January 29, 2010

Contrary to the popular claim the inflation in the USA is dead - unfortunately irrelevant as the interest rates will go up forced by the highly profitable dollar "carry trade" played currently by our old Wall Street friends: the Goldman's, the Morgans & al...

All the inflation we see in the USA is imported and we can do nothing to remedy that.

As long as our unemployment is next to nothing (currently the opposite) and the labor cost the foreign countries pay are between 1/10...1/100 compared to what we pay we can not have domestically generated inflation - assuming that capitalism and free trade are working.

Our financial empires just picked US$ 3.9 Trillion from the FED and Treasury and that money is now moving to a new position - not as loans to the businesses and people as intended but as "carry trade" to foreign currencies.

If our government does not care what happens to the middle-class and the workers we have a very high inflation "risk" according to these banking empires. If our government believes them more than the facts on ground we of course must increase the interest rates to stop the dollar from going out and strengthening the other currencies by buying foreign currencies and foreign currency denominated bonds. How sweet if the global financial empires would get the whole world doing just this! They would then sell their positions at peak of the stampede and then just sit and wait. The dollar has only one way to go when this bullet sinks in.

The US carry trade is already at level of US$ 1.5 Trillion, so we have still US$ 2.7 Trillion to go. With this we know that the trade continues and dollars is buying foreign currency denominated assets. To prevent the dollar from sinking in this environment we must have higher interest rates in this environment we must get at last strong prospect that the interest rates are going up and up.. What does this mean?

The recent story from Japan tells what is happening with the famous "yen carry trade" that worked well until early 2007 like this: a trader borrows 1,000 Japanese yen from a Japanese bank at zero or close to zero interest rate, converts all to U.S. dollars and buys dollar nominated bonds of equivalent amount. Let's assume that the bonds pay 4.5% and the Japanese interest rate is set at 0%. The trader stands to make a profit of 4.5% as long as the exchange rate between the countries does not change. The gains can become 45% If the trader had used a common leverage factor of 10:1 (minus the cost of the leverage).

The risk in a carry trade is the uncertainty of exchange rates. If the dollar falls in value relative to the Japanese yen the trader would run the risk of losing money. The leverage would increase the risk without hedging against the fall of dollar's relative value. This happened later in 2007 as the yen started strengthening and without the protection the trader would have started losing money. This was the exactly the time when all the news media started telling us how good the yen-dollar carry trade was. Why this? The traders needed to get out from the now loss making positions and needed plenty of suckers!

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January 28, 2010

The Economic Cycles are Man Made and not a Law of the Nature...

What is an economic cycle? In the book, "The Price of Loyalty", the former Secretary of the Treasury portrays economics to differ very little from theology. This hit the bulls eye! We have been taken to a ride that has no end. Our alternatives are either a war that destroys our property or well hidden scams like we have today where the banks get the money and we down on the streets get the chicken feed if even that and discover that our pensions have disappeared.

We must ask from the economists: Where can we observe their economic cycle law in the nature? If it is an universal law surely it must be observable but why has nobody reported of it? Of course not as the economic cycles are nothing but man made contrary to the hogwash we hear from every newscaster on the planet. Why did the USA miss the economic cycle while Clinton was president? Was it because he was poorly informed at the time?

Anybody with a little math skills can create an economic cycle by using simple math and any repeated investment that requires a bank loan carrying interest. Playing with these few variables we can generate any type of economic cycles we want. The key is the interest carrying loan that must be paid back! The higher the interest the the worse cycles can be generated.

If our CEO's are not familiar with this concept they are idiots but as we now they are as far from idiots than anybody can go. When we still get these economic cycles something else must be controlling the economy. Here is the secret: since 1913 it has been the banking empires behind the FED. And below is how they do it.

FED was given independent powers to determine the interest rate environment in the USA. When the US economy has been and still is the largest economy in the world the deliberate economic cycles here create of course cycles in the rest of the world and secondary cycles even in those economies that have nothing to do with the US economy.

Is there anybody else than the global banking empires and their cohorts that could benefit? The answer is no. It all worked like a clock. Higher interest rates in the USA create misery in the USA and slows consumption of everything and vice versa. Here is a funny observation: the rural population in Brazil resisted for the longest time to take any loans from any banks - that was smart!

The mantra that FED uses used is the word "inflation". Note, that the same banking empires were behind forcing the Germany to sign a peace treaty in Versailles that the victors knew the Germany could not live with. They knew it according to the records but went for it anyhow. There could be no better example than that to show the World what the inflation can do as this went far beyond the little inconveniences and financial losses. After a few years with that Germany took the only solution out and we got WW II.

If one does not believe the German case one can ask those living in Zimbabwe.

Inflation is feared now by the masses everywhere and using this mantra get them all lemmings running off any cliff they are pointed to go. This is exactly the outcome like has been in the aftermath of the current financial crisis. The financial and banking empires got the meat while the people on the streets got only the skinny bone.

Let's look at the inflation a little closer in the G8 group as a whole. These are the free traders who have managed to get almost everything they need manufactured elsewhere in low cost countries. The leader of the pack the FED of the USA declares periodically that domestic inflation is going to raise and raises interest rates to prevent the imminent "overheating" of the US economy that would mean much higher wages and salaries, means inflation. What inflation 65% of the US economy are wages and salaries that are 5 to 100 times higher that those earned by the workers in the low cost countries. Remember, most everything is imported from those low cost countries. There is not a single industry in the USA that can compete in this environment and those who still operate there have no shortage of skilled labor. Additionally many of the States have laws in their books that allow the employers to hire and fire at will as they please.

How an earth can inflation ever be a problem in the USA as long as the wage difference to low cost countries remain so huge? The FED still claims periodically that the inflation in the USA to be a problem! It may be a problem elsewhere but not in the USA. It may impact the import prices but there is nothing we can do there. It's a crime against the US population to put them to suffer to reduce import prices from elsewhere in the world. We could as well manufacture these items here and without no inflation at all during the next 100 years at least.

The banking empires are just playing games to prevent the middle-class inside the G8, perhaps now already G20 to gaining any wealth. Keeping the middle-class struggling guarantees the power to remain in the hands of the financial Nobility or whatever we want to call these shady characters. With this our republics and democracies are nothing but illusions and mirages that we take as faith.

