Posts Tagged ‘economic collapse’

The Foolishness of the Fabian Model

Saturday, July 8th, 2017

Dear Friends,

It seems to me, progressives want to demolish the existing structure, so they are attacking the foundation, our Constitution, but in doing so they risk the structure falling in on them. When we are focused on a goal, the destruction of capitalism and the nation state as a model and establishing a socialist one world government, for example, we can be blind. In other words, when looking at the micro, it is easy to miss the macro. I think progressive globalists are doing just that, so focused on their big picture they are missing the bigger picture.

I had an old friend, God rest his soul, who was salt of the Earth but sometimes missed the forest for the trees… Tim was quite a unit. Decades ago some people were tearing down a house across the street from where I lived. Tim stopped over and sat down at the kitchen table. He leaned heavily on it. Ma asked him if he liked a cup of tea. He said yes. As Ma made him that cup of tea Tim looked at me, rolled his eyes and said, “Those idiots across the street. I could have that house down in ten minutes.”

Ma handed him the cup of tea, and asked, “How would you do that Tim?” He blew over the hot tea and said, “I would simply take a chainsaw, go under the house and cut the support columns. They are just spruce ten by tens!” I burst out laughing, convulsed and slapped my knee. Tim looked at me like I was crazy. I said, “It would take weeks to get your crushed and mutilated body out Tim!” Tim nonchalantly replied, “Nah, I would get out before it collapsed.” So strong was his conviction he would get out, the thought of getting caught in the collapse never occurred to him, as it doesn’t new class Fabian progressives.

If the western structure does break down and billions of people are killed in some catastrophe, rebuilding will not be a few years or decades, it could take generations and depending on what philosophy took hold during the collapse, perhaps never. Rest assured, part of the plan would be to blame capitalism, which would condemn generations to poverty, famine and oppression. That is what the new class globalist progressives don’t comprehend, just like Tim missed it, they will be caught in the collapse and be crushed along with everything else. It would be a huge joke… if so many human lives didn’t hang in the balance.

Sincerely,

John Pepin

Input Plus Reaction Equal Outcome

Thursday, September 8th, 2016

Dear Friends,

It seems to me… outcome is always the result of an input plus a reaction. This can be applied to many situations, violence for example, more particularly, when violence is warned of by the elite. The elite, by definition, are those willing to visit violence on another, to force their will on that other. Today the elite couch their threats by the sophist claim the people will become violent. Notice that lately, and in increasing amounts, the elite are warning of violence coming from the people, citizens, when the policies of the elite have become so onerous, they can no longer be stood by just right minded human hearted beings. It is the will of the people, to stop the globalization of government, that is diametrically opposed to the will of the elite, and that insult must be met with violence. As is always the case, violence is perpetrated by those who seek more government power and avoided by those who seek less. That is the rub, the elite input absurdity upon absurdity on the people, then waiting for the backlash so they can slam down and impose their will… to insure “security.”

The elite today have realized the people are catching on. The internet has democratized the flow of information, so that everyone has at their fingers information about everything that is going on, both filtered and unfiltered. Added to that the ability to disseminate that information via social media has castrated the gate keepers. The actions of the elite are available for everyone to see, and knowledge is power in that it tempers the indignation, leading to better judgment. The media that calls itself unbiased used to have as it’s chief worry that people would see them as biased, today that fear has been realized and only those willingly deluded believe a word of them. So the elite have lost their ability to control public opinion by the control of the media

Have you ever noticed, virtually all the political violence perpetrated on humanity since Adam ate the apple, has been by those seeking more government power? No time in history has this been more true than today. Islamists use violence to impose Sharia on non Muslims, Marxists use violence to impose socialism on those who don’t want it and governments use violence to impose laws that benefit a politically favored faction, at the cost to the rest of society. The first people charged by the progressive controlled media, is a right winger, like the Boston Marathon Bombing. That was initially blamed on an anti tax movement because it fell on tax day, but in fact it was an Islamist who sought to impose Sharia on non Muslims.

Now that the elite have created a mess in the Middle East and North Africa with their Arab Spring, the flood of immigrants who loathe Christians and Christianity are inundating Europe. The natural uptick in crime and rape is as predictable as it was planned. The reaction of people who have been forced to tolerate such violence, abuse and outright loathing in their own homes, is just as predictable. Even when the media that calls itself unbiased sell a narrative counter to reality, reality gets out, via the internet. The radical influx of people antithetical to the culture of Europe is abetted by their prodigious birth rates. Even the slowest European must be able to see the future for their children, and so they either react or go quietly into the night.

The idiotic unheard of money printing, and monetizing anything they can see central banks, have created a situation that can only end in an epic economic bubble burst during a recession. Adding trillions to their balance sheets for what has amounted to zero actual economic growth, punishing savers with zero percent interest on their savings thus disincentivizing saving, has put central banks the world over in a dilemma. When the bubble they knowingly inflated, to protect their progressive president from the results of his flagship policy, the affordable care act, pops, they will not be able to lower interest rate much below zero without causing a run on banks so they will be stuck, their own policies feeding back into a recessionary cycle, driving it ever lower. There is not a person among us who doesn’t feel this, even if they are not able to put it into words.

