In the 1990s companies such as Google and Microsoft were experiencing success that made investors euphoric. Also, computers allowed financial companies to engage in high frequency trading of securities such as stocks and bonds. This means that the financial began to fail to reflect genuine human activity. By the late 1990s, the stock prices of most tech companies was overvalued and jobs were going overseas due to outsourcing. Furthermore, automation was destroying many working class jobs. It is important to note that during this era the Clinton administration repealed important regulations intended to ensure the stability of the financial system. One of these regulations being the Glass-Steagal Act which seperated commercial banking from risky investment banks. Investment banks tend to make risky trades. While commercial banks if kept seperated from investment banks would not engage in risky trading. In the late 1990s the stock market collapse as investors realized tech stocks were overvalued and sold of shares of tech stock en mass. The economy fell into a brief reccession. Also, on the eve of this recession manufacturing companies had trouble keeping up with the demand for cars as a growing number of consumers borrowed money to buy cars. This caused automobile companies and their suppliers to suffer as a great deal of revenue was lost. A few years later the events of 9/11 caused the economy to suffer once again. The U.S entered into a war in Afganistan that would cost over a trillion dollars in the following decade with little results to show for it.
Currently, companies such as Amazon and Apple are having unprecendented success. Apple is selling Iphones like hot cakes and Amazon is the gold standard for online retail. Also, Amazon brought Wholefoods which means that the corporate giant will have a great deal of control of the food supply. Financial firms are using articial intellingence (AI) to engage in high frequency trading and using algorithms to determine trading decisions. Indeed, financial markets no longer reflects genuine human activity. There have been a number of flash crashes in recent years in which a stock market will crash then go right back up. Also, globalization has accelerated as countries such as China flood the market of western countries with cheap manufactured goods. It is important to note that cost of production in developing countries such as China is far lower because of low labor costs and a loose environmental regulations. Furthermore, even more jobs are being lost to automtation and self driving cars are being developed by Google that could eventually replace truck drivers. Tech stocks are once again greatly overvalued and this is the second major tech bubble. This has major economic and cultural implications. For when the tech bubble collapses, a minor recession could result. This reccession would be world wide and those burdened with debt would be the most impacted. Economist, business leaders, and government officials need to admit to the economic risks posed by Tech Bubble 2.0. Also, individuals need to save a greater percentage of their disposable income. As I've mentioned in previous blogs buying local and using credit unions can counter balance the power of the globalists. It would also revive the local economy.
Friday, January 25, 2019
Thursday, January 24, 2019
Of Federalist and Anit-Federalist
In early American history when the constitution was being written there was a massive debate about whether the federal government should be weak as to allow for strong state governments or to have a strong federal government and relatively weak state government. This debate led to many articles being published by both sides with the anti-federalist being against a powerful government and the federalist being for a powerful government. These articles would eventually become known as the Federalist Papers and the Anti-Federalist Papers and they are were written during the first few years after the Constitution was ratified in 1787. Many of America's founding fathers took part in this debate. Alexander Hamilton, James Madison, and John Jay led the charge on the federalist side writing many articles anonymously for various publications. It is important to note that shortly after the constitution was implemented Alexander Hamilton helped found the country's first central bank in New York City. Patrick Henry, James Monroe, and Samuel Adams among others were the main authors of the Anti-Federalist Papers. Ultimately, the federalist got there way as the federal government is relatively powerful compared to the state government. However, there was comprise between the two sides that resulted in the concept of "states rights" and the idea federal law always trumps state and local law. This means that well states have the right to write their own constitutions and laws, they are still restricted by the Constitution and federal law.
