Special Edition – September 2, 2012

SPECIAL EDITION – MILTON FRIEDMAN’S 5 MYTHS

LABOR DAY LISTENING

I am sure that most of you get the same stuff in your in-box with the subject heading of, “MUST READ.”

Most of it is worthless tripe and a total waste of time.

Well, today I am sending you a “MUST LISTEN” which will get your mind on a more coherent track for the upcoming election – and the actual debate that will be critical to the direction that this country will take for the next 100 years.

Below is a site that airs the classic Milton Friedman speech in which he debunks the five myths of our present day society.  Bear in mind, this speech was given in 1977 – over THIRTY YEARS AGO.  It is more pertinent now, than ever before.

It is long, but try to set aside an hour and teach yourself something that is more useful than a four year degree in economics.

If you are interested, you can go to this site and sign up for FREE, daily information regarding investments, financing and economic factors of our time.

But this is ONLY meant for people who are SERIOUSLY concerned with trying to right our current ship of STATE.

Those of you who simply like to bitch, moan and complain, I suggest that you just keep watching American Idol and getting fatter.

But for those of you who are truly devoted to the betterment of America, I guarantee it will be time well-spent.

http://www.dailymarkets.com/economy/2012/09/02/classic-milton-friedman-video-from-1977/

SOURCE:  www.dailymarkets.com

Again, Happy Labor Day!

Lawrence Klepinger
Editor/Publisher
THE AMERICAN TELEGRAPH

 

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3 Responses to “Special Edition – September 2, 2012”

  • Dick Bachet Says:

    Milton was one of the good guys. But my grandpa had some of this figured out before Milton came on the scene — and let them know how he felt.

    Wisdom From My Grandfather
    (Not to be confused with “Dreams From My Father” by Bill Ayers)

    File this either under “What is past is prologue” or “Everything old is new again.”

    This letter came to my attention many years after my grandfather went to his final reward. I am saddened that he never knew that some of us down-liners inherited his outrage gene. I am further saddened that he and I never had a chance to discuss these matters.

    In the approximately once per generation economic excesses and insanity – almost always triggered by the existence of un-backed fiat paper “money” – a minority of citizens living through the madness grasp what’s going on. But only a small handful speaks out about it.

    I have been speaking out about it since my late friend Tupper Saussy introduced me to Roger Sherman. (Check him out.)

    I am proud that my grandfather was also one of those who spoke out.

    Unfortunately, few have either the desire or capability to grasp the nexus of the problem let alone try to affect the necessary changes.

    Yet we persist, as the alternative is too grim to contemplate.

    And if you don’t think YOU will not be impacted or – like a certain unnamed Atlanta talk jock –think you can “outrun” what’s coming, that flapping sound you may hear are some very BIG buzzards coming home to roost — at YOUR house!

    http://www.youtube.com/watch?v=lIo8FJJMps8

    **************

    Coshocton, Ohio
    May 13, 1938

    Mr. Uncle Sam
    c/o Henry Morgenthau, Jr.
    Washington, D.C.

    My Dear Uncle:

    I am in receipt of a letter dated May 5th, from Mr. Morgenthau, which letter he signed as your Secretary of the Treasury. According to the dictionary, a Treasury is, among other things, a place in which stores of wealth are deposited, and as there does not seem to be any wealth in your Treasury, it would seem that he should have signed the letter as your Treasurer of the Deficit, as, according to the dictionary, a Treasurer is, among other things, an officer who receives the public money and disperses it and, as he has dispersed a great deal more money than he has received, he is in charge of a Deficit, instead of being in charge of the Treasury.

    In his letter, he attempts to persuade me that I should lend you some money by buying Savings Bonds and he states that more than 1,260,000 people own more than $1,600,000,000 maturity value of these bonds, in addition to which, I understand that you owe about $36,000,000,000 on various other kinds of bonds and notes, and that you have a contingent liability of additional billions. In his letter, he states that the savings bonds mature in ten years from the date of issue, and that they may be redeemed for a stated amount at any time after sixty days from the date of issue. This all sounds very impressive, but when these bonds mature, or in case an effort is made to have them redeemed previous to maturity, I am wondering what you will exchange for them. Will it be food, clothing and housing, or will it be 59 cent dollars of some other much greater reduced value, which dollars, as was the case with the German Mark, under similar conditions, may be of value mainly as waste paper?

    When considering an application for a loan, the reputation of the prospective borrower is generally considered to be of first importance, and to be real frank about it, your actions during the past five years have not been such as to inspire confidence in you, as in addition to spending in countless foolish ways, a great deal more than your income, you have not been absolutely honorable, truthful and reliable. After borrowing large sums of money upon the promise to repay it in gold, you decided not to do so. In addition, you took from your nieces and nephews all of the gold which we had and buried it in the hills of Kentucky. I am wondering if you think that by planting it, you can cause it to grow in value, or if, like whiskey, you think the quality of it will improve with age. You are also forcing your nieces and nephews to turn over to you large sums of money, which you have promised to save for us and to return to us when old age overtakes us. Instead of saving this money for us as promised, however, you have been spending it as fast as it is received, in what appears to be nothing more or less than a drunken joy-ride.

    Even though one of your age and experience should realize that it does no good to prime a broken pump, especially after having tried it for several years without success, you continue to prime the business pump, and to kick and cuss it and work on it with a sledgehammer.

    I addition to other things, the frequent use of a hypodermic has done you no good, and probably explains why you penalize and abuse your nieces and nephews who are thrifty and industrious, and reward those who are incompetent and lazy; why you killed five or six million little pigs, even though our political friends are always hungry for pork; and why you destroyed crops of cotton, wheat, corn, etc. to the advantage of producers in other nations.

    Like any incompetent spendthrift who violates all the tried and tested laws of economics, there must be a day of reckoning for you at some time in the future, at which time you will find it impossible to pay your debts, or else you will be obliged to pay them in depreciated currency. In either event, it does not appear to be safe or wise to lend you any more money to be used by you in making whoopee and playing Santa Claus. In order to save you from yourself and to prevent the dissipation of what few assets you may have left, a guardian should be appointed for you but this will take time and probably cannot be accomplished previous to 1940.

    Your distressed nephew,

    Karl W. Bachert

  • john hanrahan Says:

    Well, such appropriate thoughts to think about. I wish you could count how many people listen to his comments; and will they relate to the appropriate issues of today, that have not changed.

    Think hard about who is representing you, and I wish that we could see at minimum, at least 50% of the eligible voters actutually voting!

    It is very worth listening to this speech and with an open mind, and think about what he is saying before drawing conclusions

    I love the point about taxes on “Business” as businesses DO NOT PAY TAXES, people pay taxes.

  • Brian Springer Says:

    I don’t watch American Idol or any other TV programs EXCEPT for ONLY F1 which we get over here in Thailand on racing weekends. Now that is exciting and much more so than the American political drivel.

    Oh and for your statement about the “. . . direction this country will take for the next 100 years”. HUH. That changes every 4 years not every 100.