Monthly Archives: July 2009

Letters To Boxer & Feinstein To Support S.604 On Auditing The Fed

Below is the text of a letter I’ve sent to Senators Barbara Boxer and Dianne Feinstein. H.R. 1207 (introduced by Ron Paul) and S. 604 (introduced by Bernie Sanders) is a bill that requires the Comptroller General to audit the Fed and report back to Congress within the next 18 months. Given that the only oversight they undergo is occasionally having Bernanke lie and befuddle Congress with confusing non-answers, I think it makes sense.

The below letter should be read as a potential template for readers to use when writing to your own Senators and Congressmen. However, there are two caveats to this. First, there are a few points here about California, as we have had some special challenges throughout the tech crunch and the housing collapse. Second, the tone of the letters is geared towards Democrats. If you’re sending this to Republicans, it would make sense to change the language in certain areas.

Either way, I wanted to provide potential talking points for readers who want to contact their Senators and get this ball moving.

July 9, 2009

Dear Senator XXXXX,

Senate bill S.604, a bill to require the Comptroller General of the US to audit the Federal Reserve, is currently under review with the Senate Committee on Banking, Housing, and Urban Affairs. I am writing to urge your support for this bill.

California has been the epicenter of two asset bubbles over the last two decades: the high tech bubble and the housing bubble. Both brought the illusion of wealth to our state, and both caused much pain to our residents and our state government when they collapsed. There are many causes of asset bubbles, but chief among them are the loose monetary policies of the Federal Reserve. These policies cause malinvestment and excessive speculation, the hallmark of any bubble.

The Federal Reserve policies of Alan Greenspan and continued by Ben Bernanke are placing the financial system of the United States in jeopardy. These policies are largely undertaken without Congressional or Federal oversight, and benefit the interests of our financial sector at the expense of our citizens.

Most recently, the Fed has expanded their balance sheet to $2T buying securities, all the while engaging in a policy of “quantitative easing”, which is the euphemistic term for “printing money”. These policies are unprecedented in American history, and their long-term effects may be far worse than the problems they’re expected to address today.

S. 604’s sister bill in the House (H.R. 1207) has widespread bipartisan support, and over 250 cosponsors – including 25 from California. S. 604 is rapidly gaining sponsorship in the senate, with three additional cosponsors added in the last several days to a (now) total of 7 sponsors.

The Federal Reserve is adopting policies that affect every American at the core of their economic life – the value of our dollars and the value of our homes. They are making these decisions without meaningful Congressional oversight and without allowing anyone to “check the books”.

Congress has a duty to Americans to ensure that the Federal Reserve is acting in our interests, and the first step to doing so is to understand what they’ve already done. An audit is necessary. I hope that I’ve convinced you to support and possibly cosponsor S.604.

Sincerely,
Brad Warbiany

(Followed by contact info)

Give it a shot. I prefer to fax things to elected officials, as I believe there to be a more definitive tactical feel to actual paper. When they see that it’s printed out and faxed, I think it carries a little bit more significance than an email. I also emailed this to both of them, just in case their staffers are more likely to read one than the other.

Counterpoint: The Tea Parties Portend A Liberty Movement Ceasing Its Silence

This post is the second portion of a feature we offer here at The Liberty Papers called “Point-Counterpoint”. In this feature, Kevin argued the Point yesterday that Tea Parties are ultimately damaging to the libertarian movement. Today, Brad responds with the below.

My boss is a mainstream Republican in his mid-40’s. He’s got a small crush on Sarah Palin. He recently took the Political Compass and ended up with a score of (+7.00, -0.67). He’s an accountant by training and salesman by profession. He’s not a protester by nature. In short, he’s a part of Nixon’s “silent majority”, the group described by wikipedia as not having “the ability or the time to take an active part in politics other than to vote.” His wife falls under the same general heading. My boss couldn’t make it to the April 15th Tea Parties — work was more important at the time — but strongly wanted to attend. His wife was able to make it to a Tea Party. These are people who are NOT the type to protest the actions of the government publicly. They are, IMHO, much more representative of the types of people who attended these current protests than those who are protesters by nature.

This is not the protester you're looking for.

This is not the protester you're looking for.


