Monthly Archives: January 2009

The Truth About The Obama Agenda

I have been asked by radio talk show hosts across the country to talk about President Obama's possible- if not probable- nationalization of the banking system. But there's more to the story than just banks.

This issue ties in with every aspect of the Obama Socialist Agenda- bailouts, handouts, economic stimulus packages, giving too much power to The Federal Reserve…let's not forget tax cuts to people that don't pay taxes.

This Obama agenda isn't about saving the American economy. Rather it is about putting Big Brother in control of our lives. It's about the Nanny State- big government intrusion into every aspect of our lives, in order to "protect" us. It's about destroying capitalism and tearing down the U.S. economy to build a new economic system based on rewarding the "right kind" of Americans- those who support Obama and his agenda.

It's about bribery- Obama is buying votes for a generation- thereby guaranteeing the liberal big government, tax and spend, big union, radical environmental agenda controls every aspect of our lives for decades to come.

It's about Socialism…it's about "group think"…the collective good of society instead of the individual. It's about rewarding the non-productive members of society (Obama's voters), and punishing the taxpayers- the group that creates the jobs, owns the businesses, owns the property, and pays the actual taxes. Just as he told "Joe The Plumber" during the Presidential campaign, Obama wants to punish this group because these Americans tend to vote Conservative.

It's about making the Federal Reserve more powerful so that it can print money endlessly to pay for Obama's reckless spending, even if inflation rises to double-digits and the value of the dollar descends towards zero.

It's about building an economy that rewards Obama's supporters- big unions, government employee unions, teachers unions, auto unions, lawyers unions (otherwise known as The Bar Association), lobbyists, and environmentalists.

And of course the biggest goal of all…it's about controlling the banks, who will decide what people and what projects get funding for the next 4 or 8 years of an Obama administration.

This is the greatest, most manipulative VOTE BUYING SCHEME in political history. Just as the New Deal cemented Democratic control of national politics for a half century- this Obama agenda is The New Deal II…on steroids!

Think
…think long and hard and deeply about what caused this economic tsunami: Too much government spending. Too many handouts. Too much wasted spending on failing public schools- orchestrated by greedy teachers unions. Too many government employees with bloated salaries, pensions and health benefits. Too much deficit. Too much debt. Too many promises by government with blank checks- paid for by taxpayers.


Too many government rules that forced banks to loan billions to low income Americans who couldn't and shouldn't have qualified for mortgages…all in the name of equality and "fairness."

Too many government bureaucrats like Barney Frank, Chris Dodd and Chuck Schumer with oversight over Fannie Mae, Freddie Mac, Wall Street, Bernie Madoff, and the banking system- while these same politicians were the biggest beneficiaries of contributions from those very companies and sectors.

And now think of what Obama's solution really consists of- MORE of all of the above. He proposes far more spending to get us out of bankruptcy. He proposes giving state and local governments billions of dollars to reward them for spending far too much- virtually guaranteeing they'll do it again. He wants to make government far more important. He wants to give more power to Barney Frank and his friends. Friends like Congressman Chsarles Rangel who oversees tax policy but conveniently "forgot" to pay his own taxes. Or new Treasury Secretary Tim Geithner who creates tax policy, but conveniently "forgot" to pay his own Social Security taxes. He wants to create more regulations- even though government regulations contributed to the current crisis (and certainly didn't prevent it). How could more of the things that caused this mess possibly be the solution?

Think…think about the beneficiaries of every aspect of this plan: The economic stimulus package is about buying the votes of the 40% of Americans who will get a tax cut check…but never paid any taxes in the first place. Obama is betting that they will gladly vote Democrat for many years to come. Wouldn't you be thankful if someone gave you a check for doing nothing?

It's about giving away $200 billion to state & local governments- to lock up the votes of government employee union members for a generation- by making sure that government employees not only keep their jobs, but get pay raises while the rest of us in the private sector struggle to survive in a depression.

It's about handing out tens of billions of dollars to a failing education system OWNED by teachers unions who couldn't care less about the kids…and prove it every day with lower test scores and higher drop out rates. Why reward failure? To buy the votes of millions of teachers union members for a generation.

It's about giving away billions of dollars to failing auto companies in order to reward the auto unions that supported Obama…and buy the votes of auto workers earning $150,000 (or more) in annual salaries, pensions & benefits to drill rivets into fenders of cars so over-priced that no one wants to buy them anymore. But you can bet that Obama will make sure union contracts are protected- at all costs.

It's about handing out jobs to construction workers- also union members…in order to guarantee that those millions of workers vote Democrat for a generation. And if they're not union members, Obama will pass the Card Check legislation that bans secret ballots, to ensure that every possible worker becomes a union member- even if forced by violence or intimidation.

Finally, the Obama agenda is about a government takeover of banks so that Big Brother is in control of who gets loans. You can bet that the Obama bureaucrats put in charge of banks will use politics as their guide to make every decision- directing the banks' money to union members, union-funded projects, environmentally-correct projects, politically- correct projects, and any projects where Obama's friends stand to profit.

Ladies & gentleman we have sold out. We have sold our souls to the devil…and the devil is big government. Obama doesn't want to help you- he wants you to desperately crave the government's help. He wants you hopeless, helpless, aimless, and clueless, thereby dependent on government to survive. He wants to slip socialism by you…and destroy capitalism while we're in crisis- while you're scared and weak, and he hopes you won't even notice. Not as long as he sends you a check, takes over your bank, protects your mortgage (even if he has to ask government to break the legal contract), educates your children at government-run schools, and gives you a job. And once his plan is complete, he'll own you and your vote for life. But look at the price you'll pay- every aspect of your life will be dominated and determined by Big Brother.

Author Ayn Rand predicted it all many decades ago in "The Nature of Government":
"We are fast approaching the stage of the ultimate inversion: the stage where the government is free to do anything it pleases, while the citizens may act only by permission; which is the stage of the darkest periods of human history, the stage of rule by brute force. "


Give Obama credit for the deception. His brilliant team of handlers and publicists show the mainstream media images of his beautiful wife and children…his wonderful family…and they have him quote the Founding Fathers…and talk about choosing a new church for his family. He talks about tax cuts as a big part of his stimulus plan, never mentioning that the cuts don't go to the people that actually pay most of the taxes. All the while these nice images and perfectly orchestrated sound bites play in the media, Obama is busy destroying capitalism…stomping on the Constitution…and re-distributing the wealth. Karl Marx could not have come up with a more effective plan.

This is a brutal, calculating, manipulative, vicious coup- a takeover of the capitalist system…a high-jacking of the electorate through bribery…under the stress of crisis. This is about turning the whole country into one big Chicago…controlled by big unions…teachers unions…environmental lobbyists who want to tax you to death to prevent a global warming disaster that isn't proven to exist (we are more likely to be experiencing "global cooling"). But no matter…Big Brother is in control and taking action on your behalf…protecting you…keeping you safe and employed…and protecting you from global warming doom & gloom. Remember if draconian global warming rules, regulations and taxes destroy millions of private sector jobs…all the better for the Obama agenda. Obama will create millions of government jobs to replace them- making big government even more powerful and beloved.