This happened in the recent past:

The Bank of Canada became publicly-owned in 1938 under Prime Minister William Lyon Mackenzie King, here is what he said:

“Until the control of the issue of currency and credit is restored to government and recognized as its most conspicuous and sacred responsibility, all talk of the sovereignty of Parliament and of democracy is idle and futile. Once a nation parts with the control of its currency and credit, it matters not who makes that nation's laws. Usury, once in control, will wreck any nation.”

He was not alone. In 1946 Winston Churchill nationalized the Bank of England, the center of the financial universe a few decades earlier at the beginning of the 20th century.

Unfortunately this was too late. The European banking empires had already succeeded in creating the Federal Reserve Bank of the USA or FED (1913). FED outsmarted almost all of the Gold from the world and from the Bank of England when these two banks battled against each others using "Gold Standard" as their weapon (i.e. their currencies were exchangeable to a fixed amount of gold). FED did not care that with this they put the USA into the Great Depression, it actually worked for them too. They the FED had a "higher calling" as it was aiming towards the absolute financial supremacy in the world and they got it!

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January 27, 2010

Gaithner-Bernanke family stimulus: for the top 1% US$ 2.3 million - for the rest 99%, US$ 2,160

To have any intelligent discussion regarding employment and stimulus money we have to understand numbers and what they mean in a steady state economy:

  1. From the 310 million people in the USA about 150 million are in the labor force (Bureau of Labor Statistics).
  2. Our GDP is US$ 13,500 Billion
  3. The average working person adds therefore US$ 90,000 to the GDP.
  4. Turning it around each US$ 100 Billion injected to economy will generate 1,1 million new jobs and maintain them for one year.

The total stimulus is so far US$ 4.7 Trillion and growing...

The total stimulus so far is US$ 4.7 Trillion. This amounts to US$ 15,000 per each living person in the USA. A family of four could have received full US$ 60,000. This money in our economy will employ 52 million people for one year or five million people for 10 years depending on pace our 310 million citizens would their imaginary US$ 60,000 per a four person family.

Whatever they do would end up doing; pay down debt, down payment for a house, a new energy efficient car, a trip to Yellowstone or Hawaii, remodeling of their kitchen, new clothing, and a myriad of other things -would end up as income of someone else in the economy. Unfortunately, FED and our Treasury saw better to bail out the gamblers on the Wall Street in form of their cohorts AIG, Goldman Sachs, both Morgans, Citi, & aliases and even Société Générale, a French banking giant.

These gambler received US$ 3.9 Trillion according to FED and the Secretary of Treasury. With our estimate they represent about 1% of the US citizens.

What was left for the others, the main street down here, was US$ 862 Billion. This was the actual stimulus for the 99% of the population. About US$162 billion of it was a tax relief for individuals averaging to about US$ 1,080 per working person or about US$ 2,160 per a family of four. The rest went to extended unemployment benefits and some infrastructure improvements (roads, bridges, high speed rail, etc.), and small businesses. With that the decision of congress was to give a family of four US$ 2,160 as stimulus money.

The difference between US$ 60,000 and US$ 2,160 per family of four makes a huge impact to actual real stimulus spending.

Wall street has convinced the congress that the wealthy need their stimulus money to be able to build new factories that can employ us dawn here on the street. Looking as a wealthy business owner the same picture I see no need to invest anything to any factory as there is no demand for any kind of new products. The people on the main street have just been hit by higher credit card rates or they are out of work. There is no change in hell that they have any money to buy anything. So, I the wealthy one will have to wait and figure out what new things these people on the street are willing to buy one day in the distant future when they finally get out of their misery.

Manufacturing anything when people have no money to buy is stupid and those with money know this apparently better than our Representatives in Washington.

The wealthy ones can wait as they got money at rate that mounts to US$ 12,600 per 150 million people. To put this to real context we have to compare the numbers on relative basis. The US$ 862 is divided between the 99% of the people (means 150 million workers on the streets) while the US$ 3.7 Trillion is divided by only 1.5 million wealthy individuals already on the top of the US wealth pyramid. That makes a cool US$ 2.3 million for each of them. We know that they can not consume this windfall profit by eating nor anything else normal. We also doubt that they would build any factories as the 99% of the people have no money to buy anything new.

Nobody gets hired for a while as the new factories are the ones that will hire one day but nobody is building them as nobody knows what new products will sell. We do not get out from the recession because the wealthy would build anything. We get out of them because of the new entrepreneurs. These are the guys and gals who most likely are not in the group that got the stimulus money. Did Steve Jobs start from a large factory? Was bill Gates a millionaire? The are a myriad of others that have done exactly the same like they. Microsoft employs now 90,000 people around the globe while Apple employs "only" 18,500.

Which one of the so called old industrialists (Fords, Gettys, Rockefellers,etc.,) or short the Wall Street has shown recently a similar growth story on local or global level? The claims of the Wall Street that they are the ones than make our republic tick is lunacy and our almost without an exception our representatives in Congress have proven that they do not deserve to be there!

So what would we have done with the US$ 60,000 per family of four? Some would for sure have taken a joy ride, nothing wrong in that either as someone else would have received their money. Many of us would have paid off their loans for a disappointment to the bankers. Their loan portfolios would have been slimmed but at the same time their own borrowing would have decreased making them actually healthy. For us down in the gutters that would have been a shot in the arm. We would have the money to buy what we have always wanted and with that there would be no recession any more. But that is what we have the recession is going to linger here for years to come.

The next one is the commercial real estate that is soon coming down like a house of cards wit dire consequences for still many who think that they have made it through!

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January 26, 2010

To avoid the fast approaching FASCISM the USA must replace her military, energy, banking and health care policies and create a multiparty system with democratic rules...

MILITARY POLICY:

According to global statistics the world uses about US$ 1.2 Trillion (2008)in military activities. The USA has a lion share of this with planned military expenditures reaching US$ 708 during the current year. The share of the United states from global wealth is about a quarter. If we want to maintain status quo our military expenditures should not exceed US$ 300 billion a year. This indicates that we are either planning to conquer the world by military force, a task that nobody has ever come even close to achieving or that we are totally misusing our resources. In either case when the lunacy is removed and rational thinking introduced we can count that we have about US$ 400 billion available for civilian development or use. What can that US$ 400 billion actually buy in the USA? 

  1. To simplify US$ 400 billion is about 3% of our GDP. The 3% of GDP supports about 9 million people (3% x 310 million people= 9 million). From this about 5 million are already paid through the military budget. We know that this US$ 400 billion is wasted money one way or the other. With this we can simplify and say that those five million people are paid for shoveling sand from one pile to another and back again. 

