The Woods and the Concrete Jungle

The Harvard Yard

Tue, 28 Aug 2012 10:34:12 -0500

This documentary explains why most students are so uninspired.

Keplerian Economics

Sun, 29 Jan 2012 23:22:00 -0600

The overall collapsing of the international economy is ever more prevalent with each passing month and appropriately addressing this collapse should be at the forefront of all policy makers and citizens alike. This paper will present a series of policy recommendations that speak to the collapse presently taking place in the U.S., recommendations that are predicated on the system of Keplerian Economics (Tennanbuaum, 2002). In the 17th century astronomer Johannes Kepler discovered the purpose behind the elliptical motion of the planets (Kepler, et. al., 1997). His book Harmony of the World combined the disciplines of astronomy and harmonics to reveal that the elliptical motion of the planets followed a system of harmonic synchronicity (Kepler, et. al., 1997). Essentially, the planets—governed by gravity, electromagnetic currents, strong and weak interactions—orbit this way in order to fit into a universal harmonic puzzle (Wolfenstein, 2003).

Kepler searched for the organizing principle around which the solar system developed and continues to develop (Wolfenstein, 2003). Lincoln Wolfenstein argues that the “Newtonian synthesis is the model for the reductionist approach to physics to explain all phenomena as based on a fundamental set of interactions;” it is therefore appropriate to seek to understand the principles that govern those interactions in order to explain purpose (2003). Likewise, it is the goal of the Keplerian Economic model to stray from the Adam Smith construct of economic modeling—one based on and explained as a system of interactions which speak to no purpose and do not reveal economic principles (i.e. economic truth) — and lay the foundation for an economy around an organizing principle which speaks to the development of the human economy and the species as a whole.

With an informed and active population we can all arrive at the organizing principles that enhance the human economy for the better. Indeed, the U.S. has the proper foundation in place, buttressed with its Constitution. The U.S. Congress must have an intervention moment where this framework is activated and people begin to be involved with their communities, states and country again. Once this happens, some semblance of trust can be restored and the citizens and their representatives can begin to dialogue about the direction of the country—a large part of this talk will be the nature of our economy. These policies offer suggestions about the appropriate nature that the U.S. economy should reflect.

Essentially, this bare-bones framework—consisting of Glass-Steagall, capital controls, a fixed/floating (crawling) exchange rate system, and reorganization of the U.S. Federal Reserve System—is meant to increase the potential population density of the human species and “develop the human cognitive powers by applying physical principles toward the mastery of our planet” (Tennanbuam, 2002).

The U.S. can further set an example by altering the manner in which national GDP is calculated. While there are trade and production indices, the calculation of GDP does not take into account what is actually being produced, though GDP is often thought of as the most effective way to measure economic performance. Perhaps a more effective way to measure the economic performance of a nation is to take the total physical output of the economy(T), divide that figure by the sum of the physical cost for sustaining the human population(V) (e.g. health, transportation, communication, education, water systems, etc.) and the cost of maintaining what V.I. Vernadsky called the noosphere(C) (Tennenbaum, 2005). The noosphere is essentially the impact of human creation on the Earth’s biosphere, the ecosystem that we create within the biosphere. (Vernadsky, 1938).

The preceding formula (T/ [V+C]) can act as a starting point for a revamped way of determining national economic progress and reflect whether or not the Keplerian model truly enhances the economy of the nation for the better. In the same manner, the policies of Glass-Steagall, precise capital controls, crawling exchange rate, and a reorganized Federal Reserve System can serve as a starting point for the financial reorganization needed nationally and internationally.

The Propensity for Preference

Wed, 14 Sep 2011 11:18:31 -0500

An economics professor told me that economists define economic efficiency as whatever best suits our preference. To a large extent this is what many on the side of the “free market” argue. One establishes the need or desire for a particular product or service, one then goes to secure said product or service.

But is this efficiency? Should we erect and maintain a national economy around this construct of efficiency? I contend that it was precisely this short-sighted, reductionist concept that guided Congress and the Executive through their incompetent decision making for decades.