Oh, you’ve heard of those groups, I’m sure. These are the types that Kevin alludes to when he says the anti-war protests became anti-Bush protests. These are professional protesters (by professional, I mean that they don’t have day jobs that get in the way). They get their protest groove on before they even know what they’re protesting. Anti-war? Go away, fascists! Anti-WTO? Fine, you dastardly multinational capitalists! Anti-GMO? Leave my food alone! Anti-Bush? Selected, not elected! Described in the movie PCU as “causeheads” by character Droz (Jeremy Piven), they’re the career protesters that you find more often on the left:

“These, Tom, are the Causeheads. They find a world-threatening issue and stick with it for about a week.”

The Tea Parties, at least traditionally, haven’t been dominated by Causeheads. They’ve been attended by regular people — like my boss’ wife — who see that in modern America, the train has derailed and they’re afraid of the carnage to come. It’s people who understand that something is very, very wrong — but they aren’t yet sure why or how to fix it. It is a protest movement in its infancy, and it’s largely populated by people who are more likely to eventually follow the side of someone like Ron Paul* than the “birthers”.

Yes, there are a lot of elements trying to grab hold of the Tea Party movement for their own purposes. But I believe that the modern Tea Party movement can largely ignore those elements, because the Tea Party movement is an effect, not a cause. It is not Joe the Plumber dragging people to Tea Parties; it is their own sense of morality and outrage at what is going on. It is a group of people who is sick and tired of government meddling, but endured in silence for several years while “their party” was in power. When Bush at the end of his term and Obama ever since have hit the throttle on government spending and control, they simply couldn’t take it in silence any more.

The Silent Majority is speaking up.

Stephen Gordon wrote a pretty expansive round-up of Tea Parties that he attended and that he had knowledge of for the Independence Day protests. Throughout that post, it’s clear that this is a grassroots movement, although that in some places it’s more dominated by the local GOP political establishment than in others. In many of these protests, elected officials were barred from speaking, allowing individual non-political Americans to speak.

That is a recipe for a true grass-roots movement. Of course, letting anyone with an opinion speak is also a recipe for a few of them to say things that you may not entirely support. Giving everyone who wants a microphone access to one makes for a bit of a messy message — just look at the blogosphere! When you get that many people together, you may not be 100% comfortable with everyone. Imagine if I’d attended a Tea Party protest. Would your typical mainstream Republican be happy being associated with a radical atheist anarchist who wants to legalize all drugs, let gays get married, and thinks Sarah Palin is the worst thing to happen to the Republican Party since the atrocious George W. Bush? I’d like to think of myself as a consistent advocate for liberty in the face of our government, but I would think that many mainstream republicans would be put off by the views I espouse.

But all that doesn’t change the fact that what is animating these protests is not birthers, or truthers, or Joe the Plumber. The animating force behind these protests is a latent hostility to big activist government that has been piqued by bailouts, stimulus, and the understanding that you must have confiscatory taxes or widespread inflation down the road to pay for it.

We are at a tipping point when it comes to these protests. April 15th was the first shot in a fight against obscene spending and painful taxes. The July 4 protests are a difficult case, however, because they were more of a protest to keep the fires stoked than anything else. On July 4, I think it was more about having a protest than it was about protesting a concrete action. That will soon change. There are strong rumors of a second stimulus**. We have seen the House pass Cap and Tax. We are watching Congress move forward on government health care. These are specific proposals that any advocate of limited government must fight vigorously.

Americans are seeing the Democrats move forward with the same big-government agenda and top-down central planning that we know does not work. We watch as the Republicans either compromise by only enacting the big-government agenda 80% as fast as the Democrats want, or by cutting pork-laden deals to get something in exchange for going with the flow. Nobody in this debate is standing up for the taxpayers, and that means that you can expect more of these Tea Parties in the future.

Will these Tea Parties be good for liberty? These Tea Parties are the effect of liberty-minded individuals expressing their ideals in concrete action, not a cause of those ideals. Thus, for all the efforts of Joe the Plumber, the birthers, or avaricious politicos to manipulate the Tea Parties for their own ends, the fact still stands: the Tea Parties aren’t about these sideshows. Their presence doesn’t change the ideals of those who attended, and in the grand scheme of things, will not materially affect the fight for liberty.

