“Truth persists and illuminates, even if there is no one to utter it.“

Government is not the solution; rather, it is causing the problems.  The below slides (view at Scribd) highlight the economic situation, updated from August and May presentation.  I’ve written about the solutions to the unemployment problem, the deficit, Social Security, and the high costs of health care which are linked below.  Thanks to Lee Trembley for providing some of the research and slides.

A giant land mine is about to go off in the United States, and those responsible walk the halls of our nation’s highest political offices and the Federal Reserve.  I know how to cushion the people from most of the damage.  I have the courage to explain reality to the Republocrats, that is why I am running for Congress.  And it is certainly not all gloom and doom – there is a very bright future for America if we just return to what made our country great – individual liberties, sound money, accountability and the rule of law.

I humbly ask for your vote on November 2nd to stop the endless debt and perpetual wars.

For Liberty and the Constitution,

Jake Towne

Will the real national debt please stand up? The national debt published in the papers and online – which is closely tied to the USTreasury market is now over $13.6 trillion.  Current government plans include massive deficit spending through 2013, and the government’s optimistic projections of a return to “normalcy” after 2013 are not anchored in reality.  Source of budget data.

However, the true national debt is hidden by the cash-based accounting method government uses.  The true national debt is over $120 trillion when GAAP (Generally Acceptable Accounting Principles) are used to identify future taxation sources and future debts such as Social Security and Medicare.  That’s around $400,000 for every man, woman, and child in the country.  Massive reductions in spending and taxation are necessary if America is to regain its financial sovereignty, my proposals are outlined here and in “Guns or Health Care?“

As seen in the official USTreasury report on page 178/254, the total unfunded liabilities for Medicare and Social Security is a jaw-dropping $107 trillion over the future of these programs.  While I predict the Democrats may bear the brunt of the blame for the collapse of Medicare, one must not forget that it was the Republican’s massive expansion of Part D’s prescription drug plan under Bush that severely worsened Medicare’s fiscal situation.  While the situation in Medicare will continue to worsen under the new healthcare legislation – some of my proposals to maintain Social Security are outlined in “Social Security or Insecurity?“

“He has erected a multitude of New Offices, and sent hither swarms of Officers to harass our People, and eat out their substance.” – Declaration of Independence, 1776

The quote above from the Declaration is far more true in 2010 than it was in 1776.   Not counting the millions of government contractors, the government’s Republocrat-controlled work force is currently 22.1 million bureaucrats.  This is America’s largest single job sector, and remember, the taxpayer bears the full cost to keep these bureaucrats employed.  Like something out of an Orwell novel, the Washington Post estimates 854,000 bureaucrats are employed to spy on and keep tabs on the rest of us and the world.  Lisa Benson’s cartoon says it all.

Keep in mind bureaucrats make nearly twice the average wage of the private sector, and have better benefits.  My solutions?  First, lead by example.  I will refuse the elite congressional pension and healthcare plans when elected, and keep just the median income for a salary and donate the rest of the $116,000 to local non-profit hospitals.  Second, I favor either a temporary income tax holiday, or simply halting the income tax on the median income, which will abolish the income tax for about 50% of the population and only result in a 3% drop in the taxes collected by the income tax.

Next, notice about 1 in 7 Americans is on food stamps, or 41.8 million people.  USDA link here.  Note the strong rise in number of SNAP food stamp recipients during the past year.  One would expect to see this number dropping or even flat-lining – along with employment rising – if a recovery were underway.  The annual projected cost is now $67 billion, paid for by the ever-diminishing work force.

No jobs, no recovery. BLS link here.  Note that while the “newspaper” unemployment rate is still 9-10%, the U-6 figure – which more accurately describes total unemployment is 16% – a depression statistic.  An estimated 1.6 million will file for bankruptcy this year.   I’ve described the common sense solutions to end the rampant unemployment created by the government almost overnight in the campaign’s Jobs plank.

Since the BLS drops off workers from its U-6 figure, the real unemployment rate is likely greater than 17%.  Shadowstats estimates the rate at about 22%.

The number of new housing starts has reached a 5-decade low, while about 25% of all residential mortgages are underwater.  Note that in prior recession cycles, a quick rebound occurred while this depression looks more like a dead cat bounce.  This is because….

The Federal Reserve bailed out the bankers and Freddie Mac and Fannie Mae.  The above is built from the Federal Reserve H.4.1 data here.  The black line is the total (reported) balance sheet of the FED, which has more than doubled since the time of the Banker Bailout.  While the original TARP bailout (not shown) accounted for much of the initial sharp increase, most of the debt has been replaced by $1.12 trillion of mortgage-backed securities (the yellow line).

This graph shows the nationalization and propping of America’s entire residential housing industry. The yellow and green lines show the cumulative totals of USTreasury and USAgency debt held by the FED.  While the Federal Reserve has admitted it will take losses on the MBS debt, the question remains as to how much and when.

The purchasing power of the dollar has lost well over 94% since FDR took America off the classical gold standard in 1933 through monetary inflation.  The monetary inflation is caused by the Federal Reserve.  They debase the dollar by creating more and more irredeemable paper dollars, which is of increasing concern since China has stopped buying Treasury debt.  A major reason why healthcare now appears so expensive is this money-printing, as I highlighted in my article “Health Care Solutions.”  Graph provided by Bloomberg Financial, 2009.

The relentless rise in the paper gold price from 2000-2010 is not due to any special circumstance with gold – nor is it a bubble yet – it is solely due to the money-printing and credit expansions of the world’s central banks.  Gold is insurance against the failure of unbacked paper currencies, and this is why all central banks – and more and more individuals worldwide – hold gold reserves.  I’ve written extensively on the Federal Reserve and how sound money effects jobs here.

Now, where do the government and bankers spend a good portion of this currency they created from thin air?  In a word, WAR.  The United States spends more on military expenditures than the rest of the world combined, and the military-industrial-congressional complex that Eisenhower warned about now serves as the world’s largest arms dealers.  Check out this movie clip from “The International” on debt and control. (Graph source and data here)  There are far better solutions to capturing the criminals who attacked America on 9/11 which I write about in my Afghanistan War plank.

To cap off the situation with the dollar, the latest quarterly banking profile from the FDIC state the deposit insurance fund (DIF) is bankrupt.  While consumers at failed banks still receive “insured” funds, the losses are presumably filled in with dollars from the FED, as reported last here.  The current FDIC “watch list” rose to 775 banks, or almost 10% of all FDIC-insured banks in the US per p. 3/26.

CAUTION: LAND MINES

In summary, do not expect a recovery until the Republocrat ruling elite are removed from power or are forced to address the problems the rest of society faces.  As the extravagant $5 million Bill Clinton wedding under heavy security – possibly paid for by the taxpayer – and $7 million John Kerry yacht (and avoidance of >$500,000 in taxes) demonstrate, the elite are not exactly suffering.

The “Great Recession” still has a firm grip on the economy, and the situation continues to deteriorate, now matter what cherry-picked news is shared in the mainstream media.  Sadly, the truth is the situation in America will not improve until the government removes its jackboots from the throat of the economy.  Ceasing all special privileges to special groups would help as well.

