Posts Tagged ‘elite’

Immigration Reform

Sunday, December 22nd, 2013

Dear Friends,

 

It seems to me, the immigration bill that is winding it’s way through the legislature, should be called “The wage suppression act of 2013.” Let’s face it, the United States does not have a shortage of workers, we have a shortage of jobs. The labor participation rate in the US is falling at an epic rate. The US is in fact the only industrialized country that has a falling labor participation rate. Couple that tidbit with the fact that unemployment is still high by historic standards, and one can only conclude, that for some reason jobs are not being created in America today. Now, to a person with normal thinking, when a country is hemorrhaging jobs, that would be a bad time to introduce millions of new workers… wouldn’t it? Unless the elite think that the reason jobs are becoming more and more scarce is because wages are too high. If that is the case then those in power would do what they can to lower the wages of workers, for example, bring in millions of new workers to compete for fewer and fewer jobs, IE the wage suppression act.

 

Are wages too high in the US today? If we look at wages for skilled and unskilled work in the US, adjusted for inflation, we find that wages are at a historic low. All wage categories, except upper management, bureaucrats, and politicians, have been on a slide down. Wages in the low skilled sector have taken the biggest hit but the high skilled sector has been stagnant for years as well. Engineers in the US, back in the nineteen eighties were at about one hundred thousand a year, and are still at that rate today. Many argue this is because companies like Microsoft, Google, Hewlett Packard, IBM, etc… have been hiring immigrants instead of American engineers. These firms claim there are no Americans capable of doing these high skilled jobs, and that is why these high tech companies are pushing so hard for immigration reform, but facts fly in their faces.

 

Today colleges and universities in the US are turning out record numbers of high skilled people. These new college grads are entering the workforce at a time when there are few jobs and less opportunities. As a case in point, ask the waiter next time you go out to eat, if he or she has a college degree. More likely than not they do. When a college graduate must wait tables, he or she dislocates lower skilled workers, and so lacking a job they fall out of the workforce. So, we must ask ourselves, why are so many skilled people working so far below their potential? Moreover, with wages so low and opportunities so rare, no wonder recent college graduates are depressed and angry, therefore they have the time and are willing to participate in the Wall Street protests.

 

This would seem to indicate that it is not wages that is negatively effecting job creation but some other factor. When Ronald Reagan was elected there was a similar dearth of jobs. Unemployment was high and wages had stagnated. The course Reagan put the US on was not one of raising taxes, regulation, government stimulus and creating new entitlements, what Reagan did was lower taxes, deregulate and ratchet down the entitlement mindset. Calvin Coolidge did the same thing. What was the results of these policies? High GDP growth, rising wages, lower crime, low unemployment and the creation of the term “yuppies.” If you don’t remember what a Yuppy was, it meant a young upwardly mobile person… an all but extinct species today.

 

Since Obama has taken office he has raised a whole slew of taxes, from income to fees and introducing a whole new tax regime, Obama care. His party has regulated everything they can find. Our banking system reels under the weight of Dodd Frank, and the trillion dollar stimulus went entirely to rich political hacks, who went bankrupt as soon as the government check cleared, with not a job to show for it. The Federal Reserve has printed trillions of dollars, to counter the negative effects of Obama’s policies, to no avail. The only people making out well are the uber rich, (you know, the people Obama claims to hate, but spends all his time on Martha’s Vineyard with), government workers and politicians. Washington DC is a boom town awash in money and power while Main Street USA crumbles.

 

So why import millions of new workers who will work for far less than Americans can? The only logical answer to that question is to lower the wages of Americans. Why would the government do that? To diminish the political power of the people and create disquiet in society. Remember, the worse conditions are for the people, the more power politicians get. Since power is their goal, not creating the conditions for a stable wealthy society, the unrest that… diminishing wages, resentment of immigrants, and the crime these beget, drives demand for more regulation, more government oversight, more police, more surveillance, in short, more power to government and the elite. Our compassion for the children of illegal immigrants, is being exploited to lower our standard of living, therefore enhancing the political power of the elite. This should come as no surprise, the new class’ goal has always been to reestablish the power they lost to the bourgeoisie a few centuries ago. Back to the good old days, when there were only two classes, the aristocracy and peasants.

 

 

Sincerely,

 

John Pepin

Principles Versus Party

Monday, December 16th, 2013

Dear Friends,

 

It seems to me, most folks will give up their beliefs for their team, but very few will give up their team for their principles. We all want our team to win. It is merely human nature. When we allow that want for connection to supersede our self interests then we become our own enemy. This happens in many places in life but no place more so than in the arena of politics. Too often we will subvert our principles for our party. If our party is caught lying, we forgive them, but if another party lies, we hold a grudge forever. While it is natural it is counterproductive. We follow out of a sense of connexion but as we do we do great damage to our self interests. It is through following principles that we protect our self interests, and the interests of society as a whole, party is only a means to that end.