Of the Problems with Political Parties
Historically, American politics have been divided into two political parties with a third party consisting of a small minority. Usually, the two parties are willing to compromise to accomplish legislation that is necessary for the federal government to operate smoothly. However, over the last decade the two parties have become increasingly polarized. Thus, making it more difficult for them to get anything productive done. Traditionally, democrats have been for increasing domestic spending and decreasing defense spending. While republicans have been for cutting domestic spending and increasing defense spending. Indeed, both parties have proven their willingness to prolong limited wars while allowing America's infrastructure to decay. Also, the middle ground is being lost on many issues as both sides move to extreme ends. Political parties homogenize political thought. When people vote some will look at the political party rather than evaluate the candidate. The last time congress passed a brand new budget the I phone had not even been invented yet. In other words, it was been over ten years since real fiscal reform has been implemented. Meanwhile, the national debt is over $20 trillion and interest payments on public debt will reach a trillion dollars a year within the next decade. Also, the federal government is gradually losing sovereignty to countries such as China, Argentina, and the U.K. It is important to note that China is using the interest payments it receives from the U.S to fund major infrastructure projects including the One Belt, One Road project.
Recently, a failure for democrats and republics to compromise on a spending bill that would have secured America's border and ensured that the government would be funded for another year caused the government to shut down. This has been the longest government shutdown in American history, so far it has lasted about 34 days. Trump recently indicated that he would accept a bill that would appropriate $5.7 for a wall at the southern border and temporarily extend DACA. It has yet to be seen whether Democrats will accept this offer. Although at first some Democrats rejected the offer, its possible other Democrats will change their mind and accept Trump's proposal. This is not to say that building a wall is absolutely necessary to secure America's border. Hundreds of thousands of federal employees are either at home without pay or working without pay. Its likely that by now many of these people are struggling to pay bills. Many of these unpaid employees have filed unemployment claims for unemployment benefits and have gotten help from local charities. It is important to note that about 26% of the government is shutdown and the other 74% is up and running. Government shutdowns have happened and they did not do any notable harm to the economy.
There are several possible solutions to the impasse in Washington and probably more than what I will mention in this blog. One is that when it becomes evident to congress that legislation needs to passed have the leaders of both legislative caucus meet and negotiate on legislation that would pass both the house and the senate. Also, take steps to ensure that the president would sign the legislation into law once it passes both the house and senate. Another solution is to diminish the role of political parties in policy formation and this is a more difficult task. Political parties would still play a big role in elections. Political parties have a platform that are intended to be guidelines for policy making in government. In other words, since political parties function to try and get certain public policies in place it would be almost impossible to separate them from their role in policy making. An easier option may be to elect more third party and independent candidates in office especially at the state and local levels. Indeed, it would be difficult to replace a powerful democrat or republican representative with an independent or third party candidate. This is not to say that there not good government officials that are republicans or democrats. Indeed, there are many wonderful, hard working government officials that are republicans and democrats. Too much focus is put on the federal level in politics. People need to get to know their mayor and city council men and women. Also, getting good local government officials elected is a wonderful starting point for reducing corruption.
Recently, a failure for democrats and republics to compromise on a spending bill that would have secured America's border and ensured that the government would be funded for another year caused the government to shut down. This has been the longest government shutdown in American history, so far it has lasted about 34 days. Trump recently indicated that he would accept a bill that would appropriate $5.7 for a wall at the southern border and temporarily extend DACA. It has yet to be seen whether Democrats will accept this offer. Although at first some Democrats rejected the offer, its possible other Democrats will change their mind and accept Trump's proposal. This is not to say that building a wall is absolutely necessary to secure America's border. Hundreds of thousands of federal employees are either at home without pay or working without pay. Its likely that by now many of these people are struggling to pay bills. Many of these unpaid employees have filed unemployment claims for unemployment benefits and have gotten help from local charities. It is important to note that about 26% of the government is shutdown and the other 74% is up and running. Government shutdowns have happened and they did not do any notable harm to the economy.
