But Now You Know

The search for truth in human action

It’s Not Even an Effing Mosque


The official story…to my puzzlement, not contradicted by even the people against it…is that some Muslims, who may or may not be secretly part of a terrorist organization or something, are building a mosque across from where the World Trade Center was destroyed by some Muslims.

If this were the truth, I’d be sympathetic with the hue and cry against it.

But it’s not. The above story is absolutely false, even in its basic facts.

It’s Not a Mosque

This is the Park51 building, as planned. Does it look like a mosque, to you?

First, the Park51 building won’t be a mosque. It will be a “community center” that will contain, like a Catholic community center, a 500-seat auditorium, theater, performing arts center, fitness center, swimming pool, basketball court, childcare area, bookstore, culinary school, art studio, food court, September 11th memorial, and a prayer area. Sounds more like a YMCA, to me.

Now nobody calls a Christian community center a church, of course. Even though it contains a chapel, it’s simply not a church.

And an Islamic community center one is not really a mosque.

The People Building it Are Sufi

Pretty much all of the terrorist organizations in the world that are focused on the United States are Wahhabi, funded and trained by our allies in Saudi Arabia, and often closely coordinated with our allies in the Pakistani military.

Wahhabism is a crackpot fundamentalist version of Sunni Islam. Think of Sunni as being like Protestantism, a relatively liberal branch of the religion overall, and Wahhabism as being like the Protestants who dance with snakes and talk in tongues.

Meanwhile, most of the rest of the terrorist organizations in the world that are Islamic at all are Shi’ite. This is the largest of the three branches of Islam, and the most basic one, with an older lineage than Sunni Islam. Think of that as being somewhat like Catholicism…most Shi’ites are peaceful, but you have the crazies, like the Irish Republican Army is for Catholicism. You can’t really blame the rest for those nutjobs in the IRA targeting other peoples and religions.

And then you have the Sufi. These are a bit like the Mormons are to Christianity. They’re a “third way” sort of group, very peaceful and focused a lot on mysticism and spirituality, not the practical mechanics of the Big Two. No terrorist organizations, in the whole world, are Sufi. Some Muslims say they’re so different that the Sufi aren’t even Muslims, at all.

The people building the Park51 community center across from the World Trade Center are Sufi.

“Muslims” Didn’t Attack on 9-11, Specific Crackpots Did

Remember when those guys blew up a Federal building in Oklahoma City? The OKC Bombing?

They were Catholic. Did “Christians” blow it up?

What if people had then protested that a Mormon Temple couldn’t be built across from the ruins, because “Christians attacked us there, it’s adding insult to injury!”

Associating the Mormons with some Catholics (they were) who attacked America on that day would be insane. Since we understand Christianity here, we see that immediately.

But hey, at least it’d be an actual Mormon temple. This isn’t even a mosque we’re talking about here.

Sinead O'Conner crazily associating all Catholics with the IRA terrorists

So OK, what if it was a YMCA (that’s the Young Men’s Christian Association), being built across from where the Irish Republican Army had slaughtered a bunch of Protestants?

Protesting because the YMCA is Christian like the IRA would be laughable…because we understand the huge difference.

Well, the difference between the Sufi community center and the Wahhabi terrorists is like multiplying the OKC/Mormon difference TIMES the IRA/YMCA difference.

Funny, both of the most obvious Christian Terrorist examples I came up with were Catholic. Does this mean Catholics are terrorists? Hopefully, you have enough sense to realize it has nothing to do with Catholicism, even though the IRA actually believe it does.

The same is true of even the two branches of Islam that have terrorists in them. But it’s triply true of the Sufi, THE ONE BRANCH, of the three, that has NO terrorist organizations at all.

Nobody wanted to build ANYTHING in that spot, from the day it was damaged by debris on 9-11, until these Sufi decided to build Park51, their equivalent of a YMCA, there.

And we’re going to throw a tantrum about it? We should be high-fiving them, instead.

