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Saturday, March 03, 2012

They’ll Never Forgive Andrew Breitbart

We conservatives know we have lost a hero and an irreplaceable asset in the death of Andrew Breitbart, who died, somewhat mysteriously, earlier this week, at the age of 43.

Breitbart was a dedicated, conservative journalist who was passionate about exposing corruption – especially the corruption of leftist ideas and causes. He brought down the disgusting Anthony Weiner, and exposed one of the most corrupt schemes to steal taxpayer dollars with his coverage of the Pigford scandal.

Our biggest debt to Andrew, though, was his exposure of the ACORN corruption, the organization devoted to providing Democrat candidates with the votes of non-existent and deceased voters. It was largely through Breitbart’s efforts that ACORN was defunded.

While many are applauding Breitbart for his efforts, and some are honoring the tradition not to speak ill of the dead, many liberal talking heads have no such compunction or scruples:

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Wednesday, February 29, 2012

Canada Also Interned Japanese Citizens

Now and then efforts have been made to make me feel guilty about the internment of Japanese-Americans during World War II, although I was only six years old at the time of Pearl Harbor. Only recently did I learn that Canada interned 23,000 of its ethnic Japanese citizens at the same time, and also interned Canadians of German and Italian origin as well. Most of this information comes from Wikipedia, not the best of sources, but it is confirmed by documents in the Vancouver Public Library.

“The evacuation of the Japanese Canadians, or Nikkei Kanadajin, from the Pacific Coast in the early months of 1942 was the greatest mass movement in the history of Canada. By the eve of Pearl Harbor, nearly 23,000 people of Japanese descent made their home in Canada, principally in British Columbia. Three-quarters of that number were naturalized or native-born citizens. The Nikkei were foresters and fishermen, miners and merchants. Except for the industrialists who profited from cheap Asian labor, much of white British Columbia regarded the Japanese Canadians with suspicion, if not rabid hostility. Over the years the Nikkei had been targets of unremitting discrimination and occasional violence.

When war was declared on Japan in December 1941, the cry to rid British Columbia of the Japanese menace was taken up in many quarters, including provincial and municipal government halls and influential local newspapers. Tensions mounted and early in 1942 the Ottawa government bowed to West Coast pressure and began the relocation of Japanese nationals and Canadian citizens alike. While this forced resettlement mirrored the wartime policy of the American government, in Canada there were some important differences. Unlike the United States, where families were generally kept together, Canada initially sent its male evacuees to road camps in the B.C. interior, to sugar beet projects on the Prairies, or to internment in a POW camp in Ontario, while women and children were moved to six inland B.C. towns created or revived to house the relocated populace. There the living conditions were so poor that the citizens of wartime Japan even sent supplemental food shipments through the Red Cross. During the period of detention, the Canadian government spent one-third the per capita amount expended by the U.S. on Japanese American evacuees.

Not until 1949, four years after Japan had surrendered, were the majority of Nikkei allowed to return to British Columbia. By then most had chosen to begin life anew elsewhere in Canada. Their property had long before been confiscated and sold at a fraction of its worth. “ Vancouver Public Library

“Camps and relocation centres in the Kootenay region
Greenwood, Kaslo, Lemon Creek, New Denver, Rosebery, Salmo, Sandon, Slocan City, and Tashme. Some were nearly-empty ghost towns when the internment began, others, like Kaslo and Greenwood, while less populous than in their boom years, were substantial communities.Template:Joy Kogawa, Obasan (Markham, Ontario: Penguin, 1983), p. 118, as quoted in Roy Miki, Redress: Inside the Japanese Canadian Call for Justice (Vancouver: Raincoast, 2004), pp. 52-53.

Camps and relocation centres elsewhere in BC
Bridge River, Minto City, McGillivray Falls, East Lillooet, Taylor Lake. Other than Taylor Lake, these were all called "Self-supporting centres", not internment camps.

