Posts Tagged ‘government corruption’

Are We At A Nexus?

Monday, June 26th, 2017

Dear Friends,

It seems to me, the corruption in every molecule of our governments, simply cannot be denied any longer. Even where there is not corruption there is the taint of corruption, if by nothing else than, proximity. We see the result of corrupt leaders, the upward bound crime rates, drug epidemic, falling real wages, the war on savers, and all manner of economic and societal upheaval… that is corruption oozing down and into the people. Ooze, being heavier than air, will always seek a lower level. All factions, smothering in ooze, are forced to recognize the out of control corruption and are willing to entertain the thought of addressing it, making this time a nexus, a point in time when the dominant paradigm can be shifted.

When Obama was lying about Benghazi, fast and furious, the IRS scandal, etc… the progressives in the media cheered it. Now that there is a member of the Bourgeoisie in the White house, something the new class had thought it would never see again, they are in full panic, that he will wield the power Obama did, and now are willing to address government corruption. Corruption is all well and good when they are the ones wielding it, but once it slips from their hands… they panic, because they know what they did, and would do with it again. So we have even the new class progressives willing to at least curtail government’s ability to exploit it’s extra constitutional authorities… until they get back in power.

The state of Illinois and territory of Puerto Rico are effectively bankrupt. They will not be the last either. Many other states are in dire financial dilemmas due to a myriad of factors. Pensions are the one most mentioned but other more intractable economic issues lurk in the dark. The actual level of unfunded liabilities of the states is unknowable, which amounts to a potential sinkhole, directly under your economic bed. The soon to explode cost of medicare and social security, never mind the perpetually expanding welfare state can only bankrupt even the most well taxed state. The higher the demand of progressives for the hard earned money of producers, to burn at the alter of the Keynesian economic welfare state, the lower the availability of money to everyone, making the ooze that fuels that money burn… offensive.

Small businesses have been on the get the corruption out of government for a long time. Small businesses are the targets of regulations designed to benefit politically favored factions. Usually large corporations but often smaller factions due to their vote getting ability, or some other reason that makes them favored of the political class. Small businesses pay the majority of business taxes, employ the majority of workers and create the majority of innovations, all of which are much more difficult when regulations get in the way, taxes drain capital, and bureaucrats demand the entrepreneur’s valuable time. Any lessening of corruption can only benefit small businesses.

Even large corporations might consider some backing off the rampant corruption. Of course it is large corporations that largely drive much government corruption, by rent seeking and government granted monopolies through regulations, taxation and tariffs, but if they see even their own fortunes slipping, due to the threat of the corruption benefiting another, they will get on board with anti corruption measures. Today all is pretty hunky dory for corporate elites, they break the law, the shareholders are drained of some money, no one goes to jail and the elite can continue to enrich themselves and the government at the same time, at cost to everyone else. If that paradigm were upended, by a loud outcry from the people and swept up in an anti corruption drive, the corporate elite could face punishment. That in and of itself might lead them to go all in to protect themselves.

The only faction who’s interests don’t align with the anti corruption theme is the legal oligarchy. Nothing enriches lawyers more than litigation and nothing creates more need of litigation than corruption. Ooze not only oils the wheels of the legal system it fuels the fire that drives it as well. Every form of corruption benefits attorneys, especially corruption in their own ranks. Corrupt judges create more need for lawyers just as corrupt lawyers drive need for more judges. Every time a judge finds a legal contract is null and void… due to an absurd unwritten clause implied by Santa Clause, every time a judge awards someone who spilled coffee in her lap a million dollars, every time a judge sentences someone to jail for following their conscience they create the need for more lawyers. So… we don’t have the legal system on our side.

When you have so many factions that wield real power in most countries, having aligned interests to limit government corruption, you have a nexus. What is needed is a plan. The Convention of states have a point. Their innovations would, if applied, drive down much of the corruption by limiting the incentive to it. Sadly, like all innovations in government, even constitutions themselves, is that the elite have to hold themselves to it. No group of human beings is capable of such a feat. To expect the elite to is the height of absurdity. I would argue, the convention of states should include a NUMA. Police the elite, force them to follow the Constitution, and the elite will follow the Constitution. Only an outside force, Constitutionally empowered, can limit the power of the all powerful.


John Pepin

Corruption is the Greatest Threat the Human Race Faces

Thursday, October 13th, 2016


Dear Friends,

It seems to me, the greatest threat the human race faces, is corruption in government. That is the wellspring from which all other threats flow. Economic stagnation worry you? That problem is directly caused by government corruption. Terrorism in our streets scare you? That is another issue created by government corruption. Crime, drugs, violence in schools? They all have as their root government corruption. Do you fear your loved one’s might get sick and not have health coverage to provide life saving treatment? Government corruption stands directly in the way of that life saving treatment. In fact, you cannot think of a problem we face as people, that is not because of government corruption. Since government corruption is so destructive of our well being, health and finances, you would think people would vote against those who have shown themselves to be corrupt, sadly, that is not the case.

