My letter to my Provinces Finance Minister after a reply I received from himSubmitted by FreedomFighter204 on Tue, 01/29/2013 - 17:25
Dear Manitoba Finance Minister, I didn't quite catch your name
I would like to first of all thank you for responding to my letter, I've been waiting sometime but now clarity has been shown and I thank you for that. Your writing was very informative but I must disagree with you on a number of certain issues you tried to raise in your letter. I hope you take the time to read my opinions but I do understand whoever you are that you are probably a busy person; nether the less I shall begin.
Lets start from the get go, based on your writings I am making the assumption that you are a believer of Keynesian economics: An economic theory stating that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth and stability.
I hope my assumption is incorrect and that you believe in the Austrian theory of economics; it appears I can't find a worth while definition on the internet, Austrian economics preaches free market capitalism, none or very little government intervention, none or very small taxes, property rights and sound currency. Those alone sound awesome with very little understanding of the subject; who would argue against small taxes, the government off my back and a dollar that isn't inflated to high hell making my dollar worthless. However it seems many people are a firm believer in Keynesian economics today; this is because of philosophical shift in thinking in the last century, ever since Nixon claimed Americans "were Keynesian now" has the ideology exploded onto the economic thinking scale.
Now back to your letter good sir or madam; your third section in your letter starting with "The Manitoba Government" is riddled with what unfortunately most people agree on economic growth. I don't understand how you can say how a "small government" approach since 1999 would have been not as efficient as our current state of a billion dollar deficit and over 14.5 billion dollars in debt; so claims the Winnipeg Sun (I don't advise you read that certain paper) compared to a balanced budget and lowering our debt until finally paid off; please explain to me how carrying such a debt and deficit can benefit our Province and a nation as a whole? PUBLIC DEBT is the greatest virtue to be feared, people need to realize this; it is one of the main reasons why Canada and the United States claimed independence from Great Britain, unfortunately we never fully achieved this as we are a common wealth. Back to the fallacy's in this section; you claim that stores like IKEA help economic growth when they frankly don't. To generate wealth you must produce not consume, the only wealth you generate from IKEA is by taxing them and that alone will chase potential business away. Explain how me going and spending 500$ on products made from China help us? The owners of IKEA buys or produces goods over seas at lower tax rates and costs; they then take these goods over to our country and sell them at a marked up price. They take our equity or money away when we purchase these goods; they did not buy materials in Canada to produce these goods themselves and then sell them causing them to generate wealth, they simply took my money and I'm left with their products. Stores like Rona that buy Canadian goods that were produced in Canada generate wealth for when the Canadian producers sell their products to Rona they gain profits via production thus creating wealth. The only way stores like IKEA that sell foreign produced goods help us is if they reinvest their profits into our province like you already pointed out. The next fallacy in this section can be made against yours and many others preaching of job creation generates wealth. Private job growth does help us; whenever a company or corporation creates jobs they get people working and pay them a sum salary, these people then use their money to rather save or consume. However what you failed to mention is that most of Manitoba's job growth is all in the public sectors; this has an entirely different result from the opposite of private jobs. Lets say you hire 50 people to work a government run construction company; they go and build low income housing projects, get paid for their labor and make a "group effort to better the community" this is entirely untrue. If a government wishes to have its own workforce then it must pay for them correct? How do governments get money Minister? By taxation of course. The government must tax its populace to pay for its service with the low income housing construction company; you basically steal my money and then give it to someone else for a service I had NO say in, as well as created an artificial boom in low income housing that wouldn't have been caused if you left the construction to private companies that deal in this; by spending x amount of dollars in this part of the economy, you have now diverted x amount of dollars to something more important, the bust will come shortly after.
Government jobs do nothing but waste resources, capital and equity in the name of SOMEONES PRIVATE SPECIAL INTERESTS that can happen by means of bribery, corruption or selflessness. The next fallacy is how you mention we have the lowest personal debt per capita this is pointless and an off subject factoid. Who cares if I don't owe much money to some company or bank (the bank actually does matter) what matters is if THE PROVINCIAL GOVERNMENT OWES 14+ BILLION DOLLARS in debt. Though your factoid does present cases linked to bettering our economy; until we balance our provinces books and rid our people of the viscous form of taxation called inflation can we have economical growth and stability.
Another one of your sections that I must disagree on with you is how you say governments need to help train special needed workers or create better environments to help teach our workforce. The government should have no say in this because as I pointed out all government jobs must be paid by tax, that's to say if your even paying for the service rather then just racking up more debt. Leave all this to private business and private institutions. Allow them to teach the future employee how to do their job, it wont cost the government a nickel and will create a new field of private jobs. If your worried that the education is poor then the student can CHOOSE TO GO SOMEWHERE ELSE inviting the opportunity for a better run school that carries new private jobs (that goes towards your job creating fallacy) this is only available with free market conditions. Once you start placing monopolies on certain business you drain potential profits and production; why can't someone else create their own auto insurance, why can't someone else create their own garbage truck system, why can't someone else build their own hospital. All your doing is restricting my freedom both economically and in liberty.
