Posts Tagged ‘market system’

When Life is Fantasy, Comeuppance is a Reality.

Monday, October 24th, 2016

Dear Friends,

It seems to me, we have, and are, building a world where no one need come in contact with reality at all. Fantasy is an imagined idea. Virtually all of the highest paid professions today are based on fantasy. Lawyers, bureaucrats, university professors, even accountants and business are based on fantasy. The reason I say they are based in fantasy is because they are all founded by ideas, and, (although I detest the term), in A Priori fashion. Therefore, those professions are fantasy, the imagined ideas of those who invented them. Moreover, we are ever further removed from that which keeps us alive. By removed from reality I mean, slaughtering an animal if you want mutton, digging in the ground if you want peas, weaving cloth for your clothes from the thread you wove from flax, starting a fire to stay warm, building a shelter and all the other things that must happen for a human being to live… the reality of life. The farther away from reality one lives the more one lives and works in a fantasy. So, we work in fantasy, live in fantasy, and those who most live in fantasy, are the ones who rule the world.

The law could be anything and it would be called just, indeed it has been radically different in other places and times, and is always called the height of justice by those who practice it, there and then. Meaning, law is only based on ideas, those ideas could be anything, they are therefore fantasies of what the founders believed justice. As in law the ways of structuring a government are as numerous as stars in the sky, all of them ideas of what right government were by their founders, but very few have ever produced the good fruit… of liberty, prosperity and equanimity. Since every form of government is merely an idea, or was one at sometime, they are all fantasies, the imagined ideas of the founders. While they are all fantasies… only a select few are good. The same argument goes for journalism, academics, culture, etc… All these professionals work in a fantasy.

Living in a fantasy is as easy as going to the supermarket to shop, riding down to the Cape on a day trip, turning on a light, reading a book, sleeping in a bed, flying to Paris in spring, turning on the heat on a cold winter night, flushing the toilet, turning on the bathroom fan, watching television, playing golf, riding around the course in a cart, whiling away time on a computer, etc… All of which remove us from the reality of what it takes to physically meet those needs ourselves. The less we understand about what it takes to keep us alive, reality, and the more we mindlessly rely on modernity to meet them, the more we live in fantasy. At the supermarket you can get fruit from across the planet, out of season or grown organically so as to be more in touch with the food. Flushing a toilet is far preferable to the alternative, as is the use of toilet paper, a bidet removes the user even further from the reality of what he or she is doing, enhancing the fantasy.

Living in a fantasy, distant from reality, allows foolish ideas to get merit where, when looked at in the cold light of reality are absurd, a reality most of our leaders are as far from reality as the stars are from us. It isn’t their fault, if everything you live in, work at and spend free time in becomes who you are. Ignorance of reality allows someone to believe things possible that are not, it fosters a holier than thou attitude and living in a fantasy allows one to live in a way impossible, if not for the fantasy world they live in. Sadly, those who are the least in touch with reality are the ones who rule. Bureaucrats, who’s only touch with reality, is when their daughter scrapes her knee and the nanny cleans it up, and reading about it in her report, they are the ones who decide exactly how you and I should do… everything. Lawyers, judges, professors, teachers, journalists, they all work and live in total fantasy. Their lives have no more relation to reality than pulp fiction. Add to that, every day, fewer and fewer people are in touch with reality, or grounded if you will.

Before mathematicians had quantified the physical world people believed in magic. Since they had no idea of what makes a thing fall, that electricity exists, etc… they believed in mystical forces that could be exploited to make the world as they wished it to be. They mixed potions, chanted to various deities and carried all manner of talismans upon them, but to no avail, why, because they were living in a fantasy. Their disconnection from reality created for them, a fantasy, it allowed them to believe the absurd, belief in magic. Their fantasy was based on their ignorance leading to superstition, magic, today the fantasy we live in is based on our ignorance, leading to superstition, progressivism. Only farmers, hunters, people who build things and engineer things, people who have more than a passing knowledge of what it takes to keep a human being alive, are actually grounded in reality. Like a physicist understands why a talisman will not work, a grounded person knows why a policy will not as well. The more our world moves away from reality, I fear the ever greater outcome, because we have become so mesmerized by the fantasy world we live in… is that we as a people will step off a cliff into cultural, societal and economic oblivion.

Sincerely,

John Pepin

Our Sick Economy

Thursday, September 15th, 2016

 

Dear Friends,

It seems to me, when someone is coming down with an illness, initially the signs are slight and not too bad, later when the symptoms become worse they can be alleviated by aspirin and other medications, the worse the symptoms the stronger the medications needed to mitigate them, but when the illness hits with full force it can no longer be mitigated by medication and the body dies. Today the world economy is sick, the initial signs were ignored, so it has got to the point the strongest medication available is being used. Up to now, the symptoms have been mitigated by Keynesian principles, stupendous amounts of money printing, government debt spending, monetizing government debt, negative interest rates and central banks are even buying corporate bonds and stocks! From our own experience we can tell how bad a disease is, by the drugs used to treat it and when the morphine drip of monetizing the debt is used, pretty much all hope is lost. The chemotherapy of QE, Twist, negative interest rates etc… have lost their effectiveness and the illness has spread.

