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  • 1. The FDA: Neither Safe nor Effective • Texas Corridor Update • Baseball Hero — Ted Williams September 27, 2010 www.TheNewAmerican.com ThaT Freedom Shall NoT PeriSh $2.95
  • 2. FeaturedProducts End The Fed The Creature From Jekyll Island Ron Paul shows how and why we must end the Fed. (2009, 212pp, hb, G. Edward Griffin unmasks the secrets behind the manipulation of our $21.95) BKeTF nation’s money supply by providing an insider’s look at how the Federal Reserve came into being and how it controls the value of the dollar. Meltdown (2009ed, 608pp, pb, $22.95) BKCFJI A free-market look at why the stock market collapsed, the economy tanked, and government bailouts will make things worse. (2009, 194pp, Tragedy & Hope: hb, $25.95) BKMd A History of the World in Our Time Professor Carroll Quigley praises the efforts of an “international The Politically Incorrect Guide to Anglophile network” whose goal is to rule the world. He boasts of having Global Warming been permitted “to examine its papers and secret records,” confirms the This explosive new book in the Politically Incorrect Guide series exposes existence of an overarching conspiracy, and details the origin and rise to the myths and distortions behind the green lobby. (2007, 350pp, pb, power of the CFR and allied groups. (1997ed, 1348pp, hb, $42.95) BKTAH $19.95) BKPIggW Carbon Dioxide and the “Climate Crisis” Dollars & $ense Reality or illusion? An investigative documentary by CO2Science. (DVD: Bailout after bailout. When will it stop? What are the solutions? What 2008ed, 53min, $19.95) dVdCdCC can you do? (2009, 40pp, pb, booklet, 1/$2.95ea; 10/$2.00ea; 25/$1.50ea; 50/$1.00ea; 100+/$0.75ea) BKLTdAS (2008, 42min, cased DVD, 1/$5.95; A Case for Blocking the NAU 10/$49.50; 25/$98.75; 100/$225.00) dVddASC (2008, 42min, sleeved DVD, “A Case for Blocking the North American Union” offers an updated, 1/$1.00; 25/$20.00; 50/$37.50; 100/$70.00) dVddAS (2008, 42min, audio CD, no-nonsense report on the dangers of illegal immigration and the pro- 1/$1.00; 25/$20.00; 50/$37.50; 100/$70.00) CddAS posed NAU. (2008, 11 min, sleeved DVD, 1/$2.00; 2/$1.50ea; 11/$1.25ea; 21/$1.00ea; 100/$0.75ea) dVdCBnAU Take Your Money Back How would repealing the federal income tax affect you? This power- The Great Global Warming Swindle ful video answers that question. (2008, 10min, 1/$2.50; 2-4/$1.75ea; A devastatingly authoritative account of how the hysteria over global 5-10/$1.50ea; 11-20/$1.25ea; 21-50/$1.00ea; 51-75/$.90ea; 76-100/$0.80ea; warming has parted company with reality. (DVD: 2007, 158min, $19.95) 101-500/$0.75ea; 501+/$0.70ea) dVdTYMB dVdggWS ✁ QuAnTITy TITlE PrICE ToTAl PrICE Official Store of Mail completed form to: The John Birch Society ShopJBS • P.O. BOX 8040 APPLETON, Wi 54912 Order Online: www.shopjbs.org Credit-card orders call toll-free now! 1-800-342-6491 Name ______________________________________________________________ Address ____________________________________________________________ SUBTOTAL WI ReSIdenTS Add 5% SALeS TAx SHIPPIng/HAndLIng (See CHART BeLOW) TOTAL City _____________________________ State __________ Zip ________________ Phone ____________________________ E-mail ______________________________ For shipments outside the u.s., please call for rates. ❑ Check ❑ ViSA ❑ Discover 000 0000 000 000 0000 0000 0000 0000 0000 Order Subtotal Standard Shipping Rush Shipping ❑ Money Order ❑ MasterCard ❑ American Express VISA/MC/Discover Three Digit V-Code American Express Four Digit V-Code $0-10.99 $4.95 $9.95 Standard: 4-14 $11.00-19.99 $7.75 $12.75 business days. Make checks payable to: ShopJBS ___ ___ ___ ___ ___ ___ ___ $20.00-49.99 $9.95 $14.95 Rush: 3-7 business $50.00-99.99 $13.75 $18.75 days, no P.O. Boxes, # _________________________________________ Exp. Date ________________ $100.00-149.99 $15.95 $20.95 HI/AK add $10.00 $150.00+ call call 100927 Signature ____________________________________________________
  • 3. First Ten Amendments to the Constitution Article I. Congress shall make no law respecting an property, without due process of law; nor shall private property be establishment of religion, or prohibiting the free exercise thereof; or taken for public use, without just compensation. abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a Article VI. In all criminal prosecutions the accused shall redress of grievances. enjoy the right to a speedy and public trial, by an impartial jury of the state and district wherein the crime shall have been committed, Article II. A well-regulated militia being necessary to the which district shall have been previously ascertained by law, and security of a free state, the right of the people to keep and bear arms to be informed of the nature and cause of the accusation; to be shall not be infringed. confronted with the witnesses against him; to have compulsory process for obtain-ing witnesses in his favor, and to have the Article III. No soldier shall, in time of peace, be quartered assistance of counsel for his defense. in any house, without the consent of the owner, nor in time of war, but in a manner to be prescribed by law. Article VII. In suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury Article IV. The right of the people to be secure in their shall be preserved, and no fact tried by a jury shall be otherwise persons, houses, papers, and effects against unreasonable searches re-examined in any court of the United States, than according to the and seizures shall not be violated, and no warrants shall issue, rules of the common law. but upon probable cause, supported by oath or affirmation, and particularly describing the place to be searched, and the persons or Article VIII. Excessive bail shall not be required, nor things to be seized. excessive fines imposed, nor cruel and unusual punishments inflicted. Article V. No person shall be held to answer for a capital, or Article IX. The enumeration in the Constitution, of certain otherwise infamous crime, unless on a presentment or indictment of rights, shall not be construed to deny or disparage others retained by a grand jury, except in cases arising in the land or naval forces, or in the people. the militia, when in actual service in time of war or public danger; nor shall any person be subject for the same offense to be twice put Article X. The powers not delegated to the United States by in jeopardy of life or limb; nor shall be compelled in any criminal case the Constitution, nor prohibited by it to the states, are reserved to to be a witness against himself, nor be deprived of life, liberty, or the states respectively, or to the people. We at Dean Sellers Ford believe freedom of mobility is as fundamental as our Bill of Rights. See Dean Sellers Ford for your new freedom machine. 2600 Maple Rd., Troy, Michigan • (248) 643-7500• www.deansellersford.com
  • 4. 10 vol. 26, no. 19 September 27, 2010 Cover Story Design by Joseph W. Kelly/©iStockphoto Global Economy 10 Waking up to a World currency by Alex Newman — A world currency is not only being debated, but mechanisms are in place to ensure its ascension. 17 The Emerging Global Fed by Alex Newman — A world fiat currency would create problems that would make our present ones seem tame. 17 21 FeatureS HEalTHcarE 21 The FDa: neither Safe nor Effective by Michael Tennant — The dictates of the FDA are so ingrained in society that we seldom question whether they save lives. AP Images AP Images norTH amErica 27 Texas Sidestep by Kelly Holt — The Trans Texas Corridor, though slowed, is continuing. 27 book rEviEW 31 a Global-warming Primer by Rebecca Terrell — Climategate covers the science, politics, and goals behind global-warming claims. HiSTory — PaST anD PErSPEcTivE 34 baseball Hero by Jack Kenny — Ted Williams brought his keen eyesight, quick AP Images reflexes, and combative personality to two wars. THE laST WorD 44 comic books From the Federal reserve 31 34 by John F. McManus DepartmentS 5 letters to the Editor 33 The Goodness of america 7 inside Track 41 Exercising the right AP Images 9 QuickQuotes 42 correction, Please! covEr Design by Joseph W. Kelly/©iStockphoto
  • 5. LETTERS TO THE EDITOR Publisher John F. McManus misnomer ralization Service regarding any person Editor QuickQuotes (May 10) reported Harry Reid who is arrested if he or she is suspected Gary Benoit making promises “to a rally of 6,000, most of being present in the United States in Senior Editor of whom were immigrants.” That’s way off. violation of federal immigration laws. William F. Jasper Maybe there were  a  dozen curious immi- (b) With respect to any such person grants there (tops) but the rest of the crowd who is arrested, and suspected of being Senior Editor/Web were not immigrants: they were invaders. present in the United States in viola- Dennis J. Behreandt “Immigrant” sounds better, and lets the in- tion of federal immigration laws, every Associate Editor vaders steal part of the good name earned law enforcement agency shall do the Kurt Williamsen by legal immigrants who didn’t yell in the following: streets for yet more free goodies. They were (1) Attempt to verify the legal status Contributors too busy learning English, trying to fit into of such person as a citizen of the United Steven J. DuBord the community, and rebuilding their lives, States, an alien lawfully admitted as a Selwyn Duke Thomas R. Eddlem sometimes from scratch. Whatever came permanent resident, an alien lawfully Gregory A. Hession, J.D. their way, they earned. They were generally admitted for a temporary period of Ed Hiserodt no problem to anybody, and they were grate- time or as an alien who is present in William P. Hoar ful to God for being here. the United States in violation of immi- R. Cort Kirkwood Dr. K. A. SKAlA gration laws. The verification process Patrick Krey, J.D. Denver, Colorado may include, but shall not be limited to, Warren Mass questioning the person regarding his or Alex Newman her date and place of birth, and entry Llewellyn H. Rockwell, Jr. Some Threats Get a into the United States, and demanding Ann Shibler response documentation to indicate his or her Liana Stanley legal status. Joe Wolverton II, J.D. In the July 19 issue, Patrick Krey recounted (2) Notify the person of his or her ap- Art Director in Exercising the Right how Richard Daley, parent status as an alien who is present Joseph W. Kelly Mayor of Chicago, threatened to shove a in the United States in violation of fed- bayonetted rifle “up your butt” when report- eral immigration laws and inform him Research er Mike Dumke raised a question at a press or her that, apart from any criminal jus- Bonnie M. Gillis conference about the city’s feckless ban on tice proceedings, he or she must either Marketing handguns. The incident has a sequel. obtain legal status or leave the United Larry Greenley It seems that after viewing Daley’s puerile States. tirade on the “Drudge Report,” Christopher (3) Notify the Attorney General of Public Relations Traynor Fox of San Jose, California, phoned California and the United States Immi- Bill Hahn the Chicago Mayor’s office to inquire how gration and Naturalization Service of Advertising/Circulation he would enjoy suffering the fate he had pre- the apparent illegal status and provide Julie DuFrane scribed for Dumke. Fox was promptly arrest- any additional information that may be ed by the San Jose police and charged with requested by any other public entity. “making threats against a public official.” Any legislative, administrative, or Evidently, there are no laws on the books other action by a city, county, or other that prevent politicians from threatening re- legally authorized local governmental porters who ask embarrassing questions. entity with jurisdictional boundaries, or Printed in the U.S.A. • ISSN 0885-6540 Geoff SKelton by a law enforcement agency, to prevent P.O. Box 8040 • Appleton, WI 54912 920-749-3784 • 920-749-3785 (fax) Westchester, Illinois or limit the cooperation required by www.thenewamerican.com subdivision (a) is expressly prohibited. editorial@thenewamerican.com Rates are $39 per year (Hawaii and Canada, Why not Sue Two? It’s probably only a problem for the Obama add $9; foreign, add $27) or $22 for six months (Hawaii and Canada, add $4.50; foreign, add It is interesting that the Obama adminis- administration when a state really means to $13.50). Copyright ©2009 by American Opin- tration is suing the State of Arizona for its enforce its laws. ion Publishing, Inc. Periodicals postage paid at new immigration policies and not Califor- DenniS BAloG Appleton, WI and additional mailing offices. Post- master: Send any address changes to The New nia, though California has a similar law on Sent via e-mail AmericAN, P.O. Box 8040, Appleton, WI 54912. the books. California Penal Code Section 834b says: Send your letters to: the new AmericAn, P.O. The New AmericAN is pub- lished biweekly by Ameri- Box 8040, Appleton, WI 54912. Or e-mail: can Opinion Publishing (a) Every law enforcement agency in editorial@thenewamerican.com. Due to vol- Inc., a wholly owned subsidiary of The John California shall fully cooperate with the ume received, not all letters can be answered. Birch Society. United States Immigration and Natu- Letters may be edited for space and clarity. Call 1-800-727-TRUE to subscribe today! 5
  • 6. Inside Track minnesota Governor Says no to obamacare Subsidies Minnesota Governor Tim Pawlenty is putting taxpayers’ money Other Minnesota Democrats have criticized Pawlenty’s order, where his mouth is. On August 31, he signed an executive order saying it “could cost the state at least tens of millions of dollars directing state agencies not to apply for any discretionary funds in potential grant money,” the AP reports. “By their calculation, under ObamaCare. Pawlenty already has rejected nearly $1.5 billion, including $1.4 In a statement, the Republican Pawlenty said, “Obamacare is billion to expand Medicaid health care for poor adults and $68 an intrusion by the federal government into personal health care million for a national high-risk pool for hard-to-insure people.” matters and it’s an explosion of federal spending that does noth- Pawlenty has been far from consistent in his opposition to fed- ing to make health care more affordable. To the fullest extent eral subsidies. He has accepted subsidies that are not connected possible, we need to keep Obamacare out of Minnesota. This with ObamaCare and is considering whether to accept Medicaid executive order will stop Minnesota’s participation in projects assistance that is not part of the legislation. His spokesman, Bruce that are laying the groundwork for a federally-controlled health- Gordon, said he is “likely” to take the money. care system.” As a result of such inconsistency, Pawlenty’s opposition to Pawlenty’s order describes ObamaCare as “a dramatic attempt ObamaCare is frequently seen as a political move to assist the to assert federal command and control over this country’s health Governor in his expected presidential run in 2012. That may be care system” that “includes unprecedented federal intrusions into the case. If so, it proves that opposing ObamaCare is considered individual liberty,” “massive new spending commitments,” “in- by Pawlenty to be a winning issue even two years down the road creased taxes and fees,” and “a multitude of programs and dem- — evidence that the law is deeply unpopular across the country onstration projects intended to speed the transition to federally- and is not expected to become more popular anytime soon. controlled health care.” Political or not, Pawlenty’s move to avoid a federal takeover of As his order indicates, Pawlenty had earlier refused to par- his state’s healthcare system is a welcome addition to the growing ticipate in ObamaCare’s early expansion of Medicaid, and the state nullification movement. August 31 order is therefore an extension of the state’s nonpar- ticipation in ObamaCare. It is also consistent with the position Tim Pawlenty expressed at a veterans event in St. Paul, as reported by Pawlenty the Associated Press: “Anything that I can do to slow down, limit or negate Obamacare, I’m going to try to do it within reason.” Minnesota’s Attorney General, Democrat Lori Swanson, fa- vors ObamaCare and has not joined the other State Attorneys General who are suing to overturn the law. On the other hand, seven of those same states are still lining up for their share of ObamaCare funds to cover retired state employees, according to the AP — precisely the opposite of Minnesota’s situation. AP Images obama claims End to “combat operations” in iraq President Barack Obama claimed August 31 in an Oval Office ad- people. That’s what we’ve done.” More specifically, Obama has dress to the nation that “tonight, I am announcing that the Ameri- organized an unprecedented militarization of the State Depart- can combat mission in Iraq has ended. Operation Iraqi Freedom ment, which has purchased armored personnel carriers and at- is over, and the Iraqi people now have lead responsibility for the tack helicopters as part of its growing “non-combat” role in Iraq. security of their country.” Tens of thousands of supposedly non-combat U.S. soldiers are But President Obama stressed that armed U.S. intervention remaining behind in Iraq, but Obama pledged that “all U.S. troops in Iraqi affairs is a long way from over. will leave by the end of next year.” He Obama stressed that even after the Iraq- Barack added: “As our military draws down, is choose a new coalition government, Obama our dedicated civilians — diplomats, “there should be no doubt:  The Iraqi aid workers, and advisers — are mov- people will have a strong partner in the ing into the lead.” This official transition United States. Our combat mission is from warfare in Iraq to welfare in Iraq, ending, but our commitment to Iraq’s which will be managed by Secretary of future is not.” State Hillary Clinton, will still include Obama emphasized that he had en- a lot of warfare. The militarized “advis- gaged in a plan for “redoubling our ers” and “diplomats” will be more nu- efforts to strengthen Iraq’s Security merous than at present and will often be Forces and support its government and toting heavy military equipment. AP Images www.TheNewAmerican.com 7