  2. Somebody say that we need at least 100,000 more police officers on the streets and at least equal amount of teachers to our school system.  These 200,000 persons do not even make a dent to the 5 million person pool where everybody is paid wages or salaries together with all customary health and vacation benefits. We can take them instantly out from the military industrial work and put them to do something what the society needs like roads, bridges, new schools, high speed rail roads, etc. This would not cost a penny more. In the case that a major war would would erupt they would still be available without costing a penny more.

ENERGY POLICY:

We can choose between two working energy policy options. Regardless that they approach the final solution from two totally different directions they both will produce the exacting end result:

  1. Add US$ 2 tax to each gallon of gas (any fossil fuels) that are consumed anyway in the country. This tax is enough to create a viable renewable energy industry to the USA leaving the micro management of the issues to the entrepreneurs where it belongs. They are the only ones that truly understand what is going on. With increasing competition and new mass production technologies we can expect the renewable energy to start developing fast. After the renewable energy reaches 20% share of all electricity use in the USA we can reduce the initial energy use tax and actually use it to fine tune how much energy is produced from fossil fuels and how much using the renewable energy processes.

  2. Adopt similar measures than the China just did and order every utility in the country to purchase every kilowatt hour of electricity that is produced by any of the renewable energy processes inside their service area. This must be done until a total of 20% of all electricity sold to clients is produced by renewable energy processes. The reimbursement price for renewable electricity producers must give them 20% return for their investment. The utilities are not obligated to go beyond 20% share of renewable energy if they do not want to do it. The cost to consumers would go up slower compared to the immediate energy tax.

BANKING POLICY:

The Bank of Canada became publicly-owned in 1938 under Prime Minister William Lyon Mackenzie King: “Until the control of the issue of currency and credit is restored to government and recognized as its most conspicuous and sacred responsibility, all talk of the sovereignty of Parliament and of democracy is idle and futile. Once a nation parts with the control of its currency and credit, it matters not who makes that nation's laws. Usury, once in control, will wreck any nation.” Bank of England was nationalized in1946 by Winston Churchill.

There is no other option than to Nationalize FED.  UK did that already after the WW II. Very little will change in real work ld but that little when coming from the real government and their decisions on the monetary policy in the country is enough to give the middle-class a change! Now they have absolutely none! The interest rates are used today to maximize the damage to the working people while transferring the wealth to the to 1% of the population.

HEALTH CARE:

We must do a simple change to our already existing health care system by expanding our Medicare to cover every American citizen. Taiwan when they studied alternatives to their nation of 22 million citizens chose our Medicare to be the starting point. After improvements to the system they reached their goal at cost level of 6% from GDP. That is all what it took to cover every Taiwanese person with a better system than our Medicare. If our private health insurance industry wants to compete they are more than welcome to pick those clients they choose and offer them their highly tailored insurance policies. The best they have shown so far is a cost of 17% of the GDP leaving still 50 million people outside the coverage as non-insurable or undesired citizens.

We must abandon the current bipartisan nonsense in Congress. The congressmen and women have become teenagers again pickering on nonsense. They were sent to Washington to do the job of the grown ups with ability to think without lobbyists and the TV commentators then draw their own conclusions and vote accordingly. The lobbyists have a single agenda against everything else but their cause. What about the TV commentators and the polls they release? The commentators first "teach" the people and then poll them with carefully crafted questions to get the feedback how well their "gospel" was received. It's like high school again. Nothing wrong if the "gospel" sticks to truth but too often this is not the "truth" that is out there. They make an appearance of the truth seeking they bring in experts to answer and give them narrowly defined questions and will instantly cut them off if they start telling the real story - it works wonders with the masses. That was exactly the same tactics Hitler used to get into power.

Both the Senate and the House versions on health care reform were written by the health care industry lobbyists not by the health care service users the people here down in the gutters who will know best their problems. As written it will increase the health care cost as it demands the people buy an insurance. The word insurance simply means that somewhere there is a bureaucracy that must be supported by money. We have already a non-competing health care insurance industry in the country that has tens of thousand of insurance policies that they administer. We the people down here have only one life to administer not tens of thousands of them. One more insurance company will be just one more insurance company and nothing else.

 

MULTIPARTY SYSTEM:

The United States of America is a REPUBLIC and not a democracy. When the constitution was completed between 1777-81 the planners used the Roman Empire as their example in formulating how the new country should function. Like in Rome commander of the military campaign against the British Empire, George Washington, became the first President (Emperor) of the USA in 1789. The house of representatives was established the same time. It had become clear that the Senate alone was incompetent to advancing any legislation and another body that was closer to the people was necessary. Was that the reason or the simple fact that the Senate did not represent the people in the gutters as did the general who led the country to decisive victory over Britain and who was now destined to become the first President of the USA.

Democracy was establishing it's foothold in France and the 1793 execution of Louis XVI must have impacted the thinking of the Senators. The former master the British Empire had established the House of Commons already during the 14th century to work on legislation to be approved then by the House of Lords. With this the House of Representatives was a proven solution.

The only meaningful feature since that are the hoards of lobbyists (paid by big business) that use huge sums of money to tilt legislation to favor their masters. Their job is "teach" the congressmen and women on complex issues to get the "best" possible outcome for the "citizens" of the USA. Unfortunately it appears that this all has gotten out of hand.

As a fresh reminder of the fragility of our political system in today's environment the supreme court just interpreted the laws so that all corporations, domestic or foreign can support and lobby (=bribe) congressional candidates as much as they please. This means that the banking empires from UK and Europe including the Zionists (using even the US tax payers' money) can now openly support their candidates as much as they please. Even our otherwise too timid President saw this to be a problem. With this interpretation the independently thinking man/woman from the street was kicked out from the US Congress.

To break down and diversify our binary political system we must create more parties. It is not enough that we have so called independents that both parties claim to represent them. If independents are a real party why are they not more visible in the congress. They have no common policy and having only a few representatives their opinions have no meaning.

We can create instant voting blocks with real power in evenly divide congress. We have high population number groups that have obvious common interest to take care. Today their leaders are sucked into this two party system by promises that will never get filled. Here are a couple of the them:

  1. Blacks
  2. Hispanics
  3. Immigrants as a total group

We have now a binary political system that can never function as it knows only on and off modes and nothing between them. That is the reason the civilized democracies and even some of the controlled societies have several parties in their political domain. Even the Chinese have realized the problems arising from their one party system and so have also the Russians.

