Tyranny and so called Freedom Fighters

Dear Friends,

It seems to me, to believe that because a group of people are fighting to overthrow a tyrant, they must want to establish a liberal democratic republic, is ignorant. History shows, more often than not, the group trying to overthrow a dictator… simply want to be the dictator. To immediately come to the conclusion, that anyone who fights against a tyrant is a freedom fighter, is at best, merely projection on the part of the speaker. To constantly reach the wrong conclusion, about the motivations of those that rise up to take power, shows ignorance of human nature, or some form of duplicity. The last thing we need in our media, leaders and intelligentsia is more fraudulence. The World is too full of it now.

This is not a new phenomenon. After WWII many Americans, especially those in the halls of academia, were ecstatic that Chiang Kai Shek was overthrown by Mao. They proclaimed that a new day in China was dawning. Indeed it was. Mao ushered in a period of repression, famine, and terror that has few, if any, precedents in human history. His purges murdered millions as did his fabricated political famines. Now the heirs to Mao foist a one child policy on the Chinese people. A policy that has led to the forced abortions of 400 million babies. All while Chiang Kai Shek escaped to Taiwan and established a liberal democracy. The Taiwan republic is a virtual copy of the American Constitutional republican system. The Taiwanese people live under limited government.

When the uprisings in the Arab World started, Obama likened the guy who set himself on fire in Tunisia, to Rosa Parks. Obama supported the nascent rebellions wholeheartedly. (Except the one in Iran). The people went into the streets and protested their oppressors. When that didn’t work in Libya, Obama and the leaders of the European Union, backed up the armed rebellion with air power. Three tyrants were overthrown and democratic elections were implemented. As we all know now, there wasn’t liberal republics established… instead Islamofascists came to power. The Christian communities in those countries are now in great peril as is the Egyptian Israeli peace accord. History repeats again.

When Lenin usurped power he was hailed a man of the people by Western intellectuals. The encyclopedias were filled with glowing stories about the freedom and high standard of living in the USSR. The rights and privileges afforded the people under the Soviet Constitution were expounded on incessantly. The unbiased media proclaimed that the Soviet model was the wave of the future, and that the US should give up our outmoded Constitution, a charter of negative liberties, and replace it with a more forward thinking document… like the Soviet one. Of course, now that the history is open for anyone to see, it is clear that the glowing editorials and encyclopedia entries, were foolishness at best and complicit at worst. Tens of millions murdered in the name of politics, Industrialized famine, and absolute repression were the norms in the former USSR.

To conclude, as a knee jerk reaction, that everyone who fights a tyrant is a freedom fighter, is to show absolute ignorance of history and the human condition. Such ignorance is not becoming of a leader. It demonstrates a lack of wisdom of a leader who is so easily swayed by pretty baubles. People who have such leaders are at sea, with a fool at the rudder… subject to any shoal that comes along.

Unfortunately we are burdened with such leaders in the West. They call everyone who rises up against a dictator, a freedom fighter, and when their predictions are proven wrong, they ignore the facts and make the same mistake again. Look at their reaction to the uprisings in Syria.

The defenders of our Constitution, opine how the “new democracies” should ignore the American Constitutional model, and instead, take the path of China or South Africa. They love the fact that in China only one person makes all the decisions. How efficient they exclaim! Look at the glistening airports and high speed rail! Behold the rapid economic growth of the State controlled economy. Look at the efficiency of the socialist model… Forget the history of it… or the reality. The ignorance, or fraudulence, of our leaders is boundless! The unbiased media remain silent about history, and reality… hoping we will forget the past and present folly of our leaders. Yet we forget at our peril.

To call our leaders fools is to be generous to them. For, if they are not fools, they are duplicitous and cannot be trusted. If they, in fact, seek more violence, want, and repression in the World, then they are evil. To be evil disqualifies anyone from being a leader of men. It is self evident in that such a leader will only visit calamity on his or her people… and the World. God knows, we have had enough of that.

Sincerely,

John Pepin

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Lies, Politicians and Self Interest

Dear Friends,

It seems to me that everybody lies. Some people lie occasionally to spare the feelings of others, some lie to make themselves seem bigger than they are, some folks lie when the truth would serve them better… but the worst are people who lie to deceive others into doing damage to their self interests. Con men, scammers and politicians fall into this category. These are the people who pose the greatest threat to humanity and our future.

