Liberation by Internet

Less than a generation ago centralized media could and was used by governments to propagandize, manipulate, and control the flow of information to its citizens and thus control the ideology of the masses.

Unforeseen by anyone of that generation (including governments), the internet has the potential to be the greatest tool for political and ideological liberty the world has ever known. I highly recommend this article at the Ludwig Von Mises Insitute by Gennady Stolyarov II on this subject to you

Let the Free Market Work it Out – or – It May Get Even Worse!

Crash Proof: How to Profit from the Coming Economic Collapse by Peter Schiff

Madness: Miss HIV Beauty Pageant

Take a look at these two articles on global sexual politics and the trailer to the new movie; Miss HIV

Uganda First Lady Decries Increase in Risky Sexual Behavior while West Threatens to Pull Funding over Ugandan “Homophobia”

Miss HIV: A Film to Change How the World Sees HIV/AIDS

Western liberals have truly gone absolutely mad!

As others have said what’s next – Miss Gonorrhea? Miss Syphilis?

Sept. 11 – Battle of Vienna, 1683

September 11

In 1683, over 138,000 Muslim Ottoman Turks surrounded Vienna,
Austria
.

For two months they starved the 11,000 Hapsburg-Austrian defenders.

Sultan Mehmed IV sent a message to Austrian King, Leopold I: “Await
us in your residence…so we can decapitate you.”

Secretly, Polish King Jan Sobieski, gathered 81,000 Polish, Austrian
and German troops and on SEPTEMBER 11, 1683, led a surprise attack
causing the Turks to flee in confusion.

Upon entering the abandonded Turkish tents, they found bags of beans
coffee beans – revealing how Turks could fight day and night.

Shortly thereafter, Polish General Kulczycki opened one of Vienna’s
first coffeehouses and coffee quickly spread across Europe.

Whereas the Pope and European leaders hailed Jan Sobieski as the
“Savior of Western Civilization,” the humiliated Muslim army beheaded
their general, Mustafa Pasha, and sent his head back to Sultan Mehmed
IV in a velvet bag.

President Theodore Roosevelt wrote in his 1916 book, Fear God and
Take Your Own Part:

“From the hammer of Charles Martel to the sword of Jan Sobieski,
Christianity owed its safety in Europe to the fact it…could and
would fight as well as the Mohammedan aggressor.”

From American Minute with Bill Federer

Demographic Winter: the decline of the human family

This is an absolutely astonishing 52 min documentary on the decline of the traditional family in both western societies and the world.

From a social science perspective this documentary explores the demographics, current trends and the subsequent consequences that will follow the decline of the traditional family:

One of the most ominous events of modern history is quietly unfolding. Social scientists and economists agree – we are headed toward a demographic winter which threatens to have catastrophic social and economic consequences. The effects will be severe and long lasting and are already becoming manifest in much of Europe. A groundbreaking film, Demographic Winter: Decline of the Human Family, reveals in chilling soberness how societies with diminished family influence are now grimly seen as being in social and economic jeopardy. Demographic Winter draws upon experts from all around the world – demographers, economists, sociologists, psychologists, civic and religious leaders, parliamentarians and diplomats. Together, they reveal the dangers facing society and the world’s economies, dangers far more imminent than global warming and at least as severe. It may be too late to avoid some very severe consequences, but with effort we may be able to preclude calamity. Demographic Winter lays out a forthright province of discussion. The warning voices in this film need to be heard before a silent, portentous fall turns into a long, hard winter

_

For more you can visit their website at: http://www.demographicwinter.com

Here is the trailer:

For me the most amazing, encouraging, and astonishing part for Christians comes at the latter part of the documentary. It should come as no surprise that “people of the book” who live out traditional christian patriarchy will eventually become the future majority!

_

For the earth will be filled
With the knowledge of the glory of the LORD,
As the waters cover the sea…

Habakkuk 2:14 NKJV

America’s Coming Fiscal Tsunami – Part II


This video and the later comments are the highlights of a talk that was given by Richard Fisher the president and CEO of the Federal Reserve Bank of Dallas on May 28th of this year on the upcoming Social Security and Medicare crisis which he calls “a frightful storm” brewing in the form of untethered government debt.

If you would like to see the complete one hour talk, it is here

The full text is here

He continues his message:

It is but the tip of the unfunded liability iceberg….