All these radical liberal groups are out to destroy capitalism simply because they're no good at it. They've failed in the current system, so their goal is tearing it down to create a new economic system (or "world order") where they can succeed…because they are in control and they make the rules. By applying the right pressure- ie the bribes of trillion dollar government bailouts and programs up for grabs, they've even gotten big business to go along with the plan.

This my friends is the Socialist Utopia…the liberal version of the "Stepford Wives." And it took the perfect boob to open the door- George W. Bush, the compassionate conservative who poisoned the Republican brand; caused conservatives to hide in embarrassment and shame; and allowed Obama to exist because of Bush's own incompetence, arrogance, reckless disregard for excessive government spending, and record-setting expansion of government. Now Obama is here to "rescue" us. Not that he's ever been in business…not that he's ever taken an economics class…not that he's ever created a job. But simply because Obama is the Anti-Bush, he now commands the American economy and the free world.

In response, we are all stepping off the cliff like lemmings…following a Pied Piper…falling to our deaths…destroying capitalism…giving up our freedoms…sacrificing our children's future…wrecking our economy…punishing the taxpayers…and rewarding those who failed in the capitalist system- who happen to support Obama.

Historian and political statesmen Alexis De Tocqueville's words have finally come true:
"The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money."

Some of us can still see what is happening. Some of us are willing to stand up to the bullies. Some of us are willing to still support capitalism. Some of us are willing to lead the loyal opposition. I'm Proud to call myself a Libertarian, Fiscal Conservative, Capitalist, Small Businessman, Home-School Dad, Citizen Politician, Son of a Butcher…and The ANTI-Obama.



Wayne Allyn Root was the 2008 Libertarian Vice Presidential candidate. His new book is released by John Wiley & Sons in May entitled, "The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts." He also happens to be Barack Obama's college classmate (Columbia University Class of '83). For more of his views, commentaries and to watch his many media interviews, please visit his web site at: www.ROOTforAmerica.com

The Greatest Economic Stimulus Plan Ever!

As we reach the big day of President-elect Barack Obama's inauguration, it would seem like an ideal time to talk about the greatest challenge facing his new administration- the triple whammy of economic meltdown, credit crisis, and crisis of consumer confidence. All of them have combined to create the “Perfect Storm�- what appears, to a small businessman like me, to be The Great Depression Part II. Obama believes that the way to get out of an economic toxic disaster caused by too much government spending and debt, is to spend more and go further into debt. Interesting logic.

Obama's solution for this economic tsunami is more government spending in the form of more bailouts; a massive trillion dollar (or close to it) economic stimulus package; and tax cuts offered to people that never paid taxes in the first place. What is so interesting about this Obama game plan, is that it proves that we have once again elected a President that is either ignorant or oblivious to the United States Constitution. Nothing in the Constitution authorizes any of this kind of federal government intervention. Virtually the entire Obama economic game plan is unconstitutional.

I, on the other hand, offer today an economic stimulus plan that is unlike any ever offered before. Instead of raising taxes on the successful Americans who pay most of the taxes and create virtually all of the jobs, I actually want to give taxpayers a one-year “Income Tax Vacation.� Yes, I want to suspend income taxes for 2009 and tell the I.R.S. to take the year off. I can hear the liberal, big-government, tax and spenders screaming right now. But before I explain the details of my plan, let's debunk a few great, big, fat liberal lies about taxes.

Liberal tax and spenders complain that we cannot possibly allow the Bush tax cuts to become permanent. Why? The federal government cannot afford it. The cost? About $400 billion per year. Until recently, that sounded like a lot of money. But not after the events of the last few months- now we all realize that $400 billion is chump change. How is it possible that we can afford to spend $80 billion on a bailout for one company AIG, but $400 billion in tax cuts for millions of hard-working American taxpayers is unaffordable? How is it possible we could spend almost $50 billion (and counting) on a bailout for the failed Big 3 automakers, but $400 billion in tax cuts for millions of taxpayers is unaffordable? How is it possible that our new President Obama could giveaway almost one trillion dollars in an economic stimulus package without hesitation, but $400 billion in tax cuts for the taxpayers is unaffordable? How is it possible that we could giveaway $7 trillion in total bailouts, but $400 billion in tax cuts is unaffordable and unimaginable?

Obama campaigned for President on the theme that extending Bush's tax cuts would be unaffordable and irresponsible. Yet now it turns out that when Obama wants to spend a cool trillion dollars on his pet project, it's available, reasonable, and necessary. Big fat liberal lie number one is debunked.

But the second line of reasoning by liberal tax and spenders is even more of a whopper. They say that a tax cut is a “giveaway to the rich� and that it's “unfair� and “greedy.� Really? How can it be a giveaway when it's our money in the first place? The very definition of a giveaway is when government is giving away my money to other people who didn't earn it. Now that's a giveaway. The real giveaway is Obama offering a “tax cut� to the 40% of Americans who paid no taxes last year. The real giveaway is the millions of people (virtually all Obama supporters) who are on welfare, Medicaid, food stamps, aid to dependent children, housing assistance, free school breakfasts and lunches, the list goes on and on. That's a giveaway. Big fat liberal lie number two is debunked.

Liberals like Obama call tax cuts “spending.� He claims that tax cuts add to the budget deficit. That's a blatant lie. Letting people keep more of their own money does not increase government spending. It isn't the government's money in the first place- it belongs to the taxpayers. So therefore it shouldn't be in the budget in the first place. How can you grab less of my money and claim that increased your budget deficit?

If someone stole your car, then had a change of heart and gave you the four tires back, would that be a “giveaway� to you? Would you feel like a welfare recipient because someone gave you back part of what they took from you in the first place? Would you thank them for being so generous and “fair?� Would you say they increased the spending in their personal budget by giving you back 4 of your own tires that they just stole? I think not. That's how millions of our most productive Americans feel when government says it adds to the budget deficit to allow us to keep more of our own money.

You mean when President Obama spends a trillion dollars on infrastructure building, that isn't called “government spending?� That doesn't add to the budget deficit? When Obama spends a trillion dollars giving money away to people that didn't pay taxes in the first place, that isn't called “government spending?� That doesn't add to the budget deficit? But letting taxpayers like you or me keep more of our own money- the one item that isn't spending at all- that is blamed for busting the budget? Wow, those liberal tax and spenders certainly have a way with words. Big fat liberal lie number three is debunked.

And as far as the “G word� greedy- well that's the biggest, fattest lie of all. You mean it's greedy to want to keep more of your own money, but it's not greedy to ask government to give you someone else's money? Big fat liberal lie number four is debunked.

Now into this picture of big fat lies enters Barack Obama with his first big act as President- an almost trillion dollar stimulus plan (which I predict after only a few months in office, he'll expand dramatically to far above one trillion dollars). He wants to build infrastructure with a large portion of it- highways, bridges, schools. By the way, many of these projects that he calls “necessary� are a bunch of fat, lard, pork and waste that until today used to be called EARMARKS. Now they will be packaged up in an economic stimulus package and called “necessary for the survival of America.� That's how politicians play with words to deceive the American public.

