Archive for the ‘Uncategorized’ Category

Preparedness

Saturday, September 9th, 2017

Dear Friends,

It seems to me… it is better to be prepared than to be ready to act. No matter how fast on your feet you might be, catastrophe often is sudden and unexpected, as it was during hurricane Harvey. When disaster comes, those who are the most likely to come out on top are not the strongest, smartest nor the fastest, but the most prepared, the wisest. Preparation need not cost much either, what does a few cases of water and some canned food stashed in the basement cost? Nor is preparedness difficult, how hard is it to learn to shoot a gun? Many of us think that a disaster only happens other places, the coast, near volcanoes or just to other people. The truth however is that a catastrophe can happen anywhere at any time and need not be local. Isn’t it better then to prepare and watch everyone else working hard, running fast and struggling to get a meager case of water? Moreover, those who prepare are a godsend to those who haven’t after a calamity.

Since the Solar eclipse, there has been a steady stream of cataclysms, from Harvey inundating Houston and the solar flare threatening our electronic infrastructure, to Irma flattening Caribbean Islands and now aiming it’s wrath at Florida, so it should be obvious to everyone that we are all susceptible to natural and man made disasters. There is not a place on Earth that is not occasionally subject to some type of catastrophe, whether it be flooding, hurricane, earthquakes, volcanoes, blizzards, tsunamis and even the long tailed events like meteor strikes, solar EMPs and super volcanoes. We live on a dynamic, ever changing planet and as such, only the Pollianish believe they are immune.

The first part of preparation should be to choose a home that is not in a flood plain, next to a smoldering volcano, on a coast subject to regular tsunamis or on an earthquake fault. Amazingly, these are the exact places where real estate is the most expensive! Everyone wants to live by the ocean, on flat land and with an astounding view of Mount Saint Helens. Of course, these are the very places where preparation is the most important, because they are the very places where you are certain to experience a disaster. Since no amount of preparation can save you if your home is covered in fifty feet of red hot ash, ten feet underwater or flattened in a hurricane, all of us should have a plan to flee if we are forced to. Those who rely on the government in case of a disaster are the ones who experience the worse results. Look at all the people who fled to the Superdome during Katrina. Do you want your family to end up in a FEMA camp?

While no amount of preparation could have saved you if you lived in Pompeii or Herculaneum, sometimes the only answer is to flee, but even then a well thought out plan of action in such an event, is much better than running screaming, with your arms in the air as the pyroclastic cloud races toward you and your family, at sixty miles an hour. You are not going to outrun that! On the plus side, maybe in a few thousand years some archaeologist will fill the void left by your rotted corpse with plaster, and make a grotesque statue of your last moments. Thin comfort that. There is more to fleeing than running helter skelter. You have to think long and hard beforehand, where will I go, what will I bring, how will I get there and have a backup plan if any of these scenarios become unworkable.

Those who survive, are most likely the ones who have thought out a plan, prepared and acted on that plan. Driving down a road that has become a raging river to escape a flood is never the best option. With all the disasters we have seen recently, do you want to be the guy on the evening news stranded in his Suburban in the middle of a torrent, begging the news camera for help? Do you think that guy thought it out? Be the person who thinks it out, build or buy where catastrophes are less likely, have water sources not dependent on the local infrastructure if possible, have food and water stored and have a plan of escape. You are not immune nor are you too important to face death by disaster. Imagine how terrible it would be, to loose a beloved child or even dog to a cataclysm, when it could have been avoided by burning a few calories beforehand, thinking about what you would do? Be safe, be a blessing to those who haven’t planned… and God bless.

Sincerely,

John Pepin

The Most Valuable Piece of Real Estate In the Solar System

Thursday, December 15th, 2016

Dear Friends,

It seems to me, the most valuable piece of real estate in the solar system today, is the south pole of the Moon. Humanity is going into space, there is far too much opportunity there to ignore, and so the people who get to the most valuable places first, will get rich. How can we tell which will be the most valuable places, by the readily accessible access to the basics, water, solar energy, minerals and cover, in that order. Whomever gets to those resources and learns to exploit them, will become very wealthy, as well as have the ability to effect the course of humanity for centuries. To that end, the south pole of the Moon is perfect, as it has been proven there is ice frozen at the bottom of the largest crater there, and the rim has access to the sun all day every day. Of course, since there are abundant valuable natural resources there, whomever gets there first will either be obliged to defend it, else cede it to those willing to fight for it.