There is no denying that some of the programs to which Congress appropriates funds are essential to a vibrant infrastructure. These include a focus on energy supply, transport systems, supply of fresh water and other water related infrastructure, and communication and health services. However, because Congress and the Executive mainly engage in crises management, there is no counter balance produced needed to support the aforementioned components of infrastructure. In order for a country to support an infrastructure, the people must not only be healthy and fed, but support long term projects, grounded in science, that enhance the ability of a nation to support a growing population.

Economic efficiency is not a one dimensional concept wound up in the notion of satisfying preferences. Our goals as a nation should reach much further. Maintaining high rates of technological progress requires structured investment, education and employment of a section of the labor force, different than you would get if you sought to optimize existing modes of production or by simply following preferences.

As it pertains to one’s daily life, yes preferences serve an essential function. But in terms of future development—at the household or national level—is it not sometimes necessary to reflect on more than existing preferences? Should we not have a focus on what is needed for our household or nation to not only survive, but promote qualitative upshifts in our environment into the future, regardless of preference?

Congress allowed companies and the Fed to issue bonds on securities several times over to suit economic and political preferences, instead of dealing with the real issues in the economy and by extension society. This was done through the most prominent investment banks in the world.

Thus, this ideological problem has become a real systemic fiscal problem. Congress and the Executive have been duped into serving a cartel of rating agencies, investment banks, and the upper echelons of industry—private international financiers. This cartel cyclically uses government to maintain a structure of, essentially private government ownership—not unlike the days of feudalism where the most prominent lords who controlled industry used this as leverage to control the policies of kings. This is precisely why Congress passes legislation that they know will inflict long term irreparable damage to its own constituents—to protect its’ preferences.

Economic Progress as defined by Adam Smith

Mon, 08 Aug 2011 15:00:00 -0500

What is economic progress? At its core, economy is the application of scientific principles in our physical environment to increase the power of the human species over nature. In this formula the quality of progress is determined through a constant harmonizing of the human condition—a condition guided by physical principles—with the need to increase efficiency in modes of production.

The Adam Smith construct of economy tells us that identifiable morals and physical principles of economy are non-existent; in the pursuit of progress an actor is satisfied through functions that relate to pleasure and pain. That is, an economic actor solely strives to maximize pleasure (profit, influence, power) and minimize pain, and out of this duel of functions comes human economic progress. Both in his Theory of Moral Sentiments and Wealth of Nations, he explicitly rebukes the existence of economic and moral truth thereby distorting the true meaning of the word progress. The first definition reflects an economy that promotes the increased productivity and creativity of the human economy. Smith’s definition of progress only reflects an economy that promotes unforeseeable motivations of self-interest.

To Smith and his many followers, value in society is arbitrary in that it places in the domain of sense perception the basis for all human knowledge. True American political economy emphasizes the creative powers of the human mind and wielding those powers for the benefit of society, in this case a nation-state. The critical issue then is identifying a distinction between human sense perception and universal physical principles.

It is a fundemental question of whether or not humans act willfully on the productive process, or are simply influenced by invisible motivations of the process of production themselves.

As it stands presently, economists do not discuss the real economy as such, but instead discuss principles of financial accounting and in so doing neglect the real issues at the heart of society. This is evident in the recent global financial collapse, a collapse that, ironically many of these same economists failed to predict. A simple discussion of the “products” released on the market by certain financial institutions which led to the influx of “assets” on the market (assets which provided the basis for further expansion) would have revealed a long time ago that collapse was inherent in the system.

In other words, instead of looking at actual indicators of progress such as increased modes of energy production, increased productivity, qualitative education, an increase in the quality of life of the citizens’, and up-shifts in science technology economists obsess over GDP, CPI, price levels, etc. In the history of mankind, such accounting in and of itself has never appropriately measured the quality of life for a nation. Sure, it will tell you how much money is circulating through an economy, but is the accumulation of money progress in and of itself? I think not. Therefore, Adam Smith’s view is inherently reductionist as it does not take into account the truths that societies must wield in order to truly progress.