 

Human beings need to be connected with others. Team sports is an example of this paradigm at work. We root for our team against all others. Like people in ancient times, and in less advanced societies allegiance to their clan. To a person raised in a capitalist society, where allegiance to clan is out moded we don’t understand their thinking on an intellectual level, but as human beings we are subject to it nonetheless. Those of us that live in a market system weigh the good against the bad and keep a mental tally sheet that guides us as to the right course of action. When we root for our party over our principles we fall back to a less evolved way of thinking.

 

We all would rather believe a glittering lie than an ugly truth but it is in facing ugly truths that we grow and mature. It is in indulging in glittering lies that we devolve as human beings, becoming a force for evil, regardless of the loftiness of the principles we have abandoned. Those that shriek about freedom to do this or that need to do the math. Weigh what we are all loosing for their team to win. Because what is a principle, if we don’t hold ourselves and our team, to them? They become nothing, but an egoistic means of controlling others, that we eschew ourselves. When we abandon our principles for political expediency, for the team, we participate in the destruction of those very principles. It is a hypocrite that expects others to follow his principles when he won’t follow them himself.

 

Without values society crumbles. A society that is devoid of any real principles is a society cast adrift. Great nations, societies and civilizations rise in virtue and fall in vice. This is the sole lesson of history. A great people rise to power, wealth and prominence by following their principles and fall into weakness, poverty and ignominy when they abandon those principles. It follows like water flows down a hill. There is not one example where a people rose to greatness without principles, in other words a societal myth, or where a society thrived by ignoring those principles.

 

Apparently this is a lesson of history that needs to be taught over and over. The results are always the same, the factors that lead up to the fall are always the same, but humanity refuses to learn the lesson. The vast majority of human suffering that has been experienced has been due to this. Today we are no better than the Athenian who abandoned Solon’s laws, the Spartan who turned his back on the laws of Lycurgus, or Rome when it embraced an emperor instead of the consular system. We are no different when we abandon our founding principles, the market system, limited government and individual liberty.

 

Our society is no stronger than the Athenian, Spartan or Roman, because our system is made up of flawed human beings, who are more than happy to give up our principles, for political expediency. The new class seek to regain the power they lost to the bourgeoisie, when the new class was called the aristocracy, and so they need to destroy the principles that gave rise to the bourgeoisie, the market system, limited government and freedom. They seek to restore the old system of political favor, total government and oppression.

 

When we the people participate in abandoning the principles that brought us to such a height of technology, wealth, and freedom, we are as villainous as the politician who lies, connives and usurps. If our team is part of the problem, it is our duty to sand up and demand our leaders return to our foundational principles, else those principles will wither away leaving a destitute society that is controlled by the few using violent oppression, which is the normal case in human affairs. We will have delivered our children into slavery, by abandoning our principles for the team. So I ask you… is the victory of your team worth the enslavement of your children?

 

 

Sincerely,

 

John Pepin

The Commodification of Human Suffering

Thursday, December 5th, 2013

Dear Friends,

 

It seems to me, human suffering has become a commodity, to be traded and exploited for political power. If someone’s suffering can be misused to that end, it is displayed in neon lights, but if it serves no political purpose, or works against the elite’s design, it is ignored. In this truly diabolical scheme, the media are the major players, acting at the behest of the political elite. Both of which are members of the “New Class.” Our innate repulsion at suffering is being played upon, to steer us into a course that is profoundly against our own interests, but in the presumed interests of the elite… or in other words, the New Class.

 

We have an innate revulsion to suffering be it human or animal. It is a human thing, that when we see someone in pain we are made uncomfortable, (except for the sadist). When something makes us uncomfortable we try to make it go away. In the case of human suffering we turn our eyes from it or we do something about it. The political elite know and understand this vulnerability of human nature and use it to manipulate us as best they can. It is up to us then, to be rational in our assessment of what we are shown, judging what is real and what is being used for political purposes and act accordingly.

 

The commodification of suffering is why we are reminded of certain misery constantly, often fictitious ills, like the tragedy of a lack of unlimited access to birth control paid for by someone else, but true human suffering, like the deprivations of Mao, are ignored. The “war on women” is an example of fictitious human suffering, while the genocide against Christianity, that is happening around the World right now, is ignored. The first serves the new class’ objectives while the second undermines it. The fact of illegal immigration is abraded like a perpetual cold sore, so the elite can lower our wages and water down our vote, while the evil of abortion and the suffering it causes, is not only ignored but anyone who points it out is vilified. Our compassion for the uninsured was the tool the elite used to jamb Obama care down our throats. These are only a very few examples of human suffering that the new class uses to promote a political agenda, and that which they keep us ignorant of.

