Archive for February, 2015

Inflation and the Gap Between the Rich and the Poor

Thursday, February 26th, 2015

Dear Friends,

It seems to me, Keynesian economists constantly tell us that inflation is necessary, for a host of reasons, but what they don’t tell us is that one of inflation’s primary attributes… is to exacerbate the gap between the rich and the poor. Deflation is the norm in a laissez faire economy. In order to have inflation it must be created by money printing. But where there is deflation the new class elite’s interests are harmed, while the interests of the vast majority of the population is improved. Governments are one of the primary beneficiaries of inflation but large businesses also benefit from it. Inflation is a way to lower wages, it diminishes the value of savings and it makes GDP growth appear better, or worse, than it is. These benefits accrue to the elite at the cost to the people. Since the primary role of government today, is to benefit those who are politically favored, inflation is here to stay.

I am not one to say the measure of a society’s fairness and justice, is the gap between the rich and the poor, I am of the opinion that the standard of living of the poor, compared to the rich is. The new class uses the “gap,” as a hammer to bash in the head of anyone seeking laissez faire however, and so I thought pointing out the hypocrisy would be informative. The reason I don’t believe the gap is the right measure is because, in a society where the poor have everything a rich person does, even where the rich person has a trillion times the wealth, is just, and in a society where the poor have very low standard of living, while the rich live like kings, even where the gap in actual wealth is small, is fundamentally unjust. Many things can effect the difference in the standard of living of the poor compared to the rich, a few are… political favor, (as in South American countries), access to the goods of the economy, (as in socialist countries), and inflation.

In a laissez faire economy productivity gains drive down the cost of producing goods and services. When the mechanical loom came out Marx said it would lead to the mass starvation of the workers. But what it did was drive down the cost of a wool coat so the average worker could buy one. The electric light didn’t benefit the rich, who have sufficient means to buy candles and pay people to maintain them, it helped the worker who could afford to have light in their homes after dark. When Ford started making cars en masse he drove down the cost of a car so anyone could afford one. The examples of market driven deflation would fill libraries. But deflation has a cost to the elite.

To many who are rich, it isn’t what they have that is important, it is what they have that we cannot, that floats their boat. In the 1980’s the most popular vehicle among the rich in the US was the Suburban. A behemoth of a vehicle, it towered over the smaller cars, and was too expensive for the regular guy or gal to get. But when average people started buying them, the rich were incensed, maybe that is why the fiction of global warming was created. That is one problem with deflation, it lowers the cost of products so anyone can buy them. That is unacceptable to many of the uber rich, because what good is all that money if the regular working man or woman can get anything the rich can? What good is it to have Ferrari if anyone can work hard and save the money to buy one? If anyone can fly to Europe, that lowers the relative value of having a private jet, when even the hoi polloi can lunch on the Place Saint German in Paris! Inflation helps solve this dilemma.

Keynesian economists maintain a constant panic over what they call, “sticky wages.” That is the theory that businesses are loath to lower wages, even in economic downturns, and so inflation is a way to lower wages stealthily. It constantly corrodes the earnings of workers so firms have a greater control on the wages of their employees. In a downturn, they simply don’t give raises and so in reality they cut the wages of workers. By giving wage increases at less than the rate of inflation the worker’s wages are cut by dribs and drabs. Inflation lowers wages by taking away the buying power of the money businesses pay.

Gross Domestic Product, (GDP) or the amount of goods and services produced in an economy, can be skewed by inflation. Under counting inflation, makes GDP appear to grow faster than it really is, and over counting inflation, makes it appear to grow slower than it really is. This is a handy tool for the new class elite to massage GDP depending on if they like the party in power or dislike them. Since GDP is often looked at, as how a President is doing on the economy, a little under counting inflation can make him or her a hero, and a bit of over counting it, makes them a villain. Tricking the people into voting against our self interests is one reason we have a Central Bank. Inflation is a great tool for just that.

Out of control government spending could not happen without inflation. Inflation lowers the real value of the money government borrows over time. Since all of that borrowing goes to help the rich, in a variety of ways, that spending must be maintained. At first glance some might argue that the welfare state, that is only possible by inflationary government spending, helps the poor… but it doesn’t. The welfare state is the modern equivalent of Roman Bread and Circuses. It keeps a large and growing segment of people poor and dependent on the charity of government, and shuts down dissent, and so everyone on assistance is a slave to the State. Moreover, much of that spending goes to the boondoggles of the rich with political favor, like George Kaiser of Solyndra, Warren Buffet’s trains carrying Canadian oil, etc… and leaves you and I on the hook.

