13/05/2010 05:21:00

← While it may appear that the Obama Administration has

embarked on a totally different course from other
Administrations, the fact of the matter is that it is simply a
continuation of an agenda that has been operating in this
country, to one degree or another, not only for decades, but for
much, much longer.
←
← The seeds of the destructive nature of this present
government's policies predate the ratification of the Constitution,
but of late those seeds have began to bear fruit, a vile,
degenerative fruit that places the future of this country, its people
and their liberty in the utmost jeopardy. The eventual effects of
this government’s policy will be chaotic in nature and affect every
aspect of our lives. As stated, this course is not a new one, but
one that has been gradually implemented, whether
conscientiously intended or not, by a political mindset that
promotes the consolidation of the powers of all government into
the hands of the political class.
←
← The ideology has morphed little since the time of Hamilton,
the central theme is an all-powerful government, whether
Monarchist, Mercantilist, Consolidationist or Socialist in nature.
The core of this ideology is that all power rests, not in the people,
but in the government. The methods to achieve such a
consolidation of power have been varied, but primarily rest within
the sphere of monetary economics where a political economy can
be produced and expanded to the point of complete government
control.
← While it is not a recent development, the Obama
Administration has embarked on a very definite path toward
controlling, either directly or indirectly, the means of production
in this country to an extent that has not been seen previously, as
such, the distortions which already exist due to past government
intervention in the markets will become more exaggerated and
new distortions will be created. As the distortions increase so too
does the chaos and as this happens those within this
government, without a clear explanation of the causes or
solutions to the problems it creates, will simply continue on the
same chaotic path with even more vigor.
←
← Upon this path lay eventual price and wage controls, they
are inevitable. The entire system employed by this government,
fueled through a total fiat currency, is built upon an ideology that
not only ignores the principles of sound monetary economics, but
also must ignore such principles. Of course, one of the major
issues of such policies is that eventually they become not only
cumulative in nature, but also self-perpetuating. The necessity of
further government intervention simply becomes unavoidable.
← A point is reached where the government has no alternative
but to gear-up its efforts to combat the effects of its own policies,
one of the indicators that the government has lost control of the
actual economic when it is forced to actually seize control of
businesses, the means of production within various sectors of the
economy, especially the financial sector. As stated before, this is
not a new path, but one that has gradually been enlarged to the
point where we now find ourselves.
←
← While there are different definitions of Socialism, the fact is
that the common thread throughout all such definitions is
increasing necessity of government controls and what amounts to
de facto ownership over the means of production and distribution
of goods and services. It is the government’s ability to gain and
then exercise control over economic matters that increasingly
cause markets to lack the ability to adequately calculate
economic information in business decisions. This stealth form of
Socialism is insidious for it gives the general appearance that
government planning is necessary to maintain economic market
viability when just the opposite is true.
←
← When government policy encompasses the power to actually
determine the manner in which economic functions are expressed
in the markets then the entire definition of ownership eventually
falls under government control since the government is able to,
through legislative acts and non-legislative statutes, determine
the actual use of property, as well as the disposal of such
property. The economic movement of goods and services are
increasingly swayed by government policy and regulation, as such
there is, in a very real sense, a transfer of ownership from the
private sector to the public sector or government. While it
appears that there is private ownership within the economy, in
actuality that ownership is only nominal since it has been
effectively transferred via such legislations and statues.
Essentially, a nationalization of economic functions has gradually
taken place where government controls and mandates supercede
the ability of control over property rights traditionally thought of
as being solely owned through the determination of actual title to
goods and services by individuals or companies.
←
← Such gradualism toward a Socialistic economy has, of
course, been accomplished under the name of capitalism, the
government allowing for a degree of capitalistic traits to be
maintained to continue the ruse. Essentially, while it appears that
actual private ownership is legally maintained the fact is that due
to the legislative and mandated controls, private ownership is
actually only maintained as long as the legal restraints on that
private property are fulfilled by those who claim such private
ownership. If the legal restraints are violated, which is a rather
simply matter for the government, at any level, then the
government can step-in without any consideration of what should
be protected private property rights.