We have an input, the social and economic upheaval we are at the cusp of experiencing due to the corruption of the elite, and we have our reaction… that will decide the outcome. Should we react, as the elite want, with violence? No, that would be playing into the hands of the elite. They desire a violent reaction from us more than a husband his new wife. We know we are being pushed and many feel it is near time to push back, but I tell you, push with letters to your “representatives” and newspapers, stop voting for the establishment candidate, look at the truth rather than the propaganda, even create a political party that stands for less government. Our reaction to the provocations of the elite have to be counter to what they seek else we are pawns in the game of our own demise.

Sincerely,

John Pepin

Political Heroin

Monday, October 26th, 2015

Dear Friends,

It seems to me, addiction to heroin always results in poverty, sickness and a loss of one’s soul, socialism is exactly the same. Like addiction to heroin, political heroin, socialism, promises good times but delivers anguish. Both addiction and socialism make people dependent, they ruin lives and remove the incentive to get ahead. Both are alluring however. The idea that something can be had for nothing, wealth in the case of socialism and euphoria in the case of heroin, is very attractive. Today we have politicians who are nothing but pushers. They shill for socialism as a cure all for the ills socialism has visited us with. They offer a free sample, later doses of socialism will cost you dearly though, your job, your family and your soul. Even many so called conservatives offer out socialism, they say a little socialism won’t hurt you, just like a pusher claims a little heroin won’t hurt you. Both types of pushers are villains.

Imagine all the people who’s lives have been ruined by addiction to heroin. We have all seen the television shows where the heroin addict is a pathetic figure, emaciated, jonesing for a hit, strung out and will do anything for another hit of heroin. They live on the streets, stink because even taking a bath gets in the way of their addiction and plead with passers by for money. They have given up their humanity, their lives and their very souls. Of course they didn’t start out that way. Most heroin addicts started as attractive, personable and outgoing people who had it going on. They thought a little high wouldn’t hurt so they open the door and walked through. It doesn’t happen overnight, and that is the trick. Their friends see them going on as if everything was well with them and try it for themselves. Then they too walk through the door to ruin.

People in socialist countries mirror heroin addicts. The nation usually starts out as relatively wealthy. They have people that are attractive, personable and have it going on. They convince themselves the country would be better off if they tried a little socialism. The fall doesn’t happen immediately, some nations last longer than others, but the fall is inevitable once that first taste of socialism has been tried. Eventually the people are starving, the middle class is destroyed, the family unit has collapsed and the people have turned from all morality and religion. All anyone wants is the next free handout. The work ethic is corroded to the point where fewer and fewer people work and more and more become dependent on the handouts. People live in the streets from lack of opportunity and when the government runs out of other people’s money, famine, filth and despair fill the land.

The examples of nations that have gone down the path to addiction are legion. Venezuela is only the latest, but that nation, rich in natural resources, was preceded by hundreds of others. The socialist politicians like to point at socialist countries that haven’t lost everything yet, like a high school kid points to the functional addict, who is still on the football team, as an example of who he wants to be. They claim the functional addict is happier, more popular and cooler than you. All the while offering a free try. This has happened since the invention of political heroin by Rousseau. It is the functional addicts however that keep getting more people, and nations addicted to heroin and socialism. Even the most functional addict eventually falls and becomes destitute.

Today our politicians claim we need to become more socialist to solve the problems that the welfare state has brought about. They blame capitalism, but there hasn’t been capitalism since the 1920s. They point to the functional addicted nations as examples of what we should do. They point at the results of our past use of political heroin and offer that we just need to do a little more and everything will be better. No different than an addict who believes things are terrible now but everything will be better once they find a dose… and it seems to be while the dose lasts, but every dose, either of heroin or socialism, needs to be bigger to get the same result. Eventually, no matter how large and potent the dose it only keeps the addict level, the high has gone, but they need it just to stop the pain.

Heroin and political heroin, socialism, have the same attractive qualities, they both have the same addictive nature and they both ruin. At first the high seems harmless but as the addiction progresses it becomes all powerful. The answer is not to only take heroin on Friday nights, that becomes impossible, the answer is to go cold turkey. Of course, that answer is not what the addict wants to hear. They will argue to the head of a pin that it wont work, will be too painful, and that it might even kill them. What they really fear however, is the withdrawal. A heroin addict feels like their bones are breaking as they withdraw from heroin and a nation will feel similar pain as it withdraws from political heroin, socialism, but unless the drug is kicked, the fall is eventual. Both heroin addicts and political heroin addicted nations will eventually reach rock bottom, and will be forced to quit, Venezuela is almost there. Sadly, the draw is so strong, even after the pain of withdrawal, both will usually become addicts once again the moment they get back on their feet… and so, the addiction seldom ends, until the addict dies.