Progress, true progress depends upon qualitative improvements that are typified by interlinked rivers and canals, transcontinental railways, etc. The likleyhood of true progress depends on the development of platforms in society, through which production, standard of living, and technology of production are enhanced. Society developing these platforms in the economy requires a willful articulation of purpose of which, as far as we know, only humans are capable, purpose that Smith’s theory lacks. The value of purpose is a scientific concept that Smith and his followers completely ignore, though this is the only way to understand our economy and its manifestations.

Adam Smith was in fact a British Agent, a lackey of Lord Shelburne. Smith’s work was meant to distort the application of the ideas of influential people like Nicolas of Cusa and Gottfried Leibnitz who did take into account qualitative factors as they pertained to human progress. This is not an attack on “capitalism” or the free market. It is an attack on the tendency today that plagues society to disregard the search for truth. Besides, there is no economic model that is not in part responsible for the financial collapse we are presently experiencing across the planet. The discussion must be oriented around the uplifting of the human species and increasing the productive powers of man. Discussing economic theory and financial accounting only keeps hidden the real issues people are facing today.

DB: Idiocy in the NYT

Tue, 19 Jul 2011 12:04:00 -0500

I came across an op ed in the New York Times that was so evil and full of idiocy that I had to dedicate an entry to it.

In his piece, David Brooks posits that our “fiscal crisis is about our inability to face death.” His arguments rest on the low value and high cost of research dedicated to eradicating diseases. He claims that U.S. coffers are emptied in its pursuit to extend the lives of its citizens, but in that pursuit gain only marginal victories that do not enhance the quality of life and only serve to in-debt the nation. Thus he largely attributes the fiscal issues in this country to the inability of the citizens to deal with their own mortality.

His argument is so shallow and frankly malevolent that I do not know where to begin. First, yes the U.S. Congress does allocate a lot of money to Health and Human Services for treatment and research, roughly $850 billion in 2010. On this point, he is correct, it is the largest recorded expenditure on the books.

What he fails to look at are the lack of principles involved in the decisions of Congress. On the one hand you have a Congress appropriating money for health programs and research while at the same time allowing the use of vaporized uranium in the weaponry of the U.S. military. The affects of vaporized uranium particles caught up in the jet stream or ingested by bees wreaks havoc on worldwide food supplies, supplies that are dwindling ever more with the use of bio fuels and other “green” policies.

Moreover, as they become a part of the airstream, the sub microscopic particles are transmitted deep into a persons body and enter the cells, creating cancerous growths and disrupting biological functions.

So, Congress appropriates roughly $725 billion to the Department of Defense to fight aggressive, imperial wars, and in this process—through the use of anti civilization weapons like vaporized uranium—are the principals behind the justification of technology that has been linked to the worldwide increase in cancer and type 2 diabetes. Clearly there is something much, much deeper involved than what Brooks is claiming. Even a simple discussion about the principles behind decisions like these would reveal the truth, which is not that citizens cannot deal with mortality, but that our government—in passing legislation like this—does not as a matter of principle value the lives of the majority of its citizens and thus passes economically disastrous, short-sighted and deadly legislation. And let us not forget fluoride, BST milk, chemical trails, Prozac, and other causes of a number of illnesses that agencies within the executive neglect to even genuinely warn us about, let alone have Congress pass legislation that would protect consumers from these bad elements of industry.

GMOs are another example. Pesticides, modified genomes and other toxins are laced throuought most of the U.S’ food supply. Many fools claim that GMOs may not be ideal, but they make more food available to the less advantaged. Hogwash. Since the widespread use of GMOs there has been an increase in a number of illnesses that result from malnutrition and poisoning. Through projects like NAWAPA, beneficial food research and development can take on a whole new life; through the development of floating barges and automated construction, the U.S. could utilize floating agriculture and incorporate quality into food production. Projects like NAWAPA could usher in the dawn of a new Renaissance, uplifting people from rent slavery, slum living, all while enhancing energy density for more economic output. But real infrastructure in this country was abandoned a long time ago from our adhering to the oligarchical model of monetarism.

