In the Dollar "We Don't" Trust

On Friday, Larry Kudlow wrote an article discussing the US Dollar. In his article, he writes: "We know that gold is soaring.

And we know the dollar is slumping. But, did you know that year-to-date, while the S&P 500 is up 18 percent—a great showing no doubt—gold is up even more.

The precious metal is up 21 percent. In other words, measured in true, gold-backed purchasing power, stocks have really done nothing this year. Zip. It is most disappointing... What we’re seeing right now is pretty close to what we witnessed in the 1970s—the rise in gold and inflation really cuts into the stock market.

So what’s the way out?

Well for starters, we need a stable dollar to stop inflationary pressures. And we also need lower tax rates to spur the economy, help it grow, and reduce unemployment."

He also goes on to mention, "In addition, the Treasury ought to get out there and buy these unwanted dollars in the marketplace. Just go out there and bid for them. And they need to stop printing so much debt from Congress. All this massive spending and borrowing is killing us. We need to be slashing tax rates on large and small businesses. There’s just no better place to begin job creation."

Full Article Here


I agree with Mr. Kudlow. With gold at its highest rate ever and considering that The Federal Reserve has DOUBLED the amount of US Dollars in circulation in one year, clearly inflation is coming.



This video was aired back in January, so the amount of money in circulation now is even higher. However, the money that The Federal Reserve printed approximately one year ago is just now starting to enter the market.

Two other nations in recent history have/had major inflation. One was the Weimar Republic (Germany) after World War I. According to PBS around 1920 "Milk went from 7 Marks per liter to 16." After 1920 "The printing presses ran, and once they began to run, they were hard to stop. The price increases began to be dizzying. Menus in cafes could not be revised quickly enough. A student at Freiburg University ordered a cup of coffee at a cafe. The price on the menu was 5,000 Marks....When the 1,000-billion Mark note came out, few bothered to collect the change when they spent it. By November 1923, with one dollar equal to one trillion Marks, the breakdown was complete. The currency had lost meaning."

The Germans printed more and more money without it being backed by gold, and destroyed their own currency. The other example is Zimbabwe. I was in Southern Africa this summer, mainly in South Africa, however I was near the border with Zimbabwe. I was given a legal tender of 50 billion Zimbabwe-Dollars. You need 100 billion Zimbabwe-Dollars to buy a soda. While I was there, I was told the Zimbabwe-Dollar collapsed because of inflation (and printing money) and Zimbabwe has since abandoned the currency.

Since 1973, our currency has not been backed by gold, and since we are printing money without anything that is backing it up, we are going to have inflation, as Mr. Kudlow mentions. People are trusting gold more than the US Dollar, this is why it is over $1,000 dollars an ounce. The only way we can stop this, before we go down the same path as the Weimar Republic or Zimbabwe, is to create jobs. The way to accomplish this is to lower taxes for businesses and make it lucrative for companies to be here.

Other nations are showing concerns about the U.S. Dollar, as well, our national debt, which is about 12 Trillion Dollars. Last Tuesday, The Independent Newspaper reported "Gulf Arab Nations are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar."

If the World thinks the dollar is no longer "the standard" when it comes to currencies, then we may have tough financial times ahead of us, and a new financial crisis, much worse than what we experienced a year ago.

If we don't stop printing more and more money, and unemployment keeps rising; prepare for massive inflation and a possibly a depression. I hope that I am wrong and that President Obama, along with the rest of our Government and The Federal Reserve, can solve these issues by creating new jobs, reducing unemployment numbers, and stopping our national debt from rising.

Christian

Note: this Article was made for one of my classes in school where we had to respond to an article.

Works Cited:
Amadeo, Kimberely. "History of the Gold Standard." About.com. Web. 10 Oct. 2009. .

Fisk, Robert. "The demise of the dollar." Independent UK. 06 Oct. 2009. Web. 10 Oct. 2009. .

Goodman, George. "The German Hyperinflation, 1923." PBS.org. PBS, 1981. Web. .

Http://www.usdebtclock.org/. Web. 10 Oct. 2009. .

Inconvenient Debt - Glenn Beck. Dir. Fox News. Perf. Glenn Beck. Url: http://www.youtube.com/watch?v=lNS8IY_Td14.
Independent UK Newspaper. Torn-Dollar. 2009. Photograph.

Kudlow, Larry. "Save the Greenback, Mr. President." CNBC. 09 Oct. 2009. Web. 10 Oct. 2009. .

Senator Specter Signs The Healthcare Pledge

Senator Specter has become the first Democrat to sign Let Freedom Ring's Healthcare Pledge. He joins 117 other members of Congress that have signed the pledge. This is certainly an interesting move by Arlen Specter, showing boldness and courage to sign this pledge. Colin Hanna said, Senator Specter "has never been anyone's rubber stamp." Hopefully other democrats will now sign the pledge and actually show Americans they will READ a bill (especially one as significant as healthcare reform) before voting on it.