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August 23, 2010 Posted by | International, Politics, Religion | , , , , , , , , , , , , , , , , , , , , , , , , , | 5 Comments

Where’s the Hyperinflation?


When the unaccountable, secretive arm of the banking industry known as the Federal Reserve started lending itself (the banking industry) billions of newly invented dollars, late last year, responsible people all over America were horrified.

Some of the soundest economic minds even started predicting “hyperinflation”.

Well, it’s been three quarters, now…soon it’ll be a year.

“Where,” other people are saying, “oh where is that oh-so-scary hyperinflation?”

The answer comes in several parts:

What is Hyperinflation? Hyperinflation is a specific thing. It’s not the three percent inflation we normally “enjoy”, any more than it’s a flavor of cream pie. We must define what it is, in order to know if it happens.

What Causes Hyperinflation? Having defined it, we need to know if the things that cause it are happening. The Fed has printed new money for nearly 100 years, never with hyperinflation. Is what happened recently sufficient to change that?

How Long Would it Take? Is it too late? It’s been nine months; are we safe?

Well, Let’s See

What is hyperinflation?

An actually hyperinflated currency, the Zimbabwe dollar was so weak that this is a single note for one hundred TRILLION. The Fed would have to print fifty times as much as it did last fall, in order to match this ONE bill.

(caption: An actually hyperinflated currency; the Zimbabwe dollar was so weak that this is a single note for one hundred TRILLION. At the rate it printed money for two months last fall, the Fed would still need over eight years just to print enough to equal this one scrap of paper)

Well, “inflation” is when you increase the amount of money, or the supply of it compared to the demand for goods in society…but when non-economists say “inflation”, they usually mean “prices go up”.

And so “hyperinflation” is just “prices going up really, really fast”. The amount necessary to count is generally said to be “100% per year for three years”, for long-term hyperinflation, or else “50% per month” for short-term hyperinflation.

The most inflation we’ve ever suffered, in the 1970s, was less than 14% per year. Normally, it’s between 2% and 3%.

Right now, prices are going DOWN most months, not up. There isn’t even price stability now, much less price inflation.

But why would prices be going up OR down, in an unhealthy way?

Super-quick history:

Almost exactly 100 years ago, in 1907, the US suffered yet another in a long series of destructive depressions and panics, generally caused by money shortages creating runs on banks, price failures, stock market crashes, et cetera.

But this one was stopped dead in its tracks by a group of wealthy entrepreneurs who made very short-term loans to various financial groups, allowing banks to pay off depositors, et cetera. The result was the downturn cut short, never becoming a full-blown depression.

A brilliant lesson was about to be learned, but unfortunately government prevented that. Instead of a newish industry of short-term finance lenders/insurers springing up, the Federal Government announced it was going to act in that role, from now on. It created the Federal Reserve, which would use its coercive power to print imaginary new money to lend to financial institutions in times of crisis.

(Sadly, it did the opposite; it lent out newly minted money in good times, but tended to cut it off whenever there was a financial panic, which was the only time it was supposed to lend in the first place…this is part of what triggered the start of the Great Depression in 1929)

Well, the Fed is a whole other discussion, of course, so we’re going to skip ahead, now

Today:

So instead of lending out money during a crisis, the Federal Reserve increases the amount of money a few percent per year, lending it out in good times. This is part of why we have (usually moderate) inflation…the amount of money increases faster than the demand for goods, so there’s more money to spend than stuff to buy, and prices increase.

But from 2004 through 2008, the Fed did something it hadn’t done since 1938 when we went off the Gold Standard: It started DECREASING money supply:

(caption: Notice that M1, paper money and money in US banks, shrinks (goes below 0 growth) from 2004-2008)

(caption: Notice that M1, paper money and electronic money in US banks, shrinks (goes below 0 growth) from 2004-2008)

Notice that the most important line, the red M1, goes below zero (to shrinking money), and stays negative longer than it had been at any but one time in fifty years. And currency (actual paper money) falls lower than ANY time in that span.

