Archive for the ‘Economy’ Category


Monday, February 29th, 2016

NOTE (07MAR2016): Bad news for American youth. The latest Index of Economic Freedom Places these United States of America below the top ten. So it has been for the last eight out of ten years. Yet, many American youth are flocking towards the very evils that will cripple their future — Big Government and those promote it.

“There are none so blind as those who will not see.” -John Heywood (1546)

“Youth is wasted on the young.” -George Bernard Shaw (1856-1950)

“Too Soon Old. Too Late Smart.” -Traditional Saying

“He who controls the present, controls the past. He who controls the past, controls the future.” -George Orwell (1903-1950)

If you’re an American Euro-Caucasian and find yourself younger than thirty-five years of age, be warned of the following:

1) Your past is being destroyed.

2) Your present is being compromised.

3) Your future is being stolen.

Characterized as the “most selfish”, your parents’ generation, as a group, was too involved in “actualizing” itself as individuals to pay proper attention to its children’s upbringing. It relegated its own progeny to secondary importance often left to the mass-media and to quasi-Marxist and outright Marxist-oriented teachers.

“Patience is the foremost virtue.” -Traditional Saying

The Marxist-oriented radicals of the 1960s who preached violence, such as the terrorist Tom Hayden — compatriot of Barack Hussein Obama — realized that their strategy was failing. They altered it to take control measure by measure of the governmental bureaucracy; the mass-media; and, most importantly, education. They succeeded.

“Those who can, do; those who can’t, teach.” -George Bernard Shaw

The Marxists in academia viewed their primary goal in life as being to have indoctrinated you, the youth — indoctrinated you into believing that the Founding Fathers were evil, that collectivism is superior to individualism, that all races are essentially equal if not almost identical, that all cultures are of equal merit, that equal outcome is superior to meritorious outcome, that socialism is superior to capitalism, that the unproductive have a right to the fruits of the productive, that government essentially is good while private enterprise is evil and profit a profanity, that traditional Judeo-Christian morality is unjust and unfair, that licentiousness equals liberty, that peace can be preserved by words not actions, that unpleasant truths should be trumped by pleasant lies — and the list continues.

Let’s take the latest in a long series of schemes to rob you of futures in a land once dedicated to liberty, truth, merit, prosperity, and self-respect — robbing you in the name of protecting you. This latest scheme is the move to deprive you not only of control of your own money; not only to track your every financial transaction; but to steal your money day by day, week by week, month by month, and year by year. How? By abolishing cash-money.

“Abolish cash? Ridiculous!” you say.

Really? The government in Sweden officially not only is planning to abolish cash but to abolish the Swedish people who use it — literally. How? Via allowing unarmed invasions from the Middle East and Africa. Such invasions already have begun.

Consider that, at one time not too long ago, the government of these United States of America printed denominations of currency in notes of $500, $1,000, $5,000, and $10,000. Today, the highest denomination is $100. Over the years, the federal government has reduced the purchasing power of a “C-note” by 96% to a mere $4. Now, it plans to abolish it entirely to be replaced by electronic transfers and plastic cards.

With the current move towards “negative interest rates” (i.e., charging you to lend your money to a governmentally-regulated bank), you will find little opportunity to protect yourself against this legalized larceny. Worse, there’s an overt conspiracy among many countries to participate in this scheme.

As usual, those who promote tyranny claim it will benefit national security and the public good by reducing the evasion of income tax and the selling illegal drugs. The only cost? Just another loss of your liberties; in this case, to have and to hold in cash the fruits of your own labors.

There are simpler remedies to the ills cited; namely, to abolish the income tax not the currency in favor of a national sales-tax and to legalize so-called mind-altering drugs, both of which the politicians oppose. Let’s not forget that the Founding Fathers considered imposing a tax on incomes but rejected the idea. Let’s not forget that the Harrison Act regulating drugs was intended to protect users not to punish them; meanwhile, these United States of America almost singlehandedly have created a market that otherwise wouldn’t exist.

Now, let’s look at a basic, controlling factor in your loss of liberty. The economic foundation of this attack against your liberty is debt. In 1980, these United States went from the largest creditor-nation to the largest-debtor nation. Who did it? Who voted themselves your money? Who stole your future? Who will continue to do so until nothing remains to steal?

The government has become your master. We, the citizenry, its servants. In order to maintain tranquility, the government promotes dependence. Medicare. Medicaid. Food stamps. Welfare. All are examples.