Clearly there are ideas that most citizens do not agree with or know about as it relates to the health industry. This is the real issue. Yes, perhaps the citizens do want to prolong life, even for only a few short years, but it is idiocy to think that our government is hell bent on curing all ills and that this is the reason for our fiscal troubles. If it were, the bailout funds would have gone to hospitals and not to the bottomless pit we call Wall Street.

Moreover, just because the people want to live longer, does not mean that the government is trying to make that happen by pouring money into Health and Human Services. The fact is, insurance companies run our health industry, and most of them are ran from Wall Street, a nest of the empire. So, Congress can pour as much money as it wants into the health industry, but until the industry is freed from the hands of the empire, the money is only being used against the people of the nation. This concept is exemplified in the use of fluoride in drinking water, radiation and violent surgery in cancer treatment, the outlawing of medical marijuana, etc.

His argument neglects so many factors: Keynesian economics; derivatives markets; hidden costs of war and military subterfuge; debt swaps; foreign toxic asset purchasing; offshore profit housing; outsourcing; “free trade and globalization.” His argument is so shallow it would be laughable if it were not so evil. Our fiscal problems are the result of monetarist, imperial interests who are bent on crippling this nation, not just politically, but socially, physically and psychologically. People like Brooks are either fools or complicit in this process.

My reason behind bringing these points up in the context of the NYT op ed is that our fiscal problems are largely the result of an ideology that permeates the very core of our society. G. Edward Griffin calls it Collectivism; Lyndon LaRouche calls it monetarism. Our Congress operates on no real principles, which is why we see countless dual and conflicting mandates such as those described above.

There are so many ways that we can lift ourselves out of this national and global crisis. A fixed international credit system, based on sound currencies arranged through treaties between or among sovereign nations; credit based on energy dense modes of production which “increases the net physical value per capita and per square kilometer of any territory” (L. LaRouche); a Glass-Steagall type legislation which separates the tax payers from the casino on Wall Street so that money may be deployed for productive purposes that enhance the productive value of the citizens of the country; education that emphasizes the process of discovery.

These are real solutions to our fiscal issues, and these only scratch the surface. People learning to deal with mortality is hardly an insightful analysis of the current situation. This is a world wide breakdown of the physical economy that has progressed for approximately the last 40 years. Presently, the U.S. is a pawn of a supranational corporate cartel that is hell bent on destroying the country through financial interlocking, cultural degradation, corruption of the education system, political circuses, and many more tactics.

Or, the U.S. citizens can face mortality quietly and stop funding health research and other programs and this will solve the majority of our fiscal problems. I cannot stress enough how unbelievably ridiculous this NYT op ed is.

Here is a link to Brooks’ op ed: http://www.nytimes.com/2011/07/15/opinion/15brooks.html?_r=1

Secret International Bailouts No Longer a Secret

Fri, 10 Jun 2011 08:38:00 -0500

Wondering exactly where the bailout money went? Here are a few of the hands it touched:

McDonald’s took $203 million from the Federal Reserve
Six Minnesota banks received a total $450 million
Caterpillar took $733 million from the Federal Reserve
The USA based Verizon Communications took $1.5 billion from the Federal Reserve
Harley-Davidson received bailout money 33 times, for a total of $2.3 billion
The amount injected by loans into Utah-based financial institutions was $6.6 billion
$9.6 billion went to the Central Bank of Mexico
General Electric Co. needed funding 12 times for a total of $16 billion
Deutsche Bank got 73 loans totalling about $76 billion
Barclays pulled in $232 billion via 188 loans
Goldman Sachs received nearly $600 billion
Bear Stearns received just under $1 trillion
Morgan Stanley got $1.9 trillion coming from 212 loans
Merrill Lynch received $2.1 trillion, spread across 226 loans
Citigroup got 279 loans totaling $2 trillion

Link to Article: http://http://libertyfalloutsentry.blogspot.com/2011/01/us-senate-lifts-veil-on-secret-bailout.html

The Rise of Anglo-Dutch Liberalism and its Role in Modern Society

Thu, 09 Jun 2011 11:31:00 -0500

On countless occasions I’ve heard the term liberalism used to identify an ideology or policy. But, more than likely, the person using it does not actually know what it means or where its’ concepts come from.

