Capitalism In America

Capitalism in America Part I - Globalism and the Demise of Free Market Economy Capital seeks the highest rate of return. Why invest in the US when China is growing GDP at 10%, Brazil 6%, India 8%, it's a no brainer; exactly. Go with the flow. Capital seeking the highest return seeks Globalist control, or does it?

Milk Toast Capitalists Case in point; Warren Buffett. Saw a presentation he gave on You Tube, great guy, lot's of money, couldn't be a better replacement for Letterman (as I like Lenno and hope he sticks around). Although he doesn't know the meaning of being a capitalist; what it is to INVEST rather than allocate funds. If I were a widow or an orphan, this is the guy I would want to watch my money. As misers go he's top of the list, Scrooge has nothin' on this guy. So, why am I being so hard on Mr. Buffett, you might ask. If we depended on Mr Buffets brand of Capitalism we would never, read again; NEVER, have innovation; ...what? Say again; INNOVATION. This is the crux of the issue. The KEY to what made, and will keep The United States of America a great nation. Who would have in invested in Ford's first assembly line, Edisons' first light bulb, Alexander Bells' telephone – NOT Buffett. Chocolate; yes, Coke; yes, Insurance (read ponzi scam); yes, Buggy whips; (do they still make those) probably a yes there as well. NO; Plasma TVs, DVD's or IPODs. NO; hang gliders, G5's, satellites or stealth airplanes. Do you see where this is going. Mor to the point Buffett has approximately $26 billion invested in US banks with anticipation of making a profit based on a taxpayer financed bailout. So this is Capitalism in twentieth century America, this is the role model we are given to emulate as aspiring entrepreneurs or on a more basic level; citizens in a free market economy. And is this not endemic of the larger economic picture, the institutions controlling banking, lending and investment.

The Grinding De-Evolution of the Democratic Dream (thank you Bruce Cockburn) Back in the day the ideal was when a steelworker in Detroit might deposit money in a the Main Street Bank where it might be lent to an automotive company to re-tool or expand. Now days the bank seeks a higher rate of return loaning the money to build steel mills in China. Would the steel worker knowingly deposit money, “invest”, at low interest return with a company, a bank, that eventually seeks to undermine his livelihood? This is a hypothetical example that has played out over the past 40 years in the US and this does not take into account the unfavorable tax structure put in place by our own elected representatives. So if the return at the bank isn't so great, how about the stock market? Our steelworkers retirement plan has been buying the company stock for 30 years and in a few years he will retire. As the market reaches a new high the back office traders at the same brokerage that holds his retirement account also handles managed accounts that trades as a hedge fund under a different logo. The hedge fund borrows the stock from the vast pool owned by the steelworkers retirement fund and sells it into the market causing the price to drop. Meanwhile the “offshore” division sells more shares it does not have (or able

to borrow) – a naked short – and outright panic ensues. The story ends happily for the hedge funds that are able to buy the shares, even the fictitious ones, back at 10 cents on the dollar, while the retirement of tens of thousands of workers has been stolen – YES, STOLEN, as in THEFT. It did not disappear, the capital was transferred from one account (in this case thousands of accounts) into a few (very privileged) accounts. A hypothetical example, certainly, and exactly what has happened. THIS is capitalism in America? No, this is not capitalism. Let's review the sequence of events for a moment. Steelworker works 30 years buying stock in his (employers) company. Assume for a moment this person has two options available to him: 1) ...hold his stock and sell his shares as needed when he retires, or 2) loan the shares to a hedgefund that will use the sale to precipitate a market collapse and return the shares to his account at 10% of the original value. As with the example of bank deposits, it is obvious that any person in their right mind would not loan their own assets to be used against them. In both cases the Bank and the Broker assume authority to use the funds or stock in their best interest even if it is against the will of the investor. This is exactly the ANTITHESIS of a Free Market.

