Living in the Presence of Evil

Living in the Presence of Evil.PDF Version

Before reading, it might be good to examine the definition of evil – as the word is used in common language , as well as some more sophisticated thoughts on the subject by Scott Beck who is the well – known author of “The Road Less Traveled.”

Merriam Webster- Definition of Evil.

Dr. Scott Peck, Psychiatrist On Causes of Evil

Mostly in this blog, I discuss economics, politics and natural law – in terms of how it applies to these subject areas. I am not a prophet or an avatar. However, I am a mystic. My method is not to rely only on things that can be seen , touched, felt and watched. I heavily consider influences we can’t see.  One time I heard a man give an answer when asked what made him certain that there was a spiritual world. His reply was, “I can feel the presence of guidance and influence that is outside the physical realm.” Most people can accept that they don’t know they can. Replacing what is real in life with fantasy diminishes one’s ability to interact with the cosmos, so to speak. This is not the same as clairvoyance, for which I have no solid insight. Continue reading

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New Dynamics Corporate America

New Dynamics Corporate America.PDF Version

Early in life, most Americans remember the phrase, “the consumer is king.”. This concept began to change in the 1950s. John Kenneth Galbraith, in his book The Affluent Society. coined the term “conventional wisdom”. He explained how what is perceived to be true continues to be deemed to be true long after it is no longer true. Conventional wisdom is that the consumer is king. The consumer is no longer king in the U.S. economy.

In the fifties, Galbraith noticed a change. Sophisticated advertising techniques developed. Demand for goods and services, which had previously sprung up in the hearts of buyers was taking a back seat. Corporations were then creating demand for their products and services by virtue of increasingly sophisticated advertising. The 1950s were only the beginning of the practice of manipulating the public mindset Continue reading

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Why Does Government Grow?

Why Does Government Grow.   PDF Version

This is a question I answered on a public forum where I am apparently still welcome and for now uncensored .Government grows every time a bill is passed. Bills get passed as a way of rewarding Americans with political power. Only a few have enough political power to get what they want out of government. Bills are passed as a way to extract wealth and income out of the general population

People without political power are important to the political process only in their imaginations.Conservative echo chambers serve the elite because all of the time and energy of conservatives is absorbed with philosophical discourse. Being of extreme importance in their own minds , they are lulled into believing they are making a huge contribution – by teaching others how to think.

In a democracy – based system, it is the citizens’ responsibility to govern themselves. Governing involves work and since work is a second choice for the human species, messiahs are sought instead of delegates.

Politicians are assumed to run for office because they are good people who want to serve. In terms of goodness, politicians are neutral at best. Politicians run for office as a way of making personal use of rank and file citizens – as they bargain for power, influence and money.


Curbside Jimmy’s Prophetic Song

 

 

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Treacherous Dangerous Times

 

Treacherous Dangerous Times PDF Version

This is a question I answered on a public forum where I am apparently still welcome and for now uncensored .This is a question I answered on a public forum where I am apparently still welcome and for now uncensored. American citizens along with the rest of the world’s population are in serious danger. Danger from outright violence is present of course. Economic danger is present, growing and certain to increase. In the face of this there is a genuine lack of awareness of the gravity
of the situation. There is a black out of any relevant non superficial news. There is little concern and little meaningful information available that might make folks concerned. Continue reading

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Another Silly Recession Headline

I clipped this headline off of Zerohedge this morning.

So, why is it suggested that the U.S. might be in a recession, when it obviously is to anyone with at least one eye, who is looking?  We have a growing homeless population. Banks are failing. Small banks are losing deposits. Retail stores are closing. Home prices have started falling and so on. 

 

So, why is GDP still o.k. but just might head into a downturn? Continue reading

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Modern Money Explained

 

 

Modern Money Explained PF Version

Money has always been around. At the time barter was used, whatever was produced in excess of what the producer used, served as money. It was traded directly for something else another person produced, that was deemed worth a trade.