Using the right drugs to treat any disease is critical. Penicillin is wholly ineffective against malaria and quinine has no effect on strep throat. The Keynesian prescription is always spending, add to that the monetarist prescription of money printing, and you have the “universal” cure for every economic ailment. Of course not all ailments are the same. Just as strep throat is different than malaria the reasons economies falter are different. Moreover, if a single drug is used too much it looses it’s effectiveness and becomes inert, like the Keynesian prescription. Keynesian economics is the fall back position of every government since John Maynard Keynes described it. Like penicillin however, it has been used too much and for illnesses that it is unfit to cure, and so the overuse of Keynesian economics deficit spending has made our economies immune to the effects.

Some drugs only mask the symptoms of disease. Pain killers are an example of this type of drug. They mask the pain but have no effect on what is causing it. In fact, new studies have come out that show opiates actually enhance a person’s feeling of pain, if they are used too much. Monetary stimulus is this type of medication for an economy. It masks the underlying problems. Money printing makes the stock market and bond market appear to sail. That rise in stock valuation however only hides the problems. People understand the disconnect, like when an injured person looks down at his broken arm, but feels no pain because he has been given morphine. He sees the arm is broken, he knows it should hurt but the lack of pain confuses him. If another person isn’t there to render first aid, the victim will likely damage himself far more, from using it due to his lack of pain. Masking a problem only makes it worse especially if what caused the problem in the first place is not addressed.

To argue someone is doing well, even as they are on Keynesian life support and the morphine drip of money printing is being used, is to argue up is down. The media that calls itself unbiased knows if the true state of our economy were widely known, the faction they prefer would loose in a landslide, since they cannot allow that, they are pulling out all the stops to argue up is down. The media cherry pick data, and polish it before they deliver it to us, protecting their favored faction. The more they get caught manipulating data the more they do it. Like a witch doctor, his dancing and waiving a chicken leg over someone with cancer might be entertaining and have a placebo effect, in the end it will have no effect on the outcome, only possibly the duration.

Regulation is like poison, in small enough amounts it has no great harm and can even be beneficial in some cases, too much and it becomes toxic and perhaps even deadly. Our governments have been introducing regulatory poison into our economy since time immemorial. Since the effect of poison is to create illness where there otherwise would be none, the elite need to mask the symptoms of the illness they have created by regulation, crony capitalism, and corruption, even as they inject ever larger doses and more deadly poisons into our economy. The way to save a person who has been poisoned is first to stop poisoning her and then get the poison out her system, by chelation or by introducing an antivenin.

What we have is a sick economy… it has been sick for many decades and the illness has been metastasized by Obama’s policies. We have witch doctors, the media that calls itself unbiased dancing and waiving a dismembered chicken leg giving false hope, there are “doctors” who have only read one book and their only tool is a butter knife, performing open heart surgery, as we are being plied with heroine to mitigate the pain, and the patient dies a slow and lingering death. Our economy has been poisoned by government actions and so cannot recover until the right medications are used in the right amounts. Just as heroine will not heal a broken leg and can lead to the worsening of it by continuing to use it, masking our economic problems with money printing only makes them worse, because there is no incentive to stop poisoning our economy. We have progressed beyond the initial stages where lethargy, slight pain and muscle aches… through the open sores, crushing pain and high fever to being hospitalized in intensive care. Isn’t it time to stop poisoning our economy and use different medications?

Sincerely,

John Pepin

Political Evolution

Monday, September 12th, 2016

Dear Friends,

It seems to me, we are experiencing the evolution of our republics, in their democratic elements as well as the aristocratic and monarchic. No evolution comes without demand, as movement requires as a precedent, force. This evolution is driven by the elite who have for a very long time now, only served their own narrow self interests rather than the interests of society, civilization and humanity. Good government serves the interests of all equally; bad government serves those who govern. Bad government generates the demand for change required for a government to evolve or collapse. When those who serve government serve themselves first and best they create incentive for change. In the complex systems, that exists in every manifestation of humanity, what change could emerge is unknowable. One thing that is certain, that change will be painful, especially for those unprepared.

In the US the two party system has become two teams in the same league. They both stand for exactly the same thing, totalitarian government, for the benefit of the people to be sure, the only contention is who can run that totalitarian government best? Now with the presidential race between a self serving, sociopathic, incorrigible liar, who is unable to follow any rules, law or regulations whatsoever and a self serving, egoistic, self described crony, who has only become religious last week, is learning about our Constitution as we speak and knows only one thing… his presidency will be huge. Obama has implemented the Cloward and Pivon plan to collapse the US and, it would appear, his Presidency has been to that end all along.

Europe with their parliamentary system has dozens of political parties but has effectively outlawed any party that stands for liberty. Both on the right and left they both agree, government should be tyrannical and law arbitrarily applied, they disagree if society should be destroyed immediately, so the world government can be ushered in or if European socialism should be confined to Europeans. Read the platforms of any party and they read like a socialist list of votes to buy. Pandering to this or that faction, unless they seek liberty, then they are a pariah.