That Freedom Shall Not Perish,

TOWNE FOR CONGRESS

Article Archives

As those who have been following the campaign are aware, my independent candidacy was recently endorsed by a major local newspaper, the Express Times, and I destroyed my opponents in the debates, the last one you can watch here or 8 pm this evening on Channel 69 WFMZ-TV.  Momentum is all on the campaign’s side, and anyone in the area is encouraged to spread this issues flyer.

I’d like to conclude with a quote on youth by Randolph Bourne, which explains why the younger generation has to step forward to converse with the older generations.

“Youth is the incarnation of reason pitted against the rigidity of tradition; youth puts the remorseless questions to everything that is old and established – Why? What is this thing good for? And when it gets the mumbled, evasive answers of…… the defenders it applies its own fresh, clean spirit of reason to institutions, customs and ideas and finding them stupid, inane or poisonous, turns instinctively to overthrow them and build in their place the things with which its visions teem. . . .

“Youth is the leaven that keeps all these questioning, testing attitudes fermenting in the world. If it were not for this troublesome activity of youth, with its hatred of sophisms and glosses, its insistence on things as they are, society would die from sheer decay. It is the policy of the older generation as it gets adjusted to the world to hide away the unpleasant things where it can, or preserve a conspiracy of silence and an elaborate pretense that they do not exist. But meanwhile the sores go on festering just the same. Youth is the drastic antiseptic. . . . It drags skeletons from closets and insists that they be explained. No wonder the older generation fears and distrusts the younger. Youth is the avenging Nemesis on its trail. . . .

“Our elders are always optimistic in their views of the present, pessimistic in their views of the future; youth is pessimistic toward the present and gloriously hopeful for the future. And it is this hope which is the lever of progress – one might say, the only lever of progress. . . .

“The secret of life is then that this fine youthful spirit shall never be lost. Out of the turbulence of youth should come this fine precipitate – a sane, strong, aggressive spirit of daring and doing. It must be a flexible, growing spirit, with a hospitality to new ideas and a keen insight into experience. To keep one’s reactions warm and true is to have found the secret of perpetual youth, and perpetual youth is salvation.”

Lastly, a grassroots supporter sent this in to commemorate the campaign’s upcoming victory on November 2nd.  I have a dream as well, thanks to Arianne Elinich for the use of her song.

Jake Towne for US Congress PA-15 – Economy in Pictures (OCT 2010)

Upcoming Events

• Rally to Restore Sanity, 12 PM- 4 PM on Saturday, October 30 at Porter’s Pub, 700 Northampton St., Easton, PA 18036.  MAP.  The Comedy Central march in DC will be televised from 12-3 pm and Jake will be taking questions from 3-4 pm.  This is not a campaign sponsored event.
• Slatington-Walnutport Halloween Parade: 5:30 p.m. Oct. 30. Help hand out flyers before the parade begins!!  Contact the campaign at 610-392-8156 or towneforcongress@gmail.com for meetup details.
• Replay of “Debate at the State”, 8 PM on Saturday, October 30 on WFMZ Channel 69.

• Easton-Phillipsburg Halloween Parade: 12:30 p.m. Oct. 31. Help hand out flyers before the parade begins!!  Contact the campaign at 610-392-8156 or towneforcongress@gmail.com for meetup details.
• Allentown Halloween Parade: 1 p.m. Oct. 31. Help hand out flyers before the parade begins!!  Contact the campaign at 610-392-8156 or towneforcongress@gmail.com for meetup details.
• Bethlehem Halloween Parade: 1 p.m. Oct. 31. Help hand out flyers before the parade begins!!  Contact the campaign at 610-392-8156 or towneforcongress@gmail.com for meetup details.

• NOVEMBER 2nd ELECTION DAY!! Volunteers are needed to hand out literature outside of local polling stations, please volunteer here and share your name, phone #, city, and if you live in the district, your current polling location.
  • Post-Election Victory Party for all volunteers and supporters at 8 PM on Election Day at Pies On Pizzeria at Front and Pine Streets, Catasauqua!!!!

I am very honored and humbled to have received the endorsement of the Express-Times, a major local newspaper in the 15th congressional district, this morning.  Under a headline, “Mr. Towne Should Go to Washington” the Express chose to endorse my candidacy rather than Republocrats Mr. Dent and Mr. Callahan after my clear victory at the Debate at the State (footage here, photo courtesy Sue Beyer of the Express-Times).

I have also been very humbled to see strong support from the entire community, and I believe the race in the voting booth on November 2nd is going to be very close indeed and the skewed polling by the Morning Call will be proven to be highly inaccurate.  (The campaign has polled at 8%, 5%, and 3% so we are heading in the right direction. Unlike a two-way race, likely only 35-37% is necessary to win, and all of the skewed polling took place BEFORE the WFMZ debate and Express-Times debates.  Unlike the Express-Times, the Morning Call banned me from their debate.)

Volunteers are still needed to help out at the polls.  Polling materials can be picked up tonight at the American Sandwich Company in Coopersburg from 5-8 pm, or at the Rally to Restore Sanity at Easton’s Porter’s Pub on Saturday afternoon, campaign event details here.  An issues-oriented flyer is available to download or share from here.

From the Express-Times:

“Jake Towne started his congressional campaign more than a year ago on a shoestring budget and an idea — that a straightforward, third-party message could resonate in the Lehigh Valley, especially if the Republican and Democrat got into a divisive fight over which major-party candidate should represent the politically diverse 15th District.

We’re disappointed to see Towne’s independent candidacy hasn’t gained a lot of traction. He’s still in single digits in the polls.

Yet Towne is the best choice in this race, and we enthusiastically endorse his candidacy. He pledges to set a high ethical standard. He disdains the garbage passing as dialogue on the airwaves.

And he’s for real.

Republican incumbent Charlie Dent has done a credible job, but we need a break from mainstream Republican politics that caused the nation to rebel and elect Barack Obama in 2008. Democrat John Callahan has put together a defensible record as mayor of Bethlehem, but his approach in this race is less than inspiring.

We believe both men are capable of representing the Lehigh Valley, but we also feel we’re being played for suckers in this million-dollar investment in attack ads — you know, the ones that call someone a “disaster” or tax-raise worshipper or a George Bush clone.

We’re tired of the same old crap.

Finally, when The Express-Times’ editorial board had a chance to prod and observe the candidates at Monday’s Debate at the State Theatre — and after examining their records — we concluded, simply, that Towne is more than just a viable alternative. His platform is somewhat libertarian, ardently constitutional, fiscally conservative, socially live-and-let-live, and radically pointed in areas in which we wanted to hear real answers — such as the need to end nation-building efforts in Afghanistan. He is a member of the local Tea Party group, but is not a Tea Party candidate.

Like most candidates, he puts job creation and deficit-cutting at the top of his list. Unlike other members of Congress, he would be free to pursue and vote on those issues without having to check his campaign-supporter list. His assessment of the “two-headed, one-party system” we operate under rings true.

