Obama's Stasiland

16,500 IRS agents will enforce your medical well-being. But not one new doctor. Welcome to Obama’s Stasiland.

by Liam Scheff

President Obama’s putsch of socialized medicine has left many of us grabbing for the US Constitution, looking for the clause where the Federal Government is granted the right to force citizens to purchase a government product.

We can’t find it. Because it’s not there.

We’re asking, “How did this become law? Where are we headed?”

From the dreaded Wikipedia:

Between 1950 and 1989, the Stasi employed a total of 274,000 persons in an effort to root out the class enemy. In 1989, the Stasi employed 91,015 persons full time, including 2,000 fully employed unofficial collaborators, 13,073 soldiers and 2,232 officers of GDR army, along with 173,081 unofficial informants inside GDR and 1,553 informants in West Germany. In terms of the identity of inoffizielle Mitarbeiter (IMs) Stasi informants, by 1995, 174,000 had been identified, which approximated 2.5% of East Germany’s population between the ages of 18 and 60.10,000 IMs were under 18 years of age.

What happened when the Berlin Wall went up? The private sector died. Government became the sole employer. And the function of government was to invade, infiltrate and control the lives of the people. How did they do it?

They made everyone collaborators – against each other.

“While these calculations were from official records, according to the federal commissioner in charge of the Stasi archives in Berlin, because many such records were destroyed, there were likely closer to 500,000 Stasi informers. A former Stasi colonel who served in the counterintelligence directorate estimated that the figure could be as high as 2 million if occasional informants were included.”

“Stasi efforts with one agent per 166 citizens dwarfed, for example, the Nazi Gestapo, which employed only 40,000 officials to watch a population of 80 million (one officer per 2,000 citizens) and the Soviet KGB, which employed 480,000 full time agents to oversee a nation of 280 million residents (one agent per 583 citizens). When informants were included,

the Stasi had one spy per 66 citizens of East Germany. When part-time informer adults were included, the figures reach approximately one spy per 6.5 citizens.

When the private sector is destroyed, the government becomes the sole employer. When the government is the sole employer, competition is forbidden. When there is no competition, dissent is not acceptable. Hence, one spy per every 7 citizens.

“Full-time officers were posted to all major industrial plants (the extensiveness of any surveillance largely depended on how valuable a product was to the economy) and one tenant in every apartment building was designated as a watchdog reporting to an area representative of the Volkspolizei (Vopo). Spies reported every relative or friend that stayed the night at another’s apartment.”

Tiny holes were bored in apartment and hotel room walls through which Stasi agents filmed citizens with special video cameras. Similarly, schools, universities, and hospitals were extensively infiltrated. After the mid-1950s, Stasi executions were carried out in strict secrecy, and usually were accomplished with a guillotine and, in later years, by a single pistol shot to the neck. In most instances, the relatives of the executed were not informed of either the sentence or the execution.”

Obama’s State Medical Intervention Law has just been forced through an unwilling Congress despite opposition by some 70 percent of the American public. I think we can call that a coup, can’t we?

The “Law” will put insurance companies on the ropes, without examining a centimeter of the pharmaceutical corruption that is responsible for a nation of pharma-drug-addicts, popping pills that mostly don’t work, for conditions that mostly don’t exist except because of very poor, highly refined and processed industrial diet and lack of exercise.

Instead, the Federal Government will now oversee your life, your personal choices, your fitness, or lack thereof. It will do so by hiring not a single doctor. Not one. But it will hire over Sixteen Thousand IRS agents to oversee and enforce Obama’s Socialized Medicine.

Welcome to Stasiland.

There should be three words and one thought in the minds and on the tongue of every concerned citizen. Those words:

Repeal,
Repeal,
Repeal.

Protesting the Stasi

And vote all of them out, and then impeach the leadership. Legally, while there is still a legal option to do so.

Liam

12 Comments

  1. The fact they are using the IRS to enforce this makes it all the more clear that this in an indirect tax. Indirect taxes are usually described as “fees”. Our banks indirectly tax us all the time. Use an ATM machine, get charged $2, sometimes as high as $4. So if you only pull out $20, you are paying upwards of 20% in taxes on your money. That’s why I tell people if they have to pull out money from an ATM, pull out as much as possible each time, or pay a higher tax rate.

    Other indirect taxes are tariffs on trade goods. The government charges foreign companies a trade tarrif on their imported goods, those companies add that tariff to the price of whatever the product is and you and me, the consumers, pay for that tariff as an indirect tax.

    A direct tax is one where they come to you directly. Your income tax, which is also unconstitutional, is a direct tax. It comes right out of your paycheck in most cases. And depending on whether you buy your new and mandated health care through your employer or directly from a provider, you are paying either a direct or indirect tax.