Lets now point out how you believe government must be involved in infrastructure, education and transportation. Ill limit myself to these three because my letter is already one with great length. Allow me to begin by saying if governments cared about infrastructure, then why would we have to repave all of our roads again and again. This does nothing and is only a small part of this topic. If you continue to spend money on repairing cheap low grade roads then all we will do is spend our capital and equity away. This does not help the economy it surely helps the road contractor but your missing the point of saving the equity and spending it somewhere else that could provide production or better transportation (like Rebuilding bishop grandon with butterfly loops.. HINT HINT lol) to the residents of our province. Now speaking of transportation lets tackle that very issue; primary discussing our auto transit system. Again you create government jobs that cost us our money with absolutely no consent of our approval, you also then spend HUNDREDS OF MILLIONS of dollars that we don't have racking up more debt on a new "rapid transit" that only helps people get to the U OF M, hmm I wonder what politician had his say in that (probably someone with ties to the U OF M) the number of problems with this are great. First you expand government spending with new jobs needed to be paid by tax or accumulating more debt; next you have created a monopoly on transit, finally you have just wasted a potential private rapid transit system. This all could be adverted when a private institution could have taken over, you would have saved money and resources. While through competition of a free market in transportation would produce better and efficient ways of transportation and lower the cost through competition because there is no MONOPOLY on it. That statement alone makes your autopac claim nullified for if their wasn't a monopoly on it private business could spur up causing competition eventually lowering insurance rates allowing us to save our capital; and even if your argument is true how MPI offers lower rates then you are admitting your creating a bubble in the system that will ultimately end with a crash due to the fixed rate. Finally governments should have no say in education; I will lean to the left and allow governments to run the schools in fiscal terms but they should not dictate what our kids learn. History is full of cases where governments teach nothing but pure propaganda to fulfill certain agendas, don't believe me? take a loot at Hitlar Youth, or the biggest kick in the pants how a ROCKEFELLAR helped create public schools in America? gee I wonder why a family that's acclaimed to a NWO agenda through the UN, bilderberg and NATO would want to run education?
The last and final piece I shall rant about is the what I and many other people including Austain economists believe must be achieved first before any matter i previously discussed can be solved. We as Canadians both as citizens and our government must regain complete control of our MONEY SUPPLY back from private banks. This is one of the issues I believe we must not be able to grant to private hands as well as given a MONOPOLY on. What is our money supply and why would someone want to control it you might ask? Well its the ability to create our currency (not money, money is gold & silver) out of basically thin air. Currently through legislation called the BANK ACT and its various additions; the private banks can loan us out money created by a stroke of a pen at interest with zero reserves. So every time you go to RBC and ask for a mortgage loan of say 200,000 thousand dollars the bank creates that money out of thin air and loans it to you while charging interest. This alone breaks laws of counterfeiting, fraud and theft; however our dully elected politicians have allocated this right of MONOPOLY under legislation in favor of private banks. One of our most beloved Prime Ministers William Lyon Mackenzie King had this to say on the matter “Once a nation parts with the control of its currency and credit, it matters not who makes that nation's laws. Usury, once in control, will wreck any nation. Until the control of the issue of currency and credit is restored to government and recognized as its most conspicuous and sacred responsibility, all talk of the sovereignty of Parliament and of democracy is idle and futile.” He couldn't have said it any better, this is a short version of how this monopoly wrecks us as a nation: When our government wants to borrow money for services we used to go to the Bank of Canada and created an I.O.U (Bond) we then were obliged to pay this loan back to the bank with 0% interest! YES 0% however what we do now is more damaging. Our government now borrows money from private banks that control monopolies on our money; they create this money out of thin air and then loan it to the government we then have to pay back these loans with interest, this is what creates our nations debt, At least 90% of our nations debt is purely interest. Our government must pay close to 200 million dollars a day in interest to these bastards. Now that we know how the monopoly basically financially rapes us we must learn about inflation. Because of the crash in 08 and in previous years our governments have had to do their best to keep the economy afloat before it crumbles down due to the over sized nations debt. Governments implement use of Inflation! inflation is nothing more than merely expanding the money supply. They insert new currency created out of thin air into the economy, this causes our currency's value to drop; this is why shoes are 120$, houses are 300,000$, shirts are 40$ and gas is a 1$ per liter. Why is it back in the 50's you could buy a house for 15,000$? but now it costs you 300,000$ its because of Inflation, the blind tax if you will. If you do not believe me when then I invite you to do your own research Minister, I want you to explain why having a 14.5 trillion dollar debt is healthy as well as a billion dollar deficit thanks to over spending; I want you to explain to me why we engage in this practice of private bank controlling our money through MONOPOLY; I want you to explain why a GERMAN COMPANY PRINTS OUR BILLS OF CREDIT, the same company that printed Zimbabwe hyperinflation bills (yes this is true I'm sorry I didn't cover it)
I'm sorry to have to unload such a letter onto you as this one, I'm merely fed up and pissed off with the way my country practices its economics and economic thinking; I am fed up with Bull Shit minister and I want it to stop. I hope I haven't offended you or pissed you off, I wish for you to write me back and maybe back your ideology for debate reasons; or I hope I have maybe changed your thinking and awoken you. My last paragraph is 100% correct as well and I hope you investigate its words with precision. In the meantime I wish for you to make read a book on austrian economics, a good starter is Peter Schiffs book "How an economy grows and why it crashes" after that read Henry Hazlitt's "Economics in one lesson" And maybe one night cozy up to the online movie called "Oh Canadamove our bought and sold land"
I hope you read my letter and carry its message through legislation