  • 7. Inside Track obama’s new Stimulus Target: infrastructure Roads, airlines, and railways aren’t necessarily the unalloyed fiscal benefits they’re chalked up to be. Two generations ago, the French and British governments launched a visionary new program to usher jet transportation into the supersonic age. The much-ballyhooed SST (supersonic transport, better known as the Concorde) turned transatlantic flight into a thrilling, three hour adrenalin rush — for those willing and able to spend more than $10,000 to fly a route that, for a few hours more and in considerably greater comfort and less noise, cost a few hun- dred dollars. The Concorde never came close to living up to its promise, and three decades and countless billions of dollars of AP Images Obama in taxpayer subsidies later, it was finally abandoned after a Con- Milwaukee corde literally went down in flames at Charles de Gaul airport in July 2000. If it is true, as Albert Einstein is alleged to have said, that in- What about high-speed rail travel? For the record, high-speed sanity consists of doing the same thing over and over again and trains are a lot of fun to ride on, as anyone who has ridden Amer- expecting different results, then President Obama and his advi- ica’s only high-speed rail (the Acela that plies the northeastern sors may well be channeling the 20th-century physicist. After all, corridor from Washington to Boston) will attest. But they’re also the President is neither chastened nor enlightened following the very expensive, both to ride and to run, leaving aside the vast monumental failure of his multi-trillion dollar efforts to stimu- expenditures to set them up. It is both cheaper and faster to fly late the economy by spending taxpayer money. As his September from D.C. to Boston, even factoring in getting to and from the 6 speech at the Milwaukee, Wisconsin, Laborfest attested, he’s airport. France and Japan have both had vaunted high-speed rail going to try it yet again. systems for decades, which have become centerpieces in their In a widely anticipated pre-election initiative, Obama an- respective national tourism industries but have done nothing to nounced a new $50 billion dollar program to rebuild America’s actually enrich the French and Japanese economies. allegedly ailing transportation infrastructure. “Over the next six Politicians like President Obama love grand public transporta- years,” the President told an enthusiastic union crowd, many of tion projects — they are eye-catching, visionary, and a very high- whom would doubtless benefit directly from the welter of new profile way of putting people to work with government money proposed construction projects, “we are going to rebuild 150,000 (those “Your taxpayer dollars at work” signs, in all their varieties, miles of our roads — enough to circle the world six times. We’re were invented to garland such projects). But the bottom line is al- going to lay and maintain 4,000 miles of our railways — enough ways the bottom line. The fact that we know how to build 10-lane to stretch coast-to-coast. We’re going to restore 150 miles of run- freeways, supersonic transports, high-speed rails, or ultramodern ways and advance a next generation air-traffic control system to cable-stayed bridges to replace fuddy-duddy highways, conven- reduce travel time and delays for American travelers.” tional passenger jets, diesel trains, and suspension bridges does The proposal would include the installation of a new high- not necessarily mean that we should. speed rail system linking Milwaukee with Madison, the state None of which is to say that America must be content with capital, part of an ambitious program to create a national high- second-tier status. It means that a country’s greatness — ours or speed rail system that would allegedly save time, money, and any others — has little to do with the ability of its politicians to air quality. And to administer the funds for this latest stimulus spend money on public works. The illusion that national great- boondoggle, a new permanent “infrastructure bank” would be set ness flows from public greatness, as measured by politicians’ up “to leverage federal dollars and focus on the smartest invest- generosity with other people’s money, is a misconception at least ments,” whatever that might mean. as old as ancient Babylon. Governor brewer reacts to U.S. Human rights report In response to the State Department’s Human Rights report to ‘review’ by the United Nations is internationalism run amok that named Arizona as a violator of human rights for its pas- and unconstitutional.” sage of S.B. 1070, Arizona’s Governor Jan Brewer wrote Sec- The report in question included the Justice Department’s legal retary of State Hillary Clinton a scathing letter on August 27 challenge to S.B. 1070 as an example of how the federal govern- calling the reference “downright offensive” as well as “un- ment is safeguarding human rights. According to the report, “The constitutional.” issue is being addressed in a court action that argues that the federal Brewer wrote, “The idea of our own American government government has the authority to set and enforce immigration law. submitting the duly enacted laws of a state of the United States That action is ongoing; parts of the law are currently enjoined.” n 8 THE NEW AMERICAN • SEpTEMbER 27, 2010
  • 8. QuickQuotes Death Dealt to mexicans Who refused to Help Drug Smugglers “The information we have at this moment is that it was an attempt at forced recruitment. It wasn’t a kidnapping with the intent to get money, but the intention was to force these people to participate in organized crime — with the terrible outcome that we now know.” Mexico’s chief security spokesman, Alejandro Poire, issued his as- sessment after the discovery on August 27 of the bound and blind- folded bodies of 72 massacred migrants who were trying to reach AP Images Texas through an area controlled by drug lords. Alejandro Poire Prominent iraqi Fears violence When U.S. Forces Depart “They are carrying out attacks when the Americans are still here, so just imagine what they can do after the Americans leave.” After insurgents unleashed a wave of attacks against fellow Iraqis, Wael Abdel-Latif, a former law- maker and judge, expressed strong apprehensions about what will happen in his country when all American military forces depart. novel method to avoid car Theft “Beware of poisonous snake!” A sign placed in the rear window of a car parked by an anonymous New York City resident succeeded in keeping would-be thieves from stealing the vehicle. cia Payments to afghan officials becomes an issue “This agency — acting in strict accord with American law — plays an essential role in promoting our nation’s goals in Afghanistan, including security and stability. Speculation about who may help us achieve that is both dangerous and counterproductive.” Neither confirming nor denying reports that the agency’s money has been buying intelligence and sup- port among Afghanistan’s government officials, CIA spokesman George Little addressed the matter after the arrest of Afghan official Mohammed Zia Salehi by the Afghan government. Gloomy Forecast about the U.S. Economy “The national economy is getting close to the edge of slow growth and slipping into no growth. Busi- nesses are now worried that the consumer won’t reenter the economy. Therefore, why expand?” Northeastern University economist Alan Clayton-Matthews believes that people who are worried about their jobs will be spending less and saving more. obama Era’s afghan Death Toll now Exceeds bush Era’s numbers “In 86 months, the total number of casualties in Afghanistan was 630 under the Bush command. Under Obama’s weak, waffling, hand-wringing, and navel-gazing command, in just 19 months, the U.S. casu- alty count as of August 31, 2010 is now at a total of 632 and counting.” Columnist Dave Poff pointed out that the casualty numbers have soared during numerous strategy reviews, changes of military leadership, alterations in the rules of engagement, and more. nevada’s “none of the above” alternative could Help Harry reid “Any vote not for Sharron Angle is a vote for Harry Reid. The Reid camp knows that and that’s why they’re running one of the most negative campaigns in history.” In Nevada, a voter can actually select “None of the Above” when voting. GOP challenger Sharron Angle’s spokesman, Jerry Stacy, fears that voter disgust prompted by the Reid camp’s negative ads would aid their candidate. President chides GoP, Defends making recess appointments “Until they do, I reserve the right to act within my authority to do what is best for the American people.” Addressing Republican refusal to confirm several of his nominees for federal posts, President Obama announced his intention to continue making appointments when the Senate is not in session so that his nomi- AP Images Barack nees do not have to undergo Senate confirmation. n Obama — compileD By John f. mcmAnuS Call 1-800-727-TRUE to subscribe today! 9
  • 9. GLobaL Economy World leaders, American politicians, academics, and bankers are not only debating the feasibility of a world currency, they have the mechanisms in place to ensure its ascension. by Alex Newman elites have their way, America will move 1-22, 1944, to plan the post-war economic quickly toward accepting a planetary fiat order. Economist John Maynard Keynes I f all the advocates of a world fiat cur- currency issued by a world central bank. and the British government proposed the rency (a currency not backed by a pre- Calls for a new world monetary regime creation of a world currency called the “ban- cious commodity like gold) were to are nothing new. After World War II left cor,” and the U.S. government proposed a scream at once, workers in world capitals, the world’s financial system in disarray, world currency to be known as “unitas.” But business centers, colleges, and news media political leaders and financial gurus met at for a lot of reasons, mostly American reluc- may be deafened. And if global financial Bretton Woods, New Hampshire, from July tance, the schemes never took off. Instead, 10 THE NEW AMERICAN • SEpTEMbER 27, 2010
  • 10. the Bretton Woods agreement resulted in Numerous other prominent na- the U.S. dollar — its value at the time tied tional leaders have jumped on the to gold — being crowned “the” world re- international fiat-currency band- The BIS, the central bank of central serve currency. But the dollar’s place as the wagon as well — too many to banks (which was almost disbanded unchallenged world currency began being list in a short article. But perhaps for supporting the Nazis), is becoming displaced with the dollar’s decoupling from more importantly, powerful cen- gold in 1971. A new system emerged: The tral bankers around the world are increasingly powerful, along with dollar retained its position as the world’s also pushing the issue. Former global financial regulatory institutions. reserve currency, but now it was backed Fed boss and current chairman not by gold, but only by trust and the fact of Obama’s “Economic Recov- And for Trichet, this is a positive that oil and other commodities were traded ery Advisory Board” Paul Volck- development. around the world in dollars. Since then, the er, for example, has long been a U.S. government has been growing itself strong proponent of a global fiat and its power through creating money via currency and a global central bank. He is eign Relations event, tax-dodging U.S. the inflationary power of the Federal Re- widely reported to have said, “A global Treasury Secretary Timothy Geithner, a serve, thus making the dollar increasingly economy needs a global currency.” And he regular proponent of global regulation, less stable, prompting vigorous calls for a has repeatedly called for such a system, after acknowledging that he had not read world currency to stabilize world financial hoping to see it emerge during his lifetime. it yet, said, “We’re actually quite open to markets. That has especially been true as In China, the “people’s” central-bank that.” The dollar immediately plunged. markets have imploded. boss Zhou Xiaochuan has also frequently And while Geithner promptly backtracked called for a new reserve currency. In a on his statement, as the saying goes, the leading the charge 2009 report published on the central bank’s cat was already out of the bag. Naturally, prominent globalist leaders and website entitled “Reform the International At a separate Council on Foreign Re- central bankers have been at the forefront Monetary System,” Xiaochuan explained lations event earlier this year, European of promoting world-currency schemes. that “the desirable goal of reforming the Central Bank boss Jean-Claude Trichet And they are confident that the ground- international monetary system, therefore, gave a speech entitled “Global Gover- work has been sufficiently laid to achieve is to create an international reserve cur- nance Today.” While different in impor- the goal. Russian President Dmitry Med- rency that is disconnected from individual tant respects from calls to empower the vedev has been among the most vocal nations and is able to remain stable in the International Monetary Fund as the world supporters. At the G-8 meeting last year, long run, thus removing the inherent de- central bank, which seems to be the con- he actually pulled a “united future world ficiencies caused by using credit-based sensus view on how to quickly achieve a currency” coin out of his pocket bearing national currencies.” world currency, Trichet offered a vision the words “unity in diversity.” Then, he When asked about the communist-Chi- that would ultimately lead to the same end. explained to the audience that it “means nese regime’s idea at a Council on For- “We need a set of rules, institutions, in- they’re getting ready. I think it’s a good sign that we understand how interdepen- dent we are.” In June of this year, he was “People’s” bank of china boss Zhou Xiaochuan, a communist, authored a report last year calling for a world fiat currency issued by the International Monetary Fund. at it again. “We are making plans for the future. We are talking about creating other reserve currencies, and we are counting on other countries to understand this,” Medvedev told an economic forum in St. Petersburg, Russia. At the same forum, French President Nicolas Sarkozy concurred, saying world powers “should think together about a new international currency system” at the upcoming G-20 summit. He also said the world’s financial system was “outdated” and should be replaced. “We all need to think about the foundations for a new in- ternational financial system,” he urged. “We’ve been based on the Bretton Woods institutions of 1945, when our American friends were the only superpower. My question is: Are we still in 1945? The an- swer here is, ‘no.’” AP Images www.TheNewAmerican.com 11
  • 11. GLobaL Economy the level of ministers, gov- States’ version of a central bank — the Once there are fewer currencies and the ernors and heads of state or Federal Reserve — international authori- government. Second, the ties have become increasingly vocal about principal of supranational currency is establishment of the Global the supposed need for a world fiat currency established, such as has already occurred Economy Meeting of cen- controlled by a single world central bank. tral bank governors under The United Nations and the International with the euro, it becomes easier to simply the auspices of the [Bank Monetary Fund are the most prominent merge them. for International Settlements among them. And both of these quasi-gov- (BIS)] as the prime group ernmental institutions have recently issued for the governance of central reports blasting the dollar and calling for a formal groupings and cooperation mecha- bank cooperation. And third, the extension world fiat currency. nisms that we call ‘global governance,’” he of Financial Stability Board membership “A new global reserve system could be said, praising the progress that has already to include all the systemic emerging mar- created, one that no longer relies on the been made in “strengthening the mandate ket economies.” In other words, the BIS, United States dollar as the single major re- of existing international institutions” but the central bank of central banks (which serve currency,” said the UN’s World Eco- noting that “no market can survive without was almost disbanded for supporting the nomic and Social Survey for 2010. “The a set of rules. This is particularly true at Nazis), is becoming increasingly power- dollar has proved not to be a stable store the international level.” ful, along with global financial regulatory of value, which is a requisite for a stable In terms of the international monetary institutions. And for Trichet, this is a posi- reserve currency.” The new UN report said system, he applauded the fact that central tive development. that the IMF should be given the authority banks around the world were already “able He added, “Global governance is of the to print its own fiat currency, claiming that to take quick, decisive and coordinated ac- essence to improve decisively the resil- the new system “must not be based on a tion at short notice.” But “the crisis also ience of the global financial system,” and single currency or even multiple national showed that gaps in the system of global concluded by saying, “The crisis has driv- currencies but instead, should permit the governance — in terms of both efficiency en an historic change in the framework of emission of international liquidity — such and legitimacy — have to be filled,” he ex- global governance. In my view this trans- as [Special Drawing Rights] — to create plained, pointing out that the process was formation was overdue.” And indeed, the a more stable global financial system.” already ongoing. economic crisis has given a major boost to SDRs are “assets” issued by the IMF with “Overall, the system is moving deci- advocates of a world financial and mon- a value currently based on multiple na- sively towards genuine global governance etary regime. tional fiat currencies. that is much more inclusive,” Trichet said. Late last year, another UN report from “The significant transformation of global Global institutions a different arm of the institution offered governance that we are engineering today With the onset of the global financial cri- similar analyses and suggestions. “In the is illustrated by three examples. First, sis, which interestingly enough was large- discussion about necessary reforms of the emergence of the G20 as the prime ly brought on by an asset bubble caused the international monetary and financial group for global economic governance at via currency manipulation by the United system, the problem of the United States dollar serving as the main international reserve asset has received renewed atten- international monetary Fund tion,” said the report, published by the UN boss Dominique Strauss-Kahn, Conference on Trade and Development. an admitted socialist, is one of The paper also pointed to SDRs as the po- the most well-known advocates tential international reserve currency. of a global fiat currency issued Earlier in 2009, another UN panel by the institution he leads. also called for talks on setting up a new international monetary system and mov- ing away from the dollar. And the calls are only becoming more frequent and re- spected as time goes on. Then there is the International Mon- etary Fund, a likely candidate for the po- sition of global central banker, which in some ways has already taken on the role. Like other figures within the organization, IMF boss Dominique Strauss-Kahn — an avowed socialist — has repeatedly called for global regulation and a world currency controlled by the “Fund.” AP Images 12 THE NEW AMERICAN • SEpTEMbER 27, 2010
  • 12. AP Images “One day, the fund might even be called upon to provide a globally issued reserve asset, similar to — but in impor- tant respects different from — the SDR,” he explained in a speech earlier this year, saying it would be “intellectually healthy to explore” the creation of a new IMF- backed world reserve currency before it is “needed.” A few months later, he told the High-Level Conference on the Interna- tional Monetary System that “crisis is an opportunity” and “a new global currency issued by a global central bank, with ro- bust governance and institutional features, could provide a nominal anchor and risk- free asset for the system.” And it’s not just Strauss-Kahn. In a barely noticed paper published in April of this year, the Fund went even further than President of the European central bank Jean-Claude Trichet is one of the primary the UN or Strauss-Kahn. It outlined the engineers of the emerging global-governance structure and an important coordinator of future global fiat currency, to be run by a global monetary policy. transformed and newly empowered IMF. The paper, published by the IMF’s ing one in West Africa, another in Central eign Relations’ magazine Foreign Affairs Strategy, Policy, and Review Department Africa, and a group of countries that use entitled “The End of National Currency” and entitled “Reserve Accumulation and the South African Rand. A plan to intro- offered some insight into the strategy International Monetary Stability,” offers duce a continental currency — sometimes being pursued. Benn Steil, the powerful very specific proposals which — not sur- referred to as the “afro” — controlled by group’s director of international econom- prisingly — would involve handing it mas- the already existing African Union’s Af- ics, suggests a very specific proposal: sive new powers over the global economy rican Central Bank is set for completion “Governments should replace national and “making the special drawing right in less than two decades. In Asia, calls currencies with the dollar or the euro or, (SDR) the principal reserve asset in the for a regional monetary union are grow- in the case of Asia, collaborate to produce [International Monetary System].” And ing stronger. Arabian nations, through the a new multinational currency over a com- this is merely the short-term policy; the Gulf Cooperation Council, are planning parably large and economically diversified IMF wants to go further, with the creation their own common currency right now. area.... Most of the world’s smaller and of a global currency called the bancor. In closer proximity to the United States, poorer countries would clearly be best off Of course, even the IMF says its a group of Caribbean nations formed the unilaterally adopting the dollar or the euro, schemes will not likely come about quick- Eastern Caribbean Currency Union. All which would enable their safe and rapid ly or easily. “It is understood that some of use the East Caribbean dollar. More re- integration into global financial markets. the ideas discussed are unlikely to mate- cently, a number of leftist Latin Ameri- Latin American countries should dollar- rialize in the foreseeable future absent a can regimes created the SUCRE under ize; eastern European countries and Tur- dramatic shift in appetite for international the leadership of socialist despot Hugo key, euroize.” cooperation,” it says in the report. Some Chavez. And a South American currency And that is precisely the argument of analysts have suggested a war with Iran or is currently in the works. Significant num- the most prominent global currency en- a crash of China’s economy could trigger bers of nations have also unilaterally aban- thusiasts. Columbia economics Professor such a shift. doned their own currencies and switched Robert Mundell, who could not be reached to the dollar, such as Ecuador and El Sal- by press time, is one of them. He is a No- Trend Toward monetary Unions vador. In Europe, while not officially join- bel-prize winner, a key advisor to the com- Monetary unions, where a collection of ing the Eurozone, numerous small coun- munist Chinese regime, and also known national governments surrender their tries have also switched to the euro. And as the “father” of the euro. And he argues power over money to international institu- this is exactly what many proponents of that the world should move toward a new tions, are popping up around the world. In a global fiat currency are promoting as a global currency system called the “DEY” recent decades, there has been a declining means to that end. Once there are fewer — a “basket” of dollars, euros, and yen number of currencies as more countries currencies and the principal of suprana- controlled and issued by a global central abandon their own currencies to use a tional currency is established, such as has bank, possibly a newly empowered IMF. multinational currency, such as the euro. already occurred with the euro, it becomes Eventually, the architecture would lead to Africa already contains a patchwork of easier to simply merge them. a truly global fiat currency. regional supranational currencies, includ- A 2007 article for the Council on For- “My approach is rather to start out with Call 1-800-727-TRUE to subscribe today! 13