With the rest of the stimulus package Obama will send government checks to millions of Americans- many of whom never paid taxes in the first place; many millions of others have steady jobs and their income is no worse than last year (this category includes anyone that works for government). So why give them a check? The people who need the check are small business owners who are struggling because consumers have stopped buying. But none of the checks will go to them- they made too much money on last year's tax return. Obama has disqualified them.

Oh and just for good measure, Obama will spend a bunch of leftover money on creating 600,000 new government jobs that will bankrupt taxpayers not just today, but for many decades to come. Remember that those 600,000 new government employees require bloated salaries, pensions and health benefits for the next 50 years. This is Obama's version of Economics 101: Massive Spending + Debt added to More Massive Spending + Debt = Economic Recovery. Good luck to all of us. We'll need it.

But here's my version of an economic stimulus plan:

Let's give American taxpayers (ie those who actually do pay the taxes) a one-year tax VACATION. Yes, I want to suspend all federal income taxes for individuals for one year. Once again, Obama and his tax and spend friends will howl that we can't afford it. Really? The entire amount of income tax paid by individuals each year in the United States of America is about $1.3 trillion dollars. So as expensive as my idea sounds to suspend federal income taxes for a year, it's actually about the same cost as Obama's economic stimulus plan. It's also only a tiny fraction of the $7 trillion dollars the federal government has given away in bailout monies to rich, fat- cat corporations and bankers. It's far less than the $2 trillion or so in cash that the Federal Reserve has simply printed to put liquidity into the banking system.

But like all liberal tax and spenders, Obama doesn't want to simply let us all keep our own tax money for one year. Government wouldn't get enough credit for that. Obama wants government to meddle in our lives. Obama wants to be able to give our money away in the form of a government check- to make all of us dependent on government. He wants to take it from us (in the form of taxes), and then give it back (to some of us), so we're all awed by the power and generosity of government. He wants to choose winners and losers, by giving it back to whomever he decides is worthy. He wants to give the money away to people who did not pay taxes in the first place (his voters).

My plan chooses to give the trillion dollars or so away to the people that paid all the taxes in the first place. My plan simply allows the taxpayers to keep their own money- without ever getting government (or government checks) involved. For one year, you get to keep ALL of your own money. How's that for simple? My plan has no middleman (government) grabbing your tax money first and taking his cut. You just keep it all for a year. This is certainly no giveaway, considering that the money is going to the people that earned it- taxpayers.

But there are two problems for Obama and his liberal friends. First, most of the savings would go to the top 20% of earners, simply because that's who pays most of the taxes. How unfair. The people who actually pay the taxes would gain the benefit. And since they own virtually all the businesses in America, they'd pump the money back into their businesses, or create new ones- thereby creating millions of new jobs. That just makes too much sense for government.

Secondly, Obama's & Company would be petrified that my Income Tax Vacation would set a precedent. They'd be petrified that maybe if we all paid no income taxes for a year, we'd actually start to like it. Taxpayers might notice how much better their lives have become without income taxes. They might notice that all that extra tax money they keep improves their quality of life. And they might notice that nothing is missing from their lives- that we all get along just fine without those taxes. Obama & Company would be petrified that we'd all start to notice that the federal government could actually survive without collecting our income taxes. We might all demand that income taxes never be reinstated. Wow, how that thought must really frighten big-government liberals. They must wake up in the middle of the night sweating profusely. My version of the economic stimulus plan is the Liberal Nightmare.

Please keep in mind that my idea, unlike President-elect Obama's stimulus package, actually rewards and incentivizes the American citizens that fund virtually all the businesses in America; that create virtually all the jobs; that buy the luxury goods; that invest in the things that make our economy go and grow- stocks, bonds, real estate, investment property, small business. This is the group you want to motivate and stimulate. The American economy would start humming again. Americans would go back to work. Now that's an economic jolt. That's an economic stimulus. Put the money in the hands of those that create it in the first place. Put it in the hands of the same people that know what to do with it, in order to make more money.

Do you realize Obama's plan gives away money to everyone but this very group that I'm talking about above. Obama's plan takes the money from the taxpayers, and gives it back to everyone BUT the small business owners and job creators. Taxpayers like me rarely receive stimulus checks. I always earn too much. Isn't that amazing? I'm part of that heroic group that creates the jobs, and pays most of the taxes that pay for all these big government programs and overpaid government employees. But when it comes to stimulating the economy, I'm the last guy government wants to stimulate. Well, there are millions of Wayne Roots. We're the ones that government ought to be helping- or rather, not hurting. You should always help the people that stand the best chance of helping and uplifting millions of others.

But that is only Part One of my economic stimulus package. That's the first trillion dollars or so. We all know Obama's stimulus plan will be doubled or tripled or quadrupled. If not in 2009, certainly in 2010, you can count on Obama coming back for more, and more, and more. Because no matter how much he gives away, it will never be enough. So here are a few more ideas to motivate and stimulate the producers and earners and taxpayers and small business owners who make America go and grow. As opposed to Obama's wasted trillions, the ideas below will actually make money for the government. This is my Economic Stimulus Plan:

#1) The centerpiece of my plan is the One Year Federal Income Tax Vacation. We've already discussed this key idea in detail above. Now to the all-important corollaries.

#2) I propose a 5 year Capital Gains Tax phase out. Anyone who invests in America (stocks, bonds, homes, commercial real estate, small businesses, etc) deserves a reward for his/her risk- especially in today's frightening economic environment. I suggest phasing out capital gains taxes over a 5-year period. Any capital gains earned after one year = 15% tax rate, after two years = 10% tax rate, after three years = 7.5% tax rate, after 4 years = 5% rate, after 5 years = ZERO capital gains tax rate. My idea is simple: buy a piece of America and hold it for 5 years, and any profits earned are yours to keep- tax free. This is perhaps the most crucial moment in the history of America to encourage, motivate and stimulate risk (otherwise known as investment in America). My plan will unleash the greatest economic expansion and explosion in world history.

#3) I propose the elimination of all capital gains taxes on investments, dividends, and interest for Americans age 55 and older. The point of this idea is to reward older Americans who are entering their retirement years and allow them (after a lifetime of hard work) to retire on half the amount of savings (because they owe no taxes on their assets- the very things they'll live on for the rest of their lives). But it's the aftershocks of this idea that will help the American economy recover. With this kind of a reward, think of the trillions of dollars that older Americans will spend on investing in America- knowing that the big payoff will come from what they are leaving their children and grandchildren.

#4) I propose a business income tax cut. Corporate income tax rates in America are the 2nd highest in the industrialized world. Obama wonders why businesses are moving jobs offshore? We must cut corporate income taxes to 20% (or lower) to remain competitive and encourage big business to not move offshore, or ship jobs outside the USA.