Unless we destroy ourselves, our children and grandchildren will be the first generation to really go into and colonize space. Literally unlimited natural resources are out there. There would be no need to limit the human population, due to some limit of an ecosystem, dreamed up by someone who calls himself a scientist? In fact it would behoove us to increase our rate of population growth. Imagine a society where everyone had all their needs met, in spades, because the old paradigm of perpetual shortages is replaced with one of perpetual gluts? In such a society most people would rot in their own lazy skin, but there would be many who would create, invent and build. Moreover, not only a privileged class could invent, but anyone with a mind to. Space, coupled with robotics, opens up that possibility to humanity.

If we accept then as a premise, people will go into space, then there is a huge opportunity to make money. Looking at past episodes of natural resource exploitation, we see that while huge gobs of money is made by those prospecting and working a claim, the real money is for the guys who sell the equipment to prospect and work a claim. In space, instead of Levi pants, canned beans and pans, they will need air, water, and the means of production. The first one there gets to set up shop but timing is everything. You don’t want to get there too quick, if someone had got to the gold fields of California ten years too early, and set up a store, they would probably have gone out of business long before the gold rush was on.

The next thing mankind has to do in our expansion into space is to build a Moon base. Building a Mars base is way too soon. A Moon base would have several advantages that make it a far better candidate. First, we can get to it in a matter of days, if the infrastructure is in place, which means people there who get in trouble can be rescued within a week. Making it far more survivable in an emergency. Rest assured, until the technology is honed there will be emergencies. Those emergencies on the Moon will be a learning experience but on Mars would be catastrophes. The cost will be exponentially less for exponentially more of everything, science, engineering, lunar habitation ecosystems, exploitable resources, etc…. Once the bugs have been ironed out on the Moon Mars would be a logical next step. Since the Moon is logically our next step, I say, grab the high ground.

The guy who went into the wild country, settled it and made way for the gold rush got rich, who’s land do you think they panned for gold? On the Moon, initially, the gold will be water. Once access to water, and therefore air has been established, and the market for it has reached equilibrium, other minerals and gasses will become the primary incentive for expansion. There may be water other places on the Moon, at the north pole, encased in regolith that has been covered over by basalt, comets embedded under the surface, etc… but there is only one known reserve, the south pole. That will be the maker of fortunes for some, and the misfortune of others, if the timing isn’t right.

If we want that expansion into space to benefit humanity the most, then we should be looking to create conditions where expansion, innovation and access to ownership of the means of production are paramount. Ideally there would be some compartmentalization of the various businesses of space travel. The companies that lift mass from Earth would compete against each other, but not with companies that prospect for resources, and those companies that created and maintain living quarters wouldn’t compete with firms that process water, as a passive way to prevent monopolies from forming. Even with that measure anti monopoly law would have to be powerful and strongly enforced. Under the free enterprise approach to the utilization of space resources, a new era of economic growth lifting all boats will be ushered in, even boats in the poorest of places.

Sadly, people are people and there is the very real possibility someone with an imperial mindset could get there first. They will be the ones who land and immediately start building fortifications, carrying guns, and answering only to a political power. The very best way to exploit the resources including water, of the Moon, is to negotiate and enforce a treaty, that any resource is owned only if there are people there, who found it… are utilizing it, their profits, places they build and their persons are free and sovereign, (they own them free and clear). That would encourage entrepreneurs to start a wave of economic expansion like the world has never seen. However, wherever there is huge profit to be made, first, people vie intellectually for it, then by subterfuge and finally, by violence. Since water will be such an important first resource, the way humanity treats it, will be a prediction of how the other resources will be exploited.

That, is what makes the south pole of the Moon, the most valuable piece of real estate in the solar system right now.

Sincerely

John Pepin

Pseudo Wars

Monday, November 10th, 2014

No nation could preserve its freedom in the midst of continual warfare.”
? James Madison

Dear Friends,

It seems to me, all the “wars” the US has engaged in as of late, are nothing but pseudo wars, not wars at all but a way to take away the liberty of the people. I am of course talking about the war on drugs, the war on poverty, the war on terror, the war on obesity, and so forth. These cannot be termed wars anymore than any other policy a government enters into to meet a non corporeal problem. War is violent, terrifying and expensive way to defeat a corporeal threat. Moreover, calling such things wars, lowers the brutal reality of what war is, and creates a situation where the elite can keep a nation in a state of perpetual war. The appointing of “Czars” to oversee these “wars” is more proof they are overtly a means to evolve us to tyranny, war has generals, Czars are despots. If we want to stop the slide to tyranny we must examine the ways the elite evolve a nation to despotism and demand they be stopped.