The problem is that the politicians haven’t been able to pay for their schemes via legitimate, moral means. The only alternative? Theft — ultimately, from you, the youth. You are the future. The current parasites at the polling places soon will become the past. They cannot and will not pay for themselves. Only you can pay for them — and pay you will! There will be nothing remaining for you — guaranteed!

In order to relieve the burden of debt, for decades the government has been robbing the future citizenry via the tyranny of inflation; nevertheless, even that theft has proven insufficient. In order to buy votes, it has relieved increasing numbers of Americans from paying taxes. Half of Americans now pay no federal income-tax, whatsoever.

“Soak the rich!” The traditional cry of governmental tyrants and thieving politicians. Bad news! The rich aren’t sufficiently rich to pay for the governmental profligacy. Only the middle class is, but it’s dwindling to the point of becoming an endangered species.

Behavior is a function of the context in which it occurs, the antecedents that prompt it, and the consequences that follow it. The current context is a declining nation now on fire. The current antecedent is the demand for increasing governmental largesse. The behavior is continued borrowing from you, the youth. The short-term consequence is the politicians staying in office. The long-term consequence is disaster — political, economic, military, and sociological. The disaster will be yours to live.

What can you do? Vote! On every ballot, write-in the following: “None of the above!”

Demand of your elected representatives that they protect this nation by protecting you. How? There is a way. Use it, or surrender your liberty and your future.

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Monday, January 19th, 2015

“It is well enough that people of the nation do not understand our banking and money system, for if they did, I believe there would be a revolution before tomorrow morning.” -Henry Ford (1863-1947), founder of the Ford Motor Company

Some observers might be asking themselves, “What maniacs are in charge of the international monetary system?”

That whoever they may be are governmental thieves is bad enough, but maniacs, as well? It can make a productive citizen cry. No? Ask the 2,000,000 workers in the USA who’ve lost their manufacturing jobs since 2007 or the 15,000 businessmen who’ve closed their factories.(1)

Recovery in manufacturing? What recovery?

Let’s look at the latest example of the madness. Again, the Swiss National Bank intervened to manipulate the value of its currency . . . this time reversing its previous intervention of three years previous. Consequence cognitively? Uncertainty. Consequence emotionally? Anxiety. Consequence behaviorally? Volatility. Hey, behavior has its consequences.

Is the agreement among the trans-national tax-bandits, explicit or implicit, unraveling? If so, hope for the best but expect the worst.

Say, isn’t it only right that these governmental thieves lose control of their evil ship “Larceny”? Some would say so.

Admittedly, in running aground, it may inflict damage beyond that which even their critics could have predicted, but, then again, who elects the bozos . . . the power-hungry politicians . . . who appoint and confirm the misguided central bankers? We, the voters, do!

Truly, Switzerland may be small geographically, but it possesses disproportionate, economic power. When a butterfly flaps its wings, can it cause a tsunami to occur in Asia?

Cluck. Cluck.

Alright, forget about butterflies. How about chickens? Are the proverbial chickens coming home to roost?

For several years, the central bankers have been engaging in a game of “chicken” in their race to the bottom. Now, some players seem to be opting out of that lethal game. Consequence? Economic anarchy. Consequence of allowing economic anarchy? Economic tyranny. Consequence of imposing economic tyranny? Political tyranny. Say it again, behavior has its consequences.

“Put not your trust in princes,
Nor in the son of man in whom there is no help.” -Psalms 146:3

Did the sages of old know something that we’ve forgotten or, more likely, chosen to ignore? If the chickens, indeed, are coming home to roost, our collective goose is cooked. Still trust in men over virtue? Still trust in men over Science and the Scientific Method with its guidelines of specificity, objectivity, and accountability? Still trust in central bankers with their misguided ideologies and ill-conceived theories over free markets, would that there were some?

Isn’t there a better way? Yes. Shall we employ it ( Not likely.

“Mundus vult decipi, ergo decipiatur. The world wants to be deceived, so let it be deceived,” said Petronius in the 1st-century A.D.

“Tell the morons what they want to hear,” say the politicians of today.

1. Barron’s. 19JAN2015, page 14.

Note (19JAN2015): Given the state of international economics, this posting will run for two weeks.


