Friday, September 23, 2016

Declining Global Money Supply Taking World Economy With It

Jeffrey Snider at Alhambra Partners is far smarter than any of the over-educated PhDs at the Federal Reserve. He's been writing for a long time saying correctly that the world's central bankers "don't know what they are doing."  Borrowing heavily from Jeff, I wrote a blog post of the same name here.

He's sounding the alarm that now we're really in more of an economic depression, especially in comparison to the deviation and duration of economic trends that existed up to the financial crisis in 2008.  It's gotten worse in the past 2 years. Economic growth across the world is in noticeably fading with no end in sight. US and EU growth is down to 1% or so and still decaying. Nearly all of the commodity producing countries are in recession as oil and commodity prices collapse. World trade is now declining. Chinese imports and exports are down double digits in the past two years and no end in sight.  No one except Jeffrey Snider has a plausible explanation.

In a brief video below, he explains as concisely as possible what he means:

Here's his graphical evidence of a "long period of economic stagnation" in the US only -- from his blog posts at Alhambra Partners. Stagnation has turned into decline in most emerging markets.

Serious and Long-Lasting Deviation In GDP From Previous Trends.  Even after $9T in New Debt Spending (With Nothing To Show For It.) 
The "Eurodollar,"including all of it's derivatives; swaps, forwards, etc.; the real money supply to the world, has been in decay since about 2011 to the present day. Parentheses around "eurodollar" means it's the aggregate of credit default swaps, interest rate swaps, currency forwards/swaps and other derivatives. Janet Yellen, Bernanke, Allen Greenspan, and the minions of US Federal Reserve PhDs have been oblivious to this financial phenomenon for the entire rise and fall of the "eurodollar." Why else has Yellen been so obviously confused by her forecasts and failures?  The problem is that economists are not trained in world wholesale finance.

Here's the 20 year history of the rise and fall of the REAL money supply to the world -- especially to China and the emerging markets. In recent years the world's real money supply is decaying rapidly and taking the world's economy with it.

The "Eurodollar" is unregulated liquidity that exists on (and off) the large bank balance sheets in Europe and the US. There are nearly no dollars backing these instruments. It's nearly pure leverage and very unstable in times of crisis -- as we found out in 2008. That's why the banks are now fleeing these markets in increasing desperation. It's too risky. "Eurodollars" are literally the antithesis of sound money. It's like "internet money." It's pure leverage with no real "backing" except faith in the money center banking system. But faith in the European banking system is dropping like a rock, especially this year. Major EU bank stock prices are plummeting this year, indicating declining faith in these institutions. Fear is rising as shown by rising LIBOR rates.

Here's the effect of both the rise AND decline of the real global money supply:

Shrinking "Eurodollar" Money Supply Causing Worldwide Economic Stagnation. No One Notices
The US labor market and employment "recovery" has been weak and not as strong as the administration has proclaimed. For the first time ever, job gains are not keeping up with population growth. The so-called economic recovery from the 2008 financial crisis is not anything close to a "real recovery" when you consider Labor.  Still think the unemployment rate is really 4.9%?

Labor Participation at 40 Year Lows As Job Gains Fails to Keep Up With Population Growth. Also, Do You See Any Recovery Of Industrial Production? 
Jeff Snider goes on to say:
According to Snider, there is a realistic chance that there is an intractable structural monetary problem that is leading to economic problems that central banks don’t seem to be able to solve or even recognize. When there are problems in liquidity, LIBOR rises. Looking behind the curtain, Snider finds monetary contraction, not monetary expansion.
There are other implications as well, perhaps more important than just investing. If this is indeed a depression, Snider says, “Historically periods of prolonged economic stagnation, lead to some of the worst types of historical events, usually social disorder, political upheaval, all those kinds of things.”
Most of the economic data after the 2008 data is poor, including Industrial Production. The US Federal Reserve's goals of stronger growth and higher inflation through repeated QEs has not worked. They don't know what they're doing!

Two Years of Falling Industrial Production Begins to Resemble Recession or Depression

Bernanke and Yellen's Inflation Targeting A Total Failure Now

US manufacturing's decline in the past two years will eventually be reflected in declines of the larger service sector. It's happening now. Retail sales, still positive, but still hovering near recessionary levels.

US Services PMI is Trending Down and Now Following Industrial Production Declines.  Soon Contracting?
Until this problem in money markets is recognized, the economic damage continues to accumulate for a longer and longer period of time.  Already, the decay of the world economy is now 2 years in duration. Money markets are now in turmoil due to decreasing liquidity and monetary "tightness." LIBOR rates are rising indicating tightness in wholesale money markets for the banks. Falling liquidity is likely to seriously affect stock and bond markets too. There have already been steep stock market liquidation periods like we saw in August 2015.  Expect more economic pain and market turmoil in the very near future.

Wednesday, September 21, 2016

12 Step Program to F*ck-up Your Country

From Burning Platform blog (h/t ZeroHedge)

  1. Take one country built by other people [take the lands from native Americans, I presume?].
  2. Have a central bank debase the currency.
  3. Inflict metric shit-tons of rules, regulations and taxes on the citizenry, personally.
  4. Drive a stake through the beating heart of the economy – small business (See #3). [Small businesses create 70% of the new jobs in our economy.]
  5. Import millions of illiterate, low-IQ mouth breathers from 3rd world shitholes who have no intention of assimilating or producing.
  6. Dump them on the producers – the descendants of those who built the country.
  7. When the citizenry have a problem with the flood of mouth-breathers, guilt them into submission. If you can’t guilt them, hoot them into silence by screaming PC-conflict epithets at them.
  8. When Government can’t meet payroll – literally paying for all the Free Shit they’ve ‘promised’ to everyone – continue to take out loans you “promise” to pay back (See #2).
  9. Play identity politics by pitting racial groups against each other. The winner gets privileged status. (Pro tip: There is no ‘winner’ and will never be one).
  10. Use the distraction created by #9 to loot the treasury.
  11. Use the friction created by #9 as an excuse to disarm the citizenry using the fig leaf of “safety”.
  12. Keep the citizenry distracted by ginning-up useless foreign wars, bread, circuses and a conga-line of retards in the [Leftist Dominated] ‘media’…

Saturday, September 10, 2016

We're Reaching the End of the Road

I'm afraid that we're reaching the end of a very long road.