The case for economic substandard performance as the result of government corruption is pretty obvious. Markets, like environments, function best when competition is free and fair. The less free and fair a market or environment is, the poorer the performance of the inhabitants. In this, government corruption not only warps markets to serve those with political favor, but that very warping creates the conditions where profits come from political machinations, rather than creating products or services people need and want. The more profit moves away from providing value, and toward political favor, the more the corruption feedback loop is strengthened.

How is terrorism fueled by government corruption you might ask? Machiavelli said a corrupt people can never be free, in that where there is violence, average people will give up liberty for security. Of course they are really trading random violence for organized violence. There is no lowering of violence only the marshalling of it for political ends. Violence is a political tool. That is not my theory but Von Clausewitz. He posited that war is the use of violence to achieve a political aim. How is government to create the conditions where people will give up their freedom? By creating violence in society, make everyone feel unsafe in their own homes, create the conditions where going to the mall is fraught with danger, and foment such mind numbing fear that we will happily trade our liberty for slavery. Terrorism is the perfect means. That is why Merkel is importing so many Muslim’s into Europe. She isn’t so stupid she doesn’t know what she is doing. The argument we need more Muslims to prevent terrorist attacks is the same as claiming you need to put a rattlesnake in your bed to prevent snakebite. Terrorism is a means to a political end, both the terrorists know it as do the elite, they just have different political aims.

The scourge of drugs is due entirely to corruption in government. In 1900 all drugs were perfectly legal. You could buy marijuana at the drugstore, opium was available, cocaine was put in soft drinks and laudanum was sold over the counter. Even with the availability of drugs there wasn’t a huge drug problem. That is because people had a stake in society. As Veblen said, people don’t bristle at income inequality, because everyone in American knows he or she could become rich. In other words, people had a stake in society. Corruption in government has taken away that stake in society. Our young people graduate school without hope they ever can get ahead. The ability of the common man to become rich by the sweat of his brow has been eliminated by corrupt government, as is our stake in society. When someone looses hope, the temporary relief from a drug induced haze becomes possible, it seems like the only way to cope.

This year we are looking at electing someone who is obviously corrupt, has used her connections to enrich herself, destroying anyone who stands in her way, lying under oath on multiple occasions and has a public and private position on every question. Her candidacy is a sign of the times. The elite would like to forgo the election process and have set themselves to that task with an epidemic of vote fraud. The number of dead people who will cast ballots cannot be tallied because the elite have so perverted the election process. Illegally cast ballots from non citizens may swing the election, especially in close states and so with so much corruption undermining our democracy, and thereby the very foundation upon government stands, the consent of the people.

People go where our leaders lead us. When the leaders are corrupt, the people will follow their example and become corrupt, when our leaders are virtuous, the people will follow and become virtuous. We can live as virtuously as we want, but in the end, the actions of the elite will always and everywhere be a far more powerful example to our fellows. As I have shown, corruption is the greatest threat we face on planet Earth. Our economic well being, our safety, our children’s future, even our very lives, all are negatively impacted by the epidemic of government corruption sweeping across the globe. This will not be fixed by electing a strongman who will “get them.” The answer is to police the elite. Create an agency within government that has the authority, power and incentive to bring the elite to task. To think the elite will give up their power, privilege and prestige of their own free will, is to believe the Mexican drug cartels will decide they have made enough profit, and turn to charity instead. The vote has been perverted, our economy has been made a slave, there is ever increasing violence on our streets and our children are subjected to a drug culture that is pervasive. It’s past time to put your foot down and demand change…. demand a NUMA!


John Pepin

Quality of Mercy in a Tyranny

Thursday, June 18th, 2015

Dear Friends,

It seems to me, the quality of mercy of our rulers is hard and sharp, but they expect and demand from us a soft and easy mercy, this is the way of a despot and not a human hearted legislator. The adage, “Ignorance is no excuse under the law…” speaks to this truism, in that those of us who don’t write law and have only a very limited access to knowledge of the law, are held to every word and letter, but those who write law, adjudicate law and enforce law, have as a ready excuse ignorance, as a means to escape the punishments of the law. Moreover, the law grows like a Kudzu vine smothering every human endeavor with strings that bind, so that we need permission from our rulers to do anything, yet they have total freedom of action, even to the point of scoffing at our calling for Constitutional limits. This has become so pervasive, even a blind and deaf man could see and hear there is despotism, while the “learned and wise” claim there is ever greater liberty because in our society today, perversions are rife.

