Littlestuff Weekender-4-7-2012

It seems that it’s a good thing that the market was closed for Good Friday because this has been a terrible week (and the futures for Monday aren’t looking so hot). The good news is that you probably aren’t buying any Spanish bonds which seem to be sliding in Greece. Let’s hope that this doesn’t happen to you (click link).

http://youtu.be/oMCsc4Iqvqc

Our economy shows feeble signs of recovery, but the artificially low interest rates, the excessive number of dollars created by the fed, our massive and growing debt plus a new round of anticipated mortgage foreclosures suggest a very rocky road ahead. If you watch the mainstream news, you may not be aware of our difficulties because the President is having an affair with Rosy Scenario. It doesn’t really matter because when the wheels fall off again, it will be, in Obama’s words, “Bush’s fault.” The driving motto of this administration seems to be “why tell the truth when lying is more beneficial.” All administrations and governments lie….frequently and unnecessarily…but this one is transforming prevarication into an all-consuming art form. Any astute observer cannot detect the multiple lies in any statement or announcement by or from the government. Our national tragedy is that we do not have enough astute people at this time to bring that behavior to an abrupt halt. Too many of our citizens are wandering in never-never land like this…..

http://youtu.be/FBtmaq0J2kU

It has been a glorious spring here at the Little Pat-Ch of Paradise. We have completed numerous outside tasks and are eager preparing to begin planting in about 10-15 days. We must be reasonably certain that the prospect of frost has passed and that our soil temperature is warm enough for the little plants and seeds. Ground moisture is rather good, and we’ve been getting enough showers to maintain it. Nearly all of our plantings are with heritage seeds meaning that in addition to the produce, we will harvest seeds for next year’s crop. I probably shouldn’t have written this paragraph because it may place me on another “watch list.” Oh well, the more the merrier.

http://youtu.be/OQT6piZOX7c

This past Thursday and Friday I sat in for Fred LeFebvre on the

6:00-9:00am morning show on 1370 WSPD. I will be continuing on Monday and Tuesday of this week (4/9 & 4/10). Join us at www.wspd.com then write me nasty notes as you critique my amateurism….. or not.

http://youtu.be/OQT6piZOX7c

It doesn’t happen very often, but this year Passover and Good Friday are on the same day. Christians sometimes forget that Christ was a Jew and observed the Holy Days. We together are “the people of the Book” as we share a major portion of God’s Word. To all my Jewish friends and readers I wish a very special Passover as you remember the protection provided by God when your ancestors were in bondage.

As a born-again believer, our celebration during this time is extra special. While Christmas is designed to celebrate the birth of God’s son and our eventual Redeemer, we cannot be certain of the precise dates. Holy Week, on the other hand, was the period immediately prior to the Passover. The Last Supper was a Passover feast. The week began with Christ’s triumphal entry into Jerusalem on Palm Sunday. The agony of the cross on Friday was His sacrifice for our sin, and His glorious resurrection on Sunday…..Resurrection Sunday!!!!

http://youtu.be/oYoZY9AEras

http://youtu.be/8M3_p2i6bH0

http://youtu.be/jdgvIAxPV0s

Have a blessed weekend.

cearlwriting@hotmail.com

www.littlestuff-minoosha.blogspot.com

Loose Change

If you purchased an item for $20.00 in 1913, the same product would cost you $459.93 today. That represents a 2199.6% rate of inflation. Is the product worth more than two-thousand times its original value? Probably not…. because the worth of the product has not varied, but the value of the money used to acquire it has gone down.  In other words….the (formerly) high prices for real estate and homes and nearly every other purchase in our market baskets are a result of our money becoming worth less…..and closer to becoming worthless. The decreasing value of our currency means that most people are constantly scurrying to earn enough so as not to lose too much ground.