There are several possible solutions to the impasse in Washington and probably more than what I will mention in this blog. One is that when it becomes evident to congress that legislation needs to passed have the leaders of both legislative caucus meet and negotiate on legislation that would pass both the house and the senate. Also, take steps to ensure that the president would sign the legislation into law once it passes both the house and senate. Another solution is to diminish the role of political parties in policy formation and this is a more difficult task. Political parties would still play a big role in elections. Political parties have a platform that are intended to be guidelines for policy making in government. In other words, since political parties function to try and get certain public policies in place it would be almost impossible to separate them from their role in policy making. An easier option may be to elect more third party and independent candidates in office especially at the state and local levels. Indeed, it would be difficult to replace a powerful democrat or republican representative with an independent or third party candidate. This is not to say that there not good government officials that are republicans or democrats. Indeed, there are many wonderful, hard working government officials that are republicans and democrats. Too much focus is put on the federal level in politics. People need to get to know their mayor and city council men and women. Also, getting good local government officials elected is a wonderful starting point for reducing corruption.
Wednesday, January 23, 2019
Of The Culture of The Breakaway Civilization
In yesterday's blog I discussed how the body politic of the Breakaway Civilization resembles the structure of a secret society. This has profound implications for the culture of the Breakaway Civilization. If the Breakaway Civilization is to operate in complete secrecy it would have to be killing or ensuring silence from members that leave the group or threaten its secrecy. This means that these Breakaway groups have claimed the same sovereignty as a nation state because these groups have power over the life and death of its members. While it is possible that some members of the Breakaway Civilization are incoherent, narcissistic socio-paths. It is evident that some of the members could be part of an ancient esoteric tradition that has been passed down for many thousands of years. In other words, its possible that some members of the Breakaway Civilization are alchemist or magicians that see the world and human beings as having both spiritual and materials qualities. These alchemist and magicians ,if they exist, do not separate the spiritual from the material and its possible these members are part of secret societies outside of the Breakaway Civilization. These secret societies outside of the Breakaway Civilization may include esoteric lodges that appeared in Europe and North America in the early 1900s. Also, some of these secret societies may have been groups of alchemist and magicians that carrying on esoteric traditions going back to ancient times. While it is uncertain whether or not such groups exist, there is evidence that secret societies may have been carrying on ancient esoteric doctrine.
Western Esotericism is a movement that has its origins back to the Hellenistic Eastern Mediterranean, then it continued into the middle ages and the renaissance period as the works of ancient Greek and Roman philosophers were translated before its emergence from the enlightenment as a "modernist occult" movement, and finally in the early 20th century it became a multi-disciplinary subject in America that encompasses theology, alchemy, and the arts used primarily to study the impact of esotericism on Western culture and religion. It is important to note the medieval Greeks and Byzantines of South Eastern Europe never lost ancient Greek and Roman tradition, so they would have indeed been able to carry on the esoteric traditions of the ancient Greeks and Romans. Also, Western Esotericism includes the tribal religions that most of ancient Europe had before the spread of Christianity throughout the early Middle Ages. Indeed, these esoteric traditions combined with those of ancient of ancient Greece and Rome had a profound impact on Christianity and Western culture. This subject is often refered to as Western Esotericism and few scholars still study it to this day. In my view, the "modernist occult movement" is evidence that these ancient esoteric traditions were indeed passed down and perhaps even practiced by secret societies. While it is unknown whether or not these secret societies influenced or even infiltrated the Breakaway Civilization. It is safe to hypothesize that at the very least ancient esoteric doctrine may have had an influence on the Breakaway Civilization at one point in time.