The idea and characteristics of this particular form of liberalism represents a body of knowledge which transcended topic areas. After the collapse of European civilization in the 14^th century, the concept of a representative, accountable sovereign power gave rise to the formation of the nation-state, and the Westphalia System by 1648. Prior to this movement and particularly during the 13^th and 14^th centuries, Venice sat at the head of the international financial hierarchy, and through a system of private monetary control based on usury, they indebted kings and queens in order to gain trade dominance and perpetuate oligarchical social control—perpetual war plagued Europe as a result.

The system of unaccountable private control of the international monetary system and the abuse committed by the financial oligarchs led Europe into the Dark Ages, and it was this destructive system that the ideas behind the creation of the nation state were meant to combat.

How does modern liberalism fit into this? The control by the oligarchy requires that the general population be in an animal like state of entropy. For the oligarchy to keep control of not only governments through finance (particularly short term loans), but our culture (environmentalism, globalization, etc.), they must keep the main segment of the population confused, weary, conflicted, void of true wealth and inheritance, morally decadent—through tactics like these a society will eventually destroy itself. Then, like vultures the ‘money powers,’ the very people who are mainly responsible for the chaos, swoop in to devour all that remains.

The construct of modern liberalism fosters this destruction as a matter of principle. Modern liberalism that came from people like Paolo Sarpi, Jeremy Bentham, Adam Smith, and others teaches us that the universe of the unseen is non-existent and thus humans (from this view) have no ideas; reality, as such, is solely determined by senses. Thus the idea that we as a species are connected to each other and the universe, of a metaphysical and willful nature is disregarded. The idea that mass movements of people as a willful manifestation of this connection likewise is disregarded. This is nonsense. Though these ideas are pushed on us from above, most people realize how connected we are and that we as a species are relevant to one another, though they may not be able to fully articulate the nature of that connection.

It is this off shoot of liberalism that plagues the U.S. and most of the world today; and is that which attacks the concept of wielding governing principles in society and thus erodes our moral compass. War and murder is okay, if it serves our interests; theft is legitimate, as long as it is done by the government; torture is permissible, as long as the victim is (often arbitrarily) deemed a ‘terrorist.’ The atrocities against humanity are carried out in the name of what?

The fact is that the world’s nation states have been infiltrated by international oligarchs who push the leaders of their respective states into debt via war and cannibalistic, self-destructive economic policy. What results is a weak, insolvent nation obligated to an international, imperial conglomerate.

It is liberalism that serves to keep humans disconnected, innate and essentially irrelevant to the major shifts on the planet. “The denial of knowable truth denies people the protection of principles.” It used to be a principle of the U.S. government to protect our dollar; it used to be a principle of the same government to go against torture; likewise, honoring the 4^th Amendment used to be a principle. This is by no means an attack on Democrats—both parties for at least the last 4 decades have served the cause of liberalism and the international powers who propel this ideology. Because of liberalism, true principles are non-existent and the U.S. as we know it is being destroyed by adhering to it.