But more importantly, to encourage the formation and success of small businesses- the economic engine of America- we must lower the income tax rate for small business to 10%. This tax reduction, combined with the 5 year capital gains tax phase-out discussed above, will encourage an incredible tsunami of investment into small business. That creates millions of new jobs and turns the deepest recession of our lifetimes into an economic renaissance.

#5) I propose cutting capital gains taxes on the profits from the sale of any American's principle residence to ZERO. To liberal tax and spenders who scoff at this idea, it was your hero Bill Clinton, back in the 1990's, who cut the cap gains tax on the sale of principle residences to zero on the first $500,000 of profit. But (as usual) this tax cut wasn't indexed to inflation. Today, with indexing for inflation, it would be far higher. If the idea was good enough for Clinton, it's good enough for me. But I'm adding a creative twist- I'm proposing infinity as the limit for your real estate investing success, profit and prosperity. Any American that invests (and risks) his or her hard-earned money in a principle residence and holds for a minimum of 2 years, gets to keep any and all profits. Buying your home is the single biggest risk of most American's lives. Why should government get a big chunk of our profits? What was their risk?

Pass this law and watch the housing market explode. Watch people who wouldn't even think of risking their money to buy a home yesterday, rush with both fists and both feet to buy a home tomorrow. The Home Industry is perhaps the most important business in America. As goes housing, so goes the American economy. If people feel their home is appreciating they feel rich, and they spend (on anything and everything). If they don't, they don't. This idea is how you get the economy moving again.

#6) To encourage the creation of millions of new jobs and the hiring of millions of Americans currently out of work, I propose a $7500 tax credit that goes directly to any employer who hires a new full-time employee during the next 3 years, increasing to $10,000 if the person they hire was out of work at the time. Government spending and hiring will not get us out of this recession (or depression). Only private industry and entrepreneurs will get us out of trouble. This is how you motivate private industry and small business to create jobs.

#7) If and when income taxes are reinstated (and unfortunately you know they will be), I propose a national flat tax with only two rates: 15% and 10%. But here's the creative catch. I call it a REVERSE FLAT TAX to encourage and motivate productivity and success. I propose a flat tax rate of 15% on any and all income up to $500,000 per year; then a 10% flat tax on any and all income above $500,000. That's it.

Does anyone in government ever think of why American business is successful? The biggest businesses in this country are successful because, the more their employees' make, the more they let them keep. Whether the industry is stocks, investment banking, real estate, insurance, mortgages, automobiles, retail sales, or even Hollywood talent agents- the best salespersons and producers (called “Rainmakers�) receive the highest compensation. Those who produce and earn the least, receive the lowest compensation. That's the way all successful businesses are run. You reward the 10% of employees at the top who always create 80% of the revenues (and success). They build your business from the top down. It's always been that way, always will.

But the American tax system is built backwards. We punish success. We punish the job creators. We punish the daring innovators and risk-takers. Don't we want to encourage someone to take their million dollars out of the bank, or out from under the mattress, to invest in stocks or start a business? Under the present income tax system, the more you make, the more the federal government takes from you, the less you keep. Now, that makes no sense whatsoever.

Why would we want to discourage success and achievement? The federal government should want to motivate America's best and brightest. It's certainly in their best interest to incentivize you and me to want to work 24/7; to want you and me to build more businesses; to want you and me to hire more employees; to want you and me to risk and invest more money; to want you and me to make more money. Greed, in fact, is good. Greed is what motivates us to serve others because when we make customers happy, they'll reward us greatly. Greed is good for America. Greed is good for the federal government. Greed is good for tax and spend liberals like Obama. The greedier I am; the more willing that I'll be to risk my capital; and as a result, the more tax money that will eventually flow to the government.

My Reverse Flat Tax finally solves that problem. Our tax system has operated backwards since inception. It does not motivate or reward success. To the contrary, it punishes success, creativity, ingenuity, and productivity. Once again, by restructuring the income tax system to emulate the most successful business models in America, we are treating government like a business; a business with common sense.

Because the proposed tax rate up to $500,000 is a flat 15%, my plan is “fair.� It treats virtually every America who earns anything from zero to $500,000 in the exact same way. All taxpayers, including lower income earners, get a low rate of taxation. No one can complain. Almost every American is in the same boat, except those who strive or risk to do even better. You can only win with my plan. There are no losers. There are winners, and even bigger winners. That's as fair as any tax system can get. Everyone does well, and there's an opportunity to do even better.

For those who argue that not enough tax revenues will flow to the government from my Reverse Flat Tax, that's the whole point. We have to first cut government spending dramatically and then we won't
need the same high level of taxation. Then we can afford to let the American people keep more of their own money in the first place. In my new book, “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts� I will lay out in detail my plan for cutting government spending dramatically.

This is my Economic Stimulus Plan to get America going and growing again. Does it cost trillions of dollars? Sure it does. So do all of Obama's plans. So do all of Congress' plans. But my plan puts the money directly in the hands of the taxpayers, instead of diverting it through a middleman (called
government). My plan is based on business models that are proven successful over centuries. My plan is based on incentivizing all Americans to risk and invest and build. Mine is based on running the federal government (for the first time) like a business. Mine is based on allowing taxpayers to keep more of their own money, without depending on government to pick winners and losers. Mine chooses only one winner- the American taxpayer. Mine is THE GREATEST ECONOMIC STIMULUS PLAN EVER.


Wayne Allyn Root was the 2008 Libertarian Vice Presidential candidate. His new book is released by John Wiley & Sons in May entitled, “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts.� For more of his views, commentaries and to watch his many media interviews, please visit his web site at: www.ROOTforAmerica.com

It's a ROOT Weekend on FOX: Root Announces His Economic Stimulus Plan on FOX News and FOX Business

Las Vegas, NV--January 17, 2009--Libertarian 2008 Vice Presidential candidate Wayne Allyn Root appeared on FOX Business on Friday with host Alexis Glick, and on FOX News Channel on Saturday with host Neil Cavuto, on the Fox Special “Inauguration 2009.� Root, the busy Libertarian political leader and author of the upcoming book, “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts� apeared on FOX to explain how the Federal Reserve is damaging the American economy; how Obama's economic stimulus plan will drown America in debt; and to present his own plan to stimulate the economy.

