Posts Tagged ‘rational maximiser’

Our Replacements… Illegal Immigrants

Sunday, August 16th, 2015

Dear Friends,

It seems to me, the new class is unhappy with the way Americans and Europeans have voted, so they are replacing us with people they believe will vote correctly. You have heard the term undocumented democrats, well tat is pretty close to the whole truth, most illegal aliens are from nations that have no concept, or at best a perverted understanding, of capitalism, socialism, limited government, liberty, human heartedness and history. They mostly come from autocratic countries that have never had those things, yet the people fleeing from dictatorships are more than happy to establish tyranny here. Not that illegal immigrants are necessarily bad, nor that they are stupid, they simply are ignorant and so can be easily manipulated into voting against their own best interests. To put it in the new class/Marxist vernacular, “They are willing to take up their historic role in the revolution.” That is why the elite intellectuals so love illegal immigration from autocracies and forbid immigration from Western capitalist nations. The goal is to destroy every vestige of limited government, capitalism, liberty and human heartedness.

Alvin Gouldner put it this way, “Marx said, ‘Philosophy is the head of emancipation, and the proletariat is the heart.’ But it takes a great deal of fancy theoretical footwork—in short, of ideology and false consciousness—to assume that the head and heart of politics are always integrated and have identical interests. Indeed, much of the discussion among Marxists today, concerning the failure of the proletariat as an historical force thus far, is in effect a discussion about the possibility of a ‘heart transplant’; that is, of replacing the proletariat with another historical actor: e.g., students, blacks, third world forces, etc. Intellectuals are capable of being an autonomous political force and when one social group does not play the role they have assigned to it, when it fails in its ‘historical responsibility’, intellectuals will often shop around for another client group to ‘represent’. False consciousness is generated when the special, vested interests of intellectuals are deemed illegitimate and are therefore concealed, and when intellectuals feel they must pretend to be representatives of another group’s interests.” This is written in the new class language or code, and everyone knows a code is to keep the unwanted from understanding what is said and meant.

To unpack Gouldner’s thesis, in classical Marxism, the people, you and I, have a role to play, it is our “historical responsibility” to bring about a socialist revolution. In the US and Europe, the people have not done what Marx and his allies wanted, rise up calling for socialism, and so we must be replaced. In this way illegal immigration is the “heart transplant” he talks about. The intellectuals, college professors, out of work PHDs, Deans of universities, etc… the leaders of the new class, are more than happy to lead the revolution and overthrow the old order… of liberty, limited government, human heartedness and capitalism, but they can’t go it alone they need a large faction to back them. There is a reason Obama’s government has more intellectuals than any before him and indeed Obama himself is an intellectual.

What and why do they want to eliminate? Capitalism, because the new class are useless and unable to provide anything of real value, they cannot prosper by it but under socialism, they get the benefit. Who cares if the people suffer under socialism, the elite prosper. Limited government is obnoxious to the new class intellectual, since they are always the people who staff government, limiting their power over the people, economy and civilization, offends their egos. Liberty to the new class is something that should be reserved to them alone, those who are not willing to simply live and let live but want control, use justice as a tool to pry justice from the hands of the people. The new class hates human heartedness because there are things a human hearted man or woman will not do. The human hearted person is unwilling to “break some eggs for the greater good.” Human heartedness requires empathy, love of one’s fellow man, acceptance of their flaws and a deep desire to do no harm. How can any revolution get underway until the people are willing to slaughter whomever the elite tell them to?

So there you have it, the new class elite’s love of illegal immigration has nothing at all to do with improving anyone’s life, it is not about compassion or human heartedness, it is about exploiting the political system, for wealth, power and prestige. The new class believes itself to be our intellectual, and moral inferiors, why shouldn’t the rest of us lesser caliber people bow to them, give them our wealth and cow toe to their demands for us? After all, we don’t have PHDs, we are not their equals… we are their subordinates, and so since we are unwilling to accept our role in human affairs, as appointed to us by them, they have no choice but to replace us, with those who are willing to accept their role in the revolution. That my friends is why the new class elite defend and so love illegal immigration.