Let’s face facts, a war on fatty food is an unwinnable war, like a war on terror or a war on poverty, by their very definitions they cannot be won. It is impossible to eliminate fat from foods. Fat is an essential nutrient that provides the calories we need to live. Like anything that is good, when overused, like the term war, it leads to all sorts of bad consequences. To fight a war on the strategy of an enemy, so as to avoid naming that enemy, is as certain a way to loose the war with the unnamed enemy, as it is to loose the war on their strategy. Imagine how the Second World War would have turned out of the allies fought a war on Blitzkrieg instead of the Nazis. Poverty will always be with us it is a human condition. The definition shows how absurd it is to fight a war on poverty, poverty is the lowest ten percentile of a people, economically, it is a relevant statistic. Even if a government were to execute the poorest ten percent there would still be a poorest ten percent. Even if ninety nine percent of the population were executed there would still be relative poor!

Embarking on fictitious wars has the propaganda value of claiming the government is doing something about a perceived problem. The term war focuses the mind and implies all a nation’s might will be brought to bear on the problem. The leader who coins the war will be thought of as really caring, to be so adamant about fighting such and such a problem, that they go to war with it. The value is only to the politician who names it… not the people, government, society or culture, they are damaged by the “war” effort. Everyone but the politicians must give up some sovereignty, money and liberty to the politicians during times of war, and so a fictitious war is a way of prying our liberty’s and largess from us, not to achieve some excellent goal.

War cannot be fought against an idea, tactic, class or food, it can only be fought against an enemy nation by killing and maiming real human beings, and destroying the infrastructure that supports their war effort. Von Clausewitz said that war is politics by violence. No one wants our government to do violence to the poor, we already do violence to our food simply by eating it, and ideas cannot be suppressed by violence. Look at the Second World war again, it was supposed to be against fascism, but how many fascists nations did the US and Europe support during the Cold War? WWII was against the Axis powers of Germany, Japan, Hungary, Romania, Finland and Italy. Four of which were not fascists at all! The war was against those nations, not the tactics they used, not the food they ate and not the political systems of their various governments… the war was against those states, period.

War against an idea, tactic or some other nebulous “enemy” is an absurd distraction from solving a real problem. It gives the people the idea something substantial is being done, but in fact what is really being done is, the liberty of the people is being stolen. The propaganda of a war against a non corporeal enemy is effective at reducing a country to despotism through the costs of continual warfare and a war mindset. It does nothing to solve the problem the elite are ostensibly waging war against, but through a constant chipping away it destroys the wherewithal of a people, saps our resolve to meet actual existential threats, and the lack of any possible victory corrodes our self esteem. War can only be fought against corporeal enemies that can be killed, maimed, impoverished and thereby forced to knuckle under. Further, to wage war against an enemy’s tactic, to avoid naming that enemy, is a sure way to loose the war with that enemy. It is time to complain loudly and forcefully whenever our leaders claim we should launch into another war against a non corporeal enemy and stop the ones our leaders have pulled us into already. Else our lot and the lot of our children will be despotism and poverty.

Sincerely,

John Pepin

A stake in Society

Thursday, November 6th, 2014

Dear Friends,

It seems to me, if we want to eliminate the scourge of drugs, stop our children from joining gangs, and prevent the youth from traveling abroad to bolster terrorist groups, what we need to do is give them a sense of ownership in our society. Mencius said, “The people constitute the way (Tao). Thus the hearts of those who have a stake in the country are fixed and those who have no stake in the country are not fixed; and if they have no stake they let themselves go in vice and extravagance…” That advice is as relevant today as it was in 500 BC. A stake, or ownership in the nation, society and culture is essential to a person’s self worth and sense of future. When that stake is taken away the individual becomes careless about society, the culture and government. We see this plainly in the results of the Frankfurt school of philosophy when it was introduced into American culture in the early 1960s. If you want a better life for your children and yourself, it is up to you to make sure we all have a stake, else our standard of living will dwindle along with the fortunes of our society.

When people own their own home everyone keeps it up much better than when they rent. That is an established fact. People are at heart rational maximizers. Any rational person will maintain what they own and let go that which they do not own. This has been proven over and over in cultural experiments. In the slums of South America, when the impoverished are given title to the shacks and land they are on, those shacks get maintained, fences get built around them to protect them, they get painted and expanded. Those who do not have a deed on their shacks let them rot into the ground, because they could be bulldozed down at any moment or someone will simply come and take it from them. That is the crux, when someone has title, their stake is protected, but when someone could be tossed out at a moment’s notice, why should they maintain it for some usurper?

A nation is like a home. In nations with Right government, those countries protect the property of the people, they protect the lives of the people, apply law equally and they provide a framework that allow people to get ahead, if they work hard… and get rich if they both work hard, take chances and are smart. A nation can be allowed to deteriorate by negligence or it can be built up by elbow grease. Let the roof on a home rot away and the rest of the house quickly becomes uninhabitable, let the laws of a nation become corroded by arbitrary enforcement, and the nation rots from the inside. Break the foundation of a home and it crumbles to the ground, smash the foundation of a society and it collapses from the first wind of crisis. Give the people a stake and they will maintain it, take that stake away, and they will allow it to fall to the ground.