Unsound money (fiat money) has led, in recent decades, to huge and unsustainable global imbalances in trade and debt. And because trade deficits REDUCE our nation's GDP, persistent trade deficits in our country leads to rising debt at every level as we try to maintain our standard of living. This is why ran $9 Trillion in government deficits in the past 7 years alone. Can you imagine what our economy would have looked like without all that money? It would have been outright Depression. (I'm not even going to mention the $4T bank reserve creation by the Federal Reserve). All of that debt is masking depression.

Even with our still rising debt (deficit spending) in the last year, China has seen a 25% fall in exports. World trade is declining. Why? Because the US and Western consumers can't afford the imports! Trump is right about trade. Our economy is hollowed-out by the loss of manufacturing jobs and it has killed jobs and hurt our people. Now the US consumer is tapped-out. Furthermore, demographic trends have turned negative in most of the West and China just like Harry Dent predicted and has slowed the economy.

(NB, These budget and trade imbalances over the past several decades could never have happened with "sound" money, as the deficit nation would have seen a loss of gold (money) that would have slowed the economy and reduced imports to a balance with exports. And debt creation would have been severely limited. Exchange rates would have been very stable too. That is the beauty of the gold standard. The gold standard will eventually make a return out of the ashes of the next financial/economic crisis.)

Other reasons why we're reaching (or reached?) the end of the road financially and economically:

1) Rising debt in the West hid the increasing poverty (the wealth transfer from US to China and Japan before them) for awhile. But debt levels have risen everywhere and it's marginal utility to produce growth is nearly gone, even in China. In fact, with a no-growth economy, the world's debt levels are probably not sustainable. Zero interest rates have prolonged that game for awhile. But imagine what happens in the next recession when cash flows decline and debt default spike. Even sovereign debt implosions are a risk, first in commodity producing countries.
2) The real money supply to the world, the "Eurodollar" and it's associated instruments, has been in decay since the GFC with a partial resurrection to 2011. Since 2012, banks have been exiting these markets at an increasing rate. Just look at European bank stocks to see the decline in their trading and profits. Central bankers haven't noticed this most important development! They are willfully blind. (See my comment below about the collapse of competence).
3) QE doesn't work. That's obvious. Even the educated idiots at central banks can see that!  (therein lies the cause of Friday's equity and bond sell-off).
4) Also 30 years of declining interest rates is over. So just steady rates is a trend change (ie., not declining). US rates are now rising as front-running investors can "smell" that the EU and Japan are about to get out of the QE business.
5) NIRP and the risk of depositor "bail-ins" is killing the EU banking system! And NIRP and ZIRP is killing pension funds, insurance companies and retirees. The situation is completely unsustainable.
6) EU banks are a royal mess. Chinese debt is a royal mess. The risk of a Chinese devaluation is increasing as they will surely have to nationalize huge amounts of debt. It's possible that civil unrest may lead to social disintegration if not outright revolution at some point in China.
6) The era of cheap energy is over. If the economy tries to recover, oil prices rise so high that it kills the economy/consumers. If we can't afford high oil prices, then we will not have growth. (because growth causes unaffordably high oil prices!) And the price at which oil is affordable, ie., $40 to $50 per barrel, kills the oil producers and oil producing countries. So, energy production will continue to drop and so will GDP. Energy consumption and GDP go hand-in-hand.  What's needed to "save" us is $20 oil for an extended period.
7) If growth is dead, then the mountain of debt, which continues to accumulate, is unsustainable. The end of the road is defaults, crises, recession and maybe depression.  I fear that debt defaults by companies or entire countries will cause a new round of banking troubles and trouble in global supply chains. It happened in 2008 after all. Collapse is a real possibility.

I didn't even mention the collapse in competence of governance in the West. Competence is in full collapse everywhere--- even in my old line of work -- the oil and gas development business. Nothing is working well anymore. Productivity is in collapse. The millennial generation are a bunch of softies who don't know how to work nor do they know how difficult life really is. I suspect that they are going to face a very rude awakening.

So, we really are reaching the end of the road. We're all in for a rude awakening.

Saturday, September 3, 2016

Obama/Hillary's Foreign Policy Legacy: Failures, Destruction and Lies

Obama and Hillary's foreign policy legacy is a near-perfect record of failures, flops and destruction followed by lies, deception and spin. Then those lies and spin are dutifully and faithfully broadcast by a totally Leftist and administration-compliant media.  Hitler and Goebbels would be proud.

Most people can see that Bush made a huge error in deposing Saddam Hussein as it made a bad situation infinitely worse. But the Obama administration, including Hillary, has been at least 3 times worse! They wanted to depose Assad. That was the US stated policy. Then, they quickly got behind the ousters of Qaddafi in Libya and Mubarak in Egypt when unrest gripped the Middle East.

In Egypt, their installation of Obama's "friends," the horrible Muslim Brotherhood, brought down another Islamic iron fist rule to the country turning it once again into a totalitarian state. A year later, more Egyptians died in a 2nd revolution to overthrow Obama's buddies. The entire episode is a catastrophe of massive proportions.

Speaking of catastrophe, Hillary and Obama's "adventures" in Syria are titanic failures of historic proportions. Their red line to no line idiocy ended up giving Russia and Assad a permanent alliance, assured Assad's survival and vastly increased Russian influence in the region. Meanwhile 10s of thousands MORE people are being bombed and decimated by Russia-backed Assad. Good job Hillary/Obama! Putin is much more clever than the intellectually deficient Obama administration.

Hillary and Obama's hasty departure from Iraq, with no residual force, set the stage for the disastrous rise of ISIS in the region. Libya is now a haven for ISIS too thanks to Hillary/Obama. Yes, the administration wasn't really in control of events in the region but America's positions, actions and inactions did nothing but worsen each and every situation.  Obama and Hillary have been lying for years now claiming that they have a strategy in fighting ISIS. But they have no strategy despite constant assurances to the contrary. Their real strategy is to stonewall and lie to get past the next election.

As a result, Russia and Iran control the Middle East with our traditional ally Saudi Arabia somewhat sidelined. The entire balance of power in that region has been overturned by the extreme ignorance and incompetence of Hillary and Obama. America itself is now sidelined in that region since no one can trust us. We're talking about the most misguided foreign policy fiasco in world history.