  • 13. GLobaL Economy possible routes. One is to con- the IMF is acting like a central bank be- tinue the current regionaliza- cause it’s leveraging its balance sheet,” he At recent G20 confabs, the centralization tion of currencies, to include told The New AmericAN, saying SDRs of the world’s monetary system has North America, and creation, could replace the dollar and become the expansion and merger of international reserve currency in two to indeed been a hot topic. Headlines monetary unions; and then five years. And it’s already going on. “In around the world announced the imminent combine those currencies into terms of paper currency, a leveraged bal- arrival of a “new world order,” a global one. Another is for smaller ance sheet, and the creation of liquidity countries to continue to ‘ize’ out of thin air, the IMF is clearly the way currency, a world central bank, and a their nations’ legal tender, as they’re going because, as I said, they’ve planetary monetary-policy regime. in ‘dollarize’ and ‘euroize.’ already done it.... It’s not speculation, it’s … Once the ‘tipping point’ is actually happening,” he said, noting that reached where one currency the shift away from dollars has already arrangements for stabilizing exchange supports approximately 40-50 percent of started and would accelerate. rates, and move from there to a global the world’s GDP, the movement will accel- The IMF has indeed taken some ex- currency. It would start off from the situa- erate to anoint that currency as the single traordinary steps recently. Last year, for tion as it is at present and gradually move global currency.” The organization’s target example, for the first time in the Fund’s it toward the desired solution. We could date: 2024. history, it issued bonds denominated in start off with the three big currencies in the Clearly, the move toward regional cur- SDRs. The Chinese regime promptly gob- world, the dollar, euro, and yen, and with rencies is picking up traction, especially bled up $50 billion worth, with the IMF specified weights, make a basket of them during this decade. saying in a statement that the sale “offers into a unit that could be called the DEY,” China a safe investment instrument” and Mundell explained in a 2005 speech called Already Emerging that it was part of a broader plan to “boost “The case for a world currency.” “The Some argue that the global central bank the Fund’s capacity to help its membership DEY could then become the platform on and all that it entails are already taking — particularly the developing and emerg- which to build a global currency, which I solid form or, worse, already here. ing market countries — weather the global shall call the INTOR.” “What the IMF is doing is, they’ve financial crisis, and facilitate an early re- His “basic plan” for the world currency positioned themselves and are actually covery of the global economy.” And of would be implemented in three stages, he beginning the process of issuing debt for course, there’s still more. said. First, stabilization of exchange rates. the first time,” explained James Rickards, “The other thing the IMF has done — not Next, a monetary union under the DEY senior managing director for market intel- for the first time, really for the second time, consisting of most of the world’s econo- ligence and co-head of threat finance and but the first time in quite a large size — is my. And finally, the creation of the INTOR. market intelligence at Omnis, a leading to issue SDRs,” explained Rickards. “The While Mundell acknowledged that it might consulting firm. “So what that means is IMF is issuing its own paper currency,” and, be difficult, he expressed optimism about the currency’s prospects, saying, “The next big crisis might be the occasion for a re- convening of a Bretton Woods type confer- ence to establish the conditions for a new international monetary system.” With the United States looking at a likely second round of economic turmoil and its dollar becoming increasingly unstable as interest payments on the national debt take up an ever larger part of all taxes collected, such a “crisis” is probably closer than Ameri- cans would like to imagine. Other prominent advocates agree with the Mundell strategy for achieving a world currency managed by a global central bank. “We’ll probably get there by the merger of monetary unions,” explained Morrison Bonpasse, founder and president of the Sin- gle Global Currency Association and author of The Single Global Currency: Common AP Images Cents for the World, in an interview with Finance Ministers and central bank bosses pose at the International Monetary Fund, the most The New AmericAN. “But there are several likely candidate to become a world central bank. In many ways, it has already taken on the role. 14 THE NEW AMERICAN • SEpTEMbER 27, 2010
  • 14. like all fiat currencies, it’s backed by noth- ing, Rickards said. “I view all of these as pilot programs. In other words, they’re kind of testing the plumbing.... Now the IMF is positioned to — in effect, and I think this is the plan — to become a global central bank which can issue its own currency called SDRs, leverage its balance sheet through borrowing, and then create assets by making loans and investing in securities, all under the auspices of the IMF executive committee, which is basically the same set of people as the G20.” The mainstream media in the U.S. and around the world have been busily preparing At recent G20 confabs, the centraliza- humanity for the supposedly imminent and proper emergence of a global monetary regime. tion of the world’s monetary system has indeed been a hot topic. Headlines around the world announced — boldly and with A decade later, the New York Times took transformation into a bank of the world. good cause — the imminent arrival of a up the issue with a piece from prominent “Bowing to a new economic world order, “new world order,” a global currency, a CFR insider and global central bank pro- the IMF would grant fresh powers to the world central bank, and a planetary mon- moter Jeffrey Garten calling for a “global likes of China, India and Brazil. It would etary-policy regime. The early 2009 G20 Fed.” After praising the development of have vastly expanded authority to act as declaration, for example, said, “We have various unconstitutional institutions in a global banker to governments rich and agreed to support a general SDR alloca- the United States, most notably the Fed- poor,” wrote Post staff writer Anthony Faio- tion which will inject $250 billion into eral Reserve, Garten wrote, “The world la. “And with more flexibility to effectively the world economy and increase global needs an institution that has a hand on the print its own money, it would have the abil- liquidity.” In simpler terms, printing inter- economic rudder when the seas become ity to inject liquidity into global markets in national fiat money. stormy. It needs a global central bank.” a way once limited to major central banks.” Now, the regulatory regime is going Ten years after that, Garten penned a The article also mentioned “the IMF’s global, too. And fast. The same G20 piece for the Financial Times, once again transformation into a veritable United Na- meeting also led to the Financial Stabil- advocating “the establishment of a Global tions for the global economy” and quoted ity Forum being transformed into the Fi- Monetary Authority.” various experts praising the developments. nancial Stability Board, usurping financial In a 2008 Newsweek article entitled Even the supposedly more free-market- regulatory authority traditionally held by “We Need a Bank of the World,” Garten friendly press in the United States has also national central banks around the world. claimed, “The financial crisis is global, backed the scheme. “World money, with The new “board” is rapidly becoming a and only an international central bank can a world central bank, seems a next logi- global financial regulator as its mandate deal with it.” The piece called for world cal step,” wrote Wall Street Journal editor expands to include overseeing action to leaders to “begin laying the groundwork emeritus Robert Bartley in a 2003 opinion address vulnerabilities in the financial for establishing a global central bank” be- piece for the newspaper. “A world money system, setting guidelines, and even man- cause “the Fed no longer has the capability would be an extraordinary boon to inter- aging “contingency planning for cross- to lead singlehandedly.” national stability.” He was writing from border crisis management.” The year after that article, Garten was at Mundell’s monetary conference at his it again, this time in Businessweek. “If crit- castle in Italy. media Support ics could suspend the hyperventilating for The world elite is on a mission. Its plan No strategy for dramatic, unpopular a few minutes, they’d realize a global cen- to impose a global fiat monetary regime on change would be complete without a pub- tral bank is becoming a necessity in today’s humanity is well under way. And if serious lic media campaign. So, of course, among complex, interconnected world economy,” resistance is not mounted soon, the new the prominent voices throwing their he wrote. The piece also cites Tim “Tur- world monetary order could be just around weight behind a global fiat currency and boTax” Geithner, who said, “We need a the corner. n a global central bank are some of the most common global solu- influential media outlets in the world. Al- tion to these markets, ready in 1988, The Economist wrote an article predicting a global currency within not separate regional solutions.” EXTra coPiES availablE 30 years, saying, “This means a big loss of Meanwhile, the ➧ Additional copies of this issue of the economic sovereignty, but the trends that Washington Post ran new AmericAn are available at quantity- make the [new hypothetical global cur- a 2009 story prais- discount prices. To place your order, visit rency] so appealing are taking that sover- ing the International www.shopjbs.org or see the card between eignty away in any case.” Monetary Fund’s pages 34-35. www.TheNewAmerican.com 15
  • 15. GLobaL Economy The dangers of money printing at the national level are bad enough, as evidenced by Zimbabwe, where the “money” eventually became totally worthless. through direct taxation. And of course, the fact that all federal reserve notes enter the economy as debt with interest attached (but never created) has led to a situation where it is literally mathemati- cally impossible to pay off the debt. In sum, the consequences of such a system have been disastrous for average Ameri- cans — hence the growing calls to audit and even end the Fed. But now, imagine such a system at the global level. And it isn’t just a mental ex- ercise; the global central bank is already emerging. As bad as the Fed has been for America — and indeed the world — a similar system at the international level would be far worse. Disaster might even be an understatement. international liquidity and inflation One of the most serious threats posed by a global central bank and world fiat currency is the fact that it would allow the emerging planetary regime to print AP Images its own money and finance its activities independently. That means wealth could be secretly siphoned away from all of hu- The Emerging manity to pay for armies, tax collectors, courts, bureaucracies, law enforcement, wealth redistribution, propaganda, and Global Fed much more. With no limits. But to advo- cates of such a system, that is one of its primary benefits. “A super-sovereign reserve currency not only eliminates the inherent risks of credit-based sovereign currency, but also Many of the world’s financial elites are excitedly pushing makes it possible to manage global liquid- ity. A super-sovereign reserve currency for a world fiat currency, but such a system would create managed by a global institution could be problems that would make our present ones seem tame. used to both create and control the global liquidity,” wrote Chinese central-bank boss Zhou Xiaochuan in his public paper by Alex Newman place of the market and causing massive calling for a world currency. “The central- malinvestment and generally an improper ized management of its member countries’ T he Federal Reserve has been a and unproductive allocation of resources. reserves by the Fund will be an effective nightmare for the American peo- The Fed also causes the boom-and-bust measure to promote a greater role of the ple. It inflates the money supply, cycle through its manipulations of the SDR [Special Drawing Rights, the Inter- thereby devaluing already-existing money currency and credit supply. It serves as national Monetary Fund’s first effort at a and placing a massive hidden tax on the the government’s partner in perpetually world currency] as a reserve currency.” Of people via rising prices. It also uses its expanding the “welfare-warfare state,” course, communists have always support- monopoly power to cause interest rates allowing the state to spend far more than ed control of “liquidity” (Karl Marx was to go up or down, usurping the rightful it could ever hope to reasonably raise a strong advocate of central banks with a Call 1-800-727-TRUE to subscribe today! 17
  • 16. GLobaL Economy monopoly on currency and credit). But to the needs of countries.” It then promotes ment to supply its own money would free people who care about freedom and pros- worldwide central planning to “stabilize it from the constraints of having to raise perity, the communists’ support should be global output growth” by issuing more money through national contributions a huge red flag. SDRs or retiring them as the emerging or direct international taxation. But of The United Nations has also backed global government deems necessary. As course, printing all of this new “liquidity” global currency proposals for the same it stands, wealth redistribution around the and financing all of its ambitious projects reason. In a report earlier this year calling world is bad enough. Surrendering that would be inflationary by definition. And for the end of the dollar’s status as a re- power to a global institution would be a this inevitably would represent a massive serve currency and a new monetary regime nightmare. problem. controlled by the International Monetary In its report published earlier this year, Even John Maynard Keynes, the origi- Fund, the UN’s World Economic and So- the IMF also recently came out in favor nal proponent of the world currency called cial Survey for 2010 points out that, “Such of allowing it to print its own money to “bancor,” understood the concept well. In emissions of international liquidity could provide “international liquidity.” “A global 1919, he wrote in his book The Economic also underpin the financing of investment currency, bancor, issued by a global central Consequences of the Peace, “By a con- in long-term sustainable development.” bank would be designed as a stable store tinuous process of inflation, governments The term “sustainable development” — of value that is not tied exclusively to the can confiscate, secretly and unobserved, especially when used by the UN — is often conditions of any particular economy,” the an important part of the wealth of their used to refer to stronger central planning, paper says. “The global central bank could citizens.” population reduction, more land in gov- serve as a lender of last resort, providing To understand the effects, one can look ernment hands, and other ideas repugnant needed systemic liquidity in the event of to history and examine examples such as to average Americans and the U.S. Con- adverse shocks and more automatically what occurred in the Weimar Republic of stitution. Other schemes for “international than at present.” In laymen’s terms, the Germany, where the money supply was liquidity” could be even worse. IMF, with its power to “emit liquidity” inflated to such an extent, to finance gov- Hiding behind the passive voice, a sepa- out of thin air, would be empowered to ernment spending and war debt, that Ger- rate report by the UN Conference on Trade “bail out” companies, governments, and mans actually found their money more and Development adds in the concept of whomever it wished. If you thought the valuable to burn as fuel than to use to wealth redistribution: “It has been sug- Fed handing out trillions of dollars to the purchase items. Or, in more recent years, gested that in order for the SDR to become big banks and other insiders was bad, just the tragedy of hyperinflation in Zimba- the main form of international liquidity wait until a global central bank exercises bwe, where inflation exceeded millions and means of reserve holding, new SDR that power. of percent per year and it could cost a allocations should be made according to Allowing the emerging global govern- person billions of dollars for a loaf of bread, provides a more current warning. Even in America — with a comparably stable currency up until now — inflation has wreaked havoc on the economy and the lives of citizens, as we have become a country where mothers and fathers must both work to make ends meet. And these all happened in a world where there was still a check on unlimited inflation of fiat money — the fact that citizens could quit using it and purchase other curren- cies that were not losing their value as quickly. But under a global fiat monetary regime, there would be no such option. Economists who have been proven cor- rect over the decades about the economic consequences of creating money out of thin air are already sounding the alarm. “A world paper currency and world central bank would heighten the moral hazard and lead to a global inflationary regime such as AP Images we’ve never seen,” noted Lew Rockwell, the chairman of the Ludwig von Mises out-of-control money creation in the United States is leading to a loss of purchasing power that Institute. That is, the “easy” money and could eventually destroy the dollar’s position as the world reserve currency, ultimately leading to credit would cause people to borrow and a truly global fiat currency. spend way beyond their means, creating 18 THE NEW AMERICAN • SEpTEMbER 27, 2010