Lying to get others to support your self interests, at the cost to the self interests of others, is the currency of politicians who seek to be tyrants. In this the quintessential political liars are Islamofascists. They convince a young person, who is essentially good, looking to win favor from God, that the way to heaven is to commit multiple mortal sins, in God’s name. They lie to get these innocents to spend their lives and souls to propel the islamofascists into greater and greater political power, which he will then use to oppress others. The victims of the lies, are the suicide bombers who give up their immortal souls, so someone else can have worldly power over others, as well as the bombing victims themselves. Temporal power the islamofascist will misuse, as a means of satisfying their avarice, sexual lust, and their thirst for power over others.

The Islamofascists is not the only politician, who uses lies to get others to damage their self interest, to enhance the interests of the liar. We see this played out by Marxists throughout the history of communism and we also see this paradigm in play today around the World by various political leaders.

When a person or political party is caught lying once, it is generally forgiven, due to the fact it is human nature to occasionally lie. When a person or party lies constantly, in ever more preposterous ways, the wise person disregards everything the proven liar says. We see this in polls regarding the trust people in America have for those “journalists” who call themselves unbiased. They have so destroyed their credibility, that more people believe that aliens have landed on Earth, or that America never landed on the moon, than believe the unbiased media today. Their constant lying by, half truths, omissions and utter fabrications have destroyed their credibility.

In the US Presidential race we see this same thing happening. The Obama administration and their allies are engaging in ever more absurd lies to discredit Romney. One day Romney is a bully, the next he is a wimp, a week later he doesn’t pay taxes and now he is a murderer. The lies become more and more ludicrous every day. The unbiased press pick up the lies and run with them… further discrediting their brands. The US voter will, sooner or later, be so disgusted that we will exclaim our utter revulsion at the constant lies. As the lies get more shrill and insane the American people, and people around the World, will wake up to who and what those that make such absurd claims… really are and what they truly seek.

It is only common sense, that we do not listen to the incorrigible liar, especially if he is a politician. Because when a politician lies as a matter of course it is always because he has malevolent motives. Maybe to hide some defect in their character, perhaps to misdirect us from the results of their policies, or most dangerously, it is to trick us into doing profound damage to our self interests. No matter the reason, we can reliably tell that when a politician or political party engage in such tactics, they have put their own self interests above ours and the nation as a whole. Wise people protect their self interests, and don’t fall into traps set by disingenuous politicians, like the Islamofascists and others with similar agendas. But, there will always be a segment of the population that believe George Bush dynamited the levees in New Orleans and personally demolished the World trade center. Those people are beyond hope and willingly strap on the explosive vest, walk into a school… and trigger it. It is up to the rest of us to see that they don’t.

Sincerely,

John Pepin

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Hate, Envy and Intolerance

Dear Friends,

It seems to me, the progressive’s passion for power has reduced them to embracing hate, intolerance and envy, as the entirety of their being. This is the preferred bait the progressives, in both the democrat and republican parties, use to ensnare us. Most people don’t think these are very attractive attributes, but the American left is so full of anger and loathing, they cannot see themselves with any perspective whatsoever. The application of hate to politics, while eschewing love and tolerance, and calling the tolerant, hatemongers, is the highest form of hypocrisy. This bodes poorly for the US and the World if the hate filled, intolerant and envious progressives hold power much longer.

Intolerance was on display in Chick Fil A. The progressives can not tolerate a different perspective. When the owner of the franchise said he is in favor of traditional marriage the progressives went into an intolerant hate filled rage. To accept traditional marriage is a reasonable stance to take but is unacceptable to the progressive politicians and media. They called for boycotts of the stores and their rhetoric became as vitriolic as it was irrational. Their intolerance of other points of view oozed to the surface like algal slime from the bottom of an anaerobic pond.

The American left show their hatred for the American Constitution daily. From Obama claiming the Constitution is flawed because it is a charter of negative liberties, to Diane Feinstein’s assertion that Our Constitution gives government unlimited power, they show their loathing for Our Constitution in their words, actions and rhetoric. But their hate doesn’t stop there.

The American left despises Christianity, limited government, freedom to become wealthy, unborn children, traditional marriage, capitalism, SUVs, freedom of thought, freedom of moral expression, the list goes on and on. They are happy to describe their hatred for you… just ask. What is it about a cross on a hill, the progressives find so obnoxious that they spend so much time, money and political capital eliminating? If you are that intolerant of a silent reminder, far from the beaten path, to those that died in the First World War, protecting your right to say and believe what you want, maybe you should do a little introspection and find out why you are so filled with hate and intolerance.