←
← It must also be understood that the actual definition of
private property and the rights that protect such property have
gradually been diluted, being now dependent upon the allowances
of government legislation. It is generally accepted by the
population that their property is subject to potential intervention
by the government, whether that intervention is through
restrictive regulation, increasingly heavy taxation, or more
drastically, the potential for forfeiture to some government
agency. No longer is allodial title to private property sacrosanct,
but all title to property rests solely at the political and
bureaucratic whims of government. Gradually, what has been a
mixed economic system is being transformed into a completely
Socialistic economic system, though it will never be described as
such.
←
← Through the last century and a half, this economy has gone
from a free-market to a mixed economy and is now moving
toward a completely quasi-Socialistic economy that is
characterized by government corporatism and economic tyranny.
The consequences of such a transition however, will not be as
simple as the political class envision, the resulting chaos
stemming from this transition has the potential of destroying the
political superstructure as it now stands. Under the mixed
economy that began in earnest during the 1930s the system
requires intervention by government; as stated, it eventually
becomes inevitable that more and more intervention is required
to maintain the system.
←
← While under a mixed economy, the means of actual
production and distribution are maintained privately, but are
subject to government control; this continues until the effects of
such intervention creates an increasing need for more
government intervention, so much so that economic distortions
eventually require the government to intervene even more into
economy to the point that it must take drastic measures to
maintain the economy. Such measures always fail to accomplish
the stated purposes, as such more measures are required to keep
the system afloat. As economic chaos increases, the uncertainty
of the public is used to the advantage of the government, making
it politically palatable for the government to propose more
intervention, leading to more chaos requiring more intervention.
← As this government takes upon itself responsibilities that are
normally associated with the markets, it is the government that
ultimately decides how goods and services are created, used and
disposed. Eventually, of course, such interventions bring about
such distortions in the markets that it becomes impossible for the
government to reverse the effects of such distortions.
←
← We have already reached the point where the government
must begin to institute certain controls to maintain the system it
has created. Such controls will come in the form of a greater
degree of manipulation of wages and prices until the manner in
which the division of labor is determined in the market is
corrupted and non-functional. The mere act of buying and selling
is no longer governed by the markets alone, but by the legislative
policies of government. As the intervention continues, at some
point the right to bid pricing on a good or service or the right of
ask pricing no longer applies, this happens because of the
controls that the government institutes and must institute to keep
a semblance of functionality within the economy. This however,
only exacerbates the problems associated with continued
economic distortions until shortages begin to appear within the
market.
←
← The Obama Administration has already given plenty of hints
as to what is in store for our country. Recently, Mr. Obama stated
that:
← “We’re not, we’re not trying to push financial reform because
we begrudge success that’s fairly earned. I mean, I do think at a
certain point you’ve made enough money. But, you know, part of
the American way is, you know, you can just keep on making it if
you’re providing a good product or providing good service. We
don’t want people to stop, ah, fulfilling the core responsibilities of
the financial system to help grow our economy.”
←
← J. Kenneth Galbraith said:
← "There is a widespread notion that one of the most primitive
of modern ideological choices is whether a government shall be
Keynesian or not . . . no present or future administration really
has the non-Keynesian choice."
←
← As the future will prove, the Administration will engage in a
soft form of wage and price controls, but even in the soft state,
such controls will ultimately be devastating in terms of economic
functions. Such destructive attributes associated with wage and
price controls eliminate the rights of ownership in the private
economy. It is a de facto form of Socialism that has all the
characteristics of a Socialistic economy in everything but name,
all which remains of free market capitalism, is an empty shell.
← Such controls deprive those in business from the use of their
capital freely, the uses ultimately being determined by the
various measures implemented by government. The government
interferes with the natural economic market functions,
interjecting conditions and restrictions on business to the point
that businesses can no longer use their capital in the most
profitable manner possible. The limitations on profit filters
through the economy, diverting resources and redistributing
those resources in ways that cause economic distortions.
← Now it must be understood that such controls have been in
place for decades, but with the election of Barack Obama, the
goal of transforming the United States into a Socialistic society is
closer than ever. It is clear, not only by the actions and the words
of Obama, that the intentions of the Administration are far from
what could remotely be considered Constitutional, or even
American for that matter, but it is also clear that Obama is
following a well-beaten path of Socialistic ideology that has
plagued this country since the period of Lincoln.