 

Yet the political elite constantly use the suffering of others, to guide us to making decisions that are not only against our interests, but will actually create more suffering of the type they propose to stop! The war on poverty, was ostensibly a means to eliminate poverty, but the results are the opposite. Despite spending trillions of other people’s money the war on poverty has created more poverty than has ever existed in the US before. This misguided program, where the State took the place of the father in the familial relationship, has led to an explosion of out of wedlock births. Out of wedlock births are the biggest source of poverty there is! This malicious program has made millions of people incapable of engaging in the market system, and thus escaping their poverty, locking generations into a cycle of dependency and want. Yet our society was guided to making this terrible decision by the elite playing on our compassion for the impoverished.

 

It seems reasonable that those in the new class, who have had the benefit of the very best education, should have known the logical outcome of disrupting the nuclear family. Otherwise they are stupid and shouldn’t be allowed in charge of a MacDonalds. If they did know, and used our compassion as a tool to get us not only to damage our own interests, but to damage the interests of the very people they purported to help, then it is clear evidence they have malevolence in their hearts. If we look into this one example further, we can see that the only people to really benefit from the war on poverty, are the elite and their minions…. the bureaucracy.

 

To exploit human suffering as a political tool is evil. Human suffering is not a tool like a hammer or wedge, it is a wrong that good people should try to stop. Those that exploit the pain of others to forward an agenda are psychopathic. To do so requires a certain level of malevolence and enjoyment of that suffering. Moreover, to purposefully ignore true human suffering because it is damaging to a political agenda, is sociopathic. To lack a conscience. I think we can all agree that sociopaths and psychopaths should be barred from holding any power over the lives of other human beings at all.

 

I am sure you can easily think of many other examples, where human suffering has been exploited for political advantage, and where human suffering that works against an agenda has been ignored. The pain of another human being is never a tool and to make it such is diabolical. To make suffering a commodity, like oil, gold or lumber, is the very definition of evil. Those that exploit human suffering for their own narrow objectives, should be thrown out of office and barred from holding any power over our lives ever again, and in a sane World… they would be.

 

 

Sincerely

 

John Pepin

 

Charity, Redistribution, Compassion and Resentment.

Thursday, November 14th, 2013

Dear Friends,

 

It seems to me, charity elevates both the giver and the receiver, while redistribution lowers both. This is a critically important thing for the average person to understand. Those who actually want to help their neighbor will try to comprehend, but those who are simply rooting for their team to win the political battle, will refuse to open their minds. This is a tragic fact of democratic politics. We vote for a team, our team, no matter what. Like the Red Sox and the Yankees, it is all about winning the pennant, not improving the lot of Man. The truly human hearted person wants to improve the lot of Man and doesn’t care about party.

 

Before a problem can be solved it must be understood. The simple fact is, political parties exist to take and hold power. This is their primary goal. Parties deal in votes like a baker deals in dough. In the political arena votes are the currency of the realm. Redistribution is where the government uses it’s power, a monopoly on violence, to take from the politically disfavored, and give that money to politically favored groups. Those who think otherwise are sadly deluded. Money is used by the political elite to purchase votes, whether from firms that support them, or the poor. The recipient of government largess is merely engaging in a crass exchange, a vote and support for money, no different than a baker sells bread else his bakery goes broke.

 

From this we can see that the political elite use the power of government, violence, to take from those they disfavor to exchange for political power. Government alms for the poor are no different. This makes the poor a party to a basically corrupt practice intended to help a party get and hold political power. Those that receive the money from government become clients of the party that favors them, just as a wealthy person or firm that engages in crony capitalism, is the client of the party that benefits them. Being a party to corruption makes a person corrupt. This follows like water flows down a hill.

 

Political parties that encourage people to be corrupt show their disregard for civil stability for matters of expediency. Those, whom the money that will be used for political machinations is taken from, are essentially robbed at gun point. If you disagree that violence is the primary means, simply refuse to pay your taxes, then wait and see if armed men don’t appear at your door. Logically, the person who’s money is seized, resents it. This lowers both the giver, the person who’s money is taken by force, and the receiver, the poor, or the corrupt businessman who engages in crony capitalism.

 

Charity on the other hand uplifts both the giver and the receiver. As I have said many times in these blogs, human beings have three parts, physical, mental and spiritual. If any, some or all of these parts are neglected, they atrophy, while they grow strong with exertion. The person who willingly gives some part of the money he or she has earned is exercising their spiritual part. To not only pay lip service to the less fortunate but to actually give of one’s own hard earned dollar is to show compassion. To demand others pay for the poor are examples of envy and greed. Compassion is uplifting and spiritually invigorating but envy and greed are lowering and spiritually destructive.