Root referred to Obama's “Whistle Stop Tour� as the “Whistle Past the Grave Tour� because while Obama smiles and waves, our economy is heading downhill towards a depression. On FOX News, Root called Obama “a President who understands nothing about the Constitution- virtually everything he is recommending from bailouts, to stimulus package, to tax cuts for people who don't pay taxes- is unconstitutional.�

Root continued, “Our economic crisis has been caused by crippling debt and bloated government spending. Obama's recipe for this crisis is more debt and more government spending. You cannot spend your way out of bankruptcy.�

Root's own economic stimulus plan will be the centerpiece of his upcoming book (released in May by John Wiley & Sons). Root favors a one year suspension of personal income taxes. He calls it an Income Tax Vacation. Root explains, “My plan rewards the people who create all the jobs and pay all the taxes in the first place. It allows American taxpayers and small business owners to simply keep more of their own money- and cut out the middleman (the government). When taxpayers are able to keep all their money for one year, the result will be the greatest economic recovery of all time. My plan puts the money in the hands of the its rightful owners- the people that earned it, and the people that know how to use it to invest in stocks, real estate, small business and the creation of jobs. It's time to save the group that truly is too big to fail- taxpayers, business owners, and job creators. The reason Obama is against this idea is he's afraid the taxpayers might find out that government wastes their money and can run just fine without it. He's afraid that taxpayers might actually like it and demand an end to income taxes.�

To his critics who say his idea is too expensive, Root says, “If we can afford $1 trillion for Obama's stimulus plan, we can certainly afford the $1.3 trillion it costs to suspend income taxes. Why can we afford to hand out trillions of dollars to fat-cat corporations, banks, Wall Street brokerage houses, auto companies, unions and people that don't pay any taxes, but it's considered too expensive to give the people that actually pay the taxes a one year vacation? This is the CHANGE that Obama should have brought to Washington. Instead he's bringing the same old 'big government, tax and spend, punish the successful people' policies that have failed miserably so many times in the past.�

Root calls himself "the only politician in the country with the guts to stand up for the people that pay all the taxes in the first place- taxpayers and small business owners." Root a lifelong Republican turned Libertarian calls the Republican Party "gutless, rudderless and leaderless."

Please visit Wayne's Website to see these and many other FOX News and FOX Business appearances by Wayne, as well as hear Wayne's latest appearance on “Savage Nation� with Michael Savage: www.RootForAmerica.com

The California Nightmare: Why California Leads the Nation in Deficit, Debt and Out-Migration

The latest reports are out- and there's good news and bad news for California. The good news is that California leads the nation. The bad news is that California leads the nation in deficit, debt and the amount of residents escaping to other states. The Mamas and Papas are rolling over in their graves. The California Dreamin' of the 1960's has morphed into the California Nightmare.

My new book “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts� is about the fact that liberal fiscal policies, government expansion, government employee unions, and government over-spending have all combined to bankrupt America. Examining the economic crisis occurring at this moment in America's largest state proves the point of my new book beyond a shadow of a doubt. “The People's Republic of California� experiment is Exhibit A that liberal “tax and spend� fiscal policy is a terrible failure. It is an experiment gone bad. VERY bad.

California is the perfect test tube baby- the state is arguably the most liberal, big spending, big government state in the entire United States of America. After decades of spending like there was no limit to taxpayers' money, California is mired in a deep economic crisis- poised to turn into economic Armageddon. The reality is that the state of California is bankrupt. Actually the state is far beyond bankrupt- what do you call “so bankrupt, there is no amount of money available anywhere in the world to pay off our debts�? California is so bankrupt that bankruptcy attorneys have no words to describe the depths of this disaster. Let's just call it “Bankruptcy squared.�


This is a lesson for the rest of America about what happens when you spend too much and tax too much. How much has California spent? The state has an expected budget deficit of at least $41.8 billion over the next two years. That's a bigger deficit than any state EVER. That's a bigger deficit than most countries. Yet since Governor Arnold Schwarzenegger's election in 2003, spending has increased by a staggering 40%. The actual dollar increase was $41 billion, to a total of $144.8 billion annually under the Governator. That's called “whistling past the graveyard.�


Here are the facts, plain and simple:

*California leads the country in spending on government employees.

*California spends twice as much as the national average on education (with dismal results).

*California spends almost $200 million per year on free college educations for illegal immigrants (no that's not a typo).

*California has the most draconian anti-business rules and regulations in the nation. That forces businesses to spend too much. The result is that California is the most costly place in America to do business (according to the Milken Institute's business cost index).

*California is heaven for trial lawyers and hell for small businesses. That could be why so many major employers have left the state (according to Investor's Business Daily).

*California has the second highest income tax rates in all of America. And it is among the nation's leaders in virtually every tax category possible- income taxes, business taxes, sales taxes, property taxes, taxes on real estate transactions, taxes on stock transactions, capital gains taxes, workers compensation taxes, the list is endless.


The results:
*Over the next 18 months, California is facing (according to the Governor) a budget deficit of over $40 billion dollars- and that may prove to be conservative.

*California is reduced to begging the federal government for a bailout. There is no other solution on the table. But one year after a federal bailout, the state would undoubtedly be $20 billion (or more) in debt again.

*California has been given the lowest bond ratings of any state in America (soon no one will dare to loan a penny to California). That little problem costs California's taxpayers millions of wasted dollars per year in increased interest costs.

*In the 1970's California led the nation in job growth. Since 2000, California's job growth is 20% lower than the nation. But it's not just any jobs that California is losing. According to the California Manufacturers and Technology Association, the state has lost 440,000 high-wage jobs.

*California's unemployment rate is now the 3rd highest in the nation.

*In the 1970's California was among the nation's leaders in population growth. Last year, over 144,000 more people left California than moved in. That led the nation. This was the 4th straight year of out-migration. Why is that important? As more and more high-income and high-net worth individuals move out, homes will drop in value, small businesses will fail (as they lose customers), and taxes will rise on the remaining citizens (to replace the taxes no longer paid by those who have escaped).


Do you get the picture? The proof is in the pudding- big government spending leads to economic disaster. When your state (or country) is run by government employee unions; teachers unions; trial lawyer unions (The Bar Association); auto unions (who demand billion dollar bailouts from politicians they supported); lobbyists; and special interests; the result is financial Armageddon. California is Exhibit A.

Governor Arnold Schwarzenegger should stand by a Washington D.C. freeway exit with a sign that says, “Broke. Need $40 BB handout. Will NOT work for food. We will spend it as soon as you give it to us- plus 20%. See you tomorrow.�

There is no way out for California, short of bankruptcy. The problem of course is California Dreamin. What I mean by that is that Californians live in a liberal, bleeding-heart, utopian dream world. It sounds like a nice thing to pay government employees huge salaries and pensions, as well as lifetime health benefits (as much as 60% higher than similar jobs in the private sector). It sounds nice to mandate a “living minimum wage.� It sounds nice to enforce tough rules and regulations on business. It sounds nice to offer generous welfare benefits to the poor. It sounds nice to spend lots of money on the homeless. It sounds nice to let anyone sue his or her employer for virtually anything. It sounds nice to make it virtually impossible for business owners to fire an employee. It sounds nice to mandate fines for whatever government thinks is beneficial for society (recycling, carbon taxes, greenhouse gases). It sounds nice to spend more money on education "to benefit the children." It sounds nice to offer free breakfast and lunch (as well as courses taught in Spanish) to poor students at public schools- even if they're here illegally. It sounds nice to pay for the college education of illegal immigrants. It sounds nice to defend animal rights. It sounds nice to ban offshore oil drilling. All of that sounds like “the right thing to do.� But in the real world, with real consequences, it is a dramatic failure.