←
← The entire impetus from the period of Lincoln to Obama has
been, with little interruption, a path of the consolidation of a
nationalized government with the power to control every aspect
of the lives of individuals. In order to do this it was necessary for
the free-market to be completely destroyed and a system of
centralized planning be implemented. The first barrier that had to
be removed was sound money, after that it was necessary to
implement a form of economic theory that would not only allow
the government to gain control over the economy, but would
make it necessary for it to gain control through the gradual
destruction of monetary and economic functions that operate
according to free-market principles.
←
← Keynesian economic theory was, without a doubt, one of the
single most important tools in the Marxist agenda for this
country. As Joan Robinson, a Keynesian economist stated: “ the
differences between Marx and Keynes are only verbal”. The
agenda is to control, not necessarily to own all productive and
distribution avenues within this country and to do that it is of
primary importance that the government bring about a certain
degree of disruption in the economy. Such a disruption, whether
intentional or not, would make it necessary for more and more
government intervention into economy and social matters.
← As a former Keynesian Economist, Dr. L.A. Hahn stated: For
it [the Keynesian view] presupposes an economy whose members
do not see through the changes brought about by monetary or
fiscal manipulation or as some might say, the swindle. Above all,
it presupposes that people are blinded by the idea that the value
of money is stable by the "money illusion."
←
← It is indeed an illusion, there is nothing real about the
Keynesian economic foundation upon which this economy now
rests, nor is there any reality within the fiat monetary system
that keeps the government expanding. The key to ability of this
government to expand its power, abusing the delegated and
enumerated powers along the way, is the fiat monetary system
employed by government to bypass all Constitutional limitations.
←
← As the government continues to expand its influence over
the lives of the individual, as it seeks to redistribute the wealth of
the people into what it considers a more equitable distribution, it
produces, in reality, a stratified society where the ruling classes
are never included in the egalitarian plan. A government
aristocracy develops that sets itself above its own mandates for
Socialistic equalities; those that are privileged exclude their own
participation in meeting the required mandates of government
legislation.
←
← Unfortunately, for the government, central planning can take
unexpected paths; usually it forms chaotic paths due to the
effects of intervention in the market. While it most certainly
appears that there are those within this government to have full
faith in the ability of government to actually control economic
mechanics, the reality is that it is simply impossible. All efforts in
that direction only increase the distortion already created by
previous government intervention and interference into the
market. Those within government, the politicians and bureaucrats
will always seek to expand production within the economy
however; the massive inefficiencies brought about by the
governments own intervention in the markets inhibits such
production. The incentives of production are destroyed, not only
are the incentives to produce destroyed, but the incentive to act
productively is destroyed by the unending cycle of government
intervention necessary to keep the system hobbling. The really
amazing fact is that even in the face of such overwhelming
evidence of the failure of Socialistic economic policies, most
politicians who adhere to such ideology are completely unwilling
or unable to abandon the ideology.
←
← As with all Socialistic or quasi-Socialistic political economic
systems, the resources and funds required to maintain such a
system become enormous, even crippling to the markets. Instead
of providing economic stability, the results are chaotic disruptions
as the government intervention apparatus continues to intervene
to correct the problems resulting from the previous manipulations
by the government in the economic processes. It is a cycle of
destruction, feeding upon itself as the government continues to
gain more and more control over economic matters. Eventually,
the entire system becomes unmanageable and the controls
unenforceable. Under such system there can never be any real
planning, such planning must eventually reach the stage of
reactionary responses to the consequences of the governments
own policies and legislative mandates. Real control becomes
illusionary.
←
← As the government assumes more and more responsibility
for the economic well being of the citizens, the less well being
there is to go around. Everyday life becomes almost unbearable
as people attempt to skirt the system that has entrapped them.
Resentment and open hostility will manifest, causing the
government, in the interest of its own survival, to brutalize the
people. Individual freedoms are sacrificed for The State
Collective, propaganda is geared toward any hint of discontent
and those who intend to rule do so with the cruelest intent.
← As failures mount, the government is quick to place blame,
that is, to place blame on anyone and everyone other than itself
and its policies. The government must turn to external threats in
hopes to rally the people behind it and no longer depends on
reality of potential threats, when it is enough to fabricate those
events to garner support. Of course, corruption is always present,
but now and then it becomes necessary to expose internal
corruption to maintain a degree of legitimacy in the eyes of the
people.