We have woken up to the game even as the last quarter is upon us. Perhaps not too late, the democratization of information made possible by the internet, has reduced the gate keepers to babbling fools, still mesmerized by their past success. We now see them for who they are, and every day as more people wake up to it, the demand for actual representation rather than misrepresentation grows across Europe and the US. The demand for change is forcing evolution on all of us, even the elite. They may believe themselves in the catbird’s seat, European civilization is facing existential threat from unlimited Muslim immigration, which would collapse the system allowing the Fabians to rebuild it in the image they see as better. The US two party system is showing is slip for the people to see and the Cloward and Pivon strategy is in full execution. Change is coming, whether that change is good or bad remains to be seen, but change becomes inevitable once the people believe their own eyes, that the emperor is naked. Better prepare for rough times…

Sincerely,

John Pepin

Small Businesses, the Engine of Economic Growth

Monday, August 15th, 2016

Dear Friends,

It seems to me, the barriers to starting a small business have never been higher, as evidenced by the dearth of small businesses that are starting up. This is critical because the economic potential of any economy is a factor of the number and quality of small businesses that start in a given time period. That is because small businesses are the engine of economic growth, both by being the font of innovation, which begins the Schumpeterian cycle of economic growth and as the biggest job creator there is. If the economic cycle is stopped real economic growth stops too. Economies cannot grow organically without innovation, big businesses are not innovative nor is government. Universities can help by advancing science, but if those advances cannot be implemented, the economy cannot get a boost from even the most amazing scientific advance. Without robust job growth wages stagnate and decline, lowering economic overall demand and demand for innovative products, as well as our standard of living. The trend bodes ill for our children’s economic well being.

The economic cycle as explained by Schumpeter is a three phase system… creation, implementation and destruction, Schumpeter’s creative destruction. First an entrepreneur comes up with an innovation, for a new product, an new way of organizing business or a new way of manufacturing. This innovation starts the upswing of the cycle. The new idea is implemented creating demand for labor, plant and capital to exploit it. As the idea is implemented the economy grows dramatically. Once the idea has been fully utilized, the old products and ways of organizing business become obsolete… and so go bankrupt. As they go bankrupt the economy goes into recession, lowering the cost of capital, plant and labor opening the way for a new entrepreneur to innovate starting the cycle again.

Small businesses create all new jobs. Clearly, those who innovate and those who work for innovators, by definition, have no experience. After all it is new. So, people who have little experience get pulled in to work at those new businesses, creating opportunities for new workers and laid off workers. The extra demand for labor drives up the cost of wages via the supply demand equation. Wages for everyone goes up driving up demand for everything… especially the new product, (if that is the source of the innovative part of the cycle). If older companies want to retain their best workers those older firms must provide competing wages. Ford famously said he wanted to pay his workers enough to buy one of his cars. To him, paying more in labor was a small price to pay when that investment paid such huge dividends, by driving up demand for his product. In other words he made less per unit but made more in the end because he sold many more units.

When the economic cycle of innovation, expansion and destruction is tripped up, an economy cannot expand organically and in fact shrinks in real terms. This stagnation can be covered up by money printing, government spending and Enron accounting but sooner or later the chickens must come home to roost. The largest and most destructive recessions and depressions have been a result of this in action. The Great Depression started as a recession, but morphed into a depression by Hoover and FDR’s policies, that short circuited small business creation. The Great Depression would have never ended if not for the death of FDR and his policies crushing small businesses in favor of corporations. Obama’s policies have all but stopped small business creation, resulting in the present depression, one that only in the history books to be written, will be named and recognized.

Think about it, with all the legal and bureaucratic red tape today throughout the West, would you start a small business? The legal cost alone, simply to get permission from the government to start a lemonade stand, is nearly insurmountable. Today the cost of capital is at an all time low even as the availability of capital to start a small business is dried up. Cheap money via the Federal Reserve’s printing press only goes to government and corporations. Government spends that money to artificially gin economic growth and corporations are using it to buy back stock, thereby enriching upper management at cost to shareholders, employees and customers. None of the “cheap” money is going to innovators. Meanwhile, plant and equipment is getting more expensive every day, raising the bar for starting a small business.

While stopping small business creation damages the interests of the people… it advances the interests of the elite. CEOs can pad their plentiful income by artificially boosting their stock price in the short term, by borrowing money and spending it to buy back their stock, corporations face less competition from innovators making the job of the new class much cushier, government cronies get huge political contributions to keep the gravy train running, and corporations get to lower their labor costs because of the drop in demand for labor. This lack of demand for labor or is exemplified by the dismal percentage of people still in the labor force. Crushing small business start ups is a win win for the elite and a loose loose for the rest of us. Of course, it is the elite that make policy and we that must live the effects of those policies, for better or worse. Now you know the whole story… the economic truth the elite will don’t want you hear.

Sincerely,

John Pepin

Education as an Investment

Thursday, July 28th, 2016

Dear Friends,

It seems to me, as education goes in a nation, so does that nation. If children are given an excellent education in a wealthy country, the likelihood of economic advancement becomes far more likely, while at the same time a poor education in a wealthy country, will grind that nation into poverty. The same holds true in a poor country, good education leads to better outcomes and poor education leads to poor outcomes. Taken in the aggregate, the more good outcomes for the individual, the better the national outcome. Children need to be able to read, write, do math, know history as well as understand economics. In most nations today, if not all, economic education is absent, and history is a means to vilify people rather than enlighten. Education is an investment in the future wealth of a nation.

Like any investment there are good investments and bad. One can invest in fake oil futures and loose her shirt, or invest in heavy manufacturing, and make money. Education is like that. Invest in bad education and the future wealth of that nation is destroyed, invest in good education and the future is so bright kids have to wear shades. We as a society have embraced the idea that education is an important investment, we spend huge amounts of money on it, yet we see the abilities of our kids diminish. To sharpen the point a bit more, if someone invests a thousand dollars in a scam, they will loose all the money, if they invest a billion dollars in that same scam, they will still loose the money. The amount of money invested does not effect the quality of the investment.