    The lack of competition comes in to play from many different angles and can also affect your taxation. The first is of course the fact that you have to buy this insurance to begin with. For those who prefer holistic medicine, household remedies, Chinese medicine and alternative cures to what ails them, being forced to buy a product you don’t want and don’t use, is a direct tax. Your alternative medicine sources are not considered legally acceptable, and therefore your alternative medicine is not allowed to compete with the government for a share of your taxes.

    The cost of health insurance has, much like taxes, gone up considerably over the years, and just like taxes, rarely does it come down. For very large corporations able to efficiently write off much of their expenses and therefoe reduce their taxation levels, this new mandated system is not so much a strain. These companies will either write off a majority of these expenses come tax time, and/or they will pass on the costs to you as the employee in the form of lower wages. Lower wages being yet another indirect tax on you.

    On the flipside, so called Mom and Pop businesses, and smaller employers, who don’t have access to lobbyiests, and who do not qualify for many of the tax deferral methods employed by Big Business, are going to be at a distinct disadvantage as they assume the full brunt of this mandated system. They too will have to indirectly tax their employees by lowering wages as they tried to provide the minimum level requirements the government sets. And it is possible the government will require more and more coverages as newer “threats” to our collective health are discovered and therefore costs will continue to rise. Because the smaller businesses will not be able to compete, many will cease to exist, thus reducing competition. And any reduction in competition has always led to an increase in consumer prices, another indirect tax, and a lack of choice, such as we are about to see with this mandated health care system in short order.

    The last few years the world has discussed human generated global warming, and the need for a carbon trading system in order to charge people for the costs of destroying the planet. The theory is that if you make it expensive enough to pollute, people will pollute less. The same theory could be applied to health care. If they make it expensive enough, maybe you will avoid getting sick or injured. And much like this new health care system as Liam pointed out, they are not going to be providing better health care with more doctors and more options, but in fact more people will be entering the system now, and with no new doctors, will likely see a reduction in the quality of the care they receive as the system becomes strained.

    The energy trading, or what is to be known as Carbon Trading, is often referred to as the Carbon Credit Trading Scheme. That’s an interesting title. Why not just call it The Scam? This trading is going to be conducted on an international exchange, much like the stock exchanges of NASDAQ, AMEX and The New York Stock Exchange. Because everyone will need carbon credits to pollute, the prices will skyrocket with each trade. We already see this in the oil markets. Every time a barrel is traded, and it is traded upwards of 80 times before it reaches the gas station you get your gas from, the price increases. Stock exchanges allow people, or investors if you will, to speculate on the value of commodities. Speculation is the same thing as gambling. Some win, most lose. And the House always wins.

    As an example, consider the traders themselves. They charge a fee for every exchange. Thus the more trades that take place, the more money they make. They make money whether the price goes up or down. The carbon trading system uses exactly the same system. And the people who are founding these exchanges are the very people heavily invested in convincing you that this all for your own good. Al Gore is one of the biggest players, creating his own trading exchange and potentially looking forward to making billions if not hundreds of billions trading in an imaginary product.

    There was a story that I read about a family that took themselves “off the grid” by going out and converting their home to run on solar and wind, and alternative clean energy. The took out a mortgage, spent their savings, and paid roughly $80,000 to have their home no longer run on dirty energy. For their efforts, they ended up reducing their carbon pollution levels by one ton per year. One ton is the unit of carbon trading, like a barrel of oil. As such they were entitled to a single credit, worth about $29. A carbon trading company offered to buy this credit for $29, charging a fee of about $13 for the trade. So the family enjoyed a very modest $16 return on their $80,000 investment to save this beautiful world from a single ton of carbon pollution. Very noble indeed. It’s also interesting to note that most energy companies that provide the connection from the local power grid to your home often charge a monthly fee to you regardless of whether you even use it. The connections running to your house are not even your property. Thus removing them is not allowed. So the family that “saved” $16, will still likely find themselves receiving a monthly energy bill, even if the bill contains no energy usage charges.

    Our government is struggling to pay its bills because we are engaged in endless wars, borrowing more and more money to pay for everything including those wars, and cannot collect enough taxes the traditional way to pay for all the interest on the loans they take out from banks. Thus they need new sources of revenue, and revenue for a government comes in the form of taxes. Direct or indirect. This is why we are suddenly seeing a whole new list of new schemes to take money from you and deliver it to the government to pay for everything they provide to you. Even when you say you don’t want it, as 70% of Americans made it clear that they do not want this mandated health care system.

    Everytime the government has ever needed more money to pay for things, they have always resorted to taxation, and in most cases to methods not allowed by the Constitution. This mandated health care system is just the most recent example. They did not have the Constitutional authority to create a direct, unapportioned tax when they created the Income Tax in 1913 at the behest of bankers. They did not have the authority to seize everyones gold in 1933 (Ironically the same time Hitler came to power) when the United States found itself running out of gold reserves. And when they took they gold, they paid less than what it was worth, thus using an indirect tax when obtaining it. And later when they “allowed” you once more to buy your gold back, they had raised the price, thus creating yet another tax. Social Security and Disability were also likely unconstitutional as well. And both involve a direct tax on you as well.