The first three listed were all in a mountainous area so physically isolated that fences and guards were not required as the only egress from that region was by rail or water only. McGillivray Falls and Tashme, on the Crowsnest Highway east of Hope, British Columbia, were just over the minimum 100 miles from the Coast required by the deportation order, though Tashme had direct road access over that distance, unlike McGillivray. Because of the isolation of the country immediately coast-wards from McGillivray, men from that camp were hired to work at a sawmill in what has since been named Devine, after the mill's owner, which is within the 100-mile quarantine zone. Many of those in the East Lillooet camp were hired to work in town, or on farms nearby, particularly at Fountain, while those at Minto and Minto Mine and those at Bridge River worked for the railway or the hydro company.

Camps and relocation centres elsewhere in Canada
There were internment camps near Kananaskis, Alberta; Petawawa, Ontario; Hull, Quebec; Minto, New Brunswick; and Amherst, Nova Scotia.

Italian Canadian Internment
As of June 10, 1940, Italy joined the war on the axis side. After that, Italian Canadians were heavily scrutinized. Openly fascist organizations were deemed illegal while individuals with fascist inclinations were arrested most often without warrants. Organizations seen as openly fascist also had properties confiscated without warrants as well. A provision in the Canadian war measures act was immediately enacted by Prime Minister King. Named the Defense of Canada Regulations, it allowed government authorities to take the needed measures to protect the country from internal threats and enemies. The same afternoon which Italy joined the axis powers, Italian consular and embassy officials were asked to leave as soon as physically possible. Canada, which was heavily involved in the war effort on the allies’ side, saw the Italian communities as a breeding ground of likely internal threats and a haven of conceivable spy networks helping the fascist axis nations of Italy and Germany. Though many Italians were anti-fascist and no longer politically involved with the homeland, this did not stop over 700 Italians from being sent to internment camps throughout Canada.

The main brunt of Italian prisoners were sent to Camp Petawawa situated in the Ottawa River Valley. By October 1940 the round up had already been completed.

Italian Canadian Montrealer, Mario Duliani wrote, "The City Without Women" about his life in the internment camp Petawawa during World War II which describes a personal account of the struggles of the time. Throughout the country Italians were investigated by RCMP officials who had a complied list of Italian persons who were politically involved and deeply connected in the Italian communities. Most of the arrested individuals were from the Montreal and Toronto areas and pronounced enemy aliens.

After the war, resentment and suspicion still lingered upon the Italian communities.

Laval Fortier, commissioner for overseas immigration after the war wrote “The Italian South Peasant is not the type we are looking for in Canada. His standard of living, his way of life, even his civilization seem so different that I doubt if he could ever become an asset to our country”.[15] Such remarks embedded a large proportion of the country that had negative views upon the Italian communities. A gallop poll released in 1946 showed 73 percent of Québécois were against immigration with 25 percent stating Italians were the group of people most wanted kept out. Such a stance upon the Italian people was evident even though years prior to the war had proven Italians were an asset to the Canadian economy and industry, for they accomplished critical jobs that were seen as very unappealing such as laying track across rural and dangerous landscapes and the construction of infrastructure in urban areas.” Wikipedia

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Tuesday, February 28, 2012

Inflation Is the Cruelest Tax of All

While President Obama and some other politicians are advancing various tax plans, Obama’s policies are decimating all Americans with the cruelest tax of all – inflation.

CNSNews.com
“So far, during the presidency of Barack Obama, the price of a gallon of gasoline has jumped 83 percent (editorial note - now actually 100%), according to data from the Bureau of Labor Statistics.

During the same period, the price of ground beef has gone up 24 percent and price of bacon has gone up 22 percent.

When Obama entered the White House in January 2009, the city average price for one gallon of regular unleaded gasoline was $1.79, according to the BLS. (The figures are in nominal dollars: not adjusted for inflation.) Five months later in June, unleaded gasoline was $2.26 per gallon, an increase of 26 percent.

By May 2011, gas prices hit a high under the Obama administration at $3.93, about four percentage points away from the July 2008 high.

The U.S. city average retail price for one pound of 100 percent ground beef was $2.36 in January 2009. As of December 2011, that price had risen to $2.92—a 23.7 percent increase and a new peak. (Ground beef prices have risen every month since November 2009 – 26 months of price increases.)”