Western Esotericism is a movement that has its origins back to the Hellenistic Eastern Mediterranean, then it continued into the middle ages and the renaissance period as the works of ancient Greek and Roman philosophers were translated before its emergence from the enlightenment as a "modernist occult" movement, and finally in the early 20th century it became a multi-disciplinary subject in America that encompasses theology, alchemy, and the arts used primarily to study the impact of esotericism on Western culture and religion. It is important to note the medieval Greeks and Byzantines of South Eastern Europe never lost ancient Greek and Roman tradition, so they would have indeed been able to carry on the esoteric traditions of the ancient Greeks and Romans. Also, Western Esotericism includes the tribal religions that most of ancient Europe had before the spread of Christianity throughout the early Middle Ages. Indeed, these esoteric traditions combined with those of ancient of ancient Greece and Rome had a profound impact on Christianity and Western culture. This subject is often refered to as Western Esotericism and few scholars still study it to this day. In my view, the "modernist occult movement" is evidence that these ancient esoteric traditions were indeed passed down and perhaps even practiced by secret societies. While it is unknown whether or not these secret societies influenced or even infiltrated the Breakaway Civilization. It is safe to hypothesize that at the very least ancient esoteric doctrine may have had an influence on the Breakaway Civilization at one point in time.
References
European Society For The Study of Western Esotericism
https://www.esswe.org/
Western Esotericism (Theology and Religious Studies)
http://www.uva.nl/en/shared-content/subsites/graduate-school-of-humanities/en/masters/western-esotericism-theology-and-religious-studies/western-esotericism.html?origin=5BOaRAofTjCccATraJp2XA
"An Analyses of The Breakaway Civilization" by Dr. Joseph p Farrell
https://www.youtube.com/watch?v=1svGIBKaE_0&t=3s
"An Analyses of The Breakaway Civilization" by Dr. Joseph p Farrell
https://www.youtube.com/watch?v=1svGIBKaE_0&t=3s
Tuesday, January 22, 2019
Of The Political Economy of The Breakaway Civilization
I've written at least two blogs concerning the Breakaway Civilization and it may be helpful for the reader to read those blogs before continuing. As I mentioned in previous blogs, the Breakaway Civilization relies on stealing money from federal government in the form of the off the books spending on secret space programs and other scientific research. Also, the Breakaway Civilization uses derivative trading, bailout money, and other means to obtain funds. However, in order for the Breakaway Civilization to become self sufficient enough to break away from our civilization entirely it will need to generate returns on their secret research projects. This means that their secret space program would have to become so successful that our civilization would become a multi planet civilization. Also, the other scientific research the Breakaway Civilization does would become profitable. It is unknown what this scientific research is or what the agenda is behind it. It is important to note that the leaders of the Breakaway Civilization may be middle managers for off world executives. If this is indeed the case it would have profound implications that would explain some of their hidden motives behind their secret projects. It is difficult to describe the political structure of the Breakaway Civilization due to a lack of information. One can hypothesize that it is being run like a secret society such as the Illuminati. I've mentioned in a past blog that it is possible the Breakaway Civilization has been around for hundreds of thousands of years. If we are dealing with a continuity of these ancient groups and secret societies than one can grasp the possible governance structures of the Breakaway Civilization. Indeed, much of the body politic would focus on the agendas and testaments of the Cosmic War passed down for thousands of generations.
References
"The Black Budget" by Catherine Austin Fits
https://www.youtube.com/watch?v=w0mimIp8mr8&t=4s
Of The End of Monetized Debt as a Currency
In yesterday's blog I highlighted the problems with monetized debt as money. Monetized debt as a currency is coming to an end. The system of monetized debt as money is not going to crash, rather it will slow burn. Indeed, it is far more profitable for the elites to have the economy in a prolonged cycle of debt than to simply allow a debt crises to occur. As the economy becomes crippled with debt even the wealth and power of the elites could begin to suffer. This may force the elites to slowly phase out the idea of monetized debt as a currency. Debt free money would be difficult to obtain in this economy. There are several different methods that this feat could be accomplished. Historically, one of the most succesful ways to increase the supply of debt free money is to establish a mercantilist system in which a country tries to maximize its stores of commodities by exporting more goods and importing less goods. In the case of America that commodity is the U.S dollar. The U.S has been the reserve currency since the end of World War 2. Oil and many other goods are traded between countries using the U.S dollar. As I pointed out in a previous blog, the U.S dollar is a military backed currency. In other words, the U.S government is able and willing to send the U.S military to any unprepared nation that challenges the U.S dollars dominance. Indeed, there are many wealthy countries the U.S government would not dare to invade.