The quality of an investment is only dependent on the quality of the investment itself. There have been times in the US where education was not expensive at all yet the quality of education was excellent. Today we spend exponentially more and have outcomes that wouldn’t have been tolerated even a few generations ago. The quality of education has gone down while the cost has risen. Clearly we are investing in an education system that is under performing. Those who make money from the present system, shockingly, claim the answer is to spend more money on it, (them), citing the fallacy that more money improves the quality of an investment, which is patently untrue. The reality is we need to improve the quality of the investment, education, rather than spend more money.

Education over the last century has gone from the purview of local government, to national government, taking the decisions farther and farther from the people, putting them in the hands of unaccountable administrators, who make gobs of money regardless of the outcome of students. Obviously that is a recipe for disaster. Whenever people are unaccountable for the outcome of their actions, it is in human nature to become arrogant and have poor performance. Today we have education standard that are set by bureaucrats at the highest reaches of government, local schools must follow else loose access to the heaps of money the government takes from us to enforce their objectives. Good education is not one of them, political education apparently is.

Students should be taught economics and everyone graduation high school should have a basic understanding of a market system, money theory, the interaction of interest rates and inflation, and have a grasp on the various competing theories of economics, Keynesian, Marxist, Austrian school and Schumpeter’s boom bust theory as well. Such education would allow kids to understand the macro economic theme of various elections and the underlying economic theories of the various actors. Sadly, that is not the case today, in fact economics is not taught in high school at all, even home economics has been abandoned for political indoctrination. Children are being taught what to think rather than how to reason.

History should be taught in an over arching theme of humanity advancing in science, philosophy and culture, never in a political context. Industrial arts must be returned to our schools, for those children who have a talent for working with their hands, especially since it gives kids the ability to create what they dream. Basic philosophy, logic, epistemology, ethics and semantics should be covered in a good education system. These are some of the important courses that have been ignored so that other less important course can be taught, like how to put a condom on a cucumber, how to use Google, why homosexuality is good, atheism, etc… Our children are nothing more than lab rats to the hubris and egos of the education dictators. The results are children graduating school, unable to engage in the market system, angry at the history of their nations, incapable of controlling themselves, needing safe spaces so they don’t have to hear unpleasant truths, and cannot make change without a cash register doing it for them.

The government monopoly school system has shown itself to be an abject failure, in every way by every measure, more spending will not change that. That failure portends our children’s economic standard of living to be a failure as well. We need to get away from traditional school funding and bring in a voucher system, where parents can choose the education they want for their children, and allows use of the money government takes from them to do it. Let the free market improve the quality of education, rather than throw more money at a failed system, to maintain it’s failure, and our children’s mediocrity. Those education tzars who run the show today scream like scalded cats at the thought, adding their voices to the political elite, who benefit from a poorly educated people, to insure a voucher system never be tried. They argue… “a voucher system would destroy the public school system,” which if one thinks about it, is grounds enough to do it, if only people had sufficient education to reason it through.

Sincerely,

John Pepin

Which is More Just, a Free Market or Socialism?

Monday, July 25th, 2016

Dear Friends,

It seems to me, we can argue all day long whether a zebra’s stripes are black, or white, but at the end of the day we still haven’t answered whether a zebra is an equine or not. In the same way, progressives and free market proponents argue about whether profit is good or bad, but that misses the point, in reality everyone seeks profit, both the capitalist and the socialist, the real question is, whether profit should come from providing value to your fellow man or at his cost? Those who contend that profit is good, know their’s is a weak argument weighed on it’s inherent merit, so to change the subject is a way to seize a moral high ground they have no right to, and keep their real position from being known, let alone discussed on it’s merits. So we fight and wrestle, vilifying each other over such weighty questions as, “are a zebra’s stripes white or black?”

Progressives claim the market system is based on profit, and profit is greed, and greed is bad. Therefore, they further contest, the market system is bad. Both Marxists and capitalists seek profits however. Socialists seek profits as much as capitalists. The socialist however, as opposed to a capitalist, seeks profits for nothing. What do you think the public dole is? The dole is nothing more than a profit to the recipient. The dole however, is not based on providing for your fellow man or woman, it is based on one’s existence. If the dole is a form of profit, and we see that it so obviously is, they are condemned by their own argument, progressivism, socialism and communism are based on greed… and are therefore bad. But that is arguing on progressive’s terms.

The real question is, is it more just to get a profit for providing value or not? The socialist side stands that it is unjust to “force” people to provide value to another for profit. They contend it is more just if we provide profit to others free of charge. This is what we should be discussing, not whether profit itself is good or bad, that is as I have shown merely a diversion. To answer that question we must first answer what is justice. The modern interpretation, since the Enlightenment is… equal treatment. Even a child innately knows justice and demonstrate it when they say, “It’s not fair!” The justice of a child is not equal justice however, because a child lacks the ability to be objective, that is a learned trait. That is exactly the root of socialism however, the demand of a petulant dependent incompetent child, to get one’s needs met.