Everyone who shops for groceries knows what is happening at the cash register. Since the price of gasoline has doubled since Obama took office, the official statistics from the government seem bizarre:

CONSUMER PRICE INDEX – JANUARY 2012
“The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent in January on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 2.9 percent before seasonal adjustment….

The all items index has risen 2.9 percent over the last 12 months, a slight decrease from last month’s 3.0 percent figure. The index for energy has risen 6.1 percent over the last year and the food index 4.4 percent; both figures are slight declines from last month. The index for all items less food and energy has risen 2.3 percent, its largest 12-month increase since September 2008.”

It is not only the official unemployment rate that is suspect; who can believe this official Consumer Price Index? We can only hope that voters will remember what they are actually paying for gas and groceries when they vote next November.

This inflation is the direct result of the towering mountain of debt Obama is creating
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Monday, February 27, 2012

A Gentle Reproof for Bill O'Reilly

It has been the availability of cheap, abundant energy that, more than anything else, has completely changed for the better the standard of living for ordinary people. That's why it is so important for everyone to understand the implications of socialist policy on energy, and why I am harping on the distortions Bill O'Reilly has been selling.

A Gentle Reproof for Bill O'Reilly

By James G. Wiles February 25, 2012 American Thinker

Litigation isn't poker. It's chess. You have to think three or four moves ahead.
Economics is like that, too.

Nothing is ever actually ceteris paribus. All the little economic variables are always moving and changing. The world's largest economy (ours) is all interconnected. Touch one gizmo, and you affect several other gizmos. All the little widgets talk to each other.

It's even more so with our even larger, globalized economy.

As the Heritage Foundation said in a recent debate over tax policy, "[s]mall decision changes create feedback effects that can snowball and change the path of the entire economy." And, in a globalized economy, corporations can -- over time -- simply take their assets and go elsewhere.

The most recent opinion-leader to fall into this trap of thinking statically, rather than dynamically, is Fox News's Bill O'Reilly.

There he was on The O'Reilly Factor on Thursday night, singlehandedly solving the gasoline price spike. No problem. O'Reilly's on the case. He even said his plan is how the GOP presidential candidates could show leadership and seize the initiative from Mr. Obama.

What, there's actually no shortage of petroleum or petroleum products in the United States? Or on world markets, either? Wait, this price spike isn't the result of the law of supply and demand?

To the contrary, sez Bill O'Reilly to "the largest audience in cable news," what's really going on here is good old-fashioned greed. The American oil companies -- saddled with excess supply after a warm winter -- are selling their products overseas (especially to China) where they can make more money.

No problem, sez O'Reilly. I'll see your $4.00-a-gallon gasoline and call you. You brought a knife, Mr. Oil Executive? Fine. We'll bring a gun.

"Hey, I can fix this."

Bill O'Reilly knew just what to do. Invite Big Oil's CEOs down to the White House for a little chat -- rather as President Obama once did the Big Three automakers and the Wall Street bank CEOs. And just give them, so to speak, the Full Chicago Treatment.

Get out the baseball bats.

Slap an export tax on petroleum products. Capture Big Oil's extra profits, so the incentive to sell foreign rather than domestic is eliminated. Mention that all of Big Oil's drilling permits -- especially future ones -- are subject to the whim of the U.S. secretary of the interior.

"Nice drilling permit you have there. I wouldn't want anything to happen to it."
Strong medicine?

Yes. And it won't work, either.

O'Reilly, I believe, is honestly mistaken. Unlike Charlie Rose, who had Daniel Yergin (author of The Quest: Energy, Security and the Remaking of the Modern World) on the other night and generated neither heat nor light, Bill O'Reilly took a hard whack at the ball. Indeed, Bill O'Reilly's arguing, in effect, that President Obama should put this latest crisis to use by taking even greater control over yet another sector of the American economy.

But he's thinking of the wrong analogy -- drawn from a different time and a very different American economy. He's remembering President John F. Kennedy and Big Steel.

Back on April 10, 1962, America's major steel companies (all but one [USX] now extinct) decided to raise the price of steel by the same amount. Big Steel's price increase lasted four days. JFK brought the power of his office to bear -- call it the O'Reilly Solution -- and Big Steel backed down. Attorney General Bobby Kennedy, by all reports, did a credible imitation of Al Capone disciplining a wayward capo with a baseball bat.