 

The receiver of real charity is not only getting money, food, clothing or housing, they are getting a sense that others value them as human beings. If someone is willing to freely give of their hard work to help another, that giver must believe the recipient has intrinsic worth. When we recognize someone has compassion for us we become more engaged in society, and we reciprocate with compassion for others strengthening our own spirit. Those that get largess from the State, understand it is not because anyone believes they have worth, but is merely a corruptly crass political payment for support and so, like any other market transaction they want the most they can get for their product… their support. The understanding that you have real worth outside some crass political scheme is spiritually uplifting and builds a person’s sense of self worth. When we believe we are a pawn in a power struggle our self worth is lowered. Therefore charity uplifts both the giver and the receiver while redistribution lowers everyone involved.

 

 

Sincerely,

 

John Pepin

Arbitrary Power

Sunday, October 27th, 2013

Dear Friends,

 

It seems to me that since the dawn of time, city states, nations and empires have warned of the dangers of arbitrary power. Throughout history rulers that attained arbitrary power have brought their people to ruination. The lessons of history are stark and unanimous in their critique of the dangers of giving anyone arbitrary power. From Solon to Stalin the worst atrocities of man upon man have been committed by those with arbitrary power. Yet despite all the warnings, philosophy, and empirical data, we choose to ignore them and bestow Obama with arbitrary power. There can be no good end of this newest experiment in the annuls of Man.

 

Solon, the lawgiver of Athens, warned of the profound dangers of arbitrary power. He was elected to solve the debt crisis in ancient Athens. He did so in a fair way, and went on to make a proscription against arbitrary power, the ostracism. Never a hypocrite, Solon gave himself up to his very own system and submitted himself to the ostracism, for becoming himself a danger to liberty. He was banished from Athens for several years. In those years he saved Croesus of Lydia from being burned at the stake by giving that tyrant sage advice.

 

After the horrors of Tarquinious Superbus, the last Etruscan king of Rome, the people began the Consular system, whereby the rule of Rome would be separated into two men, similar to the Spartan system of two kings. This way no one man could attain arbitrary rule. The system held out for hundreds of years, but was overthrown when Julius Caesar gained popular support, installing himself as emperor… with arbitrary power. Once his nephew was crowned and instituted the Praetorian guard the heart of the Roman nation rotted from within. Within two hundred years, a nation state that had lasted almost a thousand years and had conquered the known world, was destroyed completely. Only the Eastern part, the Byzantines, survived for a few more years, only to be utterly wiped out and the people enslaved, by the Muslim invasion.

 

The many republics of Europe that started as a result of the Renaissance, rose in democratic representation, but fell into tyranny by the executive who wrested arbitrary power for himself. The history of Europe is rife with examples of those who gained this most pernicious form of power and visited slavery, oppression and destruction on their people. Yes, history is unambiguous about the danger of arbitrary power, especially in the hands of an egoist.

 

Democratically elected leaders are no exception. Remember, Hitler was elected in a free and fair election. Tyranny doesn’t necessarily come at the point of a gun it can come from the ballot box as well. That a person is elected by a popular majority, like Caesar, can become a despot, is proven conclusively by history. No matter how a person gets arbitrary power, be it by revolution, machination or the suffrage, arbitrary power always brings with it oppression. It is a factor of human nature.

 

Despite all the warnings from history, philosophy and recent events, a large part of the American people are comfortable giving our elected President… arbitrary power. He has usurped the power of the Legislative branch by arbitrarily enforcing the law, he has silenced the free press through intimidation, he has armed drug lords in a neighboring country, he has taken over a third of the economy by simply deeming a law passed, he ignores court orders with impunity, he abandoned an ambassador and several Americans to torture and death at the hands of our avowed enemies, while at the same time arming those very enemies, then lied about it, he uses the power of the government against his political opponents, he uses the paranoia of national security to record our personal phone conversations, (us and our allies), the list goes on and on, moreover, anyone who stands in his way, like Ted Cruz, is vilified by the political establishment as well as the media that calls itself unbiased. Yes, Obama wields arbitrary power in all but name. History shows us where this will end… unless we stand and demand Our Constitution be followed. If we do not, we deserve what we get… too bad our innocent children don’t.

 

 

Sincerely,

 

John Pepin

The Religion of Socialism

Monday, October 21st, 2013

Dear Friends,

 

It seems to me that socialism is a religion. The committed socialist behaves exactly as if he or she is a member of a cult. A body where their God is the collective, to be sure, but a religion nonetheless. If we think of socialism and socialists in this way it explains a great deal of the twentieth century. This ability to understand the mind of socialists, gives those who don’t follow their religion the ability to effect the future, in a way that allows humanity to escape the horrors of the last century. Perhaps this understanding could give us leverage over those who are falling into the socialist sphere, such that they could be convinced of the true religious nature of socialism, or at least plant a seed of truth in some, that may sprout into a hedge… protecting us all from the sinister winds of socialism.