On some issues, he’s closer to Republicans, such as extending the Bush tax cuts, opposing the health care bill, opposing restrictions on gun ownership, redirecting the military to defend our borders. On others, he’s closer to Democrats, such as supporting a woman’s right to have an abortion, allowing gay marriage, eliminating income taxes for households making under $41,000, and eliminating the “Halliburton Loophole” so states such as Pennsylvania can regulate natural gas drilling via the Safe Water Drinking Act.

On other issues — phasing out the “War on Drugs,” questioning the loss of civil liberties under the Patriot Act, pledging to serve two terms, refusing to enlist in federal health care and pension plans — he’s distancing himself from the status quo and setting an example of independence that many people would like to see in their elected representatives.

As a third-party candidate with libertarian leanings, coming out of nowhere, accepting no big political-action-committee contributions, Towne faces a public as wary of newcomers as it is weary of the major party candidates. And that’s a fair suspicion. Towne, who grew up and lives in the Nazareth area, has worked as a chemical engineer in this country and China, and is involved in his community. He’s articulate and, when given the chance, has injected energy and dimension into the 15th District debate.

Callahan and Dent aren’t spending much time or money worrying about Towne. Based on his well-run campaign and his embodiment of qualities people say they want in a congressman, maybe they should be.

We think voters should send a strong message about change — including independence from special interests and typical Washington gamesmanship — by electing a candidate with a steely populist streak.

We think Jake Towne can do the job.”

Upcoming events are listed below, and anyone wishing to make a donation to cover more TV advertisements can make it below.

• Northampton Community College Forum, October 28, 11 AM till perhaps 12:30 or 1 PM.  Open to public, Q&A. Location Changed!! Location is in the Student Life Zone on the 2nd floor of the College Center.  3835 Green Pond Rd Bethlehem, PA 18020.  Campus Map.
• Live interview on WDIY, 6-7 PM on Thursday, October 28.  Listen locally at 88.1 FM or here online.
• Rally and Poll Materials Pickup, 5PM-8:30 PM on Thursday, October 28 at American Sandwich Company at 7001 Route 309, Fairmont Village Shopping Center, Coopersburg, PA 18036.  MAP.  A volunteer will be there to hand out materials from 5 PM on, Jake will arrive around 7:30 to talk for a bit.

• Rally to Restore Sanity, 12 PM- 4 PM on Saturday, October 30 at Porter’s Pub, 700 Northampton St., Easton, PA 18036.  MAP.  The Comedy Central march in DC will be televised from 12-3 pm and Jake will be taking questions from 3-4 pm.  This is not a campaign sponsored event.
• Slatington-Walnutport Halloween Parade: 5:30 p.m. Oct. 30. Help hand out flyers before the parade begins!!  Contact the campaign at 610-392-8156 or towneforcongress@gmail.com for meetup details.
• Replay of “Debate at the State”, 8 PM on Saturday, October 30 on WFMZ Channel 69.

• Easton-Phillipsburg Halloween Parade: 12:30 p.m. Oct. 31. Help hand out flyers before the parade begins!!  Contact the campaign at 610-392-8156 or towneforcongress@gmail.com for meetup details.
• Allentown Halloween Parade: 1 p.m. Oct. 31. Help hand out flyers before the parade begins!!  Contact the campaign at 610-392-8156 or towneforcongress@gmail.com for meetup details.
• Bethlehem Halloween Parade: 1 p.m. Oct. 31. Help hand out flyers before the parade begins!!  Contact the campaign at 610-392-8156 or towneforcongress@gmail.com for meetup details.

• NOVEMBER 2nd ELECTION DAY!! Volunteers are needed to hand out literature outside of local polling stations, please volunteer here and share your name, phone #, city, and if you live in the district, your current polling location.
  • Post-Election Victory Party for all volunteers and supporters at 8 PM on Election Day at Pies On Pizzeria at Front and Pine Streets, Catasauqua!!!!

Jake Towne Issues Flyer Oct 2010

Independent congressional candidate Jake Towne claimed a clear victory at the “Debate at the State” – held and co-sponsored by Easton’s historic and beautiful State Theatre.  The Express Times was the main sponsor, and is commended by the campaign for its commitment to hear all candidates.

When Towne challenged Mr. Dent on the constitutionality of his support of the War on Terror and the PATRIOT Act’s civil liberty violations, the incumbent had no coherent response and the 20-year career politician pitifully resorted to accusing Towne as believing in 9/11 conspiracies, a complete and utter lie.  Towne also challenged Mr. Callahan on HIS unflagging support of the unconstitutional War on Terror and endless nation-building.

Towne’s closing statement was met with by far the most applause, which is quite significant since most of the crowd were not previous supporters and were converted by the debate.  While the Republocrat candidates were busy with negative mudslinging, Towne focused on offering solutions to the problems the country faces.

The debate will air on Saturday, October 30th on WFMZ-TV, Channel 69.   Watch footage from the Express Times Debate below, and also from the previous WFMZ debate here.  (Photo courtesy Sue Beyer/Express Times)

Closing statement from Jake Towne (below left)  Towne questioning the constitutionality of Mr. Dent’s support of the undeclared wars and PATRIOT Act. (below right)

Towne asking Mr. Callahan to pledge to take a paycut and give up the congressional perks.  When Mr. Callahan first attempted to dodge the question, snickering from the crowd led him to address the question… and say he would think it over.  (below left)  Towne asking Mr. Callahan why he supports the endless and unconstitutional War on Terror and nation-building.  (below right)

To Towne’s delight, Mr. Callahan asked him a question on the federal department of education.  (Below left)  Towne outlines his stance to repeal “Don’t Ask, Don’t Tell” and highlights the contrast on bailouts.  (Below right)

Jake takes a moment to state his stance on Cap and Trade and highlighted hydraulic fracturing as the key environmental risk to the district.  Read his solutions with hydraulic fracturing here.  (Below left)  All candidates share their stances on jobs.  See Jake’s plank here.  (Below right)

All candidates are asked a question about troop withdrawal.  Only Towne answers the question while Mr. Dent and Mr. Callahan mudsling at the expense of our veterans.  Only Towne has published a veterans plank.  (Below left)  Towne answers a question on healthcare. (Below right)

Lastly, all candidates are asked a question about negative campaigning.  True to form, Mr. Callahan and Mr. Dent answer by mudslinging, while Jake responds by saying, “I think you see so much negative campaigning because they have no new ideas.”  Jake outlines his “Our Open Office” idea.  (video)

Jake will have an online chat at noon today with the Morning Call.  (It’s over, view the transcript here.)  He will also be talking to the East Penn Taxpayer’s Association tonight at 7:30 pm in Emmaus, details below.

Independent congressional candidate Jake Towne has had a tough time locating opponents Mr. Charlie Dent and Mr. John Callahan at debates. Unfortunately, so has the general public. Out of 11 debates, Towne was banned from two (2), was the only candidate to attend another two (2) debates, and another four (4) debates have been canceled due to lack of a response from both career politicians.

