DATA FACT?

What a tangled web we have weaved!

(part one of a two part series)

DATA FACT

Conservative Republican Ronald W. Reagan was the 40th president of the United States. Shortly after taking office on January 20th, 1981, he began his goal of making America great again by implementing sweeping new political and economic initiatives. Dubbed “Reaganomics”, his supply-side economic policies advocated reducing government spending, economic deregulation, and most importantly tax rate reduction. These measures to spur economic growth were directly responsible for the prosperity seen in the 1980’s.    

One of the most radical changes to society which sprang from ‘the decade of wealth’ was the sudden birth of the home computer. Once a staple of science fiction, the idea of actually owning your own computer became a reality. The earliest practical uses were business applications and word processing, as well as early text based games. Computer technology advanced rapidly. An observation by Intel co-founder Gordon Moore that number of transistors in a dense integrated circuit doubles about every two years, while production costs halved, became known as Moore’s Law.

Many tech savvy individuals experimented with software development to justify the cost of purchasing these very expensive machines. There was no easy way of transferring data although there were some primitive networks for those who knew how to contact and connect to them with a modem. This changed on March 12th 1989 when Tim Berners-Lee dreamed up a system of Information management allowing data to be exchanged by multiple computers over a vast network, which we now refer to as the Internet and the World Wide Web. In 1992, IBM developed the first ‘smartphone’ called the Simon Personal Communicator. Today, thirty years after the birth of the internet, people have the sum total of human knowledge at their fingertips and the world has never been more connected.

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A fist full of dollars

The are many ways to make money or save money using the internet and the world wide web, whole books have been written on it, thousands of them.

There are crowd-fund platforms to help you market your invention, e-banks which promise better interest rates and less fees, sites with personal finance tips and tricks, streaming media to watch or download, market places to buy and sell new or used items, the list goes on. The net is big business!

The magnificent seven

  1. Staying in touch – E-mail and text messages now exceed personal  letters and phone calls.
  2. Making friends – Social media allows us to connect with people we would never have met. InstantCoffeeWisdom has over a hundred followers from sixty countries around the world. My twitter account has over seven hundred followers, dozens of whom I’ve met and interact with. I’m grateful for all my friends and supporters.  
  3. Being creative – There are endless DIY tutorials online to demonstrate and inspire.
  4. Finding help – Got a problem? There’s a website that has an answer or solution.
  5. Learning – Online courses teach you anything if you study and apply yourself.
  6. Media – Nearly everything that’s ever been written, recorded, or filmed, exists somewhere online, usually available for free if you take the time to search for it.
  7. Shopping – E-commerce has changed the way we shop, and in many cases has brought about the death of some prominent chains. Radio Shack, Toys R Us, and Borders Books are all long gone, casualties of online shopping. Someone, somewhere in the world has the exact same, or very similar item for much less, and in some cases with free shipping.  You just need to search for it.

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The Good, The Bad, and The Ugly

Everything I’ve listed so far has been good. The bad part is that with so much information and equal mis-information it’s easy to get the wrong source and end up believing in lies. Not everything online is beneficial, and sometimes digging through the ‘fake news’ to unearth the facts isn’t like finding a needle in a haystack, it’s like trying to find a needle in Kansas! The signal to noise ratio is just that great. Worse yet, certain social media platforms use algorithms to selectively edit what you see. Cookies stored in your computer’s memory record and track your browsing history, and bots customize what you see.

The ugly part of the web can range from annoying to horrific. There are some things online that you do NOT want to see, the stuff of nightmares placed online either as a warning, or because some sick individual wanted to share it because they liked it. What has been seen cannot be unseen, beware! There is an entire ‘dark web’ that’s lying under the surface and is just one misplaced or misguided keystroke away. There are internet ‘trolls’ who live to post hateful and hurtful comments in any post that has a reply field. Whole web pages have been created by cyber-bullies to intimidate and humiliate their victims. People have committed suicide over such personal attacks.There are more scams to trick you into handing over personal info than you can shake a stick at. Black-hat hackers have created so many forms of malware that anti-virus protection is a must on any computer. And then there’s the 800 lb gorilla in the room, PORN. When I was a young boy, porn was sold wrapped in plastic, and not kept on display. XXX theaters were in the seedy part of the city where you were afraid to walk in broad daylight. You had to go way out of your way to obtain smut, and now it’s in nearly every home in America, just a click away.

The heart is deceitful above all things, and desperately sick; who can understand it? “I the Lord search the heart and test the mind, to give every man according to his ways, according to the fruit of his deeds.” – Jeremiah 17:9-10 ESV

The good person out of the good treasure of his heart produces good, and the evil person out of his evil treasure produces evil, for out of the abundance of the heart his mouth speaks. – Luke 6:45 ESV

The internet is a tool, and like any tool it can be used for good or evil.  Whoever controls the flow of information can control you. Are you being lied to? Do you even realize it? Who is Q? Ponder these questions until next week, and check back for part two, HOW DEEP IS THE DEEP STATE? As always, I wish you success and happiness!

How big is the Federal deficit?

Can the debt ever be repaid?

How big is the federal debt

“A national debt, if it is not excessive, will be to us a national blessing.” – Alexander Hamilton

The average American doesn’t understand how money, budgets, and debt work at the local level. Personal finances are referred to by economists as ‘microeconomics’. When you start dealing with the finances of nations, your discussing what is known as ‘macroeconomics’. In any case, the underlying principals of income, budgeting, and debt are basically the same, only the scale is different. Savings is always good, and debt is never your best choice. Debt in and of itself is just a tool, but it can quickly spiral out of hand, and you are always spending more money when you go into debt than if you were to pay the full amount upfront in cash. The decision that needs to be greatly mulled-over is the benefits of waiting verses the benefits of instant gratification. 