Monday, January 5th, 2015

NOTE (12JAN2015): As the noose tightens around the collective necks of the central bankers, that which passes for the civilized world awaits Mr. Draghi’s decision . . . the decision if and when to violate further the charters of the European Union and the European Central Bank. It’s enough to shake citizens’ confidences and trusts in their politicians and bureaucrats.

Here in the USA with Mrs. Yellen and her cabal of self-styled experts whose predictions invariably prove wrong; well, what’s to be written, given the deafening amplitude of the data speaking for themselves? Yes, a wee nuance here . . . a wee nuance there, just sufficient to maintain the lofty elevation of the financial markets reflecting farce not fundamentals and prevent the total collapse of real estate reflecting debt not equity. Meanwhile, Mr. & Mrs. America on Main Street . . . apologies to Miss Single Mom on Dole Street . . . continue getting the proverbial shaft up the you-know-where as the power-hungry politicians and their loyal, self-serving bureaucrats buy the votes of the undeserving unproductive at the expense of the worthy productive who pay more in taxes than they receive in return.

Why, it’s enough to make a grown man . . . or woman, for that matter . . . weep; provided, that is, that you represent one of the few, virtuous citizens left in this nation on fire. Given the gravity of this weighty matter, this posting will run another week for those who might’ve missed it but, nevertheless, have, at the very least, a passing interest in perusing it.

“Yesterday, Dec. 7, 1941 – a date which will live in infamy – the United States of America was suddenly and deliberately attacked by naval and air forces of the Empire of Japan.” -President Franklin D. Roosevelt (FDR, 07DEC1941)

If it had been one day of infamy, it had been preceded some years earlier by two days of infamy — days that would have a longer lasting and more damaging consequence than even the Japanese military attack against Pearl Harbor. Those two days occurred on 22DEC1913 and 23DEC1913. The Congress of the United States of America, at the urging of the so-called Progressive and newly-elected, Democratic President Woodrow Wilson, passed legislation creating the now infamous Federal Reserve Board (FRB) with its twelve Federal Reserve Banks, the primary and most powerful of which was and is in New York City.

“Banking was conceived in iniquity and was born in sin. The bankers own the earth. Take it away from them but leave them the power to create money, and, with the flick of the pen, they will create enough deposits to buy it back again. However, take away from them the power to create money and all the great fortunes like mine will disappear, and they ought to disappear for this would be a happier and better world to live in. But, if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create money.” -Sir Josiah Stamp (1880-1941), President of the Bank of England in the 1920s.

Between its creation and today, the Federal Reserve Board has debased the currency of the nation by 96%. A note worth $1.00 in 1914, in 2014, retained the purchasing power of $0.04 in 1914 — a mere 4% of the original!

Big Media today bleats incessantly about the “strong dollar”. What “strong dollar”? Weak dollar would be more truthful.

So, let’s pick a date, say, a dozen years ago or so — 23AUG2002. How strong was the U.S. dollar then against some other major currencies? The Australian dollar? 1USD = AUD1.84; today 1USD = 1.24AUD. The Chinese yuan? 1USD = 8.28CNY; today 1USD = 6.21CNY. The New Zealand dollar? 1USD = 2.15NZD; today 1USD = 1.30NZD. The Swiss franc? 1USD = 1.52CHF; today 1USD = 1.00CHF. The Swedish Krona? 1USD = 9.49SEK; today 1USD = 7.91SEK. Such comparisons hardly point to a “strong dollar”.

Admittedly, the U.S. dollar was weaker in 2002 against the Euro and about the same against the British pound. Even so, today the United States has a weak dollar not a strong one as a consequence of the action of the FRB.

“Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal reserve banks. The Federal Reserve Board, a Government Board, has cheated the Government of the United States and the people of the United States out of enough money to pay the national debt. The depredations and the iniquities of the Federal Reserve Board and the Federal reserve banks acting together have cost this country enough money to pay the national debt several times over. This evil institution has impoverished and ruined the people of the United States; has bankrupted itself, and has practically bankrupted our Government. It has done this through the maladministration of that law by which the Federal Reserve Board, and through the corrupt practices of the moneyed vultures who control it.” -Rep. Louis T. McFadden, 1932

Surely, Rep, McFadden was a controversial character, but was he wrong in his characterization of the FRB? Has subsequent history proven him right?

