- Posted October 21, 2012 by
St Charles, Missouri
ECONOMIC HORSE SENSE
Also Read details at: https://sites.google.com/site/economictruthyouneedtoknow/home
• If I have chicken eggs and you have corn we can barter with each other to exchange Resources.
• Money or Currency is an exchange medium set up by a group of people or Government (Gov) that is collaboratively trusted by all parties to use for exchanging Resources.
• A country without an abundance of Resources has no power to create an economy for anyone by itself. Resources are the backbone of any sustainable economy.
• The ability to effectively tap into those Resources and utilize them to create jobs requires knowledge, education, innovation and technology.
• Civilizations exist due to some degree of order and law and without it there is chaos and no possibility for a Gov to be established to provide and Regulate Order and Law for the benefit of humans that co-exist in the same location.
• If there is no Gov, then by logical deduction we cannot have Civilization. If there is no Civilization and no form of agreeable Gov; I maintain it is impossible to achieve a sustainable economy for the masses.
• Gov is given power and authority by people to Regulate and Implement Policies and Laws for the benefit of the people. It is the Gov’s job to:
o Ensure Domestic Security and Safety
o Ensure Domestic Economic Stability
o Protect the Rights of its Citizens
o Ensure its Citizens have Equal Opportunities
o Promote Freedom, Democracy, Capitalism and Free Markets
• If Resources are the backbone of any economy then whoever controls those Resources has power to establish, develop, create, maintain, grow, stimulate, or advance economic growth.
• The Fifth Amendment to Constitution says “The Supreme Court has held that the federal gov and each state has the power of eminent domain—the power to take private property for "public use".
• Right or wrong, we the people have given this power to the Gov. The US Gov as well is responsible for REGULATING the exchange of goods and services by whatever exchange medium agreed to and accepted by the people (US Dollar).
• The inherent power of the Gov to use and control all Property (Resources) in this country nullifies the Gov’s obligation to a Debt of those Resources. How can the Gov have a Debt to that which they already have power to control, use or distribute at will? I maintain it is not possible.
• I maintain the US Gov is a DISTRIBUTOR OF CURRENCY and by sheer power has the right to use whatever amount of CURRENCY it desires against those National Resources, without cost to the Gov. I maintain it is IMPOSSIBLE TO HAVE A DEBT TO THAT WHICH YOU CONTROL AND OWN.
• From a National Security perspective; the US Gov does not compute Economic Stability based on Corp Stock, Corp Growth or Triple A Ratings; but instead bases economic stability on the Gov’s ability and power to control, maintain, and utilize its own domestic Resources to create jobs, industries and manufacture goods and services and based on the Gov's ability to control, use and negotiate for other countries Resources around the world in order to preserve its own Resources. Hence the most powerful military in the world and Environmental Protection Agency (EPA).
• There was an economic crash in 1929. By 1939 the Federal Debt was at least twice the Gross National Product (GNP) and unemployment was higher than 25% (see http://investmentwatchblog.com/us-1929-great-depression-vs-2008-financial-housing-credit-crisis/). In 1941 the US entered World War II and rolled out of the Federal Reserve the equivalent of Trillions of more dollars (in today’s dollars) on top of the already existing debt, to pay for the war and building the Defense Highway System, the electrical grid, dams, bridges, educational institutions, etc. By the end of 1945 the unemployment rate had dropped to about 1% (see http://eh.net/encyclopedia/article/tassava.WWII) and the economy was booming. After the War the US then rolled out of the Federal Reserve the equivalent of Trillions more dollars to pay for rebuilding Europe, Japan, etc. Then after that, the US began a surge of expanding the economies of the world by rolling Trillions more out of the Federal Reserve to build up the economies of the world and sending manufacturing jobs overseas to accomplish this Global Economic Expansion. This of course meant further De-Regulations on Corporations (Corps) to allow them the freedom to move manufacturing and jobs overseas. We created this Global Economy through utilization of our Federal Reserve (Rolling US Dollars out of it).
• So what happened to all that Federal Debt? Did it ever get paid back to the Federal Reserve? NO it did NOT
• Why Not? Because it did not matter after there was enough tax base from people being employed to cover the operational costs of the Gov (deficit). Once the deficit was removed the Federal Debt did not matter.
• Other countries and financial institutions compute the economic viability of the US based on its abundance of Resources, its ability to utilize those Resources and its ability to control and negotiate for control and use of Resources around the world and not on Currency rolling out of the Federal Reserve.
• What is Monopolization? Monopolization is where a Company controls most if not all of a product or service to the point where no other Company can compete for marketing or servicing that product or service.
• Monopolization is what destroys COMPETITION in the market place and what destroys CAPITALISM. That is what has caused the disparity of wealth in this country and that is one of the main reasons the economy here in the US is suffering. It was not size of gov or Federal Debit that caused the economy to crash at the end of 2007. It was monopolization of the financial companies and mortgage companies that are still not broken up that caused it. We see where the Republican Party in the House of Representative has continuously blocked all efforts by the Obama Administration to break up these monopolistic "Too Big to Fail Corps". https://sites.google.com/site/economictruthyouneedtoknow/home
• Monopolization is a bigger issue and problem than size of Gov. That is what a Corps does if they are not regulated properly. And they will of course if De-Regulated send jobs overseas if it is advantageous to do so. Why are the Republicans and Mitt Romney against breaking up these Monopolies? They are bought off by Corporations.