Towne stated that after destroying both Establishment candidates in the WFMZ debate last Tuesday and receiving a flood of support, he would be highly surprised if either campaign manager would even allow their candidate to debate, and hopes they still show up to the Express-Times “Debate at the State” on Monday.

Towne for Congress stresses that all public officials are not MASTERS, but SERVANTS. To not accept public scrutiny during candidacy simply highlights how unanswerable, inaccessible, and unresponsive these Establishment career politicians plan to be in office. This is not the type of representation and behavior voters should accept, and underscores Towne’s point that the “two-headed, one-party” system has betrayed and failed the people.

When elected, Jake Towne’s novel-yet-simple form of accountable and transparent government, “Our Open Office,” will give constituents new levels of transparency and accountability never before seen in American government.

(Towne attended the WFMZ and College Hill Neighborhood Association/League of Women Voters debates with Mr. Callahan and Mr. Dent. All candidates will be in the October 25^th Express Times debate. Towne was banned from the PBS/Morning Call and JFLV debates. Mr. Callahan and Mr. Dent did not show up to the Cedar Crest and LV Tea Party debates, and due to lack of response from both the Pen Argyl, Northampton Community College, Nazareth Chamber of Commerce, and DeSales University debates were canceled. Towne accepted invites to all events.)

Upcoming Events -

• East Penn Taxpayer’s Association Candidates Night on October 19th, 7:30 PM.  Open to the public, will speak for a few minutes and answer questions.  Emmaus Fire Co. #1 on 610 Broad Street, Emmaus, PA.  MAP.

• Catasauqua/North Catasauqua Halloween Parade: Oct. 20 at 6 PM.  Help hand out flyers before the parade begins!!  Contact the campaign at 610-392-8156 or towneforcongress@gmail.com for meetup details.
• Talk to Young Americans for Liberty at Moravian College.  Oct 21st at 11:45 AM.  Location is the PPHAC in Room 112.  Building #39 on this campus map.

• Northampton Halloween Parade: Oct. 21 at 6 PM.  Help hand out flyers before the parade begins!!  Contact the campaign at 610-392-8156 or towneforcongress@gmail.com for meetup details.

• Macungie Halloween Parade: 5 p.m. Oct. 23.  Help hand out flyers before the parade begins!!  Contact the campaign at 610-392-8156 or towneforcongress@gmail.com for meetup details.

• Hellertown-Saucon Valley Halloween Parade: 1 p.m. Oct. 24. Help hand out flyers before the parade begins!!  Contact the campaign at 610-392-8156 or towneforcongress@gmail.com for meetup details.

• Express Times Debate, Monday, October 25 at the State Theatre in Easton, 7 PM.  453 Northampton Street Easton, PA 18042.  MAP.  Suggest arriving at 6 PM to ensure seating.  Open to public.
• Northampton Community College Forum, October 28, 11 AM till perhaps 12:30 or 1 PM.  Open to public, Q&A. Location Changed!! Location is in the Student Life Zone on the 2nd floor of the College Center.  3835 Green Pond Rd Bethlehem, PA 18020.  Campus Map.

• Slatington-Walnutport Halloween Parade: 5:30 p.m. Oct. 30. Help hand out flyers before the parade begins!!  Contact the campaign at 610-392-8156 or towneforcongress@gmail.com for meetup details.

• Easton-Phillipsburg Halloween Parade: 12:30 p.m. Oct. 31. Help hand out flyers before the parade begins!!  Contact the campaign at 610-392-8156 or towneforcongress@gmail.com for meetup details.
• Allentown Halloween Parade: 1 p.m. Oct. 31. Help hand out flyers before the parade begins!!  Contact the campaign at 610-392-8156 or towneforcongress@gmail.com for meetup details.
• Bethlehem Halloween Parade: 1 p.m. Oct. 31. Help hand out flyers before the parade begins!!  Contact the campaign at 610-392-8156 or towneforcongress@gmail.com for meetup details.

• NOVEMBER 2nd ELECTION DAY!! Volunteers are needed to hand out literature outside of local polling stations, please volunteer here and share your name, phone #, city, and if you live in the district, your current polling location.   Victory Party for all volunteers at 8 PM at Pies On Pizzeria at Front and Pine Streets, Catasauqua!!!!

The campaign has an urgent need to raise another $4,000 to pay for TV ads in the final couple weeks prior to the election. Watch the ad here or below!

Please consider donating as for some very affordable rates we can get the message out to key demographics. The schedule of ads will be published when available, and I expect everyone will be quite pleased with the number of spots, times and channels the campaign can air with such a limited budget.

Donors giving at least $100 will receive a hardbound copy of Henry Hazlitt’s timeless Economics in One Lesson as a thank-you gift (please allow up to 4 weeks for delivery).  After another 10 copies, I will have to substitute a hardbound copy of “What Has the Government Done to our Money?” as our Hazlitt copies are going quick!

Last month, the campaign raised $2,200 for radio ads during a money bomb, and carefully spent over $6,000. As a result, just about everyone who listens to the radio in the area has heard the ad.

“Know ye not, Who would be free, themselves must strike the blow?” – Lord Byron

Debate footage from last night, a YouTube playlist, then from WFMZ’s website!
And don’t miss “Interview with Two Zombies!!”

“Know ye not, Who would be free, themselves must strike the blow?” – Lord Byron

Last night at a local candidates’ night I gave the below speech, though the bracketed paragraphs were cut out due to time limitations.  The event was co-sponsored by the Lehigh Valley Tea Party and Lehighton Tea Party.  My Republocrat competition – for the second event in a row – failed to show up.

During the past 6 years, the official national debt has nearly doubled from $7.6 to $13.5 trillion. Per the US Treasury, the unfunded liabilities for Social Security and Medicare is $107 trillion dollars, which is nearly $400,000 for every man, woman, and child. What has the taxpayer gotten in return?

During the past 6 years, the number of service members killed in Afghanistan has risen from 160 to 1,311.

During the past 6 years, unemployment locally has doubled from 5 to 10%. The number of people living on food stamps has increased from 25 to 41 million which is nearly 1 in 8 Americans.

Now over 3 in 4 Americans live paycheck to paycheck, a figure which has about doubled since 2006. What has the taxpayer gotten in return?

We must stop the endless debt. I have pledged to balance the budget each year, and I have called upon my competitors to join me, and they have chosen to not do so.

I am against taxpayer bailouts of corporations like the TARP Banker Bailout. Mr. Dent voted to bailout the bankers, and Mr. Callahan has stated he would’ve voted FOR the bill as well. (source)  (Photo courtesy Roger Smith)

The banker bailouts served to benefit the government’s favorite corporations at the expense of every individual in America, costing close to $10,000 per household. By creating more future debt, the government worsens the present situation and places our next generation into unsustainable levels of debt.

Whether it is the military-industrial complex, Big Oil, Big Pharm, Big Ag, or the financial firms who bankroll their career politicians into power, the crony corporatism and revolving door between the government and Wall Street must end. I am the only candidate to not accept and pledge never to accept, money from corporations and lobbyist groups.