Going into debt for any reason is never to be taken lightly, and should NEVER be used for trivial pursuits. Sometimes it can be very important to make an purchase in order to establish a platform for future benefits.  On a personal level, an example of this could be purchasing an automobile. There are not many individuals who buy brand new cars outright with cash, though older, used cars might be attainable. In some parts of the USA a car is a necessity. You can’t get to work, or buy groceries because there is no direct public transportation available.  Buying items you really don’t need like the latest video game, or the newest smart phone are examples of foolish debt.

In 1803, the USA doubled in size through a land deal between the United States and France, in which the U.S. acquired approximately 827,000 square miles of land west of the Mississippi River for $15 million. Known as The Louisiana Purchase, this deal was more than the country could afford even at the bargain price of 3¢ per acre, yet it was also an offer that then president Thomas Jefferson could not refuse.  The purchase deal  had to be paid immediately because Napoleon needed the funds for a war with Great Britain.  As a result the US was forced to borrow the funds from two banks in Europe at 6 per cent interest.  It took twenty years to pay back the loan, and cost $8 million in interest fees.  Even after the repayment of the loan in 1823, the USA remained in debt for another twelve years.  On January 1, 1835, president Andrew Jackson paid off the entire national debt. That was the only time in U.S. history that had been accomplished.              

Most nations have national or sovereign debts, and there is nothing wrong with having a debt in many cases. Most creditors don’t worry until the sovereign debt is more than 77 percent of GDP, according to the World Bank. In the fourth quarter of 2018, the U.S. debt-to-GDP ratio was 105 percent. That’s the $21.974 trillion U.S. debt as of December 31, 2018, divided by the $20.891 trillion nominal GDP. So the USA is in ‘the danger zone’ where creditors could begin panicking.  This was one of the reason we lost our historical AAA+ credit after the deficit doubled under the Obama administration.  

The national debt is made up of a few things, and is the total of all the bonds held at the Federal Reserve. Money begins and ends with the issuing body. When certain debts are extinguished, so is the money that created them. US Federal reserve notes are based entirely upon debt having been created through the process of fractional reserve banking. In this process, bank notes are printed and then loaned out to be repaid over time with interest. Our money is not based on a gold standard, or backed by any form of precious metals. A dollar is worth a dollar because the US Federal Reserve Bank tells you that it’s worth a dollar. It is a promissory note printed on paper or stamped on a metal coin that is redeemable for an equal amount in goods and services.  For all intents and purposes, a dollar is little more than an I.O.U.  Since all money created has interest attached to it, the amount of debt will always exceed the amount of money  in circulation.

When president Woodrow Wilson created the Federal Reserve Bank by signing the Federal Reserve Act of 1913, he created the perfect excuse of widespread spending abuse by the government. If planned government spending exceeded the federal budget, the deficit could be plugged by borrowing the funds from the Federal Reserve Bank, at interest, for the public good.  As a result, the federal deficit was  $25 billion by 1934, and rose to $250 billion by 1945. In 1982, the national debt reached  $1 trillion for the first time.  There has almost always been massive government over-spending which blew the budget. In the past fifty years,  only five years have had balanced federal budgets: 1969 under President Richard Nixon; 1998, 1999 and 2000 under Bill Clinton; and 2001 under George W. Bush.

The worst example of government over-spending occurred during the two terms of the 44th president,  Barack Hussein Obama II , the worst president in history.   On January 20, 2009, when he was sworn in, the debt was $10.626 trillion. On January 20, 2017, when he left, it was $19.947. President Donald J. Trump has been doing his best to slow the out of control spending, and he has been making progress.  It’s going to take time to repair the damage done by the previous administration.

“President Obama has almost doubled our national debt to more than $19 trillion, and growing. And yet, what do we have to show for it? Our roads and bridges are falling apart, our airports are in Third World condition, and forty-three million Americans are on food stamps.” – Donald J.Trump

The ‘I’ in Team

You earn so much in personal income each year. Your personal income is analogous to the national income from tax revenue.  Your personal budget is like a small scale version of the federal budget. Think of the national debt as you would your personal credit card. It’s the excess that has been borrowed plus interest that has been charged to bridge a spending gap.  If you’re still following along with me in this example, you’re smarter than the average American. 

The nation’s debt limit is similar to the limit your credit card company places on your spending. But there’s one significant difference. Congress is in charge of both its spending and the debt limit. When you max-out your credit card, one of three things happens:

  • You request a limit increase, so that you can continue spending more money than you can afford.
  • You request an addition line of credit, so that you can continue spending more money than you can afford.
  • You stop spending more money than you can afford because no one will extend you additional credit.

On February 9, 2018, President Trump signed a bill suspending the debt ceiling until March 1, 2019. As a result, the limit will be whatever level the debt is on that day. On February 11, 2019, it was $22 trillion. At that level, the U.S. Treasury estimates it will run out of money in September 2019. The debt ceiling is a limit that Congress imposes on how much debt the federal government can carry at any given time. When the ceiling is reached, the U.S. Treasury Department cannot issue any more Treasury bills, bonds, or notes. It can only pay bills as it receives tax revenues. If the revenue isn’t enough, the Treasury Secretary must choose between paying federal employee salaries, Social Security benefits, or the interest on the national debt. Congress created the debt ceiling in the Second Liberty Bond Act of 1917. In 1974, Congress created the budget process that allows it to control spending. That’s why Congress raises the debt ceiling. Congress must raise the debt ceiling so the United States doesn’t default on its debt. During the last 10 years, Congress increased the debt ceiling 10 times. It raised it four times in 2008 and 2009 alone.

In addition to the current national debt of $22 Trillion, the USA also has additional debt in the form of unfunded obligations, or future services that the country has promised to pay for years in the future. This is an estimated additional $80 trillion, but might be as high as $200 trillion according to some estimates.

According to experts, there are three possible ways to pay off the deficit:

  1. Raise Taxes
  2. Cut Spending
  3. Print more money

Unfortunately, each of these by themselves are all bad ideas.