  • 17. AP Images The euro, the world’s most prominent regional currency, provides an obvious example of what would happen under a global currency — calls for closer political and economic integration among nations. an unprecedented global bubble that would at some point inevitably burst. “There would be no escape from political control at that point.” And the consequences would be dire. “Inflation tears apart the whole fabric of stable economic relationships,” explained the legendary free-market economist Henry Hazlitt. “It leads men to demand totalitarian controls. It ends invariably in bitter disillusion and collapse.” closer integration and Total control Existing monetary unions are often seen complement the existing framework to en- week, “Among their many charges, critics as the model for a global currency by ad- sure fiscal sustainability in the euro zone will protest the establishment of ‘world vocates of such a system. But surrendering and enhance its capacity to act in times of government.’ But we have a World Trade control over money to supranational insti- crises.” Organization with legally binding pow- tutions has consequences, as the people Around the same time, IMF boss Dom- ers over trade disputes. We have a World of the Eurozone are discovering. For one, inique Strauss-Kahn joined the calls for Health Organization for communicable according to data compiled by the Euro- deeper integration in Europe, offering IMF disease with the ability to quarantine en- pean Central Bank, economic growth has funds with strings attached. “The launch- tire countries. And a World Court func- slowed dramatically in countries using the ing of the euro was only a first step,” he tions today that has considerable legal and euro since the introduction of that single explained. “You can’t have a single cur- moral clout.” Dismissing critics protesting currency — a phenomenon not observed rency without having a more coordinated the establishment of a world government in other areas of the world. economic policy.” And indeed, such eco- by pointing out that it already exists in ru- But more importantly, the goal of keep- nomic control will also lead to more politi- dimentary form is hardly likely to pacify ing the monetary union intact is leading cal control — just as we have seen with the those critics. to ever greater fiscal and political integra- transformation of the European Common But what would a global currency re- tion as rules are harmonized and author- Market into the European Union. ally mean aside from the destruction of the ity continues shifting from nations toward Obviously, if the euro is the model for dollar and the U.S. economy? “A global European institutions. During the height a world currency, the same phenomenon central bank would be a disaster,” financial of the crisis in Greece, other European would occur at the world level. That would guru Bob Chapman, editor of the Interna- governments were forced to bail out the mean closer integration among the nations tional Forecaster, told the new Ameri- Greek regime over fears that it could bring of the world, the vast majority of which cAn. “It means the acceptance of world down the euro. But on top of that, Euro- are ruled by totalitarian regimes of vari- slavery.” Chapman also pointed out that zone heads of state and government got ous varieties. A world fiat currency, then, the present international monetary system together and used the crisis as an excuse would be the surest way to accelerate the was being deliberately destroyed precisely for pushing deeper integration and the im- development of a true global government to bring about a global currency like the position of “economic governance” at the and the accompanying de- European level. struction of national sover- “We commit to promote a strong coor- eignty. But to planetary cur- A world fiat currency would allow the dination of economic policies in Europe. rency enthusiasts, that is a We consider that the European Council non-issue. emerging planetary regime to print its must improve the economic governance Noting that there would own money and finance its activities of the European Union and we propose be critics of the development to increase its role in economic coordina- of a world central bank, es- independently. That means wealth tion and the definition of the European pecially in America, Council could be secretly siphoned away from Union growth strategy,” announced the on Foreign Relations insider all of humanity to pay for armies, tax euro-area heads of state and government and global fiat currency pro- in a statement. “The current situation moter Jeffrey Garten points collectors, courts, bureaucracies, etc. demonstrates the need to strengthen and out in an article for News- www.TheNewAmerican.com 19
  • 18. GLobaL Economy bancor. “It’s just not fiscal and monetary policy. It is every facet of your life that these elitists want to control.” And they’re moving fast toward that goal. In addition to printing money, the emerging global central bank and its affili- ates are already usurping other powers tra- ditionally exercised at the national level. In his Newsweek article, Garten calls for the new planetary central bank to be the “lead regulator” of all sorts of financial institu- tions, monitor risks, push national authori- ties to “modify their policies,” coordinate national “stimulus programs,” orchestrate a “global-stimulus plan,” force taxpayers around the world to bail out companies, AP Images and even act as a bankruptcy court. The IMF, in its own report, called for global “imbalance” taxes, capital controls, and a Gold and silver coins have traditionally been considered a sort of global currency because they true world financial regulatory regime. A have inherent value that cannot be secretly confiscated by authorities. lot of that is already coming into being, but as the new monetary order develops, their situation by trading. Money is not paper SDR?” What’s missing right now, the agenda will only accelerate. an invention of government,” explained he said, is just the political will to do it. And as if all that wasn’t bad enough, James Turk, founder of GoldMoney, a “What you’re going to see over the next there is no accountability for this newly company holding over a billion dollars in few years is a global struggle between the empowered IMF. Jim Rickards, the director assets that allows customers to purchase, forces who want to create new forms of of market intelligence for Omnis, explained store, and trade precious metals. “There is paper and just give it a different name and that, while the IMF has articles of associa- a better solution. It was the one created by a different issuer and continue to flood tion and some governance rules, the true Sir Isaac Newton and given to King Wil- the world with paper liquidity and keep power structure behind it is the G20, which liam III. We now call it the classical gold the game going on the one hand, versus is “completely unaccountable.” standard, which lasted from circa 1700 people who will recognize that the only to 1914. If governments are to issue cur- true form of money is gold and will start options, Solutions rency, it must be tied to gold. It is this link bidding up the price of gold against the As the international monetary crisis un- that provides essential discipline needed dollar,” Rickards predicted. folds with a collapsing dollar, there will to rein in the aspirations of politicians to John McManus, president of The John need to be some sort of reforms. The ques- spend money, even money the government Birch Society, has a similar view of how to tion is which ones. Instead of “currency doesn’t have,” he told the new Ameri- rectify the current situation without mov- reform” coming “from the marble palaces cAn, adding that the bankers pushing for ing toward an international central bank of the monetary elites,” economist Lew a world fiat currency “will do everything to manage a global fiat currency. “If the Rockwell of the Mises Institute points they can to continue this special privilege currency is a commodity like gold or sil- out, “private currencies traders the world that they have assumed for themselves.” ver, it does not have to be managed. The over could, on their own, give rise to a Omnis’ Rickards also has some ideas free market place will manage it,” he ex- new currency rooted in gold and traded by about how America can put a freeze on plains in Dollars and Sense, a short video means of digital media.” This would be far the emergence of the global paper cur- presentation on the monetary system. superior for numerous reasons, he argues. rency: cuts in taxes and spending; higher “Money should be a commodity valuable “Under a gold standard, the physical metal interest rates to strengthen the dollar; to all people; and there’s no management is the limit and the market is the master. and, eventually, getting back on the gold needed.” Under a global paper system, the paper standard. “The U.S. is in the best posi- It is ironic that the likely imminent provides no limit whatsoever and the poli- tion to go back to the gold standard,” collapse of the world’s current fiat “re- ticians are the masters.” he explained, pointing out that, with an serve currency” is being used as excuse And indeed, while the elite pushes its estimated 8,000 tons, America has more to implement a global fiat currency. But it fiat world currency, entrepreneurs have gold than any other country. “The first is extremely serious. Escaping the elites’ already been working on making gold a country that goes to the gold standard clutches would become almost impossible sort of currency without the need for gov- will — in effect — dominate the world as wealth is steadily transferred from hu- ernment dictates. “Money was invented in of finance because they will have the manity to the banking oligarchy and its pre-history by people interacting peace- currency that everybody wants.... Would ever-expanding global government. And fully with one another to help improve you rather have a gold-backed dollar or a so the scheme must be prevented. n 20 THE NEW AMERICAN • SEpTEMbER 27, 2010
  • 19. HEaLtHcarE The FDa: Neither Safe nor Effective The dictates of the FDA are so ingrained in society that we seldom question whether they save lives. In actuality, studies show that FDA rules lead to increased deaths. that “FDA regulation of the medical indus- try has suppressed and delayed new drugs and devices, and has increased costs, with a net result of morbidity and mortality.” They do not, however, place the major- ity of the blame on the FDA itself but rath- er on the legislation that created the FDA and has steadily expanded its duties and powers. The FDA’s initial responsibilities were small and relatively innocuous; as Congress has piled more mandates onto the agency, its delays have increased and its effectiveness has decreased. The Evolution of regulation Klein and Tabarrok begin their study with a detailed overview of the history of feder- al drug regulation. They write that “before the twentieth century there was no direct federal regulation of drugs or other con- sumer products,” yet somehow Americans managed to survive and prosper just the same. While it’s true that the pharmaceutical industry was also relatively small prior to AP Images 1900, with most drugs being mixed by hand at local pharmacies, pharmacists and doc- Public awareness: In 2010, the Johnson & Johnson Company voluntarily recalled multiple lots tors had already undertaken to improve the of Tylenol and other medications because of complaints of a musty, moldy odor in some Tylenol safety and quality of the drugs being sold to products and inexact ingredient amounts, causing consumers to shop elsewhere. consumers. For example, in 1820 the U.S. Pharmacopoeia was created. “A private, by Michael Tennant before they could sell them; henceforth, voluntary undertaking of physicians, phar- Americans could be certain that no drugs macists and colleges of pharmacy, the USP O nce upon a time, so the story would ever harm them again. presented a formulary of compositions and goes, the American pharmaceu- Would that it were so simple. In fact, listed chemical compounds, crude drugs, tical industry was a “wild West” say economists Daniel B. Klein, Ph.D., fixed oils, and other substances typically in which greedy, unscrupulous snake-oil and Alexander Tabarrok, Ph.D., not only is kept by a pharmacist,” explain the authors. salesmen preyed on unsuspecting citizens. the back story in that familiar yarn sorely “Later the USP listed tests for determin- Average Americans, in the same tale, were lacking an historical basis, but the very ing purity. Leading pharmacists regularly incapable of sifting through the claims of idea that federal premarket approval of revised the USP as new and better drugs, drug purveyors and of determining which drugs is beneficial is also greatly in doubt. compositions, and tests were discovered drugs were both safe and effective, and Klein and Tabarrok are the authors of and created.” The American Medical Asso- thus were suffering and dying in droves an Independent Institute project called ciation and the American Pharmaceutical at the hands of these conniving profiteers. FDAReview.org that examines the ques- Association were formed; the latter began The happy ending to the story is that the tion “Is the FDA safe and effective?” The publishing the National Formulary, whose federal government, in response to pub- two men conclude that it is neither, writing function is “to provide standards for drugs lic outcries for salvation, stepped in and that “FDA control over drugs and devices omitted from the USP and to serve as a forced all drug manufacturers to prove has large and often overlooked costs that proving ground for drugs eventually trans- their products were safe and effective almost certainly exceed the benefits” and ferred to the USP,” in 1888. In short, long Call 1-800-727-TRUE to subscribe today! 21
  • 20. HEaLtHcarE Savings: Multiple studies put the cost of developing a single new drug at $800 million. Significant drug savings could nying regulations just kept coming. Nearly be had if premarket testing could be done through private all of the laws expanded the FDA’s mis- companies. Consumers’ protection would derive from sion, most especially the 1962 Kefauver- lawsuits if drugmakers lie about a drug’s dangers. Harris Amendments (passed in the wake of the thalidomide tragedy), which autho- rized the FDA to require proof of efficacy for all new drugs before they could go to market. A few attempted to rectify some of the unintended consequences of earlier legislation. The resulting centralization of decision-making for the pharmaceuti- cal and medical-device industries reduced patients’ and doctors’ choices and greatly delayed the bringing of new products to market. regulatory Harm Klein and Tabarrok spend a significant AP Images amount of time going into detail about the harm that the FDA’s approval process before the FDA was even a gleam in Uncle for the tests to make such determinations,” visits on ailing Americans. They point out Sam’s eye, the pharmaceutical industry was according to Klein and Tabarrok. It also that there are at least two negative effects regulating itself. prohibited “misbranding” of drugs, de- of the extensive testing the FDA requires: Klein and Tabarrok point out that crises fined as failing to indicate the quantity or have played a large part in Washington’s proportion of certain potentially danger- First, it delays the arrival of superior increasing control over the pharmaceuti- ous or addictive drugs. drugs. During the delay, some people cal industry. The very first significant fed- Klein and Tabarrok thus conclude: “For who would have lived end up dying. eral drug regulation, the Biologics Act of consumers, the main result of the 1906 Second, additional testing require- 1902, was passed in the wake of a vaccine law was not to restrict choices but to pro- ments raise the costs of bringing a contamination scare. The act, write the vide more information.... Because the feds new drug to market; hence, many economists, “required that federal govern- could not wield coercive premarket power, drugs that would have been devel- ment grant premarket approval for every the Chemistry Bureau and industry trusted oped are not, and all the people who biological drug and for the process and fa- each other and cooperated to improve drug would have been helped, even saved, cility producing such drugs. Never before manufacturing.” are not. had such premarket control existed in the The regulatory duties of the Chemistry In addition, because FDA approval United States.” Bureau having been transferred to the Food is mandatory, industry and medicine Four years later the Pure Food and Drugs and Drug Administration by 1930, the next must heed FDA standards regard- Act was passed, again as a result of a crisis step was to increase the FDA’s power even less of their relevance, efficiency, mentality, though this time the crisis was further. Since, as Klein and Tabarrok note, and appropriateness. Not all testing largely imagined. Between muckraking “the Constitution does not give the federal is equally beneficial. The FDA appa- journalism (for example, Upton Sinclair’s government any power to regulate drugs,” ratus mandates testing that, in some The Jungle) and the publicity stunts of the Food, Drug, and Cosmetic Act of 1938 cases, is not useful or not appropri- federal Bureau of Chemistry Chief Harvey abused the interstate commerce clause to ately designed. The case against the Washington Wiley (who had a tendency to permit federal regulation of drugs. The law FDA is not that premarket testing is seek federal regulations to benefit his cro- required manufacturers to file a New Drug unnecessary but that the costs and nies in the business world), the public was Application (NDA) with the FDA for each benefits of premarket testing would led to believe that they were in grave dan- new drug they wanted to bring to market, be better evaluated and the trade-offs ger of contaminated food and drugs. after which it was up to the FDA either better navigated in a voluntary, com- The resulting law still did not give the to approve or to deny the application, al- petitive system of drug development. federal government the power to prevent though, say the authors, “the default posi- drugs (other than biological drugs as tion was approval … and as a result the As mentioned above, the Kefauver-Harris provided for in the 1902 law) from com- costs of the FDA to the public were kept Amendments of 1962 were something of ing to market. In fact, it largely affirmed low.” In addition, the law “had the effect of a watershed in the history of federal drug the industry’s self-policing, recognizing creating a new class of prescription-only regulation. Now drug companies had to the “U.S. Pharmacopoeia and National drugs” and “expanded the FDA’s powers prove not only that their products were Formulary as official standards for the over medical devices.” safe but also that they were effective. strength, quality, and purity of drugs and After that the mandates and accompa- Yet both safety and efficacy vary with 22 THE NEW AMERICAN • SEpTEMbER 27, 2010
  • 21. the individual patient and his circum- many more drugs would stances. A drug to treat one ailment may have been introduced each A person who is suffering from a terminal be safe for an otherwise healthy person year than actually were. In but could be deadly for someone who is fact, write Klein and Tabar- illness may be willing to bear the risk of already suffering a variety of other mala- rok, “the average number of a drug the FDA deems unsafe in hopes of dies. Furthermore, a person who is suffer- new drugs introduced pre- ing from a terminal illness may be willing 1962 (forty) was also much curing his illness or at least improving the to bear the risk of a drug the FDA deems larger than the post-1962 quality of his remaining life. unsafe in hopes of curing his illness or at average (sixteen).” Thus, least improving the quality of his remain- they conclude that “the 1962 ing life. Efficacy, too, comes down to an Amendments caused a significant drop in alone to be in the hundreds of thousands.” individual situation. Some drugs work on the introduction of new drugs.” Meanwhile, the extra time required for ap- some people and not on others, while oth- Furthermore, because the costs of FDA proval by the U.S. government versus Eu- ers, perhaps not as efficacious as the FDA regulations are the same regardless of ropean governments, known as drug lag, deems necessary for approval, are suffi- whether a drug is intended to treat a com- has resulted in “hundreds of thousands” of ciently helpful to some individuals (or at mon ailment or a rare one, say the econo- deaths over the years. Therefore, they say, least better than no treatment at all). mists, “millions of Americans have few the “conclusion is clear: the FDA is respon- The authors cite a 1973 study by Sam or no therapies available to treat their dis- sible for more lives lost than lives saved.” Peltzman to demonstrate that the Kefau- eases because of increased costs of drug They also take on the issue of “off- ver-Harris Amendments have done little development brought about by stringent label” uses of drugs, i.e., prescribing a good and much harm. Peltzman developed FDA ‘safety and efficacy’ requirements.” drug for uses other than those for which a model that forecast the annual number Although Congress tried to remedy this the FDA approved it. These off-label uses of new drug introductions both pre- and situation with still more tinkering with the are discovered through private-sector test- post-1962. The model worked beautifully system via the Orphan Drug Act of 1983, ing, research, publications, and so on, pre-1962, tracking the actual number of the good doctors suggest that it would not through the centralized FDA process. new drug introductions quite accurately. even “be better to reduce or eliminate Nevertheless, doctors and patients are However, once the 1962 amendments FDA regulations for all drugs and patient more than willing to make use of these went into practice, the model, using the populations.” non-FDA-approved treatments. Thus, the same criteria that had succeeded prior Klein and Tabarrok attempt to quan- authors conclude that the “off-label mar- to 1962, consistently predicted a much tify the number of lives lost owing to FDA ket … provides a good idea of the benefits higher number of new drug introductions delays and the reduction in new drug in- to be had from reducing FDA control over than actually occurred. It can be inferred troductions. They write that “Gieringer approval decisions.” Moreover, they add: that, in the absence of Kefauver-Harris, (1985) estimates the loss of life from delay “Efficacy requirements should be dropped altogether!” These fellows don’t mince AP Images words. They are similarly direct in summariz- ing their findings with regard to the harm caused by FDA regulations, saying, “All the systematic evidence goes against the coercive FDA apparatus.” One might at this point ask why it takes the FDA so long to approve new drugs. The obvious answer is simple bureau- cratic inertia, and that certainly explains some of it. However, the larger reason is that approving a drug that is later found to be unsafe leads to bad publicity for the agency, while failing to approve (or delay- ing approval of) a valuable drug generates no such news. After all, few people outside the FDA will know if a worthwhile new drug is delayed or never sees the light of day, but everyone will find out if an FDA- approved drug causes illnesses or deaths. FDa approval: Celebrex and Vioxx were almost pulled from the market because their use increases As a result, the tendency among regulators the risks of serious complications — such as heart attacks and strokes. The FDA’s approval gave is always to err greatly on the side of cau- consumers a false impression that the drugs were at least as safe as their competitors. tion. The authors quote an anecdote from www.TheNewAmerican.com 23