The Errors of Religion

Wed, 25 May 2011 14:09:00 -0500

“If one considers the great multiplicity of religions in the world, each claiming to represent Truth, the evident answer is that none of them do, and do so no more than a grain of sand represents the seashore. But within the grains there some aspects of truth embedded, some concepts that have been recognized across the ages that uncover some divine aspects about ourselves. In them, in these sparks of truth, faint as they may be, we find the gold of the religions. But in order to discover those sparks it becomes necessary to peel away the political games for behavior manipulation that religions have been abused for.”—Wolf Witzsche

Real Solutions to Finacial Collapse

Tue, 24 May 2011 06:40:00 -0500

The current process of collapse of the international financial system need not destroy the whole of the real economy. Despite the mantra repeated constantly in media, political, and academic circles, there are clear and decisive maneuvers that the U.S. can take—in concert with other countries such as Russia, India, and China—to eradicate the mountains of international debt and generate a qualitative up-shift of the living standards in their respective jurisdictions.

One such initiative is the North American Water and Power Alliance project (NAWAPA). As its name indicates, NAWAPA is a water management system through which previously unharnessed rainwater filters out and irrigates approximately 112 million acre feet per year in North America. The initiative will create 4 million high-end, high-quality jobs and the potential to create an additional 1.5 million with the use of nuclear technology.

A separate function of NAWAPA will be to divert southward approximately 15% of the McKenzie River in North Canada which presently runs off into the Arctic through a 500 mile Rocky Mountain Trench, ultimately reaching Mexico.

The overall expansion created by NAWAPA would extend to the Great Lakes creating barge canals connecting Lake Superior to the Pacific and Hudson and Georgia Bays, and the ore fields of Labrador and Quebec to the Great Lakes, which will lead to new mining discoveries and other industrial and research benefits. This shift would ultimately make previously uninhabitable areas habitable or tolerable. One such area that falls into the latter category is the Arctic region which as a result of NAWAPA will lead to the discovery of new relationships between the Earth’s magnetic poles and the sun-solar system. One cannot deny the infinitesimal potential that such a project will manifest; the understanding and mastering of the biosphere will undoubtedly lead to extraordinary advances in technology and science.

The NAWAPA project is contingent on a number of things, in particular wrestling financial power from the vested interests of Wall Street and its international, imperial ties. The re-installation of Glass-Steagall must take place in order to immediately eliminate from the back of the Treasury (tax-payers) roughly $11 trillion of worthless, unproductive and speculative debt pushed onto the U.S. by bad banks, led by an international conglomerate operating out of the Federal Reserve.

With its installation, the U.S. government is freed to funnel money into infrastructure projects, like NAWAPA, in order to create the up-shift in the standard of living of U.S. citizens. Despite the nonsense coming from jesters like AL Gore, George Soros and the UN Environmental Panel, the human species can outrun the limits of its habitat by creating in society a higher state of dynamic potency. In other words, instead of destroying the way of life people have known for years through austerity measures and death legislation like Obamacare, humans can elevate themselves through willful creation and mastery of their environment—NAWAPA exemplifies this process of creation.

The present crisis is not an American sub-prime crisis, or recession. It is a breakdown of the physical economy as a whole. Thus the trivial fixes concerning the budget and discretionary spending are nonsense, and in fact detrimental to all those who focus solely on such issues; for they are but symptoms of the much more serious problem of monetarism. Bailing out Wall Street was not an honest attempt to rejuvenate the U.S. economy-this Wall Street debt is tied to presently unproductive financial tools such as derivatives and represents nothing of actual value.

Modern economists obsess over financial accounting as a means to solve the monetary-fiscal crisis, but fail to recognize that the promotion of society is the only basis for a standard value. Thus real scientific economy is based on this intrinsic value of creativity, in contrast to monetarist financial accounting.

The international community must reject monetarism and embrace a system of credit arranged through treaties among sovereign nations. This system of credit will be based on capital-intensive, “energy flux” dense modes in agriculture manufactures and economic infrastructure (Lyndon LaRouche, Jr.). Will Congress and the President allow the U.S. to go the way of all imperial pawns preceding it?