I say “rulers” because those who hold elected office are no longer republican in spirit, polity in action or human hearted in mind, they rule us as Dionysus did Syracuse. When a legislator is above the law, they are no longer a representative but a ruler in definition even if they call themselves a representative. Like in the days of Rome after the republic ceased to exist, the Praetorian guard and emperor called Rome a republic but like today, to call the Roman empire or Western civilization a republic is like calling a fish a bird, calling it so does not make the fish able to fly nor does the name change the nature of the object.

Mercy is no longer in the vernacular of government the term they like to use is justice while justice is the last thing they seek. Thrasymachus said it best that the “great men” in society are not just and should not be just, they should only claim to be just as a means of controlling the “little people” who only seek to live their lives in peace. Thrasymachus’ great men are the equivalent of our senators, Presidents and judges, they seek to appear just but in reality are not just. This is because justice requires as a prerequisite, mercy. Justice without mercy is not justice but injustice. In other words, justice is an objective good, not a subjective one, our rulers have made justice a subjective good.

Our rulers are daily caught in one scandal or another, when they are, a careful examination of their every excuse is ignorance of the law, and their ignorance requires from us mercy. President Obama claims ignorance of scandal, ignorance of the law and ignorance of our Constitution almost every day. Since he is ignorant of the law we are supposed, and many of us do, forgive his transgressions in supplying arms to Mexican drug lords and Islamic terrorists. When he claimed he learned about this or that scandal from the papers as the rest of us did, he is claiming ignorance of what is going on in his administration and when he calls for us to relinquish our Constitutional Rights for political expediency he is claiming ignorance of our founding ethos. His calls to ignorance are met by our mercy.

If you or I were caught breaking whatever arcane regulation however, no matter how esoteric or absurd, we are held to that regulation by the full weight of the government, no mercy and no quarter is given us. Encroach a newly defined wetland and face severe punishment, ignorance is no excuse for us, but it is a perfectly valid excuse for them. When Tim Giethner and Charlie Rangle were caught chiseling on their taxes they claimed ignorance, you or I would have faced penalization for far less. Hillary Clinton claimed ignorance about the Benghazi terrorist attack on the anniversary of 911, having a private e server for her government emails, FBI records in her possession among a host of other crimes you or I would face jail time for, but was given the mercy she denies you and I. Bernie Sanders claimed ignorance when he became embroiled in the House Banking scandal weeks after his election into that office… the list is endless of examples where the elite claimed ignorance of the law and were given the mercy they deny us.

Growing law and our increasing ignorance of it diminishes our liberty wearing it away like water erodes salt. Every day more regulations are written outside the Constitutionally prescribed means in the dark of the bureaucracy and laws are passed without our rulers even reading them. Darkness is rapidly descending on our government and conceals it’s workings more every day. Today it is impossible for anyone to know all the laws, regulations and ordinances we are subject to but we are held to them by an iron fist, and everyone knows and iron fist lacks mercy, it is naked power.

When a people are held to the law, while the lawgivers are not, it is absurd to claim the people live in liberty. Call it what you will but naming a fish a bird does not make it so, their natures are vastly different. Moreover, to call despotism liberty is merely a Machiavellian scheme to create a system of injustice by deceit. The fact is further proven by the fact our rulers demand our mercy for their ignorance without reciprocal mercy given us for ours, despite the fact they pass the law and we are increasingly kept in the dark of it. When a people are subject to laws they not allowed of know, while those that make the laws are not, in a system where mercy is only given the the elite and the people are denied mercy, when justice is for appearances not universal… the darkness of despotism has covered the land, regardless what it is called. It can be said that the quality of mercy is hard and sharp…


John Pepin

Lawless Government

Sunday, May 31st, 2015

Dear Friends,

It seems to me that the US government has become utterly lawless. We the people are supposed to follow all rightly constituted laws, passed by the legislative branch and unless overridden by the congress, signed by our President. Our government is supposed to follow, to the letter, our Constitution, the contract between the governed and the governors, strictly enumerating the power we give up to government, to ensure our property is secure, establish standards, and control criminal behavior as well as protecting us from foreign powers. The US government increasingly seeks to control every aspect of human behavior, while at the same time totally ignoring, not only the intent of our Constitution and it’s limits on government, but are now actively urinating on the text. Examples abound, from their abdication of both tenets of the First Amendment, the total destruction of the second amendment, government living by rapine, we are no longer safe in our personal papers, government can seize any of our property at any time, to the crushing of State’s Rights in every way possible. To make the system work, increasing amounts of violence must be used against us, even as we behold our government ignoring the basic rules they are supposed to follow. We stand naked before government while they hide behind a wall of guns, woven together with red tape, aimed at us.