When… inflation cuts the wages of the workers, our standard of living is undermined by inflation, the buying power of those wages we have left is diminished by inflation, our savings are eroded by inflation, and the politicians are picked for us by artifice… the gap between the rich and poor grows. It becomes impossible to save for a Ferrari, struggling to make ends meet we cannot take vacations to Paris, and expensive gas forces us to buy microscopic cars. The rich, who have political favor, need not worry about inflation diminishing their wealth however, their businesses are protected by cronyism and their savings, by offshore accounts, while higher costs for goods and services just keeps them out of the grubby hands of us. Even as inflation diminishes the standard of living of the working class, and especially the poor, inflation has no such negative effect on the purchasing power of those who are rich, and so the real gap in the standard of living grows… as is intended. That is why the elite go into panic mode at any sign of deflation, it changes the paradigm, because deflation allows you and I to buy the same things as the rich… and that is unacceptable!


John Pepin

Stumbling Into a World War

Monday, February 23rd, 2015

Dear Friends,

It seems to me, the tides of hate and division are rising on our planet today, husbanded and encouraged by those in power. That is quite a disturbing allegation, really. Those who wield political power are tasked with ensuring Equality under Law, prosperity, and peace, but as in all things, those in power seek their own egoistic interests, instead of the interests of humanity. By forwarding absurdities and crushing dissent those in power around the globe are sowing the seeds of inequality, hate and war. To assume their what their reasoning is, is counter productive and irrelevant, to gauge their intent by their actions however, is eminently reasonable. That those in power are steering the Earth into another bloody world war, is proof of the malevolence, perhaps their sociopathic/psychopathic nature, would be a better term for our leaders. The facts cannot be denied, around the planet, wars of genocide and territorial expansion are becoming more common, while voices of reason are being squashed by political correctness, bullying and outright tyranny. The future looks pretty dim if this trend is not stopped, maybe it is too late already, but we as self interested rational maximizers have a duty to intercede, else the planet we leave for our children will be much diminished from what we were given as children.

Hatred for the Jews is on the rise again like it hasn’t been since the fall of Nazi Germany. Today in Europe and the US, Synagogues are being desecrated, and attacked. Jewish people are being targeted by crazed murderers ever more often, even as our leaders tell us they will protect the Jews this time. What they do however, is the opposite of protecting the Jews, instead, politicians empower those factions that seek to exterminate the Jewish people from the planet. Our leaders meet with those who openly call for the slaughter of Jews and Christians, while disinviting Benjamin Netanyahu from speaking to the US congress. How many times has Obama met with Islamofascists but wouldn’t even consider meeting with the Tea Party?

There is a Christian genocide going on but our leaders tell us it is mere random violence. That fact cannot be denied. In Nigeria, Boko Haram openly slaughters whole villages of Christians, enslaving the women and little girls for sex, while the international community does nothing but create impotent hashtags. In fact, the US has intervened in arms shipments to Nigeria, keeping the government of Nigeria from getting the weapons they need, to actually fight the genocide. Boko Haram has burned churches with all the parishioners locked inside, with no condemnation from the UN or any other nation, they have taken girls from their schools and sold them into slavery and using some of them as human bombs, the crimes against humanity of Boko Haram make the blood run cold at the very thought.

ISIS, or as the US government prefers ISIL, (Because ISIL implies that Israel will be subjugated too), was an outgrowth of US supplying arms to “moderate” rebels in Syria. Those arms came from Benghazi. ISIS burns Christian children to death, buries them alive and crucifies children, because of their religion, but there is no condemnation by the US government. They slaughter women for not having sufficient headgear on, they throw Gays from buildings, they perform female genital mutilation along with a host of other crimes against humanity. ISIS has an end times philosophy, where they will conquer the planet, and subject everyone to their twisted philosophy, bringing on the Mahdi. ISIS receives it’s funding from Qatar among other US allies. When ISIS in Libya sawed the heads off 21 Christians, for being Christians, the Egyptian government bombed ISIS for that atrocity, to the condemnation of the US government! Meanwhile the US government claims ISIS is not Islamic!

When the Charlie Hebdo attacks happened, the US government didn’t even send a representative to the peace march, a clear message to the Islamofascists, such attacks are accepted by the US government. When the Synagogue was attacked and a Jewish security guard murdered the US government claimed that was random violence too. The attack on the Jewish deli was “shooting some folks,” according to Obama… despite the obvious terrorist connection. Meanwhile, the US has a summit on violent extremism, where the Israelis are barred, Christian groups are banned and the Muslim brotherhood, a vehemently anti Jewish, anti Christian group that burned Churches and murdered Christians when in power, (before Sisi took over Egypt and protected those minorities), was in attendance in force.

The US and Europe unseated the only despot on the planet who gave up his weapons of mass destruction, who was then tortured to death and dragged through the streets by those very people who man the armies of ISIS and murdered Ambassador Stevens, sending a loud and clear message to every despot on the planet… “GET WMD now, else the US and Europe will unseat you too, to be tortured and dragged through the streets of your capital city.” Don’t think the world’s despots missed that message.