Yes, that is correct—the U.S. is not an imperial power, but a tool of the real international imperial power held by families such as Raring, Lazard, Erlanger, Warburg, Schroder, Seligman, and most notably Rothschild and Morgan (Quigley, Tragedy and Hope). In the U.S. (mainly the Morgan financial power house) this imperial power operates out of the Federal Reserve System which these “money powers” have used to build their personal fortunes and influence while ruining the U.S. economy and miring it in war after war after war. Therefore the first step in any recovery is a real discussion of the powers behind the Federal Reserve and our monetary system as a whole.

The Evils of Monetarism

Fri, 06 May 2011 16:39:00 -0500

Amidst the frenzy of policy recommendations from economic “experts,” it is difficult to sift through such platitudes in order to identify the governing principles which have led the U.S. and the rest of the world to the brink of a “new dark age” (Lyndon LaRouche). The mechanisms through which this state of affairs have and will manifest are the same used by the first Roman Empire, founded by among other people, Caesar Augustus—a system called monetarism.

Anachronism is the word that comes to mind when using the first Roman Empire in the context of modern political economy, but this is the reality of the situation. This monetarist principle has dominated all European systems since the days of Augustus Caesar and still dominates what currently is known as the British system, and has found a home in the U.S., particularly with the founding of the Federal Reserve System in 1913.

When the founders led the U.S. in the forming and adoption of the U.S. Constitution, they defined money as a medium which reflected a state of credit representative of a sovereign republic. That is, the founders meant for this system of credit to foster an increase in net physical value per capita. Simply put, identifying the governing principles on which a productive economy can be built would establish a platform on which the individual could have an active hand in the willful development and creation of his environment and by extension his universe.

What we have now (in the U.S. and internationally) is far from that. The U.S. is a victim of the idea that a monetary value is the standard of measurements in the economy, not the development of physical wealth.

If the U.S. is to survive—financially, socially and culturally—lawmakers and citizens must rid themselves of this brainwashing. It is surprising how unaware some people are of the principles which govern their behavior. Creation, thoughts, ideas, and many metaphysical aspects of the human species are not simply random acts of chemistry; there are universal principles that direct our motions and actions.

If we, as a species begin to identify these principles, we can solve the highest challenges we face today—such as mastering our environment, creating and expanding physical wealth, developing the human mind and understanding our universe.

The first Roman Empire—and others such as it successor the Byzantine Empire and the Venetian Crusade model—all used to ensnare new slaves a system of usurious loans as mechanisms of control. Every single civilization as a result of participating in this imperial system deteriorated from within. The U.S. can still avoid this fate.

Napoleon Crossing the Alps.

Tue, 12 Apr 2011 13:33:00 -0500

Napoleon Crossing the Alps.

More Tax and Regulation Please

Tue, 12 Apr 2011 12:56:00 -0500

A fellow classmate and I had a friendly debate yesterday evening concerning the regulatory role of the Federal Reserve and the U.S. system of taxation, and how these two issues factored into the current fiscal crisis we face as a country. His argument unfortunately was typical of the academic nonsense and main stream media dribble we hear on a daily basis, which almost always lacks historical perspective.

His position concerning taxation is what you hear from many people of all backgrounds. “If only the rich people paid more taxes, the country could get out of this hole.” More specifically, he argued that there are too many corporate tax loopholes and that higher income earners are not taxed at a high enough percentage.

The tacit point he alluded to, that people who make less pay too much taxes, was well taken. Despite the Kennedy, Reagan, and Bush tax rate reductions, the average American pays out more than 30 percent of their annual income to the federal government alone. Ordinary people have no more claim over their labor than a medieval surf.

Our arguments diverge upon focusing on the high income earners. The common slogan that the rich don’t pay enough taxes is uncredited and is not grounded in reality. The most current IRS Data Report (2006) showed that the top 1% of American earners who earned 22.1 percent of the AGI payed 39.9 percent of individual federal income taxes. The top 5 percent payed 60.1 percent of the federal income taxes; the top 10 percent, 71 percent. While the bottom half of earners payed 3 percent.