Envy is a powerful emotion and it is used daily by the progressives. Their constant drumbeat of class warfare shows, not only their attachment to envy, but also highlights their intolerance and hate. The Elite progressives are universally richer than rich, but they vilify wealth, as though every wealthy person got his or her money from genetics, political corruption or gambling/prostitution… like they did. They call people who have met some need of their customers and society evil and call for confiscatory tax rates be applied to others. But… when a rich guy stands in front of me, and claims he wants to hurt the rich, I know I am being lied to. To do that he or she must injure themselves and they are far too selfish to ever do that.

They achieve the highest reaches of insanity when they make baseless attacks on Romney’s taxes. Harry Reid made the libelous statement on the floor of the Senate that Romney hadn’t paid any taxes for ten years! This kind of personal baseless attack, is the epitome of hatred… and envy. Reid sought, by his libelous attack, to make the American people envious and hate Romney… like Reid does. But the truth is, Romney did something productive to get his wealth, Reid made his fortune from political corruption, gambling and prostitution… like the mafia. If anyone should be wary of casting dispersions it should be Harry Reid. They claim it is openness that the progressives seek, if that is so, then what about Obama’s college records? Who paid for those expensive universities? What were the grades of the smartest man in history? But, it is plain that openness is not what the left seeks, they seek hatred of their foes, envy of the wealth of producers, and entrenched intolerance of any view they do not hold.

These are just a very few examples of how the American left show their profound hate, intolerance and envy. They attack that which has made the US the most productive and wealthy nation in World history. The human race is far better off that free market capitalism has been allowed to flourish here. They would allow their hatred to get in the way of future human progress, in fact, the progressives actually seek to return us to the days of serfdom. They seek the destruction of the freedoms the US Constitution provide, not only to American citizens, but by providing an example to the World, humanity as a whole. The progressives intolerance displays the true weakness of their arguments. Hatred, intolerance and envy are powerful emotions and have the ability to motivate mankind to do profound damage to our self interests. The real question is, will we take the bait and be fried for supper, or, being rational maximizers, will we spit out the hook, and keep swimming in the waters of freedom for a little longer? I guess it depends if we have love and tolerance in our hearts, or seethe with hate, envy and intolerance like them.

Sincerely,

John Pepin

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Gun Control

Dear Friends,

It seems to me, those who call for gun control, have very different intentions than they claim. They understand that the very word, gun, has emotional meaning to most people. Guns have been glamorized in movies, demonized in the unbiased media and they have been used by the most violent regimes in human history, to visit the worst atrocities on mankind yet. Guns emotional impact is the theme that rhetoricians use, to get us to fall for their sophistry. The fact that guns are legalized in the US Constitution, is a matter of great concern to those who wish to overturn that Constitution, for a new paradigm of government… arbitrary rule. That guns must be eliminated from our society, as a precondition of their utopian world view, and that they use spurious arguments based on emotion… should be a matter of great concern to all of us.

Guns are simply tools. They are used for hunting wildlife, for target shooting, as a means of self defense, in military combat, and they are used to commit crimes. This tool, we call a gun, is a very useful tool in the hands of righteous people, and a tool of villainy in the hands of sociopaths. This last use is the one the banners of guns use, as an emotional wedge, to pry guns from the hands of the just.

The people who wish to disarm the general public, use the rhetorical tool of taking an isolated incident, and acting as if it were a regular occurrence. The Columbine shooting for instance. Whenever we have a terrible act of violence, by a sociopath against innocent people, the call goes out to ban this or that gun, or gun accessory. The fear mongers claim that if only guns were harder to get this wouldn’t happen. Yet when Australia banned guns… gun violence went up drastically.

The real question is not, why did this happen, but, why doesn’t this happen more often? If, as they claim, the accessibility of guns makes people go shoot up random strangers, and given the ubiquitous availability of guns in the US, then why don’t shootings like Aurora Colorado happen every day? If their logic were true… we should be reading about a random act of violence several times a day. The fact that this isn’t so should give us pause as to the veracity of their claim.

In fact, there is empirical evidence that where guns are the most controlled there is the most gun violence. This seemingly counter intuitive situation points to a fact of human nature. Those who commit violent acts, are more often than not, cowards. They only use violence when they have a monopoly on it. They will not use violence when there is a very real possibility of being harmed in the process. But, where guns are banned… the criminal’s monopoly on violence is assured. That is why shooters like James Holmes wore a bullet proof vest. Because he is a sociopathic coward; a poltroon of the highest order.

Those that seek to disarm the honest, claim that the Right to keep and bear arms is a dangerous right, and as such, it should be limited. But that is a very slippery slope to leap onto. If we accept the premise that if a Right is dangerous, it should be limited, then what about the right to free speech? Historically the Right to free speech is far more dangerous than the Right to own firearms.