Now the US is negotiating with Iran over their nuclear program. Iran is ruled by an insane end of world theocracy, who believes it is their duty to wash the world in blood to bring on the 12th imam, and thus the end times. Since negotiating with North Korea got them nuclear weapons, that failed strategy is unlikely to work this time either, especially with the message the US and Europe sent with Qaddafi’s murder. Nuclear weapons in the hands of suicidal end times lunatics, is a sure recipe for a nuclear war, but the US pushes ahead with the “negotiations” while barring Israel from them. Iran spins uranium into fissionable material even as the streets of Tehran are filled with people chanting, “Death to America!” After the example the US and Europe made of Qaddafi, Iran would be stupid to actually give up on nuclear weapons, and while insane, they are not stupid.

The war in Ukraine is largely a result of US blundering, or conniving. After denying the anti missile systems to Poland and the Baltic Republics the US government poked Russia in the eye. Despite the fact that Russia is a paranoid expansionist empire, as is China, the US government backed a coup to unseat the elected leader of Ukraine, and replace him with one who would give Russia the political cover they needed to invade Crimea and the Eastern provinces. Now the US is trying to escalate the conflict, instead of doing what it can to bring the war to a close, by sending weapons to Ukraine and arming the entire region. Which can do nothing but make the paranoid Russians even more paranoid.

The absurd stance of political leaders the world over is pushing the planet to war. As Christians become more and more enraged, the likelihood of a violent backlash against innocent Muslims becomes almost inevitable. By stoking the flames of the Russian Ukrainian war, placing an arms embargo on anyone fighting an Islamic insurgency, unseating the only despot to give up his WMD thus encouraging despots around the world to get nuclear weapons, backing the Islamofascist Muslim Brotherhood, denying the reality of the Iranian theocracy, ignoring the genocide of Christians, and even persecuting Christians in the US… the US government as well as Europe and Russia are bringing the world ever closer to a world war. This time, world war means the genocide of Christians, Buddhists, Hindus and atheists as well as Jews, along with the use of Nuclear weapons. China is taking advantage of the world’s leaders stupidity, if it is that, to expand their empire into the South China sea, Philippines, Vietnam, the Senkaku Islands, India and elsewhere, which heats up our planet even more. Unless the Obama administration is full of fools, simpletons and retards, and the European union is staffed with drooling imbeciles, one has to wonder why they seek a world war. But one thing is clear, by their actions, they do seek a world war.


John Pepin

The Dystopian Future is the Present.

Thursday, February 19th, 2015

Dear Friends,

It seems to me, the surveillance state that is being built, is no more or less than a prison, where everyone is a criminal, except the elite. While the government implements systems that are able to see through the walls of our homes, monitors the speed we are traveling ticketing us if we exceed the speed limit by a single mile an hour, listen in on our phone conversations, record our text messages, use license plate readers and facial recognition to keep track of where we go and when, etc… We have lost our fourth amendment Right… “The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no warrants shall issue, but upon probable cause, supported by oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.” Government has overstepped it’s authority granted by our Constitution in a big way. But why is there so little outcry?

We have been groomed to fear our fellows. Every news story is about how some person was abused by another. The pages of our newspapers are filled with stories of random violence. This or that person was robbed, someone broke into a house and beat the owners, we are treated to videos of the “Knockout Game,” drive by shootings are described in vivid detail… and college rape is the latest bogyman the media shills. All of these stories have one thing in common, the underlying message is that our fellow human beings are vile, violent and vicious. But reality tells a different story, the incidence of random violent crime has been going down for decades! We are actually less likely to be targeted for a robbery today than in the 1970s. Not because of the constant monitoring, no, the trend has been going down long before the surveillance state came along.

We have been trained to trust government. At the same time as we are told what reprobates our neighbors are, we are shown how virtuous our government is. Government only wants us to be safe, well fed, equal, and empowered. The media constantly tells us that unless this or that law or regulation is passed we will starve, be beaten up in our own homes, we might have to work for our money, some big corporation is going to steal from us, etc… it is only through the benevolence of government that we survive! History however teaches a far different story. The greatest atrocities ever inflicted on humanity has always, and will always be, by governments. Sometimes against it’s own people, a hated minority, foreigners who have something government covets… or political dissidents.

In 1755 Benjamin Franklin said, “Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety.” He was basically saying that if power is given to government, to keep us safe, that power will be abused, and those who are so foolish not to see that, are too foolish to have liberty or safety. He was a student of history, but since then, we have many more examples of governments doing far worse things than had occurred before his time. The bloody history of the 20th Century is as horrifying as it is illustrative of the diabolical evil those with arbitrary power are capable of.

Governments always want more power, that is the nature of government, moreover, those that seek political office have as their stated, or unstated goal, to use that political power. If someone doesn’t want to wield political power over the people, they don’t seek political office. Human beings are incapable of having enough good while a little bad is more than enough. So, it is self evident, that those who seek power over the people always want more power. Since our Constitution limits their power, it must be circumvented. To that end the political elite have enacted the bureaucracy. An unelected, unoverseen and unanswerable government entity, that regulates our every action, requires us to get permission for any economic activity, passes laws in the form of regulation outside the system laid down by our Constitution, and enforces those regulations outside the judicial system. In short a shadow government within government.

