Death of the Nation — Part II

The idea of a nation died or became obsolete when the few embedded in the financial and big business sector lobbied for deregulation and globalization and successfully took over control of mankind’s self-created circulatory system — money and debt.

 

Just as huge multi-national corporations are used as a shell game to make those at the top millions and billions through stock options and bonuses, so now nations are used as shell games to make a few well-connected and networked individuals billions and trillions.  The few that are well-connected have managed to obtain positions and control in key national organs — the government, the media, the Federal Reserve, the lobbyist machine, the banks, the investment banks, the legal framework, and the huge multi-national business conglomerates.  Money, debt, labor, innovation, all flow fluidly across borders with the single simple-minded objective to increase profits that in turn primarily increase the wealth and power of the few.  And they have at their disposal the military should that card need to be thrown down.  The nation is dead and obsolete — an empty shell gutted and sold by a few legalized criminals.

But there is an important  difference between the free-flowing laws of nature and that which mankind has defined as his laws of free-flowing capital and markets.  The clouds, winds, and oceans derive their free-flowing nature from the powerful sun.  The massive chunks of continents break free to create ocean expanses and collide to form towering mountains because of the Earth’s internal heat dynamo.   The Earth, our solar system, our galaxy, all galaxies, fly effortlessly through infinite space at incredible speeds because of a uncomprehendable release of energy from the distant past.

In contrast, mankind has made the erroneous assumption that a piece of paper, an electronic bit, a coin, a piece of yellow metal, equates perfectly to energy created or expensed.  Mankind further “compounds” his aforementioned erroneous assumption with the idea that energy created or expensed can be borrowed to use now and repay later using incremental energy as a payment for the opportunity to use more energy now.  These erroneous assumptions are the reason a few have been able to siphon away power and wealth from the masses.  But, if you look to the true power behind the free-flowing forces of nature, you will see and understand that the power and wealth in the hands of the few is really an illusion and a myth perpetuated by our own erroneous assumptions.  These few don’t have power and wealth — all they have is paper, electronic bits, and gold-colored rocks.

How to Solve Unemployment in the United States

There is a common bullshit phrase you will often hear from high-priced consultants and “touchy-feely” human resources specialists — treat your employees like assets.  Well, I think if we took this idea literally we could solve not only unemployment, but also underemployment and a whole host of other issues like company and employee loyalty.

Companies currently classify employee salaries and wages as expenses on the profit and loss statement.  Despite what the consultants and human resource professionals say, as long as employees are classified as expenses they will be viewed by management, Wall Street, and investors as just that — expenses.  And expenses are something to be minimized so as to increase profits and cash flows.

My idea, which of course would be laughed at by accountants and the finance community, would be to actually classify employees as assets.  We currently classify products in inventory, buildings, technology, and many other “things” as assets, but people are treated as expenses or expendable.  The current tax code is written to encourage businesses to invest in assets as the depreciation on those assets serve as a tax shield on the profit and loss statement.  I argue that human beings should also be classified as assets on the financial statements.  The salary and wages are investments in those assets and will be depreciated like other assets enabling the company to enjoy a tax shield from its employees.  I realize there would be many arguments about how to calculate depreciation on human assets or appreciation, but I leave the details for the accountants.

This crazy idea would give upper management, Wall Street, and the investment community a reason to support companies that hire people, train them, keep them, and further improve them like other assets.  They will like the idea of a tax shield in that taxes will be reduced and therefore profits increase as well as cash flow.  They won’t care that the idea is philosophically correct.  If we want to be American-centric (given unfair trade), we could even say that only American citizen employees will be considered assets and all foreign employees will simply be expenses.  Wouldn’t that be interesting?

By the way here is a nice picture I took today with my cheap cell phone while thinking about this crap.

Our “Silent Great Depression”

I made a post a few days back regarding Mike Stathis and summarized some of his views, but I think the below short excerpt from a three-part article he wrote at the end of 2010 should be shared.  I provide the links to the three-part post below at the end of the excerpt for those that want to better understand what transpired during the collapse and what may happen in the near future to most of us ordinary American citizens.  Although Mike is a financial advisor and expert in his field, he writes in a manner such that the non-financial expert can comprehend his points.

Mike accurately predicted the economic collapse in great detail via a book he published in 1996 called America’s Financial Apocalypse.  In my opinion, and based on personal experience and intuition, I think he has and is hitting the nail on the head.  I am interested to know your thoughts on the below excerpt and if you have time also your thoughts on the three-part detailed post provided via the links after the excerpt.

Excerpt from “America’s Second Great Depression Year-end Update 2010 Part 1”, by Mike Stathis:

….”Instead of the severity of unemployment seen during the first depression, this depression will be characterized by chronically high unemployment combined with massive underemployment. Thus, full devastation of the real unemployment picture will be masked.

We won’t see bread lines as we did during the previous depression because Washington issues food stamps ( Tincup comment:46 million Americans currently on food stamps). But unless Washington decides to provide housing to the homeless, we will see tent cities similar to the Hoovervilles from the previous depression. We are already seeing this today.

As well, we won’t see banks close their doors because we have the FDIC which was created in response to the previous depression. But what good is money if its being printed continuously?

The inflationary forces building up will certainly create severe problems for the U.S. and the rest of the world since the dollar is the universal currency. All of this will put further downward pressure on U.S. living standards for many years to come.