John Pepin

Planned Parenthood Controversy

Thursday, August 6th, 2015

Dear Friends,

It seems to me, if a fetus is not a human being, then you and I are not human beings. The concept that a fetus is not a human being, as purported by the anti lifers, is based on an age argument. That is, those who are not yet born are not human beings, because they are too young to be called such. Many would disagree and say the anti life argument is, they cannot live on their own outside the womb, but that argument is proven false by the approval of anti lifers for late term abortion, where the child is eminently capable of living outside the womb. Moreover, even if we accept the spurious argument a baby not yet born is not a human being, because they cannot live outside the womb, that is still at it’s core an age argument. The age argument if further bolstered by the fact that now there are anti life groups that claim a baby could be post birth aborted up to a year old. Therefore, they are arguing that age is the deciding factor of whether a human being, can be considered a human being, depending on age. The realization of this as their core argument should send a chill down the spine of every human being on the planet.

The logical extension of the age argument is, the definition of a person as human is age dependent, and a fetus is not human due to his or her age, and can be killed because they are not humans, ie, not old enough to be considered human. Moreover it follows that the older one gets the more human they must become. This is no different in kind then the outmoded claim that blacks are not fully human, due to the color of their skin being darker than others, so anyone who has lighter skin than another can by definition enslave that darker person. Therefore logically, any older person can kill any younger person, because the younger person is not as human. Both spurious arguments are based on a fictitious definition of what it means to be a human being.

So we have to ask ourselves, “what is humanness?” If we look at what are the defining characteristics of humanness, we can observe the extrinsic characteristics of humans, we are bipedal, we are largely hairless except for our heads and vestigial body hair, we have large brains, two arms ending in hands, two legs ending in feet, we have two sexes both of which are human beings, we sickle our young, we are mammals, we are sentient, we are omnivores, etc… But basically we know a human being when we see a human being. Nowhere in that list, or any other that you could come up with, is age a factor. That is like saying a white horse is not a horse.

Another factor that torpedoes the anti life definition of humanness is that they also seek to kill old people. They have dozens of nice sounding names, for the killing of old people like, death with dignity. So the anti lifers do not believe that age begets humanness, since people at both ends of the age range are subject to being killed. The anti lifers also have in the past, and advocate even today in some circles, for the killing of people who are mentally retarded, profoundly handicapped and insane. Therefore, we are left with one conclusion, that the anti lifers hold other human beings as less than deserving of their lives. Those that the anti lifers are offended by, for whatever reason, are subject to being killed, not because they are not human beings, but because human beings in their minds are not credited with any right to life.

The controversy surrounding the killing of a lion is indicative of the anti human mindset that pervades our culture today. For all the hullabaloo around the killing of Cecil the lion, ginned up by the media that calls itself unbiased, the fact remains, Cecil was an animal not a human being. Those that anthropomorphous a lion, claiming it has the same right to life as a fellow human being, are perverting the definition of human beings to suit their desires, in both directions. This is magnified by the fact, the media that calls itself unbiased, ignore the extermination of Christians from the Holy Land.

Now with the revelations, revelations that become more horrifying every new video that comes out, that Planned Parenthood is essentially torturing babies to death, so their body parts can be more profitable, the fact cannot be denied… they are anti human life. Not their own of course, they hold on to their own life with a white knuckled grip. They might call for the large scale systematic extermination of others, but they cherish their own lives like a miser cherishes gold. To be good is to follow the golden rule, do unto others as you would have others do unto you, to be a bad person, is to do unto others as you would not have done unto you. What can be said about someone who cherishes their own life, while at the same time are perfectly comfortable killing another? They are simply bad people.

In reality, a human being is a human being, no matter how old they are or deficient in any way, and so spurious arguments as whether someone is a human being, are mere hyperbole to defend the indefensible. Outrage over the killing of an animal, while at the same time ignoring a very real genocide of human beings of all ages, is to replace compassion for your fellow man with compassion for an animal. Replacing the empathy you should have for human beings for empathy for a mere animal is the means to justify a total lack of human heartedness. Those who force taxpayers to fund the systematic killing of human beings, are themselves anti life, lack compassion, empathy and human heartedness… and yet cherish their own lives, are by definition bad people… and neither deserve our votes nor their positions as leaders.