The much bigger concern is Medicare, a program established in 1965, the same prosperous year that Bill Martin cautioned his Columbia University audience to be wary of complacency and storms on the horizon.

Medicare was a pay-as-you-go program from the very beginning, despite warnings from some congressional leaders—Wilbur Mills was the most credible of them before he succumbed to the pay-as-you-go wiles of Fanne Foxe, the Argentine Firecracker—who foresaw some of the long-term fiscal issues such a financing system could pose. Unfortunately, they were right.

Please sit tight while I walk you through the math of Medicare. As you may know, the program comes in three parts: Medicare Part A, which covers hospital stays; Medicare B, which covers doctor visits; and Medicare D, the drug benefit that went into effect just 29 months ago. The infinite-horizon present discounted value of the unfunded liability for Medicare A is $34.4 trillion. The unfunded liability of Medicare B is an additional $34 trillion. The shortfall for Medicare D adds another $17.2 trillion. The total? If you wanted to cover the unfunded liability of all three programs today, you would be stuck with an $85.6 trillion bill. That is more than six times as large as the bill for Social Security. It is more than six times the annual output of the entire U.S. economy.

Why is the Medicare figure so large? There is a mix of reasons, really. In part, it is due to the same birthrate and life-expectancy issues that affect Social Security. In part, it is due to ever-costlier advances in medical technology and the willingness of Medicare to pay for them. And in part, it is due to expanded benefits—the new drug benefit program’s unfunded liability is by itself one-third greater than all of Social Security’s.

Add together the unfunded liabilities from Medicare and Social Security, and it comes to $99.2 trillion over the infinite horizon. Traditional Medicare composes about 69 percent, the new drug benefit roughly 17 percent and Social Security the remaining 14 percent.

I want to remind you that I am only talking about the unfunded portions of Social Security and Medicare. It is what the current payment scheme of Social Security payroll taxes, Medicare payroll taxes, membership fees for Medicare B, copays, deductibles and all other revenue currently channeled to our entitlement system will not cover under current rules. These existing revenue streams must remain in place in perpetuity to handle the “funded” entitlement liabilities. Reduce or eliminate this income and the unfunded liability grows. Increase benefits and the liability grows as well.

Let’s say you and I and Bruce Ericson and every U.S. citizen who is alive today decided to fully address this unfunded liability through lump-sum payments from our own pocketbooks, so that all of us and all future generations could be secure in the knowledge that we and they would receive promised benefits in perpetuity. How much would we have to pay if we split the tab? Again, the math is painful. With a total population of 304 million, from infants to the elderly, the per-person payment to the federal treasury would come to $330,000. This comes to $1.3 million per family of four—over 25 times the average household’s income.

Clearly, once-and-for-all contributions would be an unbearable burden. Alternatively, we could address the entitlement shortfall through policy changes that would affect ourselves and future generations. For example, a permanent 68 percent increase in federal income tax revenue—from individual and corporate taxpayers—would suffice to fully fund our entitlement programs. Or we could instead divert 68 percent of current income-tax revenues from their intended uses to the entitlement system, which would accomplish the same thing.

Suppose we decided to tackle the issue solely on the spending side. It turns out that total discretionary spending in the federal budget, if maintained at its current share of GDP in perpetuity, is 3 percent larger than the entitlement shortfall. So all we would have to do to fully fund our nation’s entitlement programs would be to cut discretionary spending by 97 percent. But hold on. That discretionary spending includes defense and national security, education, the environment and many other areas, not just those controversial earmarks that make the evening news. All of them would have to be cut—almost eliminated, really—to tackle this problem through discretionary spending.

I hope that gives you some idea of just how large the problem is. And just to drive an important point home, these spending cuts or tax increases would need to be made immediately and maintained in perpetuity to solve the entitlement deficit problem. Discretionary spending would have to be reduced by 97 percent not only for our generation, but for our children and their children and every generation of children to come. And similarly on the taxation side, income tax revenue would have to rise 68 percent and remain that high forever. Remember, though, I said tax revenue, not tax rates. Who knows how much individual and corporate tax rates would have to change to increase revenue by 68 percent?