Extrapolate: FFWD 2012, Fractional Reserve the Root of All Evil The Pundits all tell us where to invest, The Buffetts, the Fabers, the GS's the JPM's where to put our money to avoid the collapse. New ETFs to track the BRICs, gold, interest rates; a smorgasboard of financial products. The new and improved financial products, not to be confused with the old financial products; where past performance does not indicate future return. AGAIN, why would any American invest in a system that will undoubtedly undermine its' own livelihood? The nearest sane rationale is most likely: “because it is the only system available”. The only system available, let's look at the foundation of that system. Money, currency, the medium of exchange of any economic system. Without every citizen in this country understanding the function of money and how it is created we will undoubtedly repeat the mistakes of the past. There is a mandate in the Constitution for all currency to be backed by gold and silver. Ten there is the Federal Reserve (a group of private banks with European interests, not “Federal” at all) that was begun on the “fractional reserve” model when in 1913 congress gave the FED $750 million. Through the seriously flawed accounting practice of “Fractional Reserve Banking” which at the time required a 10% reserve; approximately $7.5 billion in US Dollars (Federal Reserve Notes) was created. A tidy sum in 1913, and from then until 1929 the participants in that fraudulent activity created an unprecedented stock market boom as well as consolidating control of 95% of the wealth and means of production in the United States. An in depth discussion of incredibly sinister implications of this relatively simple concept is beyond the scope of this essay. A very significant compilation of data has been assembled in the video, “The Money Masters” (link: ) and does well to explain the road we have been on since the inception of the Federal Reserve. To cut to the chase (no pun intended), when a dollar is printed or created in a computer without regard to financial backing, it causes the value of the other dollars in circulation to decrease; in effect the ones in control of the printing steal from those holding dollars. And there's that word again: “theft”. How much further can this road possibly take us. If the US economy implodes others are sure to follow, it will not be an isolated incident. And perhaps there are those that have a vested interest in this type of scenario where the end game is not monetary but one of political control. Global Warming anybody? Hell, even the hard asset guys are spouting guns, gold and glory waiting to see the gold price go stratospheric while the whole country melts down. Is this capitalism, is this a free market.

How can we become investors and not allocators of capital. How can we invest with our own best interest in mind, have control of the assets in the process so that we may choose to participate in a level of measured risk commensurate with return. A return that we or our beneficiary's will live to reap benefit that will not be confiscated by some mechanism of legal plunder (whether by government through taxation or the sanctioned commercial institutions) masquerading as a free market.

Part II - Taking War to the Beast The people on the front lines know best how to fight the battle. Over 300 members of congress have signed a Bill to allow insight into the transactions the FED has made, which are now the liability of the American taxpayer, with little progress to be shown. One of the fundamental tenants of the Declaration of Independence is “Taxation Without Representation”. It is “Representation” that is the root of the crisis because it is the poor, non-existent, or in most cases ADVERSARIAL “Representation” that has brought us to this point in history. Adversarial because in most cases our elected officials are working against the publics best interest. It is truly amazing how a few million of personal aggrandizement can result in billions and trillions in payoffs to the big players where taxpayers assume risk and private interest receives the profit. To share the blame equally, it is an “ill informed” public that is largely unaware of the fundamental issues confronting them on a daily basis. Issues that are largely ignored in Main Stream Media (MSM) which is owned and controlled by the Powers That Be (PTB). It is by the advent of the “internet” that we are able to communicate about actual events as they happen rather than waiting days or weeks to read about them in a broadcast or newspaper. It has also allowed an exchange of information that until this time been suppressed. Our first line defense is in our representation. For it to function we need an informed public. The validity if the information the public receives is critical, and on a more subliminal level the ability of a person to discern the validity of the information they receive. It is better to believe nothing than to believe that which is wrong (to paraphrase Jefferson), which even presupposes a differentiation of “right” and “wrong”. Why so many of our representatives are able to set aside the intrinsic understanding of “right” when the obviously “wrong” choice leads to instant gratification and an upwardly mobile career path. The error of the “wrong” choice has played out across the cumulative careers of most DC politicians since the FED was voted into existence in 1913 under very suspicious circumstances.

The Pain of War Cannot Exceed the Woe of Aftermath (Led Zeppelin) Before waging a war one should first weigh the moral and ethical and even financial motivations involved as it is usually financial motives crusading (for lack of a better term) as a moral objective that most wars are fought. If “Taxation Without Representation” sparked the Boston Teaparty and the American Revolution, what will be the consequences of “Inflation Without Representation”, “Bailout Without Representation” or the impending “Economic Slavery Without Representation”. The best offense is a good defense. Our best defense is in choosing the moral high ground; “We hold these truths to be self evident” that we are endowed with certain “unalienable rights”. If the battle is