Confucius said “People follow their leaders…” what he meant is that we follow our leaders into virtue or into vice. Since our leaders are unwilling to give up their vices they must monitor us to the nth degree to keep us from following them into decadence. Our leaders are human beings, with all the foibles of human beings. They are, lustful, covetous, prideful, quick to anger, lazy, envious and most of all, greedy. They understand however that if we followed them, the system they abuse to their own ends would collapse, and they cannot allow that to happen, so they regulate and monitor our every action. The Elite regulate us to the point where no one, even the very best trained lawyer could ever know the laws, regulations and ordinances. So we cannot possibly follow them.

Human beings are not, and cannot be, perfect. Where our every action is categorized, scrutinized and memorized, everyone is a criminal. Especially when no one knows all the laws, regulations and ordinances. Where everyone is a criminal, and government has record of it, anyone can be blackmailed by government. No one can stand up to the government, because the elite have dirt on everyone, except a saint, and there is always an available open elevator shaft for that rarest of human beings. If you or I argue against a usurpation, the government need merely scrutinize our lives to find some misstep, and ruin us for it. Even to the point of jailing us, ostensibly for a violation of law, even as the real reason is for dissension. There is only one place that road can lead… arbitrary rule, or in other words, tyranny.

Our modern technology has allowed government to become a leviathan in the truest sense of the word. The tentacles of government monitoring reach to every corner of our lives. We are forced by the threat of violence, to divulge our economic situation, donate to political causes we find detestable, accept governments intrusions, give up our personal papers, have our communications monitored, etc… even as the actions of government become ever more opaque to us. While our leaders are above their own law, we are below the very basic protections that our Constitution reserves for us. The power of government over us, our actions and our lives, has become total and complete. In fact, what our government has become, is 1984 George Orwell in all but name. We have been blindly led into the Dystopian future so many have warned us of… and many of us have no concept of it.


John Pepin

The Failure of the Welfare State

Monday, February 16th, 2015

Dear Friends,

It seems to me, Quantitative Easing, (QE), or in other words, monetizing debt, is the ultimate repudiation of welfare state economics. Greece, is the poster child for the failure of both the welfare state, (socialism by another name), and cronyism. Socialism has a long and storied history of spectacular failures, in both providing the essentials for the people, and in the atrocities visited upon them. Welfare state “capitalism” is only the latest incarnation to fail. Don’t worry though, the new class will never give up on their beloved socialism, if it fails, try, try again. Sadly, it is never the elite that really suffer for their idea’s failures, those who suffer are the average ordinary people, those who as Thrasymachus said, only want to live their lives in peace and so believe in justice… while the elite use “justice” as a tool to control the people. The large scale implementation of the welfare state has driven our planet into a global currency war like in the 1930s.

If the welfare state operated so efficiently it would not need a constant supply of printed money to pretend the economy is working. Every government that has gone down the welfare state “capitalism” path, is now monetizing their debt. Japan has a debt to GDP that dwarfs Greece’s, but that debt is held by the Japanese people, and so doesn’t threaten the wealth of the banking elite, but don’t worry, the Japanese people will not be bailed out like the banks. When Japan went into the “lost decade” it went full Keynesian. The government spent huge gobs of money to stimulate the economy. Instead of growing their GDP however they grew their debt. The utter failure of the Japanese to stimulate their economy through Keynesian policies fell on deaf ears. The global elite will not give up on their favorite means to prop up the welfare state.

Europe is now going QE and the European central bank is printing money and buying European government debt. Germany and Denmark have instituted NEGATIVE interest rates! Think about that for just a second… If you have forgone immediate gratification, and saved money instead, you have to pay the bank to hold that money! Talk about a negative incentive to save! Not one of the major economies in Europe has it’s debt to GDP ratio below the European Union’s debt threshold, England, Germany, France, Italy, Spain and Greece are well above the agreed upon debt limit. All because their economies are based on the welfare state.

Switzerland has also announced it is instituting a negative interest rate. When the Swiss National Bank unpegged from the Euro, it sent shock waves running through the international banking system, as well as the investment community. A few very large businesses went belly up, (but most have been quietly bailed out since then), the new class elite cannot be punished for their own failures, it is the job of you and I to bail them out. Now that the Swiss Franc has appreciated in value so much it is damaging Swiss exports… the Swiss are instituting a negative interest rate of 1%! Meanwhile, every nation’s central bank is repatriating their gold from the US and buying more. (Except for Ukraine who needs the capital to fight their war with Russia).

Russia is a net buyer of gold and Kazakhstan has made it illegal to export gold. China is buying gold at breakneck speed, judging by the volumes moving through the Shanghai gold exchange, (the Chinese government doesn’t divulge it’s gold purchases). No one, it seems, is willing to trust their gold holdings to the US Federal Reserve. Why? Probably because the US Federal reserve has printed so much money, to lower the value of the dollar so the welfare state can be shored up, they have endangered the US dollar’s reserve currency status. The US government has spent so much on stimulating our economy under Obama, the US debt to GDP ratio is now 104% and getting worse by the minute! Moreover, much of what is called GDP is actually government spending, which is not real GDP, but detracts from GDP! Lowering real GDP and raising the true debt ratio as much as 20%!