The most harmful effects of America’s current depression won’t be due to a crisis. It will be only heightened by a crisis. The real devastation will be due to an accelerated transfer of wealth and jobs overseas. It will be a silent depression.

In a few years, the real estate and banking crisis will have cooled off and Washington will start reporting much improved numbers; numbers that will continue to be manipulated and boosted by deficit spending.

In reality, things will only get worse. Real wages won’t budge, inflation for basic necessities will continue to rise, and job quality will continue to decline. We are already seeing this now. It will be a silent depression because there will be no crisis. But the effects of this depression are likely to be more severe because they will persist for decades.

You won’t feel the full effects on any given day. If you’re in the lucky majority, you will go to work and carry out your life as usual. But you just won’t be able to make ends meet like in the past. Each year things will get worse so you’ll spend more on credit.

It will be more difficult for your children to move up in socioeconomic status because higher education is becoming an unaffordable luxury for the wealthy. Many younger Americans who are willing to take on the enormous debt burden required for higher education won’t be able to find jobs in their field. This will be true even for the most secure of majors like engineering, math and science.

Some Americans with math and science degrees will seek employment as high school teachers, due to lack of options. This will be an ironic fate, as America’s educational system has been designed to keep the people stupid, all while brainwashing them to accept America’s fascist philosophy. Some won’t have the skills of their counterparts in Asia.

Others will be pushed out of a career they prepared for due to the effects of unfair trade. Some will opt for a 1 or 2-year program in healthcare by one of the hundreds of for-profit colleges that understand America’s healthcare system is a gravy train. Others will work for Wall Street criminals and banking vultures; some naively, others not caring that they will be selling their souls to the Devil.

Millions will be stuck in slave labor, working for low wages and no benefits. But they won’t be working in factories churning out goods for the global economy. They will be working in service jobs, tailoring to the needs of America’s wealthy.

In fact, I predict in coming years we will see an ironic trend in the U.S. Instead of U.S. consumers speaking with Indians in Bombay for customer support from U.S. corporations, Indians will be speaking with U.S. citizens who will provide them with phone support.

Many Americans will never realize they lived through America’s Second Great Depression, because the effects will be spread gradually for many, many years. Most Americans will never be able to fully retire. They simply won’t have enough money to live on. Many will end up selling their home to pay for medical bills, even though they have health insurance. Others will have a much worse fate.

What the “experts” don’t get is that this depression will be much more difficult to reverse because it will be gradual. There will be no urgency. But the effects will be cumulative.

Many will wake up one day and realize that they just can’t make ends meet; they’ll have very little if any retirement assets. It will be a continuation of declining living standards to a point that could lead to some major permanent societal problems.

Economists have claimed that the depression in the 1930s was caused by the failure of the Federal Reserve to open up the currency printing presses. This is not at all true. You cannot print your way out of a recession and you cannot print your way out of a depression.

Although there were certainly numerous causes, America’s Second Great Depression was caused by use of a fiat currency, unfair trade policy, cronyism and years of mismanagement by Washington.

Today, the criminal Federal Reserve Bank continues to kick the can forward by printing trillions of dollars. This is having significant adverse effects, not only in the U.S. but throughout the globe. Instead of deleveraging, the global bubble has been reflated as discussed several months ago. We are now seeing global inflation begin to take off. [55]

Washington, Wall Street and their many hacks have even made preposterous claims that the recession ended in June 2009. Of course this is a complete fabrication.

I want to remind you that a recession is caused by an oscillation of the business cycle from peak to the trough. In contrast, a depression is a long period of social, economic and financial decline. Within a depression you are likely to see two or more recessions. But this merely accounts for the economic consequences of a depression.

The social consequences found within a depressive period are a reflection of the devastating effects of chronic economic catastrophe. But the useless media has used the term “Great Recession” in order to downplay the true severity of this period.

Haven’t you had enough lies, deception and hype from the media?

Despite what some of you may think, there is NO ONE in the media, not a single person that truly understands what is going on AND is committed to helping you. That includes all of the perma-bears and gold bugs who have been preaching doom for decades. If you think otherwise, then you haven’t been documenting their track records.

The contrarian crowd is trying to scare people so they will buy gold so as to pump up the price. At the end of the day when these delusions of gold $10,000/ounce and hyperinflation have NOT materialized as salesmen and hacks like Peter Schiff, Marc Faber and others have insisted, the media knows that its audience will run back into the arms of Wall Street.

You will never win if you embrace extremes. Neither the perma-bear or perma-bull market extremists offer you anything other than a chance to lose more money. Never forget that. So if you are unable to navigate an up and down market, you might be best to remain on the sidelines because even many of the big boys have gotten thrashed over the past two years.

If you pay attention to the media, you are sending them money because they sell ads based on the size of their audience. And because Wall Street buys the ads, the media serves their interests by flooding you with extremists and other hacks. Thus, by paying attention to the media, you are serving as an accomplice in your own exploitation.

I leave you with my best piece of investment advice. It’s one of the rare exceptions of investment advice that never changes.

BAN THE MEDIA.

DON’T READ THEIR NEWSPAPERS AND MAGAZINES, AND DON’T TUNE INTO THEIR TV AND RADIO SHOWS.

If you don’t follow this advice you will be just as responsible for your demise as the media and Wall Street.”

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