Two examples should suffice to make the point. The first is the Communist Manifesto by Carl Marx and Fredrick Engels. This one small pamphlet has led to the deaths of hundreds of millions of people since it was written. The second example is Hitler’s Mein Kampf. This autobiography led to the Second World War and sixty million people dead. It is plain to anyone with open eyes, that the Right to free speech is far more dangerous, then the Right to keep and bear arms. To ban the one leads naturally to banning the other.

The banning of firearms in Germany under Adolph Hitler was instrumental in the murdering of six million Jews by Zyklon B in the death camps. The Nazis could not have murdered people on an industrial scale if those people were armed. Cowards only pick on people unable to defend themselves. Stalin also disarmed his people before he imposed political famine. Stalin’s famines starved to death millions of people in the former USSR. The Ukraine was the hardest hit, but famine was a favorite tool of Stalin, and his brothers in communism, to turn people away from God… and to arbitrary rule.

As we have shown, the arguments against the ownership of guns… are universally spurious. To knowingly make a specious argument, that will inevitably lead to the exact opposite result that you claim to want, is a purely malicious attempt to subvert the Rights of Man. That some people do this shows their motives are anything but sincere. We must ask ourselves, If they knowingly lie to us in this big thing… can we trust them in anything? The answer is absolutely no!

Sincerely,

John Pepin

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Politicians Playing Games With Our Economy

Dear Friends,

It seems to me that our economy is far too important to play games with. Economics is a powerful tool for the politician, to store up power and then to hold that power, making it a bauble too enchanting not to sport with. Not only our wealth is put at risk, when politicians toy with our economy, the future prosperity of our children is also threatened.

Most of the countries in the World today, who call themselves democracies, are actually representative republics. Those who are elected are put in place to represent the interests of the electorate. Unfortunately the politician who gains office, represents his or her own narrow interests, instead of the interests of the people who elected them. In economics this is called the “Principal Agent Dilemma.” The Principal Agent Dilemma is the result of human nature. Politicians, who are human beings and are subject to all the greed, hubris and fear, that all people are subject to, seek first of all, to amass power and then to hold onto that power.

When a politician sees an opportunity to gain power he or she takes it. That is why almost all politicians believe in gun control. It lowers the level of sovereignty of the individual and puts him or her more under the power of the State. No one believes gun control will solve the problems of violence in our society, because criminals will not give up their guns… only lawful citizens will. Lowering the power of the individual doesn’t solve what incentives cause. Politicians love distributive justice by political favor. Especially since it is the politicians who have the most political favor. Although they know that this form of distributive justice is the lease effective at growing an economy, it is their favorite form, because it amasses power for the politicians and lowers the power of the individual.

Amassing power is only one aspect of where the congenital nature of Man factors into politics. Power accumulated is useless if someone else wields it. The astute politician, not only seeks to raise all decision making to the government where they are the arbiters of who gets what, they must then hold power to have that say. Brinksmanship is the currency of perpetual power in the hands of the Elite. That this brinksmanship risks the people’s prosperity does not even enter the thought process of the politician… unless it threatens his or her power.

Distributive justice by political favor is a tool the Elite can use to close off those people who threaten the politician’s power. The example of Chick Fill a is instructive. The founder and owner made a statement of his deep and profound faith in Jesus Christ and his happiness in his marriage to only one woman… is obnoxious to certain politicians. As a result they are using the power of the State to keep Chick Fill a from opening new stores in Chicago… and I suspect, the friction to the expansion of Chick Fill a will be nation wide. There will be none opened in Vermont for example without millions of dollars spent on lawyers and a Supreme Court decision.

The so called fiscal cliff is another example of politicians playing games with our livelihood. They are not effected because they will continue getting rich, without having to meet anyone’s needs… but their own. The people who must meet the needs of their customers to make a living, Ala, “Adam Smith’s invisible hand,” will have their outlooks diminished profoundly. The democrats want to extend the “Bush tax cuts” only for people making less than an arbitrary number the politicians have conjured up to generate class warfare… and only be extended for one year for the rest of us. This is brinksmanship of the highest order. The extension will do nothing to address the uncertainty, it will punish small business by raising their taxes, and it is only a means to change appearances, not rectify problems.

The other aspect of the Fiscal cliff are the across the board government spending cuts that are included in the debt compromise. Lowering government spending, no matter the form, is terrifying to the Keynesian. Keynesian economics being a self serving theory for those that seek distributive justice by political favor. The demand side politician selfishly claims government is the engine of the economy, and it follows that, they will sound alarms at any and all cuts in government spending… (their power). Supply siders, or followers of the Austrian school started by Ludwig Von Mises, have a different view of the economy. We believe that private citizens are the source of economic growth, and government is, more often than not, in the way.