The free market’s means for getting profit is to meet a need of someone else. Providing value in and of itself, is a good of the first and second order. A good can be broken into two types, a good we do for it’s own sake; (the first order), and a good we do because it staves off a bad; (the second order). Brushing your teeth is a good of the second order in that we don’t do it for itself we do it to stave off tooth decay. Skiing is a good of the first order, for those who love to ski, since it is a good we do for itself. Providing value for profit is both types of good. That providing value for one’s profit is a good of the first order is embodied in the old saying… “Choose a job you love and you will never work a day.” Regardless of the value as career advice, that saying is true in that many people love their jobs and cannot see themselves doing anything else.

Providing value for profit is also a good of the second order, since the innate requirement to meet someone else needs to get one’s own bread incentivizes positive behavior as, courtesy, perspective, humility, sympathy and equal treatment. At it’s most basic level, the ancient tradition of the merchant, a merchant has to be able to see things from another’s perspective to provide what the customer wants and needs, she has to be courteous else risk the loss of sales and profit, he must be humble lest his supplier or customer go somewhere else, sympathy is a natural outcome of the ability to see from another’s perspective, and every incentive for a salesperson is to treat everyone equally, to maximize profits. As we can see, providing value is a good of both types.

Socialism on the other hand is not a good of either the first order nor the second. Human nature is not egalitarian, self sacrificing, or accepting of one’s “place.” Those attribute go against the demands of evolution. A species that self sacrifices is soon eliminated from the biosphere, eschewing saving up food is a sure path to starvation during times of want, and if not for the drive to get ahead of one’s competition one falls behind in that competition, in the case of a species, that species goes extinct. Human nature itself is damning of socialism. To be a good of the first order socialism would spontaneously happen, as did skiing, due to it’s being a good of the first order, as the free market has. That it has only happened under extreme pressure from the state, shows socialism is not a good we would do for it’s own sake.

Getting profit for nothing also falls far short of a good of the second order. Getting profit for nothing incentivizes people to be rude, uncaring, egoistic, and discriminating. The best historical reference for someone who gets profit for nothing is the aristocracy of feudal cultures. The aristocrat could be as rude to the peasants as he or she wanted, they had no comprehension of the life of the masses, aristocracy is nothing if not egoistic, their profit was inherent to their existence. Moreover, at court, those with political favor were above the law, while those without were below it’s protections, because that enhanced the aristocracy’s profit. These same attributes are created by incentive in those who receive the dole. Not to argue everyone who receives profit for nothing is bad, as it is the case that not everyone who provides value is good. The incentives however over time impel either good attributes in people or bad ones, the more the bad ones the easier it is follow the crowd and adopt bad behaviors.

Taken on their own ground, that profit is bad, socialism condemns itself in it’s own words, moreover, when we consider the real argument between free market advocates and socialism’s adherents, which is more just… to get profit for nothing or for providing value, the answer becomes obvious. Providing value for others is a good of both the first and second order. The market forces equal treatment by the ever present threat of bankruptcy, plus, as a good of the second order it incentivizes people, over time, to treat each other equally, which both meet the fundamental definition of justice. Meanwhile, socialism is not a good of either type, creating conditions for unequal treatment of people along with a host of negative behaviors, showing socialism to be unjust. That socialist have obtained the moral high ground and advanced their position as far as they have, is because we have been accepting their premise and contending on their ground, arguing to the head of a pin, what color zebra stripes are, to answer the question of is that zebra an equine or not.

Sincerely,

John Pepin

Human Rights and Progressivism

Monday, July 18th, 2016

Dear Friends,

It seems to me… progressives have never seen a human Right they don’t despise and want to get rid of. Their rhetoric and actions prove this. From their zealous attacks on the right of self defense, to their undermining of the freedom of religion, progressives show their absolute antipathy to human rights of every stripe. In their zealous crusade to rid government of the burden of having to labor under the odium of the people’s individual rights, progressives have rolled back the advancement of philosophy, humanity and government, to a time well before the Enlightenment. Progressives are only too happy to use human rights to destroy human rights however. They pick and choose who gets rights and who doesn’t, in an effort to undermine and corrode basic natural law, which is the font of all human rights. Progressives are never happier than when they are overseeing a genocide which makes them the antithesis of human hearted, making Progressivism and all progressives, diabolical.

All human rights come from natural law. Before governments were invented all human beings were created equal, had innate rights like, the right to self defense, the right to privacy, the right to own the fruits of their labor, the right to own property both personal and real as well as, the right to think and believe as each chooses. Government and powerful men stole those human rights by the sword. People were enslaved by those powerful men, who needed an excuse for their evil, so they came up with the theory of arbitrary rule. Once that had been thoroughly debunked, the powerful changed it to the rights of kings, today that philosophy has been renamed social justice. All in an attempt to destroy human rights to justify people being exploited as slaves. Which of course is the direct opposite of natural rights, or as Socrates called it, justice.

The right of self defense is their most important bugaboo. Progressives and indeed everyone who has a penchant for tyranny loathes the right to self defense. How can you enslave a person who is capable and willing to defend themselves and their children from your evil? The basic human right to self defense is the first right from which all others flow, for if one has no right to defend him or herself from the usurpations of a monster, than all other rights become null and void. Everywhere and every time human beings have been denied their basic human right of self defense, it has resulted in slavery, suffering and death, there are no historical examples where this is not true. From ancient China to the modern Syria masters had arms and slaves were disarmed. Before a person can be enslaved they must be disarmed whether by force or trickery. Now they are using trickery but soon progressives will become anxious and will resort to violence… as they always have.