  • 22. HEaLtHcarE to understand accurate drug ill patients and their doctors the option labels and should therefore to choose riskier treatments and protects The extra time required for approval by defer to the received wisdom drug companies from subsequent lawsuits. the U.S. government versus European of their physicians and the A third recommendation is to adopt FDA. Furthermore, the econ- Henry Miller’s proposal, to wit: Nongov- governments, known as drug lag, has omists recommend a “split- ernmental drug-certifying entities would resulted in “hundreds of thousands” of label regime” whereby “the compete in the free market for hire by deaths over the years. The “conclusion product label would consist pharmaceutical companies to oversee drug of a part for FDA-approved development and testing. If the hired body is clear: the FDA is responsible for more health and nutrition claims certified a new drug, the certifier and the lives lost than lives saved.” and a part for ‘Not FDA drug company would together present the Approved’ claims.” This ap- NDA to the FDA, which would then have proach is already working 90 days to respond. Failure to respond physician, Hoover Institution fellow, and well for dietary supplements and could would constitute automatic approval — a former FDA employee Henry I. Miller that work equally well for drugs. welcome return to a portion of the pre- perfectly encapsulates this mindset: “As of 2008 the FDA may deny seri- 1962 state of affairs. ously ill patients — those facing morbidity Klein and Tabarrok also suggest that the In the early 1980s, when I headed or death from their illnesses — the use of “U.S. government should establish reci- the team at the FDA that was review- unapproved drugs,” write Klein and Tabar- procity with countries that have a proven ing the NDA for recombinant human rok. “This FDA intervention has resulted record of approving safe drugs — includ- insulin, … we were ready to recom- in incidents where physicians were unable ing most west European countries, Cana- mend approval a mere four months to provide experimental or unapproved da, Japan, and Australia.” This, they say, after the application was submitted treatments despite the terminal nature of would “eliminate the FDA’s monopoly (at a time when the average time for their patients’ illnesses.” They recommend on drug approval” because foreign drug NDA review was more than two and passage of the “Access, Compassion, Care companies whose products have already a half years). With quintessential bu- and Ethics for Seriously Ill Patients Act,” been approved in their own countries reaucratic reasoning, my supervisor which was introduced in the Senate by could then immediately market them in refused to sign off on the approval — Sen. Sam Brownback (R-Kan.) in 2008 the United States, and U.S. drug compa- even though he agreed that the data but never got out of committee. While far nies would have the option of taking their provided compelling evidence of the from perfect, the bill does give seriously drugs to foreign governments for certifica- drug’s safety and effectiveness. “If anything goes wrong,” he argued, AP Images “think how bad it will look that we approved the drug so quickly.” As shown earlier, such delays in approving drugs — and, worse, complete denials of approval — can cost countless lives. But since these victims never make the news, the FDA has every incentive to continue its current practices. Having laid out their compelling case against the FDA, Klein and Tabarrok turn their attention to options for reforming the system. recommended reforms The first suggested reform is for the FDA to provide more information to consum- ers about the drugs that are available. They point out that consumers “can and should ask for product labels with their prescrip- tions” and that the “FDA should also pay more attention to designing labels that can be easily read and understood,” in contrast Help? Because of government regulations, cold medicines containing pseudoephedrine need a to longstanding practice whereby it is as- doctor’s prescription, though they were sold over the counter. People will need to pay to see a sumed that consumers are too ignorant doctor to get these drugs because some people use them to make methamphetamine. 24 THE NEW AMERICAN • SEpTEMbER 27, 2010
  • 23. AP Images amples include the ECRI Institute (which evaluates medical products for hospitals, HMOs, and govern- ment agencies), Consumer Re- ports, credit bureaus, and doctors and pharmacists. There would, the economists argue, be many more such organizations if not for the existence of the FDA, which most individuals and businesses take for a knower organization when in fact it is a bureaucratic permission granter. Third, the authors cite middle- ludicrousness: If someone were to propose that government create a new arm to regulate and test men, from pharmacies to pharma- electronics, people would likely heap ridicule upon him because private entities like Underwriters’ ceutical companies to HMOs, as Laboratories, a private-sector group, already does that job well. A similar group could test drugs. those who have strong profit in- centives to ensure that drugs sold tion, knowing that approval in, say, Great the tort system are well able to meet the to the public are safe and effective. Britain would mean automatic approval in demand for quality and safety assurance.” Finally, Klein and Tabarrok suggest the United States. They then describe in some detail three a thought experiment. What if someone They next suggest, as they had explicitly parts of their voluntary system that they proposed that there be a federal agency stated earlier, that the proof-of-efficacy re- believe will help assure both quality and that had complete authority over what quirement be completely eliminated since safety in pharmaceuticals. electronic products could be brought to “there is strong evidence that private en- First is the seller’s reputation. A drug market? Most people would quite cor- terprise and tort law takes [sic] care of ef- company with a track record of selling safe, rectly find that absurd because the market ficacy and that the costs, delays, and drug effective drugs will garner both repeat and already has many built-in safeguards to loss from FDA efficacy requirements are new business. A company that sells unsafe ensure that electronics are safe. Yet this is unredeemed.” “That simple reform,” they or ineffective drugs will face losses, a fact precisely the regime under which Ameri- explain, “would greatly expand the range of life that Johnson & Johnson is learning cans are forced to live when it comes to of drugs developed (in particular for rare the hard way at present. Having recalled drugs and medical devices. diseases), increase the speed with which millions of units of Tylenol, Motrin, and Drs. Klein and Tabarrok have per- they get to market, and significantly re- Benadryl over the past year, the company formed an outstanding service by collect- duce costs and drug prices.” is now facing a perhaps permanent loss of ing in one place the many disparate studies The final reform short of complete business to less expensive and safer store- on the harm done by the FDA and, further, freedom that the authors suggest is simply brand equivalents, according to an August by suggesting both partial reforms and, ul- to make FDA drug testing and approval 6 CNN report. Consumers have discovered timately, their sensible alternative, which optional. This, they aver, would quickly that they can get by just fine with the store is to say, freedom. prove whether healthcare providers and brands, and they may be wary of returning In their 1993 book Freedom of Informed patients actually value the FDA’s seal of to the brand-name drugs that have proved Choice: FDA Versus Nutrient Supplements, approval or merely submit to its approval less than safe. Will they also become less Durk Pearson and Sandy Shaw quoted their process because they have no choice. Of willing to purchase other Johnson & John- correspondence with the late Nobel Prize- course, as they point out in a sidebar, if son products? Only time will tell. winning economist Milton Friedman (one this reform were enacted, “the FDA would Second on Klein and Tabarrok’s list is of many such quotations on FDAReview. probably sink like a stone, and FDA of- “knower organizations.” A knower organi- org), summing up the project’s conclusions ficials know it,” which explains their op- zation is a “private organization that knows quite nicely: “‘The FDA has already done position to any and all liberalization. more than the consumer about a seller’s enormous harm to the health of the Ameri- After discussing these potential reforms, reputation or about the quality and safety can public by greatly increasing the costs of Klein and Tabarrok then describe their of the seller’s products.” Knower organiza- pharmaceutical research, thereby reducing ideal reform, which they term the “Sen- tions “often inspect quality and safety, and the supply of new and effective drugs, and sible Alternative,” defined as “a voluntary grant a certification mark or seal of approv- by delaying the approval of such drugs as system in which private firms, organiza- al.” Among existing knower organizations survive the tortuous FDA process.’ When tions, and perhaps also other governments are Good Housekeeping, Underwriters’ asked, if you could do anything to improve and a voluntary FDA assured consumers Laboratories, Moody’s, and the American health in America, what would you do? of drug safety and efficacy.” “Careful re- Dental Association. Knower organizations Friedman replied: ‘No more licensing of flection,” they argue, “will show that the “may investigate quality and safety, and sell doctors. No more regulation of drugs. Not combination of voluntary practices and their reports directly to consumers”; ex- of any kind. Period.’” n Call 1-800-727-TRUE to subscribe today! 25
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  • 25. nortH amErica Texas Sidestep worked against Texans’ (and the nation’s) freedom and sovereignty. Criticism of the project was leveled against the Texas Department of Transportation’s (TxDOT) bullying, using “eminent domain” to con- fiscate private property, and the almost incomprehensible revelation that rev- enues from the toll-only roads would be returned to a foreign private company, Cintra (Spain), for its share in helping develop the project, amongst numerous other reasons. That alone is fascism. (See the online article “Trans Texas Corridor Renamed, Not Dead”.) The outrage surrounding the Trans Texas Corridor has died down, but Ameri- cans would be foolish if we mistook qui- etude for victory. The battle for the mid- continent is far from over, and our enemies continue to take aim. Where Does the Project Stand now? After Texans took their legislators behind the barn for a “knock-down, drag-out” in AP Images the 2007 legislative session and TxDOT came under review for its practices, the agency announced earlier this year a “No Pinocchio would be jealous: Doug Booher, the environmental manager for the Texas Turnpike Action Alternative,” a recommendation to Authority Division of the Texas Department of Transportation, announced in 2009 that TxDot is taking formal steps to end the Trans Texas Corridor, yet building continues. the Federal Highway Administration that “No Action” be taken — end the TTC-35 project. The legislative process had re- The Trans Texas Corridor, which is meant to begin a road quired TxDOT to complete two “tiers,” network to help unify America, Canada, and Mexico or phases, in constructing the superhigh- way — the first being the Environmental similar to unity in the EU, though slowed, is continuing. Impact Study (EIS). The EIS (Tier One) was intended to gauge not only the envi- ronmental, but also the economic, social, by Kelly Holt beginning to learn. Texans were livid a and cultural impact of a project. It was few years ago when they discovered that a during this stage that the state suffered the A favorite Aesop’s fable is about an system of toll roads was being built with- fury unleashed by angry Texans, and after eagle. Perched on a lofty rock, he out citizen input and that the “Trans Texas which TxDOT submitted its “No Action watched the movements of a hare, Corridor,” which took vast swaths of land Alternative.” which he hoped to have for dinner. An ar- via eminent domain and funneled public TTC-35 went off the legislative radar, cher, who saw the eagle from a place of tolls into private coffers through public- as there is no money to do the deal and concealment, took careful aim and mortal- private partnerships, was being built to fa- no political will to resurrect it after citi- ly wounded him. The eagle gave one look cilitate trucking from deepwater ports in zens “got their Texan on.” And violence at the arrow in his heart and saw in that Mexico throughout the United States and at the border has interrupted everybody’s single glance that the arrow was fletched Canada so that American dockworkers and efforts to do much of anything that doesn’t with the eagle’s own feathers. “It is a factory workers could be bypassed. concern that issue. In a July 17 Fox inter- double grief to me,” he exclaimed, “that I Readers will remember the fierce con- view with Greta Van Susteren, Texas At- should perish by an arrow feathered from flict in Texas over the massive assemblage torney General Greg Abbott said that the my own wings.” The moral of the story is of freight and passenger lanes and util- need for action (and federal assistance) on that we often give our enemies the means ity, water, and electronic lines that were the border is urgent. Among other things, to destroy us. to have converged into a “transportation Abbott stated that “in the border city of This is true in personal interactions, corridor” (TTC-35). Rather than solving Juarez alone (across the Rio Grande from politics, and world trade and economics Texas’ transportation problems (as the El Paso, Texas), more than 2,400 people — something that many Americans are project was billed to do), it would have in the last couple of years have lost their www.TheNewAmerican.com 27
  • 26. nortH amErica This is happening in the Dallas/ transportation future. This monstrous re- Fort Worth area with the North gional private equity transportation proj- TxDOT, the Texas Department of Texas Tollway Authority. NTTA ect will accomplish in North Texas what a Transportation, is unapologetic about is a political subdivision of the statewide corridor project could not. Cor- State of Texas representing five ridor building will happen this way: Urban building the superhighways piecemeal, North Texas counties. This re- stretches will be built first, instead of rural even after facing the public’s outrage gional authority made its own ones. Profits could fund other portions — deal with Cintra, not relying that is, urban tolls could fund rural proj- and despite an official negative review on the state to get the job done. ects later. of its activities. Its website states that it is “em- Construction on other corridors around powered to acquire, construct, Texas (LaEntrada al Pacifico, Ports to maintain, and operate turnpike Plains) continues as well. And then there’s lives to the drug cartel war.... It is more projects to raise capital for construction I-69. dangerous to walk the streets of Juarez projects, collect tolls to operate, maintain, The I-69 Corridor is another high-pri- than to walk the streets of Baghdad.” Po- and pay debt service on these projects.” It ority corridor in the state, traversing the litical hurdles, border violence, taxpayer also states that its mission is “to enhance coastal area of Texas to points east and lack of money? Heck, with all that going mobility through responsible and innova- north, culminating in Michigan. Current on, it’s much more difficult to get the road tive tolling solutions.” focus is on a section between Beeville and through, and legislatively, the state cannot Innovative tolling solutions? Anytime Houston, Texas. While the scope of this exercise what was the enabling legislation: a private company is involved in the col- project isn’t nearly as broad as TTC-35, the Comprehensive Development Agree- lection of public tolls, the interests of the and the footprint has been altered consid- ment (CDA). taxpayer are not served. Cintra is active in erably owing to public pressure, construc- But that doesn’t mean Texas or the con- private toll deals and builds transportation tion on this project continues, keeping a tinent is safe. While the funding mecha- infrastructure worldwide. A Texas capitol lower profile. But it should be remem- nism (CDA) for the project at a state level insider states that this project, between bered that the goal behind constructing is gone, the framework for the corridor is Cintra and NTTA, is the largest private this highway remains the same — increase still in the transportation code. And the su- equity toll deal in the world. CDAs such the ease and capacity for the transport of perhighway is still being built — in pieces. as the NTTA can solve local problems, but people and goods across the three “North The loophole is that cities, counties, spell danger via their potential to link such American Union” nations. and municipalities can, using CDAs, urban projects with rural ones. The NTTA TxDOT is unapologetic about building make private equity toll deals all day long. is an example of what to expect in Texas’ the superhighways piecemeal, even after facing the public’s outrage and despite an official negative review of its activities. In Texas, a process called Sunset Review is in place to make sure each agency is periodi- cally reviewed for relevancy, funding, and violations. When it came TxDOT’s turn for review, it was condemned for its slippery practices. It is under review again, largely for serious complaints lodged concerning its handling of the TTC. Has TxDOT re- formed? No. It is still doing private toll deals, just doing them locally. TxDOT’s website has this to say: “TxDOT is updating the long-range, mul- timodal statewide transportation plan. The new Statewide Long-Range Transporta- tion Plan 2035 will serve as the state’s 24-year ‘blueprint’ for the planning pro- cess. It will guide the collaborative efforts between TxDOT, local and regional deci- sion-makers and all transportation stake- holders to reach a consensus on trans- AP Images portation needs.” The concept of private other considerations: The 1,200-foot-wide Trans Texas Corridor would lead to the taking by companies doing deals is alive and well. government of over a half million acres of privately held land through eminent domain. This farm, Also on the website, a document en- owned by the family for over 120 years, would likely be destroyed, along with its buildings. titled “More Than Just a Road” promises 28 THE NEW AMERICAN • SEpTEMbER 27, 2010