To create jobs, we must first realize that the massive unemployment we have today is purely a creation of the governments’ interventions in the economy. There is no shortage of work to be done, we must only stop the government’s harmful interventions in the tax, labor, and regulatory laws. To do this we must simply ask ourselves one simple question – does this law encourage or discourage employment? If it discourages employment, then Congress should change or amend the current laws.

While I am for some regulations like reinstating Glass-Steagall and closing loopholes in accounting laws so banks and Wall Street investment firms can no longer pull off accounting tricks, many other wasteful, ineffective regulations like the $100 billion dollar-a-year Sarbanes-Oxley Act must be removed since they place American firms at a disadvantage with the rest of the world.

To stimulate the economy, we could abolish the income tax for 50% of all Americans and lose less than 3% of all income tax collected or have an income tax holiday for several months.  This is a lot of dollars to help assist individuals, and very little income to the federal government – they increase the national debt by the same few billion just about every day. It would be easy enough to cut some of the government to pay for this, as well as reduce the salaries of federal workers who make an average salary of $71,000, which is about twice the median household income.

Governments do not create sustainable jobs, only people do. Government’s role is to preserve individual liberties and a sound business environment by enforcing punishments for fraud, contract violations, theft, and acts of aggression.

Now, the salary of a Congressman is $174,000. How can any voter believe that any candidate will represent them by slashing wasteful government spending if they fail to start with themselves?

That is why I will only accept the district’s median household income of $58,000. I will donate the remaining $116,000 to local non-profit hospitals to help provide health care to the poor. I will not enlist in the federal healthcare plan nor the congressional pension plan.

I have called upon Mr. Callahan and Mr. Dent to join me and cut the reckless federal spending by starting with themselves, and they have chosen to not do so.

Our founders clearly realized that all power stems from the PEOPLE, from US, and all officers of government are NOT masters, but SERVANTS. That is why I came up with an accountable and transparent form of open government where all residents will have a public voice to comment on all house floor votes called Our Open Office. Unlike the career politicians in power, I will always tell you WHY I voted each way, and in that way I will be held accountable to the people.

Now, Americans are not faced with many good choices between the Republicans or Democrats. It is more like the Arsenic Party versus the Cyanide Party. Each party tries to convince you that their Arsenic tastes great, but the other party’s cyanide will kill you.

The two-headed, one-party system that controls the federal government is repeating like a bad record – “MORE spending, MORE taxes, MORE war, MORE debt.” If you flip the record, all you hear is “LESS liberty, LESS safety, FEWER jobs, LESS prosperity.”

Now I would like to talk for a moment about a group of Americans who write a check for up to and including their lives to defend our country. Under the US Constitution, Congress has the responsibility to provide healthcare to every veteran for physical or mental trauma sustained while in the military. Many veterans suffer for their LIFETIMES from post-traumatic stress disorder, missing limbs, and brain injuries.

5,735 soldiers have died so far in the Iraq and Afghanistan Wars. [In Afghanistan, more troops have died under the 2 years of Obama administration than under the 7 years of Republican rule.] Around 32,000 have been wounded in Iraq alone, and behind each of these casualties are families and loved ones.

Just this weekend I was knocking on doors and a gentleman had to stop talking, all choked up, since his brother was killed in Afghanistan.

Since the War on Terror began in 2001, the expenditures for the Department of Veterans Affairs have skyrocketed from $48 to $125 billion dollars. Health care should never be lessened or denied to our veterans, but there are ways to cut costs and improve care at the same time.

For instance, most veterans are required to travel to far-away VA hospitals to obtain treatment and medicine in facilities that are very sub-par. In fact, rural heath initiatives to treat vets who live far from cities for the 2010 alone increased by over 600% to nearly a half billion dollars! Instead of requiring these veterans to go to the relatively few VA hospitals, they should be free to go to ANY existing hospital and a doctor of their choosing for treatment.

Veterans also face difficulty in obtaining employment upon retirement or separation from the military. In order to assist veterans, a temporary federal income tax credit could be granted to employers who hire veterans. This is a zero-cost benefit to veterans and employers alike.

It’s crucial that we have a strong military to deter attacks against the our country and protect it when attacked. However, asking our young men and women to participate in unjust war is a moral abyss that we as a country should NEVER leap into. If we aspire to be a just nation ruled by laws we must resolve to NEVER ask our military men and women to engage in unconstitutional warfare and nation-building missions.

That said, the United States of America has unfinished business with the al-Qaeda terrorist group. However, we are going about it all the wrong way for the past two decades.

The greatest threat to our national security is the national debt, not boogeymen living in caves in Pakistan. Osama Bin Laden and his ilk will never destroy America – it will be the Congress who first destroy the country financially and economically by looting our blood and treasure.  This is the true threat to our way of life.

George Washington would be aghast at our attempts to defeat Al-Qaeda. During the Revolutionary War, the mighty British empire was not defeated militarily by the colonists – George Washington lost just about every single major battle. Instead, Washington won the war by merely surviving, by causing the British to expend vast amounts of treasure and troops over a 3,000 mile supply chain.

The government spends well over $1 trillion dollars a year on our foreign adventures, with over 760 military bases in 150 of the world’s 194 countries, yet we do NOT have a strong national defense of our borders. We have 55,000 troops in Germany and 10,000 troops in Italy.

Why should the American taxpayer defend rich Europeans from a communist USSR that fell apart 20 years ago, so those same rich Europeans can cut their defense budgets to protect their welfare spending? Didn’t WWII end 70 years ago?

[However, the fact remains that the threat of suicide terrorism is enhanced – NOT lessened – by the conventional armies stationed abroad in Iraq, Afghanistan, and Pakistan. Suicide terrorist groups – whether Al-Qaeda, Hezbollah, or the Tamil Tigers - have a single strategic goal in mind – to compel modern democracies to withdraw military forces from territory that the terrorists consider to be their homeland.]

[Although Osama Bin Laden was a CIA “asset” against the Soviets in Afghanistan during the 1980s, if one reads the 9/11 Commission Report, one will find a very long record of inaction in tracking down Bin Laden who bombed US embassies in Kenya and Tanzania killed 12 American citizens in 1998 and was also tied to the USS Cole and the 1993 World Trade Center bombing.]

However, hurling armies of tens of thousands after Bin Laden is not cost effective, nor is it constitutional – nor has it succeeded after the past 9 years. Our nations’ generals admit there are less than 100 Al-Qaeda in Afghanistan, and yet to capture them the taxpayer is paying to send 100,000 troops – plus many more contractors – at a cost of over $1 million apiece to fight with one pack of tribal warlords against another pack of tribal warlords. Each gallon of gas burned in the Afghanistan War costs the taxpayer $400 per the Pentagon.

A strong national defense begins right here at home with our borders, not the borders of Iraq, Germany, and Italy. If one takes the time to read the Iraq and Afghanistan constitutions that the US guided them in writing, you will find that taxpayers here are not creating democracies or rule of law – they are creating impossible utopian governments that operate under sharia law.