John Pepin

The Addiction to Government Spending

Thursday, July 9th, 2015

Dear Friends,

It seems to me, a heroin addict will not willingly stop taking heroin, until he or she reaches rock bottom. It is a matter of human nature. When someone is addicted to something, no matter what it is, the craving is stronger than the will. We might know in our hearts we should stop, we might understand with our minds that the addiction is killing us, but as the Greek referendum shows, most cannot fight their own cravings. The will is weaker than the desire. It has been said that our intellect is like a rider, and our emotions are like an elephant, the rider has some control over the elephant, but if the elephant desires to go one way, no matter what the rider does they cannot force the elephant to change direction. Moreover, our logic can desire to get something done, but the power to do it lay in the elephant it is riding. As to Greece, they are addicted to government spending, they feel it’s cancer spreading through the body economic, they understand it is killing their wealth and hopes, but they just cannot give it up. The example of Greece is one everyone should heed.

Government spending is like a drug, it seems harmless at first, it makes life seem better and once started it quickly becomes a habit. Those who become dependent on it, government employees, people on the dole, rent seekers, bureaucrats, cronies and oligarchs… realize their lifestyle would come to a crashing halt if the government was to cut spending. Moreover, government spending must be increased in order to get the same results. Eventually, like a drug destroys a human being, the addiction to government spending must destroy a nation’s economy.

Raising taxes to “solve” the spending problem is like increasing the dosage of heroin. It is always much easier to raise the dosage then to quit the drug. Ask any drug counselor and she will tell you the solution to a drug problem is not to increase the dosage, or the availability of it, the only solution is to quit cold turkey. That solution is never acceptable to those in power who are both pushers and addicts. To them, the solution seems obvious, take more money to plug the deficit the addiction to spending creates. We all know however, raising taxes never result in a plugged deficit, that “solution” is the path to self destruction.

Like a drug addiction, lowering the intake, or in the case of government spending, does nothing to stop the addiction, it only makes the cravings harder to resist. If small measures are taken to cut spending, say, cut funding for science research, is like an alcoholic changing to drinking only wine. It does nothing to stem the addiction but it gives the addict an excuse to keep the addiction going. Small cuts in peripheral spending are only ways to absolve themselves.

The addict will rationalize their addiction by saying she had a bad upbringing, he lives in poverty and the world is too unkind. In the same way, governments, and the people who are addicted to government spending, rationalize their addiction by claiming they are “helping the downtrodden,” the poor are incapable of surviving without a handout, how can you begrudge a bureaucrat a good salary, if you are against their addiction it shows you are a hateful person… The rationalizations are a numerous as grains of sand on a beach and just as abrasive to the body politic as sand is in a car’s engine.

Every drug counselor will tell you an addiction to drugs makes the person do things she would otherwise never do. Up to and including prostituting herself to get more heroin. Government is no different, that addiction to government spending creates such a strong incentive to corruption cannot be denied, but the addict will deny it to their death bed. A government that is addicted to spending cannot control themselves, like a little girl who must have Oxycontin, else she feels her bones are breaking, and will do anything to get it. They both justify their corruption to themselves… because they have to.

Once a people have become addicted to corrupt government spending and living off the work of others, even if they have eschewed that lifestyle for a long time, once it is started again, they go back to the level of addiction they had in the past. Like an alcoholic, if he is on the wagon for ten years, then takes one drink, he takes up where they left off and go back to being a raging alcoholic. That is why so many once great peoples and nations never seem to be able to get back to being great. The addiction to out of control government spending is too great for their will’s to overcome. Examples are legion, Greece, the font of democracy, is just one.

The best policy, like heroin, is to never open that door to start with. Keep spending and the size of government as small as possible, limit the role and scope of government to standards, and keep government from creating regulations, set strict limits on the level of taxation and back them up with real penalties for a legislature, executive or judiciary that violets them. Force government to avoid taking that first puff from the crack pipe, and you will go a long way to protect you nation and people from that terrible addiction, and addiction that must end in ruination. All spending however, even limited spending, is an incentive for more, and so all governments must eventually become addicts. It is the nature of humanity to be thus.

