An Open Letter to Barack Obama

I am writing you once again because I read yesterday that Hank Paulson is asking Congress to release the remaining $350 billion so he can bail out more of his friends. If you keep copies of emails, you can easily go back and find my email from October where I asked that you not approve this bail out plan.

I warned that it was not the right thing to do and I still believe that to be the case. Were there any conditions placed on how the money was spent? No. Has there been any accountability? No. Does anyone know who ended up with all of that money? No. Are the banks willing to talk? No.

Is this how you would run your personal business? I doubt it. Why do we believe that our country should be run any differently?

I read today that “experts” believe that we have a 50-50 chance of sliding into a depression in the next year. Personally, I would put the chance of depression much higher. And here is the scary part for you...there is nothing that the government can do about it. Not only that, but the very actions of the government have brought this crisis upon us. Not deregulation.

Some holiday reading might be good for the coming sleepless nights. Maybe a quick Google for John Law and his grand attempt at a fiat currency in the early 1700's. That experiment ended in financial chaos and Mr. Law fled France to preserve his life.

The definition of a fiat currency, such as the U.S. Dollar, is that there is no intrinsic value to the currency, but that it is a required medium of exchange by order (fiat) of the government. The U.S. Dollar lost it's intrinsic value in 1971 when President Nixon slammed the gold window shut. A quick stroll down history lane will confirm that there has never been an instance where a fiat currency has survived. In fact, all fiat currencies have ended in complete collapse.

Complete collapse is where we are headed in the near future. Bailing out Paulson's cronies is not going to solve the problem, only make it worse. Worse that is, except for his buddies who are getting all of this money. I would sure like to know how much of that money has ended up offshore somewhere.

It is unfortunate that most Americans are going to have to suffer through this mess that was created by a few greedy folks at the top, but suffer we must. We allowed those at the top to do this and we stood idly by let it happen. All economies go through periods of boom and bust. It is as certain as the cycles of the moon. However, any economist worth his salt will tell you that the more the government tries to smooth out the cycles, the more severe they become.

We are headed toward the mother of all busts so why spend any more money that we do not have on programs that will only make the inevitable that much worse?

Stand up for the America that our forefathers created and vote no to more senseless spending.