The Economy…

Laws of Economics

Updated October - 2004

This is probably one of the most misunderstood segments of life today. Let me begin by defining what we call money. For the sake of this paper, I’ll use currency as the all encompassing means of exchange, comprised of money and notes. To differentiate between money and notes, we’ll define money as paper receipts for something tangible like silver or gold. The receipt is, on demand, capable of being exchanged for the amount of silver or gold represented on its face. Exchanging these receipts for goods and/or services means the recipient is getting a tangible asset, if he chooses to convert the receipt/certificate into silver or gold. The note, on the other hand, represents a collateralized agreement to pay an agreed upon amount to the bearer in exchange for his having advanced goods and/or services. The collateral usually consists of goods purchased with the note and a claim against any other assets tangible or intangible the one signing the note might have. That can include future income.

In America today, we no longer use money as our medium of exchange. We use notes. Federal Reserve Notes (FRN’s) to be exact. These notes are collateralized by what you call, “your property” to the same legal extent as the note you signed to purchase your car, home or anything else you may of signed a note for. Granted, the government, by issuing bonds, whatever, gets the Federal Reserve to print said notes, but just as if you signed a Power of Attorney granting someone the power to borrow on your behalf, the burden for repayment rests with you / us and your / our assets tangible and intangible are the collateral. That’s what is called the National (but in reality it’s Personal) debt which currently amounts just under Seven Trillion, Five Hundred Billion ($7,500,000,000,000) exclusive of interest and climbing at an unprecedented rate. The annual interest is just under Five Hundred Billion ($500,000,000,000) Remember; the GOVERNMENT DOES NOT OWN ANYTHING. It’s ALL OURS in that we paid and pay for all of it. The government can go into debt but the collateral it puts up is YOUR tangible and intangible property. Consider, if there are 275,000,000 of us, then just the interest if every man woman and child were paying it comes to $1,818 annually. More realistically, lets assume 100,000,000 of us are working and paying taxes. That pushes the bill to $5,000 each annually. I trust you have more faith in the Humanist/Socialist in control than I do. Ignorance was bliss, wasn’t it?

It’s as if you went to a bank and borrowed to buy a car. After the transaction was made; the bank would have a note you signed pledging the car and everything else you own including a percentage of your future paychecks as a guarantee of repayment. Rather than stick the note in a file cabinet, the bank gave it to a customer in exchange for something that satisfied the return they wanted for said note. That customer gave it to someone else and they passed it on and it continued to be passed on. Even though it is in circulation, it still has your signature on it and you are still obligated to pay the amount due. In this case, if someone knocked on your door demanding the collateral you pledged, you could refer them to the bank by proving you had paid the amount due on the note to the bank. If you had given your payments to a third party and they did not pay the bank, well then, you are still liable for the outstanding debt. This is the condition that exists with the FRN’s we call money. If the Federal Reserve or anyone else holding a Federal Reserve Note (foreigners now hold about 40% of them) comes knocking on our door to collect the amount due on FRN’s we can’t refer them to the government stating “but I paid my taxes.” They’ll tell you, that’s your problem. Your representatives didn’t pay the balance due on the note. YOU ARE responsible for the amount due, including penalties and interest. When the situation gets tight for your “employees” in government, rather than do what a responsible citizen would do and tighten their belt and get our/ their finances in order, your “employees” get the Federal Reserve to print more notes (FRN’s) to pay the interest on the notes they have already signed. THAT IS THE DEFINITION OF INFLATION. It has nothing to do with the cost of wages, oil or anything else. Those are part of the costs of goods or services sold (COGS). If the cost of oil or anything else necessary to produce a good or service goes up, including taxes, so does the selling price as all cost are in the selling price.

Now that I think of it, that lie the government keeps telling us about businesses paying taxes is just that, a lie. No business ever paid one dime in taxes, and stayed in business very long that is. Businesses act as tax collectors in that all the taxes imposed on them are passed on to YOU. The consumer pays all taxes. Consider, if the government did not charge businesses any taxes and made you and I bare the burden directly, then businesses could and would reduce the prices of their goods and services proportionately. Prices would go down so the burden on us is no less than if the business paid the taxes. It’s good politics (wins elections) to tell you the government is going to tax businesses and not you but that’s all it is.