We are poorly served when our elected officials act in this way. As they continue in their quest to be the gate keepers… points of GDP growth are shaved off forever. The outlook for us and our children is lowered to pay for the politicians power. Even one point of growth carved from GDP every year, multiplies into a huge diminishment of our standard of living, getting redoubled over and over every year. Is this what we want from our leaders or should we demand something better? Maybe we are too asleep to even notice…

Sincerely,

John Pepin

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The Means to Tyranny

Dear Friends,

It seems to me, when you build a chair in a wood shop, it doesn’t immediately pop into existence, it must be planned, the wood cut, jointed, planed, sawn to size, fitted, assembled, glued, sanded and finally coated with an appropriate finish like polyurethane… the same thing can be said of converting a liberal, capitalist, culture, society and government, into an oppressive, socialist state. The state cannot change overnight unless there is a revolution. Where revolution is impossible, then it is necessary to take the long road to tyranny…. like building a chair.

In both processes there are steps that must be taken. To change a liberal state into an oppressive one, it is critical to change the definition of liberty to oppression… without the people knowing what you are doing. The means to this end is facilitated by control of the information infrastructure. This is the first step to the job. Once control of information is established, in the culture, society, schools and government, this power must be used to inculcate the new definitions, so much so, that they become ingrained in the people. We accept what we are immersed in, without challenge, because we give our surroundings no thought. If we live it, breathe it and hear nothing but it, it is our truth… even if it is fiction. Perception becomes reality.

Once good is called evil, and evil is called good, the would be tyrant is well on his way to molding society and culture closer to his desire. All the incentives in society must be negative and pernicious. Next the would be dictator needs to introduce this new ethos into the workings of government. Since liberal government usually has some controls, in the form of a legislating body and judicial body, they need to be perverted from their original mission, to the task of changing government, from an institution that protects the liberty and property of the people, into one that redistributes, the liberty and property of the people.

The next stage is to make the government the gatekeeper for all that is good. God must be erased as the source of human rights and replaced by government. Distributive justice by political favor must be installed in the people’s minds as the best and most just means to all that is good. Government can then dole out goods to those that are helpful and cut off those that are unhelpful. This makes compliance much easier later in the process.

Liberty has already been redefined by this stage, so the totalitarian simply needs to use some pretext to convolute the Constituted law, to meet his needs. If the legislative body is reluctant to drastically convert the public weal, then the judicial body can be used to do it, by fiat. Since the judicial has the last say in law, it can get away with usurping the power of the other branches of government, without the public lifting a brow. Anyone who complains will be vilified into submission by the information apparatus.

As society slips deeper and deeper into the morass of tyranny some will wake up. They need to be controlled and marginalized by the information apparatus such that the people consider the potential counter revolutionary a kook, a conspiracy theorist, a nut job. The informer can be denied basic goods and services, if that is insufficient, their careers can be destroyed, due to the governments gatekeeper status. If necessary… the provocateur can be charged with some made up crime. The information apparatus will swamp the people in propaganda, and the person who tries to wake up society to the pernicious means of the encroaching tyranny, will be neutralized.

At some point the economy will collapse, due to the burden government imposes on it, creating the perfect conditions for the final usurpation of power. The information apparatus can be marshaled to claim that the only way out is total government control of the economy. The people, who have been thoroughly indoctrinated in the philosophy of state-ism, will fall into line and the tyrant can step into his rightful place… as President for life. The people have become slaves to the state and the liberal, capitalist, free society has been changed to an oppressive, Marxist state, without a shot fired.

Not that anyone would do such a thing, they would be evil incarnate if they did.

Sincerely,

John Pepin

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Philosphies of Hate

Dear Friends,

It seems to me, that the elephant in the room no one is talking about, regarding the latest Colorado shooting, is the extreme level of violence coming out of the Wall Street protest movement. What is it about this movement that generates such hatred of our fellow man, that could push the unstable to kill so many people? How is it that people who engage in this protest have become so violent and blood thirsty? When has a philosophy led to such a disregard for the rights and humanity of others? These questions have great and profound impact on the future of the human race.

The Wall street protest movement has sparked phenomenal violence in our society. There have been horrendous attacks on the people of the United States by those engaged in it. Thank God most have been foiled. The examples are notable in both their callus disregard for human life and human suffering. The bridge bombers, the campaign headquarters bombers are two that immediately spring to mind. The Colorado shooting is just the latest. There have been hundreds of lesser attacks made on the people and the infrastructure of the US by people who subscribe to this philosophy.

