Give Ron Paul Serious Consideration

As an interested observer of the GOP race I am increasingly warming up to Ron Paul as the anti-establishment candidate. While N.Gingrich stands out as a viable alternative to the current administration the fact is he is a career politician with plenty of "baggage" to haunt him. Though his lower, flat tax proposals have merit it is unclear how far he plans to go to get the budget mess under control and the numbers don't entirely add up. We are racking up over $1 Trillion in deficits per year and Mr. Paul is calling for the same in budget cuts. We must focus first on spending cuts and second on tax reductions. Mr. Paul wants to reduce the power of the Fed and eliminate Bernanke to stop the easy money, stabilize our currency and curb inflation expectations. He recognizes our international power, influence depends first on getting our finances in order. We cannot afford to be the Lone Ranger of the world anymore; defense spending can and must be cut as well as everything else. The federal government is the fast growing gorilla in the room and Ron Paul stands for stopping that growth that is infringing on our freedom.

Revise the System

As we watch the circus now in Washington over the tax cut after the supercommittee fiasco, it further confirms the need to reform the political system we are operating under. The idea being to eliminate the word political. We need civil servants serving relatively short terms of office motivated by doing the right thing to serve the electorate and leaving office with a legacy they can be proud of. Eliminate the career politicians! Strictly limit terms of office. Someone serves 4-6 years and goes back into the private sector.

Those in office must be held accountable. As the law requires passage of an annual budget the leaders in the Senate and House should lose their positions if this doesn't happen or stop salaries of Congress until one is passed. Alternatively, require they stay in session indefinitely until the issue is resolved. The members of the supercommittee should have lost their jobs for not coming up with a proposal.

We must pass a balanced budget amendment with strict rules and implications if not followed. With few exceptions, require the annual budget presented by the President be balanced. We must get the budget under the control and live within our means. As our founders had in mind we need a limited government.

Re-election of President a Scary Thought

While hopeful the citizens of this country will do the right thing next November and elect a new GOP candidate into office by an overwhelming landslide, there are no guarantees in this crazy world. Who would have believed our Congress wouldn't be able to raise the debt ceiling this past summer? Can you believe the Congress hasn't passed a budget in 3 years or so? Can you believe we are taking on $1 Trillion in debt each year and the supercommitte couldn't come up with anything? Can you believe the president put on hold an energy pipeline project that would create jobs and help increase energy supplies? Now, nobody can agree on extending the tax cut. It is so absurd and how frightening it would be if the current administration is voted in for another 4 years.

The budget deficit recently hit $15 trillion, about 25% of it accumulated in the last 4 years. Current projections call for an increase of another $8-10 trillion in the next 10 years! This is unsustainable if you consider compound interest. When will the current rock bottom interest rates here double or triple as they have this year in a number of european countries? Probably in 2013 or 14 interest rates will increase due to this problem in combination with likely inflationary forces. Dramatic action to reduce and quickly eliminate the deficit must be taken by the new administration in 2013 to head off potential disaster. We also need a sound monetary policy to stabilize the currency. Otherwise, this country could sink under the weight of its debt: Further crashes of the financial and housing markets, a weak currency, high inflation, a increasingly socialist economy dependant on the government.
Wake up America! This administration is steering this country off a cliff. Do we want future innocent generations to have to deal with insurmountable debts?  Have the courage and do the right thing. Get the word out that this election is about less government, not more and more freedom not less, capitalism not socialism. This country can be great again by becoming financially responsible.

European Debt Crisis Resolution- Doubtful

The financial markets seem to be expecting or at least hoping for some major breakthrough at the end of the week. Don't hold your breath. Might be a good at least short term selling opportunity? Think about what is going on here, seventeen different countries, cultures with differing economies and financial situations. Unfortunately, many of them have large budget deficits and are near or in recession. Some of these countries have imposed austerity taking a severe toll on their citizens. Have you ever tried to get 17 people together and come to a consensus on a major problem? The stronger countries like Germany and France don't want to get stuck with the tab on bailing out the weak countries like Greece, Spain. The Euro currency has been on the slide because the markets question the future of the European union. Are Germany and France going to allow these countries in dire shape to drag down their economies? No. It may be too late to save the Euro!

Privatize USPS & FHA

Both of these organizations have been in the news recently with continuing losses and shortfalls the taxpayer is at risk for. The FHA is similar to Fannie and Freddie; the government should not be involved in insuring mortgages risking potential huge losses on the taxpayer with exposure of more than $1trillion. FHA guaranteed 24% of new morgages in fiscal 2011 ended 9/30 yet its capital reserves are below the 2% mandated by Congress. The USPS does serve an important yet declining function in the modern online world. However, it has the burden of a high cost structure and is inefficient. As with all levels of government, the pay scales and benefit structures are substantially above comparable private sector.  Pensions paid to past postal workers is very costly.The threat of ending Saturday mail has been on the table for months, they are now reducing their labor force and re-routing the mail. The end result is declining quality, speed of mail delivery. My small business felt the brunt of it the last couple days; late or no mail delivered at all. From this perspective; a UPS or FED-EX could much more efficiently incorporate the USPS structure into its operations. Since mail delivery is still essential for many the privatization would have to be handled carefully to make sure mail gets delivered 5 or 6 days per week. Perhaps it could be put out for bid every 4 or 5 years so there is competition. There is a better way!

Federal Reserve Out Of Control

Yesterday's coordinated effort to rescue Europe and its banks appears to have been engineered by Ben Bernanke. Once again the Lone Ranger,  the US is coming to the rescue. However, what kind of risks are we taking on? Clearly, the most powerful man in the world today is Mr. Bernanke! In the absence of responsible action by Congress and our president he is doing whatever he thinks is necessary to, from his perspective, save the world from going down the toilet. He is shuffling billions perhaps trillions buying and selling various securities apparently all over the world. Additionally he has flooded the markets with cash to keep interest rates low. Does Mr. Bernanke realize what a monster he may be creating that could blow up?
First, the signals the Fed gives provide little or no confidence. In fact inflation is raising its ugly head; oil and gold prices remain stubbornly. Everyone knows inflation is higher than the 2-3% the government reports. Ready for $4-5 gasoline next spring? If our currency keeps falling we will continue to import lots of inflation. The low interest rate policy punishes savers, especially seniors contributing to our weak economy. The Federal Reserves mandate must be limited to controlling inflation and maintaining the value of our currency. Bernanke should not be re-appointed.