That government spending is like a drug is obvious, once you think about it for even a moment, but those who are addicted, like a heroin addict, will argue they are not addicts and become enraged at the mere mention of quitting. Cutting spending a tiny fraction is only a rationalization, it does nothing to stop the addiction, but only makes the addict believe he can control it. The reasons for government spending are innumerable, just like the reasons a heroin addict has to rationalize their addiction, but in the end are mere sophistry. Sadly, once a great nation has become addicted to government spending, that nation and people will always be addicted, no matter how long they have been on the wagon. The only way to stop an addiction from ruining a human life is to stop cold turkey, the only way for a government to really solve the economic problems that an addiction to government spending creates, is to cut government to the bone. Unfortunately, no government once addicted, will do that until the economy comes crashing down. Like Argentina, once they get back on their feet, they put the needle back in their arm the first chance they get.


John Pepin

Billion Dollar Business Idea

Thursday, May 28th, 2015

Dear Friends,

It seems to me, a smart business idea that could net someone millions, and perhaps billions, is a website that reads and posts a simple to read synopsis of every shareholder’s report, briefly describing any changes the board wants to make, the likely consequences to the company and profits short and long term of those changes, an easy to read and understand report on any election to the board of trustees regarding their background, philosophy of corporate governance and work history, those synopsis and reports would be written for every firm with over one hundred million in gross revenue, and for a nominal fee that synopsis could be read by any shareholder of those companies. Companies that are ethical would offer to pay for the service for their shareholders. To get that done, such a company needs to become well known, create simple to read, correct and understandable reports and synopsis, as well as the intellectual capital to make it work. The potential earnings of such a company are staggering.

If there was such a company it could be a paradigm shift in the principle agent relationship. Today the agents have all the power. They send shareholders a several hundred page document that we are supposed to read and understand, that is in arcane language, redundant and actually says nothing of any import pertaining to the question they want us to vote on. That paradigm has created a lop sided power relationship between the principles and agents. That lop sided power in the relationship has allowed many companies to be run against the shareholder’s interests and have enabled senior management to get an out sized portion of the profits. I mean really, what employee is worth tens of millions of dollars, while running a company into the ground?

Empowering the principles to over see the agents can only lead to protecting the principle’s interest and limit the power of the agents to abuse their position. The power differential in the principle agent relationship has been used for over a century to enrich the senior management at cost to the shareholders and customers. Examples abound where shareholder profits and wealth have been undermined by management. One famous case was when J D Rockefeller bought an iron company, converted it into a publicly traded company, sold the shares for double what he paid, and remained as the CEO, reaping even more profit at the expense of the shareholder chumps.

Such a rebalancing of the principle agent relationship would create better run companies that would have a better relationship with their customers. Everyone is self interested, which is to say we all seek to maximize our returns on our investments. Economists call human beings rational maximizers. Clearly, since we are all self interested, if given actionable knowledge, we would seek to increase the longevity of our assets, seek long term profits instead of short term gain, provide excellent quality service and products to our customers while ensuring the company’s business model is consistent with the times. In short, instead of our agents working under pernicious incentives, we could return the entrepreneurial ethos to businesses.

If the principle’s interests are protected and the companies themselves are better run, the macro economy will improve, by potentially starting a new wave of Schumptarian economic expansion. Schumpeter coined the term, “Creative Destruction,” to explain the macro business cycle. In it, he posited… a new idea that improves efficiency in management, production or product, starts the business cycle. In the creative part of the cycle, as the new idea is implemented, the macro economy grows at a rapid pace. Once the idea is mostly implemented and the gains have been mined out, the old firms that have become outdated go belly up, ushering in the destruction portion of the business cycle, (recession). The recession destroys inefficient firms, freeing up capital, space and equipment for the next entrepreneur to begin the cycle again.

