Zero Hedge had an article the other day on the decline of the middle class. I would like to include in my discussion the working class because America used to have a skilled work force that was as highly paid as many members of the middle class.
I have dedicated myself to preventing World War III and to the abolition of poverty for the working poor. Today I will address the latter though I believe it will form the basis of saying No to war. Frankly, Americans have the lost the ability to say No to Wall Street and to wars for Israel.
Zero Hedge started out discussing why healthcare is unaffordable. According to Baumol’s Hypothesis, labor intensive industries like healthcare and education do not benefit from the gains in mass production we found in manufacturing. That is why a lowly paid working family has to force their son or daughter into a life time of indentured servitude to get a college degree. And that’s why an operation can cost as much as a house in some regions of the country.
I would like to suggest some reforms. I have heard of this thing called the Internet. I would have classroom instruction for all courses be put on the Internet from grade school through university. Granted we will need some teachers to work directly with students. Students will need help to learn to write essays and fiction and to work in chemistry labs. Home schooling and self-schooling will cut the cost of both grade school and university education. It will also force government schools to compete with free education offered over the Internet. Life long education could improve the quality of the work force.
I would also suggest reforming bureaucracy. There are 30.7 million federal, state and local workers if you count contractors and grantees. This makes education and everything else very expensive. Federal mandates in education and in other areas create jobs at the federal, state and local levels that really don’t achieve anything. My goal would be to eliminate most of these jobs and to reduce costs. Some government departments and sections should just completely disappear.
Zero Hedge makes mention of Cartels using government to raise costs and taxes for their benefit. This can be done because there is no public Lobby capable of saying No to the government and the Cartels. GMO food is a case in point.
High profit margins for Cartels are maintained by the federal government forcing competitors out of business. This keeps costs to consumers high and forces small businesses and farmers into bankruptcy. In America in the old days most jobs were created by small businesses. In the modern era the elite want every nation to specialize in one area of production so no nation can ever be independent and self-sustaining. That explains the North American Free Trade Act which sent 56,000 manufacturing plants and 12 million jobs overseas.
Healthcare is expensive because it is part of a Cartel. The Healthcare industry is run for the benefit of Big Pharma and the vaccine makers. I have been suggesting for some years that the treatments we receive and the drugs we are prescribed should be scientifically tested by parties other than those with a profit motive. I have said before that chemotherapy drugs are often sold to us by the doctor at 3 or 4 times what he paid for it. We need to force all parties involved to publish price lists. And we need to test chemo against other treatments. I would suggest testing chemo against Baking Soda. I do not think chemo will test well because I have read that chemo is actually worse than doing nothing. Of course testing the drugs we are forced to choose from will never happen until the people have as much power as the Cartels.
Zero Hedge also mentioned the ability of the people to vote for benefits they did not pay for. Laurence Kotlikoff has followed US unfunded liabilities for the past 30 years of his career as an economist. He has estimated that in addition to the more than $25 trillion in bonded debt we owe that there are $222 trillion in unfunded liabilities. This is beyond our ability to pay.
Unlimited immigration should also be thought of as an unfunded liability. Every ten million additional legal and illegal immigrants lowers wages, increases unemployment, raises rent and taxes and hurts the balance of trade putting downward pressure on the value of the dollar. There is rabid support for candidates favoring Amnesty amongst voters not bright enough to understand why their wages are so low and getting lower. America is on the verge of a massive dollar devaluation. Most observers see the dollar’s coming decline as being the end of the working and middle classes. There are those who say – including myself- that Wall Street has encouraged illegal immigration because they want a Racial Civil War to destroy America.
We will also have to deal with automation which is said will eliminate 40% of the driving, warehousing, manufacturing, clerical and restaurant jobs over the next 20 years. What will we do with all those unemployed people?
The Cartels have decided to slowly euthanize them. That is why there are poisons in the food and water that lowers IQs and causes cancer and other diseases. Why do you think lung cancer has increased in men who never smoked? They were silly enough to trust their government. They took polio vaccines that were laced with at least 40 monkey viruses. SIV 40 was the virus that caused lung cancer in non-smokers. Bisphenol is an estrogen mimicker. It and MSG and Aspartame make Americans the second fattest nation on the earth. Bisphenol is a plastic that lines our food cans. The FDA will not let Campbells soup company advertise that their cans are Bisphenol free. People are being killed by the Cartels and the government will not even let a dissenting company tell people the truth about what they are eating.
Zero Hedge also mentioned Financialization. Money has become a product. In the old days people went to school to become engineers so they could get a job making things people needed like cars and washing machines and TVs. Nowadays students are willing to go $300,000 into debt to get a Masters degree in Finance. If they work at Goldman Sachs and have no conscience, they can pay off their loans. The country has gone to hell, but at least the people at Goldman are making money. I think of Finance as an added cost of doing business just like paying the salaries of 30.7 million government workers.
Adding costs to production just puts more of the real economy out of work. No fear. Wall Street financiers have a solution. If we cannot collect enough taxes from the serfs, just print more dollars. Printing dollars will work until people overseas say No More.