Today progressive make a compelling case to get rid of basic human rights. They seek to control thought, whether by hate crimes or political correctness, progressives seek to control not only what we do, but what we think as well. The right to freedom of religion has been perverted to separation of church and state, which actually means the elevation of atheism, as the state religion. The right to privacy doesn’t exist in a surveillance state, where your every move is recorded and stored in a government data bank, for use against you when the elite see fit. Moreover, how can anyone argue, with a straight face, that we are protected in our personal papers and effects when government can hack into our phones, computers and phone conversations without warrant? Instead of “interpreting” our Constitution, as it was written and intended, progressives claim it is a “living breathing document,” which means they get to change it’s meaning arbitrarily, eviscerating the protections our Constitution is supposed to provide. What is most distressing is that a huge number of people fall for such chicanery.

Justice is not arbitrary rule no matter what they call it, freedom is never submission and humanity cannot be imposed by the state’s monopoly on violence. Our basic human rights come from God or nature but not and never government. Government is the opposite of freedom. While in a state of nature you can go out and kill a deer to feed your family, grow whatever crop you want to fill your children’s bellies, worship whatever deity you please, protect your family and self from thieves and murderers with violence if necessary, build a home, and think whatever you want, progressives always seeks to take these rights away. If you need permission from government… they have taken away your right to do it.

That progressives loathe and despise human rights is an open secret. Their every action serves to undermine human rights and humanity itself in the process… all in the name of “equality.” Progressive’s, socialist’s and Marxist’s version of equality, however, is where some people are more equal than others, to borrow a phrase. While they zealously defend their own “right” to control our thoughts, actions and religious beliefs, arbitrarily as in the rights of kings, they actively destroy those of everyone else. The quiet of Woodrow Wilson when the Armenians were being exterminated, FDR’s silence as Jews were being slaughtered on an industrial scale, and now Obama’s defense of those massacring Christians in their original lands, shows progressives, socialists and Marxists passion for genocide. The master has every right while the slave has not even the right to life. They hold us to every word of their law, constitutional or not, while openly arguing law doesn’t apply to them. Listen to what they say, consider what the outcome of their argument will be… exercise your basic human right to think, before it is taken away.

Sincerely,

John Pepin

CEO Pay

Thursday, July 14th, 2016

Dear Friends,

It seems to me, a painter who charged for paint but used white wash, a drywaller who put up cardboard instead of sheetrock and a paver who used clay slurry instead of asphalt, would not deserve a huge bonus, but that is exactly what our CEOs do… and get. The difference in treatment for the new class and the rest of us is as stark as it is baffling. You would think people would start a rumpus over it. Instead, we take it, doing our best at our job and settle for shoddy workmanship from the new class. Meanwhile they demand us to deliver excellent quality at high rates of productivity for ever lower wages. Our economy, wages and standard of living corrodes every day for it. Today the new class is fighting an undeclared war against the hoi polloi. So much so that now we live in the age of the principle agent dilemma.

Our businesses have become so politicized they no longer function as profit making enterprises but lackeys of the progressives. Examples like Target are glaring. Target has decided to poke it’s customers in the eye with such absurdities as allowing men into the woman’s bathroom. On the face of it that decision alienates customers, corrodes the value of the shareholders and puts employees jobs at risk. The decision to follow a political regime changes Target from a retailer that provides value to customers, jobs for employees and returns on investment for shareholders, is a form of corporate suicide. The CEO however will not suffer for his decision, there will be no negative consequences for him, but the fallout for everyone else will be disastrous. From children being abused in the bathroom to shareholders loosing their hard earned money, the rest of us will be on the loosing side of that gambit. If Target goes belly up from that policy, the CEO will still get his bonus, and another cushy job, where he can impose his absurd political beliefs on the rest of us, even as he has used cardboard in place of drywall.

Stock buybacks is another example of how the new class embezzles money from shareholders. Stock buybacks, the main reason the stock market has risen to record highs, provide no real return to shareholders but instead corrodes the actual value of their stock. The new class borrow money against the real value of the company, diminishing that value, then buy it’s own stock artificially increasing the stock price while eroding it’s actual value, because that money is not used to buy the means of production so the company can be more profitable in the future, nor is it used to expand territory, or integrate with it’s suppliers or retailers to provide a basis for future profit growth. All a stock buyback does is make a short term stock price rise, in the absence of future profit potential, so the upper management, the new class, can get huge bonuses for that price increase. In other words, they use clay slurry instead of asphalt, the moment it rains the reality of what they have done will become apparent.

The new class is in favor of any and every regulation that comes down the pike. Regulations make the job of a CEO much easier. While that statement may seem counter intuitive it is truth incarnate. Regulations are easy for a large firm to follow, with their armies of new class lawyers and deep pockets to meet them, regulations are death for small businesses that compete with large corporations. To paraphrase Milton Friedman… If a CEO faces competition from a small business that makes a better product at a lower price point, that CEO can lower prices and increase quality, which both lowers his bonuses and makes her work harder, or they can go to their trapped regulators and get the small business shut down. Obviously, as history shows, they will go to government to stifle competition. In doing so they crush innovation, the lifeblood of a market economy and drive down wages by lowering demand for labor. It is almost like they are using white wash instead of paint.