The lesson here is that “nice� may sound nice in theory. It might work out well in some kind of utopian dream state. But in the real world “nice� doesn't pay the bills. “Nice� doesn't pay a budget in the real world. All the liberal do-gooding in the world only leads to one thing: the bankruptcy of your state and a massive exodus of taxpayers. Nice has turned the California Dream into a Nightmare.


Is this a problem (as liberal “tax and spend� politicians claim) of too little taxation in California? Not with the second highest income tax rates in the country. California even imposes an additional “millionaires� tax surcharge on the highest incomes. The result is that the wealthy pay huge taxes in California. The top 1% of the California population pays 50% of the income taxes. The top 14% of taxpayers (those earning $100,000 or more) paid 83% of the income taxes in California (the latest 2005 figures). Could there be a connection between these numbers and the mass exodus of productive people (like me) out of the state? I escaped to Nevada a decade ago for these very same reasons. The California Nightmare of big government, big taxes and big spending drove me away. My loss has cost California dearly- in the way of millions of dollars of lost tax revenues to the state. But in the real world that's what happens when you choose to treat the people who create the jobs and pay the taxes badly- they choose to leave. The result: California gets none of my money.

The California economic model proves once and for all that taxes are not too low. The out-of- control deficit in California has nothing to do with taxes. California has a spending addiction. It just doesn't matter what the tax rates are. Whatever tax revenues flow into government coiffeurs, the spendthrift politicians and bureaucrats in California find a way to spend it all- and then some. The actual total is irrelevant. Give them $1.00, and California politicians will spend $1.50. But raise taxes and give them $2.00 (thereby bankrupting small businesses and forcing them to flee your state) and they'll spend $3.00. There's always some “worthy� new government program to spend it all on. When you give billions of dollars of tax revenues to a government bureaucrat looking to keep a job for life, or a career politician looking to keep his or her job for life, they will find a way to spend it all- plus 20%.


How do we stop the insanity? Let's start with state and federal employees. No sane state can justify paying government employees compensation packages 40% to 60% higher than the private sector. Have you ever been to the DMV? Is government run efficiently for all that money? Is it run effectively for all those big salaries given to public service employees? In many cases, government employs people who couldn't get a job in the private sector. Do they deserve compensation 60% higher than you or me? On what grounds? Do they deserve to retire at age 55, while you and I work till the day we die, to pay all the taxes necessary for their huge pensions and unlimited health benefits?


Education is another place to start. “Spending more for the children� is one heck of a sound bite, yet what it sounds like and what it means are completely different things. A raise in “education spending� has little or NOTHING to do with spending more money on our children, or improving their economic opportunities in the future. It merely means spending more money on the education bureaucracy. It means hiring thousands of new bureaucrats (administrators) who will never pick up a book, grade an exam, or teach a course. Raising teacher salaries to far above the national average doesn't help the kids (just look at California for the proof). It does however increase union dues for the teachers union. It does fund more bureaucrats. It does bloat the population of the teacher's union- thereby giving it more clout and more reliable votes (in order to vote themselves more raises and pension increases).

Giving teachers tenure, so that under-performing teachers can never be fired- doesn't help the kids either. Giving teachers bigger pensions and allowing them to retire at age 55 to enjoy a pension for LIFE doesn't help the children one iota. But if that teacher lives to age 85, collecting a big pension for 30 years, it is guaranteed to overwhelm California's taxpayers and bankrupt the state budget. In many cases, government employees are retiring young enough to be paid a pension for more years than they worked. Perhaps now you understand why California is mired in deficit and debt.


It all sounds “nice� and seems like “the right thing to do.� In reality it's a one-way street leading to deficit, debt, and eventually bankruptcy. There just aren't enough taxpayers, nor is there enough money in any state or country, to allow people to retire at age 55 and collect pensions for 25 to 30 years (or more). The numbers just don't add up- unless you expect the rest of us to pay 70% or 80% tax rates until the day we die to pay for this “privileged class� of federal and state employees. And even that might not be enough.


Allowing trial lawyers to run wild sounds great for California consumers, patients, and of course the “victims� of abuse by big business- until you realize a few facts of life. First, if you raise taxes on business, the result will be a mass exodus by big business, small business and professionals (like doctors). They will flee your state by the tens of thousands- thereby reducing the tax base and requiring more tax increases for those who are left. Second, most jobs and tax revenues are created by thousands of small business owners- not by big business. Small business is hurt far more by high taxes and workers compensation rates. Third, business (even big business) isn't all bad- the reality is that business pays the bills for all these bloated government programs and government employee pensions. Chase business away and there's no one to pay the bills. Government (and all the people living off government) desperately needs business to be successful and satisfied, or government ceases to exist.


Fighting on behalf of the rights of “defenseless animals� sounds like the right thing to do- until new laws requiring more humane treatment of chickens (just approved by the voters of California in the 2008 election) force the entire egg industry to leave your state. That reduces tax revenues by millions of dollars- once again increasing the deficit and debt of California.


Radical environmentalism sounds nice too. Saving the beaches by banning offshore drilling; making it virtually impossible for new oil refineries to open within your state borders; and mandating draconian new greenhouse gas rules that will add billions of dollars to bills paid by business and consumers; all sounds great, until it you get your latest utility bill…until you see the bill as you fill up at the pump…until you realize every product you buy at the store now costs more…until you realize that these government mandates result in more energy dependence on foreign nations that support terrorism. The result is that Californians are treated to the highest energy costs in all of America- 35% higher than the national average.


This reliance on big government, big unions, big taxes and special interests is a toxic brew that has poisoned the future of California, its citizens, its taxpayers, and future generations. The California Dream has turned into a toxic nightmare.


Now it's coming to a city, county or state nearest you. Instead of running from Armageddon, we're embracing it. We're electing more big government proponents (Obama and his friends); creating more bureaucracy (more agencies with hundreds of thousands of employees like Homeland Security); more draconian government rules and regulations (in the name of global warming); more government involvement in our everyday lives (universal healthcare); more foreign aid, foreign entanglements and wars across the globe; more powerful unions (our bailouts of the “Big 3� automakers will prop up bloated auto union contracts); more corporate welfare (by handing taxpayer money to wealthy companies through trillion dollar bailouts); more government “economic stimulus� packages; and certainly higher energy costs for consumers.


In reality the best way to stimulate the economy is not for government to spend more, while the citizens must cut more from their budgets. It is not for government to increase budgets and hire more employees, while the private sector cuts budgets and lays off employees. It is not for government to choose winners and losers- by giving away the taxpayer's money through bailouts, corporate welfare, or stimulus giveaways. It is not for the government to impose new mandates and higher taxes in the name of global warming that force businesses out of business.

The best way to stimulate the economy is simple: dramatically cut the taxes of those who earn the money and create the jobs. There's no middleman (government) needed. Let people keep more of the money they already earn. Now that's the most powerful economic stimulus plan in the world. Give taxpayers and job creators like me a vacation for the next year from income taxes and watch the economy rebound. Watch real estate prices rise again. Watch the stock market soar. Watch credit and capital markets start to lend again. Watch jobs increase. Give taxpayers and job creators dramatically and permanently reduced taxes, so we can keep more of our own money, and get ready for the greatest economic expansion in history.