Though conventional wisdom states that inflation or weakening currency is good for borrowers because they repay with cheaper dollars than those they borrowed, every other aspect of life for the typical individual buyer increases in price thus rendering the payback gains as negligible.  Besides, borrowing money should be a thoughtful process that weighs the probability that the use and value of the product outperforms the capital cost and carrying charges. If one borrows money merely to benefit from a cheaper-dollar payback, the underlying reason for the initial purchase is probably of questionable value. The scrambling that is necessary just to outrun the inflationary cycle could consume more energy than the minimal gains that are realized.

The economic uncertainty that results from an accelerating inflation cycle lures investors and business owners into unwise decisions. If the “chickens come home to roost” the faulty decisions will be exposed, and various sectors of the economy could be negatively impacted. Inflated money demonstrates the unreality of a currency or coinage that is based on nothing. There are no precious deposits that insure the stability of the money, and there is no underlying basis for valuing it. The value of an inflationary currency must ALWAYS be relative to other currencies and their purchasing powers. As nations and their economies ebb and flow the relative positions of their monies will change based on the underlying strength of each nation. It is an unstable system that allows for nefarious manipulation (see Soros, George). A sound money supply must be backed by a stable valuable commodity in order to assure a predictable and consistent value for the money in good times and bad.

There is another factor regarding devalued money that is rarely addressed in the mainstream. A nation whose currency undergoes a long-term pattern of devaluation must be, to some degree, a nation in decline. Currency manipulation, purchasing decisions and business plans become hurried “under the gun” activities rather than thoughtful and systematic. Long range planning becomes difficult because of the unreliable nature of the money supply and value. Consequently, the short view takes precedence in the offices and boardrooms of the nation, and most gains are ephemeral. Living for the short term can be costly, and especially so for nations and businesses. One misstep….one miscalculation can have a devastating economic outcome. Long term vision allows for tweaking, nudging and redirecting the plan, but the short duration reactionary action plan is similar to rolling the dice for the big payoff…. or bust.

When our medium of exchange (money, gold, barter) is volatile, people become either overly cautious or dangerously risky. The uncertainty that follows a widely fluctuating currency undermines citizens’ confidence in their government, their economies and their futures. The impact on the national psyche could conceivably be more damaging than the harm that is done to the economic well-being of the nation. Imagine for a moment if you were a citizen in Greece. Greece….the birthplace of democracy ( a very limited version) is functioning like an economic bungee cord. The citizens have lost faith in the government and justifiably so. The Greeks, however, have been major contributors in their government’s fragility because of their vociferous resistance to necessary austerity measures. The angst arising from the failure of the Greek economy, the turmoil among the people and the fragility of the Euro have combined to create a nation that seems to have lost hope and expectations for a better future. Unfortunately the United States is traveling a similar path.

Our inflated dollars have distorted the true value of goods and services produced in the U.S.A. Our profligate spenders in governments at all levels have contributed to the inflation by over spending and over borrowing. Although our local governments are forbidden from running deficits, they are too eager to issue bonds for underwriting large chunks of spending…..especially capital expenditures. Debt is deadly whether it’s in the household the business or the statehouse. As debt increases and inflation takes hold, more funds are required to finance the continuation of the enterprise…..whether public or private. Thus begins the cycle for the issuance of more money. If our currency were based on a solid measurable standard, the excessive indebtedness in the public and private sectors would not be possible. Borrowers would have to compete for loans and stand in line to wait their turns. Our money, our economy and our sleep would all be more stable.

cearlwriting@hotmail.com

www.littlestuff-minoosha.blogspot.com

Protection Racket

When I drive or ride with someone else, I wear a seatbelt. If I were a motorcyclist, I would seriously consider donning a safety helmet. I chose not to consume gray meat or black eggs that emit obnoxious smells. I have recovered from financial failure and a broken heart. I presently have a disease (Type 1 diabetes) that requires diligent monitoring and frequent adjustments. I have learned as a young boy and also as an adult to safely handle firearms. My grandpa taught me not to eat dirt, weeds and toadstools. My parents have guided me through many pitfalls of youth and have given me sound guidance for going through life. Dear Nanny State, I do not need you to protect me from my own ignorance or bullheadedness. Just do your job, Nanny, and protect our collective nation from all threats domestic and foreign. Please note, Nanny, the Constitution does NOT require you to protect me from threats that are self-imposed. Please, leave me alone.