Raising Taxes

All taxes raised in this country are paid for by the top 40% of wage earners.  So 60% of the workers in our country pay ZERO in federal income tax.  This is why tax cuts are always tax cuts on the wealthy. It’s because only the wealthy are paying taxes, and that’s not fair. When you raise taxes on the wealthy, you stymie economic growth and slow the economy, thus reducing tax revenue.  Consistently over time, the government has collected 17% in tax revenue of the total of the portion of the US economy regardless of the tax rate.

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Cutting Spending

When you cut spending there are certain places you can and can’t cut, plus when you do cut some federal program, the beneficiaries of that program are going to have a hissy fit.  50% of the federal budget funds social security and medicate. So you can’t cut that. Salaries of federal employees also can’t be cut, nor can you cut military spending unless you want to weaken the defense of our nation. The only fair way to cut spending here would be to phase out certain programs, and privatize some federal jobs.  The problem with privatizing some jobs is that they are tied into national security,  so only cutting jobs or lowering the starting pay for new hires could reduce costs. Also this would only affect agencies that receive tax dollars to pay bills. Quasi-government agencies like the United States Postal Service would be unaffected (as they were during the recent government shutdown) because they receive no  funding from tax dollars. All of their income is derived from postage sales.            

Printing more money.

When you print more money, you increase the number of  dollars in circulation and create inflation, so the spending power of the dollar is diminished. Also depending on how fast you increase the money supply, you run the risk of galloping or hyper inflation. Galloping inflation is when prices rise 10% each month. Hyper inflation is worse at 50% per month. Now as costs rise, salaries eventually rise to compensate, but any savings you have never increases and is worth less.  Inflation is a tax on savings.

“Blessed are the young for they shall inherit the national debt.”– Herbert Hoover

Is there a way out?

According to economics professor Antony Davies there is a way to balance the federal budget within 5 years

1) Cut ALL federal spending 10% NO EXCEPTIONS.

2) Maintain this spending level for 4 years, no increases, and no adjustments for inflation.

At the end of 5 years the budget will be balanced.

If you keep the budget balanced and maintain that fixed level, eventually the economy will grow and the deficit will be paid off in about 80 years.  There are ways to do it faster. The federal government collects $3.3 trillion in revenue and spends $4.3 trillion. So a straightforward way to pay off the debt would be to increase taxes 20% and cut spending 20% to run a $1 trillion surplus. That would pay off the nominal debt in about 15 years, depending on economic growth and interest rates.  Unfortunately both of these seem unlikely.  It is still possible to accomplish, but pie-in-the-sky programs like the Green New Deal proposed by Alexandria Ocasio-Cortez would destroy our economy, as would an expansion of the welfare state, or any move towards socialism. The best way to increase tax revenue would be through a fair tax or flat tax in which EVERY working person pays an EQUAL percentage tax, with no possible deductions or exemptions. Such a tax would drastically raise the taxes on the poorest citizens while dramatically lowering the taxes on the richest.  You could also eliminate the IRS, and reduce government oversight and expenses related to tax collection and processing.  Everyone would pay their fair 10%. In any case, right now we have the right man for the job sitting behind his desk at 1600 Pennsylvania Ave, Washington D.C.,  working overtime to Make America Great Again! As always, I wish you success and happiness!

PUNISH THE RICH?

What if Atlas shrugged?

punish the rich

“We have a society in which there are an awful lot of people who have no idea that Stalin, Hitler, Mao Tse Tung all came to power promising the same kinds of things that Miss Alexandria Ocasio-Cortez is promising.

“That led to mass murder, led to dictatorship, and led to genocide.

“These promises are old promises, and they invariably lead to bad things. The promise of saying to the people do what you can within the law to make your life better and your family’s life better that system works extremely well. Capitalism is a system that allows people to make something of themselves instead of oppressing other people.” – economist Ben Stein

Recent trends of new Democrats towards establishing socialism in the USA have been unsettling and depressing to most patriots and economists ‘in the know.’ The lack of education and intelligence behind those who think socialism is ‘awesome’ is just staggering. Unable to defend their irrational claims beyond ‘we won’t know until we try’, they often resort to their fallback tactics of changing the subject, or insulting the person questioning them. To make claims of new ideas being ‘scary’ or saying that a person is unqualified  to ask questions because they couldn’t understand the answer is the height of idiocy and indicative of a delusional view of reality.

There is nothing new or awesome about socialism.  The blueprint for totalitarian regimes which inspired some of the cruelest despots  in history was first co-written by Karl Marx and his lifelong friend Friedrich Engels in 1848 when they published The Communist Manifesto.  No civilized nation has ever thrived under socialism. Karl Marx spent his entire life living off the charity of others, earning what little income of his own as a writer. His radical philosophy often resulted in his being deported from one country to another, and he died in poverty  as a stateless person in 1883. Around ten of his friends in London buried his body in Highgate Cemetary.  In 2018, the city of Rheinland-Palatinate (AKA Trier) Germany sold VALUELESS ZERO EURO CURRENCY to commemorate the 200th anniversary of his birth.  Worthless currency to commemorate a destitute person with a worthless ideology is a hilarious attempt to cash in on souvenir-hungry collectors.    

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Millions and Billions and Trillions, oh my!

Since getting elected in November 2018, Alexandria Ocasio-Cortez has been pressing for a delusional  government energy program which she calls ‘The Green New Deal.’  Two of the key points of this fools’ errand would be massive government spending which would more than DOUBLE, TRIPLE, and possibly even QUADRUPLE the national debt, and increasing taxes on the rich to 70% or more. In an interview with liberal newscaster Anderson Cooper  the rookie congresswoman was grilled about her unrealistic ‘Green New Deal’.

Anderson Cooper: How are you going to pay for all of this?