History always has lessons that we, and especially the Elite, are loath to remember. The Wall Street protesters have much in common with other violent movements in the past. Some have led to the worst atrocities ever committed by a government on it’s people. The Nazi movement was just such an event. The National Socialists blamed all the problems of German society on Jewish bankers. The Marxist revolution in Russia is another example, of people vilifying the “rich,” despite the total lack of rich in Russia at the time. The French revolution was another example that was based on a totally callus disregard for the human species and Christianity. The list of atrocities would fill pages and pages, taking all the paper made in the World… for a decade.

These evil and violent movements have several things in common with the Wall Street movement. They all vilify a segment of society, they are all antisemitic, they all call for violent revolution, they all use violent rhetoric, they all dehumanize others and the human race, they all call for a super state, but most importantly they are all based on hatred. To have so much in common, with some of the most violent and hate filled people in history, should be a warning sign of the potential, now manifested, in the Wall Street protests. To utterly disregard the facts and history of these types of philosophies is malpractice of the Elite and the unbiased media.

The normal villain has already been chosen by the unbiased media… American’s access to guns. This is such a knee jerk reaction it has become trite. The Elite and the unbiased media all claim that the rights of the American people, must be diminished a bit, to prevent this type of atrocity from happening again. Of course nothing could be further from the truth. Empirically, we see that where guns are the least accessible, we have the most violence. Our inner cities are teeming with random violence. In Nigeria where guns are banned, thousands of Christians are killed every year, usually by barring the doors to a church and burning to death those inside. Switzerland requires every man to own a gun and they have unusually low levels of violence. Violence precedes guns and if guns go away it will continue unabated.

So we can see, if we open our eyes, that it is not guns that generate violence, in fact, the argument against guns is merely misdirection, it is the violent and dehumanizing ethos of the stateist that is the real culprit. The rhetoric and philosophy that claims that punishing another will make my life better is as pernicious as it is evil. As William James, (my favorite philosopher) said, Philosophies must be judged by their results… not their intentions. The results of the Wall Street protests are universally hate filled as are the intentions. Those that foist this malevolent philosophy on mankind have no love in their heart… only malevolence. Maybe, instead of banning firearms, we should address the real problem and ban socialism, communism and progressivism. All are based on hate.

Sincerely,

John Pepin

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The Theory of Money

Dear Friends,

It seems to me that Milton Friedman’s theory of inflation and money supply presupposes a frictionless plain. A frictionless plain in economics is absolute lasses fair economic conditions. Friedman was a great proponent of lasses fair economics. I think he understood that his theory of money was effected by the economic environment of any given country. If an economy has lasses fair then Friedman’s theory is absolutely true, however, under normal economic conditions… his theory needs to be qualified. This has direct and important implications for the economic theory of money and it’s applicability to present and future economic circumstances. Our economic well being is directly effected by this theory and the qualifications on it.

The first aspect of his theory is, as the money supply is expanded beyond the actual economic growth of a country, the inflation rate will have a one to one ratio. If GDP was expanding at a rate of 1% and the money supply increased at a rate of 2% then there would be 1% inflation in that economy. This is a pretty self evident idea and is verified by graphing economic conditions in several countries over several years.

The other aspect of his theory, is that under conditions of recession where potential capacity is less than full utilization, then an expansion of the money supply may draw the economy closer to full capacity. By pulling in underutilized resources to feed the increase in demand that the additional money creates. Like the US FED has tried to do with QE1, QE2 and TWIST. The ECB (European Central Bank), has begun similar initiatives. These policies by the FED and ECB to expand the money supply, to bring the World economy closer to full utilization, have failed, and in fact have hindered economic expansion. Not due to any deficiency in Friedman’s theory but to an under accounted for facet of economics.

The under accounted for factor is the friction that regulation and political favor play in any economic expansion. To make the point, lets consider two economies that are operating at far less than optimal output. In the first, regulation is at a very high level, and political favor is required to start or expand a business. In this case the increase in money supply will not increase the utilization of that country’s infrastructural capacity. The friction that the regulation creates will keep potential businesses from hiring more employees to increase output to meet the demand.

We saw this happening in the US in the 1970s. The money supply increased, but economic output didn’t, even though the economy was operating far below it’s potential. Unemployment was high but inflation was also high. We can say that the friction, that regulation and political favor generated, stood in the way of utilization of the extra money, and so the increase in the money supply only fed into the inflation.