That's not today's global economy.

Today's global economy is American companies doing their IPOs overseas to get out from under Sarbanes-Oxley and foreign corporations foregoing listing on American stock exchanges. It's British companies moving out of the City of London to Singapore, Dubai, and Hong Kong to get away from high taxes on executive bonuses. It's French investment bankers commuting to the City of London to avoid working under onerous EU regulations.

The other analogy -- which I'm sure Bill O'Reilly remembers -- is Richard Nixon's August 1971 announcement of wage and price controls. They didn't work, either.
So, Bill: you wanna slap export controls on refined petroleum products?

Do you have any idea where this leads? There won't be another refinery built in the United States. We will end up importing all our refined products to escape the controls. If the only way U.S. oil companies can reap the world price is to sell overseas, then you'll see this entire industry migrate out of the United States.
And almost all the high-paying jobs will go, too.

In twenty years, the U.S. petroleum industry will have moved overseas, corporate headquarters included, because the U.S. laws and regulations which Bill O'Reilly is suggesting will handicap them vis-à-vis their competitors. Their American shareholders will support these moves. All the high-paying jobs which used to be in Texas, Louisiana, and Oklahoma -- not just the headquarters jobs, but also technical services as well -- will be in Dubai, Singapore, Holland, and all sorts of havens.
Maybe Brazil.

Natural resources is a global industry. The natural resource companies headquartered in the United States don't need to be headquartered in the United States. It's that simple. Controls always have this effect.

Bill O'Reilly is a thinking man, a well-educated man, and a highly intelligent man.

Last night's Talking Points Memo was not his best effort.

I'm sure Bill O'Reilly will think this through.

It is also my honest and long-held position that the quickest and best way to solve America's energy problems is to scrap the US Department of Energy, and the quickest and best way to improve education is to scrap the US Department of Education.

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Sunday, February 26, 2012

Gold, Oil, Interest, O'Reilly, Obama

The price of gasoline is soaring while interest rates remain at historic lows. Working people and their families are suffering from high unemployment and gas prices, while seniors, dependent on interest income, are eating dogfood. All Americans are suffering from the housing crisis in various ways.

Bill O’Reilly on The Factor goes on a nightly rant against the oil companies (everyone hates them), but, although many factors are involved, the main reason for rising gas prices and low domestic interest rates is rooted in policies of the Obama Administration.

First, a little history: although the Arabs publicly stated that the reason for their oil embargo in October, 1973 was payback for our support of Israel, the main reason was economic. Traditionally, Arabs sell oil for dollars and convert their dollars to gold. From 1933 to 1972 the gold price was fixed at $32 per ounce, and it was illegal for Americans to own gold. In 1972 gold was freed, and its price soon went to $100. The oil embargo caused the dollar-price of oil to jump so that the gold-dollar-oil relationship was repaired, and the embargo ended.

Now, as the debt-financing of the Obama Administration continues, see what is happening to the price of gold:

Now look at what has happened to interest rates within the United States:

In other words, Obama is deliberately keeping interest rates near zero here while causing the value of the dollar as an international currency to plummet, thus causing gold and oil prices to increase dramatically.

One might ask what Obama’s motives really are in arranging this catastrophe, especially since he is doing everything he can to throttle domestic production.

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Saturday, February 25, 2012

Why Apologize to Afghanistan?

Why Apologize to Afghanistan?

By Andrew C. McCarthy February 25, 2012 National Review

We have officially lost our minds.

The New York Times reports that President Obama has sent a formal letter of apology to Afghanistan’s ingrate president, Hamid Karzai, for the burning of Korans at a U.S. military base. The only upside of the apology is that it appears (based on the Times account) to be couched as coming personally from our blindly Islamophilic president — “I wish to express my deep regret for the reported incident. . . . I extend to you and the Afghani people my sincere apologies.” It is not couched as an apology from the American people, whose frame of mind will be outrage, not contrition, as the facts become more widely known.