How does one give the people a stake in a country, culture and society? By several means. Protect the foundation of that nation by protecting the societal myth is critical. The constitution of those countries with one is that foundational societal myth. When someone destroys the constitution, they destroy the nation that was built upon it, no differently than when the foundation of a house is smashed the house falls in. To do that we must keep those who despise the constitution from having power over it. There will always be those who seek to destroy a constitution by conniving. Those people are villains of the most heinous sort.

Another thing that must be done is to enforce the laws equally and without bias. That requires laws that can be read and understood. While this should seem obvious, in practice it is perhaps the hardest to achieve. All people are selfish to some extent. Lawyers make the laws, lawyers prosecute those laws and lawyers interpret the laws. This gives lawyers a great incentive to make laws that benefit them, prosecute laws in such a way as to enrich themselves and interpret those laws to protect their position in society. To do that they must make the laws of a society so circuitous that no one, even lawyers themselves, can fully comprehend them. Furthermore, it is in lawyers best interests to force everyone to use a lawyer for every economic interaction, by undermining the very laws they are supposed to protect.

Perhaps the most important thing a people can do to give everyone a stake in the system is to maintain class mobility. Not only to maintain the ability of individuals to rise from poverty to the elite but to maintain the societal belief of class mobility. When schools teach children that it is not possible for them to advance beyond their status they undermine class mobility. When the elite pervert the societal myth, that class mobility is available for anyone if they work hard, take smart chances and persevere, they destroy the belief of class mobility. Possibly the worst way the elite in a society can eliminate class mobility as well as the belief of class mobility is to sell the fiction of equal outcomes.

The very concept of equal outcomes takes away everyone’s stake in society. When you will get the same as everyone else, no matter how hard you work or even if you work, you have no stake in that society. You are merely a slave and everyone knows a slave cannot own anything. Redistribution is so corrosive of a people’s sense of ownership in a nation it should be attacked anytime it is mentioned. The only people who have a stake in a country that redistributes the wealth of the people are the elite that do the redistributing. They always take more than their share and their share is protected by the army.

The results of these negative incentives can be seen in the United States since the 1960s. The concepts of the Frankfurt school came into their own then. Redistribution became vogue, class mobility was attacked in the classroom and in popular culture, the laws had been undermined by bureaucracy for two decades, the arbitrary application of the law became obvious, and the US Constitution became a living breathing document destroying the very foundation of American society. All these innovations took away the people’s stake, or ownership, in the country. The results were that drug use became rampant, it was the beginning of the scourge of drugs, crime skyrocketed, violence became endemic and the institutions of civil society began to deteriorate. Clearly, the path to prosperity is through giving all people a stake in their nation, the path to poverty is to take that stake away.

Sincerely,

John Pepin

Election Integrity

Monday, November 3rd, 2014

Dear Friends,

It seems to me, for the democratic element of our republic to function, as democratic, first there must be honest elections, barring that there is no democracy only the tyranny of the powerful over the powerless. If someone wants to become a despot, all that is needed is to give the appearance of free and honest elections, but in fact so undermine the election process with fraud and vote rigging that there is no honesty to the election process at all. Of course to do such a thing is villainy of the highest order. History shows however, and we all know from experience, that people can be counted on to do whatever they can to get advantage, in this the political elite are far worse than the average man or woman, because there are almost never consequences to their wrongdoing. Elections that are rigged are not elections at all but coronations.

Since the democratic element of the United States is the essential means for our governors to get the consent of the governed, us, the integrity of the election process is essential. The United States is a republic, a mixing of Aristotle’s Right forms of government, despite the pervasive propaganda that the US is a democracy, one of Aristotle’s wrong forms. Aristotle’s right forms are, monarchy, aristocracy and polity, while his wrong forms are tyranny, oligarchy and democracy. His best form is a republic, a blending of two or more of the right forms. What the right forms have in common, is that they serve the needs of all people, and what is wrong with the wrong forms, is that they each serve the people with the power. Tyranny serves the monarch, oligarchy serves the aristocracy and democracy is the tyranny of the majority over the minority.

Perverting the democratic element of our republic turns the aristocratic element of our republic, the legislature, into oligarchy, it perverts the monarchical element, the President, into a tyrant, eliminating altogether the democratic balance. All this mischief is done by degrading the base of our system, which is democracy. It should be obvious that corrupting the foundation makes the edifice unstable. Each part of the government must necessarily change from serving all the people, rich, middling and poor, to serving themselves only. The President becomes a tyrant who only serves him or herself, the legislature becomes an oligarchy that seeks only more power and wealth… and the people follow their leaders and become self serving egoists as well. Clearly, no society or government no matter how constituted, can survive such depravity for long.

