New Jersey, New York, California, Oregon, and Washington – Just Sell Them for Parts!

cropped-laughing-owlWith a nod to Bill Engvall, let’s honestly discuss three complete holes in America where suicide by legislative fiat and executive stupidity has produced catastrophic failure.  Let me be perfectly honest, if either of these states were a business, they would have been forced into receivership, broken up, sold for parts, and their leaders jailed for incompetency and felonious charges of malfeasance long ago!  The charades have ended, the rose-tinted glasses are off, and frankly, the party is over, all the taxpayers are fleeing, and the businesses are closing shop and fleeing for healthier climates.

California this week passed another job-killing piece of legislation.  The bill is targeted at Amazon and is built on hogwash, acrimony, lies, and allegations so thin you could read Apple’s User Agreement through them.  Not the first time California’s legislative body has targeted a specific business for job-killing legislation, not the first time the legislation is built on sand, and the forecast is for torrential rain, not the last time this idiocy is going to happen.  The fact that California keeps killing itself is depressing!Bird of Prey

New Jersey and California hold an interesting title, and 32 other states are 100% insolvent in their Unemployment Compensation Trust Funds.  Business owners, this fact alone should scare the living daylights out of you and every one of your workers right now!  Now, some of you get it; some are scratching your heads and going; why is this important.  For those who got it, feel free to skip the following explanation.

The unemployment trust fund is akin to the social security trust fund managed by, raided, and depleted by the Federal Government.  No money means that the debts in those trust funds cannot be paid, and all the funds being collected right now are not being used for future calamities.  For all you economists out there, yes, this is a very simplified explanation.  Insurance trust funds are expected to be the funds of last resort to ensure payments to investors; those paying premiums for coverage can receive protection.  Not having these trust funds means the state unemployment insurance fund is in deep trouble, and there is only one direction to point the blame, the legislators and executives in government.

Bobblehead DollNow, some are claiming these funds were only depleted due to the COVID pandemic.  Do not believe the hype.  These funds were in trouble long before COVID hit, and the fact that there are funds to replenish these trust funds and government leaders are refusing to invest money in the trust funds should be major red flags for everyone in the state!  State and local governments are spending money like it’s Christmas, and the New Year will never come with the bills from the holidays.  Think drunken-sailor on 7-day liberty here if you prefer that analogy.  Either way, financial troubles are brewing above and beyond the current inflation woes, and the media is deftly NOT reporting this crisis.  Does anyone want to venture why this topic is not being discussed?

The Article from the Tax Foundation lays out the data nicely, and you are left to draw your own conclusions from the data.  But tell me, what happens when you call GEICO, Farmers, All-State, etc., with a claim and the claim is denied because the insurance company has no money?  Now multiply that by every wage-earner and business in your state and tell me if maybe, just maybe, the unemployment insurance trust fund being insolvent should be a more significant issue of discussion.Tax Burden

If your state is insolvent, and your next paycheck is a LOT lighter, remember this tidbit about unemployment tax insurance trust funds.

Unemployment insurance tax rates on businesses rise automatically when trust fund balances are low.”

Do you see the trouble now?  First, the government maliciously raids and spends the funds, then a hidden tax kicks in, depleting your paycheck, and the government does not have to tell you why your paycheck is lighter.  Especially since those in legislative bodies traditionally exempt themselves from having to pay these taxes.  Now add in the other hidden taxes; inflation goes up because when taxes climb, inflation climbs, prices go up to cover the hidden taxes of higher costs to operating a business, and wages stagnate, which crimps your budget even further.Government Largess

The states mentioned are not the states that did not need Federal Intervention, and they are not counted among the states spending money wisely, as discussed by Governing.com.  Please tell me that nobody is surprised by this revelation.  I find it alarming that Governing.com, in their analysis, was able to conclude the following:

Despite predictions that COVID-19 would crush state tax revenues, most of them didn’t need mega-billions in pandemic aid to balance their budgets. But for the most part, they seem to be spending the money wisely.”

Leading me to ask, why did the Federal Government invest our tax dollars, venture into such incredible debts, and shut down a booming economy?  COVID has proven NOT to be worthy of the title “Pandemic.”  Yet, COVID remains an excuse for emergency measures, emergency spending, and emergency police actions.  Will any media representative ask a politician why?  I didn’t like the book, but I read Albert Camus’ book “The Plague” for light reading.  That is a book about a public health crisis, a pandemic worthy of the title pandemic, and several times in world history, the title pandemic has been warranted when survivors are burning corpses in the street.  COVID fits none of the definitions or situations for a Pandemic, except for the politically connected to laugh at the politically abused populations.Angry Wet Chicken

Look at Washington, New York, New Jersey, California, and Oregon across the COVID-19 political mania.  Tell me why COVID is not an exercise in malicious government and politics gone horribly wrong.  Sure, we can add New Mexico, Minnesota, Michigan, and a couple of other states into the mix for fun.  These core states are where politicians made vast sums of money on COVID-Hysteria, and I would like to keep the focus small for the current article.