Rep. Alexandria Ocasio-Cortez: No one asks how we’re gonna pay for this Space Force. No one asked how we paid for a $2 trillion tax cut. We only ask how we pay for it on issues of housing, healthcare and education. How do we pay for it? With the same exact mechanisms that we pay for military increases for this Space Force. For all of these— ambitious policies.

Anderson Cooper: There are Democrats, obviously, who are worried about your affect on the party. Democratic Senator Chris Coons, said about left-leaning Democrats, “If the next two years is just a race to offer increasingly unrealistic proposals, it’ll be difficult for us to make a credible case we should be allowed to govern again.”

Rep. Alexandria Ocasio-Cortez: What makes it unrealistic?

Anderson Cooper: How to pay for it.

In that same interview from the Jan 6th 2019 episode of the news show Sixty Minutes, the former waitress turned rookie congresswoman went on to claim the rich didn’t pay their fair share of taxes, and that President Donald J. Trump was a racist. Ironically, many high-ranking Democrats think Alexandria Ocasio-Cortez is a fruitcake.  

The so-called Green New Deal may tally between $51 trillion and $93 trillion over 10-years, concludes the center-right policy American Action Forum, which is run by Douglas Holtz-Eakin, who directed the non-partisan CBO from from 2003 to 2005.

Here’s the reality, the majority of all taxes collected in the USA are ALREADY, paid for by the rich, and the county CAN’T AFFORD any NEW spending of ANY kind because the country is BANKRUPT!  Currently, the national debt stands at over 22 Trillion dollars. The total amount of all taxes collected doesn’t even cover the existing  annual federal budget, let alone the interest we pay on the amount we owe on the national debt.  It is IMPOSSIBLE to spend your way into prosperity as you dig deeper and deeper into a bottomless pit of debt. Increasing the tax burden on the rich is like pouring gasoline to extinguish a wildfire.  

dow history

If you examine the historical prices of the Dow Jones Industrial Average from its inception, the value of Dow was almost flat during decades of excessive taxation of the wealthiest Americans.  In 1913 the MOST the richest Americans paid was 7%. After Democrat President Woodrow Wilson encouraged Congress to pass the Revenue Act of 1916 the top tax bracket jumped to 67%, then 77% and by 1944 peaked at 94%. It never dropped below 70% until President Ronald Reagan pushed the Economic Recovery Tax Act of 1981 through Congress and slashed the top rate down to 50%. The Eighties was a time of great national prosperity and innovation. When you free up the financial resources of the mega-wealthy,  they tend to reinvest those resources back into the economy creating new jobs, which in turn raise addition tax revenues. If you punish the wealthy, they simply leave for greener pastures, opening factories and offices in foreign countries and creating the new jobs overseas. One recent example of  this was when Jeff Bezos snapped his fingers and killed a deal which would have created 26,000 new jobs because of the constant backlash from Alexandria Ocasio-Cortez who objected to promised tax breaks for Amazon.    

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The Richest Men In the World  

  • #1 Jeff Bezos $137 billion USA
  • #2 Bill Gates. $89.5 billion USA
  • #3 Warren Buffett. $78.7 billion USA
  • #4 Bernard Arnault. $66.1 billion FRANCE
  • #5 Amancio Ortega. $57.7 billion SPAIN
  • #6 Carlos Slim. $56 billion MEXICO
  • #7 Mark Zuckerberg. $52.3 billion USA
  • #8 Larry Page. $50.5 billion USA

There are 2,208 billionaires dispersed in over 72 countries worldwide. This elite group is worth $9.1 trillion. Their average net worth is a record $4.1 billion.  The combined net worth of JUST the EIGHT RICHEST MEN is equal to the combined net worth of  50% of the population of the planet.  Americans lead the way with a record 585 billionaires, followed by mainland China with 373. About one quarter of all billionaires are American citizens.   Five of the 8 top richest billionaires are American citizens, and the first billionaire in world was also an American citizen, John D. Rockefeller . Again the combined total net worth of ALL billionaires worldwide is $9.1 trillion. Even though only a quarter of all billionaires are Americans, let’s ASSUME for this example that these lucky citizens  account for half of the wealth of all billionaires or $4.55 trillion.  Annual Federal spending is currently about $4.2 trillion. If we seized the entire assets of every single billionaire in the country, and left all 585 of these people standing naked, homeless, and hungry out in the street, we might be able to pay for THIS year’s federal budget.  And NEXT year, when we have ZERO billionaires living in the US, where are we going the get the funds to cover next year’s $4.2 trillion budget? If you think those 585 naked, hungry, homeless billionaires are going to suddenly become mega-rich again, I suggest then that you try standing naked outside in a big city and see how fast you gain wealth.  As always, I wish you success and happiness.

THE BIG PICTURE!

Do you have ALL of the pieces?

(Part one of a two-part series)

The Big Picture

“No one lives long enough to learn everything they need to learn starting from scratch. To be successful, we absolutely, positively have to find people who have already paid the price to learn the things that we need to learn to achieve our goals.”– Brian Tracy

As we progress in life, we grow in knowledge and experience and as a result come to understand that things aren’t always as they seem, or aren’t really they way we believe them to be. Adults understand more than children. Teachers understand more than their students, up until the student totally masters the subject and moves on. As long as we have air in our lungs, we still have opportunities to educate ourselves and improve our lives. Knowledge, like money, is power. Just as the rich ‘rule over’ the poor, the smart ‘rule over’ the stupid. The problem is there are more uneducated people in the world than there are educated ones. There are more lazy people then there are industrious. There are more unsuccessful people than successful.

One piece of the puzzle.

Big Picture 1

What if I told you that the photo above was a picture of a priceless work of art, valued at almost a billion dollars.  You’d look at that picture, scratch your head in wonder and confusion, and probably say that only an idiot would pay that, or that you could paint a better picture and deserve the money more.   

America has a free market, capitalist economy. As a result, we have created more wealthy, successful people than any other country in the world.