Those who might agree with what the corrupting faction is doing today, should take heed that no matter how much you might agree with them today, you may not tomorrow, but then it will be too late you have given them the power to do it, and given up your power to stop them. Many know there is blatant vote fraud but spuriously argue there is none because they want their guy to have power. They might believe their guy will do good with that power, but there is no case in history or in the future, that power gained by such means has led to anything but ruination for the people and the society. This is because power is like cocaine or heroin, in small doses they help with pain, but as the doses get ever larger, they fog the mind and corrupt the soul until the drug is all consuming. The addiction of the elite to power never leads to a good result, it can only lead to all of us loosing all that we have, our grace, our wealth and our children. All great civilizations have fallen thus.

It is by small steps that we race to Hell and by small crimes that great societies crumble. Voter fraud is by far the most corrupting form of small crime. Each instance may seem small but cumulatively they add up to great evil. Dishonest politicians can be dealt with, common crime can be cleaned up and foreign attacks can be beaten back, but rot from within hollows out the very center of a civilization. Once the center is gone collapse is imminent and nothing can stop it. Accepting vote fraud and election rigging is the surest sign a civilization is rotten from within. In 25 AD Titus Livius told the Roman people that unless they changed their ways Rome would collapse. He was called an idiot by the patricians and plebeians alike. Rome had lasted a thousand years and would last a thousand more. History showed Livy correct and everyone else wrong.

What Livy did have wrong however, is that it is never the people that corrupt a society, it is always the elite that introduce it, then pass it down to those they lead. Tolerating rigged elections guarantees corruption of the most pernicious sort… no matter how much you agree with the party doing it. That is because government must serve all else it is one of Aristotle’s wrong forms and will become despotic. Since democracy is the base of our system of government, election fraud that pulverizes the foundation, weakens the whole of our society. Therefore, if we don’t stand up to our leaders and demand vote fraud be eliminated, requiring those engaging in it be punished severely, our complacence will sow the seeds of our own destruction, enslaving our children to whomever rises in our place.

Sincerely,

John Pepin

The Road to Poverty for a Nation

Thursday, October 30th, 2014

Dear Friends,

It seems to me, if we want to live in a nation of prosperity and liberty, but not one of poverty and tyranny, it is up to us to use our common sense when we vote. We all want to be prosperous that is a natural desire of humanity. The drive for liberty is a heart felt feeling that people have had since the days of Adam and Eve. How unfortunate then that these two mutually compatible wants are almost never met? Instead we always get tyranny and poverty. Our leaders constantly lead us astray, lowering our standard of living and becoming ever more tyrannical, until the nation state, city state or empire becomes so rotted from the inside, it collapses from something that wouldn’t have been a bump in the road a mere generation earlier.

I believe this is because of the fiction of enough. Oh, we can have enough pain, enough hunger or enough sickness, but it is impossible to have enough wealth, power, luxury, food or happiness. We might be sated for a short time after a huge meal, the giant bonus might make us happy for a day, but as soon as the food is digested or the bonus is put in the bank, we want more. There can never be enough of a good – while even a little of a bad is too much. It is in our nature to strive for more good and less bad and only a saint is immune.

This maxim applies to government and it’s officials as much as the common laborer, possibly more. Those in government want more money, sex and power. The seven deadly sins are all the more deadly when exercised by the political elite, because they not only destroy the virtue of the elite, but the nation they lead as well. No matter how much power the elite get they demand more. No matter the problems they created with the power they were already given, they want more, to fix those same problems, which will certainly be used to create more problems… so they can get more power. They can never have enough power over the individual, sex with young interns or wealth at the expense of the people.

History says nothing if not, when government grows beyond simply protecting the people from foreign states, safeguarding our lives and watch over our property… poverty, plague and war result. In fact, the fiction of enough is exactly why there is war in the first place. No nation has enough land, no matter how much land it has, no nation has enough wealth, no matter how rich it is, and no country on Earth is satisfied with the resources it possesses. All countries look upon the wealth, land and resources of their neighbor with a greedy eye. Perpetual war is also the most efficient way to remove our liberty from us, from subjecting us to tyranny, to “protect us” from this or that bogyman. This is made easier, by the fact the new class elite control the media in all nations, including the US. We are so easily deceived.

The covetousness of the political elite is not spent only on the property of other nations it is most hungry when turned on the wealth of their own people. Those in power will think of all kinds of ways to plunder our wealth for their own use. In this, the more power the government has, the easier it is to take what we earned through labor, to line the pockets of the elite. President Harry Truman said, “Anyone who gets rich in politics is a God damned crook…” How many politicians, in any country on Earth, are not rich within a year or two of gaining office? The more socialist the nation’s government is the richer the political elite and the poorer the people. That is because no amount of wealth is enough, even if it costs the nation it’s economy, liberty and happiness.