News this morning details more lies and subterfuge by Hillary and Obama with regard to the "Iran deal." Almost everything in the Iran deal turns out to be dubious and/or deceptive in effect and implementation -- with Obama and Hillary lying about nearly all of it. It appears that the Obama administration was desperate for any agreement, even if it was bad for America. Every objection on the Iranian side was accommodated. Repeated reports, slowly leaked out since it's conclusion have shown that there are secret side deals with Iran that helped Iran and undermined the intent of the "public"deal!  And there have been plenty of factual reports of Iran repeatedly flaunting the terms of the "agreement."The whole episode stinks to high heaven. To even think that you could trust the Mullahs is a delusion on a massive scale. Obama and Hillary are severely deluded and the Iran deal is fraud meant to impersonate some kind, any kind, of policy success. And we were given a false narrative by our propagandist-in-chief that it was either a deal or war with Iran. That's completely false! And the Media spins these lies!

Remember Hillary and Obama trying to kick-off a Palestinian and Israeli negotiation? Obama and Hillary's proposal STARTED with the assumption that Israel will be giving up territory. Enticing Israel to discussions where the end-result was predetermined was an obvious FAIL!  Nothing happened of course.

And Liberals never understand the concept of peace through strength and have seriously degraded our military for 8 years now. This is one more reason why Liberals are unfit to govern. Not only are they unfit, they can only impose their policies by tricks and lies.

Hillary, Obama, Kerry and nearly all the rest are fools and dunces of the highest magnitude. That they occupy the highest offices in the land is astounding and dangerous. If Hillary fools the people and wins the Presidency, it will probably be the ultimate catastrophe for our country. America may never be able to recover.

Friday, August 26, 2016

Obamacare in a Death Spiral

As Republicans long ago predicted, Obamacare is doomed to fail and is in a full-scale death spiral now. From ZeroHedge this week:
UnitedHealth has announced plans to exit 31 of the 34 states where it currently offers ACA policies, Aetna is dropping 11 out of 15 states and Humana is reducing it's offerings to just 156 counties down from 1,351 a year ago. Meanwhile, insurers are also hiking premiums by 24%, on average, for the remaining states in 2017 Despite Obama's promise that Obamacare would increase options and lower costs, it is, in practice, doing the exact opposite as Cynthia Cox of the Kaiser Family Foundation points out that "as many as a quarter of all U.S. counties, mainly in rural areas, are at risk of having just a single insurer for next year."
These insurance companies are losing money in a big way as enrollment of healthy people declines leaving only the sickest persons in the pool of insured. Nearly all of the 23 co-ops set up to sell policies have failed or will fail this year. From Daily Caller:
Eight of the 11 remaining Obamacare health insurance co-ops are in serious financial trouble and could collapse by the end of the year, Mandy Cohen, a top federal health official told Congress Thursday in testimony before a House oversight panel.
More failure is certain as premiums for 2017 are set to sky-rocket by 24% nationally, leading to even further declines in enrollment by healthy people. Who could afford it?  Nobody can afford US healthcare costs now, even the US Government.

Healthy people are refusing to sign up, which leads to losses for insurers, which leads to higher rates, which, of course, leads to even fewer healthy people signing up.  This is a death spiral.

Now, there are one or no providers in many counties in many states. The remaining provider, if there is one, is in a "monopoly" position and are now asking for astronomic price increases which will surely lead to outright collapse. The entire law is on the way to collapse. Our entire nation is on the way to collapse.

Saturday, July 30, 2016

A Return to Selective Immigration Policies

I wrote recently that higher median intelligence is a good predictor of higher degrees of civil order and democracy, rule of law, higher levels of education, higher levels of economic activity, and more wealth and happiness. The converse is true. Lower intelligence populations have disorderly societies, crime, poor achieving economies, poverty, less democracy and unhappiness.

Remember, only Northern Europeans (and descendants) and East Asians (and descendants) have median IQs of 100 or more. ALL THE REST are mostly in the 80s, call it 85 for an average. It doesn't sound like much, but 15 IQ points or more is the difference between advanced civilization and collapse/chaos. Just look at the social and economic conditions of all the countries shaded red or yellow on the map below. It's because low IQ populations have very little logic, low levels of understanding, little comprehension of cause and effect of their behavior and low impulse control. Here's a map of the world showing estimated IQs per country. Click map for a huge image.

The yellow or red shaded countries in Central America and Caribbean have the lowest median IQs in that region and nearly the lowest in the world. They also have some of the highest murder rates in the world. The Middle East and Africa, with very low median IQs, are generally lands where tyranny, murder, war and poverty flourish. Sub-Saharan Africa have the lowest median IQs in the world and I don't have to tell you about the reality of life there.

In recent years, the Obama administration has been targeting mass, non-selective immigration from the poorest countries in Central America and the Middle East such as El Salvador, Honduras, Nicaragua and Syria where median IQs range from 79 to 81; on par with some of the lowest in the world. All these low-IQ countries have very high murder rates, high crime, high poverty, war and/or tyranny.  

This means Obama has literally been targeting mass, non-selective immigration from populations that are the WORSE OF THE WORSE in terms of cognitive ability. He has also admitted 100s of thousands of Middle East Muslims in recent years. The (vast) majority of these people have little to offer our country in terms of skills, much lower cognitive ability and a cultural heritage that is fundamentally incompatible with Western liberal Democracy. Look at Europe to see what I mean.

What Hillary/Obama Democrats want to do is turn America into a 3rd World hell hole so they can more easily manipulate these voters and remain in power to further damage this country and our heritage. Their ultimate intent is to allow illegal immigrants to vote. And if they can't accomplish that, they want to make all the illegals citizens so that they can vote Democratic to "reward" the party who offers free stuff and something for nothing.

A Return to Sensible Immigration Policies

The history of the US immigration is mass migration from the highest IQ countries in Europe: Ireland, Germany and England. This has been a huge success. We shouldn't ruin that success with non-selective mass immigration from poor, low IQ countries. It creates a clash of civilization that we are seeing in Europe with mass immigration of Muslims from the Middle East.

Instead, the US should prefer SELECTIVE immigration from countries that have the highest median IQs, ie., Europe or E. Asia. But SELECTIVE immigration from any country can work for us. Our country should generally approve immigration for those who have demonstrated job skills, academic credentials, English language skills or those who have distinguished themselves in business, academics, the Arts or even athletics. In other words, we need immigrants who have something to offer our country.  It is our right to do so. As Donald Trump says, we need an immigration policy that puts America first.