In 1900 the GDP per person of Argentina was the same as the US. Argentina went full welfare state while the US kept the market system for most of the 20th century. The result? Argentina has gone through multiple episodes of bankruptcy, hyperinflation and has hollowed out it’s middle class, while the US has built the highest standard of living in the history of Mankind. Every instance of hyperinflation has been the result of needless wars and welfare state policies. Now the US is following the path Argentina cut.

Why have governments done all this taxing, printing, borrowing and spending? To prop up the welfare state. Welfare state capitalism is nothing more than socialism with a capitalism tag line. It is redistribution, from those who would use that money to produce jobs, goods and investment, to keep a large segment of the population from working, thus lowering potential GDP. Jealousy is the theme of the redistributionist. Take from the rich to give to the poor. But that is not what they are doing, and they know it. The uber rich don’t pay, it is those who are trying to get rich who pay, own a hedge fund and your taxes are minimal, own a deli and you pay through the nose. The result is to place a glass ceiling over the heads of the people and a floor under the feet of the uber rich.

The scheme is not sustainable, so to give it the appearance of sustainability, the elite have to stimulate the economy to make up for the malinvestment, lack of investment, pernicious incentives and friction to economic growth, all of which the welfare state creates. Deflation, the normal paradigm in a market economy, cannot be tolerated because then all that borrowing would collapse the system. So the elite have to gin up inflation by devaluing the currency, and in doing so, they steal money from savers, cut the wages of workers and lower the economic outcomes of everyone, well, everyone but the uber rich and political elite. Quantitative Easing, Keynesian stimulus, negative interest rates for savers, bailouts for the too big to fail institutions and constant government stimulus are needed, to stave off the eventual collapse. Meanwhile, the new class elite forward the propaganda it is capitalism that is failing, instead of their own policies. Because they know the bubble will eventually burst, and when it does, they want us sheeple to be mad at a paper dog, instead of the real culprits, so they can institute their end game… world socialist government. The elite believe it will be a Brave New World, but it will actually be 1984 George Orwell, either way it is coming, and the welfare state is the means.


John Pepin

The Right to Keep and Bear Arms… Worldwide.

Thursday, February 12th, 2015

Dear Friends,

It seems to me, much of the violence we see around the world would be stopped, if the US Constitutional Right to keep and bear arms was universally adopted. That may seem like a crazy statement… to those who have never been around guns, and have the irrational fear the new class and socialists have placed in them, but to those who grew up with a gun leaned up in their closet, it is utterly rational. Irrational fear based in ignorance is never a good place to argue from. Even a cursory glance at violence around the world, shows that the victims of violence are always disarmed, while the villains are always armed. Especially where guns are illegal. The real reason the elite want to keep guns from the hands of law abiding citizens, is that the elite don’t see us as citizens, but as subjects. We are to be controlled by whatever means necessary and the threat of violence, along with the state’s monopoly on violence, is the “ideal” way. This discussion has deep repercussions for the future of Mankind, will our children live in a world with increasing violence and tyranny, or will we change it to a place where evil men don’t have a monopoly on violence, and so in their utter cowardice, evil men withhold from visiting violence on others.

Lets take a quick look at violence around the world, shall we? The Charlie Hebdo attacks in Paris are fresh on the world’s mind so we’ll start there. Had the editors at Charlie Hebdo been armed the attacker would have got one or two shots off before the return fire stopped him. The cold blooded murder of the police officer would have been avoided and the massacre at the Jewish deli couldn’t have happened. In Africa, if the Christians were armed, Boko Haram couldn’t slaughter thousands with impunity and their daughters would be free instead of sex slaves. In the Yugoslavian conflict had the Bosnians been armed they could have staved off the incursions and the bloodshed of that war would have been exponentially less. During the Second World War the Japanese Imperial Army took and invasion of the US off the table… because the US citizenry were armed.

When Australia banned guns the violent crime rate skyrocketed. That is because the evil element in any nation will have access to guns, as they do drugs and other illicit items. Moreover, those who are intent on doing harm have no compunction about breaking the law. The same thing happened in Britain. Whenever guns are outlawed only outlaws have guns, their victims don’t, and the outlaws know it. To sharpen the point further, even in the absence of guns evil people will do evil acts, because they know their victims are defenseless. The youths who ran over the British soldier and cut off his head, then stood there with blood dripping from their hands, finger up and lecturing to the crowd how great their religion is, couldn’t have done that if the citizens… sorry, subjects, had been armed.

The argument that violence would increase if the citizenry were allowed to have weapons is spurious and those who make it know it. In the US, the places where gun crime is the greatest, are those places where guns are the most outlawed. Chicago has the toughest gun laws in the nation and violence is out of control there. Take out the places where guns are the most illegal in the US and the US crime rate drops to one of the lowest in the world. Vermont has no gun laws whatsoever and is 49th in the nation for violent crime. What crime there is is almost entirely crimes of passion. Moreover, when guns were even more prevalent in the US, the 1950’s, where gun safety and shooting skills were taught in the public schools, (along with the Lord’s Prayer), there wasn’t a single school shooting… and gun crime was rare, despite the wide availability of guns… even in school!