The only answer is to limit government’s power over us. But power taken is never returned except by a collapse and reset. Of course the elite will scream to the rafters that they need that power to do us good. But as I have pointed out, that power will do us no good, it will enrich the political elite and destroy our culture, society, nation and economy. The political elite know this as well or better than you and I but their greed, lust and hunger, overpowers their patriotism. When a politician tells you that he or she needs to be able to take from someone to give to you, they are really telling you they want to be able to legally steal from others, including you. You will get no benefit but your children will live in poverty and tyranny because of it. They appeal to our greed to satisfy their greed and call it progress. We are as lazy as the elite and seek wealth without work too.

We follow our leaders, we want to get rich in politics as well, even if we are not members of the political elite. They exploit this tendency in us to manipulate our selfish desires, desires they have put in us when we look at their wealth, power and prerogative, and stand in awe of it. We become desirous of those things ourselves. But in no nation or country ever constituted, has wealth been taken from the people and been given back, at no point in time has power been returned to the people, never has an oligarchy ruled for the benefit of all, and no place where the people have fallen for the deceit that they can vote other people’s money into their own pocket… has there been anything but increasing poverty, lowering of liberty, and eventually, catastrophic collapse. Yes, the elite start it because they can never have enough, but we always go along, voting the most corrupt politicians in, because they claim they will “give” us the wealth someone else has piled up… suckers that we are.

Sincerely,

John Pepin

Economics and John Meynard Keynes

Thursday, December 23rd, 2010

Dear Friends,

It seems to me that the US economy is as “stimulated” as it can be, any more and we will start hearing martini bar music. Trillions of dollars have been printed and circulated during Quantitative easing 1 and 2 with 2 not finished yet, trillions have been borrowed and spent by the US government, interest rates have been kept at artificially low levels, by the Fed, and yet we have 2.6% annual growth in the GDP, according to the latest figures. All this stimulus and more to come in the form of additional quantitative easing if it is deemed necessary by the Fed Chief, Bernanke.

According to John Maynard Keynes theory of economics the economy should be spinning out of control.. but it’s not? Either Keynesian economic theory, the theory that formed the basis for the twentieth century economists is wrong or there iss something else at work. I have questioned the theory myself many times and find his demand side economics to be wanting, as I find Say’s Law to be wanting in it’s own respect, but I don’t claim or think Keynesian economics has nothing to teach us. But the present day stands as confounding evidence for Keynesian economics.

My last blog about how the Healthcare law is holding back the economy in a dangerous way made salient points about why the economy is so lagging with so much stimulus in place. Another reason not mentioned is the Banking regulation passed by the last Congress. It drives up costs, increases paperwork, makes the market less nimble, applies more layers of bureaucracy, and does nothing to protect us from another economic disaster.

No matter your political leanings you have to admit that more regulation of an industry makes it more expensive to do business in that industry. The cost of starting a new business, to compete with established business, becomes more expensive as well. The more regulation the higher the cost of running a business and starting a competing company in that industry.

When you drive up the expense of starting a business, less will be started. Less new business means less demand for workers, less innovation, less entrepreneurial activity and more entrenched monopolistic companies, that can, and are urged to, grow too big to fail. These businesses that grow to be too big to fail are necessarily less innovative, have higher prices for the consumer of their products, and skew the wages in a nation.

All these things that hold back the economy are a direct result of the legislation passed by the last Congress. The pernicious incentives and direct headwinds to the economy will have their effect. The thing is, these are not the first bad laws passed in the USA that negatively effect the economy. For years laws that drive up the cost of startups and protected entrenched companies have filled tome upon tome. More and more regulation that lowers the efficiency of American workers and drive up the imbedded cost of doing business didn’t materialize overnight.

It’s just that the last Congress went too far and passed legislation, they allowed socialists to write, into law. Legislation, that when added to the pile of already bad laws, snaps the back of our proverbial camel like a twig. Even the ship of the desert has only so much capacity to handle a load as does the American economy.

Nothing is unbreakable; if you set your mind to it…

Elections in the Netherlands

Sunday, May 2nd, 2010

Dear Friends,

It seems to me, that with elections coming up in the Netherlands in June, it would be wise for the people to look at all options. Libertarian ideas like the International Capitalist Party especially.

The socialists and communists call themselves center left and anyone else far right. With control of the media and mass entertainment the Elite has quite a lot of control of trends in thought. The Elite always use their power to enhance their power. They do not want any populist movement to get under way. Especially a movement that espouses liberty and freedom from government intrusion.

