What is on everyone’s mind in corporate America? Money. Same thing that should be on your mind. If you have significant savings then you might be in good shape for the time being. Or your might not. Depends on whether the banking system collapses completely. While the chances are low, I think we may well see major riots in our biggest cities in the next five years. That depends on how well Congress and their myriad myrmidons can prop up our faith in their system of theft, graft and faith based electrons.

Today I had to go to my boss and ask him for money to buy computer hardware because our storage arrays are full. The idea was better recieved than I thought it would be considering that the credit markets have dried up commercial construction projects short-term. A LOT of chains have put all their new building projects on hold.

The world keeps spinning. Those of us based in the Southeast still have a hard time filling up the gas tank, compared to a few weeks ago we have to do a lot more searching to find gas. This adds to the sense of foreboding a lot of people have. I’m only surprised it took this long to reach a moment in time when we had to say, as a nation, what the heck is really going on here? After all we’ve been trained for at least three generations now to a sense of entitlement, instant gratification and complete lack of any real hardships in life. Reality doesn’t always work that way, at least for most people.

The big question is: where are we going from this point? At least a few people are hearing from Ron Paul again.

Roberts: OK, OK. So we recognize all of the things that got us here. But, right now, today, what would you do, if not this bill?

Paul: You have to liquidate those mistakes. Those mistakes were made due to monetary policy. So you have to allow the market to adjust prices downward. And that’s what we’re not allowing to do.

If there are too many houses and the prices are too high, the sooner we get the prices down to the market level, as soon as we quit trying to encourage more housing — this is what we’re doing. They’re trying to stimulate houses and keep prices high. It’s exactly opposite of what we should do.

So, we should get out of the way and not buy up bad debt. There’s illiquid assets, but most of those are probably worthless. They’re mostly derivatives. And we’re sticking those with the taxpayer. So we have to recognize that the liquidation of debt is crucial. And if we did that, we would have tough times, there’s no doubt about it, for a year. But if we keep propping a system up that’s not viable, we’re going to have a problem for decades, just like we did in the Depression. That’s what we’re on the verge of doing.

Congress will most likely do what they do best - put off dealing with these issues as long as possible. They’ll vote an “aid” package in. The dollar will be further devalued. You will be immediately a little more of an economic slave than you were yesterday, assuming you plan to keep adding to the system we live under. The system will be that much closer to collapsing under its own weight. Beans and bullets will be excellent investment vehicles.

There will be less grossly obese people waddling around.

All areas of health care that are regulated are experiencing huge price increases. Areas that are not regulated, like LASIK surgery (which I had in 1999), are experiencing price drops.

According to the federal government’s Bureau of Labor Statistics the cost of the Lasik procedure has dropped from $2,106 in 1999 to $1,626 in 2004! The quality of the procedure has also improved dramatically, even though the cost has fallen.

The Comprehensive Health Care Reform Act itself is a very modest attempt to get choice back into the health care equation. By “choice” I do not mean making the decision that people who haven’t done anything to earn it will be given money taken from other people in order to fund their various ailments. That’s not a long term solution to anything, as demonstrated by the cost of the “prescription drug benefit” which is more than double the amount of theft initially promised.

In my lifetime, I am unaware of any federally administered program that has actually seen cost decreases. If the Fed was in charge of television production, it is my opinion that I would not be able to afford the 52″ LCD hanging on my wall. Do you know of a federal program that has actually reduced costs for the product or service being administered? Let me know about it!

If you agree with me that Congress doesn’t need to be overseeing a health care monopoly then please head over to Downsize DC and sign up to make your voice heard.

In case you don’t pay attention to these things, Bob Barr is running for President on the Libertarian ticket. Bob Barr’s campaign site looks a hell of a lot like Ron Paul’s campaign site. I wonder if he got a discount for using the same template. After all, the design company didn’t have to start from scratch.

Generally speaking, I tend to agree with most of Barr’s positions. He is against continuing growth of the federal government and that is the single most important issue because that one issue causes all my various problems with government. If we could limit the role of the federal government to a few key things like providing for a common defense and maybe regulating interstate commerce this nation would be a better place to live, and certainly a more interesting place to live.

Neither Ron Paul or Bob Barr has a chance of winning the election. Either of the two could upset the balance though, and skew the results in favor of the Democratic contender. When the time comes to decide, it is likely I will write in Ron Paul’s name and consequences be damned. But now, at least, I have a good backup. I may still cast my symbolic vote for Bob Barr depending what happens in the next few months.