The elite however, knowing their ultimate goal is to progress the world to a one world government… with a planned economy, big brother watching our every move and arbitrary rule, know that the human population needs to be disarmed for that to happen. No one who plots usurpation wants to face armed men, they seek disarmed poltroons, armed men shoot back, disarmed poltroons cower in fear. Had the Mencheviks in the 1920’s had guns the Bolsheviks couldn’t have rounded them up, cut a slice into their abdomens and pulled out a small piece of intestine. Then nailed the intestine to a tree and whipped the victim, until he or she tied themselves to that tree by their inwards, and left to die. Instead, the Bolsheviks would have had a firefight on their hands, and no murderous evil bastard wants that! They want their victims disarmed and cowering for their lives. Che Guevera loved shooting someone grovelling and pleading for his life, it made him feel like a man. More like an evil villain if you ask me. Disarm the people and you arm evil.


John Pepin

The Foundational Ethos

Monday, February 9th, 2015

Dear Friends,

It seems to me, the foundational philosophy, principles or societal myth of a society, create the civilization and culture of a people. It is those foundational principles that determine if that civilization will be shaped in liberty, prosperity and fraternity, or if that culture will be tyrannical, impoverished and egotistic. Just like the foundation of a house determines the shape of the house that sets upon it. The destruction of the foundation of a civilization, as in a house, razes that artifice to the ground. Equally, if the foundational societal ethos is used as the foundation of another culture, the shape of that culture will reflect those foundational principles, no matter who the people are. This is so important it cannot be overstated or inculcated enough. The ruination of many a nation and civilization has been, and will always be, the destruction of the foundational philosophy of a society.

The Marxist, later turned anti socialist, Georges Sorel, came close to this in his theory of the Societal Myth. He stated that movements all have their societal myth, which if undermined destroy that movement, and in being created create a movement. He listed many in his various letters. The Roman societal myth, as stated by Sorel, was the marshal theory of “Glory” being the end all of a man’s life, and that glory in battle should be sought even at the risk of one’s life. When the Roman societal myth was destroyed, Romans turned from glory to selfish egoism, the fall of Rome followed. He explained the persistence of Catholicism as the “myth” that Satan is at perpetual war with Christianity and that since God was on the side of Christianity the Roman Catholic church would always be. These are societal myths as discussed by Sorel. In calling attention to those myths, he was consciously or unconsciously, trying to use the theory of a societal myth as a foundation for Marxism and the general strike. As I said, he came close, but fell short.

The foundational principles of a civilization are never myths however, they are truths, at least to the people that follow them. Moreover, if we look at the results of those foundational philosophies, through the eye of Pragmatism, we can glean those that have value from those that are destructive. American Pragmatism is based on the theory that the rightness of a philosophy can be determined by the fruits it bears. Those philosophies that create a system where people have liberty, prosperity and fraternity, by the measure of pragmatism can be called good, while those that create a situation of poverty, tyranny and egotism can be called bad. Because the lot of humanity under the first is elevated and under the second diminished. The first bears sweet fruit; the second, bitter.

Like a house must comport with the shape of it’s foundation, any civilization built upon a given philosophy, must comport with the tenets of that philosophy. So, if a society is built upon a philosophy that has resulted in liberty, prosperity and fraternity in the past, those new civilizations built upon the same foundation will result in the same outcomes. Exactly as those societies built upon a foundational ethos that has resulted in tyranny, poverty and slavery in the past, will do so in the future… no matter how much an idealist might want it not to be so. This shows that anyone constituting a new country, has a ready template of good philosophies upon which to build, or bad ones, the choice is available if not used.

The foundational principles of a culture, civilization and/or nation, determine the shape. Those who seek to destroy a civilization, to be replaced with another, have at their means a method of ruining a civilization, simply by destroying that foundational philosophy. Usually by a steady chipping away at it by perverting the minds of the children. As those children grow up and they believe the perversions they have been taught, further perversions, things that a generation before would have been unthinkable, become not only thinkable but taught to the next generation as fact. By these means a great civilization, or an evil one, can be wiped from the face of the Earth. All that is required is for a faction to gain control of the school system and higher education. Another way would be to import people who disagree with the foundational ethos. Once the population has been sufficiently replaced the foundation crumbles.