    With our government going broke trying to pay back loans to the bankers, you can bet this new health care system won’t be the last indirect tax or direct tax on you. Many more schemes will arrive in the near future.

    • Unbelievably great post, Bill. I’ll look up all the stories within for further reading.

      On this:

      “With our government going broke trying to pay back loans to the bankers, you can bet this new health care system won’t be the last indirect tax or direct tax on you. Many more schemes will arrive in the near future.”

      This is the blood-chilling feeling you can’t help but to have if you’re paying attention. We’re not ‘pulling out of the recession,’ we’re taking a breath before the depression hits.

      Diocletian was the Roman emperor who was saddled with the prospect of a fading empire; he sub-divided the land and placed sub-rulers in every corner. He expanded bureaucracy to the point of communist countries. He successfully increased a formal professional soldiery along the frontiers (where there had been as-needed militias); this too taxed state resources.

      He wanted to build, and did so.

      And so, taxes increased and increased (from an online encyclopedia):

      Diocletian undertook an ambitious building program, which included the enormous Baths of Diocletian at Rome and his palace for retirement at Spalato (modern Split) in Dalmatia, and he also encouraged his colleagues to sponsor public works. This program, with the demands of the bureaucracy and the army, severely strained the empire’s finances, and Diocletian undertook a complete reform of the tax structure to meet these needs. His new system was based on the establishment of units of approximately equal value of land or of living things: that is, the unit of land (a jugum) could equal 20 acres of first-class plowland, 5 acres of vineyard, or 225 olive trees; or the head unit (caput) could equal the labor of one man, two women, or the sale value of a given number of animals. The value of the nation’s resources was to be reviewed periodically; and the emperor and his advisers, after determining the national budget, each year could then set the tax rate per jugum and caput.

      A steady debasement of the coinage during the 3d century had undermined all public confidence in the monetary system. Diocletian instituted a complete currency reform, and a uniform currency for the whole empire was devised. It appears, though the details are obscure, that this reform sent prices skyrocketing, probably because much of the old coinage was still in circulation and was now suspect. In any case, the desperate plight of soldiers and bureaucrats, who were on a fixed salary, forced Diocletian in 301 to issue an edict setting maximum prices for almost every conceivable article and service throughout the empire. The penalty for nonobservance was death. The efficacy of the measure appears to have been disappointing and the need brief. The extant fragments of the edict are of immense value in calculating the standard of living in the Roman world.

      He bound land-owners to their legally and with promise of severe punishment for abandoning the Empire for a lower-tax zone. Workers could no longer set out for greener pastures; citizens had to stay in order to pay. He increased taxes to the point of ruin for everyone who owned anything. The government became the largest employer through the expansion of its managing, collecting, administrating bureaucracy. The empire survived for another 100 years, but was ground into a serfdom, laying the grid for a feudal Europe in the middle ages that stretched through to, well…Adam Smith and America in some ways.

      We’re tilting inexorably into the Diocletian era of the empire…I want to run for the hills, myself, and find a plot of land. The only solution/s I see are for America to re-take much of its manufacturing back from Asia (China, Korea, Singapore, Vietnam), and once again become a country of production, not just of commerce (sales). If we’re going to survive as a country, we’ve got to produce again, otherwise we’ll consume and consume, and consume, and become more and more helpless in the management of our own lives, relying on a broken and corrupt bureaucracy to tell us how to live, and to tax us for the privilege.

  2. The issue of consuming and sales as opposed to actually manufacturing and creating things reminds me of the warnings I gave to friends who wanted to invest in the Internet Boom, or Bubble during the 90’s. I first warned, do it only briefly, not as a long term investment because I understood bubbles, but I also warned emphatically not to invest in any company that didn’t produce a physical product.

    Later when the bubble collapsed, nearly every business that offered only services and created nothing physical, went under. Those that were making internet switches, routers, video cards or whatever, actually owned tangible property, so the business, or rather the stock, was based on something tangible. I explained to them that there is no real mechanism, due to the fact the Internet was, and really still is, a new technology, to fix a price on non-physical goods. I said that basically so many of these companies were a bunch of chairs, desks and computers in a leased office space. So if the stock was valued at $500 a share, how do you collect if it goes under? Once you sell the chairs, desks and computers, you’re still going to come up short. Whereas a company like Lockheed, or Boeing, have buildings, land, aircraft, tools, machines, etc. They can sell off assets to cover the stock and the stock price is closely valued to what the assets are worth.

    Now America has sent its manufacturing overseas along with quite a number of service sector jobs like tech support and customer service. This was all our bread and butter. Whole industries that were once parked here in America that are now parked elsewhere in other countries. It would be one thing if we had invented new technologies and created manufacturing based on those new technologies here in America to replace those jobs sent overseas, but we didn’t and we haven’t.