All kinds of commodities have been used for money. Six characteristics of money are:
durability, portability, acceptability, scarcity,
divisibility and uniformity.

Gold served as money for eons because it posses all of these six characteristics. Interfere with any of these six attributes and whatever serves as money functions less efficiently as money.

I use the term natural money supply to describe the optimum amount of money in an economy. The natural money supply consists of money earned by means of work or production plus what can be borrowed based on the credit of borrowers and reserve requirements. But, is that enough money in circulation? It is in a free market economy and constitutes an optimum.

One way to dismantle a free market economy is to increase the money supply by means of introducing political money. Quantitative easing and other such practices amount to political money. Add that money that and the good money attribute of scarcity is diminished. Drop the reserve requirement close to zero and the scarcity of money is eliminated.

All who work possess natural money. That is based on work done and whatever can borrowed and logically be expected to be repaid. Few who work have access to political money.

Access to political money is obtained by way of political power. How do we end up with political money? Suppose there is a basically a free market economy and things are going along as well as possible. The economy is growing but deemed not to be growing fast enough. Never mind that given technology, productivity of labor and resources, everything is being put to its highest and best use. Gee, but given the prowess of our intellectuals, government can stimulate the economy and we can out do the tired old free market system.”

By increasing the money supply, it is assumed that we can have more of everything faster and on a win win basis. So, the Federal Reserve is commissioned to create political money in order accomplish this. Wow, it works, lets do even more of it.

When I was driving a taxi, I picked up an air force pilot at the San Antonio International Airport. I took him to Randolph Air Force Base. We had a pleasant half hour long conversation. He was here to fly a jet back to Colorado Springs. He wasn’t looking forward to it. It would be a boring four hour flight. I naively asked him why it would take him so long since the jet he was picking up could easily make the trip in 45 minutes. He said that his mission required him to optimize fuel usage and if he went at maximum speed, there might not even be enough fuel to finish the
trip.

Stimulating the economy works in a similar fashion. Initial results may be stellar but that is not going to last. First, the stimulus goes to those with enough political power to demand and receive it. Second, the money is used by the receivers to make the most money in the shortest period of time. Expectations are that the money will be unselfishly used to promote a national interest. Instead, resources become inefficiently allocated because the out with the, old and in with the new aspect, of free markets eliminated. Wealth is transferred from the bottom of the economy to the top. A severe recession or depression ensues to correct the imbalances created by the stimulus. GDP numbers can look good for years, but like the jet plane, the economy runs out of
fuel. In the end the economy would have been better off at the end of economic hard times, had stimulus never been used.

Mindless stimulus, both monetary and fiscal stimulus. have been used constantly since the Reagan Administration. Keynes, the father of economic stimulus, was clear in insisting that his theory should seldom be used and that complete objectivity must be used when it is. Since government, can only make political decisions and Keynes methods require economic decisions. His theories are guaranteed not to work as intended anyway.

There is no objectivity in government decisions. Constant stimulus has destroyed our free market system. Political power has replaced price in its rationing role. Our economy has been destroyed. So, the economy will crash, just like the pilot’s jet would have crashed had he flown full speed on his flight from San Antonio to Denver.

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The Case For Deflation

Inflation is the current fear. That is fine for mainstream economics. But, thinking is not allowed in economics. First, deflation is not bad for an economy. Inflation favors the wealthy, government and others who have borrowed. Deflation favors the working class. In a free market, economic power naturally shifts back and forth from one sector to the other.

Deflation occurs naturally when the productivity of labor increases. Inflation is created politically.

When power starts to shift in the direction of the working class, the upper class can and does create inflation politically as a means of maintaining its advantage. During the period between 1873 and 1879, prices dropped by nearly 3% every year, yet real GDP growth was around 7% during the same time period. However, despite this economic growth and the rise of real wages, historians have called this period “The Long Depression” because of the presence of deflation.” Investopedia

Prices dropped profoundly during the 1870s during a long period of economic growth. Real wages increased significantly. At this time procedures for enhancing economic activity by way of “stimulus” had not yet evolved. A degree of economic power did shift to the working class for a while.