Today we see this happening. Western civilization, with it’s tolerance, liberty, prosperity and fraternity is being systematically destroyed by a faction, the new class, that has seized a monopoly on education. They seek, as their stated goal, to move the planet to a socialist utopia. They understand that unless the foundation is blown up, the edifice that stands on it will last, and so they have been undermining that foundation for generations. We see the crumbling of our civilization all around us. (Which is blamed on the foundation and not on the chipping away of it). They understand the means but not the results of their machinations. Some of them believe the edifice they plan on building will have more liberty, prosperity and fraternity than the one they are destroying. But in their ignorance, or willful blindness, they fail to understand that the shape of the civilization they are creating will follow the same shape of those that have been built upon that foundation before. They lack the pragmatic eye to see that if a foundation has always resulted in tyranny, poverty and slavery in the past, that is the only edifice that can possibly be built upon it.


John Pepin

The Insanity of the New Class…

Thursday, February 5th, 2015

Dear Friends,

It seems to me, Obama is channeling Marx in his latest diatribe against technological growth. Along with the US President, the elite in the media chant the absurdity… that productivity innovations are bad. On Bloomberg radio yesterday, they were interviewing some CEO and the questions constantly turned to how the advance in technology is damaging the middle class, and that the reason wages are stagnant and dropping is because of the advances in productivity. The theme is that labor saving wipes out labor. To someone who is ignorant about economics that might sound logical, but it is in fact spurious logic… an argument made to sound logical but is in fact illogical and used to fool the listener. It is critically important to understand the truth behind this lie. Technological driven productivity gains are critical to an increasing standard of living. Moreover, the reason wages are stagnant and jobs are scarce in the US and around the world is that regulatory constraints on our economies have reached critical mass, and are melting down our economies.

Marx basic theme in his Manifesto was that the mechanical loom was going to drive everyone out of work. He said, “As the forest of arms looking for work grows ever thicker, while the arms themselves grow ever thinner…” Meaning the mechanical loom made the production of cloth so much less labor intensive, and most people worked in the textile industry at the time, mass starvation was just around the corner. That is essentially the exact argument Obama made about ATMs. Of course Marx was proven wrong in his assessment just as Obama is in his. The mechanical loom allowed the price of a wool coat to drop, (the evil deflation), so that the average worker could afford one! Imagine, the mechanical loom allowed a mere plebeian to wear a warm coat! Horrors! He didn’t have to stuff his shirt with straw to keep warm he could wear a warm coat!

The Bloomberg interviewer argued against the Schumpeter model, by saying that those workers in the buggy whip industry got jobs in Ford’s factories making much better wages with less taxing labor, but today, there are no new jobs for the laid off workers to go to. An ignorant argument at best and spurious at worst. The reason that wages are stagnant is that government policies, policies designed to protect the politically favored, are destroying the creation of small businesses. For the first time in US history the creation of small businesses is NEGATIVE!!! Let that sink in a moment, there are more small businesses going bankrupt… than are being created! Creative destruction needs, as a fundamental input, new businesses and new business models. Regulation, taxation and the lack of standards, have so undermined that fundamental aspect of a growing economy that small business creation is now negative.

There was a story in the media the other day about some kids walking from house to house in New Jersey shoveling driveways for spending money. I did that when I was a kid. It is a great way for children and young people to learn that labor creates wealth. In a market system that is an important lesson. In America today however, the police were called, and the kids counter revolutionary snow shoveling business was shut down by the state. There was another story recently about some kids setting up a lemonade stand, they were also shut down by the government, running afoul of some regulation. In a society where even children cannot shovel a driveway or set up a lemonade stand, without facing daunting regulation and a police investigation, how can any business get started?

Without new businesses, creative destruction is destroyed. Giant firms are not entrepreneurial, that is a basic law of economics. Large corporations are run by the new class, for the new class, and against the interests of employees, customers and shareholders. The very definition of the principle agent dilemma. Anything that threatens the status quo is to be feared. Those at the top of large corporations always pay lip service to entrepreneurial ideas, but when faced with the choice of striking out on a new path or staying on the old one, unless there is a large bonus in it for them, the old one is always preferred. That is why new ideas are implemented by entrepreneurial small businesses. If those new ideas are profitable those new small businesses grow to large ones and wealth is created, if not, the risk taker gets a haircut. That is why Capital expenditure is so low while mergers and acquisitions are so high.

The new class progressives have effectively wrested the economy from the Bourgeois, (shareholders and entrepreneurs). Large corporations are able to line the pockets of politicians to protect their businesses from competition. When they do face competition their response is telling of their utter incompetence. Blockbuster is a perfect example of this in action. When faced with competitors who provided a better product at a lower price point, Blockbuster would have preferred to regulate their competition out of business, but couldn’t because of public scrutiny, so they did the next best thing, they raised their prices and lowered the quality of their product… to maintain their profit margin. The new class executives got their bonuses. Of course in doing so, they ignored the basic mantra of any and all businesses, provide value to the customers else they will shop elsewhere. So, Blockbuster went bankrupt, wiping out the investments of the shareholders, screwing their employees and abandoning their customers. The only ones who made out were the new class executives who got their bonuses and new executive jobs.