Fail to follow any arcane regulation, law or ordinance and the full weight of the US government will fall on you. Disagree? Try withholding taxes because they go to something you are morally against, like funding abortions, and see if armed men don’t come to your door and arrest you. We are held to the highest standard possible, to the point of being monitored by camera while driving down the street, our emails are scanned and saved on some government computer in Utah, our homes are peered into by the government with infrared and other sensors, our computers can be seized at any time, banks record our cash transactions and send them to the government, our credit card transactions are available to government for any purpose, etc… Every aspect of our lives is open to our government, but our government hides even the most mundane things from us.

The recent internet regulation was hidden, and even now that we are supposed to follow it, most of it’s intricacies are covered in arcane wording and red tape. Despite being called Net Neutrality, it does the exact opposite it was billed as. It creates a market web which players pay to play and the old internet which is free, so I ask you, which will get the funding? The one where companies can make a profit, (and is regulated as to their content and political correctness)… or the one where financial loss is guaranteed but is open to anyone to say anything? I submit to you, Net neutrality was and is designed to wither the open internet on the vine, creating a system where government can increasingly control the flow of information.

The Amendments are ignored and given less and less lip service every day that passes. If you are stopped by a police officer, make the mistake of talking to him or her, and you are carrying cash, they can simply take that cash, your life savings perhaps, and you are out of luck. How is that different from a highwayman? Moreover, it is a direct violation of the Fourth Amendment, but isn’t the only violation of the Fourth Amendment by far. Your church may be forced to provide abortions, pay for blasphemous art, limit what they teach or marry gay couples. You are limited in your speech in a myriad of ways, all the government has to do is label whatever you say as “hate speech,” or you as an “extremist” and you are now a criminal subject to prosecution… which are blatant violations of the First Amendment.

The Second Amendment has been eviscerated. Today States pass whatever law restricting our Right to keep and bare arms they want without a peep from the Judicial branch. The right of the People to keep and bear arms shall not be infringed… seems simple enough to understand, but the learned members of the new class have a hard time understanding what infringed means. It is no coincidence that those places where guns are outlawed, have the highest violent crime rates, the highest murder rates, and the most government tyranny as well. Look at Chicago’s murder rate, violent crime rate, and secret prison for example.

The interstate commerce clause has been so perverted government can regulate every and any aspect of your life. That perversion is based on Wickard v Filburn. In that case, (which still stands), the government can force you to plow under crops you are growing for your own consumption! Because you won’t buy that food on the open market and therefore effects the prices of food across state lines. In other words, the government has the power, as yet unused, to regulate you and your family to starve to death! Now, I can hear some innocent Pollyannas saying, “They would never do that!” But only a few decades ago, it was unthinkable that a human being could be executed by dismemberment, simply because he or she has been recategorized as a fetus.

The US Constitution makes no provision whatsoever to allow for the bureaucracy. Yet the bureaucracy has become the largest part of government today, and is totally unconstitutional. It too is based on Wickard v Filburn. The bureaucracy bypasses the Constitutional legislative process, creating unconstitutional regulations that stymie economic growth, erode what Constitutional liberties remain and most perniciously, move us from a limited representative republic to an administered despotism.

Our government has been disconnected from the limits the framers built into our Constitution. The new class elite claim the Constitution is a “living breathing document,” and thereby unshackle themselves from the limits put on them by it’s original intent. The Tenth Amendment says – “The powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people.” In other words, if the Constitution doesn’t say government can do a thing, government is forbidden from doing, and those things the Constitution says government cannot do, it cannot do. Sadly, government does whatever it wants today, there are no limits, they have broken the contract over and over.

Today, those powers that are not bestowed on government, are regularly done, and those powers the Bill of Rights strictly forbids, are commonplace. We stand naked before an all powerful government while they hide behind a wall of guns aimed out at us. We not only have to worry about a robber taking our hard earned money, the government itself has become the thief, government undermines economic standards whenever a politically favored group wants, it encourages an invasion of people who seek to change our way of life, and the list goes on. Government hides everything they do, as they tell us, if we have nothing to hide then we should stand naked before it. Can there be disagreement we don’t live under a poorly concealed despotism? Isn’t it time to reign them back in?