In the other possible scenario, we have an economic system that has lasses fair… and is underutilized due to recession. In this case if the money supply is increased then it would be easy for firms to hire more employees and increase output. This is because the friction to business is low in a country that allows it’s markets to function unfettered of government interference. We saw this in the 1980’s. After the stagflation of the 1970’s, under Carter’s government centered model of economics, Ronald Reagan instituted more lasses fair economic policies, and the economy regained it’s full productive capacity… and began growing at a fast rate.

This is why I say that Friedman’s theory of money supply is dependent on the economic conditions of the country in question. If the government implements government centered economic policies, then additional money only feeds into the inflationary feedback loop, due to the difficulties of bringing people and productive capacity back online. If however, the economic conditions in a country are such that bringing under utilized plant and workers back into production is easy, then we will see that Friedman’s theory works as stated.

Therefore, if a country’s economy is underutilized due to recession, and an expansion of the money supply is used as a means of increasing GDP, then for it to work, that country must lower the level of government interference or friction, else that expansion of the money supply will feed into an inflationary spiral, or if the economic expectations are too pessimistic, then we will see the money sit in the banking system, until economic conditions are more favorable to economic expansion. Then all of the inflation that has been banked will emerge and lower the value of every unit of currency in the economy. Inflation will appear where there appeared to be none… perhaps even hyper inflation.

Sincerely,

John Pepin

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The Hidden Option

Dear Friends,

It seems to me mankind is at a crossroads. We are told the options are, a World government enforcing totalitarian socialism, or World government that enforces a totalitarian Caliphate. There are no other options being promoted by the World’s Elite. They are of one mind… Total World government is the answer. The unbiased media are completely on board with this pernicious notion as are most academics and political Elite. They wish to run headlong into this oppressive societal model they see as a utopian vision of World peace… the peace of the slave to the master. The individual, they see, must be controlled and re-engineered into ants, that merely serve the collective. Both are false options, evil incarnate, and will lead to more human suffering than any dictator has ever visited upon his people… Mao included.

Speaking of Mao, Obama and his allies see him as their ideal model. They have often mentioned Mao in their speeches and revel in quoting him, “Political power comes from the barrel of a gun,” Obama had a Mao Christmas tree ornament on his tree, and so forth. Mao also believed in a World government that is all powerful. Today we have both political parties in the US proposing the total state as a viable option. One wants to race there the other wants a more measured pace. No one proposes the option that was enumerated in the US Constitution… individual liberty and human equality. Mao was an enemy of individual liberty as are the political, cultural and intellectual Elite around the World. Mao championed of economic equality.

This mind set is not only pervasive in the US but we see it around the globe. Europe is racing to that goal in many ways. One is by destroying the economies of Europe. The European model of economics has the roof supporting the foundation. They see this as ingenious… that they could get the government to support the people. The perpetual deficit spending and eroding of the work ethic is another facet of this mastermind plan. The Elite don’t see any problem with more and more people leaving the workforce to become dependent. This is the natural course of economic evolution… according to them.

This model has been so thoroughly discredited by history, one would think it obvious, but the Elite lower the level of education to the point of non education. Non education being the dumbing down of children and convincing them their eyes lie while the self serving utopian politicians tell the truth. Why believe an uncomfortable fact when the Elite claim comfortable untruths as verity? Not only our children are subject to non-education but we are as well. The culture encourages this lunacy on everyone who consumes entertainment.

The unbiased media report partial truths, untruths and outright propaganda. Like the sophist redefining of human equality into economic equality. The media is filled with nonsense like, what entertainer is running around on their spouses and fiction about global warming, that has to be renamed global climate change, because no one knows if the climate is warming or cooling, or how it is occurring… just that it is evil capitalism and freedom causing it. The unbiased media withhold real truth because it doesn’t promote the party line while the movies almost universally show goodness as bad and badness as good. Look at the lionizing of Che in The Motorcycle Diaries.

History is white washed except where it backs the totalitarian program. We are regaled with every evil that the West has visited on mankind without a word to the evils every other civilization has visited on humanity. The one sided story is promoted as profound truth further promulgating the non education we are subjected to. Colonialism is preached as total evil, (which it was), while the horrors Mao visited on his people, starvation as a political tool, mass murder of dissidents, reeducation camps and so forth, are glossed over… because he believed in economic equality. Pinochet’s atrocities are given full light, while the inhumanities of the communists that he was fighting, are ignored. Tamerlane’s murderous rampages, the destruction of religious monuments, wiping out of the Egyptian language, subjugation of people, Dhimmi status of other religions, abuse of women, the invasion of Europe and all the other atrocities of Islam are forgotten. The list of misdirection, erasing history and red herrings are endless.