 

Socialism is based in the Christian faith. If you read Acts, Chapter 4, Verse 32-37 you can see that Marx’s famous saying, “From those… to those,” has a basis in that scripture. Marx’s father was a Jew who converted to Lutheranism. As such Marx would certainly know scripture. From this we can see that socialism is a perversion of the Christian faith. Further it becomes obvious that socialism could never have gained adherents among any people other than Christians. Since Socialism is a misreading of the Christian faith no one can deny that there is not at least some religious component.

 

If we examine the actions of socialists we see their fanaticism. Whenever someone disagrees with the socialists they treat the disbeliever as a heretic. Look at the way Lenin and Hitler, among others, have been worshiped as prophets. Socialists have murdered millions of people, simply because those victims disagreed with the socialist ideal, or for matters of expediency. The true socialist is a zealot. There is no bridge they will not cross and then burn, if it furthers their push for socialism. These are the actions of a religious fanatic, not a scientifically minded pragmatist.

 

All the high minded claims of the socialists are nothing but empty rhetoric designed to manipulate those who are weak minded or lost. The peasant who joins the party and engages in the most heinous atrocities, is weak minded, while the scientists who justifies those barbarities, are lost. Since, as I have written many times before, human beings need something to believe in, those who are lost will turn to a belief that is always pernicious. In this the scientist is especially vulnerable.

 

Many scientists revel in their faith in a mechanistic materialist nature of the universe. In order to have a mechanistic, materialistic view of existence, one must eschew the concept of an almighty God, which is an anathema to them. In this, they demonstrate their hubris… and their ignorance. Since a scientists who believes in a mechanistic, materialistic version of the universe, must disbelieve in a creator, they search frantically looking for a replacement. The socialist is happy to provide that replacement in the form of socialism.

 

Socialism takes the place of a belief in God, replacing it with atheism, or in other words… a hatred of God. The State then fills the void this hollows out in their souls. This is why so many absurdities are professed by the socialist scientists. The logically minded scientist socialist ignores all facts and steadfastly adhere to their doctrine instead. But, science is supposed to make predictions, test those predictions, and if observation disagrees with theory, theory is tossed out for one that better explains observation. To the socialist scientist… theory trumps observation.

 

Examples abound, the fiction of anthropogenic climate change, ignoring the atrocities committed by socialists and a blind faith in Keynesian economics, among others. The socialist worships a notion, and anyone who disparages that notion, is met with violence and derision. The Muslim who beheads an infidel, shows no more religious zealotry than the socialist who herds human beings into the killing fields, or the scientist who rationalizes it. To commit such atrocities against humanity, requires a deep religious fanaticism, fueled by a hatred for God. This is why Obama was so willing to cut the baby, (the US economy), in half… by refusing to negotiate with republicans at all. To him it is a spiritual imperative never to bend to such heretics.

 

If we want to effect the future for the better we need to understand the facts. Socialists are fanatics who will brooch no logical argument, all the while claiming to be the logical open minded ones, and will put no limit on their actions. History teaches us this. Socialist rhetoric belies their fanaticism. Fanatics cannot be reasoned with, they must be defeated, and never allowed near the reigns of government. Those who are not members of that pernicious and evil cult, but who are falling into line, must be shown the true nature of it. It is our duty. Remember… Jesus said there would be many false prophets after him and many would come to ruin because of them. In this the socialists are the very epitome.

 

 

Sincerely,

 

John Pepin

Janet Yellen’s Federal Reserve

Thursday, October 10th, 2013

Dear Friends,

 

It seems to me, Obama’s pick to head the Federal Reserve, Janet Yellen, will continue down the treacherous path Ben Bernanke has put the US and the World on. The huge amount of money printing will continue perhaps at an even faster pace. This has huge implications to the future of the world’s economy. Wall street is excited about Yellen’s pick because she will continue the printing. We are told that this time it will be different because there seems to be no inflation. But if I wind a spring in a clock there appears to be nothing happening, until I wind it too tight and the spring breaks and the clock ceases to function. This may be a good analogy of where we are going with inflation. Once the springs snaps inflation will show it’s ugly head in a hyper way.

 

Today there is very little inflation despite the 4 trillion dollars the Federal Reserve has added to it’s balance sheet. This money printing has amounted to 25% added to the money supply. In Milton Friedman’s theory of money, if the economy grows at 1% and 3% is added to the money supply, assuming full utilization of resources, there will be 2% inflation. You simply subtract the amount of money added to the system from GDP growth to get the expected inflation number. Over the last 5 years we have experienced no more than 9% GDP growth, while the money supply has grown 25%. This implies that when our economy gets near full utilization we will see 16% inflation. If that was where it will stop, it wouldn’t be that bad, it would be disruptive but the economy would adjust and after a few years the problem could be absorbed.