John Pepin

Net Neutrality and the Corruption of Regulation

Thursday, March 5th, 2015

Dear Friends,

It seems to me, if “net neutrality” was a standard, it would only require a page at most to explain it, it would be open to the public and would actually standardize access for new businesses, since it is over three hundred pages, is not available to the public, even for comment, and passed by the bureaucracy in darkness, shows it is regulation that should have been forcefully condemned by everyone. The unbiased media claim the regulation will force internet providers, like the politically disfavored firm Comcast, to allow all data to go through their networks without bias. Of course, that description only took one sentence. The regulation took over three hundred pages which can only make us ponder what else is in it? Furthermore, the regulation was and is not open to the public for review, so one must wonder, how does the unbiased media know anything at all about it? The government claims the regulation will help protect free speech… by regulating it. Because nothing is as free as when you have to get permission from government to do it. The only entity it seems that was allowed, not only to see the regulation, but change it to suit their needs… was Google. All of which illustrates the point I have made many times in my articles, that regulation is destructive of the market while standardization is helpful.

If the regulation was “neutral,” then why was the largest internet company on the planet, allowed to change it to suit their wants and needs? Proving it is not neutral but biased. Regulation, as I have said before, is by design a means for politically favored companies to avoid competition (crony capitalism), to give politically favored groups a leg up on an otherwise free interaction (state discrimination), protect politicians ambitions (enshrine political power) or to establish a politically favored company’s monopoly. Regulation never goes away it only gets more convoluted and destructive of market interactions as time goes on. Those who pass regulation don’t ever want people to understand what it is really for, so they always couch it in good sounding terms like, neutrality, when nothing could be further from the truth. But then again, truth has nothing to do with politics… does it?

A standard is simple to understand. All standards are this way, a gallon is a fixed amount, a mile is a fixed distance, HDTV is a fixed way of encoding video and sound, etc… A standard applies equally to everyone, and as such, is a benefit to the market. Confucius called it, rectifying terms. Imagine if a gallon was a regulation instead of a standard… How would that work, well a gallon of oil would be different from a gallon of milk which would vary depending on who the buyer was or the seller was. The volume of a gallon of water would vary depending on it’s purity content. The regulation of a gallon would run into the hundreds or thousands of pages of regulation… to protect the interests of politically favored people, groups and companies. Imagine how hard it would be to do business in liquids if that was the case? Every firm would need armies of accountants to comply with the regulation. That net neutrality took over three hundred pages is proof it is a regulation not a standard.

How does the media know… that which we are not allowed to know? Obama has prosecuted and jailed more whistle blowers than every other administration combined. His iron fisted hold on information is legendary. Since that is the case, how is it the unbiased media have information that is not in the public domain? …and are not being hounded for it, like Cheryl Atkinson? The only answer is, they are reporting press briefings on the regulation, and not on the actual content. They are merely parroting the propaganda that those who seek to regulate the internet want them to parrot. If the media took their station as the fourth estate seriously, they would verify the party line independently, that they didn’t, shows they are the willing dupes, or cronies, of nefarious government officials.

In what universe has regulation ever made anything more free? Regulation creates barriers to entry, it increases the cost of doing business, it requires government permission to do business, it crushes firms that are not politically favored and it drives up the cost of products and services. Regulation is the opposite of free, it is designed to regulate that which otherwise would be free! When government decides what you can and cannot say, is that more free or less free? Is an open forum where anyone can say anything they want, more or less free, than one where government permission is required first? When government decides what data is given priority, do you honestly think politically unfavored speech is going to be given equal access? Like the tax free status of Tea party groups under the IRS was protected by regulation?

Lastly, what grows in the dark of night… mold, fungus, bacteria and corruption, that is all. That Net Neutrality was written, passed and now is being implemented, in the dark of night, is proof enough it is corrupt, else the regulations would have been published for anyone to see and comment on. The only one to get a say is the giant internet company Google, and does anyone more than a year old, believe Google would change regulation to benefit it’s customers or competitors? Of course not! The changes Google put in the three hundred page regulation, was to benefit Google, at the cost to the public and it’s competition. Corruption piled upon corruption, and the unbiased media sang the party song, like the good little propagandists they are.

Perhaps standardization of access might be helpful but the debate would have to be open with everyone having a say before we knew. The final standard would have to be simple to understand and public knowledge. To now… the internet has been an open forum for anyone to access and get their message out. In that way the internet has been the most democratizing instrument ever devised by mankind. Now that the door has been opened to regulation, it will be used to protect those in political power, politically favored groups, people and businesses, while smothering the availability of information government doesn’t want out. Very soon there will be calls to license bloggers and internet sites, (if it isn’t already in the regulation), for the benefit of “openness.” Because nothing is more free than when government regulates it. Now that governments, the world over, are regulating the internet… the goose that laid the golden egg is being slaughtered, not for the gold inside, but to keep it from laying any more of those damnable golden eggs.