The Russians are progressing rapidly with openly discussing how to expand their political party system towards more multi polar government. They have multiple parties already but the issue is how to get the people out from their old one party habit towards a more balance multiparty system. They are open to the extent that they agree even on the highest level of the government that those in power do not liege to give it up too easily. The Russia has realized that they have a problem while the USA has not.

The power is sweet when you have it. What prevents the ruling cliques from giving any away is based on unfounded beliefs that the others do not understand what is best for the country. These others understand this even better as they are surrounded by the real facts and not the facts that are carefully filtered by the interest groups before these new "facts" are brought up into the closed circle private cocoon of the supreme power of the country.

Our Health Care Industry, our Military Industrial complex and our Banking System are all controlled by the Plutocracy that have already tried to bring Fascism into USA. That happened in 1934 but it failed only because of one patriot with half a million men army from disgruntled reservists was unified under his control. He was about to release this power for the Fascist cause but changed his mind at the last moment and revealed it all to President Roosevelt. We are fortunate indeed that this patriot General Butner changed his mind and ended it all on the spot. Unfortunately for us President Roosevelt had no other choice than to let these super wealthy Plutocrats to disappear with the "morning fog". Our National archives have preciously little on this issue but enough to reveal that it all was real.

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January 24, 2010

PART I: The US dollar - Is the Western Plutocracy in bed with China...?

Background

The Americans are blinded in believing that the US$ is the strongest country in the world while the dollar has been losing value for the past 40 years. The Sun King of France, Louis XIV, knew the power of money when he stated: "The one with most money will always win the war".

The graph below tells that the USA is in trouble as per our "Sun King". The dollar is steadily losing value:

We have two major issues against and one for the dollar: 1) annual trade deficits around US$ 600 billion, 2) military spending at US$ 700 billion a year, 3) dollar is the reserve currency of the world ( = we can just print more of them and collect fees and interest for "free").

The US military spending for 2010 is projected to US$ 708 billion while the whole world used US$ 1,200 billion in 2008 ( wars in Iraq and Afghanistan consume about US$ 100 billion a year). Our military budget is about 10 times that of China's while Russia uses less than US$ 40 billion. China and Russia are classified as threats to the USA and it's allies. China has no troops outside it's borders while Russia has a tiny handful in its former territories in Abkhazia, Armenia, South Ossetia and Transdniester. The U.S. has hundreds of thousands of troops stationed permanently on all six continents.

What is the return for our military investments? On the surface most of it is just wages and hardware to make us feeling safe in the world. It is a loss making business beyond securing the safety of the actual territory of the country. Any prudent CEO who's job is to secure maximum benefits for the shareholders would shut most of the military operations down instantly. How could he/she justify by far excessive production of hardware and explosives, then storing them for a decade or two and at the end destroying them? Where is the benefit for the shareholders?

The wages and salaries supporting the excess in this process could support activities of the society for free - fully paid through the military budget! The excess money, around US$ 400 billion (see below) is today supporting about 9,000,000 people in the USA (400/13,500 = 3% of GDP; 3% times 310 million = 9,000,000). From these 9 million about 5 million are working and paid to "shovel sand" from one pile to another and when done to shovel it back to the original place, etc.! Our desperate need to have 100,000 more police officers on the streets and 100,000 more teachers would not even make a dent to this 5 million people pool paid for "making sand piles and moving them around!"

With the wars in Iraq and Afghanistan we may be liable for much more of the collateral damage than we are let to understand. These countries did not attack us. The 9/11 hijackers were not Iraqi's not Afghani's but mostly Saudi's. Nobody from Iraq attacked us we just cooked to books to brainwash the American people and it worked. We were the attackers and went in not knowing even who our enemy was. We started it all by destroying major government buildings and bridges! This is the way our political planners wanted to destroy an underground terrorist organization that was certainly not domiciled in Iraq nor loved in Iraq. This is just another reason to question the justification to our US$ 708 billion military budget.

It does not help that the rest of the world combined uses only US$ 500 billion. When our financial wealth is about one quarter of the global then our military spending should not be more than one quarter of all military spending in the world. We should not more than US$ 300 billion. We need congressional hearings to flush out how the excess of US$ 400 billion is spent?

The trade deficit and the excess military spending add up to US$ 1,0 Trillion - this is mostly wasted money, 7.5% of our GDP. If anything this needs the attention of our government: the White House, the Senate and the House. This all can be solved a trivial way just by following the example how the rest of the world has done it:

  1. We start by re-inventing the key industries we outsourced to reduce the import and we make a simple tax change impacting the fossil fuel use.
    1. We have how to manufacture almost anything and know the technologies. Incentives for companies to build their factories in the USA instead of overseas can all be financed form the new fossil fuel tax.
    2. A solid energy policy needs nothing but a tax on the use of fossil fuels. With this the renewable energy corporations will become commercially viable and that is all what we need. Europe has practiced taxation to guide development for decades and the results are impressive. When the new technologies reach the scale of mass production the taxes are slowly reduced to balance energy produced from the renewable and fossil fuels.
    3. China announced last week a massive policy change to have 20% of all electricity coming from renewable sources by 2020. They made a law that the electric utilities to must buy all renewable energy available to them before generating any of their own until the goal is reached - that for sure will get it done!


  1. Reducing our military expenditures by US$ 400 billion a year is not quite that simple but not too complex either. Everything rotates around the employment level on the Sate level. The military industrial complex owned businesses that make hardware and explosives employ a huge numbers of people and the States have no solutions how to employ their citizens any other way.
    1. First we must bring most of the outsourced businesses back to the States the right way like the Toyota's and BMV's. When done we might be able even to exporting some of these "insourced" products. Anyhow everything that is done domestically is reducing the trade deficit.
    2. The military industrial complex is financing major portion of the basic R&D in the US universities and some will claim the end of the world if major part of this support would disappear. The rest of the world is using more direct taxes to finance the universities and this lets the professors to concentrate to their R&D instead of worrying how to fund the R&D over the next quarter.
    3. The military industrial complex has been supporting the outsourcing of all other industries but theirs. This has increased their importance on the State level and local politics. With increasing unemployment recruiting to military service became easier. When asked from recruits why they have joined the military the dominant answer today is: "I had to feed my family and there was nothing else available". This was not the common answer as recently as only 10 years ago.