Zero Hedge said, “The State has two core mandates: enforce quasi-monopolies and cartels for private capital, and satisfy enough of the citizenry’s demands for more benefits to maintain social stability.”
Devaluation of the dollar will lead to Hyperinflation, Nationwide Food Riots and multiple Racial Civil Wars. America has more than one minority. In many urban areas whites from 16-29 years of age are a distinct minority. America cannot survive unless there is radical change.
I would propose the following solutions which my regular readers are well aware of. We would first need to get control of the Cartels. To do that I have suggested we use the military to invade The Cayman Islands, Lichtenstein and other offshore banking centers. Seize the client records of the lawyers and all the assets of the Financial Criminal Class. Those assets would include all bank accounts, stocks, bonds and real estate. These funds are to be used to cancel Unpayable Debts worldwide. I would use these funds and the money listed in government agency accounts described at http://www.CAFR1.com to fund pensions in the US. I would give every adult citizen $20,000 to pay off bad debts or to pay against their mortgage or to invest in a retirement account.
To overcome Financialization we would need to take away the ability of the Bankers to charge us interest on money they created out of nothing. To avoid Bank Runs and Depressions we would need to ban fractional reserve banking. This practice gave the Bankers the right to loan out $10,000 for every $1,000 on deposit. That created Booms and Busts. The end of interest bearing currencies would mean that each nation would have a non-interest bearing currency like Lincoln’s Greenbacks. I would make government debt illegal.
The federal government would need to grow the Money Supply at the same rate as the economy to prevent either inflation or deflation. I would spend this increased Money Supply into circulation giving each of the 50 states their share of $100 billion to spend on infrastructure repair. That would be $2 billion a year for a state with a little over 6 million people. I would give another $100 billion a year for building new bridges, roads, sewer systems, schools and other public buildings. This would create jobs. It would lower property taxes.
To further overcome the power of Wall Street I would forever end Third Party control of your pensions and savings. All promises to pay you a pension some decades hence would cease. Pay the present value of that future income into an account in your name at your local cooperative trust. These trusts would make small loans, issue credit cards and offer simple insurance. The profits from these lines of business would go to retirement funds. Younger people would not pay into Social Security. Their money would go directly into their account at their cooperative. Any politician wanting to tax these accounts for some social boondoggle will lose his next election if he can’t be recalled immediately.
Wall Street loves to steal from pension funds, from mutual funds and from their high net worth clients. Every broker at any given time has half a dozen angry customers ready to throttle him. To soothe over his lawsuits waiting to happen he will give each one of these angry people a share of an IPO (Initial Public Offering). In good economic times 80% of the value of an IPO goes to Wall Street to compensate people who were robbed by their brokers or to fund annual bonuses for financial thieves. This practice has to stop. The Cooperative trusts can invest a small portion of their money in the stocks of sound growth companies. This means growth stocks will help increase the value of retirement funds rather than to subsidize an orgy of corruption on Wall Street.
We are going to need to increase economic growth to pay off these pensions. As I have said elsewhere, I would take all of the scientific research held by the Secret Government and give patents to new corporations. I would have the government give these corporations loans to pay for the first few years of operation. All plant and equipment to be operated inside the US. I would give these growth stock shares out to the people in the age groups who would benefit the most. Every $100 in a stock that splits 7 times in 15 years would be worth $12,800. Asset seizures in the trillions would be shared throughout all the retirement trusts as well. Once the economy gets back on track with solid growth any stock investment would double in value. This ultimately will save the economy from the drag of aging retirees.
I would like to have a national Voter ID card that makes it impossible for dead people and illegal aliens to vote. It would also be impossible for people to vote several times at different locations. It would be interactive like a credit card so it would be impossible for poll workers to vote for people who did not show up to the polls. Voter ID cards would be popular because you would have to have one to get that $20,000 credit against your debts. The cards would make impossible the current practice of having multiple social security cards which allows people to collect welfare and retirement funds simultaneously from several accounts. Voter ID cards would solve hundreds of thousands of crimes. And they would make it impossible for illegal aliens to get welfare benefits. This would make self-deportation more likely after Unpayable Debts had been cancelled in their home countries.
I would like to eliminate poverty to give all children an exit path from misery. I would want to cancel Food Stamps and a dozen other programs and lay off a lot of civil service social workers to finance this. If a person makes $8.00 an hour, I would have the IRS give him the difference between their hourly rate and $11.00. That means for a 40 hour week our young man would get 40 X $3.00 or $120 credit to his weekly check. I would give the custodial parent of each child $600 a month for the first child and $400 for the second. Nothing for the third child or any thereafter.
I would also not pay anything to pregnant 14 year-old girls. They might prefer to wait until they are 18 to score a man with a job. She will get $40,000 if she gets married. And if they both work and have 2 children, they will get $11.00 an hour tines 80 hours a week (two adults working full time) plus $12,000 a year for the children. This is a better deal than anything offered by the demagogues peddling welfare as a solution.
I would like to suggest what could be called a Grand Social Compromise. We end poverty. In return we demand clean and fair elections. And we demand reading tests for all voters. Anyone who cannot read English at a 6th grade level will have an ID card but will not vote until they pass a test. Life long education will be free over the Internet.