John Pepin

Confusion About the Market System…

Monday, January 26th, 2015

Dear Friends,

It seems to me, very few people the world over actually understand what the market system really is, most have fallen into the trap set for them by new class Marxists, that the market is evil and government is good. As long as the new class elite can maintain the fiction they spew we are on a path to predestined serfdom. The global elite quake at the thought that the hoi polloi discovering the ruse. If enough of us did understand what real capitalism is, we wouldn’t stand for their bigger government solutions that never work, but only make the problems worse. That is why we are constantly bombarded by spurious arguments like, the gap between the rich and poor, the market needs regulation, capitalism only benefits the rich, the wealthy got that way by stealing, etc… always made by the uber rich to blind us to the truth that we haven’t lived under a market system anywhere on the planet for generations. Ignorance may be bliss, but it is the best way to keep us in a state where our slavery is all but guaranteed.

What the world struggles under today is called “welfare state capitalism.” It is to the market system as bone cancer is to astrology. Welfare state capitalism is a system where the government redistributes the profits of free market interactions, from those who worked and took risks for them, to those who didn’t. In doing so, the government gains terrific power to destroy businesses that are not politically favored, enrich those who are, hold people in generational poverty, wipe out class mobility, destroy the family unit and create a permanent upper class… all in the name of fairness.

In a real market system, people get rich by taking risks, providing service and value to their customers. Under a welfare state however people get rich by having political favor. When those with political favor fail, they are bailed out by the government, (you and I), but in a market system, failure is paid for by he or she who fails. Moreover, failure in a market system leads to new ideas and greater efficiency, while in the welfare state, failure leads to more of the same, since there are no consequences to the elite, only the people. That is why too big to fail banks were bailed out with enough money to pay off three quarters of all the home mortgages in the US, and QE3 was sufficient to create eighty five thousand millionaires a month! Meanwhile, you and I were stuck with falling house values, wages and financial repression. All because of the bubble created by government policies. Not a real market by any measure!

In a functional market system deflation is the norm. That is one of the ways you can be certain that we have not lived under a market system for generations. The cost of those things we need and desire gets cheaper and cheaper. This is because the market system drives down the cost of everything by increasing productivity. That increase in productivity also has the effect of raising real wages. A carpenter with a nail gun and precut studs can frame a wall in seconds, where a carpenter, even a much better trained one, using a hand saw, hammer, nails and rough cuts, takes an hour. That increase in productivity lowers the cost of the final product even as it raises the wage of the carpenter. Raising his or her standard of living and making the work easier and less taxing on the body.

In welfare state capitalism however deflation cannot be allowed. Government runs a perpetual deficit to maintain the illusion of a functional market and prosperity through bubbles, and so, if the elite were to allow the market to do it’s normal operation and deflate the cost of everything, that huge debt would quickly become unserviceable. Inflation is needed to evaporate the debt through currency devaluation. Without inflation lowering your wages and driving up the cost of everything, the government would collapse, as many have in the past, and the elite would be out of their cushy high paying jobs. A disaster that the elite cannot allow to happen. So they inflate bubbles, watch them pop, destroying the meager wealth hard working people have saved up by the sweat of their brow… and the government inflates the next bubble, to maintain the illusion of economic growth.

Welfare state capitalism is a system where the elite decide who gets rich and who doesn’t. It undermines the market’s innate class mobility. The old saw, “shirts sleeves to shirtsleeves in three generations,” is rendered inert by the state’s interference, allowing the half witted grandchildren of the elite to remain wealthy, despite themselves. This is done by the state requiring everyone to get permission from the state for every economic activity. Those who are the children and grandchildren of the elite not only get permission, but the largess to engage in market activities, (as in Solyndra), while the children of the plebeians have to fight, pay bribes and struggle to get even the smallest of permissions. Crony capitalism is created this way.

Harry Truman said, “Anyone who gets rich in politics is a God damned crook!” Since the all powerful welfare state decides who will get what, the benefits will naturally flow to politicians, their cronies and family. Others who would compete are frozen out. Ways to measure this… are the number of small businesses in an economy, how many are started in a year and the rate of expansion of small businesses to medium and large. Moreover, people will spend absurd amounts of money to gain political office… so they are the ones to decide who gets what, insuring their business isn’t destroyed, and giving them the power to destroy their competitors. In a country where welfare state capitalism is at it’s apex, small businesses cannot compete with large ones because of political favor, and therefore, there will be few small businesses, and most of them will be engaging in illegal activities, ie, doing business without the proper licenses, paying employees under the table, selling non pasteurized milk, exceeding the weight limit of a road, idling a truck so a worker can get out of the cold, hauling without the proper permits, cutting hair without a license, etc…

The new class elite have to keep us in the dark about the market system. To that end we are inculcated in a doctrine that has no basis in reality… that crony capitalism is the market system, that we need the elite to regulate the economy to protect us from it, we are taught to hate those trying to get rich by providing value to us, and love those who get rich by political action. Our children are programmed in school to have a visceral reaction to the term “capitalism,” as a bad thing, and socialism is lionized as the solution to all the world’s problems. The bloody history of socialism is glossed over with absurdities like, “Marxism has never really been tried.” If most of us understood the fiction we have been inculcated with, is just that, fiction, we would demand real capitalism, and that cannot be allowed. The elite have too much at stake… their power, wealth and prestige.


