big Brother, the Nanny State, Mother and the whole damned controlling governmental family leave us alone. It is time that we pay the COST for liberty and freedom. Cut Our Strings Today…the cost is commitment and perseverance. The payoff is freedom.

Comment: cearlwriting@hotmail.com     or   www.littlestuff-minoosha.blogspot.com

Downside Up

In yesterday’s column we examined some jurisdictional barriers for a state that may want to declare bankruptcy. We concluded that the sovereignty issues involved created a huge impediment for a state to pursue legal insolvency. There are other issues that rival the sovereignty one, however, and they may be the most daunting to overcome. Anytime that an entity files for bankruptcy protection some stakeholders’ interests may be weakened or obliterated. Obviously if a state of the federal republic were to declare, the number of stakeholders would be legion.

First in position but probably last in consideration would the residents of the state who had purchased bonds to benefit from the double tax-free advantage. In essence the citizens loaned their state funds for capital improvements and special projects in exchange for their exemption from state and federal income taxes. These investors would probably receive the same level of return as did the corporate bond holders of GM and Chrysler….peanuts. The second group of bondholders is those who are not state residents but do receive the federal tax exemption. They would receive …dusty peanut hulls.

At the point of filing for the bankruptcy protection the state could not pay vendors for products or services without being charged with treating creditors preferentially. There are vendors all over Ohio and the nation who provide products and services to various state agencies, branch locations and offices throughout the state. In all likelihood these businesses would not receive any reimbursement. A similar scenario would be in play for the thousands of consultants and contractors engaged by the state and state departments to provide expertise and talent. The full-time state employees would probably enjoy some element of protection because the court would recognize that the ongoing operations of the state would require their presence. As an aside, a truly fiscally-conservative, constitutional –obeying jurist COULD capture the opportunity to pare the workforce to an affordable and constitutional number. It is unlikely, however.

Given recent history it seems probable that the most protected class of creditors will be the pension plans which are the primary tipping point of the problem. The Public Employees Retirement System (PERS) and the Teachers’ Retirement system represent the largest portion of the underfunded future needs, but also include the largest, most vocal unions in the statewide system. Consider, for example, how many voters or activists are represented by Ohio’s teachers and their families. In addition to the seven hundred or so public schools there is the extensive state university system plus the many community colleges, branches and specialty schools in the state. Beaucoup numbers of literate activists who have a very large stake in the outcome of Ohio reorganization. All in all, the interested parties who would be clamoring to protect their interests and their assets in the event of a bankrupt state of Ohio are massive in number and loaded with political clout.

Even if legal insolvency provided the best remedy for correcting the excesses of an upside down state, the difficulties of structuring an orderly process that doesn’t undermine the sovereignty of the state, but yet protects the interests of some very powerful stakeholders could be insurmountable.  Could the federal court impose a new state constitution on the citizens of the state? Could the court require compliance with federal mandates, or better yet, demand that the state nullify costly unconstitutional federal demands? Would the sovereign state be compelled to follow the rulings of the court, or could they be “cherry-picked” to recognize political realities? How extensive or how limited would the court’s power be? How many of the thousands of vehicles owned by the state could be auctioned? Anyone want a yellow dump truck that sleeps three?

Comment:  cearlwriting@hotmail.com     or   www.littlestuff-minoosha.blogspot.com