Sincerely,

John Pepin

The Evil of Progressivism

Thursday, September 3rd, 2015

Dear Friends,

It seems to me, a cursory glance at the news today shows the results of progressivism, in bright lights. The news is filled with absurdity. From the now nearly complete genocide of Christians in the Middle East, to the collapse of economies around the world, the news is the greatest indictment of progressivism there could be. American pragmatism teaches that you look at the fruit of an idea or policy to see if it is good or not, and progressivism has shown it produces poison fruit and thus is evil. In every way progressive governments choose evil over good. There is not one example where they choose good over evil today, why is that, because progressivism itself is evil. It is not compatible with humanity, human heartedness, liberty, or enlightenment. Progressivism is a return to the dark ages where the government was ruled by absolute monarchs. Progressivism even has the audacity to seek to control the thoughts of people! It seeks absolute power and uses that power to turn society, the culture and people to evil.

This latest spate of police killings is another example of how progressivism is evil. The progressives who run the government today, have ginned up hatred of the police by their rhetoric, their policies and their own hate. They have led society to a place where murdering a police officer is an act of civil disobedience. They have changed the conversation, from why are so many blacks killed by other blacks, to attacking the very people who are trying to prevent the slaughter! Those cities controlled by progressives have violent crime rates that dwarf war zones! Despite having the toughest gun laws, that are unconstitutional in and of themselves, the murder rate in Detroit, Baltimore, Washington DC and anywhere progressives run government, a human being with dark skin is exponentially more likely to be shot to death than die of anything else! Yet the progressives point at the police who are charged with stopping the slaughter of the inner city. Clearly progressives want blacks slaughtered.

Progressives support planned parenthood’s slaughter of innocent babies. They tax us and give that money to an organization that routinely overcharges for simple procedures, so they can pay their CEO and upper management six figures! Now that video has come out showing a planned parenthood doctor cutting through the face of a live baby boy to extract his brain, with no anesthesia, the evil of planned parenthood cannot be denied, yet progressives in both parties still support it! Since progressives cannot claim ignorance anymore, yet still support it, they must also support infanticide and torturing a baby to death. By any measure, that is pure evil, and those that support evil are themselves evil. Since that is what is going on, and they know it,by definition… progressives are evil.

It is undeniable that Christianity has ceased to exist in it’s birthplace. Christians have been rounded up, slaughtered by burning to death, children have been crucified, Christians have been beheaded on video and Christian girls as young as 5 years old have been sold into sex slavery and raped multiple times a day. These crimes against humanity are going on as you read this article! No human being with an atom of empathy could call it anything but evil. Not only evil but open and braggadocio evil! Yet the progressives in both Europe and the US… REFUSE TO ALLOW PERSECUTED CHRISTIANS ASYLUM!!! Progressives demand the Christians who face such horrific crimes, because they are Christians, simply accept their fate! Their actions prove progressives support and condone the genocide of Christians! There can be no other conclusion… genocide is evil, and those that support genocide are evil, therefore it follwos… progressives are evil.

Under the watch of progressives the economy of the world is melting down. They have printed trillions of dollars, Yen, Euros, Renminbi, etc… to hide the results of their policies, despite the overwhelming evidence that doing so always leads to economic catastrophe. There is not one example in economic history where money printing has ended well. This time however, it is not one nation that has printed it’s currency to oblivion, but all countries! Never before in human history have so many countries printed so much money to prop up their economies. The printing has inflated bubbles around the world, it has also warped the flow of capital to unproductive enterprises, due to the pernicious incentives of low cost loans. As we watch the stock markets, bond markets and businesses collapse in slow motion before our eyes, and with them our hard earned savings evaporate… we have the progressives to blame. They run the banking system, our governments and the media that reports on them.

In every way progressives have chosen evil over good, they denied God three times at the democratic convention, then booed him. Therefore they must support Lucifer. The National Socialists got their ideas from American progressives, especially the ideas of racial purity and breeding supermen. Progressives choose death over life every chance they get, the death of babies, the death of Christians, the death of Jews, the death of liberty and the death of capitalism… are all their policies, and the results are plain for anyone to see. Our civilization is in disarray, our society is coming apart at the seams and our economy is melting down and with it our standard of living. Progressives have visited catastrophe on us, it produces poison fruit, but how many are awake enough to recognize it? How many of us will believe the progressive media that it is the fault of people with no power? How many more times will progressives visit evil on us… before we learn? Or are we simply too stupid to learn?

Sincerely,

John Pepin

Nuclear World War

Monday, August 24th, 2015

Dear Friends,

It seems to me, the instability on the planet today is… the new world order. The new world order is disorder, violence, wars of aggression and human suffering on a scale heretofore unimaginable. You think the suffering WWII visited upon the world was bad, we are about to enter a warring states period that make WWII look like the War for the Chaco. It is not going to merely bankrupt you, nor simply destroy your standard of living, this coming world war will have you watch as your children are butchered, starve or die slowly of radiation poisoning. Everything you have, want or imagine will be taken from you, because of this instability.