←
← As the Socialistic economic and social system crumbles
under its own weight, the government must resort to overt force
to maintain its control over the people; there is no other
alternative but state-terror as a sanctioned method of
maintaining its power.
← The Obama Administration has set its course, a course that
is resulting in one of the most massive periods of deficit spending
in the history of our country; the only real method for financing
that spending is a policy of inflation since there is no possible way
for this government to tax its way to solvency. Using the
government’s favorite instrument, fiat currency, it has been able
to spend with wild abandon without the worry of massive taxation
at this point to keep the system working. Factually, there is
absolutely nothing this government can do, or will do, to get itself
and this country out of this situation it now faces.
←
← The actions of this government have been, and are,
distorting, actually destroying the uniform rate of profit that the
markets normally establishes and governs. As such, this
distortion can be seen in the manner in which businesses make
business decisions and even how they account for profit. The
entire system of fiat currency and the economy on which that
system must be based creates some of the most destructive
economic factors that eventually cannot be hidden in the real
world. The rate of influx within the withdrawal and injection of
capital is contorted through the inflationary depreciation of the
fiat monetary regime. As such, the actual profit and therefore,
capital available to business and even individuals is a façade and
cannot provide an accurate portrayal of economic reality. This
distortion can easily be seen by comparing profits without the
effects of inflation with the effects of inflation on the rate of
profit. Eventually, this begins to corrode the basis of production,
even the motives behind production. Indeed, since the rate of
profit becomes distorted, over time, the measure of total
production also is distorted, as well as the ability of business to
correctly anticipate actual consumer demand.
←
← It should be evident that along with the distortions created
by the monetary system and the manipulation of that system,
there has, by necessity, been a drastic increase in what can only
be considered an almost completely subsidized economy,
generated by the power of government to redistribute wealth
from what remains of the productive sector of the economy to the
non-productive sector, as well as those businesses which are
politically connected. Subsidies are nothing more than a form of
price control, along with such price controls; wages are equally
manipulated through various means, from taxation to fiat
inflationary depreciation. Under such a system, there can never
be real expectations of stable future pricing or wages sufficient to
keep pace with unstable fiat pricing. Since the economy adjusts
itself to the quantity of money available, the fiat monetary
system, being manipulated by external forces, i.e. the
government, the adjustments themselves are a product of
quantity distortions in the supply of fiat money.
←
← A problem arises when this distortion affects the value
judgments of businesses and individual consumers, which, in
turn, affects the demand within the economy, usually causing a
misallocation of resources and labor. There is a very good reason
why a fiat economy must depend upon a great deal of fiat credit
creation, the system by itself, cannot maintain economic progress
over a long period of time and will falter without such fiat credit
creation. Such a condition, of course, creates a number of
dangers, the least of which is the level of accumulated debt that
must be held to maintain the fiat economic system.
←
← Additionally, since the normal and healthy forces within a
free-market economy are manipulated, and thus distorted, by
government intervention, the actual supply of resources are
diverted to elements within the economy which, may or may not
be the most important employment of those resources as they
would be under a free market economy. Government regulation
tends to create these diversions of resources, rerouting resources
to less efficient production that would be normal under a free
market. Normally, in a free market, the market will naturally form
a variable range where supply and demand expand and contract
naturally, the same cannot be said of the government’s
manipulated economy. A free market will determine all prices by
costs of production; this is done with respect to the individual’s
economic value judgments as a balance is achieved in the market
based on the various forces at play within the economy. In the
Socialistic economy, eventually no such value judgments are
possible, supply and demand become skewed according to
government policies affecting those forces.
←
← What was once only a transitional form of Socialism has now
been implemented forcefully by the Obama Administration. This
form of Socialism cannot be considered traditional Socialism, but
is a conglomeration of Socialistic principles mixed, by necessity,
with free-market principles, but the transition to a total Socialistic
system is much closer under the Obama Administration than at
any other time in our history. The problem that the Obama
Administration seems to be completely oblivious of is the fact that
under such a system there can be no real economic progress, the
economy falls into deeper levels of disarray, requiring more and
more government intervention just to create a degree of balance
within the economy.