• We see this push to convince us that the main problems with the economy has to do with too much gov (it's to big) and the Federal Debt is going to cause our economy to crash. We see this constantly being advocated as the main problems with the economy recovering. I think that is complete distortion of the truth, mis-leading and there are zero facts to back that up. It is fear mongering and propaganda and its intent is to get us to believe that we need to give more money to Corps, more power to influence Gov, tax them less and then Trust Corps to take care of us.
• We see where the gov (Republican Controlled House of Representatives) has refused to appropriate annual funding over the last 2 years for teachers, firemen and police officers and other union type jobs that states have needed to keep these folks employed. There have been over a million teachers, police officers and firemen alone who have lost their jobs due to this. All in the name of trying to shrink the size of gov knowing the states do not have the money to keep these people employed.
• This does not fix anything. These people get laid off and now they can't even pay taxes but have to go on welfare, unemployment, food stamps, etc and can't contribute anything back into the system in the form of taxes. Slowly reducing the size of gov is necessary but it should be done slowly by "transferring the jobs" to private industry or to states when/after they have enough tax base to support those people to keep them employed. Hence the primary focus should be on JOB CREATION not gutting the Gov and sending people into welfare which enables Companies to lower their wages because people are now more desperate for work.
• Republican lawmakers advocate and are pushing to get rid of the Depart of Education and The EPA, etc., and such is planned by Mitt Romney. We have shown above the danger in this and how important these agencies are to National Security and stability of our economy.
• We see where this country has massive amounts of resources to utilize to create jobs and put people back to work but nothing is being done. Why, because lawmakers (Republicans in the House of Representatives) say we can't because of this Federal Debt. They have blocked all efforts by the Obama Administration for Job Creation.
• It is a fact that if you own a car outright, then you cannot have a debt against it. The Gov may track the so called Federal Debt but they do not acquire debt against national domestic resources. You have debt, I have debt, Corps has debt but the US Gov does not acquire debt against national resources. The US Gov is distributor of currency and they have the power and right to utilize that currency at will against any and all national resources.
• The Federal Debt matters to Corps because it can devalue the dollar on the world market but look how great US Corps are doing despite the Federal Debt. Why? Because countries and Financial Institutions measure the US credit mainly on its abundance of resources (assets) and the Gov’s ability to utilize them with technology, innovation and education and our ability to acquire, control or negotiate for resources around the world at will. Hence again a large military. https://sites.google.com/site/economictruthyouneedtoknow/home
• Reducing the military drastically in the name of Federal Debt is not good for the economy. What really matters is tapping into our resources to put people back to work so there is enough tax base to pay for operating the Fed Gov & State Govs.
• To strengthen the economy the country should be investing further in DOD and not cutting military spending.
• This notion that the problems stem from Federal Debt, Size of Gov and too many social programs is none sense. People have to go on social programs because they don't have a job. It is the Gov’s role to assist in the creation of jobs and then transfer those industries and jobs to the private sector if necessary. That is exactly what they did after WWII. When people lose their jobs the Gov has no choice but to provide some services for them. Otherwise the country would fall into a revolution.
• We see the disparity of wealth in this country greater than ever before. We see fewer people and Corps controlling a larger percentage of wealth of this country and the middle class is shrinking, job wages are going down and jobs are being sent overseas at a faster rate than ever before. Why? Because of Deregulation. The Republican GOP and Mitt Romney are focused on further De-Regulations, Giving more money to Corps, Reducing the Size of Gov at the expense of jobs to enable Companies to lower wages further, sending more jobs overseas, and getting rid of social net programs to help the poor and the middle class. They want you to believe that Corps will hire more people in this country if we simply give them more power and freedom and don’t tax them and continue to allow them freedom to send jobs overseas. It really comes down to whom you believe should be making decisions for the masses. Corps or the Gov. President Obama understand a need for a balanced approach to the economic problems and the need to reduce Monopolization, increase competition and tap into the Resources for creating more jobs just like we did during WWII. Vote for Obama / Biden 2012.
• Republican GOP and Mitt Romney’s addenda is to increase wealth for the wealthy 1% which will increase the disparity of wealth, pushing more people into poverty, Cutting taxes on the wealthy, increasing Monopolization which will reduce Competition in the Free Market System and reduce Capitalism, gutting the US Gov by getting rid of vital departments such as Department of Education, Environmental Protection Agency, etc, cutting off Student Loans, Take Away Women’s Health Care, Reduce Medicare, Medicaid and Social Security to Voucher Programs that will be played on the Stock Market, and Send more jobs Overseas; all in the name of a Federal Debt and Gov Size to give more power to Corps. Vote Obama/Biden 2012