Congressman Sestak, said at a town hall in Philadelphia, he would sign the pledge too if the pledge did not have its second part stating that the bill be available to the American People on the internet for at least 72 hours before the bill is voted on. Congressman Lincoln Davis' (D-TN) staff said he would sign the pledge too if more democrats have signed it. Congressman Ed Towns (D-NY) told a constituent he would sign the pledge but has not at this time. Representative Allyson Schwartz (D-PA) told Megyn Kelley of Fox News in an interview that the pledge was on her desk, but she has not signed it as well.

What is really sad is, out of 535 seats in Congress, 118 have agreed to read the healthcare bill before they will vote on it. This shows how out of touch Washington is with the American People. Most simply do not understand that they work for us, WE DO NOT WORK FOR THEM, and until Congress realizes this, they will just remain out of touch with America and we will not be the Republic we have always been.


For more information on Specter signing the pledge, read Washington Times Article here.

CREN

Blue Dog Democrats Fold

July 29, 2009



Blue Dog Democrats reach a deal with Democratic leaders with regards to the Healthcare Reform Bill. The deal seems to be that they will cut 100 Billion (less than 10% of the bill) and exempt small business making less than $500,000 a year. Also part of the deal Steny Hoyer announced that the bill will not reach the house floor before the August Recess.

This bill will destroy American Healthcare as we know it. Democrats are taking the worlds best system and putting government in charge. The best metaphor can be found with this video:

Can there be simple ideas to improve our system which does have some flaws? Of course there are, and we should allow capitalism to thrive in healthcare, but we are taking the best system in the world and putting government in charge of our healthcare. This chart below is how are government will run our healthcare system:



Looks confusing doesn't it? Do you really want to go through that for healthcare?

They have a 1,000 page plus bill and NOT ONE DEMOCRAT HAS AGREED TO READING THE BILL BEFORE VOTING FOR IT. What we need to do this august recess, is go to their town halls, tell them how we really feel about this bill, flood their telephones, fax lines, mailboxes, and e-mail about why they should read this legislation (what we elected them to do) and tell them how they should vote.

This is our last chance to stop this legislation because the Blue Dogs are now on board with it. We must defeat it like how American Citizens defeated the amnesty bill under President Bush.

CREN

CREN is interviewed by Greta Van Susteren

I was interviewed by Greta on July 22, 2009 at about 10:30 at night to talk about Pledge To Read and other topics.
More Info Here

Full Article Here

Share your comments below.

CREN

Pledge to Read

A conservative group, called Let Freedom Ring, from Delaware and Pennsylvania have created a pledge and sent it to every member of congress about healthcare reform.

The Pledge simply states:

I, ________________________________, pledge to my constituents and to the American people that I will not vote to enact any healthcare reform package 

that: 

 

1)   I have not read, personally, in its entirety; and,  

 

2)   Has not been available, in its entirety, to the American people on the Internet for at least 72 hours, so that they can read it too. 

 

 

________________________________

Member, United States House of Representatives 

Another version with US Senator at the bottom for a signature is available too. At first the pledge started with 4 signers on their website Let Freedom Ring and the website solely dedicated to the healthcare pledge by Let Freedom Ring, PledgetoRead.com.

The Four (which are confirmed) are Senators DeMint (SC) and Inhofe (OK) and Representatives Jerry Moran and Todd Tiahrt, both from Kansas.

Recently the names have been pulled from the website as they announced all signatures will be released on July 20, along with a list of Senators and Representatives who have refused to sign the pledge. There are rumors (cannot be confirmed) that the minority leader in Congress, John Boehner has signed the pledge and is strongly advising fellow republicans to sign the pledge too. It is a fact too (after calling Let Freedom Ring) that pledge signers have reached double digits, which is more then the  the "half dozen" Colin Hanna stated on this interview with Fox News.

Steny Hoyer laughed when he heard about Pledge to Read according to The Politico even stating the bill would GET VERY FEW VOTES if LEGISLATORS READ THE BILL and Nancy Pelosi was confronted by a reporter asking about the pledge too. 

The best moment happened today when Megyn Kelley at the end of the interview, confronted Representative Allyson Schwartz about the pledge who wouldn't say yes but "had it on her desk." 

After personally calling the office of the representative, as a citizen, they would not tell me if in fact the pledge was on her desk, or even if a staff member saw the pledge.

I think everyone should go to PledgeToRead.com and download the pledge and send it to your Two Senators and Representative, also mention you're a constituent of that lawmaker and tell them why you want them to sign it. The best way is by fax, and talk to a staff member in thier office and e-mail the pledge to them.

Tell them to send a fax of the signed pledge to 1-888-462-6891 (or if you receive a signed copy send it there) so Let Freedom Ring, Inc. can see the pledge and know that particular Senator or Representative has signed the pledge.

CREN