The American oil magnate John D. Rockefeller became the world’s first confirmed U.S. dollar billionaire in 1916, and still holds the title of history’s wealthiest individual. The majority of billionaires and millionaires in the world are Americans.  

Last month, Democrat Rep. Alexandria Ocasio-Cortez of NY said a society that allows billionaires to exist while some Americans live in abject poverty is “immoral.”

Becoming rich, educated, and successful doesn’t happen by accident, or overnight. It takes years and hard work.  Jeff Bezos is the wealthiest man on Earth. He started Amazon.com twenty years ago, selling books on the internet, from  his home. He took advantage of the law of supply and demand, and overtime built the powerhouse that his company has become. Simply put, he gave people what they wanted, at a price they were willing to pay, and made a profit doing it.

The second piece of the puzzle.

Big Picture 2

What if I told you that the picture above was the exact same piece of art. Again, you’d probably compare the two, say they were different, that the second was better than the first, and that both were worthless, and that you could do better.

As I stated previously,  There are more uneducated, lazy, unsuccessful people in the world than those who have decided to improve their lives. In some countries, it is impossible to rise above one’s lot in life, and that is why so many foreigners desire to immigrate to America. In the USA, you have opportunities to succeed beyond your wildest dreams, IF you’re willing to work long and hard to achieve those goals.  Unfortunately,  Saul Alinsky’s protégés  have used his playbook to stir up class envy among the poor and uneducated masses, those he refers to as ‘useful idiots’.  The same  Democrat Rep. Alexandria Ocasio-Cortez of NY also stated just hours after getting elected as the youngest  state representative EVER that she was NOT ABLE to afford to pay her rent for a new apartment. According to cheatsheet.com , at 29 years old, the young congress woman’s net worth is under $7,000. She was only making $26,600 annually before being elected and has been paying down college debts. Alexandria Ocasio-Cortez now receives an annual congressional salary of $174,000.  She was able to bamboozle her constituents to electing her by essentially offering them free lunch.  If she has no understanding of  microeconomics, is it any wonder she is mystified by macroeconomics?

If you’re unfamiliar with those two terms, very simply put:

  • Microeconomics are personal financial issues such as planning your vacation, budgeting your money , paying your rent, etc.        
  • Macroeconomics are large scale financial issues like how business and even entire countries handle their economies.

New York State Governor Andrew Cuomo and New York City Mayor Bill de Blasio both lobbied long and hard to bring AMAZON to NY. Massive tax-break incentives were offered and as a result, a deal was struck for a proposed location in Long Island City.

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Days ago,  Jeff Bezos abandoned this proposed plan to build a new AMAZON distribution hub and second headquarters in Long Island City, Queens NY because of opposition created by Alexandria Ocasio-Cortez.  She was enraged that the richest man on the planet was going to receive a $3,000,000,000 tax BREAK to open this new location. A TAX BREAK. He was not getting three billion dollars from the city, he was getting a discount on future tax liabilities!  Yet this buffoon Alexandria Ocasio-Cortez killed the deal by insulting Mr. Bezos, his company, and his employees, and inciting protests.  The new location would have created 26,000 new jobs, with benefits , starting at $15 per hour, and paying up to six-figure salaries.  There is  no estimate on the incalculable  collateral damage to the city’s economy.

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The BIG Picture!

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If you step back far enough  to see THE ENTIRE PICTURE, everything makes sense.  The Mona Lisa is a half-length portrait painting by the Italian Renaissance artist Leonardo da Vinci painted in 1503. It’s located in France in the Louvre Museum (since 1797). It’s one of a kind, like the USA.  There are millions of artists in the world, and many of them can work in oil paint, and even reproduce a decent facsimile of the Mona Lisa if they really wanted to.   There are also ‘artists’ that use animal dung, or urine as a medium. And there are dummies who would also pay for such works of ‘art’ produced by so-called ‘artists’.  There is ONLY ONE Mona Lisa, and ONLY ONE America. There are many idiots in the world that hate both, and believe they could produce something ‘better’. President Trump sees the BIG PICTURE and is doing everything that needs to be done to repair the damages done by prior administrations and by career politicians intent on seizing as much power as they can. 

There are also some people who claim to see an ‘even bigger picture’.  There are many conspiracy theories out there that claim unknown, unseen forces are conspiring to destroy the USA, and that these same forces are behind creating THE FED, the massive government debt, and the political smear campaign that is being waged against President Donald J. Trump by various media outlets. I don’t really buy into conspiracy theories, but as comedian George Carlin once said, “you should never underestimate the power  of stupid people   in large groups.”   For those who choose to believe in a ‘BIGGER PICTURE’ I’ll discuss Q Anon, the Illuminati, and other popular conspiracy theories next week in the second half of this article, A GAME OF KINGS. Until then, keep watching the skies! As always, I wish you success and happiness!  

How Radical!

Saul Alinsky’s protégés!

HOW RADICAL

“Here, in the United States, we are alarmed by new calls to adopt socialism in our country. America was founded on liberty and independence — and not government coercion, domination and control. We are born free, and we will stay free. Tonight, we renew our resolve that America will never be a socialist country.”— President Donald J. Trump,  2nd SOTU Address February 5th 2019

The United States is the most prosperous country in the history of the world, and all of the freedoms we enjoy in this country are a direct result of the protections of liberty that were written into the constitution by our Founding Fathers. It is the duty of the President to follow and protect the constitution, and to protect our great nation from all threats both foreign and domestic.  We are a nation of immigrants. There is a very small percentage of our population that is actually descended from the native American Indians. (Unlike senator Elizabeth Warren, who claimed for years to be one.)    Even those original native Americans are theorized by archaeologists to have been immigrants from Asia who crossed over an ice bridge that once existed thousands of years ago.    