We have our own Constitution, and it is about time we began following it!

To defeat suicide terrorists one must capture the current generation and prevent the next generation from being created from collateral damage. Capture of the terrorists who caused 9/11 will best be attained by small units of special forces acting to enforce the law under constitutional warrants called letters of marque and reprisal and increasing bounties for the wanted criminals. Without vastly expensive armies stationed on foreign lands, creating unintended damage and death to the civilian population, the next generation of suicide terrorists will have no reason to exist.

This November 2^nd, you can keep voting for those who caused all this economic strife or you can vote for a problem solver who not only has the solutions, but who will listen and be accountable to you.

I have more private sector experience than Mr. Dent, and more industrial experience working abroad than Mr. Callahan. I have a proven track record of results and success as a leader and serving customers.  I am the only candidate with some formal background in the study of economics.

Washington has far too many rulers, and not enough servants of the people. When I am elected, I will be your public servant, your employee.

Congress continues to vote for more debt, more war, and fewer jobs every year they remain in power. It is like my father once told me – “If you always do what you always did, you will always get what you always got.”

What have the people of the 15^th district received by voting for the Republocrats?  The same results – more taxes, more debt, more war, and less liberty.

For those of you who think you will be throwing your vote away by voting independent, nothing could be further from the truth. Nothing could be further from the truth.

Your parties have betrayed you.

Your parties have lied to you.

Your parties have let you down.

This year you have a real choice in voting independent. I humbly ask for your vote this November 2^nd.  (end)

Upcoming Events!!

• PA Liberty Conference. Friday, October 8.  I will be sharing the “Our Open Office” idea with this group at 3 PM in Harrisburg, PA.  Ticketed event, see here for details.
• Crop Walk, October 10th in Bethlehem, registration at 1p.m. under the Hill-To-Hill Bridge, Main and Spring streets.  This charity event benefits soup kitchens around the Lehigh Valley, including the one I volunteer at every week.  The walk begins at 1:30 p.m.  MAP.  Please RSVP to towneforcongress@gmail.com or call 610-392-8156.
• WFMZ-69 Debate to be televised live, October 13 on WFMZ-69, 8 PM.
• Lunch with Allentown Rotary Club, Friday, October 15 at the Holiday Inn, 12:30-1 PM.  904 W. Hamilton Streets, Allentown, PA 18101.  Map.  Briefly address and answer questions from this group.
• Nazareth Area of Commerce Debate on Monday, October 18th, from 9:30-11 AM.  Economic focus.  Tickets are necessary for breakfast, see www.nazarethchamber.com.  Location is Rt 22 and 512 at the Best Western.
• Morning Call Online Chat, online at noon on October 19th.  URL TBA.
• East Penn Taxpayer’s Association Candidates Night on October 19th, 7:30 PM.  Open to the public, will speak for a few minutes and answer questions.  Emmaus Fire Co. #1 on 610 Broad Street, Emmaus, PA.  MAP.
• Pen Argyl Area Concerned Citizens Debate, Wednesday, October 20, evening, exact time/place to be announced.
• De Sales University Debate, Thursday, October 21, 7:30-9 PM in Center Valley, PA.  Located in the Commonwealth Room in the University Center (Building #48 in this map).  Open Q&A from the audience.
• Express Times Debate, Monday, October 25 at the State Theatre in Easton, 7 PM.  453 Northampton Street
  Easton, PA 18042.  MAP.  Open to public.
• Northampton Community College Forum, October 28, 11 AM.  Open to public, Q&A. Location is the World War II Conference Room – CC117 located on the first floor of the College Center.  3835 Green Pond Rd Bethlehem, PA 18020.  Campus Map.
• NOVEMBER 2nd ELECTION DAY!! Volunteers are needed to hand out literature outside of local polling stations, please volunteer here and share your name, phone #, city, and if you live in the district, your current polling location.

“None are more hopelessly enslaved than those who falsely believe they are free.” – Johann Wolfgang von Goethe

The economic depression is waking up more and more Americans to the sad truth that the federal government is out of control. A fascist state is quickly developing in America, one of the few rare places in the history of the planet where “life, liberty, and the pursuit of happiness” was not an unattainable dream but instead a mission statement. I first fully grasped where the misguided actions and ideology of the Republocrats would lead America during the Banker Bailout of 2008, and I returned home to fight against the Establishment by running for United States Congress as soon as I could.

While modern politicians scapegoat the free enterprise as having failed, America has not had anything resembling a free enterprise for many years.   Free enterprise is neither the corporate welfare and corrupt cronyism of the Republicans, nor the wealth distribution and “gravy-train” welfare state of the Democrats, nor an all powerful economic warfare state and military-industrial force as supported by both parties.  Under free enterprise, special privileges, money, and benefits are never doled out by the government; business succeed if they please consumers by offering them what they want.   Free enterprise offers an abundance of sustainable jobs at the highest wages.  The government serves to provide a sound business environment under a rule of law and investigates and punishes fraud, theft, and contract violations.

Now when I use the term “fascism” in this piece, I do not mean its typical connotation with physical brutality, murder, and torture – though this is the easily recognizable final product. Fascism by Benito Mussolini’s originally intended economic meaning was symbolized by the “fasces” – bound sticks, sometimes with an axe, used as a totem for state power in ancient Rome.  Here are my definitions – which by and large agree with most literature – for four socioeconomic systems:

1. Free Enterprise – a social system based on the private ownership of the means of production.
2. Interventionism – a social system where the means of production is privately owned, but the government intervenes by passing regulations and orders.
3. Fascism – a social system where on paper the means of production is still privately owned, but the government has de facto control through the passing of a multitude of regulations and orders, accompanied by corruption.
4. Communism – a social system based on government (or “public”) ownership of the means of production.

The great confusion of today by many is that the evils of government-sponsored corporatism, “crony” capitalism, or “disaster” capitalism are instead somehow free enterprise, when in reality rarely do even local farmers’ markets pass as free enterprise today.

Many examine the current state of rampant interventionism and soft fascism, conclude the free market failed, and incorrectly decide that the solutions must be yet more centralized government control of the economy, as seen in many respects with corporate bailouts of AIG, GM, Citibank, and others. Unfortunately, more fascism will cause a downward spiral as can be predicted by reading my article “The Government’s “War” on Main Street” and the campaign’s Jobs plank.

Case in point is the healthcare takeover where a tax of almost $1 trillion dollars will be levied upon the American people in new taxes over the next several years to provide coverage – not necessarily actually providing healthcare as pointed out in the campaign’s Health Care plank. Congress, via the HMO Act of 1973 and other acts, has created a government-sponsored insurance cartel that does not serve consumers best. A system of free enterprise would deliver the most affordable, best-quality healthcare to consumers with the most features while naturally regulating the upcoming medical worker shortage as baby boomers attempt to retire. (photo)  The labor law stipulations required to force the new monopolized system on everyone will devastate the poor, which ostensibly is the true reason for the bill in the first place.