The facts are that the Korans were seized at a jail because jihadists imprisoned there were using them not for prayer but to communicate incendiary messages. The soldiers dispatched to burn refuse from the jail were not the officials who had seized the books, had no idea they were burning Korans, and tried desperately to retrieve the books when the situation was brought to their attention.

Of course, these facts may not become widely known, because no one is supposed to mention the main significance of what has happened here. First, as usual, Muslims — not al-Qaeda terrorists, but ordinary, mainstream Muslims — are rioting and murdering over the burning (indeed, the inadvertent burning) of a book. Yes, it’s the Koran, but it’s a book all the same — and one that, moderate Muslims never tire of telling us, doesn’t really mean everything it says anyhow.

Muslim leaders and their leftist apologists are also forever lecturing the United States about “proportionality” in our war-fighting. Yet when it comes to Muslim proportionality, Americans are supposed to shrug meekly and accept the “you burn books, we kill people” law of the jungle. Disgustingly, the Times would inure us to this moral equivalence by rationalizing that “Afghans are fiercely protective of their Islamic faith.” Well then, I guess that makes it all right, huh?

Then there’s the second not-to-be-uttered truth: Defiling the Koran becomes an issue for Muslims only when it has been done by non-Muslims. Observe that the unintentional burning would not have occurred if these “fiercely protective of their Islamic faith” Afghans had not defiled the Korans in the first place. They were Muslim prisoners who annotated the “holy” pages with what a U.S. military official described as “extremist inscriptions” in covert messages sent back and forth, just as the jihadists held at Gitmo have been known to do (notwithstanding that Muslim prisoners get their Korans courtesy of the American taxpayers they construe the book to justify killing).

Do you know why you are supposed to stay mum about the intentional Muslim sacrilege but plead to be forgiven for the accidental American offense? Because you would otherwise have to observe that the Koran and other Islamic scriptures instruct Muslims that they are in a civilizational jihad against non-Muslims, and that it is therefore permissible for them to do whatever is necessary — including scrawl militant graffiti on their holy book — if it advances the cause. Abdul Sattar Khawasi — not a member of al-Qaeda but a member in good standing of the Afghan government for which our troops are inexplicably fighting and dying — put it this way: “Americans are invaders, and jihad against the Americans is an obligation.”

Because exploiting America’s hyper-sensitivity to things Islamic advances the jihad, the ostensible abuse of the Koran by using it for secret communiqués is to be overlooked. Actionable abuse occurs only when the book is touched by the bare hands of, or otherwise maltreated by, an infidel.

As our great Iraqi ally Ayatollah Ali Sistani teaches, touching a kafir (“one who does not believe in Allah and His Oneness”) is to be avoided, because Islamic scripture categorizes infidels as equivalent to “urine, feces, semen, dead bodies, blood, dogs, pigs, alcoholic liquors,” and “the sweat of an animal who persistently eats filth.” That is what influential clerics — not al-Qaeda but revered scholars of Islamic law — inculcate in rank-and-file Muslims.

And they are not making it up. Sistani came upon this view after decades of dedicated scriptural study. In fact, to take just one telling example (we could list many, many others), the “holy” Koran we non-Muslims are supposed to honor proclaims (in Sura 9:28), “Truly the pagans are unclean . . . so let them not . . . approach the sacred mosque.” It is because of this injunction from Allah that non-Muslims are barred — not by al-Qaeda but by the Saudi Arabian government — from entering Mecca and Medina. Kafirs are deemed unfit to set their infidel feet on the ground of these ancient cities. You don’t like that? Too bad — grin and bear it . . . and, while you’re at it, surge up a few thousand more American troops to improve life in Kandahar.

Understand this: Muslims are killing Muslims all the time. Sunnis attack Shiites, Shiites attack Sunnis. Ahmadi Muslims are attacked in sundry Islamic countries.

Often, these Muslim-on-Muslim atrocities involve not only murder but also the torching of the other sect’s homes and mosques — necessarily meaning Muslims are burning Korans, and with far more mens rea than the American personnel had in Afghanistan. None of these atrocities incite global Islamic rioting — it is just Muslim-on-Muslim violence, the numbing familiarity of which calls for no comment, except perhaps to mumble that it must have something to do with how “fiercely protective of their Islamic faith” Muslims are. (Actually, it has to do with Muslims’ deeming the perceived heresies of other Muslims to be apostasy, for which sharia prescribes the death penalty.)