waged with words and peaceful action, only then could we have any hope of winning and thereby minimizing the “woe of aftermath”. Our first line of defense of Representation would therefore need to be re-verified and re-established and it might best be accomplished by an immediate re-call of any elected official that is not responsive to the voting district in which he serves. Only with a unified front to the PTB in the House and the Senate can we press forward with the objective of deposing the usurpers of power and reinstating a Constitutional government. In order to achieve this we may ultimately need to rely on all of the faculties provided by our Ten Amendment rights; free speech, assemblage and possibly the right to bear arms. Of crucial interest is here is the right of free speech particularly, in regard to MSM and an accurate and real time portrayal of events as they occur. Perception shapes reality and by MSM we are presented with illusion on a daily basis to shape this reality. We need an objective presentation of facts so we can make decisions independently and the best venue to date has become the internet. It has allowed a real time depiction of events and a free flow of ideas to discuss actions and consequences. To carry this concept a step further we need a real time look over the statesmans shoulder to verify that the best interest of the voting public is being served rather than special interest. Within the application of the new technology we must apply them within the context of our Constitution, whereby the technology is used to promote and preserve our liberty not circumvent it. These should be the foremost issues in front of Congress today, not in trying to verify thousands of pages of the next bailout bill or design a new economic stimulus paid for by debt monitization. These efforts are diverting useful energy into no win situations especially from the stand point of the American citizens.

The Drums Will Shake the Castle Walls... Be part of the solution, not part of the problem. We have journalists that report on subjects they do not understand, lawyers defending the right of coercion and economists, brokers, financial moguls and pundits all striving to complicate issues that should be maintained clear and concise in terms of public consciousness. If our United States Treasury is given Constitutional authority to coin money, why then does the Treasury write an IOU to the FED in the form of a Treasury Bond, a debt instrument requiring interest to be paid, ultimately by the taxpayer, in exchange for Federal Reserve Notes in order for the government to pay it's obligations, when it could simply create the currency by using the power it has already been given, and in the process not incur the stifling interest to be paid a group of international bankers. The huge sums of money in interest payments alone on the national debt could ultimately be put back into the economy in the form of reduced taxes and funded pensions, a benefit that would be immediately realized by individuals and business alike.

...the Ring Wraiths Ride in Black Simple truth is obscured by a cacophony of legalese, misguided journalism, government handouts used to by votes, special interests, lobbying... the list goes on. Without the FED the government is held to accountability, a discipline based on the premise that it can't spend that which it does not have. Under the Constitution, if the US government decided to increase money supply there are means

granted to the Treasury so long as the currency is backed by gold or silver. It is possible that the principle could be expounded upon to allow backing by other commodities held in store by the government and redeemable by dollars. Such a plan would be in keeping with the original idea of a sound currency set forth by the founding fathers, which by its very nature precludes a “fractional reserve” banking system and the myriad modes of theft given the bankers to employ, and exactly why the very gates of Hell will be unleashed to prevent it from happening.

Take it Back, Take it back, Take it Back... Dawn rises on Wall Street, hours earlier US Marines taking position in the “”Too Big to Fails”, Investment Banks and “Major” (you know who you are) financial institutions. An army of accountants and lawyers led by GSA officials seize books and assets. The situation is repeated at the FED. As the Institutions are taken apart, National interests are separated from private. Trillions and quadrillions in Credit Default Swaps are left for the private institutions to settle in bankruptcy court, the Chinese Government having a keen interest in the proceedings. The private accounts of the perpetrators are not off limits when fraudulent financial gains are involved. Overnight the US has transformed back to the beacon of freedom it once was. There is still a long way to recover, but years of misery and suffering will be prevented so long as the members of congress realize who they are there to serve, who pays the bills, and exactly the clearly defined limits of their authority.

Part III - Epilogue The Story The Dog Poet Never Told Prophets don't prophesai what the do not see, analysts analyze only what happened and reporters talk about it. It is within the realm of a free people to act on their own behalf for the greater good. How can we create our own destiny if we do not see it. Like the Equilibrium Theory proposed by John Nash, there is a balance whereby benefit to all parties involved is maximized. We are currently living the antithesis of that theory whereby everyones benefits are being minimized. Nash advanced his theory in pursuit of trying to come up with an original idea. But the idea is not new. It has been carefully outlined and documented in the Constitution of the United States of America. Nash said it mathematically, Jefferson said it with words 175 or so years earlier. The idea persists because it speaks to fundamental truth that is self evident. As a society we need a cohesive vision of how to put our Nation back on a solid foundation. It cannot be done by divisive politics, deception or one world government. We must unanimously develop a forthright plan and advance the objective of restoring the United States as the democratic republic. Our primary objective should be therefore; to take back control of our financial destiny and in so doing abolish the FED.

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