  • 27. to “build only those projects that serve unique regional needs and that can be in- tegrated into a comprehensive statewide transportation project.” Again, it shows no improvement. The original plan would have built the road in segments anyway, segments that would eventually be con- nected. The commitment to integrating the network of roads still stands. What a con. Direction of the Project And though it may seem as if the super- highway battle is solely Texas’ show at this point, it’s not a big jump to conclude that if the roads’ progress has been at AP Images least slowed in Texas, then it will be built from Canada to Mexico instead. Corridors built from Canada through the continent’s Diverting Texans’ attention: The violence on the border with Mexico has drawn the focus of both middle would eventually force Texas and Texas’ legislators and its citizens, taking it away from the Trans Texas Corridor. Oklahoma (Oklahoma is the one other state in which citizens are actively fighting ers to construct the Mid-Continent Corri- regionalists/globalists are still here. The the superhighways) to concede unless the dor, and a video on its website indicates ground that was reclaimed by Texas in de- electorate understands the magnitude of the that it has not scaled back or slowed down feating the TTC so far happened because problem and how to stop it. Canada con- its plans. Consider this. In NASCO’s re- the local electorate got mad and did some- tinues development of its north-south corri- port for June 1, 2010, it applauded Presi- thing. As always, an informed electorate dors intended to connect with the American dent Obama’s May meeting with Mexican is the answer. And local action got the job segments, called the Canamex, Pacific, and President Felipe Calderon in Washington: done. Each state, municipality, and region Eastern Seaboard corridors, and, of course, “Obama also emphasized that the govern- in the path of one of the National Highway the Mid-Continent Corridor that parallels ments of the U.S. and Mexico are working System’s 80 high priority corridors must I-35, the critical Texas segment. on a new customs cooperation program be vigilant and informed about the true na- Then there’s the Arctic bridge — aimed at making cross-border trade more ture of these corridors — which is simply Canada is developing an east-west trade secure, while streamlining the process of providing infrastructure to merge Canada, route called the Asia-Pacific Gateway and inspection and security and deepening Mexico, and the United States into a North Corridor Initiative, including the Arctic the process of standardization of norms American Union (See the October 15, Bridge. What is that? The Arctic Bridge and regulations to cut costs and eliminate 2007 issue of the new AmericAn). And is Canada’s shared vision with Russia to waste for North American businesses.” in the doing, private equity deals are just “encompass both air and sea connections Realistically, this means more outsourc- another way to steal your money and put between Russia and Canada,” according ing of blue-collar jobs to Mexico on the it in the pocket of your government, or the to the initiative’s website. The mission of way to opening up the border altogether pocket of a foreign company. the initiative is to establish Canada’s Asia- (See “Express Route to Poverty,” October In the end, if the North American Union Pacific Gateway and Corridor as the “best 15, 2007). (NAU) is to be implemented, it is likely transportation network facilitating global The report continued with this quote that a trade corridor must be constructed. supply chains between North America and from Calderon, “The emergence of their Projects such those run by Texas’ NTTA Asia.” Do we really need to provide Russia nations from the economic global crisis are the way to get there. And there are with improved access to the northern por- is opening ‘a window of opportunity for no indications that the NAU will simply tion of our continent? Canada, the United States and Mexico go away. In fact, our government’s im- Finally, remember NASCO, North to reposition Mexico and North America migration policies being what they are, it America’s Supercorridor Coaliton? It is as a vigorous region — competitive and seems our political and business elites are well developed and well funded, and it prosperous, capable of generating more working harder than ever to dissolve the is providing the network for government, and better jobs, and a region that will be remaining distinctions between Canada, business, and trade entities dedicated to attractive for investments, trade exchange Mexico, and the United States. “uniting public and private sectors to ad- and tourism, with a great future.” He said, Other states will feel the pressure to dress critical national and international “Together the NAFTA bloc could increase begin corridor construction if they haven’t trade, transportation, security and environ- its joint exporting capacity to meet grow- already. Learn about the corridors, and the mental issues.” NASCO has been essen- ing competitiveness from different regions private equity deals that surround them; tial in developing cooperation (and who of the world.” otherwise, our feathers will show up in the knows what else) among all the stakehold- All this to say, don’t look now, but the arrow that kills us. n Call 1-800-727-TRUE to subscribe today! 29
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  • 29. book rEviEw A GlobAl-WArminG Primer G ideons International should obtain rights to this title and place a copy in every hotel room in the United States. It is a veritable bible arming readers with information they need to refute the claims of environmentalists that humans can adversely influence climate. Americans need to understand this issue, because devastating public policy is being crafted based on faulty science cooked up by those who stand to make a lot of money off the hoax. Readers of the new AmericAn in San Francisco will recog- nize the author, Brian Sussman. He is an award-winning science reporter and meteorologist and hosts a top-rated talk radio pro- gram in the Bay area. He has more than 20 years’ experience in climate science and is dedicated to refuting the claims of those who promote the idea of anthropogenic (human-caused) global warming (AGW). As the title indicates, Sussman’s book tells the story of Climat- egate, the incident of November 2009 in which hackers pirated hundreds of e-mails from a British university. The correspon- dence revealed that top UN climate scientists from around the world had for more than a decade been fraudulently reporting data to favor their alarmist climate agenda. Science However, Sussman’s book does not stop there. In fact, he began writing it more than two years ago. As he was wrapping up the final version, Climategate broke, and he redrafted the entire work, incorporating important highlights of the scandal along with background information about the perpetrators. Evidence from these e-mails significantly reinforces many of the points Sussman makes in his exposé of fabricated climate science. For example, he gives a brief explanation of the cyclical nature of climate, citing the Medieval Warm Period (MWP) when global temperatures were considerably higher than those of the pres- ent day, and the subsequent Little Ice Age (LIA), during which once-fertile Greenland became buried under ice. He shows how proof of global climate fluctuations is based on physical evidence and historical observations. More importantly, he reveals — from both personal experience and Climategate e-mails — a concerted media coverup of the truth. More than just a book about Climategate, There are many other climate myths that Sussman debunks the leaking of e-mails from global- in his page-turning book. For example, it is a common media- warming alarmists, Climategate covers the inspired misconception that the United States is withering under its hottest weather in history. Sussman reports on the shockingly science, politics, and goals behind global- large number of official U.S. weather monitoring stations com- warming claims. promised by increasing urbanization in their immediate vicini- ties. The results of these and other setting violations are false recordings significantly higher than actual surface temperatures. by Rebecca Terrell Additionally, he shows that corrected official temperature records rank the 1930s as the hottest decade in the last century and reveal Climategate: A Veteran Meteorologist Exposes the Global a net cooling since that time despite increased consumption of Warming Scam, by Brian Sussman, Washington, D.C.: World fossil fuels during the same period. Net Daily, 2010, 224 pages, hardcover. Next, Sussman zeros in on the main object of climate-change www.TheNewAmerican.com 31
  • 30. book rEviEw load or other factors.” Mean- Additionally, Sussman devotes only while, companies such as two pages to nuclear power. Though he “Controlling carbon is a bureaucrat’s GE, Google, Microsoft, and defends it against undeserved alarmism dream. If you control carbon, you control IBM stand to make fortunes continuing ad nauseam since the 1979 life,” said Dr. Richard Lindzen, a climate on the development of such Three Mile Island incident, he omits the technology. Hardly surpris- vital point that nuclear is the safest, clean- scientist with the Massachusetts Institute ing is Al Gore’s stake in many est, and by far most efficient and readily of Technology, in 2007. of these eco-mercenaries. available answer to the so-called “energy Equally damning is Barack crisis.” There is nothing wrong with fossil Obama’s interest in the Chica- fuels, but nuclear is unquestionably su- propaganda: carbon dioxide. Hardly a go Climate Exchange, a commodity market perior and should be the main source of pollutant, CO2 is a vital component of poised “to become the designated carbon power generation in the United States and the Earth’s atmosphere yet makes up only trading depot” if the President’s dreams of around the world. Considering spent fuel 0.038 percent of it. Of that scant amount, carbon-taxing cap-and-trade become reality. reprocessing potential, current reserves human activity accounts for 3 percent of are sufficient for millennia, which gives a the atmospheric CO2 — or little more AlmoSt Perfect completely new twist to the term “renew- than one thousandth of a percent of the There are only two issues Sussman raised ables.” The “energy crisis” is perpetrated atmosphere! Even if doubled, the amount that deserve a more complete explanation.* by government policies that shackle nucle- would be infinitesimal. They involve his discussion of alternatives ar while funneling taxpayer money to inef- to fossil fuel energy sources. Chapter Nine ficient and wasteful wind, solar, and other economicS And Public Policy is devoted to analyzing the pros and cons misnamed renewable energy sources. Sussman’s book encompasses more than of several, including wind, solar, hydro, Despite these points, Climategate de- science, because his purpose in writing is and nuclear. In addressing wind power, serves high praise and is a must-read for not merely to refute errors. The climate de- Sussman states, “I’m not denying the va- every patriotic American interested in sav- bate would not exist if unscrupulous politi- lidity of wind power — those turbines re- ing his country from assassins masquer- cians did not intend to use the concocted ally do spin out energy.” He goes on to ex- ading as eco-do-gooders. Sussman closes data to enact public policies set to cripple plain how unreliable and dangerous wind his book with a prayer all should willingly developed nations’ economies and force turbines are, which is true. But the energy echo: “May God give us the grace to do consumers back to archaic levels of ener- they “spin out” is totally unsuitable for what is right.” Amen. n gy consumption. “Controlling carbon is a powering an industrial economy and must bureaucrat’s dream. If you control carbon, always be backed up with some reliable * There is actually a third issue Sussman discussed, you control life,” said Dr. Richard Lindzen, form of generation that always must be which is beside the point of this article but none- a climate scientist with the Massachusetts kept running because wind is intermittent theless needs correcting. In Chapter Seven he com- Institute of Technology, in 2007. and can stop at any time. pares the persecution of AGW deniers to the Catho- His words have already played out in lic Church’s treatment of scientists throughout the real life. In December, Ed Hiserodt re- centuries. This is a very poor analogy. For example, ported for the new AmericAn, “Last Sussman says that the Catholic Church persecuted January the government of Chad outlawed those who defied the theory of geocentrism — the charcoal because of its emissions of CO2. belief that the Earth is the center of the universe — This caused a riot in the streets by women prior to the revelations of Nicolas Copernicus, who whose only method of cooking for their had to work in secret for fear of church authori- families was being taken from them to ties. On the contrary, Copernicus, a Polish canon of pacify the environmental extremists. Their Frauenburg Cathedral, based his heliocentric find- plea was, ‘Kill us now. That is better than ings on a theory originally proposed by Aristarchus starving to death.’” of Samos, a Greek scientist of the third century B.C. Sussman warns his readers that eco-fa- It was the Catholic Church’s reverence for science natics have the same thing in mind for the that kept the findings of Aristarchus alive and made United States. New technologies with chill- them available more than 1,700 years later to Co- ingly Orwellian potential are already in use pernicus, whose research provided the basis for the that will allow government authorities to Gregorian calendar. Moreover, as a devoted church- monitor home appliances and control them man, he neither could nor would have conducted his remotely. For example, updated building research without permission from his superiors. To codes now mandate the use of Program- claim otherwise is to do his memory great injustice. mable Communicating Ther- Sussman’s other examples, mostats (PCT), which “allow including ones on Giordano the utility to change settings Bruno and Galileo, are equally on the thermostat based on flawed. 32 THE NEW AMERICAN • SEpTEMbER 27, 2010
  • 31. THE GOODNESS OF AMERICA caboodle ranch ters them all, to avoid further increasing for his time in the beginning, and then On August 26, 2010, Canada Free Press the number needing care. nothing near the end as more and more ran the wonderful story of Caboodle Ranch Yes, economic times are hard, and many expenses incurred, so he didn’t charge me near Jacksonville, Florida. The ranch used people are in need. However, frequently a lot considering the situation,” Klaybor to be a tree farm, but is now home to over one of their needs is a new home for their told the Observer. “I could not believe he 600 formerly homeless felines. pets, which they can no longer afford to stepped in to help a total stranger. It was Caboodle’s owner, Craig Grant, fell in keep. Caboodle Ranch provides some of like an angel was sent to help me when I love with cats several years ago and de- those folks an alternative to euthanizing or was in dire need.” veloped a strong desire to rescue stray kit- simply abandoning their beloved pets, and The home is now completely renovated, ties. He had been living in a condominium, that’s good for the cats and the people. rented, and an asset to the neighborhood, but as his feline family expanded he found thanks to Birden’s generosity. Downplaying he needed more room, so purchased the his kindness, Birden told the paper, “It was 30-acre tree farm and relocated his fam- landlord largess one of those times you take a risk to help ily. With the added space, of course, he Though it seems landlords in general may someone in need and in this case, it worked had the ability to save even more cats, and have a bad rap, the truth is they are often out for everyone involved. I just felt com- his family continued to grow. Florida’s the victims rather than the perpetrators of passionate toward him and had to help.” WCTV.tv, which first “broke” the story in injustice. They are also people just like the January 2009, reported in a follow-up on rest of us, and have the same capacity for September 1 of this year that 660 cats now kindness. An article in Texas’ Kingwood mommy Teamwork populate the sanctuary. Observer News on August 31 demon- When fire broke out in Katrina Eash’s Grant has made a charming “city” for strates this. house in Belfair, Washington, on Au- his friends, complete with houses, city Dave Klaybor purchased his home six gust 22, she was able to get three of her hall, a church, a motel, etc. — even a years ago in Forest Cove, Texas, and kept four children safely out. However, heavy Walmart — all cat-sized, of course. The it in very good condition. However, shortly flames and smoke separated her from her cats are all spayed or neutered, vaccinat- after moving in he was transferred to Cali- 11-month-old daughter, who was sleeping ed, and treated for pests. They have room fornia and ended up having to move. After in her crib. Running around to the infant’s to roam free, yet are still kept safe and successfully renting out his Texas home bedroom window, she tried to get in that healthy. Hundreds of cats that would have for several years, he began to “have a bad way, but the window was six feet off the been euthanized or, even worse, roaming feeling” about the property. This feeling ground and simply too high for her to the streets as harmful strays, reproducing was well substantiated when he learned climb through. and spreading diseases, now call Caboodle that, indeed, the property had been aban- Eash was screaming for help when home. doned and trashed. Robin Adair happened to drive by. Hear- Many people think spending time and Being several states away and unable ing Eash’s cries and seeing the flames, money on animals is wasted, that the re- to tend to the home himself, Klaybor at Adair rushed to help. Without much plan- sources could be better spent on human first was in a quandary. Searching through ning, but lots of “mama bear instinct,” the needs, and perhaps this is true. However, online advertisements and websites for two women teamed up for a dramatic res- the good side to a story like this is that this ideas, though, he came upon Kingwood, cue. Eash boosted Adair up so she could man cares about life and is willing to make Texas, resident Ray Birden. Birden is get in through the window. Adair felt her the sacrifice himself to provide these fe- himself a landlord and certainly under- way through the thick smoke to the crib, lines a decent life. He does not demand that stands the difficulties of having proper- picked up the baby, and passed her out the others take care of them, does not demand ties destroyed by renters. window to Eash. Adair herself narrowly that the government spend taxpayers’ dol- Klaybor wrote to Birden, simply asking escaped the flames. lars, and did not demand that the govern- for advice as to whom he could ask for Although the county’s fire district says ment confiscate land to be utilized for his assistance in checking out and repairing it will present Adair with its Valor Award, sanctuary. Caboodle Ranch is strictly pri- his rental home. Birden went above and it is clear that an award was not her mo- vately funded. Craig does the majority of beyond that, though. He first went and tivation for helping. “I have a baby of my the work himself, though gladly accepting inspected the property himself, and took own.... As soon as I heard there was a help from volunteers. Veterinary services pictures which he e-mailed to Klaybor. baby in there, nothing was stopping me,” are provided free or at a reduced cost — He then took it upon himself to repair the she told KING 5 News on August 23. And voluntarily by the providers. damaged home, and even put it back on though Eash’s home may be gone, she is He is not “raising” cats and increasing the market. He kept in close contact with overwhelmingly grateful that her family is the population. He merely cares for the Klaybor, e-mailing him pictures of the safe. “I’m just thankful that I’ve got my ones that are already here for as long as progress. Though Birden didn’t complete- girls; that’s all that matters.” n they live. He immediately spays or neu- ly work for free, “He charged me a little — liAnA StAnley Call 1-800-727-TRUE to subscribe today! 33
