SCANDAL! The Associated Press, the IRS and more Government control!
These are volatile days in Washington DC. Not since Watergate have the words “spying,” and “intrusion” been uttered in the same breath as the Federal Government. The converging firestorms of the Associated Press and the IRS controversies are shaking the public trust in government at levels not seen in decades. It also brings a sudden surge of discomfort about the unchecked powers of the Fed and merits a dialogue on the degree and reach of that power within the context of our everyday lives, our money, our property, and our private assets.
The first amendment gives the press the right to publish and distribute news and opinions without government interference. Commonly known as “freedom of the press” this concept has been a treasured characteristic of our open society and a uniquely American ideal. But when the government secretly seized the AP’s phone records, it created outrage throughout the news community. The Associated Press is one of the world’s oldest news gathering organizations, and the dragnet style confiscation of some 20 phone lines used by employees included some of the home phones of AP editors and reporters.
The emerging IRS scandal involves the direct targeting of conservative political groups applying for tax exempt status. The government agency has admitted that it held up applications by groups with the words “Tea Party,” “Patriot” and “We the People” contained in their application names. It also admitted to added scrutiny of those applications along with overly aggressive reviews, unjustified audits, and the leaking of confidential tax data to outside, left-leaning media groups. With all the trappings of a Gestapo-style secret police inquiry, the IRS also apparently requested complete lists of donor names and associations wholly unrelated to the application process.
But the larger issue here is not a political one. Poor management and unchecked power have no party affiliation. The controversies currently unfolding in Washington are merely the implications of excessive federal control and the unprecedented manipulation of the American way. Unchecked government interference permits things like censure of the press, orchestrated national security memos, discriminatory audits, and inequitable taxation. It also permits things that hit our pocketbook like quantitative easing, backdoor bail outs, market meddling, unchecked money printing, and the amassing of a colossal national debt that puts our retirements and savings in jeopardy.
When you invest in paper assets, you are essentially investing in the Federal Government. Yes, this same Federal Government that has demonstrated an astonishing inability to self-regulate or control itself. Whether you are holding stocks, bonds, or a fistful of dollars your financial future, your security, and your ability to acquire wealth is subject to the political whims and manic fixations of Washington.
It’s a good idea to diversify your holdings, particularly now. Whether this is the Nixonian end to a political love affair or the end of the American Era, it’s important to be diligent, prepared, and vested in a solid safe haven.