Nuclear weapons are proliferating around the world. When the US and Europe took down Muammar Gaddafi, the only autocrat to give up WMD… they essentially told the world’s tyrants, get nuclear weapons! Now we see the despots of the world got the memo. Since then more and more countries are developing nuclear weapons as fast as possible. North Korea abandoned it’s treaty with the US limiting it’s ability to get, amass and deliver nuclear weapons, Iran has signed a treaty with the US that allows Iran to inspect itself, and the cold war between Pakistan and India is heating up, and soon may go nuclear. Proliferation of nuclear weapons in the hands of despots and psychopaths cannot be a good idea.

Every continent on the planet except Antarctica and Australia is at war or in economic collapse. Wars rage around the globe, and the fire is growing. Asia has several wars in progress, ISIS is religiously cleansing the Middle Eats of Christians and Yazidis. Europe sees Ukraine and Russia in open conflict, Africa is awash in bloodshed, South America’s economy is melting down and still has active Marxist insurgencies going on, and in North America, the US has open fighting on the streets between Black lives matter and the police. Instead of cooling down, these conflicts are getting worse, while the world’s economy is in full recession.

There is a full blown currency war raging today, economies are collapsing and a global recession is on it’s way, nothing is more conducive to war than economic collapse. Europe’s economy is in full rout with Greece needing a new loan every time a loan payment comes due, Spain and Italy are ready to go bankrupt even as Europe is being deluged with Islamic immigrants who are intent on subjugating the native Europeans. Brazil’s economy is ablaze, Venezuela is in hyper inflation and just announced martial law. China’s planned economy is not going as planned, it’s manufacturing numbers just came in at the crucial 3500 level, the Renminbi is being devalued and the Chinese stock market is in free fall again, despite the government making it illegal to sell stocks! Every world war has been presaged by economic upheaval.

China is gearing up to expand it’s empire. The definition of empire is a large area controlled by a hegemonic group, usually based on ethnicity, reigning over many other ethnic groups. China is run by communists and the hegemonic ethnicity are Han Chinese. They reign over Tibetans, Mongols and Uyghurs. Today China is building islands in the South China sea to expand it’s military might, threatening the Philippines, Taiwan and Japan, on land China claims the northern states of India and Vietnam. They plan on expanding, which is what empires do, especially Marxist empires.

The Middle East is on fire since Obama threw in with the Arab Spring. Christians and Yazidis have been all but exterminated from that part of the world, people are fleeing the wars into Europe where they bring with them chaos, terrorism and bigotry. Iran’s nuclear program is being funded by Obama and European leaders and given the green light as well, despite the constant chant of “Death to America! Death to Israel!” We hear from the leaders there. Antisemitism is on the rise again around the world another event that has presaged every major world conflict.

Humanity has a very real possibility of facing extinction because of this coming convulsion. With nuclear weapons being distributed to every insane despot on the planet, instead of being inconceivable, nuclear exchange is rapidly becoming inevitable. Even a limited exchange between Pakistan and India would create a nuclear winter. A Nuclear winter that would destroy crops needed for billions of people to survive. At least global warming would be over… because we would be entering into another ice age. An electro magnetic pulse attack (EMP) on the US, China, Japan, Russia and Europe would return humanity to the dark ages, famine, disease and chaos.

Meanwhile, our leaders claim a fiction is our greatest threat, ignoring the train bearing down on us for the ant crawling over our shoe, maybe so we will be hit by the train? They seem determined to keep us distracted as the world melts down. Our leaders are the ones who’s policies are directly responsible for our dire situation. They overthrew Gaddafi and instituted the new incentive for despots to nuclear up, they have taxed, regulated and spent our economies into oblivion, they are the ones wholly responsible for the next war, yet they point to an imaginary threat as that which we should focus on. This entire coming catastrophe is the direct result of our leaders failing us.

I am not saying the world war will start Thursday at 3:00 pm… but I am saying it is coming, if it’s not already here. Future historians, (if there are any) will have to make that call. The vacuum Obama made when he pulled the US out of the world, has empowered despots around the planet to step in and grab what they can. Economic collapse always ushers in war, the ink of human history is blood, and the world’s economy is at the precipice of an epic fall. Our leaders have made it possible for the world’s autocrats to get nuclear weapons making the next conflict likely a nuclear one. In every way our leaders have failed us, leading us, predictably, to this place. If there is future history, they, Obama, Putin, Merkel, Khomeini, Assad, Chavez, etc… will go down along with Tamerlane, Kaiser Wilhelm, Stalin, Hitler and Mao as fiends who broke the world. Prepare yourself and your families for it. The well prepared have a much better chance of surviving over the ill prepared.