  2. The US dollar became the reserve currency of the world and that has supported the value of the dollar since the beginning of this process. How did it happen? It is a long story that started almost immediately after Queen Victoria came to power in 1837 at age 18. Her guardians had ignored her preparation to her position hoping that this would prevent her from taking up her duties in case the aging King Georg III would die before her 25th birthday. Georg III himself liked her and considered her to be qualified to rule the Kingdom already. Victoria herself was influenced by liberalism and likely her friend the Belgian Prince Albert who later became her husband. The aristocracy tried to assassin her early in her rule and that forced the English aristocracy (read Plutocracy) to start developing alternatives to stay in power.
    1. This plan included establishing and owning the central bank for the new country of USA that was still living its formative years
    2. The lobbying that had lasted almost 100 years led to success in 1913 when the Federal Reserve Bank (FED)of the USA was formally established. This was and is still today a private a bank owned by the global banking empires from Europe and as minority shareholders some US banks. This was an unbelievable coup but it was done.
    3. Following the 1929 depression and end games in effort to stabilize the values of the currencies tying them to the value of the Gold. The FED won the end game and at final stage it gained ownership to most of the Gold in the western world ruining the UK economy and the living standard of the American workers in the process.
    4. With this the US dollar became the reserve currency in the world that was used to balance the trade between the countries. FED was happy to provide the liquidity to these transactions for a fee and interest and this process is still ongoing. On practical level this means that the USA is free expand it's monetary supply and just print money without fear of inflation as long as it stays within the limits of the annual expansion of the global trade at large.

Part II covering the currency movements to come soon...

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January 15, 2010

UK and the Netherlands are shamelessly demanding from Iceland what they would never do themselves - Iceland should never agree with this nonsense...

"Europe's small, debt-strapped countries should follow the lead of Argentina and walk away from their debts. That would shift the burden to the creditor countries, which in turn could solve the problem merely by a change in their accounting rules" (Ellen Brown)

How much money are the UK's and Netherlands's banks supported by their governments really demanding? To understand this we have to make a comparison.

If Iceland would be the USA the exacting demand from UK and Netherlands would be US$ 3.7 Trillion. The combined GDP of UK and Netherlands is only US$ 3.0 Trillion (2006). Guess how the USA would pay back this debt? By evaporating these banks with a half of dozen cruise missiles carrying nuclear warheads - with evidence gone there is no debt. The iraq war is still below US$ 1 Trillion.

To give almost 4 Trillion (relative money on US scale) for some bankers is nonsense. This comparative amount is actually close to the real money lost in the securitized mortgages alone where such banking empires like Goldman Sachs & al., were the main players.

In reality the banking empires like Goldman Sachs, J P Morgan & al., who caused our current financial crisis, would not even notice the reduction in their current tax payer funded bonuses if they would be forced to pay in full the debt of Iceland. These banking empires are involved to this Iceland game one way or the other as their actions caused the global crisis to erupt like it did. The relentless simultaneous short selling on September 15th, 2008 was not done by individual people panicking and liquidation their pension funds like media was telling. The people were at work and did not even hear what was going on until everything was done - the private citizens had no change to sell anything at all.

Loans are approved by the lending institutions. If lenders were incompetent that is their problem. This is how capitalism works, it weeds out incompetence. How can it be a problem now. Is the real problem that the plebs in corpora down here in the gutters are getting smarter than the less numerous offspring of the Plutocracy?

We have accepted too long the word from financial institutions as a gospel from high and with that we have accepted whatever punishment we have "deserved" from our right but wrong deeds. The more we learn the more we see that these international banking empires are totally corrupted and working in unisom to rip us off. The only good they do is the good for their owners, the Plutocracy.

Their most productive wealth grabbing process in the past was to steal the future from the developing countries. This was done by utilizing existing or implanted corruption as means to reach the goal. The more corruption could be created the better the results for the banking empires. IMF of the past was just a common joint for the international banking empires. Here is how it all was done:

  1. IMF as lender or as guardian of the major western banking empires lends money to poor countries at highly "favorable" terms to improve their standard of living - sounds noble? As long as these countries can live with the loan terms it would actually be true but there is a catch. In reality all the projects implemented the IMF way would never be profitable as major portion of the money is wasted to corruption. IMF is well aware of this but for the international banking empires and businesses this is the way to get real profits a little later.
  2. All these projects are bound to default and with that the small print in loan agreements will allow IMF to change the rules. It will suddenly demand strict austerity measures to be implemented in the borrowing country regardless who borrowed the money. The name IMF was enough to force any developing country to compliance. If the country has no export industry based on it's own resources it has no hope to ever pay it's debts. The death spiral starts with devaluations, wage cuts, increased taxes, import restrictions, etc... After a while the target country is nothing but a modern day slavery that the international conglomerates can utilize as they please (just like said in Talmud). Haiti with an unfortunate real disaster today is an excellent example what was doyen. One of the poorest countries with a great climate next to one of the richest countries in the world. What a coincidence!
  3. It is next to impossible to prove that IMF has done anything wrong. As an example of corruption works the cost of gasoline on ground in Iraq is as high as 100 times what people pay in the USA, the same goes with all the other services, everything is overprised. It was recently reported from Ghana that all of it's citizens could have clean water with a mere US$ 25 million. The price for this was put to US$ 2 billion by international construction teams that serve IMF. These banking empires had some initial problems in Brazil as people in rural areas, villages and cities refused to take loans and with that the "local" banks could not prime their "cash generators".
  4. IMF is now threatening with “austerity measures” the outer circle of the European Union: Greece, Iceland and Latvia. These are not their ordinary third world debtors. Their citizens are well educated and they know how money is created from thin air in the banking process. Historically, the Vikings of Iceland successfully invaded Britain; Latvian tribes repulsed the Vikings; and the Greeks conquered the Persian empire.

"We know that Dozens of countries have defaulted on their debts in recent decades, the most recent being Dubai, which declared a debt moratorium on November 26, 2009. If the lavishly-rich Arab emirate can default, others can too; and when the alternative is to destroy the local economy, it is exactly what they should do. This when the creditors are largely responsible for the debtor's troubles anyhow, and there are good grounds for arguing the debts are not owed. Greece's troubles originated when low interest rates that were inappropriate for Greece were maintained to rescue Germany from an economic slump. And Iceland and Latvia have been saddled with responsibility for private obligations to which they were not parties at all." Economist Michael Hudson writes:

“The European Union and International Monetary Fund have told Greece, Iceland and Latvia to replace private debts with public obligations, and to pay by raising taxes, slashing public spending and obliging citizens to deplete their savings. Resentment is growing not only toward those who ran up these debts . . . but also toward the neoliberal foreign advisors and creditors who pressured these governments to sell off the banks and public infrastructure to insiders.”