John Pepin

Anti Corruption Laws

Thursday, October 9th, 2014

Dear Friends,


It seems to me, anti corruption laws are only as good as their enforcement, and if the same corrupt politicians enforce those anti corruption laws on themselves, those laws are as good as worthless. If self policing worked then why do we have police? Why not just have everyone pledge to follow the law and be done with it? Wouldn’t that be far less expensive than having a standing police force? Especially now that the police have become so militarized. The cost saving would be huge! But of course that is absurd, people cannot self police, and that applies more to the elite than to the average citizen.

The world is awash in corrupt governments. Story after story is written in the unbiased press calling attention to it. Hectares of forests have been cleared to produce the paper necessary to print the articles. All to no avail. Before Ukraine collapsed into chaos every news organization on the planet reported the endemic corruption in Ukraine’s government. Africa has suffered more than any other continent under government corruption with South America a close second. The US is suffering with the most corrupt, by every measure, government we have ever had, bar none, and Europe is close behind. Corruption, it would seem, is a quality of all governments.

Corruption in government is the single most effective way to determine if a nation’s economy will thrive or fail. The most corrupt governments universally have the lowest standards of living, for the people, but the highest for the elite. This is one of the few universal truths there are. Africa was a bread basket until the colonial powers were overthrown today Africa is a basket case. The the governments that rose up after the colonial era were riddled with corruption. The elite became richer than rich while the people became poorer than poorer. The standard of living in the US has gone up on average every half decade except for the 1930s and today. The single closest attributes of the FDR administration and the Obama administration is the endemic despotic corruption.

There is not one historical example of a corrupt nation that had a rising standard of living. The economies of South America are the perfect example of this in action. In South America, and Africa for that matter, all capitalism is crony capitalism. I have a friend that lives in Guatemala. I mentioned to him one time, we could buy land there, and grow valuable timber using modern silvicultural practices. He laughed hysterically. He told me only certain people can own land and make a profit there. I was aghast at the implication. Any economist worth his salt will tell you crony capitalism is not capitalism at all, but a form of redistribution, from the people to the wealthy. In the case of crony capitalism, all the market mechanisms that grow the pie and provide an invisible hand, are turned upside down. Crony capitalism, that can only survive in a corrupt country, is a zero sum game. One person’s gain is another’s loss.

All the laws the elite pass to eliminate corruption are simply used to crush political dissent. Law is supposed to protect the property and lives of the citizens, but when government is corrupt, law has a different purpose. Law is used as a bludgeon to protect the prerogatives of the elite in power. Obama has shown this in living color. He uses the IRS to punish his political foes, he wiretaps reporters, he rules arbitrarily by executive fiat, he bestows billions of dollars of crony welfare to his allies, and the list goes on and on… As Obama has corrupted the US government we have seen a steady decline in the wages of the people while the lot of the politically favored elite has skyrocketed.

Where government is corrupt violence and crime are rampant. Confucius recognized this thousands of years ago and taught about this propensity of the elite to his disciples. He rightly pointed out that people follow their leaders, if the leaders are corrupt then the people will follow and be corrupt. If the leaders are virtuous the people will follow and be virtuous. The concept is simple, but in practice the leaders will always be as corrupt as they can get away with, dragging the whole of the nation into corruption. The Duke of Lu asked Confucius how he could get the people to stop lusting after each other’s wives, refrain from theft, and so forth. Confucius told the Duke of Lu he could stop doing those things himself and lead by example. Confucius and his disciples had to flee Lu state shortly after.

It is human nature to test limits, seek comfort and avoid pain. Bastiat said, “Now, labor being in itself a pain, and man being naturally inclined to avoid pain, it follows, and history proves it, that wherever plunder is less burdensome than labor, it prevails; and neither religion nor morality can, in this case, prevent it from prevailing.” When and where the elite having the ability to plunder the property of the people, without consequence, they will certainly resort to plunder, especially as their plunder destroys the economy, lowering the property available for plunder. The problem of corruption is epidemic in the world and we people have no immediate power to stop it. Even the vote is undermined by fraud and abuse.