Sincerely,

John Pepin

Austerity

Sunday, July 12th, 2015

Dear Friends,

It seems to me, the new class tosses words around like bombs, they are intended to blow up, terrorize and distort the perceptions of people, tricking us into believing a thing is bad, when it is in fact good. There is no end to the examples, but I want to focus in on the term, “austerity.” Most people had never heard the word, austerity, five or ten years ago. That is one of the advantages of using it as a political bomb, the usage and meaning are fluid in the minds of those who have never heard it. Since we use context to understand words we don’t know the meaning of, and in that context we assign them a definition in our own mind, we can be manipulated by them. Often that definition is based on a false premise. These properties of human language are exploited by the new class to motivate us into doing damage to our own self interests while advantaging them. Your self interest and that of your children are profoundly effected by such chicanery.

Governments, from time immemorial, have over spent. It is the nature of government. The reason is that those who get to spend the money are never the ones who had to work for it. They take it, often at gunpoint, and spend it to enrich themselves, their cronies and expand their power over the people. Such a situation works fine for awhile, but eventually the economy that supports the spending must become hollowed out and collapses. As the economy gets closer to the eventual fall, the elite become panicked that their gravy train might not pull into the station tomorrow, and use every trick in the book to make sure it does. They sock as much money away as possible, to protect themselves from the calamity they created, while gutting the people they are supposed to serve. To do that they have to manipulate us into allowing them to continue the spending until the whole thing collapses.

So, what does “austerity,” really mean? It has basically two meanings, the first and the one most people today assign to it is; “sternness or severity of manner or attitude,” the second and the one that makes the most sense in usage as it pertains to government is, “extreme plainness and simplicity of style or appearance,” and the third which is related to the first is, “conditions characterized by severity, sternness, or asceticism.” You see, what the elite are trying to make you believe by using the term austerity, is that severe, hard, and by association, mean… measures are being taken by government, for no reason other than to make poor people suffer. The reality is far different however.

Using words with a negative connotation like austerity is a way of fooling us into going along with the elite’s wants. Notice how whenever the word austerity is used… it is aimed at our interests? Moreover, when austerity is actually implemented, it is always tax increases and never meaningful spending cuts? The elite, who don’t have to pay taxes but do get the primary benefit of spending, always fall on the side of tax increases. When those tax increases lower Gross Domestic Product, they point to that evil austerity as the reason, never at the spending, it’s pernicious incentives or the negative effects of taxing an economy to death. Remember, tax is synonymous with friction and burden. They want to keep the gravy train rolling so they terrorize us with words.

Real austerity, austerity that is of the second definition, “living in a Spartan like manner, austere, eschewing comfort, living simply, etc…” would be cutting spending. That is never the way it is used though, is it? The word is tossed out like a mad anarchist bomber throws an explosive into a crowd. It is used to terrorize and disperse people. Real austerity in Greece, Argentina, Venezuela, Spain, Italy, the US and elsewhere, would be to cut spending. That spending will eventually have to be cut, because sooner or later there will be no one left, stupid enough or rich enough, to cover it. The people will become impoverished, the banks will go belly up and those elite who have made the most, will have their money in an ivory tower… guarded by people who’s allegiance is guaranteed by the fact they would die if they were thrown back into the burning building that will be our economy. Until then, austerity will be a dirty word, after that, real austerity, cutting spending, would have been the only thing that could have averted disaster.

Sincerely,

John Pepin

Economic Cancer

Thursday, January 22nd, 2015

Dear Friends,

It seems to me, the economy has cancer, sectors that are supposed to facilitate business creation and operation are now the ones supported and the real economic actors, (firms that build things and provide services) are now facilitators. I am of course talking about the legal profession and the financial sector. Turning the economic incentives against the creation of businesses and capital expansion of their production. This has had the effect of decoupling wages from productivity, drying up capital available to expand production and start new firms, adding extraordinary costs to doing business and lowering profits for firms the create things. An economy reacts organically to inputs from the actions of it’s various sectors, as such, when incentives become perverted firms need to use more and more creative measures to stay competitive, and are forced to do creative accounting to appear more profitable than they really are. All these negative incentives in an economy result in lower economic outcomes for everyone… except those in the financial and legal services sectors.

The financial services sector of the economy is there to be a conduit from people’s savings to firms looking for capital to start or expand their businesses. The way economists traditionally see banks is that they take in the savings of individuals and firms, paying reasonable interest, amass that capital and make it available to businesses to start new ventures, or expand profitable ones. In this scenario both savers and firms win, a win win. However, today the financial services sector has become the be all end all of the elite. Politicians kowtow to the too big to fail banks, giving them special privileges denied to other sectors of the economy, they have out sized power over the policies of government, there is even a shadow pseudo government agency that explicitly protects them… the Federal Reserve. Instead of being a facilitator of business the financial services sector has become the focus of our economic policy. Wall street versus Main street if you will.

The legal services sector is there to allow self interested people to come to agreements that benefit both parties. It is imperative that when people do business they trust each other. That is impossible without verifiable contracts and standards holding all participants to their word. These important factors in facilitating business cannot be overstated. Sadly, the legal system has bent over backwards to undermine this very noble calling and pervert it to serving lawyers, at the expense of everyone else. Today, contracts are only as good as the lawyers who break them on some absurd technicality, the primary role of attorneys is to bankrupt businesses for huge profits, drive up the cost of doing business by a continual threat of frivolous lawsuits, and keep new possibly disruptive products from the marketplace to protect older less efficient ones who have political favor.