The above numbers show clearly that the few people that have any semblance of financial freedom in the U.S. are slowly being marginalized as a result of progressive taxation. Let us not forget the hidden tax of inflation. Since the end of the Bretton Woods agreement when the U.S. stopped redeeming dollars in gold, the U.S. dollar has lost over 90 percent of its value (adjusted for inflation). This, over the last 30 years has eroded the purchasing power of the average American, particularly the middle class who are locked in fixed term mortgages, and other long term obligations.

The claims that there is not enough oversight in the banking sector is unfounded. There are more regulations coming from the Board of Governors than I can count; regulations concerning number of branches, territories covered, management policies, services rendered, and interest rates charged are all set by Federal Reserve Board. Additionally there are regulations that do not pertain to the banking sector such as the legislation ironically labeled the Truth in Lending Act. The cost associated with the requirements placed on banks and businesses for regulations like these are always transferred to the customers. So we pay twice—once as taxpayers and again as customers.

Moreover, the Fed has access to the books and accounts of every member bank in the U.S. It can dissolve and erect branches as it sees fit, and it alone monitors and controls monetary credit aggregates—you know, those things that create stock market bubbles.

The ability of the Fed to inject cash into the banking sector and manipulate interest rates wreaks havoc in the investment sector leading people to invest in projects that have no real chance of being completely funded. Just drive through the towns with halted construction projects and the cities who came to depend on the construction bubble created by the Fed and tell me they are better off.

If you actually study the Federal Reserve you see that insolvency is inherent in the system. The FDIC creates moral hazard and ensures that, coupled with Congressional bailouts, bank losses are passed on to the tax payers. This is not the free market and not a result of lack of regulation. The Federal Reserve is a creature of Congress, it has government sanctioned monopolies and has extensive regulatory influence in not only the banking sector, but in the economy as a whole—again, not the free market.

So, the argument that the U.S. lacks regulation is ludicrous. Yet every Fed chairman, including Bernake, held strong that the U.S economy was doing well and stronger than ever—until it wasn’t. Either we have completely unqualified individuals in the Fed, they simply do not care whether or not they fail at their jobs, or they have hidden agendas that they do not want the rest of us to know about because it involves destroying the purchasing power of U.S. citizens.

Our fiscal situation is not because we don’t pay enough taxes; it is not because the Fed doesn’t have enough regulatory authority. It is because we pay too many taxes and there is too much “oversight” by the Fed encouraging speculation and debt. Debt and the tax system create a system of unaccountability, recklessness and confusion. Just think, we are taxed almost to the point of oblivion—the response is more taxes! We have a regulatory system that creates moral hazards—the response, more regulation! We have to begin to think historically as a society. If not, government must allow us the financial and social freedom to do this individually and regain control of our destinies.

Tom Woods is interviewed by a Zombie

Sat, 11 Sep 2010 08:57:43 -0500

This interview is enlightening, but also HILARIOUS…give it a go, you will not regret it. Tom Woods is interviewed by a Zombie. http://www.lewrockwell.com/woods/woods145.html

White House Dance

Tue, 07 Sep 2010 13:24:50 -0500

I wonder how much this will cost the taxpayers.

http://news.yahoo.com/s/ap/20100907/ap_on_en_ot/us_white_house_dance_1

Afghanistan Banks Need Propping Up

Sun, 05 Sep 2010 17:51:28 -0500

http://drudge.tw/9KsdZN

This article says no tax payer funds, but I wouldn’t be surprised if they found a way to use checkbook credit with US assurences or IMF reserves (i.e. money created for that purpose). We certainly will see, as the US will be involved in Afghanistan for a while.

It’s not about left or right, it’s about right and wrong. Even if this is what people...

Fri, 03 Sep 2010 16:10:16 -0500

It’s not about left or right, it’s about right and wrong. Even if this is what people were led to believe in 2008, this is not the only, or dare I say best way to secure healthcare for more citizens, or stimulate the economy.

These tax increases are going to hurt most of us, and enrich a select few. http://drudge.tw/aA5165