The second possibility for debt free money is for a central bank to print money. This could increase inflation. A central could issue the currency in two ways. One is to buy government bonds with currency the central bank prints. The other is to lend money to some of the largest banks in the country and this money would ultimately not be debt free. It is important to note that if a central bank prints money to buy government bonds, the interest rate would decrease. This would result in more lending and maybe speed economic growth. A central bank may not be able to put an end to monetized debt as a currency.
The option for debt free money is simply for ordinary citizens to save money and borrow less. This does not mean that everyone has to stop borrowing money altogether. Rather, that saving and investing money productively would result in a return that may counter balance to effects of being burdened with debt. I will explain more in depth how to do this in later blogs. Also, I would encourage the readers to use local credit unions to met your banking needs and buy local when possible. Also, go to a farmers market to meet food needs when it is available.
The second possibility for debt free money is for a central bank to print money. This could increase inflation. A central could issue the currency in two ways. One is to buy government bonds with currency the central bank prints. The other is to lend money to some of the largest banks in the country and this money would ultimately not be debt free. It is important to note that if a central bank prints money to buy government bonds, the interest rate would decrease. This would result in more lending and maybe speed economic growth. A central bank may not be able to put an end to monetized debt as a currency.
The option for debt free money is simply for ordinary citizens to save money and borrow less. This does not mean that everyone has to stop borrowing money altogether. Rather, that saving and investing money productively would result in a return that may counter balance to effects of being burdened with debt. I will explain more in depth how to do this in later blogs. Also, I would encourage the readers to use local credit unions to met your banking needs and buy local when possible. Also, go to a farmers market to meet food needs when it is available.
Monday, January 21, 2019
Of The Problems With Monetized Debt as a Currency
Over the last several decades, middle class citizens in western countries have been borrowing an increasing amount of money via credit cards. While it makes sense to use credit cards to build up your credit score and buy nessities then pay off the balance once you recieve your paycheck. Some people end up stuck in a cycle of credit card debt and they find it challenging to get out of it. Most credit cards are revolving accounts. Which means that a credit card user can pay off some but not all of the balance then use the credit card more. This feature can be a good thing when credit cards are used wisely. It is important to note that given the high interest rate on credit cards, it is ill advised to spend much more than two hundred dollars at a time and no less than fifty dollars. Of course the maximum amount you should spend on a credit card could vary depending on your income.
Car loans and morgages have been available for a almost a century. This has led to an increase in demand for houses and automobiles. Also, most middle class Americans are in debt. As the cost of college rises so does the demand for student loans. The cost of college has risen dramatically in recent years. Currently, there is over a trillion dollars of student loan debt outstanding in the U.S. This trend could lead to a boom in human capital or yet another financial crises. Theoretically, these types of debt can be a good thing given that the borrowers have a steady, middle class job. As we saw in the 2008 crash people were unable to pay their mortgage due to being laid off in the wake of the reccession. Forclosures increased dramatically and the big banks and automobile industries had to be bailed out. Indeed, another debt crises would be disasterous. This is not to say that debt is always a bad thing. However, one should be cautious when borrowing. One way to avoid default on a loan is to have six months of income saved if possible in case of being laid off. Also, when taking out a student loan one should avoid borrowing more than what is expected to be earned in income the first year after graduation. In other words, a college student's student loan debt should not exceed his or her yearly income the first year after graduation.