Thursday, July 21, 2016

Black Officer Exposes Black Lives Matter Hypocrisy

From Officer Jay Stalien posted on Facebook:   I have come to realize something that is still hard for me to understand to this day. The following may be a shock to some coming from an African American, but the mere fact that it may be shocking to some is prima facie evidence of the sad state of affairs that we are in as Humans.
I used to be so torn inside growing up. Here I am, a young African-American born and raised in Brooklyn, NY wanting to be a cop. I watched and lived through the crime that took place in the hood. My own black people killing others over nothing. Crack heads and heroin addicts lined the lobby of my building as I shuffled around them to make my way to our 1 bedroom apartment with 6 of us living inside. I used to be woken up in the middle of the night by the sound of gun fire, only to look outside and see that it was 2 African Americans shooting at each other.

It never sat right with me. I wanted to help my community and stop watching the blood of African Americans spilled on the street at the hands of a fellow black man. I became a cop because black lives in my community, along with ALL lives, mattered to me, and wanted to help stop the bloodshed.

As time went by in my law enforcement career, I quickly began to realize something. I remember the countless times I stood 2 inches from a young black man, around my age, laying on his back, gasping for air as blood filled his lungs. I remember them bleeding profusely with the unforgettable smell of deoxygenated dark red blood in the air, as it leaked from the bullet holes in his body on to the hot sidewalk on a summer day. I remember the countless family members who attacked me, spit on me, cursed me out, as I put up crime scene tape to cordon off the crime scene, yelling and screaming out of pain and anger at the sight of their loved ones taking their last breath. I never took it personally, I knew they were hurting. I remember the countless times I had to order new uniforms, because the ones I had on, were bloody from the blood of another black victim…of black on black crime.

I remember the countless times I got back in my patrol car, distraught after having watched another black male die in front me, having to start my preliminary report something like this: Suspect- Black/ Male, Victim-Black /Male. I remember the countless times I canvassed the area afterwards, and asked everyone “did you see who did it”, and the popular response from the very same family members was always, “Fuck the Police, I ain't no snitch, Im gonna take care of this myself". This happened every single time, every single homicide, black on black, and then my realization became clearer.

I woke up every morning, put my freshly pressed uniform on, shined my badge, functioned checked my weapon, kissed my wife and kid, and waited for my wife to say the same thing she always does before I leave, “Make sure you come back home to us”. I always replied, “I will”, but the truth was I was never sure if I would. I almost lost my life on this job, and every call, every stop, every moment that I had this uniform on, was another possibility for me to almost lose my life again. I was a target in the very community I swore to protect, the very community I wanted to help. As a matter of fact, they hated my very presence. They called me “Uncle Tom”, and “wanna be white boy”, and I couldn’t understand why. My own fellow black men and women attacking me, wishing for my death, wishing for the death of my family. I was so confused, so torn, I couldn’t understand why my own black people would turn against me, when every time they called …I was there. Every time someone died….I was there. Every time they were going through one of the worst moments in their lives…I was there. So why was I the enemy? I dove deep into that question…Why was I the enemy? Then my realization became clearer.

I spoke to members of the community and listened to some of the complaints as to why they hated cops. I then did research on the facts. I also presented facts to these members of the community, and listened to their complaints in response. This is what I learned:

Complaint: Police always targeting us, they always messing with the black man.

Fact: A city where the majority of citizens are black (Baltimore for example) …will ALWAYS have a higher rate of black people getting arrested, it will ALWAYS have a higher rate of blacks getting stopped, and will ALWAYS have a higher rate of blacks getting killed, and the reason why is because a city with those characteristics will ALWAYS have a higher rate of blacks committing crime. The statistics will follow the same trend for Asians if you go to China, for Hispanics if you go to Puerto Rico, for whites if you go to Russia, and the list goes on. It’s called Demographics

Complaint: More black people get arrested than white boys.

Fact: Black People commit a grossly disproportionate amount of crime. Data from the FBI shows that Nationwide, Blacks committed 5,173 homicides in 2014, whites committed 4,367. Chicago’s death toll is almost equal to that of both wars in Iraq and Afghanistan, combined. Chicago’s death toll from 2001–November, 26 2015 stands at 7,401. The combined total deaths during Operation Iraqi Freedom (2003-2015: 4,815) and Operation Enduring Freedom/Afghanistan (2001-2015: 3,506), total 8,321.

Complaint: Blacks are the only ones getting killed by police, or they are killed more.

Fact: As of July 2016, the breakdown of the number of US Citizens killed by Police this year is, 238 White people killed, 123 Black people killed, 79 Hispanics, 69 other/or unknown race.

Fact: Black people kill more other blacks than Police do, and there are only protest and outrage when a cop kills a black man. University of Toledo criminologist Dr. Richard R. Johnson examined the latest crime data from the FBI’s Supplementary Homicide Reports and Centers for Disease Control and found that an average of 4,472 black men were killed by other black men annually between Jan. 1, 2009, and Dec. 31, 2012. Professor Johnson’s research further concluded that 112 black men died from both justified and unjustified police-involved killings annually during this same period.

Complaint: Well we already doing a good job of killing ourselves, we don’t need the Police to do it. Besides they should know better.

The more I listened, the more I realized. The more I researched, the more I realized. I would ask questions, and would only get emotional responses & inferences based on no facts at all. The more killing I saw, the more tragedy, the more savagery, the more violence, the more loss of life of a black man at the hands of another black man….the more I realized.

I haven’t slept well in the past few nights. Heartbreak weighs me down, rage flows through my veins, and tears fills my eyes. I watched my fellow officers assassinated on live television, and the images of them laying on the ground are seared into my brain forever. I couldn’t help but wonder if it had been me, a black man, a black cop, on TV, assassinated, laying on the ground dead,..would my friends and family still think black lives mattered? Would my life have mattered? Would they make t-shirts in remembrance of me? Would they go on tv and protest violence? Would they even make a Facebook post, or share a post in reference to my death?

All of my realizations came to this conclusion. Black Lives do not matter to most black people. Only the lives that make the national news matter to them. Only the lives that are taken at the hands of cops or white people, matter. The other thousands of lives lost, the other black souls that I along with every cop, have seen taken at the hands of other blacks, do not matter.

"Black Lives Matter" Based on Lies

According to the CDC, there are nearly 2 times more whites shot and killed during a "Legal Intervention" than blacks. Whites are 5 times more numerous than blacks in the population, but blacks are committing violent crimes at 7 times the rate of whites. Therefore police are likely to kill whites at MORE THAN 2 times the rate of blacks when you take into account the shear number of police encounters in violent situations and demographics.

The CDC database counts all violent deaths, including those as a result of “legal intervention,” which is defined as “injuries inflicted by the police or other law-enforcing agents, including military on duty, in the course of arresting or attempting to arrest lawbreakers, suppressing disturbances, maintaining order, and other legal actions.”

