The Honorable Jeff Miller
348 S.W. Miracle Strip Parkway
Fort Walton Beach, Florida 32548
I am sure you are aware that the American economy is in trouble.
It has become sick from decades of government intervention. It is ill from the misguided idea that the government can make an economy run better than those who own, work and invest in it.
This mistake is about to be done again. You will be asked to use government funds to buy $700 Billion in bad investments made by Wall Street financiers. You will be asked to make the American people buy financial paper that is essentially worthless. Along with other related debts recently assumed by the government, you will be asked to force a total of $18,900 in debt on each and every man, woman and child in America, at interest, forever, for something they had nothing to do with. You will be asked to use the threat of imprisonment to enforce this debt.
I am going to ask you, at the very least, to do nothing about this bill. My very best hope is that you will take the lead to roll back government subsidies and privileges across the board. Government intervention brought us to this point, and more government intervention will only make the problem worse. Our dysfunctional economy is the result of at least a century of special favors given to those who have influence in Washington and the use of an unsound money system. It is time that this stop.
The role of government is not to own companies, nor to grant favors, but to protect individual rights.
Our government owning companies makes a mockery of the Constitution and its rights and protections. Government makes the laws and over time will favor itself. Government has access to the Federal Reserve Bank’s money printing presses, and hence unlimited funds. Government uses these powers every time to the disadvantage of every citizen that competes with them. It is inherently unjust. America deserves better from its representatives.
Since March of this year American citizens have endured the privately owned but government supported Federal Reserve Bank acting illegally and forcing the purchase of a private bank (Bear Stearns) by another private bank ( JP Morgan) using the Federal reserve’s unique privilege to print money to fund the deal. Even ex Fed Chairman Paul Volker euphemistically called this “stretching the legal envelope.”
This summer the American people received a $160 Billion in a “stimulus package” from the Congress. This apparently “free” package was funded by the private Federal Reserve Bank printing it and loaning it to the Government at interest.
In the past six months the Federal Reserve Bank has announced $200 Billion in privileged money sales to banks to pump more cash into circulation. It may save banks that have made bad decisions, but it also fuels inflation. Retirement accounts, pensions, fixed investments, and future payments from Social Security and Medicare will all become worth less as a result.
As you well know, a few weeks ago the United States became as socialist as any cold war adversary by nationalizing the mortgage industry to the cost of $5 Trillion dollars. Fannie Mae and Freddie Mac became the massive liabilities they are because they had an implied government backing to their bonds. They used that to undercut competition and grow far larger than they should have in a truly free market. Both backing their bonds and nationalizing these companies was a betrayal of American concepts of liberty and property.
This past week witnessed a complete disregard for any pretense of legality when the Federal Reserve and the Treasury forced a private insurance company, AIG, to sell an 80% controlling interest in their company to the Treasury of the United States for $85 billion in instantly created dollars. It seems the government can take whatever it wants now, and pay for it with money created in the blink of an eye. What if a majority in Congress decides it wants what you have, Congressman?
A moral hazard has now sprung up where every company in trouble seeks a bailout. There is now talk of insuring all money market accounts to the tune of $50 billion, and bailing out GM and Ford motor companies for $25 billion each.
Over the years economic control has been centered in Washington, and now the debts accumulated can fatally flaw the US dollar. The resulting inflation will destroy the average American. It will reduce our ability to compete in the world economically and politically. It threatens to destroy the fabric of our society.
Make no mistake. Our government is changing for the worse its relationship with the American people, and the role of the market, contracts, private property and the Constitution in our daily lives.
Don’t kill that which made us great as a nation: individual rights, free markets and limited government.
Peter J. Blome, Secretary
The Libertarian Party of Okaloosa County