         

Blessed is the nation whose God is the Lord, the people whom he has chosen as his heritage! —Psalm 33:12 ESV 

Blessed is the man who walks not in the counsel of the wicked, nor stands in the way of sinners, nor sits in the seat of scoffers; — Psalm 1:1 ESV 

It comes as no surprise that most of the Founding Fathers were devout Christians, although most college students today are being taught the opposite. They are also being taught that the USA is a horrible nation that was stolen from the noble native Americans, that socialism is better than capitalism, that God is not real, that the Bible is an outdated book filled with contradictions, That president Trump is an evil man liken unto Adolf Hitler, and even that we ourselves caused the events of September 11th 2001 because of the way our country treats other nations.  Sadly many of the youth of our nation have been targeted by liberals from a very early age, and they lack the knowledge and the moral compass to see though these lies.

Let the Liberal turn to the course of action, the course of all Radicals, and the amused look vanishes from the face of society as it snarls, “That’s radical!” Society has good reason to fear the Radical. [Every shaking advance of mankind toward equality and justice has come from the Radical. He hits, he hurts, he is dangerous. Conservative interests know’ that while Liberals are most adept at breaking their own necks with their tongues, Radicals are most adept at breaking the necks of Conservatives.”– Saul Alinsky from his 1st book  Reveille for Radicals (1946)

Saul David Alinsky (January 30, 1909 – June 12, 1972) was an expert at stirring up discord and organizing discontented mobs to use them to overthrow authority. He preached his message to the counter-culture movement during the 1960s. His tactics have been used time and time again by liberal Democrats to attempt to destroy our great country.  Alinsky wrote three books, a biography of John L Lewis, founder of the CIO, and his most infamous book Rules for Radicals, which is an expansion and update of his first book, Reveille for Radicals.  

Saul Alinsky’s Rules

  • “Power is not only what you have but what the enemy thinks you have.”
  • “Never go outside the expertise of your people.”
  • “Whenever possible go outside the expertise of the enemy.”
  • “Make the enemy live up to its own book of rules.”
  • “Ridicule is man’s most potent weapon.”
  • “A good tactic is one your people enjoy.”
  • “A tactic that drags on too long becomes a drag.”
  • “Keep the pressure on.”
  • “The threat is usually more terrifying than the thing itself.”
  • “The major premise for tactics is the development of operations that will maintain a constant pressure upon the opposition.”
  • “If you push a negative hard and deep enough it will break through into its counterside.”
  • “The price of a successful attack is a constructive alternative.”
  • “Pick the target, freeze it, personalize it, and polarize it.”

Using these rules to organize the mob, Saul Alinsky then believes a nation can be converted to socialism is just 8 steps:

  • 1) Healthcare — Control healthcare and you control the people
  • 2) Poverty — Increase the Poverty level as high as possible, poor people are easier to control and will not fight back if you are providing everything for them to live.
  • 3) Debt — Increase the debt to an unsustainable level. That way you are able to increase taxes, and this will produce more poverty.
  • 4) Gun Control — Remove the ability to defend themselves from the Government. That way you are able to create a police state.
  • 5) Welfare — Take control of every aspect of their lives (Food, Housing, and Income).
  • 6) Education — Take control of what people read and listen to — take control of what children learn in school.
  • 7) Religion — Remove the belief in the God from the Government and schools.
  • 8) Class Warfare — Divide the people into the wealthy and the poor. This will cause more discontent and it will be easier to take (Tax) the wealthy with the support of the poor.

Does any of this sound familiar? It comes as no surprise that EVERY Democrat in power today has read and used his template to attempt to turn the United States into a socialist nation so that they can seize permanent power and be in charge of everything while claiming responsibility for nothing.  It is the goal of every member of the Democratic party to remain in power for life.

I would also like to point out two last things to those who STILL think Saul Alinsky was such a wonderful person:

He credits Satan on his dedication page of his last book

 “Lest we forget at least an over-the-shoulder acknowledgment to the very first radical: from all our legends, mythology, and history (and who is to know where mythology leaves off and history begins— or which is which), the first radical known to man who rebelled against the establishment and did it so effectively that he at least won his own kingdom —Lucifer.” —SAUL  ALINSKY

and

(In an interview with Playboy Magazine.)

 “if there is an afterlife, and I have anything to say about it, I will unreservedly choose to go to hell.” —SAUL  ALINSKY

When the USA began, the creators of our great nation envisioned that government leadership would be temporary, not a lifelong career.  Every president with ONE exception has served NOT MORE THAN two terms. Franklin Delano Roosevelt (FDR), a Democrat and the 32nd president is the ONLY president to have served FOUR terms, dying in office as ‘President for Life’ on April 12th 1945. His unprecedented power grab was excused away as being a necessity as the nation was in the middle of World War II.  The 22nd Amendment to the Constitution  now limits a president to the tradition two terms established by George Washington.  FDR  is responsible for creating many of the government welfare programs like social security which have enslaved many of our citizens to ‘cradle-to-grave’ government dependency, much like Woodrow Wilson (also a Democrat) enslaved our nation to debt.   The greatest presidents of our nation in every century have all been Republicans. The only exception to this is our First President, George Washington (a Whig) and this is only because the GOP wasn’t created yet.

  • 18th Century – George Washington #1
  • 19th Century – Abraham Lincoln #16
  • 20th Century – Ronald Reagan #40
  • 21st Century – Donald J. Trump #45

I became a Christian in college, and I am a lifelong Republican. I have supported President Donald J. Trump since day one, and will continue to do so until my dying breath.  I’m not going to tell you what I think about people who hate my God Jesus, my president, or my country. It isn’t a very nice thing to say.  I will tell you that Donald Trump is a great man who is working hard to undo many of the damages caused by liberal Democrat socialists who have been trying to destroy this great nation. I will tell you that God is real, and the Bible is true, and that anyone who lacks God in their life doesn’t have much of a life at all. God is good always.  As always, I wish you success and happiness!

The Bank That Woody Built!

It’ll be the ‘DEBT’ of you!

the Bank That Woody Built

 

(This is the second of a two part article. For part one, read A FEDERAL CASE?)