  • 32. History— Past and PErsPEctivE Baseball Hero Ted Williams, arguably the greatest hitter who ever lived, brought his keen eyesight, quick reflexes, and combative personality to two wars in service of the United States. by Jack Kenny T ed Williams had just returned from a hunting trip in Minnesota, about 40 miles north of Minneapolis, when he heard the news that the Japanese had bombed Pearl Harbor. Most Ameri- can League pitchers, the Japanese, and later the North Koreans and Communist Chinese, no doubt wished he had stayed there. Absorbed in his trinity of pursuits — hitting, hunting, and fishing — Wil- liams had paid little attention until then to the war that began in Europe in 1939. But Pearl Harbor got the attention of Ted Williams and millions of other heavy hit- ters in America. The Germans, their hands full with Russia, Great Britain, and other implacable foes, knew better than to wake a sleeping giant in North America. Japan did not. Williams has often been compared to batter up! For his last spring John Wayne’s on-screen persona, and the training in 1942, before the comparison is apt. Essentially a loner, Wil- big war beckoned, Williams liams loved the cowboy movies, especially grabbed some lumber and brandished his own “weapons those starring Hoot Gibson, and all his life of mass destruction” at major AP Images he played the loner who only needed the league pitchers. open trail and a reliable means of transpor- tation (I don’t know if he ever rode horses) to fulfill his life’s mission. The drifter in television’s The Rebel. Yes, “Teddy Ball- sports columns that gave him reason to the cowboy films, who formed no close game” was a rebel. He was, to paraphrase be mad. North Korean and Chinese pilots permanent ties other than to his horse, Johnny Cash, “panther quick” with the also gave him reason. “I fly better when must have inspired Williams, who had bat and “leather tough” with his tongue. I’m mad,” he said. The anger brought his the same affection for his bat. Have bat And no one had to push him very far or tremendous skills and relentless determi- will travel, to New York, Philadelphia or for very long before “he figured that he’d nation the edge that made him even more Cleveland, Chicago, St. Louis, Baltimore, been pushed enough.” Few characters in dangerous. Fortunately, I never saw Ted or Washington, D.C. It is ironic that the American life or fiction have been more Williams mad. But you needed not to ob- determined young man from San Diego naturally combative than Theodore Samu- serve him for very long or in any particu- finished his 22-year major league career el Williams, a Hall of Fame baseball star, lar setting to see him annoyed, irritated, with the Boston Red Sox just before base- war hero, and humanitarian. vexed, and above all, argumentative. ball’s westward expansion brought big I saw him for the first time in Nashua, league ball to the Gold Coast. Putting It All out There New Hampshire, in 1984, long after he had His fast wrists for hire heeded the call- “I hit better when I’m mad,” said Wil- retired from Major League Baseball. He ing wind. He was more than a little like liams, who may have spent more money had come up north in the dead of winter to the post-Civil War hero Johnny Yuma of on newspapers than on meals, looking for help his friend and part owner of the Red 34 THE NEW AMERICAN • SEpTEMbER 27, 2010
  • 33. Sox Sam Tamposi hawk some real estate edgeable baseball men had in Florida. Williams had a home in Cit- been saying for decades that rus Hills, one of the many developments Williams was the greatest At age 39, he made another run at .400 of Tamposi, a real estate mogul living in hitter who ever lived. Now and might have made it with a little more southern New Hampshire. He had come I wanted to learn the great up to pitch similar properties, with all their slugger’s own assessment of speed to beat out “leg hits.” As it was, he charming amenities, to the good folks of his place in baseball history. finished the season with a league-leading New Hampshire “Well,” I said, “do you When it was over, I prevailed on him think you accomplished .388, leaving runner-up and reigning MVP to sit with me at a table for an interview that?” Mickey Mantle in the dust at .365. for a now-defunct Manchester weekly. “Well, I’d say I come He agreed immediately and was surpris- pretty close,” he said with a ingly cordial, as he settled his long and charming display of modesty. “I’d say I’m at the table asked. I said I guessed they still lanky, six-foot-three inch frame into in the top 20.” Then, before I could scrib- would be Ty Cobb and Babe Ruth. That a chair and said, “Shoot.” ble “top 20” in my notebook, he amended got Mr. Williams going. There are many questions a reporter his rating. “Oh, yeah? What about Eddie Collins? would like to ask Ted Williams, which “Make that top ten,” he corrected him- What about Al Simmons?” Williams men- was why he had heard them all hundreds, self. Surely baseball’s greatest hitter — ar- tioned two or three other “what abouts” perhaps thousands, of times. I began with guably at least — should have the same before settling on an old teammate. the incident I had read about and found privilege as a mere Congressman to “re- “What about Jimmy Foxx? You think he most intriguing. Williams, the story goes, vise and extend” his remarks. could hit?” announced in his rookie season, possi- “Maybe the top three,” I suggested, “Yeah, he could hit,” I agreed. bly while still in spring training, that his opening a can of worms. Williams re- “Ho-ho, I guess so!” Williams ex- goal was simply to be the best there ever sponded only with an expressionless stare, claimed. was and ever would be — at least in his as though waiting to hear more. The record on that speaks for itself. lifetime. “Who are the other two?” someone Foxx had a .325 career batting average “All I want out of life,” he famously AP Images said, “is that when I walk down the street, folks will say, ‘There goes the greatest hit- all-around sportsman: Though ter who ever lived.’” Just how lofty a goal he loved the warm weather in baseball season, Williams was that was can best be appreciated by recall- an outdoorsman in winter as ing that Williams came along not long well. As a hunter, he found the after the likes of Cobb, Ruth, and Hornsby woods in Maine or Minnesota had finished their fabulous record-setting “lovely, dark and deep.” careers and Lou Gehrig was very nearly at the end of his. And Williams, nearly as astute a student of the history of the game as he was of the science of hitting, knew well what they had done. He was also well aware of what his new teammate Jimmy Foxx was doing in his assault on the rec- ord books. “Wait’ll you see Foxx hit,” teammate Bobby Doerr was said to have advised Williams when the rookie arrived in Sara- sota for his first spring training. “Wait’ll Foxx sees me hit,” Williams supposedly said in reply. I would read years later that Williams denied ever hav- ing said that, but acknowledged it would not be out of character for him if he had. So I had to know if the “greatest hitter who ever lived” quote was authentic. “Yeah, I said that,” he answered with just a touch of defensiveness in his voice — as if to say, “Why not?” or even “So what?” Indeed, many, if not most, knowl- www.TheNewAmerican.com 35
  • 34. History— Past and PErsPEctivE ing year, his batting aver- liar mix of modesty and triumphalism. “I may not be the best hitter who ever age dropped 50 points to a “But I’m the best old hitter.” mere .356 and he still won He won his sixth and final batting title lived,” Williams announced with a peculiar baseball’s mythical Triple the following year at age 40, barely beat- mix of modesty and triumphalism. “But Crown, leading the league in ing out a young upstart, teammate Pete batting average, home runs, Runnels, by hitting a more earthbound I’m the best old hitter.” and runs batted in. He would .328. The following year, through a com- win another Triple Crown in bination of age and injuries, he slumped (the exact equal of Joe DiMaggio’s) to go 1947, the only player other than Rogers to an incredible .254, barely respectable with his 534 home runs — 13 more than Hornsby to achieve that twice. At age 39, by big league standards and pathetic in the impressive 521 Williams racked up, he made another run at .400 and might the life and career of “Teddy Ballgame.” though Williams’ career was interrupted have made it with a little more speed to Many, if not most, baseball people by nearly five years of wartime service. beat out “leg hits.” As it was, he finished thought he was finally done, a mere shad- Yes, Foxx could flat out hit. the season with a league-leading .388, ow at age 41 of the game’s most danger- But now I have wandered into the field leaving runner-up and reigning MVP ous hitter. But Williams would not leave of statistics while writing about one of Mickey Mantle in the dust at .365. Not the game as a vanquished “has been.” He the most fascinating personalities the even Ty Cobb hit for such a high average would come back for a final season. And game of baseball, or indeed, the history at such an advanced age. what a season it would be. of America has ever known. It was said “I may not be the best hitter who ever It was 1960, and Williams would be of Douglas MacArthur that if he had lived,” Williams announced with a pecu- ending his big league career 21 and a gone on stage instead of into the Army, we never would have heard of John Bar- rymore. If Ted Williams had chosen to make the military his fulltime career, he another reason to boast: might have eclipsed MacArthur or Patton “Nobody in heaven or earth knows or heroes of the air like Eddie Ricken- more about fishing than I do,” backer. Because whatever he turned his boasted Williams, who grudgingly acknowledged that maybe God, who hand to, Williams worked at tirelessly created the fish, did. because he wanted to be the best — and usually was. “There’s nobody in heaven or earth knows more about fishing than I do,” he once boasted. “Sure there is, Ted,” someone dared to contradict him. “Who?” Williams demanded in that thunderous voice that one writer claimed flushed Florida’s flamingos from their nests. “Well,” his companion observed, “God made the fish.” Williams pondered that for a moment. “Well, all right,” he grudgingly ac- knowledged. “But you had to go back a hell of a long way.” And go back we must, quite a long way, into the record books to get an ap- preciation of the man’s accomplishments in baseball. Even those who seldom dwell on the numbers may find the Williams record breathtaking. It was as though he were born hitting .344, the average he achieved in just his second big league season and his career batting average. In his third season, he batted .406, becom- ing, thus far, the last player to bat over .400 for an entire season. The follow- 36 AP Images
  • 35. half years after it began. He started in the Lucky and good: America and the world nearly lost Captain Ted spring of 1939, roughly six months before Williams, USMC, when the last man Hitler marched into Poland and ignited to hit .400 crash landed his plane World War II. He was 23 when he hit .406, then ran to safety just before it burst and he would finally bow out, dramati- into flames. cally, an aged warrior of 42, in the age of Sputnik, space travel, and intercontinental ballistic missiles that traveled even faster and farther than line drives by Ted Wil- liams. His career numbers, remarkable in their own right, would be more impressive still if his relentless assault on American League pitching had not been interrupted by his military training and service in two wars. He did what he did despite spending nearly five of his best years away from the diamond. Even in the war year of 1942, his last before leaving for Marine avia- tion duty, Williams won the Triple Crown while undergoing his preliminary training for military duty. His Battles To his immense physical and mental skills, 20-10 eyesight, and relentless hard work, add his tremendous ability to ignore dis- tractions and focus on the job at hand. That was no small feat for a man capable of hear- ing a fan in the last row heckling him while 30,000 others were cheering. But Williams, AP Images who endured a good deal of ridicule over the draft deferment he obtained as the sole support of his mother, asked to have his status changed to 1-A in May of 1942, and League when the 154-game season was on a baseball field. As a pop singer would he signed on with the Navy soon after and over. And he did not come through in the say years later after Elvis Presley had been volunteered for combat aviation. At the end final two games of the season in 1949, drafted, “Uncle Sam needs you, boy.” of the ’42 season, he was off to war with the when the Red Sox needed only to win one America nearly lost Ted Williams in rest of baseball’s able-bodied stars. of two at Yankee Stadium to clinch the Korea. His plane was hit and he probably The game went on, but such was the American League championship. Charac- should have parachuted to safety, but chose paucity of genuinely big-league tal- teristically, they lost both. instead to stay with his damaged plane. He ent that by 1945, a one-armed outfielder His heroics in the glorified exhibitions crash-landed, jumped out, and ran from it named Pete Gray played for the St. Louis known as All-Star games added fuel to just before it blew up. After that, it must Browns. The stars returned in 1946 and the claim that Williams didn’t come have been a little easier to do what Wil- the Red Sox lost to the Cardinals in the through when it mattered. He broke an liams had always done, stand unflinching World Series, the only one in which Wil- arm making a spectacular catch against when Bob Feller threw a 100-mile-an- liams played. He batted a feeble .200 for the left field wall in the first inning of hour fastball high and inside. the seven-game series and gave the boo the All-Star game in Chicago in 1950, Williams himself blew up at fans and, birds another reason to taunt him. He and did not come out of the game until especially, sportswriters more times than failed when it counted most, they claimed. the eighth inning. Amazingly, he singled can be chronicled here. His barracks lan- Williams would fold in the big games. He home a run to give the American League guage and single-fingered salutes to his couldn’t come through in the clutch. the lead in the fifth. critics in the press box earned him the title Never mind that, absent Williams, the In 1952, he was off to war again, this the “Exquisite Vulgarian,” a name only Red Sox never would have made it to the time in Korea. He was not happy about slightly less endearing than “the Splendid World Series. The stigma stuck, especially being called up again, but apparently a Splinter,” which was meant to be com- after Williams flopped in the 1948 playoff man of his keen eyesight, lightning fast plimentary. His elaborate display of con- game after the Sox and Cleveland Indians reflexes, and aviation experience was tempt for the Fenway fickle, methodically finished in a dead heat atop the American needed in the skies over Korea more than spitting toward each set of stands, in the Call 1-800-727-TRUE to subscribe today! 37
  • 36. History— Past and PErsPEctivE Jimmy Fund to combat can- a Red Sox cap out of his back pocket, cer in children and in visiting put it on his head and then in one grand John Glenn, a Marine pilot who served sick and crippled kids in hos- gesture, tipped it to the baseball fans in with Williams in Korea, had only the pitals around the country. One Boston, New England, and the world. He could spend days researching might also have tipped it to the brave men highest praise for his distinguished and recounting the man’s gen- with whom he had served in World War II Marine Corps teammate. “He did a erosity to his friends and his and those whom he fought both with and selfless dedication to chari- against in Korea. helluva good job. Ted only batted .406 for table causes, but it would be The gallant warrior who had fought the Red Sox. He batted a thousand for the hard to improve on this tribute so many battles and stirred so many pas- Marine Corps and the United States.” on the Jimmy Fund website: sions left the large baseball spotlight with a sincere and moving gesture of peace and He would go anywhere, good will. He continued to offer his ac- summer of 1956 brought him a $5,000 fine and do anything, in the name of The cumulated wisdom and unequivocal judg- by the American League and a suggestion Jimmy Fund — as long as there were ments to the world until his death in July from New York writer Red Smith that Ted no cameras to record his selfless of 2002, less than two months shy of his could save a lot of money if he would re- deeds. Over the years Ted has person- 84th birthday. He and we were lucky he frain from spitting in Puritan New England ally raised millions of dollars for this lived so long. We are lucky as well that and save his saliva for the subways of Go- charity. Today there is a permanent he returned safely to the game he loved tham, where the fine was only two dollars. Williams exhibit at the Dana Farber after having fought so brilliantly and with The next night Williams won the game Cancer Institute and members of the such dedication for the country he loved. with a home run in the ninth inning and “406 Club’’ (named in honor of Ted’s John Glenn, the first American to orbit circled the bases with both hands clasped .400 season) have raised more than the Earth, a U.S. Senator from Ohio, and firmly over his mouth to avoid the temp- $2 million for cancer research in Wil- a Marine pilot who served with Williams tation of spitting again at the now wildly liams’s name. in Korea, had only the highest praise for cheering crowd. his distinguished Marine Corps teammate. He decided early in his career he would Thirty-one years after his final game, in “He did a helluva good job. Ted only never again tip his cap to acknowledge a ceremony at Fenway Park commemo- batted .406 for the Red Sox. He batted a the cheers, a vow he kept through the rating the 50 years since he had batted thousand for the Marine Corps and the rest of his brilliant but turbulent career. over .400, Williams, now age 73, pulled United States.” n He did not tip his cap in that final and redemptive 1960 season, when he batted a very respectable .316 and whacked 29 home runs off a variety of pitchers, in- cluding one whose father had served him a homerun ball a generation earlier. He did not tip his cap after hitting a dramatic home run in the bottom of the eighth in- ning in his final at bat in his final game at Boston’s Fenway Park. He refrained again when, after he had trotted out to his position in left field, manager Billy Jurges sent out a replacement for him so he could come trotting in to still more cheers from the fans, who must have felt like they were watching Moses retire from the heights overlooking, but not reaching, the promised land of a World Series championship. Away from the field, he was cordial to fans, including those who somehow took pleasure in telling him how much they en- joyed screaming insults at him from the left- field stands. For the most part, he shunned Williams did not acknowledge the cheers of the crowd, the press, but could not keep them from even when he homered in his final at bat in Boston’s AP Images reporting on the tremendous good he did, beloved Fenway Park on September 28, 1960. away from the spotlight, in support of the 38 THE NEW AMERICAN • SEpTEMbER 27, 2010