We are bound to see the beginning of a new chapter in international predatory lending that will end this modern day slavery. If not then it will be interasting how the population of the USA reacts when they realize that they are just slaves for the international banking empires. The bankers should re-read the part of the US constitution that tells that people have the right to carry weapons before they proceed too much further. A similar finacial crisis that is going on right now within a few next years might get the people to load their weapons also.

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January 13, 2010

We know it now, Goldman Sachs's CEO, Lloyd Blankfein, was "working for GOD"

We know for sure that this was not the Christian GOD. When and how was this contract created and what was it's purpose? Did GOD really ask Goldman Sachs to securitize the US mortgage markets and sell these securities then around the globe. Did GOD then suggest that Goldman Sachs should immediately after short all these securities?

Goldman Sachs knew for sure that all these mortgages were outlandishly overvalued compared to the underlying assets. This all was not a sudden realization afterwards it was a long term plan. The mortgage industry was suggested to offer new type of mortgages that could expand their markets tremendously. It was no more important to check the qualifications of the borrower to carry mortgages untill paid back in full. It was now enough to qualify them to sign the loan contracts. It did not take long before the secondary markets were exploited too and every house owner received a stream of suggestions to extract cash from their home up to 125% or even more of the house value with a new or second mortgage with ridiculously low interest rate and interest only payments for the first 3 to 5 years. This qualified every person who happened to have even a temporary job to live like a King in a new home. This was lunacy and Goldman Sachs & others joining in the carnage knew it but did not care as the securitized motgages were now selling globally like girl scout cookies!

Goldman Sachs & al. were fully aware that the borrowers could never survive the reality they would meet in 3 to 5 years? Claiming that the smart people like these investment bankers are could not figure this out is more than lunacy - it is a crime with a conspiracy to commit a crime or perhaps even a treason depending on from which angle one is looking at this case!

Do these guys really believe that they are part of a super race - like the Arjans in Hitler's Germany? Many of us down here in the gutters saw and called it exactly like it was and we are not even normal bankers, not the David's star gazers, just ordinary people belonging to the vast majority that suddenly saw their pension funds to evaporate. It all started on September 15th 2008 and the evaporation part of pensions was completed within six months. The aftermath will continue for years to come. One can only hope that this time these criminals will get their due and can not excape like during the time of the President Roosevelts in 1934.

Todays's (January 13th, 2010) Congressional hearings revealed that NY FED is auditing the books of Goldman Sachs (according to CEO Blankfein). We hope that everybody knows that FED is a private bank established in 1913, owned by a group of private foreign controlled banking empires with minority ownership in the hands of some US banks - Goldman Sachs is one of these formerly "foreign" banking empires. The audit practice is interesting: FED audits the books of Goldman Sachs. And we can be sure that as one of FED's owners, Goldman Sachs receives all the audit reports of FED, those ones that the US Government does not get. We have a fox guarding the hen house and vice versa. What a coincidence and a convenience - almost like a tr- - - - -!

What is Congress doing?

The above is alone a good enough reason to change the laws and get FED 100% under the Government control and kick the originally foreign investment banking empires out from our financial management. With the coup they executed in 1913 and the consequent changes caused with that to the world's financial systems it has become meaningless for the banking empires where their home base is as long as they just controll the FED.

Our focus must be in who owns FED. Today it is in the hands of this foreign Plutocracy through their global banking empires.

As it turned out this latest financial crisis since September 15th, 2008 removed once again huge chuncks of wealth from the American middle class to the hands of these empires. To be precise every recession since that including the 1929 great depression have done exactly the same. There is no need for any further proof what this game is all about!

The bank of England was nationalized already during the early part of the 20th century and so are all the central banks in the civilized world including the ancient civilization of China!

With nationalizion the financial policies in the USA will not change that radically but that little that will cahnge is enough to give the ordinary people a change. As it is we do not have even that as we will be robbed through repeated recession that just pop up every time the average Joe and Jill gets a little forward!

FED must be nationalized!

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January 8, 2010

Plutocracy is on war path - target: World domination!

Most people never understand that economics is not a pure science. Generations of young MBA's believe differently and regardless some will never "see the light". Economics in the USA as operated/managed today is approaching theology. In real science any disrespect to it's laws lead to instant punishment. Don't believe? Try jumping down from the Eiffel tower for your final experiment in your series covering the evolution at work...

Ask then yourself, why did we have yet another financial meltdown in which the wealth from the majority was transferred to the already super wealthy minority? A crime was committed but there are no consequences as we do not know who exactly did it? The marvelous display of smoke and mirrors formed a perfect mirage and when the average Joe can not figure it out then nothing happened or did it?

The middle class behaves as always, like lemmings, trusting their financial well being to the financial institutions and their theories of such great philosophers like Marx, Engels, Friedman, Keynes, Samuelson & all the other aliases that keep up our illusionary world of justice in wealth creation if you just follow the "precise laws" of the economics.

Einstein was not an economist nor a priest but he told the truth he knew in everything to those who cared to listen. His advice for wealth creation was a simple, a math equation of compounding interest - so brilliant that most people never understood the depth of it. Still, this is the centerpiece of all financial thinking and the raw power in the "secret" engine of the Plutocracy. They understand the power of time and that's why we, the rest of the people, have been conditioned to think and live on a short term basis. This short term life demands instant gratification and with that the family wealth and ability to survive will simply disintegrate in a generation or two. Plutocracy measures time on centuries and the long term survival of their families and their family fortunes. To illustrate the issue, some decades ago a visitor from overseas wondered the American life style to the CEO of AT&T: "Why do you Americans consume so much?" The reply was simple: "It's not us, it is them who consume"?

Plutocracy planned both for WW I and WW II. They also suggested to establishing a strategically located new Nation next to the oil fields of the Middle-East. Don't get this wrong - there are many players and this newcomer Nation is nothing but a hammer in the game regardless the more than 200 nuclear war heads in their underground bunkers. This plan was brilliant as this Nation is now filled with megalomaniacs believing that they are the God's chosen people on route to becoming the sole rulers of all World and with everything on it, animals, gentiles and all alike for them to enslave, enjoy and utilize as they please.