    When you couple that to the Roman example above, you have to understand that when the Federal Reserve prints money, every bill in circulation weakens the value of the dollar. We already see that other countries are shying away from investing in the dollar, and thereby not investing in America. Unless we have foreign countries willing to back up our massive loans that we take out to pay for everything, the dollar will continue to weaken because we will need to print even more bills to pay our debts. Germany after World War One did this. Look up the Weimar Republic and the currency devaluation and you will see what happens when a country has more debt than it can cover, a lack of jobs and industry and how it deals with that. They just print more and more money. It is the Weimar Republic that gives the example of citizens taking (literally) wheelbarrows full of nearly worthless cash to the grocery store to buy food.

    Back in the 19060’s, Henry Kissinger traveled to Saudi Arabia and convinced that government to sell their oil in dollars. Soon the other OPEC nations followed suit. This created a sitution whereby any country that wanted to buy oil had to accumulate US Dollars to buy it with, thus creating a huge demand for our currency. But they couldn’t just ask us to print them out trillions of dollars. They had to trade with us to get the dollars to buy the oil. This is why for so long the United States has been able to float such massive debt. And if the US economy collapses, much like during the Great Depression that started in 1929, we will take other countries down with us who are heavily invested in US currency through Treasury Bonds. This is why China is trying to divest itself and get rid of their dollar holdings and instead get Euros or anything other currency to offset or reduce any damage they will take should the US go down.

    In 2001, Saddam Hussein, forced by the UN to sell oil for food, began selling in Euros instead of dollars. Soon after we were talking war. Iran only a couple of years ago announced they would open an Oil Bourse (Basically a stock exchange) that would only accept Euros and Yen for oil. Now we are talking war with Iran.

    The US dollar is weakening fast and if we cannot maintain it as the dominant global currency, and the Euro or some other currency becomes the defacto form of exchange, the jig is up. We’re already heaving in to a serious depression, but it will become much more severe as countries jump ship, divest themselves of dollars and use something else. Many advise investing in gold to minimize the risk, but our government could just as quickly seize it all again as they did in 1933.

    It’s simple logic. Think of the term Third World Country and imagine what that usually means? No industry, no high paying jobs, no skilled labor, a weak currency. We’re already losing our industry, we’re sending high paying jobs elsewhere. We still have plenty of skilled labor, but if the jobs are not available, they will leave as well. And our currency is weakening.

    Above Liam also described the Professional Soldier as opposed to the militia. Before the Federal Reserve Banking system was created, given our government access to unlimited funds as long as they would pay the interest on those loans through taxation, we didn’t maintain huge standing armies. War was not a quick solution but a prohibitively costly one. Now we just take out a loan, backed by foreign nations that need our currency to buy oil. Once that situation changes, we can no longer afford to take out loans, or to pay them back. Not that we could ever pay it back to begin with, as there is not enough currency in existence to pay back what we owe. Nor can there ever be with the current system. We used to have balanced budgets, as recently as the Eisenhower adminstration, but that changed when our government realized there was no spending limits. Just taxation limits. At a certain point, we can only pay 100% taxes, nothing more. And in reality, we the people can’t afford much more as it is. Eventually we become serfs, super-indebted, or indentured. We might even see the return of “The company store” where you get everything from the company you work for in exchange for labor. But you own nothing. The company owns it all.

    And in the above example about Rome, notice how the Emperor got all his buddies/cronies to take part? Nowadays we call that socialism. As in Nazi Germany and Fascist Italy. In these forms of government, the companies have so much clout with the government, they basically control everything. If they make profits, they keep it, but if they lose, the people cover the losses. The recent bank bailouts are the same thing. They gambled, they lost, we paid. They started making big profits again, and kept it all, paid themselves enormous bonuses. If they fail again, and remember, they are too big to fail, we will bail them out again. And all that money we lent them? We borrowed it from the very banks we bailed out. At interest. And it was simply printed out. There are only 350,000,000 of us. Every time we borrow a trillion dollars, we owe about $3,000 each. Except a lot of kids don’t actually work or pay taxes, thus we adults actually owe quite a bit more than $3,000. And our debt ceiling was just raised by Congress to $15 trillion. That’s $45,000 each of us owe. I don’t have that kind of money. And we owe it at interest. It just keeps getting larger and larger.

    Now you know why they need to tax us, either directly or indirectly. If the War on Terror is going to cost us $10 trillion over 10 years, where do you think that money is going to come from? Selling the oil we steal from those countries? Do you see Saudi Arabia walking around with $10 trillion? The money does not exist to pay back our debt, which is at interest so it keeps growing, and since it can’t be paid back, even bringing back jobs won’t save us. It just hurts more with them being sent elsewhere. But they will come back. When the economy collapses entirely and the dollar is worthless, we will have to start over. And we’ll probably do that by borrowing what we need all over again.