“Inflation is taxation without legislation.” -Milton Friedman (1912-2006)

Between 1913 and today, someone stole $0.96 of every dollar. Who? That late-economist from the University of Chicago well knew the answer — the politicians and bureaucrats in the federal government. Those who created fiat-money via the FRB then taxed that which they had created.

“The woman Folly is riotous;
She is thoughtlessness and knoweth nothing.” -Proverbs 9:13

Fourteen years after the birth of their monetary monster, the financial folly of the politicians finally took its toll. The year was 1927.

Four men gathered at a private estate on Long Island for a meeting, the consequences of which would be disastrous for America. Who were these men with so much power that they could bring the greatest and most prosperous nation on Earth to the brink of total ruin? All four were bankers — central bankers.

“I believe that banking institutions are more dangerous to our liberties than standing armies.” -Thomas Jefferson (1743-1826), U.S. President 1801-9.

Truer words never were uttered than those few by Jefferson. At that meeting on Long Island in 1927, the four central bankers confirmed the validity of Jefferson’s observation. The four were the following: Montagu Norman, Governor of the Bank of England; Charles Rist, Deputy Governor of the Banque de France; Hjalmar Schacht, President of the Reichsbank in Germany; and Benjamin Strong, Governor of the Federal Reserve Bank of New York.

After the Great War, America had fallen into an economic depression. In 1921, the newly-elected Republican President, Warren Harding, disregarding the unsound advice of his Secretary of Commerce, Herbert Hoover, embraced the sound advice of his Secretary of the Treasury, Andrew Mellon, by lowering taxes and cutting federal spending; thereby, returning the United States to the path to Prosperity.

By the time of the meeting in 1927, economic growth in the USA was more than 3% while inflation remained at 0%. Danger, however, hovered. The stock-market was booming, fueled by easy money from the FRB and by mounting consumers’ debt.  Decades later, another inept and misguided Chairman of the FRB would characterize the phenomenon as “irrational exuberance” while perpetuating the context that generated the madness.

In contrast, Europe had remained in the economic doldrums after the Great War, its entire economy less than that of the American. Half the international supply of gold had migrated to the USA.  A booming USA was seeking new international markets for its industrial wares. Relative poverty, however, created a poor context for European buying-behavior.

“Hell is full of good intentions or desires.” -Saint Bernard of Clairvaux (1091-1153)

Intending to stimulate European economies, Chairman Strong promised to lower the discount rate despite an economic field fertilized by the manure of mounting debt. His inept and misguided intention was to have holders of American assets move them to Europe in order to gain a higher return. He predicted that the supposed consequence of sending financial assets to Europe would be increased value of European currencies followed by increased, European trade with the USA.

Predictions are one thing. Events are another.

As Strong demonstrated, economics is not a science. The function of science is to predict and, where possible, to control; astronomy being a science that can predict but not control, at least currently. Economics neither can predict nor control, as the error of the four central bankers on Long Island in 1927 subsequently would prove. Often called “the dismal science”, economics may be dismal, but it is not a science.

In 1927, Strong’s decreasing the interest-rates further fertilized the economic field with even more debt. The paper-value of stocks doubled in 1928, not fueled by productive fundamentals but fertilized by destructive debt. In October 1929 came the real consequence — the Great Crash.

The electorate blamed the White House. The real culprit was the FRB.

“We have tried spending money. We are spending more than we have ever spent before, and it does not work.” -Henry Morgenthau, Secretary of the Treasury (1934-1945)

The Great Crash, however, provided President Hoover the opportunity to become Strong’s accessory by putting into play his own unsound advice of 1920. Presaging the ill-conceived bleating of Lord Keynes in the 1930s, he converted that which likely might have been a moderate, economic setback into a severe, economic collapse. Moreover, he created the context for his successor, FDR, to accelerate his unsound actions, thereby, deepening the downwards-spiraling depression.

“The only thing we learn from history is that we learn nothing from history.” -Friedrich Hegel (1770-1831)

So, what have we Americans learned from the folly of those forebears? Given the recent antics of Greenspan, Bernanke, and Yellen, apparently very little.

“To relieve the present exigency is always the object which principally interests those immediately concerned in the administration of public affairs. The future liberation of public revenue they leave to the care of posterity.” -Adam Smith, The Wealth of Nations (1776)

Sound familiar? The economic antics of Strong’s latest successors combined with the political antics of Bush the Second and Obama have been leading America down the path to Perdition. Long-term consequences be damned! Economic pain for the electorate means no political gain for the politicians.