According to the CDC and for fatal firearm shootings, from 1999 through 2014, there were 3,412 white (non-Hispanic) people shot and killed during legal interventions, 1855 black (non-Hispanic), 1297 Hispanics, 137 Asians and 121 native American Indians. The total fatalities by police during that period totals 6822.

Hands Up Don't Shoot Is Bullshit

Michael Brown attacked Darren Wilson in his patrol car by hitting him then tried to gain control of the officer's gun. Once he relented, Wilson exited his car and ordered Brown to stop. The grand jury said that Michael Brown might have had his hands up but the forensic evidence supports the officer's claim that Michael was in fact "charging" at Officer Wilson at that moment.  

So, there you have it. 
  • Cops shoot blacks LESS OFTEN than white people during a legal intervention based on a large data set by the CDC. 
  • Michael Brown was a thug and he attacked an armed police officer TWICE in one encounter. Brown was in a murderous rage and was shot fair and square by an officer protecting himself. 
Black lives DON'T matter to black people, as blacks commit the majority of violent murders in this country, and 90% of those murders are against other blacks. Black lives only matter when the national press is involved.

Monday, July 18, 2016

What HAVEN'T Black People Ruined?

All of the violence coming out of the black community reminds me of the fact that the blacks ruin everything everywhere and all the time. Think of the wreckage of black lives in Ferguson and Baltimore due to emotional, fact-free violence which is just the latest of wreckage from the idiocy that is "black America." Sorry, but the black community in the US is a wreck of drugs, violence, gangs, prostitution, murder, stupidity & ignorance, illogic, immaturity, poverty, incarcerated men, fatherless children, STDs and HIV. Most other black majority areas in the world have the same situation with very few exceptions (none?).

All of the most dangerous cities in the US are the ones with large black populations. Black men, at 6% of the population commit 56% of gun murders and 59% of felony murders. Some 11% of black men are in jail right now. The published black high school graduation rate of 54% is exaggerated because no statistician is accounting for the large numbers of young black men/boys in jail. And 37% of those kids who drop-out are in jail.  $21 trillion has been spent on income support and benefits mainly for blacks since Johnson's Great Society, but poverty has increased! It's because these programs have ruined black families and single parent households are much poorer than households with two parents. Despite all that money, one can easily make an argument that the Great Society has ushered-in a black cultural collapse.

The black "community" is a miasma of crime yet they disrespect and hate the police. The black community is most in need of police protection but is the most hostile to and uncooperative with police. They don't respect any authority figure -- black or white. And don't put a black person on a jury! They have little logic and believe really stupid things about police. Black jurors often don't want to convict black criminals.

Every housing project built to "help" the black community has been immediately wrecked and ruined. Most of them are now condemned or torn down. All of the well-meaning white men's tax dollars have been flushed down the toilet. What's left of inner cities are disasters and basically uninhabitable except for the most desperate or impoverished. And we're still spending $1 Trillion per year on programs primarily directed at these people. It's not working.  

Black people and especially black men remain a huge burden to this country.

And it's not just the US.

Brazil, with a majority black and black/mix ethnicity, has a murder rate some 6 times the rate of that in the US. Brazil had 50,000 murders in one recent year (compared to about 15,000 in the US, but Brazil has only 200 million people).  The Brazil murder total is approximately the entire US death toll from the 10 year long Viet Nam war. Why? Because black people caused it! Crime is also sky-high in most Latino and all black nations.

Conditions in Africa range from very poor to catastrophically bad. Poverty, dysfunction, tyranny, crime, murder, occasional genocides are very common in Africa. The same can be said of places like Haiti and Jamaica. There is little advanced civilization in evidence in most parts of Africa, Caribbean or US black populations. That isn't to say that they are bad people. But they have populations with the lowest cognitive ability (IQ) in the world. Some parts of Africa have median IQs estimated in the 60s, 70s and low 80s.

Low Median Intelligence Causes Disorderly, Impoverished and Miserable Populations

Only Northern Europeans and East Asian populations (and their descendants) have median IQs of 100 or more. All the rest of the world is lower -- averaging in the 80s -- including blacks and Hispanics.  High median IQs easily explains the success of the US, Canada, Australia and Northern Europe. White English-speakers invented political and economic freedom and have created the most successful, prosperous and orderly societies the world has ever seen.  East Asians (and descendants) have created great cultures as well.

But black populations here and in Africa have the lowest median IQs in the entire world. And not surprisingly, black communities are a disaster of crime, ignorance, disorder, dysfunction, poverty and misery. Conditions in most parts of Africa range from dreadful to "medieval" and even "prehistoric." Most African "cultures" here and there are in total cultural collapse. In the US, there is little logic, little intelligence, little impulse control in this low intelligence population. The average black adult has a much lower intellectual (and emotional) maturity corresponding to their lower median IQ of 85. It's very obvious, but you are forbidden to say publicly any of this.

Black make up 13% of the US population and represent a huge burden to the country. Not just this country, but to anyplace where they are a significant minority or majority.

White majorities will disappear in 40 years in the US and the US will see lower per-capita GDP, higher crime and a predominance of populist politicians that will bring the end to the greatest country on earth. It's happening very rapidly under Obama, our token black president. Him and every other black leader in the US would lead their country to 3rd world status. 

The good news for quite a few US blacks that are responsible and reasonable (about 1/2 of them?) is that they can escape majority black communities and live among much more peaceful white and/or Hispanic communities. But the trainwreck of the black culture is not far away and can still strike out and ruin things even for those folks and everyone else. That's why if a few blacks move into your neighborhood, it's almost certain that crime will go up ---not from your neighbors -- but from their unsavory "friends"and associates. The black trainwreck affects even the good black folks.  The bottom 25% of a population can ruin an entire population and that's what we're seeing.

Friday, July 8, 2016

America's March to 3rd World Status, Then Collapse

The US is now rapidly following places like Argentina and Venezuela in it's descent into 3rd world status.  I gave warning that the US was becoming Venezuela in March 2013 in US Becoming Venezuela; Obama is Chavez-lite. What I wrote remains even more valid now.

Just this week, Hillary received a "pardon" from her crony buddies that clearly exposed the cozy cult of elites who are immune from the law, prosecution and accountability. The absence of accountability is particularly important for our current elites given that everything they have done in the past 7 years or more has been a complete and utter failure. Not one success. It's been all failures and flops and then all lies to cover them up.  All lies, all the time.