President Ronald Reagan already proved it works. But he made the mistake of allowing government spending to increase wildly out-of-control, at the same time as he dramatically cut tax rates. That was a big mistake. Now combine the Reagan tax cut model with a dramatic cut in the size, scope and spending of government, and watch the economy go and grow. But that would be far too simple. Too much common sense confuses politicians. Either that, or my plan ruins their plans to get re-elected by spending more and giving away taxpayer's money to special interest groups and entitlement addicts.

We're headed in the wrong direction. Instead of running away from the train wreck of California's economic model, we are embracing it. With Obama as President, now all of America can turn into one big California with crushing debt; dramatic job losses; out-migration; failing schools; failing businesses; higher energy costs; higher business costs; bigger legal bills; and a drastically poorer quality of life. California Dreamin' has turned into our national obsession…and our national nightmare.


Wayne Allyn Root was the 2008 Libertarian Vice Presidential candidate. His new book, “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts� will be released in May 2009 by publisher John Wiley & Sons. For more of Wayne's political views, commentaries and to watch his many media appearances on FOX News Channel, please visit his web site at: www.ROOTforAmerica.com

Destroy the Fed Before the Fed Destroys Us

“Little by little, business is enlarged with easy money. With the exhaustless reservoir of the government of the United States furnishing easy money, the sales increase, the businesses enlarge, more new enterprises are started, the spirit of optimism pervades the community…bankers are not free from it. They are human. The members of the Federal Reserve board will not be free from it. They are human…Everyone is making money. Everyone is growing rich. It goes up and up…until finally someone
whose judgment was bad, someone whose capacity for business was small, breaks; and as he falls he hits the next brick in the row, and then another, and then another, and down comes the whole structure. That is no dream. That is the history of every movement of inflation since the world's business began, and it is the history of many a period in our own country. That is what happened to a greater or less degree before the panic of 1837, of 1857, of 1873, of 1893 and of 1907…when credit exceeds the legitimate demands of the country the currency becomes suspected and gold leaves the country.�
A politician named ROOT


I am currently writing a book entitled, "The Conscience of a Libertarian" patterned after my hero Barry Goldwater and his all-time conservative best-seller, "The Conscience of a Conservative." In my book, I present Barry Goldwater's insightful philosophy back in 1959 (when he wrote his book) to prove that nothing in politics ever really changes. It has been half a century since Goldwater put pen to paper to write his amazing book. His words back in 1959 could easily be used today to describe virtually all of our country's problems- and few readers would even notice that anything he talks about is half a century old. His description of problems and solutions back then turned out to be right on the money. If only we had listened.

Well the quote above by a certain politician named ROOT certainly describes the economic crisis of 2008 to a T: the bailout, the bankers' mistakes, the stock market collapse, the credit freeze, and the reaction of the Federal Reserve. But they aren't my words. And they weren't spoken about the government banking crisis and bailout of 2008. Yes, they were the words of a politician named Root. Just not this Root.

Those words above were actually spoken in 1913 by Elihu Root, United States Senator from the state of New York. That distinguished politician Root went onto become Secretary of War and Secretary of State under President Teddy Roosevelt. But no truer words have ever been spoken. Despite being almost a century old, those words almost perfectly describe our current economic crisis. Once again, proving that nothing ever really changes. History repeats itself again and again- it's just a recycling of the same events and same mistakes. Only those who study history can hope to avoid making those same mistakes over and over again.

As a former member of the 2008 Libertarian Presidential ticket who speaks across the country on economic issues, I am constantly asked, “How would you solve our current economic crisis?� In my new book, I'll explain how I'd dramatically cut spending and taxes. I'll explain how important it is to institute term limits (to limit the power of career politicians). I'll explain the greatest threats to our economic prosperity- big government, big unions, and big taxes. More specifically the union threat that comes from teachers unions, auto unions, lawyer unions (known as The Bar Association) and perhaps the most damaging of all, government employee unions. I'll describe the threat to our economy from illegal immigration. I'll describe the threat to our economy from proponents of global warming. But before the book even comes out, I want to present what is perhaps the most important piece of the puzzle: the elimination of the Federal Reserve. It's that important.

I have come to understand that we must destroy this cancer on our economy before the Fed destroys us. And in concert with the elimination of the Fed, we must go back to the Gold Standard. Is this a new solution? No, my namesake Elihu Root had the same advice back in 1913 when arguing against the formation of a central bank. If only we had listened to Root back then, just as we should have listened to Barry Goldwater back in 1959.

“Eliminate the Fed? Are you crazy?� I can hear the naysayers now. But the Federal Reserve isn't the solution. Like big government (of which they are a tool), the Fed is the problem. Virtually every economic downturn since 1913, when the Fed was created, can be traced to Fed policies. Lest we forget, the Fed was around in 1929 when the stock market crashed. They were around for the Great Depression- actually they were right smack dab in the middle of the worst economic mess in U.S. history. Their policies helped to turn a deep recession into the Great Depression. Even if you're a Fed defender, and don't agree that they were a contributor to the Great Depression, you'll have to admit that the Fed didn't prevent or solve the deepest economic crisis in American history. They certainly didn't see it coming. But then they never saw the financial crisis of 2008 coming either.

As recently as last April 2, 2008, the Fed didn't even know we were in a recession. Back then, Fed Chairman Ben Bernanke testified before a joint Congressional committee where he said, "A recession is possible." He described the economy back then as in "slight contraction." In response to those remarks, I wrote a political commentary (just like this one). My shocked and angry response was to ask "Are the Feds cooking the books?" That's how certain I was as a small businessman that we had already been in a deep recession for months. I believed Bernanke's statement to be so ignorant, naive and just plain dangerous, as to indicate he was either purposely lying to the American public, or hopelessly out of touch.

How is it possible that a small businessman like me clearly understood how bad things were in the
American economy way back in April 2008, while our Fed Chairman was completely in the dark (or in denial)? The answer is simple- I live on Main Street. The Fed lives in an "Ivory Tower" and hasn't a clue what's happening in the real world, until after it happens.

The Fed doesn't run a business. The Fed simply reads about business. They study reams of economic statistics- thereby deducing we have a problem long after guys and gals like me with a dozen, or a few dozen employees, have already experienced it. Small businesspersons are the "canary in the coal mine."

Little 'ol me knew there was a huge economic crisis going on, when the big, bad, powerful Fed still didn't have a clue. How scary is that? These are the geniuses running the entire U.S. economy. Worse, Bernanke is widely considered one of the world's experts on the Great Depression. This is a man who once served on a panel of experts that determine when recessions begin and end. Yet it turns out he doesn't know his front from his end. It is obvious that if you want to know whether we're in a recession or not, you're better off asking the butcher, baker or candlestick maker. Or in this case, the butcher's son.