In more recent times, serial military defeats have been sapping Americans’ confidence in America. Mounting debt has been feeding upon itself to fend off another seemingly inevitable Great Crash. Self-degradation has been destroying traditional American ideals and values. Loss of liberty in the name of security has been imposing tyranny — economic, political, and sociological.

“An autopsy of history would show that all great nations commit suicide.” -Arnold Toynbee (1889-1975)

Where will the current trend end? The suicide of the United States as we have known them? If so, can the trend be reversed? How painful will doing so be?

“Mundus vult decipi, ergo decipiatur. The world wants to be deceived, so let it be deceived.” -Petronius (1st-century A.D.)

Continuing down the path to Perdition ultimately leads to an unintended and unwanted destination. Listening to deceitful, power-hungry politicians echoed by their ideologically-driven, self-serving bureaucrats may make the populace feel more comfortable short-term; but those lofty lies and hollow promises make the populace suffer long-term. Already, the Chinese view America as a “nation in terminal decline”.

“God watches out for little children, fools, drunks and the United States of America.” -Otto von Bismark (1815-1898)

Heretofore, God has bestowed His grace onto the United States of America. For how much longer, however, will He continue to protect us from our own folly?

Can the current trend be reversed? Is there a road to Redemption? If so, it must be paved with scientific principles, principles that others and we ourselves steadfastly have refused even to recognize, let alone to adopt; otherwise, it will prove merely a detour still on the path to Perdition (

“The light of life is insufficiently bright to overcome the darkness of reality.” -Erich Maria Remarque (1898-1970)

By refusing to reverse course; by listening to the lofty lies and hollow promises of power-hungry politicians and their self-serving bureaucrats; by promoting defeat over victory; by incurring debt over credit; by suppressing common decency over the basest of our animalistic instincts; and by sacrificing our precious liberty for a phony sense of security, shall we not bring to bitter fruition Remarque’s words?


Monday, June 30th, 2014

“No prison has higher walls nor thicker bars than old age and poverty.” –The Millionaire (1933)

Hey Americans, want to hear another losing proposition? Save for your old age.

With the federal government robbing savers via taxes and inflation, saving for old age has become a losing proposition. Guess what? It’s just the way the quasi-Marxists in academia, government, and the media want it.

“Not to worry!” they assure an increasingly indoctrinated, American youth. “Allow us to continue telling you what you want to hear. Look, with Social Security, Medicare, Food Stamps, and so on the government can and will take care of you. Humanism at its best.”

Consequence? An American public increasingly apathetic, passive, and dependent. Just the way the quasi-Marxists in academia, government, and the media want it.

Was this consequence the vision that the Founding Fathers had for America? Not likely.

How about an alternative? Government limited. Lawyerism abolished. Education effective. Medical delivery optimal.

Want more? Real capitalism with sound money. Savings encouraged and debt discouraged . . . both private and public. Victories not defeats. Individualism not collectivism.

In a context of satiation, as a nation too many Americans have come to want immediate gratification of their basest instincts at no cost to them but their liberty and their souls. For them, as the lyrics to the song say, “Freedom’s just another word for nothing left to lose.”

Well, folks, licentiousness is not just another word for liberty. They are not synonyms.

Also, licentiousness is rising as you may have noticed. Meanwhile, liberty is waning as you may not have noticed, especially be you young.

Forget for a moment how we prefer to see ourselves. How do others see us? After all, if you want to know the truth about yourself, don’t ask your friends . . . ask your enemies; they’ll be pleased to tell you.

The Chinese, for one, view America as a “nation in terminal decline”. If they’re right, and they seem to be, can we reverse the course?

Can we become a moral people promoting honesty, candor, individual responsibility . . . favoring savings over debt, victory over defeat, decency over degeneracy . . . seeking wisdom through knowledge and exploration? Yes, we can (

Ah, but given current trends, shall we? Without a revolution in mind and spirit, fat chance!

Inescapable consequences, given current trends? Debt, defeat, degradation, and despair . . . oh, and don’t forget tyranny. Welcome to the New America, where saving for your old age in U.S. dollars has become a losing proposition, leaving the old to survive by financially devouring the young.

Mundus vult decipi, ergo decipiatur.” -Petronius (1st-century A.D.). Rephrased . . . If we Americans want to be deceived, we Americans shall be deceived.