The Tea Parties have one benefit that hasn’t been discussed. If my account is accurate — that these protesters are the “silent majority” speaking up — the Tea Parties are working to mobilize and connect a group of people that largely exist below the political radar. The biggest difficulty I had as a libertarian prior to widespread internet activity was the feeling that maybe I was the outsider and that nobody else agreed. But through blogging (in general, and The Liberty Papers in particular) I am now connected to like-minded people and am building the networks and connections to make real change. The Tea Parties have the same affect on those who believe in small government. In these protests, friendships are made. Connections are forged. The on-the-ground networks that will one day help us to rein in the excesses of our leaders begin to take shape. This, above anything else, is what I hope we will see as the legacy of the Tea Party movement.

As for whether the Tea Parties will ultimately be successful, I cannot be sure. There is a large contingent of this country that wants the government to be their nanny and has no problem forcing the rest of us to pay for it, and I’m not entirely sure that they can be stopped at this late stage. If that contingent is successful, we may someday point at the Tea Parties in hindsight and say “if only they did X, or Y, we might have won.” But as it stands today, they’re one of the only concrete ways for us to get Congress’ attention, they’re one of the ways that the movers and shakers of the future will forge their networks, and they’re serving their purpose despite Joe the Plumber and the “birthers”.
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You Don’t Deserve That Right

Tell me, just once, where a government that has created a million-name no-fly list gets a legitimate power to ban people arbitrarily placed on that list from firearm ownership?

Ladies and gentlemen, I give you Rahm Emanuel, Chief of Staff to the Obama White House!

Critical text (h/t David Rittgers, Cato@Liberty):

“if you’re on that no-fly list, your access to the right to bear arms is cancelled, because you’re not part of the American family; you don’t deserve that right. There is no right for you if you’re on that terrorist list.”

I’m sure all those who have faced false positives on that list feel great about Rahm’s statement.

Point: The Tea Parties Are Ultimately Bad For Liberty

This post is the opening salvo of a feature we occasionally offer here at The Liberty Papers called “Point-Counterpoint”. In this feature, Kevin is arguing the Point that Tea Parties are ultimately damaging to the libertarian movement. Tomorrow, Brad will respond to this argument with his Counterpoint (response here).

The so-called Tea Party movement has been upheld by some as a movement of Americans fed up with overtaxation and excessive spending by the Federal government. These supposedly disgruntled ordinary Americans have been having rallies all across the country to show their disgust with the fiscal shape of the country. However, there is more beneath the surface of the Tea Party movement. In reality, the Tea Party movement has become a platform for assorted kooks, Republican party operatives looking to regain credibility with the American people, and libertarian and conservative activists who frankly should know better than to associate with the above.

Many of the featured Tea Party speakers this weekend were either tax hiking, big government politicians themselves or can be safely classified as kooky.

One of the cases in point is none other than celebrity Joe the Plumber aka Samuel Wurzelbacher who turned an Austin Tea Party into an anti-immigration rant:

“I believe we need to spend a little more on illegal immigrants get them the (expletive) out of our (expletive) country, and close the borders down,” Wurzelbacher said. “We can do it.”

“We’ve got the greatest military in the world and you’re telling me we can’t close our borders- that’s just ridiculous.”

Another group of kooks gathered in Duval County, Florida at an event organized by the county’s Republican Party.

The Republican Party of Duval County is backing away from their promotion of an event that featured numerous controversial comparisons of President Barack Obama with German Dictator Adolf Hitler. The event, a Tea Party held at the Jacksonville Landing on July 2, was organized by the First Coast Tea Party. However, the Duval County Republican Party promoted the event with e-mails that stated “Paid by Republican Party of Duval County.” Duval Republican Party Chairman Lenny Curry also broadcasted live from the event on the party’s weekly radio broadcast hosted by AM 1320.

The event, which was attended by Florida State Representatives Lake Ray, Charles McBurney and Mike Weinstein and Florida State Senator Stephen Wise, drew about 1,000 people to the Jacksonville Landing. Local party officials were on stage, along with numerous members of the Jacksonville business community.

While partisan rhetoric at any rally is expected, controversy has arisen over numerous signs that were prominently displayed at the gathering, including two that featured Barack Obama in Nazi garb. One sign, in fact, had altered Obama’s appearance to resemble Hitler. Other signs compared ACORN, the community organizing group accused of voter registration irregularities, with the SS—the Nazi organization responsible for enacting the Holocaust and the group responsible for most of the crimes against humanity committed by the Third Reich.