We pay top dollar to our principles for inferior work. Every day the new class is living the principle agent dilemma everywhere we look. They politicize their firms, they destroy value and stifle innovation, all to the very real detriment of everyone else. The new class is the agent and the rest of us are the principles. We own companies when we have IRAs and we are the citizens of government, we are the principles, the new class, CEOs, lawyers, journalists, bureaucrats, teachers, politicians, professors, etc… are our agents. They are supposed to work for us. The trouble is, the agent will abuse his position for personal gain all day long, if they can get away with it. Many people do raise a commotion, but in the end only empower the new class to further abuse their positions, because the new class channels that anger to increasing their power as our agents. Regulation is increased, journalism veers decidedly leftist, political correctness becomes ever more ingrained and our liberty is washed away by it. The problem starts and ends in our colleges and universities where our children are indoctrinated into the new class mindset. It is past time to wrest our education system from Marxists and progressives and instead teach common sense, work ethic and basic logic.

Sincerely,

John Pepin

The Obama Presidency

Monday, July 11th, 2016

Dear Friends,

It seems to me, the United States and indeed the entire world, is far worse off eight years after the election of Barak Obama, making his Presidency one of the worst, if not the worst President in US history. By every measure the US has slid backwards, race relations, disease, economically, socially, militarily and culturally. Obama’s outstandingly poor record of performance while in office is also marred by the most damaging scandals in US history, fast and furious, Benghazi, IRS as a political weapon, wiretapping reporters, the VA scandal, etc… all these scandals without a single special prosecutor. From the destruction of the US Constitution to the rise of radical Islam Obama has created one mess after another at home and abroad. When he was elected he ran on hope and change, today hope for the future is at an all time low, and our nation has been fundamentally changed for the worse.

When Obama was elected race relations were at an all time high. Obama had huge support of every race especially white voters. Since he was elected he has sown the seeds of division, hate and anger. Today there is violence in our streets, police are being murdered across our nation and our large cities are no longer safe places to raise children or even go to the store. Rather then unifying us Obama has made it his priority to divide us along racial lines. From jumping in to attack the Cambridge police before he had any information, then having to have a “beer summit” to save face, to his absurd stance that easy access to guns is causing the riots and police murders, Obama ‘ record on race relations is as bad if not worse than Woodrow Wilson’s.

Economically, Obama has been the only President in history to enjoy zero interest rate for the entirety of his term, yet economically the US has been in depression since the great recession. The staggering number of people not it the workforce shows an underlying weakness in the economy that is as pervasive as it is destructive of our standard of living. Meanwhile, that record low worker participation rate feeds the need for record welfare rolls, record food stamp participants and declining real wages. Despite the run up in stocks, largely fueled by the unheard of low interest rate allowing corporations to buy back their own stock thus keeping the market artificially high, enriching the corporate CEOs at cost to shareholders, customers and employees, the actual value of our investments has declined with a record high price to earnings ratio (P/E). Because of Obama care the incentives to hire full time employees is negative. That is why low paying temp jobs are rapidly becoming the norm and poverty is rising.

There has never been a President who had so many terrorist attacks on US soil during his Presidency. Once 911 happened, Bush took steps, and we didn’t see another successful attack on American soil under his Presidency, in stark contrast to Obama. Under Obama there has been an Islamic terror attack resulting in American deaths every year of his Presidency. Obama has done everything in his power to hinder law enforcement from addressing the root causes of Islamic terror even refusing to acknowledge Islamic terror! His willful blindness to Islamic theology, inciting it’s followers to attack infidels and instill terror in their hearts, as Islamic scripture induces it’s followers to do, has encouraged more attacks, not placated them as Obama said it would. Today the average American is more likely to die from an Islamic terrorist attack than at any other time in US history.

The US Constitution is under attack from every angle today. Every amendment has been eroded under Obama. From his perpetual hatred of the Second Amendment, to outright attacks on free speech and freedom of religion, Obama has shown himself to be an enemy of our basic fundamental rights as enumerated in our founding documents. Our society has moved so far away from limited government and liberty, that a politician who openly avows fealty to our Constitution and it’s principles, is called an extremist! The rule of law has become arbitrary rule under Obama with some above the law and others below it’s protections.

In Iraq, Obama snatched loss from the jaws of victory. Regardless whether we should have got in that war to begin with, Bush had essentially won the war, when Obama came into office he unilaterally withdrew US forces and ceded Iraq to radical Islamic fundamentalists, who have since wiped Christianity from that place where it has been for two thousand years, enslaved young women for sex, and is a safe haven for exporting Jihad to the rest of the world. When the people of Iran rose up to quit themselves of the chains of the Ayatollah, Obama sided with the Ayatollah, and against the freedom movement! Last year Obama gave Iran the green light to build a nuclear arsenal it can use against the US and Israel, with a memo recently intercepted from Iran, showing they plan to use an EMP weapon against the US power grid!

By every measure the Obama Presidency has been a disaster. Our economy is teetering on the edge of catastrophe, our streets run red with blood, our Constitutional Rights are under assault like never before, the world has devolved into turmoil and war, the proliferation of weapons of mass destruction goes on unimpeded and hope for the future is at another all time low. The hacking of the Black Lives Matter movement, a home grown terrorist organization, leaked to the public shows they plan on a “Summer of Chaos,” that they hope will allow Obama to usher in marshal law. Now, that would be his crowning achievement, calling for marshal law in the US for the first time in our history. One has to wonder how anyone so inept could become a janitor, let alone President, unless he is not incompetent, but a villain. History will have to answer that question, what is unquestionable however, is that Obama has been one of if not the worst President in US history if not the worst… as measured by results.