Hillary's entire intent of her off-the-record and insecure personal email "arrangement" was all about avoiding any record of her hustling for political contributions to her slush fund. She's sold access to anyone with money, including foreign enemies, all for her personal enrichment to the tune of $100 million or more. It's all about "pay to play." She completely failed as Secretary of State because her only intent was to use her office for her financial gain. She doesn't give a shit about anyone but her. She's a total disaster for this country. And we're told that she is the most qualified candidate ever by the most incompetent President ever.

The lesson is that law and order is now bought and paid-for if you are one of the "connected" or "privileged ones." Never mind that General Petraeus was prosecuted vigorously for his pillow talk and supposedly endangering national security. (I guess he was Republican?)  The little guy goes to jail for a marijuana roach in his pocket, but thieving, lying Hillary, who has enriched herself immensely by using her office for her own benefit, is allowed to break the law and endanger the security of the country, and faces no consequences or accountability. Hillary is the equivalent to Christina de Kirchner, who was allowed to do huge damage to Argentina while enriching herself immensely.  Law and order under Obama is largely gone (except for repeated slap-downs by the Supreme Court) and is replaced by propaganda, crony connections and manipulations for the "elite" and "connected." Obama is Chavez-lite and Hillary is De Kirchner.

The key thing about the march to 3rd world, is when politicians will say or do anything to stay in power and don't give a shit about the good of their country. This is made worse when the media is in bed with these very people and act as their propaganda apparatus to "cover up" the truth. Obama has never given a damn about the good of the country. His election wasn't about the good of the country, only to "tick off boxes"to promote the Left's socialist agenda. We had to have a "black president"! Tick! Never mind that the candidate was utterly unqualified and un-vetted to the point of absurdity. Now we are told that we have to tick the box "Woman President" despite Hillary's self-serving behavior and a record of perfect failure. Both of these people have failed at EVERYTHING; both foreign and domestic. The entire Left is unfit to govern at all.

This past week was very instructive in many ways. Just think about what happened. Attorney General Lynch had a hush-hush meeting with Bill Clinton in private, shooing away reporters and blacking out any coverage, probably with death threats.  So, here's the nation's top lawyer violating all the rules of litigation, good sense and the intent of the law and meets with the party being investigated to arrange a cozy little deal.  I heard that Secret Service agents were livid. Only a local reporter brought this meeting to light.

A few days later, FBI director Comey lists all of her outrageous violations but concludes that it wasn't a good case for a prosecutor. Because Lynch's position was totally compromised by her outrageous and truly stupid behavior, Comey was given the "right" to decide whether to prosecute or not -- which isn't his job! It's Lynch's!

During Comey's testimony to Congress, privileged Hillary was on Air Force One, enjoying all the wonderful spoils paid for by hard-working Americans, on her way to a campaign event where Obama proclaimed that Hillary was the most qualified and deserving candidate ever; maybe better than George Washington.  Oh how far we've fallen. Our country's leaders once were the most spiritually and intellectually enlightened people on earth. Now we have hucksters, grifters and parasites.

But that's not all.

Then, Obama once again starting flapping his lips about yet another white police officer's encounter with a black suspect that ended in a shooting of the black guy.  Naturally Obama sides with the black guy and spouts off about police violence without knowing anything about the case.  Does he EVER know the specifics before making a fool of himself??  (and again the "media" protects him.)   This inflamed an already inflamed situation and shooting sprees broke out in Dallas, with irate blacks killing 5 innocent WHITE police officers. Similar things happened in other cities.

Obama had already started a war on police with irresponsible statements in previous cases. That resulted in police pulling back and allowed huge surges of black (on black) violence increasing dramatically in Ferguson, Baltimore and other places. Because of Obama's irresponsibility and stupidity, many blacks have died. Obama has now started a race war and this has caused both black and white people to die.   Worse. President. Ever.

The Race Toward 3rd World Status

The key takeaway is that we've reached a point where the politicians care not one bit about the good of the country and are only focused on their own benefits and agenda of personal gain. This is what happens in dramatically collapsed countries like Venezuela and Argentina.

Obama and Hillary and most others have done nothing to fix any problem in this country, and have only created more of them.  It's especially sad when nearly everything the Federal government is doing is broken and unfixed. We're headed headlong into another financial crisis in the next few months as nothing was really fixed in 2009, especially in Europe (even worse than the US). Our nation's finances are in worse shape than ever. Obama has doubled our national debt to $19 Trillion with nothing to show for it.  All that money was pissed away.  Central bank emergency measures remain in place 8 years after the last emergency. Obama's government crows like an idiot how the economy is so good and how he saved the world. The truth is we're well and truly near the end of a very long charade.

Zero interest rates are destroying Capitalism itself and any hope for the future. Insane academicians at central bankers all around the world are running rampant destroying savers, pensioners, pension funds, insurance companies and capitalism itself. And it appears that they created a new mandate to support the stock and bond market to protect elites!!  Bumbling Obama destroyed our health insurance marketplace and caused an extremely damaging price spiral. College tuition is being inflated at 3 times the rate of inflation by government loans/guarantees. Never mind that the next generation is completely screwed. Nothing is fixed. Already 14% of graduates are officially in default on their debts with little hope and even less money. Some 43% of debtors are not repaying their loans (see the next blog entry). No, the job market isn't good. It's crap!  The big banks are now basically nationalized and are illegal sources of funds for the government.  Nothing is done. The robbery and damage continues. Politicians love the Central Bankers because they are "covering up" for the failure of politicians to do or fix anything. And I'll bet big bucks that Janet Yellen is a proud Democrat.

In the next crisis, these insane and destructive central bankers will start wholesale money printing to buy (monetize) government debt as the economy fails and tax revenues collapse. The final collapse will be an inflationary collapse like we're seeing in Venezuela!!  The Federal Reserve should have already been reformed or eliminated by now to prevent this. But again, nothing is done.  Oh, how far we've fallen.

Obama and the Left have started a class war, a war on business, a war on police and a race war. They want to promote dissent & conflict to justify "emergency" measures then "emergency powers." We're already very close to financial and social collapse. Sounds like Chavez and Maduro to me.  You watch.