Throughout my life I have made mistakes. Some of them were doozies and required an all-out effort to recover from them. In each case under every condition I learned something and became a better or stronger person because of it. I do not need nor do I want the government to wrap a safety net so tightly around me that I cannot fall then recover. We usually describe progress and growth as being upwardly oriented. When seeds are planted below the ground, they struggle to emerge and grow taller. We are very similar. It is often necessary for us to hit the ground before we can spring up and grow taller, wiser and smarter. When government intercedes with its various prohibitions and protections, individual learning is stunted, and the communities and societies suffer because people lose their resiliency. As the protective net becomes more dominant, the entire region or nation loses its ability to “bounce back” from defeat. A nation of fearful citizens loses its zest for risk-taking because the prospect for failure will not be considered. The protective cocoon that government weaves around people becomes an insurmountable barrier for progress.

Just as we know that giving money to a ne’er-do-well is never fulfilling or successful, providing fail-safe protection for a nation will rob its people of creativity and energy. Over protection yields lethargy. When the wolves are nipping at our heels, we respond with alacrity. If we believe there is no danger, we tend to become a little more “laid back.” We may miss numerous opportunities for self improvement because government policies provide a comfortable environment that does not reward risk taking. Besides….the over-protective attitude is ineffective. We have those government-mandated stickers on ladders telling us not to stand on the top step, yet loons and eager beavers do it anyway. In a sense the government has increased the risk by limiting the liability for the ladder manufacturers while providing an unreal sense of security for the dim-witted climbers. Ladder stickers increase the cost of the ladder, are not effective and represent another failed government protection racket.

People who are smothered by the over-protective Nanny State become timid. Timid people are always followers and never leaders. It requires boldness and passion to be a true leader that inspires others to join in a great task. Nanny State is creating a nation of cowardly wimps, and Big Government is the winner because cowardly wimps are easier to control than free-thinking, self-reliant risk takers. It follows, therefore, that Nanny State’s compassionate concern for our health and safety is actually a ruse and a scam to transfer power from the people to Big Brother. Nanny State and Big Brother work in unison to deny our liberties and steal our yearning for self determinism. Nanny and Brother are dream-stealing, initiative-robbing and power-hungry despotic thieves.

In recent times “we the people” have felt the urge to resist when Big Government abuses us and our Constitution, but Nanny State’s meddling in our everyday lives has been nearly as destructive. Nanny’s constant involvement with how we go about our daily living has transformed us into a dependency culture. While Big Brother has openly taken our liberties, Nanny State has been stealthily stealing our strength and our will. Because of Nanny’s sneaky benevolence, we have lost the means and the desire to resist Big Brother’s egregious violations. We find ourselves in positions of dissonance when we challenge government over reaching while continuing to accept government largesse and bennies. The smiling concerned face of Nanny State has co-opted too many of us, and we are hesitant to challenge Big Brother because Nanny may become angry, take her goodies and withhold them from us. This scenario is somewhat reminiscent of what ones sees when using treats to train a puppy.

“You can’t have your cake and eat it too” is a familiar statement for many of us. The relationship between Nanny State and Big Government is illustrative of the wisdom of that old saying. We cannot expect to maintain our individual liberty and sovereignty if we fawningly allow the Nanny State to usurp our personal responsibility. All or none, Patriot, either fight for total freedom….or give it all away. Big Brother MUST be defeated and Nanny State must be banished. Besides….those benefits must end eventually as we lurch toward fiscal collapse.

cearlwriting@hotmail.com

www.littlestuff-minoosha.blogspot.com

   

Isolation, Insulation and Ignorance

You are probably aware that all of the intelligence of the nation resides in either Washington, D.C. or New York…..with a few outliers in Los Angeles. The remainder of us are incurable blockheads who are who are doomed to lives of meaningless meandering because we do not have the advantages of those who reside in the seats of power. We, the little people, are incapable of managing our own affairs, choosing our own directions or enjoying the fruits of individual liberty. Our “betters” believe that we are incompetent nincompoops who are amazingly fortunate to get through any day without the strong arm of government either aiding or coercing us for our own good.