The current financial coup arranged by a western Plutocracy was put in execution motion on September 15th, 2008 by taking out one of the original banking empires the Lehman Brothers. At the same time it reduced the financial wealth of the middle class by around US$ 6 Trillion within a few months. It had also vast global consequences and some intentional and some perhaps surprises. It backfired like the one during 1933-34 following the great depression. There eastern and other Plutocracies had been preparing for a showdown since the Enron collapse. That bankruptcy was not an ordinary bankruptcy as suddenly the White House got involved to clear it out. Enron was a practice run.

 

Most would agree that we can not abandon the trade

The old world had crafted methods to financial protection against adverse development like unfavorable weather during the growing season, storms on oceans that sink the cargo carrying sail ships of the times, adverse currency fluctuations and all alike. For centuries we succeeded well with these "insurances". A farmer sold put options for his crops already at the time for planting to buy the seeds securing thus a fixed price for portion of his crops. He could also buy an insurance against the total loss of the crop against natural causes the same way like a shipping company could buy one against the storms that could sink the ships. Letters of credit were used to secure an irrevocable payment of the delivery and options were used against the currency value risks, etc... This was the normal way until Enron surfaced. This company took these financial instruments to a new level and started playing with every exotic derivative they could find against every other exotic derivative while balancing the books on a daily basis. Soon enough this marvel of financial innovation went belly up. Was the bankruptcy planned? A bankruptcy destroys always some evidence!

A few years later the same game surfaced on global theatre with real money dwarfing the scale of Enron instantly. After a few years further experiments it was put in to test. The game grew and grew exponentially and within a few years it had mushroomed to US$ 600 Trillion (2009/ BIS). How much money is that? It is about 10 times the amount of money that we get when we add together the GDP of all countries in the World. Just to protect the global trade?

In 2008 the world trade had a value of US$ 15.7 Trillion To protect the sellers/buyers against currency and other unseen natural factors hedging this trade will need about 4.5% capital as various type "insurance" payments or US$ 700 billion leaving still handsome profits for those companies taking the risks. The mushroomed game of US$ 600 Trillion require about US$ 27 Trillion tied in cash or equivivalents to keep the game going. It is out of this world that some parties out there are willing gamble US$ 27 Trillion to "protect" trade that can be protected with only US$ 0.7 Trillion. This is lunacy, and when at this level it is beyond any normal gambling. It must be stopped by any e,means we have available as it has put the whole world at risk where the end result is WW III.

So, who is playing this game?

Whoever can manipulate this game will be in position to replace anything they wish on this planet including the presidents, kings, dictators, governments and even the political systems. This game is about global domination by fascist plutocracy or plutocracies either alone or rather as it looks together with the shadow governments .

It may be that everything is too late already. The voting in some democracies has become optional as the end result of all voting will follow the Stalin's almost a century old statement: "Those who vote decide nothing - those who count the votes decide everything!" Here the electronic voting machines are dangerous as they can be programmed to suit and will produce the exacting results that the well timed opinion polls and news casts will predict. Who can contest this type of widely reported and with that totally expected results?

 

What to do next?

Stopping the game will cost today about US$ 27 Trillion. We know that governments do not have such cash under carpets but they can always print the money. No nation has ever abandoned their wealth without contest and that means an all out war. It might be already over and we have been under the fascist rule for over 10 years. This is plausible as the promised changes made during e.g. the last Presidential elections in the USA have not materialized. Instead it appears that the policies practiced by the cabinet of the past President and VP and the neocon group are still followed to the letter. This was not what the American people voted for.

History shows that when governments need money they end up using one of the following three options:

  1. Government prints the money as needs needed. This will usually lead to inflation at various levels and will devalue the nation's currency (However, nothing happens if the money is paid back within an agreed time period even when no interest is charged the money supply has not changed. With the increase of population the money supply has actually gotten tighter).
  2. Government prints the money lending it to the programs as needed but demands full collateral and that every recipient pays the money back within the agreed time period. There will be no inflation and the value of the currency remains unchanged as the money in circulation returns back to the original amount after the loans have been paid back.WE should have done exactly this to solve our 2008-2010 financial crisis but we chose to bail out our banks. Our government should have paid off a percentage of all loans held by citizens directly to the debtor banks. These payments would have become interest free debt to the citizens with exacting principal repayment schedule with the original debts. The government would taken over the guardianship of the titles of all related loans. In case of credit card debt the lending institution would cosign the debt. The loan transfers from banks and financial institutions to government would have make them instantly solvent and capable of running their business. The citizens would have had an instant solution to their liquidity crisis and the cash in their hands would have jump started the economy.This would have been the only fair way forward but as said we chose to bail out the highly debted investment houses, banks insurance companies and the Auto industry. When done the consumer got into trouble as the banks are not lending but instead they have raised interest rates on most consumer debt and have also imposed highly accelerated credit card debt repayment schedules. The word " Plutocracy" is written all over this solution made by " our" government.
  3. Government prints the money distributing it to the programs demanding collateral, a tight payback schedule with a variable interest. The word "interest" is the whip that carries the signature of Plutocracy. Why so? In addition to repayment the interest takes money out from circulation. Depending on the rate and length of the repayment schedule the interest payments can easily be more than double the payments as an average. This means that more money is taken out from circulation that was ever put in. Who gets this interest? The immigrant population of the USA was vulnerable to outside influences as most were poor and had hard times in coping with language barriers and all the related issues. After the Boston Tea party it was clear that a new nation would be formed. When the USA started the war for independence the banking empires of UK and Europe saw a new unparalleled opportunity that was so compelling that they decided to join forces to act together for a common goal regardless of the cost and time. Perhaps they did not realize that it would really take time as after finishing their plans it took over a century to get it all accepted in the US Congress.

In 1913 the US Congress finally gave up after a multitude of failed experiments to create a working banking system and Federal Reserve Bank of the USA or FED was born. This FED received had the sole and independent power to regulate the financial system of the USA. This while FED remained solidly in the hands of the same private consortium of foreign banking empires that started the game generations earlier. The foreign ownership had been a thorny issue over all these years. This was solved when the consortium included a minority of real US banks into owners group and established their own American subsidiaries - still 100% under their control. This silenced the opposition in Congress as the FED was at least in name 100% owned by legal "American" banks.