Monetized debt also has implications for governments and companies. As I've mentioned in previous blogs, countries such as the U.S, France, Spain, Italy, and Greece has all burdened themselves with public debt. This could lead to those countries losing some sovereignty to debtors. As we saw in the 2012 European Debt Crises, Greece did give up some sovereignty when Germany bailed out Greece on the conditions that Greece's government cut social programs and other government expenditures. Government borrow money by issuing debt. Greece has experimented with negative interest rate bonds. I will explain this more in dept in a later blog. For the last seven years Itay has had trouble getting its bonds on the market as investors grow weary of high youth unemployment and a lack of fiscal restraint. It is important to note that the America's debt, treasury bonds, has been considered by far the safest debt in the world with the interest rates on 30 year treasury bonds floating at around three percent. I do not agree with this assesment by Wall Street. I think the U.S federal government will soon find it difficult to repary its debt as the total interest the federal government pays on its debt reaches one trillion dollars in the next decade. Not to mentioned most tax paying citizens are burdened with an increasing amount of debt. Thus, ordinary citizens will be unable to pay higher taxes to service increasing public debt.
In the U.S alone corporations have $6.3 trillion dollars worth of debt on its balance sheets. As I may have mentioned before, corporations borrow money by issuing bonds available to the general public for purchase. Also, corporations have the option of issuing shares of stock to fund expansion or research and developement. However, these corporations have $2.1 trillion dollars in cash available to service this debt. In the decade since the end of the 2008 recession, corporate profits have risen to record highs while incomes of middle and working class people remain relatively stagnate. Although, recent job reports suggests that the trend of stagnate wages is reversing as wages have increased by as much as three percent in some months. These wage increases do not include the wages of executives or other well off individuals.
Car loans and morgages have been available for a almost a century. This has led to an increase in demand for houses and automobiles. Also, most middle class Americans are in debt. As the cost of college rises so does the demand for student loans. The cost of college has risen dramatically in recent years. Currently, there is over a trillion dollars of student loan debt outstanding in the U.S. This trend could lead to a boom in human capital or yet another financial crises. Theoretically, these types of debt can be a good thing given that the borrowers have a steady, middle class job. As we saw in the 2008 crash people were unable to pay their mortgage due to being laid off in the wake of the reccession. Forclosures increased dramatically and the big banks and automobile industries had to be bailed out. Indeed, another debt crises would be disasterous. This is not to say that debt is always a bad thing. However, one should be cautious when borrowing. One way to avoid default on a loan is to have six months of income saved if possible in case of being laid off. Also, when taking out a student loan one should avoid borrowing more than what is expected to be earned in income the first year after graduation. In other words, a college student's student loan debt should not exceed his or her yearly income the first year after graduation.
Monetized debt also has implications for governments and companies. As I've mentioned in previous blogs, countries such as the U.S, France, Spain, Italy, and Greece has all burdened themselves with public debt. This could lead to those countries losing some sovereignty to debtors. As we saw in the 2012 European Debt Crises, Greece did give up some sovereignty when Germany bailed out Greece on the conditions that Greece's government cut social programs and other government expenditures. Government borrow money by issuing debt. Greece has experimented with negative interest rate bonds. I will explain this more in dept in a later blog. For the last seven years Itay has had trouble getting its bonds on the market as investors grow weary of high youth unemployment and a lack of fiscal restraint. It is important to note that the America's debt, treasury bonds, has been considered by far the safest debt in the world with the interest rates on 30 year treasury bonds floating at around three percent. I do not agree with this assesment by Wall Street. I think the U.S federal government will soon find it difficult to repary its debt as the total interest the federal government pays on its debt reaches one trillion dollars in the next decade. Not to mentioned most tax paying citizens are burdened with an increasing amount of debt. Thus, ordinary citizens will be unable to pay higher taxes to service increasing public debt.
In the U.S alone corporations have $6.3 trillion dollars worth of debt on its balance sheets. As I may have mentioned before, corporations borrow money by issuing bonds available to the general public for purchase. Also, corporations have the option of issuing shares of stock to fund expansion or research and developement. However, these corporations have $2.1 trillion dollars in cash available to service this debt. In the decade since the end of the 2008 recession, corporate profits have risen to record highs while incomes of middle and working class people remain relatively stagnate. Although, recent job reports suggests that the trend of stagnate wages is reversing as wages have increased by as much as three percent in some months. These wage increases do not include the wages of executives or other well off individuals.
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