DownsizeDC.org
January 23, 2008
Changing the Environment
By James Wilson
Today's Downsizer-Dispatch . . . Change the environment. Recruit more Downsizers. Share this message with others.

Quote of the Day:

"If you don't trust gold, do you trust the logic of taking a pine tree, worth $4,000-$5,000, cutting it up, turning it into pulp, putting some ink on it and then calling it one billion dollars?"
- Kenneth J. Gerbino

Subject: Changing the environment

The "American Spectator" reports that Mike Huckabee is out of money. His campaign workers are now having to volunteer. The same with Giuliani. People will vote for these guys, but they won't fund them. 

We find this fascinating and instructive. People are easy with their votes, but stingy with their dollars. This tells us that support for the Big Government status quo is only an inch deep, though it remains a mile wide.

The Big Government Establishment is running on fumes. It continues to dominate through sheer inertia, and because it retains the loyalty of the most important constituency of all -- the mainstream media.

The media, under the guise of reporting, can provide its favored candidates with massive free advertising, without regulation from the campaign finance laws.

This is what keeps the house of cards standing. This is what keeps the Big Government status quo in power. This is what keeps Huckabee and Giuliani as contenders, when otherwise they would have collapsed for lack of financial support.

The market, denominated in dollars, has spoken. It has rejected these candidates and their views. But the market, denominated in votes and media coverage, keeps these candidates going past their expiration date.

We live and operate in an environment saturated by Big Government mythology. Debunk the mythology and you will change the intellectual environment. Build an army large enough to outshout the media and you will change the intellectual environment. Change the environment and you will change the result. 

Every Downsizer Dispatch you share with others helps to change the environment. And every new Downsizer you help recruit by doing so increases our ability to change the environment even further.

While the media is busy reporting the horse-race between all the hobbled nags they support, here is what they are not telling you . . .

They are not telling you that the Federal Reserve's 75 basis point cut in the interest rate is going to inflate the money supply, causing still more price inflation. Your savings will be worth less. Your pay check will buy less. And the big financial interests that have the first access to this new money will be able to buy things cheap, before the price increases hit.

The media won't tell you that this Fed inflation is theft, transferring wealth from the poor and middle class to those who are first in line to receive the Fed's funny money. Instead of telling you the truth, the media continues to blame our current economic problems on rising oil prices. But those of you who are old enough to remember the 1970s should know better . . .

The media told us the same lies in the 1970s. They told us that high oil prices were causing all other prices to rise. They told us we needed the Fed to create more and more money to boost the economy. But they created more and more new money and the boost never came. All we got were higher and higher prices, and slower and slower economic growth. They called it "stagflation" -- inflation combined with a stagnant economy.

According to the pet theories of the Establishment's so-called experts, stagflation was supposed to be impossible. But it was all too real. Now we are seeing this old pattern repeated. We have price inflation. We have companies in trouble. We have all the signs of a coming stagflation -- recession and rising prices at the same time. And once again the Establishment is giving us the same old song and dance . . .

We need the Fed to create more money, they tell us. High oil prices are the problem, they claim. And the verdict on these assertions will be the same as it was in the 1970s. The stagflation of the 1970s was only ended when the new Federal Reserve Chairman, Paul Volker, stopped creating new money out of thin air. Those of you who were alive then will remember . . .

The adjustment was painful. Unemployment rose to 11% for a brief period as the economy corrected itself and purged all the bad investments that had been made during the inflationary 70s. But then the economy took off again, giving us nearly 20 years of growth, and rising standards of living.

Don't drink the Establishment's poison kool-aid. The only way to reduce the pain of the coming economic correction is to stop pouring fuel on the fire. The Fed must stop creating new money. The government should also cut spending and stop borrowing, to make more real capital (not funny money) available to create jobs.

This is the only path back to economic health. It worked before, it can work now, and the sooner we start the better it will go.

Help us change the environment, both in public, and in Congress. Share this message with the others. Then tell Congress that you know the truth. Send Congress a message asking them to pass Ron Paul's "Honest Money Act," which will create conditions that will make it harder for the Fed to inflate the money supply.

Use your personal comments to object to the Fed's latest move to create more inflation. Remind Congress of the example of the 1970s. Tell them you know that blaming things on high oil prices is a myth, just like it was in the 1970s. Let them know that you know that Fed inflation is the real problem. Tell them to cut spending and reduce borrowing to free up real capital (not funny money) to fuel real economic growth.

You can send your message here.


Thank you for being a part of the growing Downsize DC Army.

Perry Willis
Communications Director
DownsizeDC.org, Inc.
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