When a new firm is started, the more disruption it creates the more profit there is to be had, especially in the financial services sphere, where the sector is awash with other people’s money. As in any innovative idea that is disruptive, starting a business that reads and produces synopsis of every firm’s shareholder reports, board of trustee elections and board of trustee requests, would be a sea change in the way shareholders get information about the firms they own, by leveling the information landscape. In and of itself such a firm would start the creative cycle. Such a firm would need a great deal of startup capital to hire the necessary lawyers, MBAs and knowledge base to make such reports, and do it inside the regulatory framework that has been set up by the agents to protect their interests, or to change the regulatory environment if needed. The initial cost would be high, but the profit over the long term, the benefit to shareholders and the economy at large, would be tremendous.


John Pepin

The Fear of Our Own Imagination

Wednesday, May 13th, 2015

Dear Friends,

It seems to me, I have heard the argument that religion is the fear of Man’s imagination, if that argument has any merit at all, those who make it, should apply it to Anthropogenic climate change… because it fits far better. How many millions of dollars, Euros and Rubles each year go to investigate the projected effects of anthropogenic climate change, and in what universe does any flood of money not generate a huge incentive to promote the agenda? The government taxes us, they give some of the money to “scientists” to make dire predictions on what will happen, if they are not given dictatorial powers to stem Anthropogenic climate change. They gave up on global warming because it is becoming ever more clear the globe isn’t heating, just like they gave up on the coming ice age in the 1970’s, now it is anthropogenic climate change… because, they don’t know if the planet has a fever or is going hypothermic, nor do they know the reason it is, the one thing they do know for certain is… that you are causing it, and you need to give them absolute arbitrary power over you, to stop you, or else you might someday suffer from the ills the government paid people to predict, if the scientists that do the predicting ever break their perfect score of 100% failure.

Pick up any science based magazine and it cannot but stand out to you the amount of stories on climate change. Even in magazines on astronomy, where you wouldn’t expect Earth news, you will regularly have stories on climate change. Each of those stories is based on a research grant by either a public or private institution, costing millions of dollars and based on other research other scientists have done in those same institution’s behalf. If any magazine you pick up has that many articles on climate change then there is a tsunami of funding going into that research.

Whenever there is easy money to be had, especially where that money comes from government and is considered “free money,” people pile in to get their share of that free money. It is a quality of human beings that makes it so. With a pathetic job market for people with college education, and the huge debt load that education continues to cost them, the incentive to prove climate change is human caused so the agenda can move forward becomes an offer they can’t refuse. They get good pay to do research to prove climate change is real, it will be dire if the predictions come true or to direct attention to the fact it is a hoax to begin with.

The climate change hoax was proven a hoax when the IPCC emails became public where the IPCC discussed how to fudge facts, temps and sway public opinion, yes, the climate change alarmists would have you forget that little episode. Yet it remains in the public record. It takes a special kind of gullible, to remain gullible in the face of direct admissions of the hoax, by the hoaxers themselves. Those college educated people without jobs, who make up the unemployed faction of the new class, are just that gullible. Instead of thinking for themselves and looking at real history, they are so indoctrinated that socialism even dystopian socialism is an advancement over flawed capitalism, that they eat up anything those they consider authorities expel and give them.

A market economy’s main function is to improve access to, efficient use of and leverage to the service of humanity, energy. Almost any innovation in production, organization or efficiency follow this paradigm. In some way, if they are successful, they improve access to energy, the efficient use of energy, or to use energy to give people superhuman strength. Another attribute of a market economy is that it is a complex system. A complex system is adaptable. That means a market economy will adapt to changes in the availability of energy, unless the availability is controlled by a cartel or government entity.

Having control of energy is like having control of the throttle in a machine. He who controls the throttle of a machine controls how fast it spins and how much work it can do. The one dimensional thinkers who make up the new class believe that is how their absolute arbitrary control of energy would work. Along with the arbitrary rule over every other aspect of our lives, for our own good of course, would enable them to implement the socialist utopia, or dystopia, since the mechanism of humanity is a complex system and not a machine, control of which must lead to inefficiencies resulting in general poverty.