Other observations and evidence of our descent into 3rd world status:
  • Law and order no longer exists in this country whether you're talking about immigration law abuse, or even the normal function of our Constitutional government. I'm referring to Obama's refusal to work with Congress, the people's elected representatives, is totally unconstitutional!  And our President is pledged to uphold the Constitution!  He's taken an oath to swear this!
  • We've learned that you're now protected if you're one of the connected "elites" as easily demonstrated by Hillary's abuse of office and abuse of our national security.  The media is complicit in a cover-up of this situation. Sounds like the Politburo in the old USSR. Because it is!
  • The Left is control of the media outlets to the extent that it is clearly propagandistic. Truth is hidden. Real journalism is dead. It's sad because Democracy depends on a robust and independent media. Instead, we're well on the road to tyranny.
  • Leftists control college curricula and are indoctrinating our impressionable young people into Leftist principles. It's paid off as large numbers of millenials support Socialism and Bernie Sanders. It shows how ignorant our graduates are.  They have never been taught how Socialism destroys societies.  Journalism schools are apparently teaching nothing but Leftism judging by the bias of our media outlets.
  • Skyrocketing debt is direct threat to our republic. It's even worse then it looks due to the ongoing entitlement demographic crisis
  • Meanwhile, the population is being kept distracted by iPhones and they are being subsequently manipulated by Google and Facebook--always toward The Left of course.
  • Ever bigger and wasteful & counterproductive govt. is the rule, despite the fact that everything related to government function is failing and/or wasteful and/or counterproductive.
  • The prosperous are falsely attacked of 'not paying their fair share" but it's a total lie. The top 40% is paying nearly ALL taxes.  But prosperous people must be vilified to "extract" and "confiscate" more of their money. Think Chavez once again. The failing government needs more and more money--other people's money.  All to redistribute to the most unworthy people to buy votes.
  • Moves to disarm the population leaving only the elites with gun protection. Think Venezuela right now!
  • Vilifying prosperous people even though wealthy people make the right choices, do the right things. All to extract or confiscate money to redistribute to unworthy people who do the wrong things, make all the wrong choices. It's really about buying votes.
  • Open borders is a long term ploy to indiscriminately allow large numbers of the most unsophisticated and poorly-educated immigrants from the poorest, most violent countries in Central America and make them "grateful" for the Leftist party and vote that way.  It's all about buying votes. It's an outrageous scam and it's being covered-up by MSM.
  • The Left not only destroys societies but destroys private markets like the government takeover of the US health insurance market (Obamacare). Refusing to change it even though it has only helped 2% while the remaining 98% suffer. Media covers-up the disaster.
  • Income inequality is rising, poverty at new highs despite our supposed "recovery"and all the handouts.  
  • Politicians and the government are bought and paid-for by various interests.  There's a unholy alliance between Big government and Big Business. This results in favored cartels including the Military-Industrial complex,  the healthcare insurers, drug companies and the "saved" big banks. It's all about money. The good of the country is not a primary concern.
Crisis is coming to our country and world and it's being brought to you by failed politicians and horrible central bankers. It's "baked-in." Crises have already enveloped many countries in Latin America, Africa, and the Middle East. Crisis always starts at the periphery and works toward the core. Next will be Europe and Russia. The Brexit vote is signaling EU political and financial collapse there in the months ahead. China is drowning in bad debts--- debts taken out to literally "save the world" in 2009 until 2014. Massive devaluations in China will reverberate around the world. Banking crises in Europe will bring back financial crisis conditions soon to the entire world. I don't see a way out as everything is so broken.

This may very well happen before the November election. It's entirely probable that a full-fledged crisis is so scary that only Mr. Trump is seen as strong enough to face it.

Thursday, June 16, 2016

The Student Loan Racket In Action

The Atlanta Journal Constitution recently reported that 43% of student loans are not being repaid. But, despite this, the Federal Government keeps making (or guaranteeing) more and more of them. Total student loans outstanding has quadrupled in a decade to over $1.2 Trillion.  And our wonderful and wise government is making even more of them at very low interest rates!  College loans are one of the few and largest "assets" of the US government. But default's are rising fast. What's going on here?

Congress knows there is huge problem and refusing to do anything about it. Their plan is to eventually bail-out these "students" and put $100s of billions of debt onto the taxpayers shoulders!  They don't care!  Trump is right, the system is rotten and people in Government are very, very stupid.

Student loans surged especially after 2009.  The government is providing these loans as a welfare program to placate young people where there are few jobs or other opportunities available for them. (There are few jobs for them because of the destruction caused by the Government!!)

It's a huge racket for schools in general and for-profit schools in particular. All of the Federal money flooding their way is enabling even more lobbying efforts to keep the money coming!  But "students" are racking up debt that much will never be repaid -- witness that 43% are not being paid now and outright defaults are north of 13%..

College Tuition Money Soaring Thanks to Federal Government
The result has been that government and government-backed money are inflating college tuition (just like government spending is inflating medical and housing costs). College is now un-affordable for this and the next generation without huge expenditures or huge debt.

College Tuition Inflation Caused By US Government Is Astonishing
Now, 43% of Loans Are Not Being Paid back...and probably never will.

Observing The College Tuition Racket First Hand

I live on an urban block with Condos and apartments about a 1/2 mile away from an Art Institute school.  Art Institute rents nearby apartments and re-leases them to their students so that they can walk to school.  I often see the students walk to and from school.  The vast majority of them are black and many are obviously gay.

Here's what is going on. These kids are getting students loans either from the Federal Government (most likely) or from other institutions whose loans are "guaranteed" by the Feds.

The problem is that very few of these kids will get jobs even if they finish. If they get jobs, it's unlikely that they will earn enough to live AND pay back their loans. Many won't finish at all. Bottom line: most of these loans won't be paid back. Stats support this.

With all the defaults coming in this loan category, you can be confident that taxpayers will be on the hook when Congress bails out these students at taxpayer's expense. But Congress is CAUSING this problem and the plan all along is to put the burden on US taxpayers.   

The interesting thing is that black students of primarily black schools are leading the list of schools where students are failing to ever repay even a single $1 of their loans.

Black Colleges Lead The List of Institutions where Not Even $1 of Loans Are Repaid
Black Colleges Are Where Most Loans Are Not Being Repaid

Tuesday, May 17, 2016

Socialism is the Immoral System--Not Capitalism

From C. Bradley Thomson from his 1993 article via Zero Hedge. My comments in brackets:

"Throughout history there have been two basic forms of social organization: collectivism and individualism. In the twentieth-century collectivism has taken many forms: socialism, fascism, Nazism, welfare-statism and communism are its more notable variations. The only social system commensurate with individualism is laissez-faire capitalism.

The extraordinary level of material prosperity achieved by the capitalist system over the course of the last two-hundred years is a matter of historical record. But very few people are willing to defend capitalism as morally uplifting.