Consider: Those in control of the government incur debts. Five hundred billion ($500,000,000,000) for OFFENSIVE weapons (You don’t honestly believe they intend to put them in a warehouse just in case someone takes an aggressive stand do you?) $550,000,000,000 for “Medicare” just to name two debts. These debts are paid with “created” Federal Reserve Notes (FRN’s). Because these notes are new on the street, they are accepted based on the value of the FRN’s in circulation. However, once it is known there’s a lot more of them in circulation, the value of all of them goes down proportionately. That’s when you and I find out about it. You could call it a tax, in that the practice has the same affect as taking your money in taxes, that is, it reduces your buying power. It is a criminal act resulting in the same detriment to society as if you or I counterfeited money.

Anyway, our “booming” economy has virtually nothing to do with the creation of more wealth on our part. It relates to the stupidity of foreign producers to accept these notes in exchange for real or tangible goods. Consider; if you owned an automobile dealership and I came in to purchase a car from you and I offered you notes I printed that could only be redeemed in my business, would you take them? Probably not. That’s exactly what foreign countries are lining up to do. Go to any mall, “world class” grocery store, automobile dealership etc. etc.. Check out where just about everything is made and it “ain’t” America. We’ve got things, they’ve got paper.

Sounds good doesn’t it. But consider the down side. American merchants are at the mercy of foreign producers. Countries like Socialist China know that and their Economist know exactly what they are doing by exchanging goods for paper. As our economy becomes more and more reliant on China producing; by controlling the prices and supply of the goods they produce, they to a great extent control our economy. Pure socialist countries (government ownership/government control) like China, use the threat of persecution to stimulate their capital (citizens) to produce. They have no regard whatsoever for their citizens. Citizens are, for lack of a better way of putting it, capital items, like a tool, to be used while they’re productive and disposed of when they no longer are. Medicare is taking us down this same road. (See the Medicare section.) This system will always collapse from within, like Russia did, if no one gives the government the opportunity to sell the sweat of the citizens brow. In our case, the government we serve, knowing this, it opens trade with totalitarian countries like China. This not only perpetuates the Chinese Command Classes existence but helps finance their agenda. Consider, if the government we serve had the same power over us that the Chinese Communist have over their “capital items”, we might find it is no different. Thank God for the Second Amendment. Anyway, other countries that determine getting American FRN’s for their tangible goods is a good deal, they’re going to get in trouble, like Japan did. Japan sold in unprecedented volumes to America and the Japanese were paid in FRN’s. They were and are useless in Japan and because they had all but barred American companies from selling in Japan, (kept a balance in trade) they couldn’t turn the FRN,s into tangible goods for the Japanese home market.

The Japanese found themselves with a glut of FRN’s that they could only spend/invest in America. Worked for us. They built and are building factories, employing people and so on: But on the home front, their economy all but collapsed. We have had to bail them out or run the risk of losing a producer we had become dangerously reliant on.

But wait a minute! Maybe they aren’t so dumb. Paul Craig Roberts, a real American and former assistant secretary of the U.S. Treasury writes…”The US might be a superpower, but it is not a country that controls it’s own fate. Delusion does. The truth of the matter is that “foreign investment” in the US today consists of Asian central banks, mainly Japan and China, using surplus earnings from massive trade surpluses to prop up the US dollar by purchasing US government bonds.

Propping up the Dollar, undermines investment in factories or businesses that produce jobs for Americans. Stephen Roach, chief economist for Morgan Stanley, reports that in 2003 net investment in the US business sector was 60% below the level in 2000.

The US has become the world’s largest debtor, in hock to foreigners for one-fourth (1/4) of our Gross Domestic Product. The ratio of US external debt (what we owe foreigners) and US exports is approaching the crisis ratios of banana republics.

It is inevitable: America’s mounting debt will produce a crisis. The dollar’s value will plummet, and US living standards will drop. Everything will become far more expensive for Americans.

The perilous condition of the dollar is one of the reasons Bush invaded Iraq. What keeps the overvalued dollar up is the fact that it is the currency in which the Middle East bills its oil. Every country ha to purchase dollars in order to pay for it’s oil, and these purchases keep the dollar afloat.

Just prior to the invasion, sanctions on Iraqi oil had run their course and were about to removed. Saddam Hussein intended to bill Iraq oil in Euros, which could have started the abandonment of the dollar by oil producing countries. INSTEAD OF FIXING OUR ECONOMIC PROBLEMS, WE STARTED A WAR.”