This is because M3, which includes money in foreign banks, was going up so quickly: Money was fleeing the US because of our wars, and the 700% inflated oil prices, and our billions in new foreign aid. We would buy oil that should have cost a few hundred billion, but instead cost us trillions, and send the money for that oil to Saudi Arabia, and other foreign countries.

Over the course of four years, this added up to a shortfall of between two and three trillion dollars in the domestic US economy. That money was all overseas.

Here comes deflation

The Federal Reserve cannot possibly keep money supply balanced, as illustrated by the recent deflation

(caption: The Fed's monopoly could never work better than any other monopoly, and now it's produced deflation)

This didn’t even leave enough money to pay for our normal goods, much less allow the economy to grow…plus, of course, the cost of making things was shooting up from the high oil prices, as all things require energy, while there was LESS money to cover that universal new expense.

The result? Deflation, and therefore a money shortage, that led to the economic depression starting in 2008. There was not enough money to run the economy, so prices began FALLING, the US suffering what appeared to be a “loss” of about three trillion dollars. This was simply the change in prices to represent the trillions missing because of M1 shrinking for four years.

The Federal Reserve’s response? It actually CUT its offered money supply in 2008, by refusing to lend to banks suffering financial trauma…once again failing to act in its sole official role of “lender of last resort” as in 1907.

But it couldn’t keep that up, because deflation destroys a market economy.

So, once this cutting off of emergency money caused the banks to start failing, the Fed belatedly loosened its purse strings: It lend out over two trillion dollars to financial institutions, in just a few months.

Is It Enough to be Hyper?

Now if the Fed did this all the time, lending out a trillion dollars each month when the economy was just fine, we might really have hyperinflation.

But, instead, the Fed did this ONE TIME, starting from a money deficit of three trillion dollars.

So, in fact, what it did was produce enough new money to, hopefully, make up for the money shortage.

Being down trillions of dollars, then adding two trillion, could not make prices double every year. Or even once.

Even if there had been no shortage, two trillion is not enough to increase prices by 50% every month, nor 100% every year, because it is a fraction of the many trillions of dollars in our economy, and only happened one time. Hyperinflation requires more money to be printed even as prices are going through the roof, so that people come to expect it and overprice things ahead of time.

But, even if it had been enough to cause hyperinflation, there’s one last big factor:

Time delay.

How Long?

We can’t guarantee that there will be NO backlash from this infusion of money, until about 18 months have passed. Historically, changes in money supply take between 6 and 18 months to hit prices in an economy. It has to gradually spread throughout the system, being spent, invested, and saved over and again, until its full impact is felt and absorbed.

So we have until mid 2010 to see whether there are SOME effects from the unhealthy throwing of two trillion unearned dollars at our socialized banking institutions.

What About Government Spending?

For better or worse, it is actually impossible for government spending to “stimulate” an economy, at all. And since the current “stimulus packages” are financed by bonds and deficit, not the printing of money, they are actually DE-Flationary. Read the above link, to understand exactly why these things are so.

Sorry, Not Even Close

But, ultimately, whatever backlash there is, it cannot be hyperinflation. With an economy of, depending on how you count, eight to twelve trillion dollars, you can’t make prices jump even 50%, even for ONE month (and it must keep happening, to be hyper), by printing two trillion new dollars. Not even if there were not already deflation to counter.

The great danger, to this day, is deflation, not inflation, which can produce a long-term spiral of economic depression

The great danger, to this day, is deflation, not inflation, which can produce a long-term spiral of economic depression. What's worse, is that the Consumer Price Index, adjusted to compensate for annual cycles like Christmas spending and winter energy prices, showed deflation six months earlier than this chart.

July 25, 2009 Posted by | Economy, Politics | , , , , , , , , , , , , , , , | 26 Comments

   

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