It isn’t creative destruction that is broken, nor is it the market system, it is the nonsense of the new class, in academia, politics and business, that has broken our economy. Regulation, taxation and cronyism have combined to eliminate small business start ups. So much so that the creation of small businesses has turned negative. Creative destruction requires small businesses to implement the new ideas that every economy, everywhere need, to grow the standard of living of the people. The new class run the businesses they have wrested from the owners, for themselves, at cost to every other element of our population. When faced with competition, lowering price and raising quality are not even a consideration, raising prices and lowering quality are the norm now, to maintain the bonuses of the new class. Deflation, the normal course of price evolution in a market economy is attacked as evil, so government can continue it’s profligate spending, to hide the outcomes of their policies and their cronyism. The “journalists” at Bloomberg are inculcated in the new class way of thinking, as are the “journalists” of every other major news outlet, and so we get one unanimous voice, all agreeing creative destruction is dead and socialism is the way forward… forward into slavery. Just as Joesph Schumpeter predicted.


John Pepin

What Could Have Been… But Wasn’t.

Monday, February 2nd, 2015

Dear Friends,

It seems to me, the state of humanity would be much better had Richard Nixon had continued the space program, and his successors had followed. Instead of fighting a war on terror we would be racing against each other for the stars. The Moon would have people living on it, Mars would be being colonized as this is written and humanity would be mining the asteroids. The economic might such a environment would create, would demand tens of millions of well educated, well paid people, in every field of human endeavor. The trickle down effect of those well paid people buying the production of everyone else would have enriched people in every industry. For the amount of money we pay for Obama’s vacations, we could be doing all these things, had we been investing that money from the 1970’s. Instead, our government has used exponentially more money to send our children to die and be wounded in the desert, spent trillions bailing out the too big to fail banking system, inflated bubble after bubble to create the appearance of growth, and have installed a surveillance state.

The only government spending that has ever paid a real dividend is the space program. Our world today is largely the result of technological spin offs resulting from it. Everything from the digital revolution and cell phones, to the Temperpedic mattress, are directly the result of the space program. So much of what we take for granted, we have, because of that spending way back in the 1960s. Since then the amount of money spent on the space program has shrunk, while the vision has become more and more myopic, until today Obama has set NASA’s priority… to make Muslims feel good about their contributions to space exploration.

In the 1960’s the US had ambitious plans to build a Moon base and go to Mars. That would have led to countless spin off technologies. Spin offs that, as shown by history, would have created destabilizing businesses. Those would in turn kick off cycle after cycle of creative destruction, (the only real source of economic growth in an economy). Those cycles of creative destruction would have put countless people to work, around the world in ever higher paying, stable jobs, supporting that endeavor. There would have been opportunities for adventurous people to man those missions and take those chances. Opportunities would abound for scientifically minded people to build the hardware and mathematically logic oriented people to write the software.

Had the US continued the space race, the USSR would have been bankrupted much earlier… or they would have competed. Either way… the single minded absorption of our leaders how to most effectively end life on the planet, would have been turned to expanding humanity’s sphere of influence in the solar system. Each advancement would lead to the next. Driving humanity from the Moon, to Mars, then the Main belt of the asteroids for needed resources. The result would be that the likelihood of humanity becoming extinct would have largely been eliminated.

There would be no need for the war on terror, because the huge gobs of money that have gone to those regimes that inculcate the most violent interpretation of Islam, would have had to turn their attention to catching up with the US and Russia, (or USSR), in the colonization of space. Instead of cutting off the heads of infidels and Jews, those who seek Islamic global domination would have to hire them, so they could get off planet too, else risk being left behind. They would have spent all that money on building the infrastructure and technology, or buying it, to get off planet. There would be none left for expensive war.

The boon to humanity would not have stopped there. In addition to creating tens of thousands, perhaps millions of high paying good jobs, an elevation of the standard of living the world over, protecting the human race from extinction for any number of reasons, and undercutting the reason for the war on terror… had we continued on the path Kennedy put us on, young people would have a grand vision to look forward to. Instead of the fatalism, driven by their lack of feeling they have a stake in it all, our young people would have something to strive for… rather than doing drugs, creating fatherless children, traveling across the planet to engage in Jihad and becoming dependents of the state.

Sadly, Nixon hated Kennedy and the space program as well. Nixon had no vision, other than his naked political interests, and those didn’t include advancing Kennedy’s legacy. He instead used the money he had “saved” from the space program to create the EPA. A total catastrophe for the American economy. A catastrophe that resulted in a diminished standard of living, lower expectations, a fatalistic attitude for our children, and the rise of the bubble economy to hide the fact. The last 40 years could have been years of progress, excitement and technological advancement, like the human race has never seen before. But in their infinite wisdom, our leaders thought a better use of that money, was to create generational poverty through welfare state capitalism, enrich Wall street bankers at the cost to the rest of the economy, build nuclear weapons, fight needless wars, usurp unconstitutional authority, prop up dictators, set up a surveillance state, etc… And now, for our leaders to take hundred million dollar vacations. Yup, the world would have been a much better place had our leaders spent all that money on the productive use of space. But hindsight is 20-20, and our leaders are who they are… too bad we all suffer for it.


John Pepin