    By the way, prior to 1913, we didn’t borrow money from banks at interest. We printed out currency and lent it to ourselves. And prior to 1913, we didn’t go in to debt. 1913 was the year the big private banks convinced the US Congress and President Woodrow Wilson to allow the creation of the privately owned Federal Reserve Banking system. Then they started a nice big war in Europe so everyone would have a reason to borrow a whole bunch of money from them, at interest of course. Also, they created Fractional Reserve Banking. It’s what it sounds like. You only need to have a fraction of the money on hand, to cover debts. So instead of banks having a $100 in the vault and lending you $100, they now only needed $10 in the bank to lend you $100. Except… It doesn’t quite work that way. In reality, they can lend more than $100 because when you borrow $100 from them, that is considered an asset. You owe them $100, thus their books list it as $100, so they can lend $1,000 more because they have $100 back in the vault in the form of your IOU.

    This is why we have bubbles. The banks intentionally create them. They have to. They need to endlessly lend money and because the system allows them to multiple what they have by a factor of ten or more, they lend out more than they have. They cannot cover the debts any more than our government can cover theirs. In 1929 when the Crash of 29 took place, and citizens rushed to their banks to get their hard earned money out… now you know why they couldn’t provide it. Since 1913, no bank can cover it’s deposits. But to make sure they didn’t have to suffer for their gambling losses, the banks also lobbied to have the FDIC deposit insurance system put in place whereby the Federal Government, which is you and me, covers the losses. Because when the government agrees to spend money, they need to get it from somewheere and that somewhere is us.

    All of this history is just to explain why they have to keep taxing us more and more. If they don’t, it all collapses. We’re just buying time. It will eventually collapse. It is designed to. It is an intentionally designed bubble. Every time an economy collapses, the banks swoop in and buy up everything of value at pennies on the dollar. Or Euro, or Frank, or Yen, or whatever happens to be the economy that collapses. They did it to the Weimar Republic, they will do it here as well. It’s not by mistake people. This was all planned quite some time ago. All bubbles are planned. No bank suffered when the Internet Boom went Bust. And they were bailed out when the Housing Bubble burst. They never suffer by design. Only we suffer by design.

    So get used to the Health Care Bill. Look forward to Carbon Credits. And expect more and more methods to come along that will take money from you and give it to someone else. It may also be wise to study up on the proper etiquette and social graces when standing in a bread line or eating in a soup kitchen. Such knowledge may come in handy some day soon.

    • And this is why I’m beginning to hate useless technology like cell phones and iPads and other douchebag-couture accessories… because they mean nothing, they do nothing, they distract, they create a market for goods that are made by Asian slaves, and here they create a mob of glib perma-children who can’t read or think in paragraphs, let alone sentences.

      My goodness, do we need to get jobs back onto this continent. I think history will be forced to view Bill Clinton as the beginning of the end of America as it was; he of the international free trade model. I know he was being pushed and enticed to bite, but he’s a Rhodes scholar, and these well-heeled, well-trained pups believe this shite, that growth is forever, that culture and country don’t matter, that trade is a great equalizer above all other considerations.

      Well…golly, it seems we needs our national boundaries after all, so we all have something to feel proud of, to grow, to build, to invest in. Trade is nice; but country is necessary. The former cannot be allowed to eradicate the latter – which it is doing, quickly.

  3. There is more than meets the eye regarding the state of the US. The mainstream media does not explain the nature of what our economy, and the root causes of its demise.

    Outsourcing, or more generally, economic globalization and the offshoring of the industrial base of the United States, and more recently the outsourcing of technical jobs such as software engineering and quality assurance, are the root causes of the current recession and financial collapse of the US economy.

    Let me explain clearly: the 20 million or so manufacturing jobs in the US, and the infrastructure surrounding those jobs, provided both the wealth of this country and the ability of its citizens to support the manufacturing/consumption economy. That economy is gone, to South and Central America, India, China, Africa, the marginal countries of Eastern Europe, and the Middle East, where all of our manufactured goods are now made. What is left is 20 million permanently unemployed or marginally employed people, not including 2 million people behind bars for petty drug and theft crimes now elevated to major felonies.

    And the economic cycle that is left is one which no longer creates wealth. Instead it creates unsustainable debt – personal debt, national debt, and international payments debt. When people have no job or a marginal job, they borrow to maintain their lifestyle, with the hope of recovery just around the corner. They are now at their credit limits, many mortgages are under water (value of the real estate less than the mortgage), the real estate market is about to have its second and third shockwaves (More than a million Option ARM and more than a million Prime Mortgages that will default, and Commercial Real Estate), and the economic recovery so far has been illusory. This fall is predicted by some financial wealth managers to be as bad or worse than the fall of 2008.