Many in the ranks of American punditry are speculating that the spoilers in this election will ensure a Democratic President gets elected. If that happens, then I say more power to the successful candidate. Both parties are destroying the value of our currency. Both parties are trying to homogenize this nation, effectively removing the ingredient that once made us the greatest place on earth to live. Both parties continue to encroach on personal freedoms by pretending that doing so will somehow benefit us all collectively. Both parties throw money at a failing education system and continue pretending that the money will fix the problems instead of looking at the root causes (social value systems) that are responsible for the mediocrity of our public education system. Neither party is serious about fixing the energy crisis. Neither party is serious about making America a better nation.

If electing a Democrat speeds up the inevitable recycling that nations go through in history, then I’m all for it. Rome is going to burn sooner or later - the writing is already on the wall. Let’s get it over with so we can start rebuilding from the ashes. Maybe we’ll have a longer cycle of enlightenment and freedom the next time around. If Bob Barr can destroy the status quo then he’s doing a good thing.

[amazonify]0446537519:right[/amazonify]Ron Paul, the guy I’m going to write in for President later this year, has a new book out.

Here’s an excerpt from his mailing list announcement which I received today.

These principles - individual liberty, sound money, the Constitution, and the foreign policy of the Founding Fathers - have had no home in American politics for a very long time. With The Revolution: A Manifesto, I’m letting the establishment know we’re not going away.

Finally, Americans can hear and judge these great American principles for themselves, instead of through an unfriendly media filter. And they can learn once and for all that they need not be satisfied with the phony choices the system offers them every four years. Another way really is possible.

The media vilified Ron’s candidacy. At times, he was polling around 10-15% in places, but never higher. Maybe that’s because from the very beginning people like Sean Hannity were labeling him a nut job with no chance in hell of being elected. Then someone or some group planted the whole “Ron Paul is a racist” red herring. People called those who believe in Ron’s message of liberty and individual responsibility as well as small government at the federal level “Paultards” and other nasty little monikers.

I don’t think people who like Ron Paul and think he’d make a good President claim the guy is perfect. We just think he is way better than Hillary “Communist Powermonger” Clinton or Barack “Empty Promises and Pipe Dreams” Obama or John “American Values by Force are our Primary Export” McCain. Ron Paul doesn’t promise to fix all our problems by stealing money from some of us and giving it to others.

The anti-Ron Paul people are short-sighted and are doing a great disservice to America by trying to silence one of the few prudent politicians serving at the federal level. In that great, shrill, gasping mass of irresponsible children we call Congress but should call criminals, Ron Paul is one of the few who actually practice the principles he preaches. Unlike John McCain, Ron Paul doesn’t say things he doesn’t really believe in hopes of getting elected. McCain pretends to be principled. Ron Paul IS principled. I cannot understand how this is not self-evident to people. Maybe they just don’t care. Maybe they just want the politician who promises them the most free stuff.

If you are interested in liberty, fiscal responsibility and a government that actually adheres to the limits placed on it by the Constitution, then you should probably pick up a copy of Revolution, A Manifesto.

It is heartening to know I’m not alone in worrying about the impending disaster we face because the value of our money is MADE UP by bureaucrats. Sri Lankans are listening to Ron Paul.

“Few Americans give much thought to the Federal Reserve System or monetary policy in general,” Ron Paul wrote in his column this week.

“But even as they strive to earn a living, and hopefully save or invest for the future, Congress and the Federal Reserve Bank are working insidiously against them. Day by day, every dollar you have is being devalued.

“The greatest threat facing America today is not terrorism, or foreign economic competition, or illegal immigration.

“The greatest threat facing America today is the disastrous fiscal policies of our own government, marked by shameless deficit spending and Federal Reserve currency devaluation.”

Ron Paul is one of the few politicians of the world who understands the intricacies of fiat money. He is on the House Committee on Financial Services.

Why this stuff is appearing in a Sri Lankan business rag and not here eludes me.

“So while Fed policies encourage younger people to over borrow because interest rates are so low, they also punish thrifty older people who saved for retirement.

“The financial press sometimes criticizes Federal Reserve policy, but the validity of the fiat system itself is never challenged.”

It isn’t rocket science - you can only make up so much value before even the dumbest of the dumb realize the entire system is just a pipe dream. And then the currency gets switched to something like bullets. If I have time in this life, I’m going to pursue an economics degree so I can hope to explain these basics more eloquently.

Our current money system is only as effective as the amount of faith the people who use the money have in it. When the faith tides ebb, the society leans towards collapse. That’s not to say our national financial house is going to collapse, but it certainly could. A house built on faith alone is not a house I would live in.

Someone explain to me how I’m wrong. Make sure you’re an economist and are ready to send me a copy of your advanced degree and the titles of some of your books. I want to believe we’re not headed for disaster.