Also understand this: In sharia societies, non-Muslim religious articles are confiscated and destroyed every single day as a matter of policy. In Saudi Arabia, where sharia is the law of the land, where Mecca and Medina are closed to non-Muslims, government guidelines prohibit Jews and Christians from bringing Bibles, crucifixes, Stars of David, and similar artifacts emblematic of their faith into the country. When that prohibition is violated, the offending items are seized and burned or otherwise destroyed. Moreover, though Saudis deny having an official policy that bans Jews from entering the country at all, reports are rampant of travelers’ being denied visas either because they are Jewish or because their passports bear stamps indicative of prior travel to Israel.

In spite of this shameful, conscious, systematic abuse of non-Muslims and their religious articles, King Abdullah has yet to send a letter of apology to Obama. All the presidential bowing in the world will not change this, not when Muslim supremacism is the irreducible core of mainstream Islam — not al-Qaeda Islam, mainstream Islam. And where is Mr. Karzai’s apology over the Afghan soldier who just killed two Americans? That is only the latest incident in a largely unreported epidemic: our “allies” turning their weapons on their Western trainers.

On second thought, who cares if Karzai apologizes? Our troops do not belong in Afghanistan. They have given more than enough, way more. So has our country.

If our government believes the Taliban and other factions are our enemies, allied with al-Qaeda to kill Americans, then we should unleash our military to destroy them. This should not be an endless counterinsurgency experiment that prioritizes the protection of Afghan civilians and the construction of Afghan civil society; it should be a war that our vast might enables us to win rapidly and decisively.

But our government has repeatedly professed that the Taliban are not our enemies. If that is true, we lack not only the will but the cause for waging war. We should leave — now. It is immoral to keep our young men and women there as sitting ducks in a place where the people hate Americans but we are not trying to vanquish them. We routed al-Qaeda years ago. We don’t need to defeat the Taliban or waste time negotiating with them, Karzai, the warlords, and the rest. Let them have their Korans and work it out for themselves with the compassion that has been such a Religion of Peace hallmark for the last 14 centuries.

That, however, cannot be the end of it. If, according to the president, we need to apologize to Muslims because we must accept that they have such an innate, extraordinary ardor for their religion that barbaric reactions to trivial slights are inevitable, then they should not be invited to enter a civilized country. At the very least, our immigration laws should exclude entry from Muslim-majority countries unless and until those countries expressly repeal repressive sharia laws (e.g., the death penalty for apostates) and adopt American standards of non-discrimination against, tolerance of, and protection for religious minorities.

If you really want to promote freedom in Islamic countries, an immigration policy based on civil-rights reciprocity would be a lot more effective, and a lot less expensive, than dispatching tens of thousands of troops to build sharia “democracies.” It would also protect Americans from people whose countries and cultures have not prepared them for the obligations of citizenship in a free society.

— Andrew C. McCarthy, a senior fellow at the National Review Institute, is the author, most recently, of The Grand Jihad: How Islam and the Left Sabotage America.
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Friday, February 24, 2012

Gas Prices, Obama and O’Reilly

It’s getting harder and harder to watch The Factor with Bill O’Reilly. When he’s not using his show to sell his books, he’s taken up constantly castigating oil companies for the rising price of gasoline, and shouting down anyone who tries to explain the facts of the energy situation.

This is a complicated subject. In no other industry is the complex mathematical process known as linear programming used more in management decision-making.

But, two basic facts stand out: 1. Obama’s environmental policies have curtailed exploration and drilling here, and 2. Obama’s spending policies have so cheapened the international value of the American dollar that it buys less oil.

Gasoline Prices and Dollar Prices

By Joseph Svetlic February 24, 2012 American Thinker (excerpt)

“It's not that gasoline is more expensive; it's just that your dollars are worth less. But neither the media nor the political establishment wants you to realize the real reason Americans are experiencing pain at the pump.