    What I say above, by the way, is supported by careful economical and financial analysis. See articles by Dr. Paul Craig Roberts, former Assistant Secretary of the Treasury, who wrote many articles for Counterpunch online journal. See for instance: What Economy – There Is Nothing Left to Recover.
    http://www.counterpunch.org/roberts07162009.html

    China in particular has been floating the U.S. economy now to the tune of 250 billion dollars per year. We print money based on a future promise of properity, the Chinese have accepted it as payment in kind for our consumer goods. (A Walmart container ship arrives from China or other countries at a US dock every 45 seconds.) The Chinese have purchased US real estate and who knows what else, but are still sitting on nearly a trillion of US treasury notes. Since they are tired of empty promises, they are now buying gold, stopped buying T-notes, and are promoting an alternative world reserve currency (currently the US dollar). If the latter happens, the US dollar will instantly devalue to 30%-50% of its current value or lower, and, as Dr. Roberts has stated, Walmart prices will suddenly look like Nieman-Marcus prices.

    Outsourcing of computer software engineering and quality assurance has led to the rapid demise of these professions in the U.S. There are thousands of good software and QA engineers walking the streets or driving taxicabs once their unemployment has run out. This is particularly close to me, as I was laid off last November and have not been able to find equivalent work, even though I have more than thirty years in software engineering and QA, and am an expert software QA engineer in several realms. Each project that we outsource dims the chances that these fine engineers will ever work again in the field that many of them have devoted their lives.

  4. China has not bought in to the global economy and that is either part of the problem, or brilliance on their part. They understand that the doing away of borders and culture is not a solution. It may sound nice, but ultimately governments are put in place to protect their people, and despite all the problems with Communism, China has more than passing familiarity with civil war.

    They know they have a virtually endless source of labor in the form of 1.3 billion or more citizens. They have kept their national currency valued where they want it, as opposed to letting it float on the international market as other nations want them to do, which would likely devalue it considerably. They have readily accepted other countries like the US sending all their manufacturing jobs to them, thus not only spurring their economy, but also their technology sector. If you make it, you therefore understand how to make it, and that’s technology.

    So we have basically been subsidizing the technology advancements of other countries at the expense of our own. China also doesn’t believe too strongly in intellectual property rights, thus they steal whatever they can. It is certainly cheaper than researching the technology on their own. The Soviets did this during the Cold War.

    But China also produces a great number of intellectuals. If you were to read any science magazine or article about some advancement being made, there is almost always the name of a Chinese scientist working on the project. They come to the United States and study here in our colleges, as it is cheaper and more efficient to use our education system, still considered the best in the world for post-graduate work (Not K-12) and then they either work here as long as that is possible, or they go home and put that education to use in their own country. So oddly, China has both taken advantage of our borderless, one world economy, and at the same time, ensured their own borders are quite secure, along with their economy and job sectors. China protects themselves, we do not. And we can see who is benefitting the most from this situation.

    Another factor is the banking system. In China, people are allowed to own banks, but they are heavily, heavily regulated. Bankers there are not allowed to create bubbles as they are allowed to here. Chinese bankers do not lend to their government at interest. And Chinese bankers know that they are not too big to fail. The government will seize anything they want at any time. The bankers live in fear of the government, so they keep their act clean. Not so here in America or in Europe where the banking cartels have run the show for the better part of five hundred years. They know who is in charge. In China, it is not this way. As such, we live at the mercy of the bankers, the Chinese do not.

    It was bankers and Wall Street who hyped up the housing markets, made real estate prices climb ever higher with the promise that the sky was the limit. Endless growth as those above have said. It was always a pipe dream. And it appeared to work as long as people bought in to it. Prices did climb, people saw their wealth, on paper, grow and grow. They were enticed in to taking out equity loans to create an on-paper source of wealth to support a lifestyle their reality, their actual incomes, could not support. It is no different than the Crash of 1929. People were enticed in to buying stocks in companies that were not worth their on-paper values. It was Goldman Sachs, one of the Federal Reserve banks and the bank that has been at the core of every bubble since then that created fictional companies, introduced stocks, hyped those stocks up, and then reaped the profits when people bought in. When the shell companies would collapse, it didn’t affect Goldman Sachs. And it was Goldman Sachs that backed all of the IPO’s of the Internet Bubble. IPO’s are Initial Public Offerings of Stock. When the big bucks are made as investors get to buy stocks for cheap, the price is inflated and the rest of the world buys in to it. Many might make money at the start, but someone is always holding the proverbial potato at the end when the timer runs out. That someone is usually some schmuck who believed the sky was the limit as it was advertised and marketed to be.

    The housing sector was no different than the stock markets of the 1920’s. Everyone was told that everything would only go up. There was no risk. Buy in. It’s all safe, the water is great! And so they did. Homes that were one day $250,000 in California grew to a million and more. People were fighting to get in to the market as they saw others growth climb as their equity grew. And just like my warnings about the Internet to my friends, only those who got in, sold and got out made money. Those who tried to ride it were left with the potato when the timer went off. I remember sitting around the table once a year with my family members going on about how their home values were up such and such a percent over the previous year. They were all giddy with excitement, patting themselves on the back for buying homes they couldn’t possibly afford. My sister was one of the lucky ones. She got a divorce in 2008 and her over-priced home was sold right as the market collapsed. It was just by chance. She got full price, the market collapsed and she bought a new home that was more reasonably priced. Everyone else saw their wealth evaporate. How? It was all supposed to climb forever with no looking back.