 

The conundrum is that the money supply is not only increased by the Federal reserve, the banking system itself also increases the money supply. When the Federal Reserve buys a bond, the person or institution that sells the bond gets a check. This check is then deposited in a bank. That bank returns the check to the Federal Reserve who then adds that amount of money to that bank’s Federal Reserve account. The bank that cashed the check then has more money to meet it’s reserve obligation. This frees up money for the bank to loan. When banks loan money part of the money loaned is made up. It is not depositor’s nor is it the bank’s, the money is simply invented. This magnifies the Federal Reserve’s money printing by orders of magnitude.

 

Moreover the Federal reserve has been buying US government bonds faster than the US government has been issuing them! That means the private sector is selling their US government bonds into the marketplace. To keep the interest rate government pays low, so the US government can afford the huge debt and deficit, the Federal Reserve must sop up the access bonds. This implies the apatite for US debt is decreasing while the elite argue about raising the debt limit. As nations, firms and people the world over sell US debt, and the Federal Reserve buys that debt, the amount of US government debt held by the Federal Reserve grows. This is called monetizing the debt.

 

Monetizing government debt has been shown to lead to hyper inflation. The most famous case was Wiemar Germany, but there have been many notable cases throughout history, none of them ended well for the country that nationalized it’s debt. Economists will argue that the US is a special case because the dollar is the World’s reserve currency. It is directly convertible into any other currency and all oil is bought with dollars. This means that if you live in Zimbabwe and want to buy a widget from Brazil, you must convert your currency into dollars then dollars into Brazilian currency. This creates a huge cache of dollars held by foreign nations for purposes of trade in commodities and oil.

 

Most of the nation’s of the World understand this and the devaluing of the dollars they hold comes directly out of their national coffers. As a result they are selling US government debt and are seeking ways to directly convert their currencies to any other. Thus eliminating the dollar as the World’s reserve currency. When this happens, regardless if the US economy is at full utilization, the US will experience out of control inflation. As the Federal Reserve winds the inflation spring the tension builds. Eventually catastrophically failing and plunging the World into recession.

 

The only answer is to balance the US budget and reduce the regulatory friction before the spring snaps. The Federal Reserve under Yellen can be expected continue to print money in hopes the US economy will get back on track. As we have seen, even the hint that the free money will slow down has sent the markets into a tail spin. Therefor, to keep Obama’s economy growing at even the pathetic rate it is, the Fed must continue the printing. To get the US Gross Domestic Product growing at the pathetic rate of 300 billion a year the Federal Reserve is printing a trillion. So instead of a magnifying effect the money that is being printed is seeing a negative return in the real economy. If you think about it, these facts make the budget battle in Washington far more important than an obstinately recalcitrant President’s argument with Congress over the debt ceiling and Obama care, it could mean the whole sale closing of all the programs people have become dependent on. If that happens, there will certainly be wide scale social disruption including violence in our streets.

 

To argue that this or that billion dollar boondoggle is so important it cannot be defunded is absurd, especially when you consider the consequences of a true default, which would happen if the US dollar looses it’s reserve currency status. Imagine the value of your IRA falling to zero? Imagine if the value of your bank account fell to zero? Imagine if the Social Security administration went bankrupt? Imagine the military being laid off? Imagine no welfare, no Medicaid, no Medicare and all the functions of government going away… instantly. Do you think that would generate anger sufficient to promote violence or even war? That is why we have to get government regulation, debt and spending under control, to do otherwise is to run at a real cliff, like lemmings… ignorant of the danger until it’s too late. Now that you are no longer ignorant, what are you going to do about it? Keep running, or stop, and demand fiscal responsibility?

 

 

Sincerely,

 

John Pepin

Government Shutdown

Sunday, October 6th, 2013

Dear Friends,

 

It seems to me, Obama is saying to the American people, “resistance is futile.” In the science fiction series Star Trek Next Generation, the Borg were an evil alien race that lived in a collective. The Borg assimilated other people into the collective against their wills. Just as Obama care does. In many speeches Obama made before his election campaign and subsequent election he avowed he was in favor of nationalized health care. The speeches are freely available on line for anyone to see. The strong arm tactics of this administration will brooch no resistance to the collectivization of our health care. Judging by the Obama administration’s all too willing use of the mechanism of government, to punish political opponents, the seizing of American’s health care by government will give this administration hitherto unprecedented power over the lives, health and fortunes of every American.

 

We are told by the collectivists that America needs more diversity. This has become a mantra. Diversity is raised to a sacrament by the progressives, the incarnation of the collectivists in America. Now this is strange because real diversity in thought is not allowed by the progressives, in both the democrat and republican parties. Instead, anyone who believes differently than the collectivists are called, terrorists, anarchists and hostage takers. It would seem that anyone who truly believes in diversity would welcome a debate and encourage diverse ways of looking at a problem. So we have a dilemma, do we believe the words of the progressives, or their actions?