We are being taught to be subservient to the State. We are being told anyone who seeks individual liberty and individual sovereignty is evil. That we are bad in our hearts and that it is only the total State that can rectify our sins against mother nature. We are bombarded with the pernicious notion that God doesn’t exist and we are to worship the created, or a man… instead of the creator. All this has one possible outcome… A new World order, where we are controlled by a very tiny cadre of self serving Elite, that have total power. Our willing ignorance feeds directly into their plans.

The question is, do we want one of those futures for our children? Maybe we should wake up, and give them liberty and prosperity instead, or are we going to deliver our children into the hands of these megalomaniacs? As I said in the beginning, we are being told there are only two options, but in fact there is another. It is up to us to take the hidden option. I hope and pray we do else or children will pay a heavy price.

Sincerely,

John Pepin

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Scandal and Tyranny Go Hand in Hand

Dear Friends,

It seems to me that capitalism is based on trust. Without trust markets close down and money becomes just a bunch of paper. Trust is the lubricant that allows our modern market system to function. It is built by years of honest dealings of market players. Trust takes years to establish but merely seconds to destroy. Today we are seeing the destruction of trust, that will lower the standard of living of men, women and children all over the World… and possibly leading to a new world recession.

Most people work very hard for their money. After all, money is as much a representation of labor, as it is a unit of exchange and a store of value. Those who have worked hard and seek to store up that labor, so they can use it when they retire, to buy the means of production or even just as a source of insurance against the exigencies of life, are personally damaged when it is stolen. This is a strong disincentive to save and leads to a whole host of economic problems.

The banking system in our modern economies have a fundamental role in the growth of GDP. Money can be said to follow a circle. Wage earners work and then save some of their money in banks. Those banks amass that capital then lend money to people, who want to buy a home, start a business, or upgrade plant and equipment. Those companies then hire workers and the circle is complete. This entire system rests on trust in money, institutions and government.

Keeping trust in our financial institutions is a valid role of government. If we look at countries whose governments have coddled wrongdoers and recoiled at punishing their oligarchs, we see that they, universally, have very low standards of living coupled with overly powerful governments. GDP growth in countries is drastically reduced, when government is in bed with a small cadre of Elite, that are above moral behavior.

Lack of trust in institutions is a strong incentive for people to elect socialists and communists to government. This is another fact we see in third world countries. The people have lost trust in their institutions and government. It is ironic then, that the people turn to an oppressor, to stop the financial oppression. But the fact is, when someone is drowning, they will turn to anyone or anything no matter how dangerous. If nothing can be trusted, grasping for anything, we turn to the cult of personality. The cultish figure claims to have the answer, in our terror, we believe him. We ignorantly and foolishly run into his open arms… and right into the embrace of tyranny.

Today we see a constant barrage of Elite financial institutions gaming the system and no real negative consequences for them. Government regulators have dropped the ball in the US on the Madoff scandal, Enron, MF Global and now the LIBOR scandal and PFG Best. These scandals have one thing in common, they all should have been seen by the regulators but were overlooked. Remember that the SEC was asleep at the switch when the 2008 financial crisis hit. In the case of Enron, there were jail sentences passed out, but in the case of MF Global, Jon Corzine is walking free in the Hamptons. Not only free to enjoy his ill gotten gains, Congress, his fellow Elite, expressed sadness, that such a good man was damaged by the scandal. Now, with the LIBOR and PFG Best, we see that again our government has dropped the ball.

The poor showing of the world’s stock markets is in part a reflection of the pernicious corruption in our institutions and markets that has led to our distrust in them. The answer of government is to increase regulation, but there were regulations on the books… that were ignored. Had they been followed, and effectively enforced, the scandals wouldn’t have happened in the first place. But the SEC and other oversight agencies failed miserably. The upshot is, the Elite, who fail us time after time, will ask for more and more power to regulate, regulations that will, doubtlessly, not be enforced. This will lead to greater and greater oppression of us, and lowering of our living standards, with no positive outcome… for us.

The answer is not to give those who keep failing us more power, but to replace them with people who will do their job… and make them answerable to us. Giving a corrupt man more power to fight corruption is like trying to put out a fire with gasoline. In this case, it is not only our prosperity that provides the tinder, it is also our liberty and posterity. But the eyes of the Elite glitter as they douse us with gas and the reality is ugly to behold. The heads that should roll are the ones on the officials who never fail to choke in the clutch. If they don’t… tyranny befalls the foolishly naive.

Sincerely,

John Pepin

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