The liver is supposed to filter toxins from the blood. As long as it does it’s work the body is healthy, but when the liver becomes distended and cancerous, it ceases to filter toxins. Instead it adds to the toxin load in the body. In that case the liver has ceased being a facilitator of bodily health and instead has become a drag on the body’s ability to function. The financial services and legal service sectors have become like a cancerous liver and kidney. They don’t perform their function in our economy, like a cancerous liver and kidney cease to filter blood, they only serve themselves. In both cases, a cancerous liver/kidney and perverted financial/legal sector, the body eventually dies… and so does the economy. Until the cancer is removed, allowing them to return to their correct function, the body becomes more and more diseased, and the same is true with the economy.

The proof is in the out sized compensation of those in the legal and financial sectors. The wages of the lawyer far exceeds that of the entrepreneur. The bonuses of the “banksters” is exponentially more than the those who create wealth. From this small example we can see that the lion’s share of profits today, flows to those who are supposed to facilitate business, from those who actually do business. The huge percentage of the total economy of these two sectors, that are supposed to be facilitators, is proof they have outgrown their place and, like cancer, have become a threat to the very existence of our economy. Since everyone wants the most profit possible for their actions, it is clear that the extraordinary wages in the financial sector and legal profession, come at cost to the rest of the economy, imply that those sectors have more than their fair share of power, political and economic, because if they didn’t those profits would be instead kept by those who create things and provide other services.

The result is that our economy, the world over, has become dysfunctional. The financial services sector now only serves itself, at cost to the rest of the economy, it doesn’t fund small business start ups or CAPEX, because taking printed fiat money and investing that money in government bonds is more profitable, moreover, it earns the favor of the political elite. This drives up the cost, and pushes down the return, on those bonds. Lawyers get rich by finding ways to break contracts, drive up legal expenses, suing firms and individuals and otherwise undermining the economy. These two sectors have become cancer in the most alarming sense. Most people understand this, at least subconsciously, and hope it will solve itself, but cancer never spontaneously heals, it only grows. If we don’t cut the cancer out with legal and financial reforms, and prevent it’s recurrence… the cancer will eventually kill our economy.

Sincerely,

John Pepin

The Brink Of Economic Collapse and World War

Monday, December 15th, 2014

Dear Friends,

It seems to me, The world’s economy is teetering on the brink of collapse. I know, many “Henny Penny” pundits have been saying that for awhile, but I believe the portents are there to substantiate the thesis now. We are in this predicament because governments the world over are so in love with Keynesian economics, the welfare state and socialism. Japan and it’s Keynesian driven lost decade, France with it’s love affair with socialists and socialism, Germany trying to buck the trend, Russia more interested in expanding it’s sphere of influence than improving it’s core economy, South America’s fling with outright Marxism, the never ending wars and corruption destroying Africa’s economic future and China with it’s aggressive threat to expand it’s empire as well, our world is perilously close to an economic disaster that will lead to a world war. I hope and pray something can be done to head it off but I fear it is too late. Our leaders will never admit they were wrong about Keynesian tax and spend economic policy and their new class supporters would revolt if they did.

Japan had a huge budget surplus in 1990. Since then, they have spent so much on Keynesian stimulus they have built a huge debt, and have now stooped to monetizing their debt, in the name of “stimulus.” Their GDP is stagnant but the standard of living is falling due to rising inflation. All proving, no matter how much a nation protects it’s gargantuan corporations, unless small businesses are allowed to start and thrive an economy is DOA.

France sways between socialism lite and Marxism in it’s leaders. Even one of the most pro capitalist politicians in France, Sarkozy, is in love with the welfare state. France has gone from one of the primary engines of the Eurozone, to an empty freight car, that has to be pulled along with most countries in Europe. The southern nations of Spain, Italy, and Greece are in total economic collapse. Even Norway is having trouble with the low crude oil prices putting a damper on their economy. Europe is even intent on changing it’s demographic from Europeans to Middle Easterners, who have a totally different world view than Europeans, which is a social experiment never done before, with unknowable repercussions.

China has embraced Keynesian economics in a big way. They are following in the footsteps of Japan and the results appear to be the same as well. China has experienced a huge growth in the standard of living of it’s people, like Japan did after the war, because of it’s embrace of capitalism. It has done what Japan did, becoming a giant exporter of goods, and doubled down on the Keynesianism by ginning employment by building ghost cities. That economic paradigm can work for awhile, as we have seen in Japan, but once the economy matures to the point where cheap labor and crony protections stop being the primary driver of growth, China will, and we see it now, slow, stall then fall… as did Japan.

Africa is mired in a cycle of war, socialism and corruption. Even South Africa with it’s vast resources is faltering under the weight of it’s Marxist policies. There is not one functioning government on the entire continent! From Egypt and Morocco to South Africa and Namibia every government is either corrupt, outright socialist, at war, or some admixture. Despite the oceans of oil under Africa, the glittering mines of diamonds and gems, the uranium reserves as well as precious metals deposits, Africa’s economy has been in almost total free fall since the colonial powers were thrown out.