Surging gasoline prices are back in the news, and President Obama shows his concern for Americans by doing what he does best. He gave a speech. Happy now?

Of course the grumpy old conservative naysayers place blame on the Obama administration for the surging prices! They point to the administration's denial of the Keystone pipeline and additional supply of Canadian oil sands as illustrative of an anti-energy policy that tries to dictate against the free market that we are all to drive flammable 40-mile/charge Chevy Volts. They point to Obama's own Energy Secretary Stephen Chu, who believes that "[s]omehow we have to figure out how to boost the price of gasoline to the levels in Europe."

They point out that President Obama doesn't in fact have a problem with high gas prices; he just prefers a "gradual adjustment." (Is four years long enough?) They point to the reaction of Speaker Pelosi in May 2007 when the average national gas price was only $3.05/gallon, calling it the Bush administration's "failure" and accusing the Bush administration of years of policies favoring "Big Oil." They point to the price of gasoline on January 20, 2009 being a bargain at $1.83/gallon, now having basically doubled and headed much higher. Effective talking points all….

The dollars that you have in your pocket are pieces of paper that hold value only because they are "backed by a gun." The "gun" being the United States Government and the Federal Reserve. The dollars that you have in your pocket are "fiat money" (the term "fiat" is Latin for "let it be done"), not backed by anything of actual value since August 15, 1971. Cash is just paper. Call them Bernanke Bucks.

What "stores" value, if not the "let it be done" Bernanke Bucks that are "backed by a gun"? Precious metals, of course. Traditionally hedges against inflation because they are always worth something. They are valuable by themselves, without the gun.

They are real, hard money, as opposed to fiat currency. They possess qualities that have been valued by humans ever since we started pulling them from the ground long ago. Therefore, there will always be a market for them. They have "objective value." So let's talk about the price of gas compared to something of actual objective value: precious metals.

If you pulled up to a 7-11 station on January 20, 2009 and all you had was silver American Eagles in your pocket, how many ounces of silver would you have paid per gallon? On that very day, silver was trading at around $11.47 per ounce. The average price of a gallon of gasoline was around $1.83 per gallon....

So to purchase 10 gallons of gas for your Toyota Prius (alas, there was no such thing as a Chevy Volt at the time) would've cost you 1.6 ounces of silver.

Fast-forward to today. If you pulled up to a 7-11 station today in your flammable Chevy Volt, things would be different. As of this writing, silver is trading at $34.190 per ounce. As of this writing, the average price gasoline is $3.545 per gallon....

A 10-gallon fill-up for your Chevy Volt today would cost you an ounce of silver, or a single silver American Eagle coin. That's down from 1.6 ounces of silver for the same 10-gallon fill-up in January 2009....

Alternatively, the Obamedia could credibly claim that gas prices are even a little cheaper compared to gold. Working out the same formula with gold, you would fork over 0.002133 ounces of gold (at $858/ounce) in January 2009, while you would pay 0.002018 ounces of gold (at $1756.40) today. See?! Gas is even 5.4% cheaper today when compared to gold. High gas prices? What are you talking about, rubes?

In all seriousness, what do these numbers mean for what you are paying at the pump?

Here we have the main point of this piece, so let's go throat-clearing in red:

It is not that the price of gas is more expensive; it is that your dollars are worth less .

This is evident to anyone with a modem, a calculator, and a basic knowledge of economics. Even more obvious to anyone who has read Rand. The "destroyers" described by d'Anconia are destroying the fiat dollar. They are the Federal Reserve led by Bernanke, who has enabled the Obama administration's spending spree to the tune of over $5 trillion in debt for a single term through artificially low interest rates and "quantitative easing" (i.e., monetizing the debt). The same person, Bernanke, has testified under oath that the Federal Reserve "will not monetize the debt." Yet it is obvious that that is exactly what has happened. It ought not surprise anyone with a knowledge of history that the present Obama-Bernanke fiscal-monetary course is exactly opposite the policies of President Reagan and Federal Reserve Chairman Volcker in the early 1980s, with predictably very different results. So we now have inflation coupled with low economic growth, or stagflation.

Welcome back, Carter. ” American Thinker

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