By the way, in that same commentary, I reported that the economy for small businessmen like me was
so bad that we were not only already in a recession, but facing the deepest recession since 1929- possibly a second great depression. It turns out that my prediction was far more accurate than anything that came from the lips of Ben Bernanke, or anyone in the Fed, last Spring. Perhaps we need to put a small businessperson in charge of the Fed. Or better yet, eliminate it altogether.

The Fed's strategy is simple: The Fed floods the economy with “easy money� by either artificially lowering interest rates, or printing more money. That creates an artificial economic boom- to help politicians to get elected or re-elected. Invariably this artificial economic boom is followed by a very real “economic bust.� Recent examples of this artificial bubble bursting can be seen in the dotcom (technology & computer) world implosion in 2000, and again when the banking, credit and real estate markets collapsed in 2008.

If it's so easy to see the mistake, why does the Fed continue to pursue a failed strategy? Good question. The answer is simple: political pressure from fat cats (big contributors like banks, Wall Street, real estate firms), special interests (big contributors), and voters- who demand prosperity, easy money, low interest rates, and entitlements from big government. Someone has to pay for all these giveaways, handouts, goodies, corporate welfare, bailouts, stimulus packages, and entitlement ponzi schemes. The Fed makes it all possible by printing up new money to pay for it all. Without the Fed printing presses working overtime, politicians couldn't make promises to pay for every program under the stars. They certainly couldn't afford to pay for all those promises.

Nothing in the Constitution gives Congress the authority to give control of monetary policy to a central bank. NOTHING. That same United States Constitution demands that our U.S. currency be backed by stable commodities- such as gold or silver. The gold standard is a very simple concept- paper notes (our currency) are simply set at a fixed value, by matching them to pre-set fixed quantities of gold.

The return to the gold standard is (excuse the pun) the “gold standard� for a stable, credible, reliable money supply and a true free market economy. Why don't politicians want to set our currency to the gold standard? Simply because the gold standard stands in the way of the goals of big government proponents and their endless spending programs. The gold standard prevents politicians from inflating the money supply to hide the actual costs of the welfare state- from welfare itself, to corporate welfare, bailouts, handouts, entitlements, stimulus packages and nonstop wars across the globe. A billion here, and a billion there, and eventually this stuff starts to add up to serious money! That's exactly what politicians are afraid of.


In 1971 Richard Nixon totally removed the dollar's link to gold. This final deathblow to “real� American money created the fiat currency (paper notes) that we all use today. With this decision, the Fed could now print unlimited amounts of inherently worthless paper dollars, and in their eyes, were immune from any (immediate) consequences.Why did Nixon do it? To hide out-of-control government spending on the Vietnam war. Bombs, bombers, jet fighters and tanks cost big money. Governments can't afford them- unless the Fed covers the actions (and tails) of big spending politicians by creating more money out of thin air.

Needless to say, since 1971 inflation and the CPI have soared and the savings of hardworking Americans have been subtlety robbed to fund the giant welfare system that exists today. Unlike the deflationary early 1930s, when the US was on a gold standard and hence couldn't print unlimited dollars, today the US has no standards at all. The Fed can and does print (or create via computer) as many dollars as it wants and as a result, the money supply growth has vastly outstripped underlying real economic growth since 1971. Bernard Madoff has nothing on the U.S. government. Our government runs the biggest ponzi scheme on earth.

The politicians want no part of the gold standard because it threatens to limit their imaginations (and re-elections). It ruins their party. It keeps their imaginations (and greed) in check. With a gold standard in place there is no ability for a central bank to create money out of thin air to fund any and every bailout, stimulous package, pet project, or earmark. The gold standard forces politicians to live within their means. It forces banks to lend only to those with the credit to afford it- because the federal government is prevented from printing unlimited new money to bail them out.

The gold standard is a Libertarian's dream. It prevents deficit spending. It prevents the unlimited hiring of government bureaucrats- and the unfunded pension liabilities that come with them. The gold standard hinders government's ability to dole out massive welfare and entitlement programs. The gold standard stands in the way of government's ability to redistribute wealth and pursue economic re-engineering. With the gold standard in place, government automatically becomes more open, honest and transparent- it either lives within its means or raises taxes, as opposed to simply printing more money (creating a stealth tax called inflation).

Instantly, with the gold standard in place, government is more responsible and accountable to the people and the taxpayers. Inflation caused by the wholesale printing of money by the Fed is theft- government sanctioned white-collar crime. Because of the wholesale printing of money by the Fed, taxpayers and citizens lose the value in their savings accounts and assets without knowing how or why.

Here is a good question to ask your political leaders and representatives: Why on earth would we want to rely on the wisdom of fallible human beings (at the Fed) to determine monetary policy and stability,
when the gold standard is infallible? There is concrete proof that the Fed makes mistakes- afterall, the Fed never saw this present economic crisis coming. Sound familiar? The flawless Fed never saw the 1929 crash or Great Depression coming. Perhaps an adjustment to their crystal ball is needed? The gold standard is objective- it doesn't need to think. Humans on the other hand are subjective- they often make bad decisions (over-reacting, under-reacting, or being intimidated in response to political pressure at the moment).

Under the gold standard, money regulates itself. The gold standard regulates government by keeping spending under control. The gold standard regulates the behavior of banks (limiting their lending to qualified borrowers). The gold standard regulates savings- citizens are automatically incentivized to save more if their money is actually worth something. Why save $1.00 today, if that same $1.00 is worth 30% less tomorrow due to the Fed printing enormous amounts of new money?

The gold standard regulates interest rates, which suddenly reflect real supply and demand for credit, not numbers artificially created out of thin air to reflect political needs. The gold standard regulates business, as CEO's must base their business decisions on sound policy (knowing government or the Fed won't be there to bail them out).

Elihu Root realized all this back in 1913. It's a shame we didn't listen. Please study history and explain to me where the elder Mr. Root was wrong? Explain to me what exactly the Fed has accomplished in the almost 100 years since then? How have those results been an improvement in performance over the economic results the U.S. economy achieved under the gold standard?

If you don't believe me, or Elihu Root, just listen to the words of Thomas Jefferson, the Founding Father who wrote our Declaration of Independence:

“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.�
--Thomas Jefferson

Lastly, ask yourself the most important question of all: With record-setting budget deficits under President Bush; trillion dollar bailout and stimulus programs under President Bush; even bigger trillion dollar bailout programs under President Obama; even bigger trillion dollar stimulus packages under President Obama; record-setting handouts, entitlements and redistribution of wealth under President Obama (due to higher taxes); record-setting national debt under President Obama; and the Fed printing presses working overtime to create unlimited quantities of depreciating dollars (to cover up all this lavish spending); why would anyone want to own the dollar? Why indeed. We are in for a rough ride.

The antidote is simple: destroy the Fed before the Fed destroys us.




Wayne Allyn Root was the 2008 Libertarian Vice Presidential candidate. For more of his views, commentaries and to watch his many media interviews, please visit his web site at: www.ROOTforAmerica.com