The solutions to the healthcare situation are to remove state mandates that dictate 15-40% of premiums in Pennsylvania, destroy insurance portability barriers over state lines, pursue tort reform on the state level, enact federal tax relief legislation, remove state restrictions on licensing and seats in the medical school system, and provide a sound currency to stop price inflation. Note that all these solutions call for LESS government intervention, not more.  Note that while Republican politicians may seem at first to support my line of reasoning, at heart they seek control just like the Democrats, like the Republican incumbent in my race, demonstrated in his healthcare bill last summer.

Congress has also been hard at work creating new barriers for small businesses on the economic front with HR 4173, the Wall Street Reform and Consumer Protection Act of 2009. I dubbed this bill the Automatic Bailout Bill in November 2009 as the bill grants sweeping new powers to the Federal Reserve and creates more central planning unelected bureaucrats with the Financial Services Oversight Council.

Section 1105 gives this council vast powers to takeover transactions of all financial holding companies that pose a “grave threat to the financial stability or economy of the United States” which of course is let undefined.

Section 1701 gives the Federal Reserve “in unusual and exigent circumstances… that a liquidity event exists that could destabilize the financial system” power to authorize immediate bailouts and assistance to any “individual, partnership, or corporation.” This enables the FED to neatly bypass Congress when the next crisis occurs. The dollar limit on the FED’s new bailout authority? A cool $4 trillion dollars.

Section 1405 is a tragic comedy. It brazenly stipulates that the FDIC deposit insurance fund (DIF) reserve ratio must be higher than 1.15% for bank accounts. Unfortunately, the DIF is ALREADY at negative 0.39% and is completely insolvent by nearly $21 billion. While the government is intent on printing its way to prosperity, down this route only lies madness.

Fascism, communism, and even much of interventionism that violate individual liberties are just varying degrees of central planning, aka socialism. As America installed more interventions in the economy, the great Austrian economist Ludwig von Mises in 1950 delivered a lecture “Middle-of-the-Road Policy Leads to Socialism” which warned that interventionism, over the long run, would still lead to socialism. Mises was correct, and the impending dollar currency crisis which will make the current situation pale in comparison remains unheeded by the money-printers in Congress and the FED.

If America is to have freedom from fascism, the current healthcare and economic takeovers must be firmly rejected. The greatest threats to America’s prosperity, liberties, and way of life do not tread in forsaken deserts but instead infest the halls of Washington, D.C.  The choice between the two socioeconomic systems – the failed status quo or the solution that will create prosperity – is stark, but easy to make once the facts are understood.  America must leave the Road to Serfdom or pay its eventual consequences.

I pledge to immediately act to revoke the above economic takeovers Congress has passed once I take office in January 2011 as an independent private citizen, beholden not to lobbyists and special interests, but to the people in my district who I will faithfully serve by delivering true transparency and real accountability.

Originally written in March 2010 here.

Updated debate schedule:

• Delta Kappa Gamma/League of Women Voters Candidate Forum, this Friday, September 24th, 2010 at Cedar Crest College, 6-9 PM, Harmon Hall of Peace in the Miller Family Building (#15) next to Lees Hall at Cedar Crest College.  Campus Map.  Google map to the college at 100 College Drive, Allentown, PA 18104.  Open Q&A from public.  6 PM doors open, 6:30 PM coffee/tea/desserts, 7 PM debate starts.
• Tea Party of the Lehigh Valley Candidates’ Night, Monday, October 11, Penn’s Peak in Jim Thorpe, 6 PM.  325 Maury Road, Jim Thorpe, PA 18229-2811.  Directions.  I will probably be speaking around 7:00 PM.
• WFMZ-69 Debate to be televised live, October 13 on WFMZ-69, 8 PM.
• Morning Call Debate on  Thursday, October 14th.  Towne for Congress is BANNED from this event, details here!!
• Pen Argyl Area Concerned Citizens Debate, Wednesday, October 20, evening, exact time/place to be announced.
• De Sales University Debate, Thursday, October 21, 7:30-9 PM in Center Valley, PA.  Located in the Commonwealth Room in the University Center (Building #48 in this map).  Open Q&A from the audience.
• Express Times Debate, Monday, October 25 at the State Theatre in Easton, 7 PM.  Open to public.
• TBA – Northampton Community College, Date/Time/Place to be announced

The first debate just concluded a few hours ago, PCN was taping the event but had technical difficulties so the first half is missing.  See below for part 1 and part 2 that was taped.  A volunteer videotaped the event so we hope to have footage soon!  It was the first debate of my life, and went great!!   The event was mobbed with people — after the first several hundred people, the event staff had to turn away scores of residents.  Now that I have debate experience under my belt, I can hardly wait for the next debate on September 24th at Cedar Crest College!!!   Debate schedule here.

Today is the September 14th Money Bomb, put together by grassroots supporters.  The last money bomb in August raised exactly $3000 from 52 donors, and was used to purchase yard signs.

It is expected that all money raised today will go towards radio ads, which are affordable on the local favorite radio stations.  A 30-second spot costs roughly $30 depending on the time and will reach thousands of listeners.  The campaign’s first radio buy commences today at 6 AM, you can listen to the ad and share it below!

The vast majority of the money spent already was used to build the campaign enough momentum to get to this point and finish the arduous petitioning process for ballot access.  I cannot highlight enough how at this point a little money goes a long way. Thank you very much for your support!!



“Truth persists and illuminates, even if there is no one to utter it.“

Government is not the solution; rather, it is causing the problems.  The below slides (view at Scribd, backup PDF) highlight the economic situation, updated from a May presentation.  I’ve written about the solutions to the unemployment problem, the deficit, Social Security, and the high costs of health care which are linked below.

For Liberty and the Constitution,

Jake Towne

Will the real national debt please stand up? The national debt published in the papers and online – which is closely tied to the USTreasury market is now over $13.3 trillion.  Current government plans include massive deficit spending through 2013, and the government’s optimistic projections of a return to “normalcy” after 2013 are not anchored in reality.  Source of budget data.

However, the true national debt is hidden by the cash-based accounting method government uses.  The true national debt is over $120 trillion when GAAP (Generally Acceptable Accounting Principles) are used to identify future taxation sources and future debts such as Social Security and Medicare.  That’s around $400,000 for every man, woman, and child in the country.  Massive reductions in spending and taxation are necessary if America is to regain its financial sovereignty, my proposals are outlined here and in “Guns or Health Care?“

As seen in the official USTreasury report on page 178/254, the total unfunded liabilities for Medicare and Social Security is a jaw-dropping $107 trillion over the future of these programs.  While I predict the Democrats may bear the brunt of the blame for the collapse of Medicare, one must not forget that it was the Republican’s massive expansion of Part D’s prescription drug plan under Bush that severely worsened Medicare’s fiscal situation.  While the situation in Medicare is worse – and changing daily due to the new healthcare legislation – some of my proposals to maintain Social Security are outlined in “Social Security or Insecurity?“

“He has erected a multitude of New Offices, and sent hither swarms of Officers to harass our People, and eat out their substance.” – Declaration of Independence, 1776

The quote above from the Declaration is far more true in 2010 than it was in 1776.   Not counting the millions of government contractors, the government’s Republocrat-controlled work force is currently 22.8 million bureaucrats.  This is America’s largest single job sector, and remember, the taxpayer bears the full cost to keep these bureaucrats employed.  Like something out of an Orwell novel, the Washington Post estimates 854,000 bureaucrats are employed to spy on and keep tabs on the rest of us and the world.  Lisa Benson’s cartoon says it all.