Government intrusion is what socialists, communists and progressives do best. They intrude into yours and my lives. They look deeply into our ways of living and if they are displeased… They pass a law. Forbidding or taxing to penalize to stop our displeasing behavior.

I am not surprised that anyone in Europe who wants to install some sane control on immigration is vilified as a hater. They must hate or else they would let unlimited immigration. This is only an underhanded way of stopping debate. Debate over a very important subject.

Like the guy who cajoles another guy into putting a gun in his mouth and pulling the trigger. “Go ahead, we have all done it, you want to fit in don’t you? There is only a one in six chance the gun will go off. Go ahead, it will be the thrill of your life.” Yea, go ahead. Does that seem smart to you? Where is the upside to the bet? There is none. The payoff is proof that you are stupid or the bill is death. Where is the payoff?

With Greece poised to collapse financially, the Euro Dollar is poised to take a large hit, then the entire Euro zone’s economies are imperiled. The default of Greece would certainly bring one of the other piigs nations into the spotlight. The pattern has already shown itself in the collapse of Bear Stearns… If They fall like dominos the Euro Dollar as a store of value will be destroyed. At least for awhile. This puts every nation that participates in the Euro Dollar in a perilous position.

More loans to Greece are completely absurd. Raising taxes is almost as foolish. The only way is to cut spending by the Greek government. Cut in a draconian way. Draco was Athenian so…

Another way the Greek government could get the economy going is to, clean up the government, reduce regulation on small business, improve revenue streams to people who want to start small companies, sell national utilities, etc… In short, everything the Greek government cannot do with the large communist and socialist contingent it is burdened with.

Raising taxes slows the economy and puts the Greek economy in a further diminished position. In the world markets but especially the local European markets. The Greek relative advantage will go down worsening the unemployment situation.

But unfortunately the people of the Netherlands have had their horses tied to not only to the Greek wagon, but to Spain‘s, Italy‘s, Ireland’s and Portugal’s as well. Further integration into the Euro zone should be thought out very well and taken very slowly. The crisis we have been discussing is a very bright red flag.

National sovereignty is important for the fact that it gives a multitude of political classrooms to show what works and what doesn’t. Communists, socialists and progressives cannot abide the system they espouse standing up against a capitalist one. The standard of living in the capitalist one outshines the statist vision by orders of magnitude. Let alone the standard of freedom that capitalist nations afford their people.

Freedom is a critical step in a person climbing to his or her potential. Missing rungs in the ladder are only a challenge. No ladder at all is insurmountable.

Europe and the New World Order

Sunday, May 2nd, 2010

Dear Friends,

It seems to me that Europe is in grave peril. The threat comes from many fronts. Not the least of which is their economic situation.

While the rest of the world is coming out of the recession Europe trails behind. Germany and France are doing most of the heavy lifting but they cannot sustain the social welfare loads of the whole of Europe. The communists and socialists that run Europe will not stand for any diminishments. (Of their power).

Social welfare spending is directly correlated with the power of the State. State power rises as social welfare spending rises. Because as people move from self sufficiency to government dependence they loose their autonomy to make decisions effecting the State. As I have stated many times, in many ways, a dependant has no effective voice. Dependants necessarily take what they are given.

But being a dependant of the State has no upside. There is no long term payoff. Except more dependency. The threat of hunger is always at the door if the State stops providing. There is no way to move up in the social hierarchy. And people who are dependant on the State feel low class. This opens society for many of the ills it has today.

Like crime. When a person has his or her ego damaged they lash out. Making a person a dependant on the State is a slap, followed by spittle, in their face. Regardless of the intentions of the person handing out the largess. Insults are never taken well… even when they are unintended… or are they?

The social welfare state that the European socialists have built is crushing their economies. The weight is a millstone around their necks. The European recovery is thus dragged down by the weight of government taxing and spending.

Germany and France make up for this loss in productivity by subsidizing investment in the means of production. But as in all government subsidies the lion’s share goes to large well established companies at cost to smaller more innovative companies. Hewing the smaller trees to let the big ones grow bigger. But eventually all trees die. With no small trees what will fill the canopy?

Government taxation sops up available capital that could be better used to improve productivity. There are many ways to improve productivity but government has only one avenue.

Open up transportation infrastructure. The mass transit system in Europe is a girdling root. It locks the European economy into the train schedule. This may seem on the outside to be a minor nuisance but it’s effects are pernicious.

If a business can work most efficiently at a schedule that does no coincide with the train it must put it’s workers at a disadvantage to get to work or it must work in a time frame that is not as efficient. In a global marketplace that company is now at a disadvantage to other companies in other nations that are not hamstrung by mass transit schedules.