 “I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” ― Winston S. Churchill

The State Of The Union

Article II, Section 3 of the U.S. Constitution states that the president “shall from time to time give to the Congress Information of the State of the Union, and recommend to their Consideration such measures as he shall judge necessary and expedient.” The first two presidents, George Washington and John Adams presented this address in person. Thomas Jefferson the third US president felt that proclaiming the state of the nation personally to congress was akin to a king addressing his subjects. Since the Revolutionary War was about freedom from tyranny, the similarity bothered Jefferson. He began the tradition of mailing the written State of The Union address to congress so that they may read it at their leisure and study its contents to best determine how to serve the national interests. This tradition lasted for more than a century.

“I turn to matters of domestic concern. You already have under consideration a bill for the reform of our system of banking and currency, for which the country waits with impatience, as for something fundamental to its whole business life and necessary to set credit free from arbitrary and artificial restraints. I need not say how earnestly I hope for its early enactment into law. I take leave to beg that the whole energy and attention of the Senate be concentrated upon it till the matter is successfully disposed of. And yet I feel that the request is not needed-that the Members of that great House need no urging in this service to the country.”– Woodrow Wilson, State of the Union Address December 2nd 1913  

Progressive Democrat Woodrow Wilson was the 28th president of the US. One of his many personal goals to ‘improve’ the nation was to reform the banking system, and to establish a federal income tax. Wilson was so passionate about establishing a new national banking system that he decided to ‘buck the system’ and personally deliver  his State of The Union address in person. He was the first president to do so since John Adams in 1800. Wilson believed that his oratory skills would convince congress to pass the bank bill.  Unfortunately for our nation, he succeeded.  In addition to getting The Federal Reserve Act passed In 1913, the 16th Amendment to the constitution was also ratified that same year, permanently legalizing an income tax.

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Over a  century of financial slavery!

All banks in the USA are required by law to be members of the Federal Reserve Bank, according to the Federal Reserve Act of 1913. As members, they are required to own debt to the Federal Reserve Bank A.K.A. ‘The Fed’ . The Fed is a privately owned bank, owned by private stockholders, and NOT affiliated with the United States government in any way, except for the fact that the US government must own a certain amount of debt to The Fed, and that the US president must appoint a chairman to The Fed. Candidates on the list for consideration by the president have been hand-picked by The Fed, and he is required to choose ONE from that list. He can’t pick anyone not of the list. So, based upon the candidates offered he would choose whom he felt was the best qualified, even if no one on the list has any qualifications to speak of what-so-ever.  If you’ve ever wondered why the president appointed a certain person to chair The Fed, and not someone else, it’s because he never really had the choice to choose anyone else in the first place.

To explain it better think of when in the Bible, Pontius Pilate presented Jesus and Barabbas to the crowd and asked them whom they wanted set free.  In all four gospel accounts, Pilate lobbies for Jesus to be spared his eventual fate of execution, and acquiesces only when the crowd refuses to relent.  Pilate tried to stack the deck in Jesus’ favor by putting him up against a known murderer and insurrectionist. This should have made the choice an obvious one.  Yet, the crowd chose to free Barabbas over Jesus, whom Pilate was then forced to crucify, and the rest is history.

The Paper Trail       

Banks make money through service charges and debt-loans, the latter ranging from unsecured personal loans and  credit cards, up to  various secured loans such as home, auto, or business. These loans are provided by the magic of fractional reserve banking. Banks are loaning out more money than they have based upon the premise that the debts owed will return more money overtime than the original amount financed, thus earning a return on the investment, or ROI.

Nearly the entirety of the money banks loan out has, in turn been ‘borrowed’ from the Federal Reserve Bank, which sells the debt to the smaller banks.  As for any cash deposits that banks receive from its customers, they are required to retain a fraction of the deposit, and they can loan out the rest. All deposits are insured up to $250,000 per account, so even if the bank should become insolvent and fail, the Federal Reserve will make good on the deposit.

Where does The Fed get all this money that it ‘loans’ to banks?

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Roll the presses!

The US dollar is really just a promissory note, printed by the US Mint for The Fed. It is not backed by any form of precious metal such as gold or silver. It is just backed by goods and services equal to its value. The Fed tells you that the paper note they had the US Mint print has value, but in reality it’s just a  paper I.O.U. Without a hard currency standard fixing its rate, the dollar is susceptible to inflation when the costs of goods rise, devaluing the dollar requiring you to need more dollars to buy the same item when the price is raised.  So this essentially worthless paper labeled as a ‘Federal Reserve Note’  is merely a tool, a place-holder that is exchanged for an item of value despite having no real value of its own, only the say-so of the Federal Reserve telling you that it’s worth a dollar. Whenever a member bank requires a loan from the Federal Reserve Bank, the Fed either orders the Mint to print more money to be shipped to the bank for its needs  if physical bills are needed, or just adds a credit note to the ledger of debts owed. Like when a credit card issuer  tells you your credit limit has been raised so you can spend more money you don’t have on things you don’t really need.

Think of it as ‘robbing Peter to pay Paul’. It’s a vast ponzi scheme that could collapse at any point. This is why runs on banks cause mass hysteria when large numbers of customers try to withdraw all their funds at the same time, and the bank doesn’t have enough physical money on hand to meet the demand because they are only required to keep a fraction of collected money in its vaults while the rest is loaned out, and interest is changed.

An even worse realization is that the US Government gets all of its money directly from taxes collected , and any budgetary shortfalls short falls are borrowed from the Fed, which charges the US government interest on the loans.  When you control the currency of a nation, you control that nation. The borrower is slave to the lender!  

As the amounts of debt owed by the government now exceeds $25 trillion dollars, the interest alone is greater than the total amount collected from all tax payers! National security not only applies to a border wall to prevent illegal immigration, or a strong military to defend us from potential enemies, it also applies to financial security.  Only a fool spends more money than they earn. This is why budget cuts are not only needed, but MUST be allowed to happen.  The country is broke, and if our loan is ever ‘called’ this nation is in serious trouble. As always, I wish you success and happiness!