South America has gone down the road to serfdom in a big way. While Venezuela is the poster child of a dysfunctional economy, due to Marxism, the whole of the continent is staggering under the weight of Marxist insurgencies and policies. Venezuela stands a bit of focus, they didn’t buy the oil infrastructure foreign oil companies built, they moved troops into them and declared them state owned. Hugo stole anything he wanted. Despite getting the infrastructure free they cannot run it and it is collapsing. Argentina has more resources than 90% of other nations, yet continues to go through spate after spate of hyperinflation, because of their beloved welfare state. So much so they have obliterated the middle class.

The United States still has not recovered from the Great Recession despite the propaganda to the contrary. Even as the US economy continues to stagnate the government is intent on increasing regulations and taxes. Moreover, the US government has become enamored with becoming a police state, complete with total monitoring of all it’s citizens ala… 1984. The deficit has exceeded 100% of GDP at 18 trillion dollars on a 17 trillion dollar economy and rising another trillion a year. Even as the welfare state is destroying our economy, the new class calls for more welfare, more taxes and more regulations, while undermining wages with illegal immigrants, subsidized by welfare state policies. Proof is the US dropping in rank of free economies.

I like to compare the economic fortunes of places like Hong Kong and Singapore with the likes of Argentina and South Africa. The difference couldn’t be more stark. While South Africa and Argentina have vast natural resources, Hong Kong and Singapore have none, yet the economies of Hong Kong and Singapore are dynamic and bustling, while the economies of South Africa and Argentina are basket cases. The reason is simple, Hong Kong and Singapore encourage small businesses to start and grow, have minimal regulations and taxes, while South Africa and Argentina are highly regulated, high taxed and undermine the work ethic with their socialist policies.

All of this brings us back to my original premise, that our World’s economy is on the brink, and that brink could very well lead to world war. The collapse we are seeing in the price of oil is driven by diminishing demand because supply has grown less than reported World GDP growth. Since energy is a primary input for all economic activity, that lower demand is telling of the direction of our economy, of course it is a short termed event… due to the cartel. If our World’s economy does collapse, it will be because of the new class’ love of power and control over the lives and fortunes of the people, justified by the siren of socialism. Economic collapse will inevitably usher in another world war. WWII was driven by the economic collapse of the Wiemar republic brought on by the draconian terms of the Armistice and the Great Depression. This time it will be no different. The alliances might be different, but the result will be the same, poverty, violence and suffering on a global scale. Sadly, when it is over, our leaders will not have learned the lesson, again, they will go back down the Keynesian road of socialism and welfare state, again… with the same results, again.

Sincerely,

John Pepin

Corruption and Poverty

Thursday, May 29th, 2014

 

Dear Friends,

 

It seems to me, there is nothing more destructive of a nation’s economy and standard of living, than corruption in government. This is obvious but also can be proven simply through observation. Corrupt public officials corrode the foundation of an economy in a myriad of ways just like acid corrodes metal. That so many countries have such profound corruption, is a statement to the corruptibility of those with power, who are essentially unsupervised. We allow this to go on out of a sense of powerlessness, but if we want a better life for our children and their children, we must act against corruption.

 

Simple observation shows the truth that corruption is destructive of a nation’s economy. One example should suffice to make the example, but examples exist the world over and throughout time, in this Mexico is not the most corrupt nor the only corrupt nation today, it is merely the example I am using. Despite many advantages most other nations don’t have, Mexico is the poster child for poverty… and corruption. Pharmacists are often in cahoots with the police. When an old couple from the US go to Mexico to buy cheap prescription drugs, many Mexican pharmacists call the police, who then arrest the old couple and hold them for ransom. The pharmacists gets his kickback and the drugs back to continue the scam on another unsuspecting old American couple.

 

If someone is pulled over in Mexico it is insulting to the officer not to be offered a bribe. If the bribe is too low the victim can be jailed. The court system is known for its corruption, where a person with power gets a get out of jail free card, while everyone else gets severe punishment. Permits and licenses must be purchased with bribes. Even the jails are crooked. There are stories of drug cartel members allowed to go out at night to commit murders, even with the guard’s own guns! Today there are Americans who accidentally got to the Mexican boarder, who wanted to simply turn around, but were arrested and sent to jail! The list of the debasement of the Mexican authorities is endless.

 

All the corruption in Mexico results in poverty and want. In a system where justice is arbitrary and dependent on political favor the market cannot function efficiently. In a place where anyone who gets ahead is subject to kidnapping, any where and anytime, with the police turning a blind eye, producers are driven away to places safe for their families. In Mexico and anywhere government can be counted on to do the wrong thing the incentives are all pernicious.