It is a feature of people who live close together that they are willing to give up more of their liberties to protect themselves from other people. Some cities have ordinances against owning dogs. Some dogs bark incessantly and infringe on the rights of adjacent people. They argue that dogs are a nuisance and cannot be tolerated in such close quarters. Etc…

This is acceptable on a local level because conditions may make such an ordinance acceptable to the people in that locality. But when people from this locality become the national government they will bring their anti dog prejudice to the national stage. The rest of the country may love and revere dogs. But the Elite will none the less ban them. In doing so feel that they are doing a great service to the nation. This local prejudice on a national stage has the effect of creating more friction for the economy to push against.

Europe suffers under this type of pressure as well. The people who run the national governments are from the large metropolitan areas. They have the mindset of people who are used to living in close quarters. This mindset is displayed in their actions in the various parliaments and houses by their tight grip on control.

These are only a few of the burdens that Europe is suffering from. Europeans should read the history of the ancient Egyptians and the Hyksos… It may be enlightening.

Wall Street Bonuses

Sunday, May 2nd, 2010

Dear Friends,

It seems to me that one of the ways a person gets rich in government, is to create a problem, announce that there is a problem, then claim it is only government that can solve the problem.

The big investment banks have announced their earnings. They have earned enough so that, when Goldman Sachs pays it’s employees 43% of the quarterly earnings, it will amount to around $500,000.00. So we can extrapolate that if $500,000.00 is 43% of each employee’s total value to the company, in that quarter, they produced $1,162,790.00, in that quarter. That is a lot of production.

“They have a printing press in their basement and all they do all day is coin money”- from Bloomberg radio, referring to Goldman Sachs. But whenever a company produces so much profit it’s a red flag. To produce this much profit with so few employees the environment the company exists in must be tempered by government. Or it is a monopoly.

If a company is not a monopoly it cannot charge monopoly prices. Unless there is some strain on the market’s ability to provide the good or in this case service. Because without constraint on supply, from somewhere, others would jump into the market and undercut the monopoly profit forcing the older companies to lower their profit margins to compete. If there were “perfect competition” in that market companies would post very little profit.

The way companies like Goldman Sachs and Morgan Stanly keep competition, especially perfect competition, from lowering their profit margins, is to pay lawmakers to pass laws that limit entry into their markets. Cutting the small trees so the big trees can grow bigger. The bigger the trees the more shade for lawmakers.

Now our lawmakers are rattling their swords over the huge bonus’s that Investment Banks are paying their employees. The government will not stand for it! The rhetoric from ours and other governments borders on vitriol. But one thing we have stressed in our blogs and bbs posts is that it is foolish to look at what a politician says. It is always a lie. Look at the politician’s actions. They show the reality of the who the politician is.

In this case what do we have for evidence… Well, if lawmakers were serious, the people in the crosshairs would certainly fund the opposition to get a better chance. But we see that the democrats have almost exclusively gotten Big investment bank money. In fact Obama refuses to give back the million of dirty money he got from Goldman.

What action do we see on the regulation front? Rhetoric. Nothing but empty words. The threatened regulation will put a clamp on big fat bonuses. But how? The only plan I have heard about is to tax big banks and investment houses at a sliding scale depending on the bonuses they hand out. But let’s think about it for a moment.

Would you argue that an auto mechanic should not get 43% of his production back as pay and benefits? How about a factory worker? In fact a contractor is lucky to make 10% on a laborer let alone 57%. If he did, communists, socialists and progressives would be saying the contractor was exploiting the worker. But the worker at an investment bank is not exploited when the bank he works for gets 57% of his production? Moreover, is it good public policy and right use of government power to determine the rate at which an employee of a private firm gets paid?

No, the real problem is that government coddles and protects the Wall Street Elites as members in the club. Remember the “Bailouts.” When government basically gives you money to loan, free, and you loan it dearly, a simpleton can make a profit like that. But what does it say about Government Elite and Wall Street Elite?

They are both complicit. They are two nuts from the same burr. Corruption in government and on Wall Street have joined to protect both by vilifying one while under the table government cannot give the Wall Street Elite enough money, special regulations and favorable business climate. Look at the actions… NOT their words. No one, intentionally, drops their toast on the ground butter side down…

Government creates the problem of not allowing the market, (in this case investment banking), elasticity to increase the supply of this type of service. Then market forces drive up the profits of the companies that government gives the franchise to. Government decries the bonuses (profits), thus tapping into public anger over the exorbitant profits of that industry. This allows government to fund the corruption, use the corruption to get elected, and get campaign funding from the corrupt actors… What a deal!

The best part, is that the argument for government keeping others out of Goldman Sachs markets, is that customers might get ripped off by shady characters…