Keep in mind bureaucrats make nearly twice the average wage of the private sector, and have better benefits.  My solution?  Lead by example.  I will refuse the elite congressional pension and healthcare plans when elected, and keep just the median income for a salary and donate the rest of the $116,000 to local non-profit hospitals.

Next, notice that more than 1 in 8 Americans are on food stamps, or 40.4 million people.  USDA link here.  Note the strong rise in number of SNAP food stamp recipients during the past year.  One would expect to see this number dropping or even flat-lining – along with employment rising – if a recovery were underway.  The annual projected cost is now $66 billion, paid for by the ever-diminishing work force.

No jobs, no recovery. BLS link here.  Note that while the “newspaper” unemployment rate is still 10%, the U-6 figure – which more accurately describes total unemployment is 17% – a depression statistic.  An estimated 1.6 million will file for bankruptcy this year.   I’ve described the common sense solutions to end the rampant unemployment created by the government almost overnight in the campaign’s Jobs plank.

Since the BLS drops off workers from its U-6 figure, the real unemployment rate is likely greater than 17%.  Shadowstats estimates the rate at about 22%.

The number of new housing starts has reached a 5-decade low, while about 25% of all residential mortgages are underwater.  Note that in prior recession cycles, a quick rebound occurred while this depression looks more like a dead cat bounce.  This is because….

The Federal Reserve bailed out the bankers and Freddie Mac and Fannie Mae.  The above is built from the Federal Reserve H.4.1 data here.  The red line is the total (reported) balance sheet of the FED, which has more than doubled since the time of the Banker Bailout.  While the original TARP bailout (not shown) accounted for much of the initial sharp increase, most of the debt has been replaced by $1.12 trillion of mortgage-backed securities (the purple line).

This graph shows the nationalization and propping of America’s entire residential housing industry. The yellow and green lines show the cumulative totals of USTreasury and USAgency debt held by the FED.  While the Federal Reserve has admitted it will take losses on the MBS debt, the question remains as to how much and when.

The purchasing power of the dollar has lost well over 94% since FDR took America off the classical gold standard in 1933 through monetary inflation.  The monetary inflation is caused by the Federal Reserve.  They debase the dollar by creating more and more irredeemable paper dollars, which is of increasing concern since China has stopped buying Treasury debt.  A major reason why healthcare now appears so expensive is this money-printing, as I highlighted in my article “Health Care Solutions.”  Graph provided by Bloomberg Financial, 2009.

To cap off the situation with the dollar, the latest quarterly banking profile from the FDIC state the deposit insurance fund (DIF) is bankrupt.  While consumers at failed banks still receive “insured” funds, the losses are presumably filled in with dollars from the FED, as reported last here.  The current FDIC “watch list” rose to 775 banks, or almost 10% of all FDIC-insured banks in the US per p. 3/26.

In summary, do not expect a recovery until the Republocrat ruling elite are removed from power or are forced to address the problems the rest of society faces.  As the extravagant $5 million Bill Clinton wedding under heavy security – possibly paid for by the taxpayer – and $7 million John Kerry yacht (and avoidance of >$500,000 in taxes) demonstrate, the elite are not exactly suffering.

As Stuart Carlson’s great cartoon shows, the “Great Recession” still has a firm grip on the economy.  Sadly, the truth is the situation in America will not improve until the government removes its jackboots from the throat of the economy.  Ceasing all special privileges to special groups would help as well.

That Freedom Shall Not Perish,

TOWNE FOR CONGRESS

Article Archives

Jake Towne for US Congress PA-15 – Economy in Pictures (AUG 2010)

Independent congressional candidate Jake Towne issued this statement today against the Coke/Pepsi Republocrat Party:

“Incumbent Charlie Dent no longer has any excuse to avoid debates and being taken to task for his poor performance over his past twenty years in office. Dent has misrepresented the district during the most severe economic downturn in modern history and has continued to not address the true root causes; he has APPROVED excessive federal spending, APPROVED corporatist bailouts and APPROVED monster deficits over his congressional career.

“Meanwhile, the other establishment politician, John Callahan, supported the TARP Bailout, and has somehow avoided speaking on the debt and spending for the past 12 months. I caution the problems of excessive federal spending will NOT be cured by yet more government spending. America must radically cut both federal spending and taxes, and place money back in the hands of workers and consumers.

“Dent has falsely accused me of being “someone enmeshed in ideas of anger, violence, anarchy, and bigotry” while I speak about peace, the rule of law, and protecting individual liberties.  Meanwhile, the chief “issue” Callahan and Dent are discussing in the papers is whether Callahan’s brother-in-law received favorable treatment during a 2007 car crash.

“I call upon these Republocrat career politicians to stop playing their “politics-as-usual” games and make themselves available to the public to debate and focus on the crucial issues like the deficit, unemployment and the costly nation-building wars abroad. As a concerned private citizen and candidate during dire economic times, this is my patriotic duty. As a servant, I owe this to the public, who are my employers.”

“Following an interview with Bobby Gunther Walsh to “do my homework,” personal remarks made by Poker Face band members in the Forum section of their website were reviewed and found to be extremely disturbing, specifically remarks about the Holocaust. These remarks were confirmed with the band and the campaign and band mutually agreed to disassociate and cancel the band’s appearance at this Friday’s Freedom Concert, which will take place at 7 pm this Friday in Northampton.

“I condemn the holocaust and the deaths of ~6 million Jews as well as other groups such as Russians POWs, political prisoners and gypsies who died as well. In my travels abroad, I’ve walked through Nazi concentration camps, the Killing Fields in Cambodia, the Nanjing Massacre Museum in China and places all over Asia where the Japanese committed WW2 atrocities, and these experiences has affected me deeply.  As I have remarked, tyranny ends only when we cease to support our own serfdom.

“Both Dent and Callahan have proven to be clueless on job creation. Meanwhile, I have the simple, true answer – governments cannot create real jobs, only people do. To cure the unemployment problem, all that must be done is to stop the harmful government interventions into the tax, labor, and regulatory laws.”

Article Archives

PS – While my interview as a political rookie with Gunther was not anything to write home about (visit here to listen), I did much better than the sitting Congressman, Charlie Dent, who was stuttering and unable to remember his own website by the end of the exchange.  I feel strongly that there can never be enough Gunthers in the press to ferret out and demand the truth.  The people should expect nothing less of a free press.  I hope I am invited to discuss more issues like the deficit, foreign policy, and jobs again.