A Federal Case?

What’s in a name?

(part one of a two-part series on The Federal Reserve Bank.)

a federal case

‘I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government; I mean an additional article taking from the Federal Government the power of borrowing.’– Thomas Jefferson, (from a  letter  sent to John Taylor on Nov. 26, 1798.)

When most Americans see the word ‘federal’ they automatically associate it with the US FEDERAL Government. By viewing the word as synonym instead of as an adjective, it has led to a confusion of meaning. Adjectives describe persons, places, or things, BUT describing something is not always the same as being something, and there are also subjective as well  as objective descriptions which can be led by emotions verses facts. In a very broad example of what I mean, let’s consider the following example: Susie calls Bobby a lazy boy at a birthday party. Her season for the statement was because she didn’t care for the way he wrapped the birthday gift. Does this mean that Bobby IS lazy? Bystanders at the partying overhearing Susie’s statement quickly take sides, some agreeing with Susie, others standing up for Bobby. None of these emotional reactions are proof of the original subjective and possibly slanderous statement made by Susie against Bobby. Yet this seems to be the modern mindset in contemporary society.  It’s like calling Trump supporters racists. If you FEEL someone is something, does that automatically make them that thing? If you hear someone else describe something, does that make it the same for you? While some things may be immutable,  others can vary widely over time or circumstance, and change from person to person.

If you asked the average person in the USA if the Federal Reserve Bank is part of the Federal Government, they would more than likely say yes, and they would be absolutely wrong.

According to Collins Dictionary of English, the number one definition of Federal is:

  1. Federal–of or formed by a compact; specif., designating or of a union of states, groups, etc. in which each member agrees to subordinate its governmental power to that of the central authority in certain specified common affairs.

The shipping company FedEx was originally called Federal Express before the company name was shortened in 2000 to its current moniker. The company was founded in 1971 by Frederick W. Smith and is currently the eight-largest private employer in the US.  Mr. Smith chose the name because  he believed the patriotic meaning associated with the word “federal” suggested an interest in nationwide economic activity. He also hoped the name would resonate with the Federal Reserve Bank, a potential customer.

The Federal Reserve Bank is NOT part of the US government.

The Federal Reserve Bank was the third attempt by representatives of the US Government to create a central banking system to oversee the nation’s financial needs. Unlike its predecessors, this current bank was NOT restricted by a twenty-year charter, and its many economic policies over the past century are directly responsible for the skyrocketing government debt which now exceeds  $25.2 trillion. That amounts to over $81,000 per citizen, or $139,000+ per tax payer (Since not all citizens pay taxes.)     

A bit of history

The First Bank Of The US

The first secretary of state, Alexander Hamilton was a great admirer of the Bank of England and was pressing President Washington to sign a bill creating the First Bank of the US. Washington had grave misgivings against signing the ‘bank bill’. Thomas Jefferson and James Madison  were strongly opposed to the measure.  Ultimately, after considering many opinions on the matter, and having decided that the bank bill was constitutional, Washington signed the bill into law on Feb 25th, 1790. The building for the newly created bank was built in Philadelphia in 1791. Twenty years later, In 1811, the U.S. Senate tied on a vote to renew the bank’s charter. Vice President George Clinton broke the tie and voted against renewal, killing the institution.

The Second Bank of the US

Modeled on Alexander Hamilton’s First Bank of the United States, the Second Bank was chartered by President James Madison in 1816 and began operations at its main branch in Philadelphia on January 7, 1817 managing twenty-five branch offices nationwide by 1832.  President Andrew Jackson was the seventh president of the US, elected in 1829, was absolutely hated the bank, arguing that the  bank was a corrupt institution which failed to produce a stable national currency, was unconstitutional, and was dangerous to American liberties. He managed to convince congress NOT to renew the charter for the bank in 1836. It folded in 1841.

A political cartoon from 1833 shows Jackson destroying the bank with his “Order for the Removal,” to the approval of the Uncle Sam like figure to the right, and the annoyance of the bank’s president, shown as the Devil himself.

1832bank1

“That is to say, under the old way any time we wish to add to the national wealth we are compelled to add to the national debt.

Now, that is what Henry Ford wants to prevent. He thinks it is stupid, and so do I, that for the loan of $30,000,000 of their own money the people of the United States should be compelled to pay $66,000,000 — that is what it amounts to, with interest. People who will not turn a shovelful of dirt nor contribute a pound of material will collect more money from the United States than will the people who supply the material and do the work. That is the terrible thing about interest. In all our great bond issues the interest is always greater than the principal. All of the great public works cost more than twice the actual cost, on that account. Under the present system of doing business we simply add 120 to 150 per cent, to the stated cost.

But here is the point: If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good. “– Thomas A. Edison

The Federal Reserve Bank

The Federal Reserve Act was signed into law by President Wilson on December 23, 1913. It created and established the Federal Reserve System, the central banking system of the United States. It also gave the newly established system legal authority to issue Federal Reserve Notes (U.S. Dollar). The act had far reaching implications including the internationalization of the U.S. Dollar as a global currency.

Unfortunately the massive downside is that since its creation the Federal Reserve, (or sometimes  just called the Fed)  is directly responsible for the national debt, and the devaluation of the US dollar of 92%. The money the USA ‘borrows’ from the Fed is money that is ‘created’. They just order the mint to print more money. Then they charge interest on the created money. Currently the US can’t even afford to pay the interest on the money it’s loaned.

The fact of the matter is that the government NEEDS money to run, but it was no way to produce money. You can’t create prosperity by spending yourself into debt. Consider that over the next week, and come back next Sunday for part two of this long blog post on the Federal Reserve Bank. As Always, I wish you success and happiness!