The politicians will do nothing about it because it creates an illusion of prosperity. A prosperity that must be held up by making other nations look down the barrel of our guns. Listen to the speeches on how “great” the economy is.

This “booming” economy is fragile and by any reasonable accounting standards, bankrupt. From what I’ve read, the average family in America has cash reserves for less than a two week period. Instead of measuring real wealth, (the amount of assets you have after paying off your liabilities), we look at wealth as the ability to make the payments on our debts. You’ve heard that banks put in drive in windows so that cars can meet their rightful owners haven’t you.

Consider the worlds 2nd largest con game; the stock market. Government economics ranks as no.1. Amazon.com is trading for untold amounts of money and they have never made a dime. In fact they lose millions every quarter. Using these out of control dreamed up multiple (projected income) standards the Stock market uses to measure today’s wealth is not only stupid but unconscionable. That’s just one of many. Hey! I’ve got a bridge in Brooklyn to sell you.

The solution goes beyond just keeping your own production and consumption in balance as, like it or not, in today’s world, the actions of others will impact your personal situation. Say you have a store in an area that is largely occupied by workers for the same company. The company has a lay off. You in turn lose customers as the people laid off are no longer consumers. That is real trickle down economics. On the other hand, the place to start is where you have the most control: Yourself.

If we are to survive and turn the tide back to Constitutional government(which is the road to prosperity) it mandates your participating in the process. Voting Republicrat (what’s the difference) doesn’t cut it. Run for office and/or vote the man. We must replace the contract thieves in government with people of integrity. People who would consider the redistribution of wealth (after they got their cut of course) not a criminal act, must be thrown out of office. Like James Madison said…”this Constitution is for the governance of a moral ( another name for responsible) people only. It is unfit for the governance of any other.” We’re certainly proving that bit of philosophy to be true.

Here’s the real world of economic security. You cannot consume more than you produce (using the government to steal it for you is NOT producing) without going broke: Period.

You probably don’t realize it, but America has forsaken its glorious Constitutional government for Fascist Socialism (private ownership/government control). Hitler and Mussolini opted for that as they realized that if you give the people the illusion of ownership they would perform much better than slaves to the State. It worked, until their day of reckoning at least.

We don’t own anything, we rent it all from the government. Neo Con, Neo Nazi what’s the difference? They’re both National Socialist.Taxes, regulatory cost, licenses, permits, fines etc., they all should be called “rent” payments. You don’t believe that! Don’t pay them and see what happens to the assets you thought you owned.

I should touch on NAFTA, GATT and the WTO before I close this paper. Tell me, do you honestly believe these agreements have anything to do with “free” trade. Common sense should tell you that if your intentions are to lift trade barriers, leading to free trade, the pages of the agreement should be less, not more. If I set you free, what else is there to say but, you’re free. These agreements represent internationally regulated trade. As far as America is concerned; agreements like the IMF, U.N., and all the other political entanglements we are party to, they serve to bring us one step closer to membership in a one world community (Comintern’s what the Communist called it). Why? Because all to many of the powers behind the government (force), we serve including politicians, bureaucrats, industrialist, international bankers etc., do not pledge allegiance to America and its forsaken Judeo-Christian culture. Their allegiance is to empire (a network of amoral politically entangled governments) to a point where there is no room for the sovereignty of America. Who will be the Emperor? That is a question with an answer spelled out in the Bible.

The Declaration of Independence, Constitution, Bill of Rights and Monroe Doctrine can be printed on about 8 to 10 pages. NAFTA, as I understand it, takes in about 15,000 pages. GATT takes in about 27,000 pages. I don’t know the extent of WTO but I guarantee you it’s right up there with the others. Talk about fine print.

The Republicrats are banking on your not asking questions but simply believing the same old lies people like them have sold to populations for centuries and centuries.

Read President George Washington’s Farewell Address. It will help you see the reality of what is happening to us.

Economics: God wrote the laws. Live within them and life can be lived to the fullest. Breach them and you have today’s America where fear reigns in all aspects of life. Strangely enough, we turn to the one’s who created this mess for the solution. The Constitution Party is the only one governed by God’s law and not writing it’s own trying to get around them.

 

 

 

 

 

 

Wildey's Views

© 2004