In short, the Tea Parties have become less about opposition to bailouts and reckless spending and instead have begun to resemble the “anti-war” rallies of the Bush years. The “anti-war” rallies were generally nothing more than “We Hate Bush” rallies and the Tea Parties have become “We Hate Obama” rallies where every phony outrage and faux scandal about Obama are aired to a country that is rejecting them. The Tea Parties have lost their original purpose of promoting fiscal responsibility in most of the country and the movement has come to the point where it harms the liberty movement by continuing to associate with them.

Plus, while original supporters of bailouts, higher taxes, and higher spending are being booed at some events, other tax and spend hypocrites are being welcomed as speakers and are cheered because they’re playing for the right team aka the GOP. By cheering on the same politicians who created the fiscal mess our country is in, the Tea Party movement continues the same fiscal mess they claim to oppose.

If the only purpose of the Tea Parties is to elect more Republicans then we have failed. Instead, we as libertarians must let this movement lose steam and fade away, like all populist movements do. Especially when we start seeing talk of the Tea Party movement nominating Sarah Palin, who is an enemy of everything classical liberalism stands for, to be its presidential candidate. If the point is to gain publicity for our causes, we are failing in this because the media is focusing on the fringe participation and the Republican party sponsorship of these events.

In short, libertarians and the Tea Party movement must divorce if the liberty movement is to survive. Or the Tea Party movement must clean its own house and get back to its core issues of fiscal responsibility.

I’m one of the original co-founders of The Liberty Papers all the way back in 2005. Since then, I wound up doing this blogging thing professionally. Now I’m running the site now. You can find my other work at The Hayride.com and Rare. You can also find me over at the R Street Institute.

Pope Benedict XVI Would Make Marx Proud

Pope Benedict XVI has decided to wade into territory which he has no understanding or expertise: the global economy. The New York Times reports that the pope is now calling for a “New World Economic Order”*

VATICAN CITY — Pope Benedict XVI on Tuesday called for a radical rethinking of the global economy, criticizing a growing divide between rich and poor and urging the establishment of a “world political authority” to oversee the economy and work for the “common good.”

He criticized the current economic system, “where the pernicious effects of sin are evident,” and urged financiers in particular to “rediscover the genuinely ethical foundation of their activity.

I have to ask the question to my Catholic friends who believe in Papal infallibility that also happen to believe in free market capitalism: how do you square the two philosophies? (Argument withdrawn; I am by no means infallible and was lacking in my understanding of this concept)

The article continues:

In many ways, the document is a somewhat puzzling cross between an anti-globalization tract and a government white paper, another indication that the Vatican does not comfortably fit into traditional political categories of right and left.

“There are paragraphs that sound like Ayn Rand, next to paragraphs that sound like ‘The Grapes of Wrath.’ That’s quite intentional,” Vincent J. Miller, a theologian at the University of Dayton, a Catholic institution in Ohio, said in a telephone interview.

“He’ll wax poetically about the virtuous capitalist, but then he’ll give you this very clear analysis of the ways in which global capital and the shareholder system cause managers to focus on short term good at the expense of the community, of workers, of the environment.”

Indeed, sometimes Benedict sounds like an old-school European socialist, lamenting the decline of the social welfare state and praising the “importance” of labor unions to protect workers. Without stable work, he notes, people lose hope and tend not to get married and have children.

Sorry padre, you can’t have it both ways. If you truly believe the Communist/Socialist model is morally superior to Capitalism (an admittedly selfish system by honest supporters such as Ayn Rand) just come out and say so! If one honestly reads the scriptures, one will see that the teachings of Christ are much more in line with Karl Marx than Adam Smith.

But wait, it gets worse…

Benedict also calls for a reform of the United Nations so that there can be a unified “global political body” that allows the less powerful of the earth to have a voice, and calls on rich nations to help less fortunate ones.

In other words, the U.N. should force the citizens of the most efficient and productive nations at gun point to give money to people in nations who are less efficient and less productive in large part because they subscribe to the philosophy of the Pope: “From each according to his ability, to each according to his need.” There’s a word for this; it’s called extortion.

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