The elite intelligentsia attend the same parties, the same restaurants and pass one another in the hallowed halls of power. Their individual knowledge and wisdom merge into a collection of “everything that is right” just as a simple tomato loses it individuality when tossed into a churning bubbling pot of homemade vegetable soup. Anyone who is familiar with homemade vegetable soup knows that every cook has a unique formula…a one-of-a kind recipe. The self-appointed elites however have determined that their version of basic nutrition is the only acceptable one. As the various power-center cooks “refine’ the soup that they have determined we should swallow, it becomes blander and blander until the lusty values of the tasty vegetables have been replaced by a thin broth-like gruel. Bon Appetite, Serfs.

Those of us who reside in “flyover country” do not have the advantage of basking in the lavishly shared wisdom of the elite opinion makers in our sophisticated centers of power. We struggle in the hinterlands to survive and thrive without the benefits of the daily council of the wise ones whose incestuous ideas solidify into a mass of irrefutable collective wisdom that is transformed into conventional wisdom for everyone in our stumbling republic. We who live in the corners of the nation are, in the view of our elite betters, are obsessed with the price of hogs, the availability of the right brake pads and the finalists for “Dancing with the Stars.” Matters of state and policy appear to be beyond our concerns, and certainly beyond our capacities for understanding them. The complexities of government and country are far too difficult for those who don cowboy hats, John Deere caps and Pittsburgh Steeler’s regalia. It seems as if the elite minds that call the shots are unaware that Wal-Mart, K-Mart and Walgreen’s shoppers are humans. They seem to think that we who do not have a significant place at the national table are either sub-human or barely-human. It is obvious that they (the elites) have never experienced the thrilling moment when a Wal-Mart “happy face” suddenly appears above a coveted item.

Our leadership class from the centers of power can be identified by their uniforms…..actually their copycat sartorial sameness. They can also be detected by their tendencies to self-aggregate. In other words, they rarely mingle with others who are not like them. They are rigid segregationists. They….who believe themselves to be in the center of it all….are isolated and marginalized. Their incessant inbreeding has caused their power-hungry species to become more stupid, less creative and more committed to failed schemes from the past….it’s in their ever-weakening DNA. While they are becoming increasingly isolated, their collective group-think has allowed them to hold the reins of power with a singular purpose. In their isolation and their obsession with power, their ignorance about those of us who do the work, pay the bills and build the nation has increased. They do not know us, and they do not value us.

The people, you and me, have proven time after time that we can solve our problems, live our lives, and responsibly exercise our freedom. The ignorant isolated elites do not have the on-the-ground resources and creativity of our citizens who face obstacles every day and must discover means for overcoming them. Their self-important attitudes deny the creative energy of the people in the flyover regions of the nation. They assume that we are too feeble to “fix things.” Their isolation, insulation and in-bred ignorance are leading us down the path of destruction and despair. Because they insist on implementing their elite controls of lawmaking, regulation and rule-making, they are thwarting the capacity and the creativity of us who do the work.

History has shown us that for the long run, the concentration of power dilutes the innovative impulses of the people. True progress is not a product of “progressive” government. Real strides in the human condition are a result of the creative energy of the people being unleashed to search, discover and develop new and better products and methods for “doing things.” Unshackled liberty is the foundation for risk taking and creative development. Free to choose is more than just a slogan. It represents a national (perhaps even global) mindset that encourages people to discover and to flourish. Isolation, insulation and ignorance are the descriptors of those who presume to lead us. If they are allowed to continue and to amass more power, they will direct us to the abyss of despair. We are smarter than that. We must fight and resist our in-bred elites. We must say “NO.”

cearlwriting@hotmail.com

www.littlestuff-minoosha.blogspot.com