Sincerely,

John Pepin

Justice, Honor and Arbitrary Rule.

Thursday, July 7th, 2016

Dear Friends,

It seems to me, the mask has come off, we in the US now officially live under arbitrary rule and our leaders have no honor whatsoever. The fact Hillary Clinton has not, and will not be indicted for destroying evidence, keeping top secret information on an unsecured server, using a personal email for government business and/or lying under oath to congress, is proof positive we live under arbitrary rule. If anyone with less political power did one of those things they would be in jail and everyone knows it. That is an undeniable fact. The US has become, no longer a constitutional republic, but a banana republic. That a member of the elite can get away with multiple infringements of federal laws, without consequences, consequences that you or I would face, shows there is a double standard at work that is as pernicious as it is destructive. Moreover, recent news articles have shown that the rest of us no longer have the protections of law, or our Constitutional rights. Just as Rome was no longer a republic after Caesar crossed the Rubicon, the US is no longer a republic since the elite have the audacity to rub our noses in the fact they are above the law, and we are below it’s protections.

There is no true rule of law whatsoever the world over. This is not just happening in the US but is a world wide phenomenon. Human history is nothing but a story of the elite holding the people to laws they will not hold themselves to. The US was different, for a speck of time, because the US had the rule of law. True, the elite held themselves to it by their honor… but at least they did. Since FDR broke the unwritten rule that a President only run for two terms, our elite have increasingly lost all honor, and have disgraced themselves in every way possible. It is a quality of a civilized person to hold others to a lower standard then one does him or herself. To hold others to a higher standard then oneself, shows a lack of character, moral indifference and conniving which is on full display in the Hillary Clinton case.

Throughout history the wise have opined about the need for honor among the rulers of a society. When the rulers have no honor they will resort to every evil known to Man. History shows this to be true but goes further. In a society where the elite have no honor the people quickly loose their honor. Confucius said it first, (at least as far as I know), the people follow their leaders into corruption or virtue. In a nation where the leaders have no honor, the people will have no honor, where the people have no honor crime, chaos and beggary are rife. Economies grow in serenity and collapse in chaos, wealth flourishes in the absence of crime but erodes like sand when crime is rampant and where the economy is collapsing and wealth is being destroyed, poverty becomes the norm. All because the leaders have no honor.

The question of whether justice or arbitrary rule is best was considered in Plato’s book, The Republic. In it, Socrates argued for justice, while Thrasymachus the sophist argued for arbitrary rule. Thrasymachus claimed the great men, (those with political power, intelligence, wealth and ambition), should not follow the law, only appear to do so… law is only to make the hoi polloi believe there is justice to facilitate the control of the people and trick them into being obedient. Socrates made the argument justice in and of itself is a good. Justice is both a good that we do because it is good and a useful good as well. By allowing arbitrary rule to come back into fashion we become the dupes of the “great men.” Do you want the elite to exploit law to enrich themselves, amass political power over us and eventually tyrannize us? Or do you agree with Socrates that justice is a good in and of itself, one that is useful in creating a peaceful, wealthy and safe society?

Why would the people follow laws even those who write them don’t? Every one of us is a hypocrisy detector and hypocrisy is the surest way to make people despise the law. As a lack of honor flows from the top down a society will increasingly only follow laws by force and threat. Whenever they believe they can get away with breaking a law they will. Once dishonor reaches the lowest rung of a society no amount of punishment will suffice. People will not be not safe in their own homes, business cannot be conducted, children are at risk, people’s oaths are meaningless and every chance meeting becomes a danger. Clearly, to allow the leaders of a country to become utterly corrupt, dishonorable, conniving and lustful for power, can only lead to human suffering on a national scale.

One way to tell how dishonorable your leaders are is to look around with open eyes. Do people need bars on their windows, are all children safe on the streets, can you look at a passerby in the eye, is poverty rampant? Corrupt leaders will claim all this is due to worthless, lazy and ignorant people, but will never look in a mirror. The Duke of Lu asked Confucius one day, how he could get the people to stop lusting after other men’s wives, stealing and murder. Confucius said, the duke could lead by example and stop doing those things himself. Shortly after that Confucius and his disciples had to flee Lu state in fear of their lives. Let the scales drop from your eyes and really see.

So you see, this is not a matter of hate of an individual or gotcha politics, it is a matter of justice and human suffering. If we allow our noses to be rubbed in the elite’s corruption, we have given our consent to the elite to be even less honorable, in doing so we sentence our children and grand children to a life of poverty, fear and tyranny. Just because you like a politician, is no reason to allow them to get away with blatantly breaking laws, laws you or I would be severely punished for. Such actions are those of children, sycophants and imbeciles. Say nothing, do nothing, and the US will join the ranks of other failed experiments in human governance like Rome, Athens, Sparta, etc… with the same catastrophic results, human suffering on a grand scale. To do nothing is to abet a crime against humanity, to do something, even if it is small and of little consequence, is to make a stand against corruption. The choice is yours, lay down and let the elite walk over you… or stand and push back. It may be too late to have an effect, since we have allowed our leaders to be villains for so long, but maybe not. Regardless, do you want to be hated by your own grandchildren for your lack of back bone, or be a champion for liberty, prosperity and equality?

Sincerely,

John Pepin