 

Obama will broach no discussion of the law that has savaged the American economy, and in doing so has lowered the economic outlook for people the World over. As I have written before in many blogs, the law that is called Obama care, (The Affordable Care Act), is an economic catastrophe. Those that understand this have taken a stand against this collectivization of the health care system in America. As the new leviathan of a law is implemented it is becoming plain to see that it not only doesn’t work but produces tremendous economic friction. Obama care will be the death knell of small business. This works to the collectivist’s favor. Schumpeter said that government must fetter business so that all businesses become giant, and thus will be easier for government to take over when the time is right.

 

Scott Brown was elected in Massachusetts simply to stop Obama care. His election in that uber left state was a testament of how much the American people didn’t want a collective thrust upon us. This is a clear statement of the wants of the American people at the time, never mind the polls showing the utter disdain we hold for Obama care today. The progressives would broach no stopping their assimilation of the American health care system under political control so they simply “deemed” the law passed, to undermine the results of an election. I would love to deem my taxes paid, but I suspect that tactic is closed to you and I.

 

Obama has said he believes in collective salvation. This pernicious theory is predicated on the notion that the rest of us must be forced to believe as the collective, else no one will be saved. This stands in direct contradiction to the teachings of the prophets of every religion. But is in line with the teachings of Marx and Engels. Collectivists demand we assimilate else we are to be destroyed… personally, (like they did Sara Palin), politically, (like they did Michele Bachman) and economically, (like they are doing to America).

 

History is the best means of divining the future. That which has been done in the past clearly can happen, but that which has never occurred may not be possible. The Nazis brought nationalized health care to Europe, reducing the fortunes of all the people in Europe to political favor. Dissension under a collectivist regime is never allowed, despite their calls for diversity, (until the collectivist gains power). The collectivist will undermine the will of the people if it suits his or her ends and even salvation is collectivized by the progressives. Because to the true believer in the collective, the Borg is the ultimate goal, where our species consciousness supersedes our individuality and we are relieved of our humanity in favor of the collective. So when Obama claims Obama care is settled law, and refuses to negotiate with his political opponents, he shows his true intentions by parroting the Borg, “Resistance is futile.” To that I would answer, “Resistance is divine.”

 

 

Sincerely,

 

John Pepin

Our Bright Future

Thursday, October 3rd, 2013

Dear Friends,

 

It seems to me, I usually warn about potential threats to our liberty and prosperity, but that gives a skewed impression of my true beliefs about the future. I do see many possible dangers facing us, some are from our government(s) running amok and others are foreign in nature, while they have the potential of lowering us and our children to serfs and slaves, the future in the long term, is bright. Mankind has never advanced in a straight line. The progress in human understanding has always been through fits and starts. Sometimes reversing direction for a long time but always eventually getting back on track. The Dark ages were just such an example. Mankind taken as a whole, is a complex system, complex systems have a way of finding equilibrium. This equilibrium of the complex system that is humanity, is generally to improve the standard of living, increase the liberty of individuals and limit the power of political favor as well. In the long, or perhaps short term, this bodes well for the future of humanity.

 

If we look back at the arc of human history we can see that people’s lives used to be short, violent and brutish, (to use another’s phrase). This is still true in some parts of the World. The evils that humanity has seen are largely a result of our own ignorance and self indulgence. Slavery for example has largely been eliminated from human existence. Unfortunately, there are those who enslave others still, but they are almost universally criminal and not State sanctioned. This is a huge step for mankind. That slavery is becoming more and more detested, by people the World over, is a sure sign there is hope for us.

 

Thrasymachus said that most people want to live their lives in peace. This is true enough but he went on to say that the great men want power over others. This always manifests itself in the form of political power. The “great men” that he spoke of were and are the political elite. It is human nature to seek power over others. This is the thesis of Freud’s concept of the id. Irrational, lusting after whatever the id wants. Power being at the top. That human governments have put in place checks and balances to limit and minimize this aspect of our nature is another sign that we are able to learn. That the majority of us want to live in peace is another source of hope.

 

The founding of the United States and the subsequent writing of our Constitution was a seminal event in human history. It was an evolutionary step in limiting the power of the political elite. Rome had limited the elite through the use of the Consular system, which worked well for them for hundreds of years, but eventually failed. Ancient Greece used the Ostracism to limit the power of the elite to some avail, but in the writing of a constitution the power of government was enumerated in a written document, open for all to see, but most importantly… enforceable. The true innovation in the American Constitution was stating overtly, that the power of government comes from the people, not that the people’s liberty comes from the government.

 

Of course the elite have always sought to free themselves of whatever shackles that are placed on them. This is why there have been so many failures of governmental systems. This is as inevitable as the sun rising in the east. The attempts of the elite to throw off any limitations on their power are the reason humanity has retreated so often. We can expect this to continue as long as there are people. That we have advanced so far is reason for optimism. Perhaps we will loose our liberty to the elite today but it would be foolish to believe future generations will not again win it back. The nature of complex systems are that they have long tailed events. Unlikely happenings, that change the system profoundly, and sometimes in kind.