In our modern era, the Federal Reserve has been fighting deflation since the Reagan
administration. Increases in the productivity of labor have been monumental. Yet, real wages have stagnated. Profit margins of corporations have increased. Prices have been very stable until recently. This is no accident. The working class has been robbed of the productivity bonus it would have received had prices been allowed to fall. This has all been accomplished politically.

Now it is politically expedient to create inflation as a means of shrinking the debt size of heavy borrowers.

Deflation has been defeated for 40+ years but deflationary forces are still present and have increased. Unlike other economies where runaway inflation has taken hold, the United States has massive production capabilities which can be used. An enormous amount of demand has been in non essential goods and services. There are also plenty of substitutes for all we buy and consume. Creating ever rising prices will be an enormous task.

One of the many negatives with respect to stimulus is that resources become more and more inefficiently allocated over time. Recessions occur because businesses are not getting the profits they expect from what they are currently producing. Recessions disappear and business finds more productive ways to use its resources. Inflation prevents this from happening.

In economics, if we prevent what will occur naturally, what would occur naturally occurs
anyway eventually. Notice, I am not citing numbers or pointing to lines on charts. I don’t need to. Instead, I think things through and as always am focused on what causes numbers to be what they are instead of thinking the statistics just happen to fall into place the way they do.

So, I am expecting things to reverse. Inflation will give away to deflationary forces and the overall price level will fall. Lets see what happens.

We are facing a depression, not a recession. Deflation, honestly is more likely.

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Acceptable Alternatives To The Truth

In explaining economics and politics, I have a complete advantage over all others who are doing the same thing, simply because I do not believe lies. That is not an unfair advantage. Anyone else can do the same thing. In politics, although the truth is in everyone’s tool box it is never used. Any politician who tells the truth is at an immediate disadvantage.
When talking about politics I start by knowing I am not hearing the truth regardless of its source. All communication in politics is focused on getting results or advancing an agenda. Others who believe they are hearing the truth, even out of their favorite suportees mouths, are generally wrong in their assessments from the outset.
That is in fact the case with mainstream economics. Study mainstream economics if you want to be highly adept at understanding a system that does not apply to or even exist in the real world.
John Kenneth Galbraith was a brilliant 20th century economist. Sure he was a liberal but he was an absolute master at observing what was going on in the world of economics, that was out of the visual field of everyone else. His solutions were misguided but his observations were right on
.In his classic 1950’s book, The Affluent Society, he introduced the term conventional wisdom. Today that term is used constantly but the gravity of its meaning has become lost. Conventional wisdom works out to be an alternative to the truth the vast majority of the time. Conventional wisdom is not what is true. It is a belief system the majority are comfortable with.
Policy is always based on conventional wisdom rather than what is factual or even logical. Often it is a means of adopting a lie,hoping it works or for the best, because the truth is too troubling to look at.
What is today’s conventional wisdom? Probably the biggest is the insistence by virtually everyone is  that the stock market is in a bubble created by investors bidding stocks up. It is quite unsettling to entertain the idea that we don’t have a bubble but a political agenda that provides affirmative action for stock prices. Bubbles burst. Political agendas fail but they don’t bust. What are political agendas? Political agendas are what politically powerful people convince congress that government should do. 
I doubt that I am alone among economists as seeing QE and fiscal stimulus as not only unnecessary but completely destructive. The fact is that you cannot get paid as an economist unless you advance the conventional wisdom the modern discipline is based on. For that reason, the conventional wisdom that stimulus is needed and even that the Federal Reserve is an important necessary institution are standards that are
What conventional wisdom comes down to is a reasoning of choice that displaces the truth. The popular ideas that circulate in the echo chambers, both liberal and conservative, are bits and pieces of conventional wisdom that morph into sound bites. So, when does anything other than conventional wisdom enter the national dialog. That happens when suffering caused by policies based on yesterdays conventional wisdom begin failing.

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