    One thing I find interesting about the push for globalization and one big happy planet is the fact that the United States has long avoided like the plague the idea of joining a global court system. The World Court is not something we a part of. We don’t like the idea of others being able to take us to court for our wrong doings. Very similar to Great Britain during their empire days. Britain would make the laws, they applied to everyone but themselves. So whereas we want instant access to the resources and cheap labor of other nations, we don’t want to be subjected to their laws or any scutiny of our methods. Whereas if we were all subject to a global court system, those who engage intentionally in financial bubbles that collapse whole economies, might find themselves held accountable. We make it sound like our worry is that our soldiers and politicians might be sent to The Hague for warcrimes, but I wonder if that is just a ruse and that the real concern is that our financial sector might be held accountable? Is it a crime against humanity to intentionally inflate financial bubbles and then collapse them for financial gain? Is it any wonder that nobody went to prison over the recent crisis? Nobody went to prison over the lies regarding WMD’s in Iraq? We want the benefits of a global economy, which really translates to easy access to foreign resources and labor, but not the accountability and responsibility such access should come with.

    There is a fix. The economy and the source of the problems can be fixed. But Americans have become too lazy to fight for it. But some say that will soon change. When our way of life is truly threatened, and Americans will need to see it threatened quite a bit more before they take action, they will take action. They will deal with the bankers and the politicians. They will get everything fixed. But I don’t see it lasting. I am pretty sure we will allow history to keep repeating itself. We’ve shown no capacity otherwise. There will be riots, there might even be some form of revolution, and there will be changes made. I just don’t see it as being permanent. Policiticians will continue to be corrupt, bankers will still be out for a quick profit. And we the people have always been gullible to promises of wealth and happiness delivered by slick politicians and bankers. Tell me I am wrong.

  5. I used to have a friend who worked in the food business. He got a job at an Italian deli in Howard Beach, and right away showed his bosses how good a worker he was. He put on his little white cap and white butcher’s apron and swept and mopped the floors. Then he cleaned the deli case and counters. Sliced some cold cuts and displayed them neatly between sheets of wax paper. Made sure the price signs were standing up.

    See what I did? he said. And then his bosses, seated at one of the tables, burst out laughing. It wasn’t how they made their money.

    I love Bill’s comments on the banking system. It’s where I’m calling from: Wall Street. Let’s just say, you’re not about to get any “insider” tips from me, because nobody even remotely tells the truth around here. Here, we live in fantasy-land, where we talk meaningless banking ratios while banks aren’t even in the banking business anymore.

    Instead, I get my news from the Wall Street Journal, yessiree! And yesterday’s Journal reported this massive improvement at JPMorgan Chase. Something like a 55% gain over the first quarter a year ago. Yay! But even with Rupert Murdoch’s spin, if you read down to almost the last paragraph, you get the real deal: Banking profits were down, assets were eroding, and they weren’t writing a whole lot of loans. So what were they doing with their time? Investment banking, that’s what. Geez, didn’t I remember something about investment banks becoming bank holding companies a while back? They were just kidding; nobody makes money in banking anymore. Not even banks.

    I have spent a lot of years studying the unreality of AIDS science, but I’ve must tell you “HIV” is contagious: Belief in unreal things spreads to other areas of life. Sooner or later, it will take you down, too, “safe sex”–cautious interactions with the world–or not.

    • Thanks Beth,

      I’m always interested in your take vis-a-vis the banking industry, as you’ve worked behind the lines in it. A note I received from someone I talked to at the tax day tea convention (though no tea or coffee was served), was to watch the Euro; I was told it presages the dollar, and its decline will be a herald for our dollar’s bath.

      And I agree, Bill’s comments are great and full of thought and information.

      bests,

      Liam

  6. I consider the Euro and the European Union in general, to be the test bed of this Global Economy, one World Government idea.

    I am particularly interested in Iceland and Greece whose economies are in bad shape. Iceland tried to protect themselves when they were scammed by foreign banking interests, Greece accepted the methods the foreign bankers wanted. Greece was almost instantly screwed whereas Iceland’s people, some 90% or more, voted to have the government give the foreign bankers the finger and protect themselves from becoming slaves over night. Their government ignored them in much the same manner ours did when most Americans said no to a bank bailout.

    All of this came up in 1990 as the Berlin Wall came down and West Germany was about to absorb East Germany’s economic problems. At the time I considered this unique due to the fact that the people who had been living on opposites sides of a wall, were the same people. Same race, same values, same culture. So coming from the viewpoint that they were family, the German’s on one side of the wall were more than willing to accept financial burdens in order to bring family back in to the fold. As such, the German Mark lost some value, but eventually recovered, and the unified nation, with a much larger labor force and pool of intellectuals, quickly overcame the problems and became strong together.