But is all lost then? No, because there is a way to limit the ability of the elite to abuse their power. Constitutions were designed for just this purpose. A constitution is to limit the power of government not expand it as the new class has dishonestly argued. That the elite have so perverted the nature and reason for Constitutions is a testament to the propensity of the elite to corruption. I would say, lets use what has proven to work in the past on the people, and apply it to government. That is police the government. Not with a police force the elite have dominion over, that leads to Eric Holder’s using government to punish political foes, not at all, make an independent police force that has the power to act, buttressed by a Constitutional amendment granting such power. Police that can actually force the elite to follow our Constitutions and their own laws. I call it a Fourth Branch and have titled it a NUMA after Numa Pompilius the lawgiver of Rome. Only when government is effectively policed, can we as a human race escape the bonds of government corruption and start to live as we were supposed to… in liberty and prosperity. Until then we face an ever lowering standard of living until we are nothing but slaves.



John Pepin

Russian NUMA

Monday, December 12th, 2011

Dear Friends,

It seems to me, if Russia enacted a NUMA, it would quickly become the most prosperous country on the planet. The Russian people have been honed in the crucible of tyranny and slaughter, they have an ability to endure that is almost unique among peoples. Giving such a caliber people, true freedom, and open markets to do business and you have a recipe for unbridled growth and improvement in the lot of Mankind.

Of course this all is predicated on the Russian Elite shackling themselves with a NUMA. This is as hard for them to do, as it was for the king, to sign the Magna Charta. The powerful never willingly cede power; especially to the people. A sovereign will cede some power to an aristocracy but few tyrants trust the people. The unwashed masses are to be controlled never really allowed to control.

If the Elite can be coerced into instituting a NUMA, that is effective but not a source of tyranny itself, then the Russian government, which is notorious for it’s corruption, will quickly become a public service. Bribes would be rapidly prosecuted and examples would be made. The more powerful the politician the better the example. The Elite are very smart, that is why they are the Elite, they would catch on quickly. Legalized insider trading for politicians, the need for special prosecutors and voter fraud would be eliminated, because… All laws that pertain to the people shall also pertain to all members of government and all citizens and non citizens, equally. With no exceptions.

Lets look at how the removal of such a burden, to the Russian people, and to the Russian economy, would effect them, individually.

The people’s minds would be at rest, for the first time ever, that their government was doing it’s job. The people would be able to exert their will through the election process, without today’s Elite undermining the process to replace them, with tomorrows Elite, that more closely follow the will of the people.

People would feel freer to start a business. No bribes, no protection racket, no onerous taxes (because the Elite would be subjected to the highest rate they subject any faction of society to), the entrepreneur would be able to work away, on what ever his or her project was, without government interference, and people could just live their lives, within a system that was sufficiently prosperous that anyone willing to work… would live a good life.

The economy in such a system would have the anchor of corrupt government removed. This alone would propel it for some time. But, add to that, the other overt effects of a NUMA. One is that the elected would be subject to the most onerous laws and regulations they allow or enact upon any faction of society. Random drug tests if they require that of anyone, the highest tax rate they require anyone to pay, the least loopholes they allow any faction to have, etc… They could not escape their own onerous laws no matter how hard they try. The NUMA would always bite at any attempt to carve an exception for the Elite.

This alone would be like putting miracle grow and water on a plant that has been growing in poor soil; for any economy. The growth rate would dramatically pick up. The productivity would be so much better it would be hard to imagine it is the same plant (economy). But, take away the fertilizer and extra water and the plant will become just as sickly as it was before, perhaps worse, because it has to re-inure itself to perpetual want. If you think about it, it is hard to argue that, if a plant has sufficient demand, for water and nutrients, supply will be found, and it will have sufficient water and nutrients, but it is not hard to argue that, if a plant is supplied sufficient water and nutrients then it will have sufficient water and nutrients.

Laws that are normally scoff laws would be rescinded do to their annoying the Elite. This would lead society to be more virtuous, because, if scoff laws are removed and people don’t daily break some meaningless law, then they will become more respectful of law. People follow their leaders. If their leaders are virtuous, then the people will follow them and be virtuous, if leaders are corrupt, then the people will follow them and be corrupt.

Put in the context of complexity theory, a NUMA would be a facilitator of interdependence and adaptation, that would, once it’s effects reached a phase transition, set off a cascade of events, leading to a macro outcome that was different from the individual input, or in other words, an emergent phenomenon in society.

Of course these effects could be applied to any country that enacted a NUMA. The effects on growth and personal freedom would ramp up the rate of GDP growth of any economy. People know what is best for themselves, a NUMA would get government off their backs and let them do what is best. The invisible hand could work, and everyone would benefit, a classic win win,

But, alas, for the egos of the Elite…