John Pepin

A Corrupt People can Never be Wealthy

Wednesday, April 29th, 2015

Dear Friends,

It seems to me, when the people of a nation become so corrupt their word is no more valuable than a turd, business cannot be done. When business cannot be done the economy collapses like a popped balloon. Any economy requires, as a prerequisite, that people be trustworthy, even a socialist economy. In a socialist country, or a country turning to socialism, the morality of the people is eroded until they become utter reprobates like their leaders, and is why socialism fails every time it is tried. Which brings us to the thrust of this article, that one of the major problems in the US economy, (and economies around the world), is that people have become so immoral, such reprobates, lazy and liars that even if the government got out of the way, the economy wouldn’t start growing again until the people got back a tiny bit of their morality and human heartedness.

The proliferation of lawyers in a nation is not a sign an economy is mature but that the people cannot be trusted. Attorneys themselves are largely to blame since the incentive for them is to break contracts, stab others in the back, create the conditions where no one can be taken at their word, and the moral get molested by the immoral, calling it serving their client’s needs. The collapse of integrity is a windfall for lawyers and so they push it. Today you can’t buy a cup of coffee unless there is legal paperwork in triplicate and signed by a third party… explaining the dangers of hot coffee, the terms and conditions of the sale, refund policy, ingredients, limited liability, potential health concerns from drinking coffee to access, and the specifications of the cup.

As people get screwed over by unscrupulous connivers they will increasingly turn to government to protect them. The government is always too happy to become more powerful, and never gives up a whit of power, so a corrupt people wratchet their government to despotism. More regulation makes it harder for a person to make money legally, and so more will turn to stealing, cheating and conniving to get ahead. Why work when that option is all but closed… and business is done by larceny anyway? In such a country the government will take advantage of the people, the strong will abuse the weak and the family will turn against itself.

Of course corruption starts at the top and flows down the social ladder like sewage. The leaders are never held to the same standards as everyone else, that has always been the case everywhere and at all times, which shows there has never been a standard but only arbitrary rule. Human history is nothing but a list of corrupt kings, emperors and Presidents. The more corrupt and evil the larger their name is in history texts. I have maintained for years that it is impossible to live in a cesspool without smelling like it. The very few people who have held positions of power, who were not so utterly corrupt they stank like a cesspit, have pushed against this paradigm of arbitrary rule. Most of them were murdered as reward for their singular service to humanity.

In the few times and places where the people have not been fully corrupted by their elites, those nations in those times have seen unbounded prosperity, social harmony and civil justice. When a man or woman holds themselves to their handshake, profit is based on value, not getting a line in a contract past an unsuspecting chump. When value is the basis of profit everyone profits. Those who provide the most value, profit the most, simply by being honest because honesty is value. The butcher gets money to provide for his family, the buyer gets meat for her table…

The market system’s superiority is based on the fact that value is traded not goods and services. Goods and services are the currency but value is what is actually traded. When people get value for their money both parties win. When both parties to a transaction win the economy of that nation is improved a little bit. Magnify both parties winning, over the tens of thousands of transactions a day in a populous country, and the economy is improved drastically every hour of every day.

Honest people can negotiate hard terms, but when the negotiations are done, they both stick to the terms they negotiated, the conniver, despot and confidence man trades in lies however. Those who trade in lies, not value, create the conditions where people will turn to government and lawyers to protect them from their own butcher, car salesman, Realtor and haberdasher. The more a people must turn to those in power to protect themselves, the more corrupt society will become, which in turn creates more corruption creating a feedback loop that can only end in despotism, poverty and endemic violence.

Look around the world, those places that are hell holes are all characterized by corrupt governments, corrupt people and corrupt courts. See for yourself, where the government is despotic, where the people are connivers, where the courts only enforce arbitrary power, aren’t they always unsafe, poor, and prone to social upheavals? Then ask yourself, what nation on this planet would you want to raise your children, one where the people are corrupt, the government is tyrannical and the courts serve the powerful… or one where the people can be trusted, the government is limited and the courts serve justice? You can make a small difference, be honest, trade in value and hold yourself to the same, or better yet, a higher standard than you do others. Lead by example.