It is fashionable among college professors, journalists, and politicians these days to sneer at the free-enterprise system. They tell us that capitalism is base, callous, exploitative, dehumanizing, alienating, and ultimately enslaving.

The intellectuals’ mantra runs something like this: In theory socialism is the morally superior social system despite its dismal record of failure in the real world. Capitalism, by contrast, is a morally bankrupt system despite the extraordinary prosperity it has created. In other words, capitalism at best, can only be defended on pragmatic grounds. We tolerate it because it works.

Under socialism a ruling class of intellectuals, bureaucrats and social planners decide what people want or what is good for society and then use the coercive power of the State to regulate, tax, and redistribute the wealth of those who work for a living. In other words, socialism is a form of legalized theft.

The morality of socialism can be summed-up in two words: envy and self-sacrifice. Envy is the desire to not only possess another’s wealth but also the desire to see another’s wealth lowered to the level of one’s own. Socialism’s teaching on self-sacrifice was nicely summarized by two of its greatest defenders, Hermann Goering and Benito Mussolini. The highest principle of Nazism (National Socialism), said Goering, is: “Common good comes before private good.” Fascism, said Mussolini, is “a life in which the individual, through the sacrifice of his own private interests… realizes that completely spiritual existence in which his value as a man lies.”

Socialism is the social system which institutionalizes envy and self-sacrifice: It is the social system which uses compulsion [Government is force] and the organized violence of the State to expropriate wealth from the producer class for its redistribution to the parasitical class.

Despite the intellectuals’ psychotic hatred of capitalism, it is the only moral and just social system.

Capitalism is the only moral system because it requires human beings to deal with one another as traders — that is, as free moral agents trading and selling goods and services on the basis of mutual consent.

Capitalism is the only just system because the sole criterion that determines the value of a thing exchanged is the free, voluntary, universal judgment of the consumer. Coercion and fraud are anathema to the free-market system.

It is both moral and just because the degree to which man rises or falls in society is determined by the degree to which he uses his mind [explains why US was great bastion of Capitalism as US was settled with mostly higher IQ European immigrants than most of the world.]

Capitalism is the only social system that rewards merit, ability and achievement, regardless of one’s birth or station in life. [This is why lower IQ populations can't cope with Capitalism and fall to the siren call of Socialist/Populist politicians and ultimate disaster; like countries in Africa, S. America, Middle East, etc, etc. Lower IQ populations are basically any population other than N Europeans/E Asians and their descendants]

Yes, there are winners and losers in capitalism. The winners are those who are honest, industrious, thoughtful, prudent, frugal, responsible, disciplined, and efficient. The losers are those who are shiftless, lazy, imprudent, extravagant, negligent, impractical, and inefficient [like many minorities].

Capitalism is the only social system that rewards virtue and punishes vice. This applies to both the business executive and the carpenter, the lawyer and the factory worker.

But how does the entrepreneurial mind work? Have you ever wondered about the mental processes of the men and women who invented penicillin, the internal combustion engine, the airplane, the radio, the electric light, canned food, air conditioning, washing machines, dishwashers, computers, etc.?

What are the characteristics of the entrepreneur? The entrepreneur is that man or woman with unlimited drive, initiative, insight, energy, daring creativity, optimism and ingenuity. The entrepreneur is the man who sees in every field a potential garden, in every seed an apple. Wealth starts with ideas in people’s heads.

The entrepreneur is therefore above all else a man of the mind. The entrepreneur is the man who is constantly thinking of new ways to improve the material or spiritual lives of the greatest number of people.

And what are the social and political conditions which encourage or inhibit the entrepreneurial mind? The free-enterprise system is not possible without the sanctity of private property, the freedom of contract, free trade and the rule of law.

But the one thing that the entrepreneur values over all others is freedom — the freedom to experiment, invent and produce. The one thing that the entrepreneur dreads is government intervention. Government taxation and regulation are the means by which social planners punish and restrict the man or woman of ideas.

Welfare, regulations, taxes, tariffs, minimum-wage laws are all immoral because they use the coercive power of the state to organize human choice and action; they’re immoral because they inhibit or deny the freedom to choose how we live our lives; they’re immoral because they deny our right to live as autonomous moral agents; and they’re immoral because they deny our essential humanity. If you think this is hyperbole, stop paying your taxes for a year or two and see what happens.

The requirements for success in a free society demand that ordinary citizens order their lives in accordance with certain virtues — namely, rationality, independence, industriousness, prudence, frugality, etc. In a free capitalist society individuals must choose for themselves how they will order their lives and the values they will pursue. Under socialism, most of life’s decisions are made for you.

Both socialism and capitalism have incentive programs. Under socialism there are built-in incentives to shirk responsibility. There is no reason to work harder than anyone else because the rewards are shared and therefore minimal to the hard-working individual; indeed, the incentive is to work less than others because the immediate loss is shared and therefore minimal to the slacker.

Under capitalism, the incentive is to work harder because each producer will receive the total value of his production — the rewards are not shared. Simply put: socialism rewards sloth and penalizes hard work while capitalism rewards hard work and penalizes sloth.

According to socialist doctrine, there is a limited amount of wealth in the world that must be divided equally between all citizens. One person’s gain under such a system is another’s loss.

According to the capitalist teaching, wealth has an unlimited growth potential and the fruits of one’s labor should be retained in whole by the producer. But unlike socialism, one person’s gain is everybody’s gain in the capitalist system. Wealth is distributed unequally but the ship of wealth rises for everyone.

Sadly, America is no longer a capitalist nation. We live under what is more properly called a mixed economy — that is, an economic system that permits private property, but only at the discretion of government planners. A little bit of capitalism and a little bit of socialism.

When government redistributes wealth through taxation, when it attempts to control and regulate business production and trade, who are the winners and losers? Under this kind of economy the winners and losers are reversed: the winners are those who scream the loudest for a handout and the losers are those quiet citizens who work hard and pay their taxes.

As a consequence of our sixty-year experiment with a mixed economy and the welfare state, America has created two new classes of citizens. The first is a debased class of dependents whose means of survival is contingent upon the forced expropriation of wealth from working citizens by a professional class of government social planners. The forgotten man and woman in all of this is the quiet, hardworking, law-abiding, taxpaying citizen who minds his or her own business but is forced to work for the government and their serfs.

The return of capitalism will not happen until there is a moral revolution in this country. We must rediscover and then teach our young the virtues associated with being free and independent citizens. Then and only then, will there be social justice in America."