Posts Tagged ‘tea party’

Tea Parties or Bank Runs?

April 19, 2009

Last week, there were hundreds of new-age “Tea Parties” all across the country on Tax Day, April 15th.  There is currently a lot of frustration out there, which has led to tremendous momentum for financial reform in our country.  Thousand of people attended the protests.  Some people wanted to protest the role of the Federal Reserve, others were mad about our tax dollars being spent to bail out failing companies.  Others wanted to reduce the size of government and federal spending.

The problem with the Tea Parties, is that the media and Democrats have miscontrued the meaning behind them.  They are saying they are just politcal stunts, organized by Republicans and Fox News, who are against anything President Obama does.  Even though there were both Democrats and Republicans at the Tea Parties, the protests have been marginalized by the mainstream media.  All of the effort that people went through to organize these rallies is essentially being wasted because those in Washington are not taking the protests seriously.

There is another method of protest though, that the government, big corporations, and Wall Street cannot stop.  We can all take our money out of big banks that are getting bailouts and put it in a local, community bank.  Most of these smaller, local banks have been able to withstand the downturn because they were prudent with the money we deposited and did not get involved in all sorts of derivatives, trying to make a quick buck.

If we are so upset about the government using our money to bail out banks, why not show the government that we have no confidence in these institutions?  As a business, banks depend on us, the consumer to lend them (deposit) our money so they can make loans.  If we all pulled our money out of the big, failing banks, they would be forced out of business.  We need to literally, put our money where our mouths are.

Local banks are at a disadvantage because they do not have the resources to devote to technology and security that the big, national banks.  But if we all deposited our money with them, their business would naturally grow and they would be able to make banking as convenient and easy as a Wells Fargo or Bank of America.

The same can be said for our investments.  If we are upset that JP Morgan and other Wall Street investment firms are getting our tax dollars, move your account to another broker.  We can’t protest with our words and then let our actions directly contradict our views.

A lot of talking heads have made fun of people for withdrawing their money from banks so they can have cash (as if this is such a bad thing in the first place).  In fact, MSNBC’s Rachel Maddow called Senator Richard Burr of North Carolina “Bank Run Burr” and Keith Olbermann named him the “Worst Person in the World” because he told his wife to withdraw $500 from an ATM.  They said it showed Republicans do not have a plan and that it was unpatriotic to pull his money out of the bank.  Burr said that he does not have any cash at home, and after a briefing that basically told him that banks would be out of cash, he panicked adn told his wife to take out the money.  Like $500 in his account is going to make a difference, anyway.

My plan is not to just take your money out and put it under your mattress in fear of failure.  It is a protest against the big, national banks that are on life support, sucking up billions of our tax dollars a day.  We should embrace our local banks, that know the local economy and community.  They will make prudent decisions and not take unnecessary risks trying to please Wall Street and investors.  Instead of making clever signs and protesting with our words on Tax Day, we should give the banks a vote of “no confidence.”  Only with our actions and our money will we show the government that we do not support the bailouts, or the banks and institutions they are propping up.

The Problem with Tea Parties

April 13, 2009

There is going to be a Tea Party in Santa Ana, which is close to my hometown of Huntington Beach.  There is a series of speakers, one of which is Dana Rohrbacher, who is my Congressman.  He’s been in the House since 1988.

My big problem with this is that he was in Congress during the Bush years, when the Federal Government grew to the largest it’s ever been.  Now, all of a sudden he’s outraged?  Where was he speaking out against the budgets and taxes under the Bush Administration?

There is a political theory that when a party is out of power, they go back to their core principles, only to abandon those principles and grow the government when they go back into power.  How true is this of the Republican party?  They pushed for the biggest growth in government spending in the history of our country when they were the majority, but now that they are in the minority, they are all about fiscal responsibility again.  We need to see this for the fraud it is and not fall for this trap again.

Also, many of these figures act like they support limited government, but all they want to do is trim a program here or there and shift the tax brackets around.  We need more than these little, inconsequential tweaks right now.  We need real change and a political revolution.

We need to start to question the need for central economic planning, led by the Federal Reserve and the monopoly it has on our money supply.  We need to question our fiat currency, and if local currencies backed by gold might be a better way to manage our money.  The first step would be to repeal legal tender laws and to eliminate capital gains taxes on gold money.  Ron Paul has laid out this plan to open up our money supply to competition of gold backed money and fiat money.  This needs to be discussed at any Tea party.

We also need to not just be mad at our money being used for bailouts, but we need to be mad that the government, as Rothbard put it, “legally plunder” from us.  Why is the government entitled to a third of our hard earned money?  We should not just be mad about our money going to bail out Wall Street, but we need to be mad that it is going to build bombs, fight foreign wars, build foreign bridges and roads, and support our welfare state.  In order to truly reform our government, we need to take as much out of the hands of Washington as possible.  Our Constitution lays out the framework for a limited central government and strong local and state power.  We have moved so far from this vision that we have a tyrannical government that has overriding rule over all.  This is what we should be revolting about!

The anger and frustration over the bailouts is a good way to start to build energy towards a revolution, but we can’t keep our scope so limited.  Every one of these Tea Parties need to go beyond the bailouts and taxes and to the Constitution and the vision of our Founding Fathers.  They should have speakers who believe in eliminating the Federal Reserve, cutting or ending the income tax, ending our empire, and drastically reducing the size of our government.  We need to move beyond the symptom, which is the recession we’re in and the bailouts, and really fix our country.

The Taxpayer Revolt

January 27, 2009

This year is going to be tough on everyone.  To make matters worse, this year, the state of California is going to be issuing IOUs instead of refund checks because they are broke. I rely on the money back from the state to offset the money I owe to the IRS.  You think the IRS will take my California IOU?

I know I shouldn’t be loaning the government money all year and expect a refund.  However, my wife works as a 1099 consultant, and normally, I end up owing about $1,000 to the IRS, so it all evens out.  A friend of mine has an accountant and does the same thing, so I don’t think I’m too far off.

So now, instead of a net zero situation or owing $1,000, I’m going to have to put almost $3,000 out of my pocket to the Federal Government, and hope that my IOU from the state gets fulfilled.  That’s exactly the kind of extra burden I need this year.  Thanks a lot, Arnold.

How many people across the country are in the same situation?  How many other people are strapped for cash and now will have to go further into debt to pay off these unexpected taxes?

An even bigger problem with the whole system is that my taxes are going to fund all these bailouts.  Why should I have to be burdened with thousands of dollars of taxes, when it is going to something I do not believe in?  It’s not just me either.  The majority of the population is against the bailouts, yet we all keep having to pay into the system.

At what point are we going to have enough?  It’s one thing to pay taxes that go to your local school or to a state project where you will see the direct benefit of the taxes.  It’s another when your tax dollars were donated to big banks and no one has any idea of where it went.

A main reason of the American Revolution was “no taxation without representation.”  Could this be any more true in the current environment?  The American Public is saying one thing, but the government is acting on its own.  At what point do we say that enough is enough?

It won’t take a whole lot more government intervention to make the current situation a lot worse.  At what point will the American Taxpayer start to revolt?  When will be our Boston Tea Party?  At this point in time, the last thing we need is the government wasting our tax dollars.  They would be much better served staying in our pockets so we can pay off debts or buy more things to support our economy.