John Pepin

The 100 Trillion Dollar Bond Bubble

Wednesday, March 25th, 2015

Dear Friends,

It seems to me, whenever a bubble is expanding, articles are written by the smartest people in the room, excoriating those who are “loosing out” on the huge profits. The more the bubble grows the more shrill those pundits become. This is because a bubble is in reality a trick of perception. That is why so many are caught in them. We see easy money and the lure is too much for us to withstand, we are cajoled by those who are wallowing in money they “made” from the bubble, and we become jealous, moreover we convince ourselves that the bubble will inflate forever, and so we jump in. The result? People loose their hard earned savings, nations become bankrupt, wars are started and governments fall. History is replete with stories of epic bubbles and the chaos they wrought on humanity, yet the frequency and size of bubbles grows with every passing year. Your savings, your national budget and your very life is dependent upon you and your government learning this lesson, a leasson that has been taught so many times in the past.

Tzu Ssu said, “Everyone says “I Know” but they are driven into nets, caught in traps, fall into pitfalls, and not one knows how to avoid this…” Bubbles are a perfect example of what the sage meant in his “Mean in action.” Seeking great profits for little or no effort, certainly, by any measure, is not the mean in action! To follow the crowd into a trap is not the mean nor is running off a cliff. The wise avoid danger when a safe path is before them but a fool will jump at the chance to step into a bear trap. It is a sad quality of humanity that we are so. But that it is a quality of humanity doesn’t mean it must always be so. Tzu Ssu also said, “He [the enlightened man] preserves an easy mind as he awaits the will of heaven, (in contrast to) the man who is not true, who walks in perilous paths and hopes for good luck.”

When a pundit brings up the hundreds of trillion dollar bond bubble, other pundits will say, “I know,” but then argue how bonds are the safest investment. They will harangue others who have stayed out as loosing their client’s money and not taking advantage of opportunity. The harassment ratchets up if a bubble doesn’t burst when someone predicts it will, convincing the rest of the herd to believe it will expand forever. We convince ourselves we are missing a great opportunity and that if we stay out it will pass us by. Opportunity only knocks once you know. But is that knocking really opportunity… or misfortune?

The tulip bubble was a classic example. As the price of tulip bulbs grew so did everyone’s interest in them. The Dutch could be forgiven since bubbles were a relatively new economic phenomenon. They poured the national treasure into more and more exotic tulip bulbs. The more colorful and extreme the better. The bubble grew to encompass almost all the wealth of the people and royalty. The bubble expanded for quite a while, creating untold wealth… until it was discovered that the striations and many of the exotic qualities of many of the bulbs, was due to a virus and not genetics! Then the bottom fell out of the tulip bulb bubble. Overnight the wealth of Holland was lost. It took decades to rebuilt even a portion of what was lost.

How many nations on Earth are issuing more debt, debt that is rated AA or better, who are actually insolvent? Greece is rated junk bond status but still borrows money at absurdly low interest. The US is insolvent by many standards but pays essentially a zero interest rate, and some European countries are paying negative interest! Banks are required by law, to hold government debt, which lowers the rate of interest a government pays for racking up debt and creates a false shortage of bonds. Even as governments pile debt upon debt, central banks print money and hand it to banks to buy that debt. The machine works day and night inflating the bond bubble.

I am not saying the bond bubble will burst tomorrow, or even next year, I strongly suspect it will be held together, by central banks and other interested actors, until at least 2017 for political considerations. But, by their nature, bubbles are unpredictable. It could burst tomorrow or next year. There is really no knowing what will prick the bubble and cause it to burst, with all the negative consequences that humanity has suffered in the past. This bubble however dwarfs any that have preceded it. The collapse of the big banks that required a bailout for them, was fueled by a bubble created by central bank policies, and this bond bubble is only different in orders of magnitude. I know, I know, I am missing out on a great opportunity… to get driven into a net, caught in a trap, fall in a pitfall…


John Pepin

A Platform of Liberty is Unthinkable to the Elite

Monday, March 23rd, 2015

Dear Friends,

It seems to me, if a political party actually seeks liberty, campaigning on a platform of slavery is probably not a good idea. Of course they don’t call it slavery overtly. Those who, like Philistus, favor arbitrary rule, always couch their rhetoric in flowery phrases and spurious arguments. None of us knowingly seeks to be a slave, but many if not most, seek to be cared for, like children… or slaves. Yet a large percent of the population know the strings that are attached to government largess and refuse to be fooled. Those egoists who favor arbitrary power, their arbitrary power, pervert all political systems so there is no real choice. They claim the choice is between Marxism and Fascism, liberty is never a option. They play on the selfish wants of ignorant people to trick them into voting for their oppressors. In that way, the political elite have moved nations from liberty to tyranny, helped and aided by the very people to be subjugated!