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  • 39. “... the right of the people to keep and bear Arms, shall not be infringed.” EXERCISING THE RIGHT Gun magazine readership tion (NRA) is backing the legislation, ac- tempted murder, robbery, aggravated as- DailyFinance.com reports that magazines cording to spokeswoman Rachel Parsons. sault, and reckless endangerment. Ser- for gun enthusiasts are seeing increases Federal bankruptcy law, which has geant James Wielgus briefly explained in the number of people reading them. morphed into a jumble of unconstitutional what happened to the local media. “It “Among the fastest-growing publications legislation, already has exemptions for all appears to be an armed robbery that went in the first half of 2010 were a slew of ti- kinds of household items, ranging from badly for the suspect because he picked tles for gun lovers, hunters, conservatives pets to jewelry, which prevent creditors an armed customer.” and NASCAR fans, according to figures from seizing protected assets. States also just released by the Audit Bureau of have similar exemptions, and 10 states ac- Circulations.” The circulations for gun- tually already have a gun exemption for Environmental regulators related magazines saw increases in recent people who file for bankruptcy protection. times even though, overall, “the industry- Go after bullets wide trend was down for both subscrip- If they can’t get you head-on, they’ll try tions and single-copy (i.e., newsstand) a late-night to come around the back. At least that’s sales.” The number of subscriptions to what some observers are saying regard- America’s 1st Freedom, a publication of Shopper’s nightmare ing the latest idea of federal bureaucrats the National Rifle Association, were up The Pocono Record reported about an and their enablers to bypass the Second 22.6 percent, while American Rifleman, attempted robbery that occurred in East Amendment. U.S. News & World Report American Hunter, and North American Stroudsburg, Pennsylvania, shortly after published an article on August 27 about Hunter made the list of the 25 fastest- midnight on August 28 in a Walmart park- environmental groups petitioning the En- growing titles. ing lot. In what is a common nightmare vironmental Protection Agency (EPA) to scenario for anyone who has ever bought “ban the use of lead in bullets and shot- groceries late at night, 28-year-old Joshua gun shells.” The EPA, which planned to rand Paul and Gun rights Eastman was loading groceries into his solicit public responses to the petition for Kentucky’s senatorial candidate Dr. Rand car when he was approached by an armed two months, decided to abandon the effort. Paul is rallying to gain the support of gun gunman who demanded his money. The al- In a release to the media, EPA Assistant rights advocates, who political analysts leged armed robber, Reneau Jean Jacques, Administrator for the Office of Chemi- agree are a devoted and reliable voting who is only 17 years old, reportedly be- cal Safety and Pollution Prevention Steve bloc. The Associated Press reported on came more threatening when Eastman ex- Owens explained that the “EPA reached June 12 that Paul, who prominently dis- plained that he paid for the groceries with this decision because the agency does not plays images of himself on his campaign his debit card and did not have cash. have the legal authority to regulate this website firing weapons, signed autographs Eastman took out his wallet to appease type of product.” and conversed with the crowd at a Louis- the menacing robber but then quickly Political pundits think there’s more be- ville gun show. The doctor told the audi- wedged his car door between himself and hind this story, though, considering the ence, “I’m a proud defender of the Second the robber. His wallet fell to the ground, tough November election the Democrats Amendment.... We must be ever vigilant of and Eastman ducked down to get out are facing this year. The “gun issue” is our Second Amendment Rights.” of the way of Jacques’ gun, which was already perceived as a reelection-endan- pointed at him. Jacques allegedly began gering liability for liberal candidates. Add firing through the car’s door window, that to the fact that guns and ammo are Protect your Gun? which sent shards of glass flying at East- flying off the shelf owing to fears that Creditors seeking repayment of debt man, cutting into his face. In retaliation, Obama may try to enact draconian civil- won’t be able to go after guns if Ohio Eastman, who evidently was prepared ian disarmament measures, and this is Congressman John Boccieri (D) gets his to defend himself, pulled out a handgun something the feds would rather not get way. CBSnews.com reports that Repre- he was carrying and returned fire at the into. The EPA abandonment of the pro- sentative Boccieri is backing legislation teen hoodlum. Bullets tore into Jacques’ posed lead ban was also prompted by the known as “The Protecting Gun Owners in lower leg and foot, sending him limping quick response of gun rights groups such Bankruptcy Act of 2010,” which exempts off in agony toward a nearby restaurant. as the National Rifle Association (NRA). firearms from the claims of creditors. Eastman retreated into the Walmart, and NRA Executive Director Chris Cox “Specifically, the measure would permit police soon arrived on the scene to find warned supporters that this was just an- firearms held primarily for the personal, the injured Jacques burying his weapon other thinly veiled attempt at gun control family or household use of the debtor to be in the mulch of the nearby landscaping. that would have the effect of ratcheting up exempt from the claims of creditors under After first trying to convince the authori- prices so high that only a few could afford federal exemption law,” Boccieri wrote to ties that he was a robbery victim, Jacques the highly priced alternative ammo. n colleagues. The National Rifle Associa- was taken into custody on charges of at- — pAtricK Krey Call 1-800-727-TRUE to subscribe today! 41
  • 40. Social Security in the red Item: In the early years of the Depres- sion, write Robert Dreier and Donald Cohen in an article entitled “Ignore the fear-mongering on Social Security,” in the Los Angeles Times for August 14, “most business leaders and conservatives considered the very idea that government had a moral responsibility to help senior citizens retire with dignity to be outra- geously radical, a dangerous trampling of individual liberty. They predicted that the Social Security tax would bankrupt the country.” AP Images FDR, according to these cheerleaders, “outmaneuvered Social Security’s op- ponents, using his bully pulpit to explain Social Security administration commissioner michael astrue said of the Medicare Board of why they were misguided.... Most Ameri- Trustees report that Social Security will pay out more in benefits than it collects in taxes this year cans agreed.” and will likely not give cost-of-living increases to recipients next year, for the second year in a row. Item: Columnist Michael Hiltzik insisted in the Los Angeles Times for August 8, in steered far away from that route, not even money, as opposed to mandatory Social “The myth of the Social Security system’s approaching President Bush’s modest at- Security “contributions” that call for im- financial shortfall,” that the Social Secu- tempt in 2005, which was misrepresented prisonment if a normal citizen tries to get rity trust fund is “real money.” The fund, and asphyxiated. out of paying. he railed, “for some two decades has As FactCheck pointed out, even if If Social Security is such a marvelous been the prime target of the crowd try- Bush’s plan of five years ago were to be notion, why did it need to be a manda- ing to bamboozle Americans into think- fully implemented, less than one-third of tory monopoly? Jim Powell, the author of ing Social Security is insolvent, bankrupt, any person’s Social Security taxes could FDR’s Folly (2003), has noted that there broke — pick any term you wish, because have been placed into private accounts. “never was a popular demand for Social they’re all wrong.” There was so little support for the plan, Security, even during the Great Depres- Item: President Obama, in his weekly even within the GOP, “that it died without sion. Few Americans were interested in the address on August 14, vowed to protect ever being introduced as a formal piece of kind of government-run program that the Social Security from unnamed GOP legislation.” Currently, the closest thing to German politician Otto von Bismarck had “leaders” determined to carry out the what President Bush advocated is being introduced in Europe. According to Social “privatizing” of the system and “tying offered by Representative Paul Ryan (R- Security expert Carolyn Weaver [author of your benefits to the whims of Wall Street Wis.), the ranking member of the House The Crisis in Social Security (1982)], in traders and the ups and downs of the Budget Committee. At the time of Obama’s 1929 about 95 percent of senior citizens stock market.” remarks, the Congressman’s legislation were self-supporting — an increasing CorreCtIon: The current President is had but 13 cosponsors, none from the number had private pension plans or an- being duplicitous about Social Security. Republican House leadership. President nuities. Many seniors were helped out by Indeed, even the distinctly non-conserva- Obama, pointed out FactCheck, “further family and friends.” tive FactCheck.org concluded that Presi- distorted the Republican position when In a summary piece for the Future of dent Obama’s claims excerpted above he claimed that the GOP plan would ‘[tie] Freedom Foundation in April of 2009, were “mostly false.” your benefits to the whims of Wall Street Powell continued: The Republican leadership is being traders.’ That’s not true of the private ac- criticized for something it is not doing by counts Bush proposed. Those would have Despite the shock of the Great Depres- prominent Democrats who have been try- been invested in strictly regulated, broadly sion, private pension plans continued ing to change the subject from what they based mutual funds, much like the funds in to perform well. “Industrial pension themselves really are doing — crippling which millions of federal workers invest plans not only grew steadily,” Weaver the economy with an unrelenting cam- their own retirement funds.” reports, “but also proved quite resil- paign of taxation and spending. In fact, More importantly, those funds would ient, with certain features improving one could rightly criticize GOP leaders have been employed voluntarily by those markedly.... The rate of failure for ex- for not pushing to “privatize.” They have seeking to invest (some) of their own isting plans, moreover, was relatively 42 THE NEW AMERICAN • SEpTEMbER 27, 2010
  • 41. efits. Instead, they are claims on the Trea- sury that, when redeemed, will have to be financed by raising taxes, borrowing from the public, or reducing benefits or other expenditures. The existence of large Trust Fund balances, therefore, does not, by it- self, have any impact on the Government’s ability to pay benefits.” This past year’s trustees for the Social Security and Medicare systems said in a similar fashion: “Neither the redemption of trust fund bonds, nor interest paid on those bonds, provides any new net income to the Treasury, which must finance re- AP Images demptions and interest payments through some combination of increased taxation, Wrong, unfortunately: Even FactCheck.org, a project of the Annenberg Public Policy Center of the reductions in other government spending, University of Pennsylvania (Obama worked for the Chicago Annenberg Challenge), said Obama had or additional borrowing from the public.” it wrong when he said Republican leadership was pushing to privatize Social Security. Meanwhile, those trustees say Social Security has a $7.9 trillion shortfall. This modest. Of the systems operating in for employers and employees alike, means “the program would require $7.9 1929, those that were discontinued, but advocates of Social Security were trillion in cash — today! — to afford its closed to new employees, or suspend- adamantly against freedom of choice. promises.” By other calculations, arguably ed by 1932 [a low point in the Depres- more realistic, the unfunded liabilities of sion] involved less than 3 percent of Most present-day apologists for Social Se- the Social Security are closer to $16 tril- all covered employees.” People lost curity don’t go as far as Hiltzik of the Los lion. That’s security? pension coverage primarily because Angeles Times, cited above, who seems to The notion that the government can they lost their jobs — a consequence think we will all be rescued by a munifi- keep charging endlessly, spending beyond of misguided government policies cent and bottomless “trust fund.” Still, the its means, without paying a pretty price that brought on the Great Depression affection of many big-government believ- is a costly fallacy, whether one is discuss- and prolonged it. ers can be embarrassingly gushing. One ing Social Security or other so-called en- By 1935, President Franklin CNBC television commentator last year titlements. According to the Congressio- Roosevelt embraced the German idea acknowledged Social Security to be “the nal Budget Office’s most recent 10-year that there should be government-run largest Ponzi scheme in history” but said baseline budget assumptions, by 2020, a “social insurance.” That wasn’t legiti- he “loves” it regardless. Nonetheless, a full half of all the income tax revenue in mate insurance, where participants good many Social Security supporters the country will be needed just to pay the have a contract, they pay premiums continue the falsehood about a trust fund interest on a National Debt of $23 trillion. based on their life expectancy, the overbrimming with money. We could cut benefits, but 50 million premiums are used to make produc- The trustees of the trust fund certainly recipients are a lot of folks for spineless tive investments that will cover the recognize it has no economic value in an politicians to resist. Or we could raise benefits, and the participants and their authentic sense. The bonds held in the fund taxes, but many young people are already heirs have a property right to receive are a sort of IOU, a measurement that in- doomed to paying more than they will benefits that have been paid for.... dicates how much the government owes to ever get back in benefits, and the payroll There was considerable opposition the system, and which will have to be paid tax is now the largest that is paid by most to the proposed Social Security Act eventually by taxpayers. Even the left-wing Americans. Or we could allow Americans from both Democrats and Republi- Clinton administration’s budget officials to assume more choices and control over cans. Sen. Bennett Clark of Montana understood this, pointing out in the 2000 their own futures. proposed an amendment that would budget that the trust fund balances “are Unfortunately, if the past is a guide, the have enabled employers to opt out available to finance future benefit payments likeliest path will follow the direction cur- of Social Security if they had pen- and other Trust Fund expenditures — but rently being taken by the White House and sion plans offering more generous only in a bookkeeping sense.... They do liberal establishment: Berate the opposition benefits than Social Security. That not consist of real economic assets that can and be economical only with the truth. n would have meant freedom of choice be drawn down in the future to fund ben- — williAm p. hoAr www.TheNewAmerican.com 43
  • 42. THE laST WorD DROW TSAL EHT By John f. mcmAnuS Comic Books From the Federal Reserve F acing more scrutiny than its leaders have ever wanted, the Federal Reserve responded beginning in 2009 with a campaign designed to tell everything the Fed thinks the American people ought to know. How to do this? A series of comic books! When comic books first ar- rived on the American scene, they were funny, or their pages were filled with the daring exploits of real or imagined at nothing to prevent private counterfeiting, while at the same heroes. Now, they’ve become a conduit for propaganda. The time permitting the counterfeiting regularly practiced by the Fed. New York Fed, well known as the Federal Reserve system’s After misinforming readers about inflation, another booklet leading policymaker, has produced five very colorful 24-page dealing with this topic points out that “hyperinflation” is very comic books to explain everything the Fed would have us know bad. Is that supposed to be a revelation? It claims that the Fed about money, monetary policy, banking, inflation, and the Fed- is constantly fighting to keep inflation at an “acceptable” level. eral Reserve itself. The title of each book starts with “The Story That’s like saying some amount of cancer is tolerable. The de- of … ” Each truly provides quite a story, but not important facts ception provided proceeds with assurance that the best way to needed to begin pulling our nation out of its economic doldrums. measure inflation is to turn to the federal government’s con- Instead, readers are treated to a deceptive compilation of false- sumer price index (CPI), not to the Fed’s flooding the nation hoods — one story after another to keep Americans in the dark with more unbacked paper currency. about truly serious matters. The Story of Money relates a few basic truths about the his- These color-filled publications are not the first issued by the tory of money and then concludes that the “job of the Federal customarily stodgy New York Fed to promote itself. The artists Reserve System [is to] make sure that the U.S. money supply it employed produced a similarly colorful and similarly unreli- grows at the right rate.” Sadly, many Americans would accept able “The Story of Monetary Policy” in 1996. The Fed’s money that summation without question. But the kind of power held by manipulators must have been pleased with the reception given the Fed enables it to create national booms and busts at will (al- their earlier product. Hence, five more issued during the past though some busts, as now, cannot be controlled), cause praise 18 months. or disapproval to be heaped on the nation’s leaders, and even af- Each is replete with falsehoods and distortions of reality clev- fect the choices of America’s voters. It’s no surprise that none of erly designed to keep Americans from knowing why the value this is admitted in the Fed’s colorful but deceitful presentation. of their dollars is shrinking, why the nation’s economic vitality Another comic book tells us where the Fed supposedly gets is declining, and a great deal more. its power: “The U.S. Constitution gives Congress the power to The Story of Inflation begins, “The dictionary defines infla- coin money, and Congress has decided to delegate that power tion as a substantial and continuing rise in the general price to the Fed.” From “power to coin money” to power to create the level.” That, of course, is as faulty a definition as the claim that Fed? Could any greater distortion of the Constitution exist? This wet streets cause rain. But note that the Fed placed the blame same comic book stresses the importance of the Fed retaining its for this gross falsehood on the dictionary, not itself, meaning “independence.” What’s important to the Fed is secrecy. This is in part that reliance even on a dictionary isn’t always the wis- why no audit of the Fed has ever been conducted, and why the est course. The bulk of the pages in this booklet proceeds from need for such an audit isn’t mentioned in any of the comic books. that totally incorrect definition to shifting blame for inflation’s Another book praises fractional reserve banking, itself a con- scourge away from the Fed toward a variety of other targets, tributor to inflation. Still another claims that Fed independence such as business leaders not producing enough goods. For the is absolutely necessary so it can fight inflation without being record: Inflation is an increase in the quantity of currency (dol- bothered by Congress. It would make as much sense to say that lars) that lowers the value of all currency and results in what burglars should become policemen. appears to be a rise in prices but, in reality, is a reflection of the For free copies of the Fed’s self-serving distortions of real- declining value of everyone’s dollars. ity, each book invites everyone to go to www.newyorkfed.org/ Other than a counterfeiter, no one but the Federal Reserve sys- publications. Recommendation: Don’t share what you receive tem increases the supply of currency. But our government stops with unwary fellow citizens. n 44 THE NEW AMERICAN • SEpTEMbER 27, 2010
  • 43. Speakers’ Tour No one wants to see people suffer due to a lack of medical care, hence ObamaCare was sold as a reform measure to ensure that all can receive care. But only a few pages of legislation would have sufficed to fix the main problems with U.S. healthcare: skyrocketing prices, difficulty buying insurance, and difficulty accessing some physicians. Find out how the 2,500-page bill affects you, your family, your doctor, even your job. Go to JBS.org for tour dates and plan to attend a stop of the Choose Freedom — Stop ObamaCare tour. Mark E. Baxter, MD Mal Mauney, OD Fredrick Pierce, MD J. Michael Ritze, DO, MFSA
  • 44. PRISM: Any medium that resolves a seemingly simple matter into its elements Consultants and administrators Specializing in Tax Deductions for Dental Practices • Post Office Box 7007 • Porter Ranch, CA 91327