If these possible solutions to the unfunded-liability problem seem draconian, it’s because they are draconian. But they do serve to give you a sense of the severity of the problem. To be sure, there are ways to lessen the reliance on any single policy and the burden borne by any particular set of citizens. Most proposals to address long-term entitlement debt, for example, rely on a combination of tax increases, benefit reductions and eligibility changes to find the trillions necessary to safeguard the system over the long term.

No combination of tax hikes and spending cuts, though, will change the total burden borne by current and future generations. For the existing unfunded liabilities to be covered in the end, someone must pay $99.2 trillion more or receive $99.2 trillion less than they have been currently promised. This is a cold, hard fact. The decision we must make is whether to shoulder a substantial portion of that burden today or compel future generations to bear its full weight.

Now that you are all thoroughly depressed, let me come back to monetary policy and the Fed.

It is only natural to cast about for a solution—any solution—to avoid the fiscal pain we know is necessary because we succumbed to complacency and put off dealing with this looming fiscal disaster. Throughout history, many nations, when confronted by sizable debts they were unable or unwilling to repay, have seized upon an apparently painless solution to this dilemma: monetization. Just have the monetary authority run cash off the printing presses until the debt is repaid, the story goes, then promise to be responsible from that point on and hope your sins will be forgiven by God and Milton Friedman and everyone else.

We know from centuries of evidence in countless economies, from ancient Rome to today’s Zimbabwe, that running the printing press to pay off today’s bills leads to much worse problems later on. The inflation that results from the flood of money into the economy turns out to be far worse than the fiscal pain those countries hoped to avoid.

Earlier I mentioned the Fed’s dual mandate to manage growth and inflation. In the long run, growth cannot be sustained if markets are undermined by inflation. Stable prices go hand in hand with achieving sustainable economic growth. I have said many, many times that inflation is a sinister beast that, if uncaged, devours savings, erodes consumers’ purchasing power, decimates returns on capital, undermines the reliability of financial accounting, distracts the attention of corporate management, undercuts employment growth and real wages, and debases the currency.

Purging rampant inflation and a debased currency requires administering a harsh medicine. We have been there, and we know the cure that was wrought by the FOMC under Paul Volcker. Even the perception that the Fed is pursuing a cheap-money strategy to accommodate fiscal burdens, should it take root, is a paramount risk to the long-term welfare of the U.S. economy. The Federal Reserve will never let this happen. It is not an option. Ever. Period.

The way we resolve these liabilities—and resolve them we must—will affect our own well-being as well as the prospects of future generations and the global economy. Failing to face up to our responsibility will produce the mother of all financial storms. The warning signals have been flashing for years, but we find it easier to ignore them than to take action. Will we take the painful fiscal steps necessary to prevent the storm by reducing and eventually eliminating our fiscal imbalances? That depends on you.

I mean “you” literally. This situation is of your own creation. When you berate your representatives or senators or presidents for the mess we are in, you are really berating yourself. You elect them. You are the ones who let them get away with burdening your children and grandchildren rather than yourselves with the bill for your entitlement programs.

This issue transcends political affiliation. When George Shultz, one of San Francisco’s greatest Republican public servants, was director of President Nixon’s Office of Management and Budget, he became worried about the amount of money Congress was proposing to spend. After some nights of tossing and turning, he called legendary staffer Sam Cohen into his office. Cohen had a long memory of budget matters and knew every zig and zag of budget history. “Sam,” Shultz asked, “tell me something just between you and me. Is there any difference between Republicans and Democrats when it comes to spending money?” Cohen looked at him, furrowed his brow and, after thinking about it, replied, “Mr. Shultz, there is only one difference: Democrats enjoy it more.”

Yet no one, Democrat or Republican, enjoys placing our children and grandchildren and their children and grandchildren in harm’s way. No one wants to see the frightful storm of unfunded long-term liabilities destroy our economy or threaten the independence and authority of our central bank or tear our currency asunder.

Of late, we have heard many complaints about the weakness of the dollar against the euro and other currencies. It was recently argued in the op-ed pages of the Financial Times that one reason for the demise of the British pound was the need to liquidate England’s international reserves to pay off the costs of the Great Wars. In the end, the pound, it was essentially argued, was sunk by the kaiser’s army and Hitler’s bombs. Right now, we—you and I—are launching fiscal bombs against ourselves. You have it in your power as the electors of our fiscal authorities to prevent this destruction. Please do so.