    But with the Euro, all of these countries are tied together. So if one nations economy becomes heavily depressed, the other nations feel it. Here in the United States, our solution to everything is to simply print more money. But that weakens the value of the dollar. Just the same, for Greece to print Euros to pay their bills, that weakens the value of the Euro for all the other countries using it. And we just saw how the other nations were not interested in absorbing the financial woes of Greece. So much for one big happy European Union.

    There is a link between our economy and that of Europe. Perhaps even two links. We both rely heavily on banks and financial institutions, and we allow our goverments to become heavily indebted to banks. Just like the Depression that begun in 1929, the economies of the world that were linked together, all suffered together. Those that were already in bad shape, simply got worse. Except one. The Weimar Republic. Theirs was the worst of all, but they changed some things and quickly became the fastest growing economy in the world. How? They stopped borrowing from banks and issues their own currency without interest. The new currency was worth full value, not undervalued due to over printing and circulation. It had value because it was based on something of value. Labor. And because it was not something that could be easily traded, there was no speculation on its value and therefore its value didn’t change.

    I am not well versed in the actual rules regarding European Union nations printing Euros. I don’t know if they get them from a Central Bank much like our Federal Reserve, all borrowed, all at interest as the Dollar is, or if they can print up however much they want? I do know that both would be dangerous. One nation printing up trillions of Euros would quickly reduce the value of all Euros. And borrowing all your operating funds from a bank at interest is going to keep you in debt to those banks in perpetuity.

    Europe’s economy was doing just fine when the European Union was created. But despite the interest in a common currency, the big players, France, Germany and the UK, all continued to maintain their national currencies, the Frank, Mark and Pound. Almost as if hedging against the possibility of what is going on in Greece and Iceland. Now, with their economy being affected by ours, those countries that were not in excellent financial shape, are now needing help to pay for things. Whereas before, if they went bankrupt, tough luck, they were on their own. So we are now really, for the first time, seeing how this one common currency thing works when everything isn’t going so well. When one or two small nations, with small populations, threaten the others and how they deal with that.

    So far all I have seen as their solution is to send in the World Trade Organization, sell off assets to banks, screw the people and push them in to debt.

    Is this One World Government going to be run by bankers as well? When there is a problem, whose interests will take priority? Who is going to write the Constitution and Bill of Rights for this government? Will we be voting for it, or having it forced upon us? It all sounds like something the bankers would come up with. And they seem to want it really bad, so perhaps it is something worth wondering about. And worrying about.

    I personally would be watching China as much the Euro. A stable, protected currency versus one used by many. See how they perform against one another. See which one is more volatile. And if you fear the idea of a One World Government, you might want to root for the Euro and the European Union to fail. Because they are really the test bed for what would be coming along in the future for all of us.

    Greece and Iceland got screwed. That tells us something.

  7. I made a small error above in my posts. I mentioned the World Trade Organization when I had meant to say the International Monetary Fund, or IMF.

    Interestingly enough, this was posted the next day which basically says what I said above about Greece and the Euro. A quick read. Here’s the link:

    http://www.moneyandmarkets.com/why-you-should-care-about-greece-38805?FIELD9=1

    We live in a world where elites prefer to protect themselves. I imagine that the creation of the Euro came about with clauses meant to protect the “Have’s” in the event the “Have Not’s” encounter difficulty. And it seems my belief might have been realized when the author of this article mentions a little about the system used to create the Euro and the lack of viable tools to fix problems. As I mentioned, the Euro came about when things were looking good, the global economy cruising along nicely, and of course everyone still believed in “The sky is the limit” theory of big finance. Idiots. Had they formed their Euro system during a global economic meltdown, perhaps they would have included some tools, some fail-safes, set it up differently, or not at all. One can Monday Morning Quarterback all they want, but the point I am trying to make is; Do we really want to join a One World (Fill-in-the-blank) anything?

  8. How to commit a criminal act against the American public (simple)

    Step 1: Give everyone a credit card and a mortgage agreement of which the terms of “agreement” could only be interpreted by Benjamin Franklin himself.

    Step 2: You owe me now soooooo: I’ll be taking the keys to your house, car etc. because you could not afford a house as explained without the convenience of legible proper American English on page 5000 of your mortgage contract, so give all of your money to a lawyer now asshole!

    Step 3: Blame poor people, because they sicken me with their wanting affordable cost of living ways.

    Remember the cereal commercial “Micky likes it” ?
    http://www.youtube.com/watch?v=vYEXzx-TINc

    Mickey does not like-e example: http://www.michaelmoore.com/

    I remember when they called these people “the mafia”

  9. I have been told by a German friend who used to live in East Germany that the next-of-kin of Jailed dissidents were usually informed that their jailed family member was going to receive “Sonderbehandlung” (Special Treatment). A few days later they would receive a note to say that the “Sonderbehandlung” had been carried out and that they could come and collect the person’s personal belongings.

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