 

Those who operate virtuously are punished while those who are despicable are rewarded. All the incentives drive more corruption. Judges who punish purchasable police are murdered and politicians who speak up are killed. Anyone who tries to stop the corruption is slaughtered and their heads rolled into a dance as an example to anyone else who would speak up. The results speak for themselves… Mexico and all other profoundly corrupt nations nurture poverty.

 

The constant threat of murder, kidnappings and worse subjugate the people to a sense of powerlessness. This is magnified when the people are disarmed so the corrupt have superiority of firepower. The tainted have no fear their next victim will shoot back, the police have seen to it they can’t, while providing weapons to the despicable. Just like Obama did in Fast and Furious. The people must simply try to hunker down and stay off the radar. This includes not getting ahead because that would put you in the sights of the criminals.

 

The level of corruption we see in Mexico often leads to a socialist government taking control. Typically resulting in more corruption but at a higher level and less susceptible to scrutiny. This is the case in Venezuela. The lot of the people goes down even more because the corruption becomes sanctified by the State. In such a system revolution is out, because the State will use whatever force it needs to stay in power, and the elite around the world will turn a blind eye to it… as they have done in Venezuela.

 

I have outlined a means to stymie government corruption, a Fourth Branch, or in other words, a Constitutional police of government. If one were set up in such a corrupt country as Mexico, there would be a civil war between the entrenched criminals and the new branch, but with the backing of the people a Fourth Branch could get the corruption under control. The only other option is total collapse of the government and system resulting in societal upheaval and eventually revolution. The people are caught in a trap of the criminal governor’s making. They can die by drive by shooting or die by firing squad. Not good options, a Fourth Branch is at least a possible way out… if they were to take it.

 

 

Sincerely,

 

John Pepin

 

Fast Food Economies

Thursday, April 10th, 2014

Dear Friends,

 

It seems to me, just because someone eats nothing but doughnuts, drinks only soda and chain smokes cigarettes, doesn’t mean they are going to have a heart attack tomorrow, but it is an indication they will have problems in the future, economies work the same way. When an economy depends on nothing but printed money, government deficit spending and crony capitalism, it doesn’t mean that economy is going to collapse tomorrow, but it does mean there will be some big problems in the future. It should be obvious to anyone that doing these things will negatively effect an economy over the long term, and anyone who disavows that they will, is either in denial or conning us. Since our lives are so profoundly effected by the economic situation we find ourselves in, it is of the utmost importance we understand the consequences when our leaders do these things with our economy, just as it is when we smoke, eat fatty foods and drink sugary soda.

 

The guy who eats nothing but doughnuts and believes he is different and can eat trash without effect is just like the lawmaker who claims deficit spending is a good thing. Deficit spending is like empty calories, it seems good when we see the GDP “growth” that comes of it, but that “growth” is nothing more than fat. What makes it worse is that the fat that comes from deficit spending requires more deficit spending, else it wastes away and we see negative GDP growth… and no one wants that. What we don’t see, is that fat doesn’t do actual work, it just sits there sopping up more and more capital from productive economic uses.

 

Soda tastes so good, it is hard to believe that it has any bad effects on our health, exactly like monetizing the debt is so delicious that it cannot possibly effect the currency. The fact that it seems to be benign in the short term buttresses this false notion. The effects on our currency from continued money printing, especially printing that far exceeds our GDP growth, builds up tension in the currency. The US is not alone in the money printing business however, and perhaps this is another reason the short term results appear to be harmless… so far. Nothing could be further from the truth, there is not one example in human history where monetizing debt has not eventually resulted in runaway inflation, the fact that the whole world has gone down that rabbit hole might delay the consequences for a while, but the eventual results will not be ignored.

 

Just as the smoker is in denial his or her smoking will effect their health… the government pretends that crony capitalism will have any side effects on an economy. Crony capitalism seems like a win win to both the crooked politician and the corrupt businessman. The President, lawmaker or bureaucrat who gives beneficial regulations, tax breaks and other hand outs to his political backers, only sees the benefit to them but not the negative effect on the market. Crony capitalism pollutes and rots out the core of an economy. The lawmaker might get reelected, because of the vast amounts of campaign money crony capitalism brings into the electoral system, but the incentives in an economy change when crony capitalism is used. Where crony capitalism is rampant, instead of providing better products, service and value for consumers, businesses seek political favor. This is because under such circumstances it is more profitable for a firm to garner political favor than to meet customer’s needs. This pollutes the market with political favor and rots it with declining productivity.

 

It is not just the US that is eating fast food and chain smoking countries the world over are doing the very same thing. That we all have poorly performing economies is only one symptom, like shortness of breath, but these policies have a much more pernicious long term burden. If a person lives this way he or she eventually experiences cardiac arrest, and when a nation lives this way, they must experience catastrophic economic collapse. It is funny that we can see this clearly in people but are blind to it in our government policies and national economies. Heart attacks can be survived, if the proper procedures are used, catastrophic economic failures can be survived as well, but there must be people available who have the power, knowledge and guts to implement the right fixes. More smoking, drinking soda and eating doughnuts is never the proper prescription… no matter how good they taste.

 

 

Sincerely,

 

John Pepin