←
← While the former Soviet Union suffered a rather rapid decay
due to various factors, the least of which were an unsustainable
Socialistic economic system, the United States will suffer form a
slightly different type of economic and social decay. Obama’s Kiss
of Death will include a combination of factors that were not
prevalent in the former Soviet Union, but there will be
comparisons to be sure. The fact that the United States has been
so dependent upon an open fiat monetary system, fractional
reserve banking system and fiat credit creation that there will be
a much more intense form of decay, causing an intense collapse
on many fronts, including societal.
←
← There will be a convergence of events taking place through
the fiat economies around the world, the events of the United
States will prove to be a fatal blow, not only domestically, but on
the foreign economic fronts. As the economic situation grows
worse, so too will the attempts of the government to maintain
control and power. These attempts will naturally include tactics
that will not be mistaken as anything but tyrannical, despotic and
cruel. The government will take upon itself life and death
decisions that will impact every aspect of the lives of the People
of this country.
← As an high rate of fiat inflation turns extreme, more extreme
price controls will ensue, making matters worse, leading to
massive shortages and setting off a cycle of uncontrollable events
that will seem, in many respects, contradictory in traditional
economic terms since there is no real historical comparison
available. A hyper-inflationary depression will produce events that
mimic both deflation and inflation, but are not, in the strictest
sense either. The displacement of employees will be massive as
layoffs increase at an alarming rate. Many of the most respected
companies will be wiped away with a rapidity that will literally be
shocking and economically earth shaking.
←
← Property rights will be the first to suffer then will come the
abolishment of all individual rights. There will be a rapid rise in
black market activities and the government will seek to impose
draconian measures to prevent such activities, without much
effect. The forcible expropriation of the means of all production,
the implementation of heavy-handed controls of both prices and
wages will inevitably create even more chaos. We will see
starvation on an ever-increasing scale, along with acts of
desperation by the public as mass confusion and distrust spread.
Widespread violence will bring about even more acts of abuse and
even atrocities which will be viewed as necessary and perhaps
even proper [by the political elite] given the increasingly
uncontrollable situation.
←
← The Panic of 2008, which is the preview of events to come,
will appear to be good times as the economic system deteriorates
in the most surprising ways imaginable. Economic and therefore,
social dislocation will be nightmarish in the extreme, social unrest
will gravitate toward complete chaos and all faith in government
will be erased.
←
← The real danger, particularly for this government, is the
social unrest that will result from such distortions. There will
either be a complete breakdown of the economic functions in this
country or there will be a continuation of a gradual disintegration,
which will allow the government to implement a complete
Socialistic economy, thus a society, without the need for forceful
restraint. In other words, if there is a very gradual decline in the
economy well-being of this country then the people will be much
more receptive of such government controls and intervention. If
however, there is a rapid disintegration, which at this point can
be expected, then the likelihood of a drastic backlash against
government intervention is possible. The traditional views upon
which this country was founded have a chance of resurfacing
during such a period of disintegration.
←
← That being said, there is still hope and it is not the kind of
hope promoted and promised by this illegitimate Administration.
It is a hope of Restoration, a hope that the People of this country
have reached the point where they are no longer asleep and have
started to question the actions and motives of their government.
Perhaps the greatest force to confront this heavily centralized
government is the 10th Amendment Movement and the
empowerment of the Several States to interpose themselves,
effectively nullifying federal government actions and laws in favor
for a much more Constitutional stance. The concerted efforts of a
growing number of States, with a growing awareness and support
of the Citizens of those States, will be persuasive, as the
movement grows, so to will be the pressure on the federal
government to reconsider its stances and actions.
←
← A plea to the common sense of the American People, or at least that,
which remains, will go far in crippling the goals of this Administration.
There will come a time, and we have almost reached that point, when the
American People will finally have had enough of the folly instituted by this
government. We are fortunate in that the People of this country are not
accustom to nor inclined to trust nearly as much as other countries where
the tradition of being subjected to a paternal government was generally
accepted as normal. There are rumblings in the land, and many of those
rumblings are coming from the some of the more surprising places and
people.
 13/05/2010 05:21:00
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