The charter of the FED included the right to charge the US government for all it's operating expenses and the right to earn 6% interest for it's capital. FED's power included the control of the base interest rate at any given moment in the USA to "prevent" the economy from overheating and to add liquidity when needed. Nothing has changed since 1913 and the books of the FED as a private entity are still unavailable for the people of the USA.

This coup changed the financial power of the World to the USA. The raising powers in the East are bound to challenge this system as evidenced by the huge derivatives mountain discussed above.

 

Is Fascism the Answer - it was very close in 1934...

Decades of observations has made us believe that the economics at large behaves like a belief system and not as a science. With all computing power at hand the outcome from a logical system like sciences are would be much more predictable. There is no predictability if one listens to the real "specialists" of the economy that the news media brings us to see. They have nothing else to tell than conflicting ideas or statistical hocus pocus Whoever is most believable for the moment moves the markets for a few moments. However, when the high priest of the US economy, the FED chairman speaks, the markets may move even several days to the direction he pointed. We all know that he has the power card of interest rates in his pocket.

We all know that the purchasing power of money should depend on the amount of it in circulation. Too much of it we have inflation and too little we have deflation. A bumper crop of apples tends to bring the price of apples down and vice versa.

The same should work also when dealing with international currencies. Great observations but we have still problems as even our apples sometimes defy the Newton's gravity and when we go to foreign currencies we encounter some serious gravity problems. The firs peculiarity is that the Americans are not allowed to hold foreign currency accounts in the USA. In any other western country one can establish as many different foreign currency accounts as you please and do what you ever want to do with them. Yes, one can participate to currency option trading if one is wealthy enough to meet the requirements of the trading company. This option trading is only for professionals. For the average Joe & Jill it would be better to go to Las Vegas, to donate the money to their favorite charity or to take a dream vacation anywhere in the world - the financial result would be exactly the same but by doing what they have always wanted to do would make them much happier.

To stabilize the currencies the world had tried gold standards for a multitude of occasions but always failed. The peak season for these trials was between 1800's and early 1900's. Towards the end of that period a tug of war was going on between the Britain and the USA.

The Federal Seserve Bank of the USA or FED was just established (1913) under the tight control of the European banking empires. This was a major coup for the European banking empires. These had tried to get accomplished already almost a century starting from the coronation of the Queen Victoria whom this Aristiocracy saw as by far too liberal minded towards the ordinary people in Britain.

The WW I had just ended to humiliation of Germany. The winners of the war forced Germany to sign a peace treaty with impossible terms. All the signature nations in Versailles, at least the USA and UK, knew perfectly well that it was impossible for Germany to ever pay for the demanded repraisals. The plan of the winners was to destroy the German financial machinery like it did through the hyper Inflation. With this deliberate act and humiliation of the people it simply woke up the forces that led us all directly to the WW II.

The great depression of 1929 was soon to come. To attract gold back from the USA Britain needed to increase the demand for pounds and for that increased the interest rates. With gold flowing now to Britain the US money supply was decreasing and that was a problem of course for the ordinary people. The high interest rates in turn depressed Britain’s own economy to a degree that the British government had to abandon the gold standard in September 21, 1931.

The pound collapsed and speculators attempted to devalue the US dollar too. The FED responded by raising interest rates. The FED was able to defend the gold standard initially but like in Britain it tightened the money supply amid uncertain economic times. The U.S. government, which soon possessed most of the world's gold moved to cushion the effects of the Great Depression by raising the official price of gold from about $20 to $35 per ounce and thereby substantially raising the equilibrium price level in 1933-1934. The 20/20 hine side theorists figured out later that a strict adherence to the gold standard during the Great Depression prevented FED from reducing interest rates that prevented the expansion of money supply. FED did the opposite it increased the interest rates to stimulate demand for the U.S. Dollar. This made it all worse for the US citizens but great for Plutocracy as they were now in position use the dollar and go shopping businesses from Europe. Germany was especially vulnerable after the WW I with hyper inflation of the German Mark. What was happening for the people in the USA was not important for the moment as the Europe was for sale and the Wealthy had the dollars and gold thanks to the banking empires of the Europe who still con troll the FED.

Between September 15th, 2008 and March 15th, 2009 the US tax payers lost about US$ 6 Trillion from their retirement savings. This can be interpreted as reduction of money in circulation to balance balances our national books from continuous imbalance in foreign trade, wars in the Middle East and potential wars elsewhere in the world. How many of us know that we are holding about 100 military bases on foreign soil?

To be honest our Economy follows much better the rules that work in the game of Monopoly or it's more vicious modern version that is called the Settlers of Catan.

The world was in turmoil during WW I and WW II. The USA emerged somehow as the savior the "free" world. In the aftermath we managed to convince the world to accept the US dollar as the reserve currency of the world for balancing all trade between various countries. The other countries were broke or just physically broken and it was child's play to entice them to this new game. For any trade imbalances we of course were more than willing to supply dollars as needed - for a fee or interest or both. This was the ultimate coup. The dollar was suddenly as strong as "gold" and to be precise after 1934 we had most of it anyhow. We profited greatly from these two world wars wars.

It is totally unnoticed that our trade balance has stayed for decades at level of about half a trillion dollars per year. This extra spending power has brought us a huge edge over the rest of the world. In the shadows the inevitable is happening but the sinking of dollar is so slow process that hardly anybody follows it. This sinking is real but the books have not been balanced as of yet. Without our financial and especially the military power that can strike anywhere in the world at will we might not be much better off than Zimbabwe or the former Weimar Republic at the time.

The Roman emperors learned the facts about the value of the money the hard way from their generally privileged citizens. The gold coins with emperors' heads on had the same value trough the emperor and even the whole empires life. The same amount of these gold coins bought a horse at any moment like it had always done. Later on when the emperors became more and more corrupted it all changed. Tax collection became unfair and with that the gold level in emperors' coffers started sinking. As a solution the emperors started minting new coins from less valuable metals like copper while telling the citizens that these new coins had the same value as the old gold coins that have the emperors' heads on them. It did not take a rocket scientist at that time either for the citizens to disagree and judge these new "gold" coins were only cheap imitations and with that their value stated going down. With passing emperors towards the end of the empire people simply refused to accept these imitations as pay for any services at all.

It may be that the Plutocracy closing to the control of our country has no other choice than to replace our democracy with Fascism. It may be that this solution is the only one that can take us out of this mess. How the people at large would react to this is anybody's guess...

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