 

Capitalism has proven itself to be the most efficient means to advance mankind’s humanity to man, as well as generate prosperity, whenever and wherever it is used. This knowledge is like a genie escaping from a bottle, it cannot be put back in. Limited government through constitutionalism has proven itself to be the best way to insure that the elite don’t misuse the power invested in them. Western Philosophy, while often nonsensical, has brought us the Renaissance, the Reformation, the Enlightenment and constitutionalism as well. Eventually teaching the basic truth that all men are created equal. The future of mankind is bright. Our children, or maybe great great grand children, will inherit the stars. When that happens humanity will have suffered, loved and matured. Isn’t that the way all things grow? To start as an infant, grow to be self indulgent adolescents and eventually to mature into productive adults. Hsun Ching said the congenital nature of man is evil and that the good in us is a learned trait. I expect humanity is no different… we are learning to be good, and good we will eventually be.

 

 

Sincerely,

 

John Pepin

Things that Work and Things that Don’t Work

Thursday, September 26th, 2013

Dear Friends,

 

It seems to me, no matter how much someone wants a thing to be true, if it is not, it is not, and never will be. The desire of a person bears not a whit on reality. We might want to fly without the use of wings, and many have died trying, but the simple truth is, we need the use of machinery to fly. Moreover, no matter how many times a thing that will not work is tried, it will not work. The average man and woman understands this very basic concept, because we are subject to the results of our actions, and we bear the costs of those that do not work, but the elite have no such training in reality. The road is paved for them so they need not stumble. This makes them appear deft but in reality it hobbles them, and profoundly distorts their ability to discern truth from fiction and right from wrong.

 

Take economics. The elite love and worship at the feet of John Menard Keynes. This economist gave the elite not just permission to deficit spend but he made it a duty. The elite in every country on Earth believe in Keynesian economics. Because Keynes gave them an excuse to do what they really want… tax and spend. There is no thought required to open a checkbook and write a check, especially if the money is earned by someone else.

 

The elite don’t have to suffer for their bad decisions, the rest of us do. The elite destroy the economy through high taxes and regulation, and they get richer, while the rest of us get poorer. Notice how under Obama, the supposed champion of the poor and middle class, the world economy is muddling along, but the wealthy’s fortunes are sailing? Is it a coincidence, while the wages of Americans have taken a historic hit under this Keynesian, the stock market is breaking records weekly? The answer is simple, money printing has allowed the elite to escape the negative effects of their own policies. You and I on the other hand are stuck in the mire of the Keynesian swamp.

 

Every time Keynesian economic theory has been used it has resulted in failure of the economy. There is not one example where Keynesian theory has gotten a country out of recession, while every example where this fellow’s theory has been used, has resulted in economic malaise. Some notable examples are, Woodrow Wilson’s magnificent recession, Franklin Roosevelt’s Great Depression, Carter’s stagflation and now Obama’s great recession. Is it coincidental, that the economic times under Keynesians are so unique in their poverty generation, they are named?

 

The elite so want Keynesianism to work they will never stop trying. They cough up excuses like phloem, “we didn’t spend enough,” or “we didn’t spend long enough.” The answer is never that the policy is flawed. The elite do the same thing over and over, always getting the same result, economic stagnation, but they never tire of it. Largely because they don’t suffer the negative effects, we do. They want Keynesian economics to work so badly they cannot imagine it wont… someday. Since they don’t feel the effects of low wages, except in lower employee cost, they have no problem enacting a flawed economic policy, over and over.

 

There is an interview of Frederik Hayek on Youtube in which that great economist laments being right. He wrote the book, The Road to Serfdom. In which he extols the virtue of laissez faire economics and the palliative effect of low taxes and regulation on an economy. While Keynes told the elite to print, tax, regulate and spend. Keynes was, and still is a hero to the elite, while Hayek is a villain. The few times Hayek’s policies have been implemented the results were quick and decisive. Under Coolidge the economy surged and we got the Roaring Twenties. Ronald Reagan did it again with similar results, but Reagan was hobbled by a democratic congress that was intransigent, they so loved Keynesian policies they fought Reagan at every turn. Despite the push back, the fact is, Reagan’s policies pulled the US out from Carter’s stagflation and ushered in the boom of the eighties. Obama’s Keynesian policies have eliminated all the economic gains since then.

 

In the halls of power, the elite sit with their backs to us. They suffer no ill effects of their policies, and to insure that fact, they exempt themselves from their own laws. Like Obama care. Since they never suffer for their own policies they have no incentive to learn. Why would they go about it any differently in the future? Their power is assured by the unbiased media, who dutifully pillory any other point of view, than that of the progressive elite. Listen to what the unbiased media call the Tea Party. For the elite, to do something that has never worked, over and over, is genius, for the rest of us… it is insanity.

 

 

Sincerely,

 

John Pepin