Those who seek to be fed, clothed and housed at another’s expense, understand on some level they are giving up sovereignty for it. In wanting to be treated as a child by government one becomes childlike. A child is fed, clothed, and housed, but has no say in their lives. A child is told, and forced if necessary, to do what the parent, or government elite, tell them to. But, while a parent loves and nurtures their own child, holding the child’s interests above their own, government sees their children, the people, as mere tools to their ends, the welfare of any one person is irrelevant because there are plenty more if a few die or are broken.

A part of the population, rational maximizers,  understand the reality that liberty is incompatible with government coddling. Since we are given a false choice, either Marxism or Fascism, those who understand that it is a false choice will drop out of a corrupt system, and stop voting. If there is only the choice of this dictator or that despot, there is no real choice. To vote for the one because they will manage the leviathan better is no choice if one wants liberty. Only a politician who stands for liberty will be honored with the vote of an adult. A child however, will vote for the mommy or daddy who offers the most comfort, for the least effort.

In the United States this has been the paradigm for generations. The democrats offer more government largess, and the republicans offer better management of the tyranny the democrats create. Romney care for example, worked better than Obama care, but they are both a means to slavery! That the one tyrant is better at managing the tyranny than the one who builds it, is an anathema to those of us who seek liberty, not slavery. This is why such a pathetically small percentage of the population actually cast ballots. In the 2010 US election a paltry 37% of the eligible population voted! That means, Obama was elected by less than 20% of the people! 63% of the people didn’t think they had any real choice.

Yet the republicans continue to go for the 2-8% of people in the so called “middle.” They see that as a more viable strategy, than seeking the vote of the 63%, that are so disgusted with the false choice, they sit out elections. Even someone schooled by Common Core understands, 63% of a population is nearly 8 times larger than 8%, an order of magnitude larger. Yet republicans don’t seem to be able to do the math. That 60% of people who don’t vote, aren’t seeking more slavery, to be surveilled more or to be coddled, those individuals seek liberty. It is only by offering liberty, like Ronald Reagan did, that any politician can get their vote. By eschewing those votes, the actions of the republicans as well as the democrats, belie their intentions. Democrats want arbitrary power and the republicans think they can manage that arbitrary power better.

This same paradigm works in every nation on Earth. Why do you suppose Greece is in the predicament it is? Is it because the evil big banks have stolen from the Greek people? Of course not. The Greek government has willingly taken money from those evil big banks to feed, clothe and house children, who just happen to be over 18 years old. Do you suppose Italy’s problem is the mammoth debt… or the policies that led to that debt? Those children, who have been fed, clothed and housed, when faced with the removal of that largess, like children throw a temper tantrum and riot. Those who have got the benefit of crony capitalism, will not budge, as those who play Bacci ball on the beach are irate their sugar daddy might not be able to perpetually fund their “way of life.”

The real economy of those states that coddle the people is inevitably ruined. Crony capitalism is as corrosive of an economy as sulfuric acid is to aluminum. Welfare burns the work ethic from a people as effectively as water does lithium. Both together utterly destroy a country’s economy. Since there are no jobs for those children who have been coddled by government to go to, and they have been rendered unable to participate in the economy anyway, they have no choice but to riot in the streets. When the party comes crashing down, as it must eventually, there is only one choice, outright tyranny, to quell popular distemper. Which is the ultimate goal anyway showing why political parties don’t run on a platform of liberty in the first place.


John Pepin

Stumbling Into a World War

Monday, February 23rd, 2015

Dear Friends,

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

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

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

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

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

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

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

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

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


John Pepin

Economic Cancer

Thursday, January 22nd, 2015

Dear Friends,

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

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

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

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

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

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


John Pepin