The House Ways and Means Subcommittee is reporting 32 states are intentionally withholding money from rural governments as a political move.  When you take the top 20 receivers of COVID-Relief money and the 32 states withholding COVID-Relief money, you find some lines of congruence with states with the harshest COVID restrictions, ridiculous COVID mandates, and no correlating data to infection risk avoidance.  Now, why isn’t COVID reported as a political and social experiment gone horribly wrong?  Worse, why was the money borrowed by the Federal Government at extortionate rates and given pell-mell to the states when the majority of those states do not need the money and the states that did need the money have sufficient if their politicians reigned in spending?Angry Grizzly Bear

The five states mentioned are not poor states by any stretch.  They have resources, both human and natural; they have riches galore, they have potential, they used to have favorable business climates, they are committing suicide.  Why should the rest of America bail them out?  Why not break them up into parts, sell assets to cover debts, place them into receivership, and force them on a diet of sanity and logic until the bills are paid?

I close with a word of warning.  Texas, you’re headed to California status faster than you would like to admit!  Your COVID restrictions are particularly heinous and represent the infection found in Austin spreading like fast-moving cancer to steal your state and liberty.  Arizona, Idaho, Wisconsin, Iowa, you are all on a similar track, the speed might not be as noticeable right now, but the infection is there and growing.  Utah, Colorado, Wyoming, Montana, both Dakotas, you are all at various places in being terminally sick with the same cancer.  If soft words and political expediency can conquer the Western US, the entire United States is lost.  New Mexico has been lost since it was given statehood in a political move that robbed Arizona and Texas of land!

Image - Eagle & FlagThe time to awake and arise is now!  The fight for liberty and freedom will be fought and won or lost in the American West.  Sure, the coasts of America are well and truly infected.  But, the fight for independence is not on the shores; it is right outside your doors.  The media and politicians like to hyperventilate about the coasts, but the rural communities in the “Fly-Over” states are more important to liberty and freedom surviving than any other local in America.  Awake and Arise!

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

The Proper and Improper Role of Government: Chapter 4 – Tax Freedom Day – Do you know why this is important?

Working DollarIn 2019, Tax Freedom Day was 16 April 2019.  For those not in the loop, Tax Freedom Day is the day all Federal, State, County, and Local taxes are paid from your paycheck.  This date gets further into the new year every year, and with the amount of inflation seen since 16 April 2019, you can bet that Tax Freedom Day will shortly be in the middle of May or July.

What is Paper Money?

Dr. Clarence Carson wrote an article about paper money and the US Constitution, quoted heavily below.  Paper Money, “… Paper that was intended to circulate as money but was not redeemable in gold and silver was technically described as bills of credit at the time of the Continental Congress and writing of the US Constitution and US Bill of Rights. The description was (and is) apt. Such Paper is a device for expanding the credit of the issuer.”  The credit of the issuer is improved, not the benefit of those forced to use the Paper as credit.  Hence, the US Government, to improve its credit, began printing money, and the problems in American Economics took off like a rocket sled on greased rails!Plato 2

Paper Money only has value when the person holding that Paper has confidence in the government printing that money.  In every nation across the globe, the only thing keeping value in the paper currency is confidence in the government by citizens paying taxes.  Hence, the problems with depressions, the confidence in value are shaken, and the holders of Paper Money become restless and lack confidence that their money is valuable.  Bills of credit, Paper Money conveying the value of debt have been around for a long time, as discussed in a previous article on money.  Why did the USSR fall; the currency had been worthless for years, and when the citizens had finally had enough, the government fell apart.  A fitting tribute and pattern to be heeded from history if we, the government owners, cannot get the government to cease and desist forthwith!

Government and Paper Money

The US Constitution, as originally written, forbids the US Government from printing paper money why; because of how fast the government abuses this power, creating inflation.  The Continental Congress was well aware of government abuses with Paper Money, thus restricting the Federal Government to coinage and tying the value to the gold standard.  Inflation is nothing more than a hidden tax, where the government controls how much value your money is worth.  Every person using US Dollars to make a purchase pays this tax.  Thus, by the time a consumable product has been paid for in a store, that tax, inflation, has been paid multiple times, and the consumer is always worse for every point of inflation the government allows.

IronyDid you know that the Federal Government allows 2% inflation every year as a “target?”  Consider this for a moment; the government wants your money and calls this tax a “good thing” for the economy.  Thus, your prices for everything increase 2% or $.02 every year because the government wants it to.  The 2% devaluation of your money is part of the Federal Reserves’ “Dual-Mandate” to achieve 100% employment and price stability.  Do you see any logic in making money less valuable as a means to improve employment and stabilize prices?  I don’t!  Now, consider this, inflation has hit a this year (2021) and has not stopped climbing.  Worse, inflation is expected to continue to grow as the government prints more Paper Money, which will eventually end in a depression preceded by massive deflation of the value of the US Dollar.  Keep in mind; inflation has become a global problem, as the majority of governments spent money they did not have during the pandemic.  Imagine lemmings racing for a fiscal cliff.

Lemmings 5Josiah Quincy wrote George Washington “that there never was a paper pound, a paper dollar, or a paper promise of any kind, that ever yet obtained a general currency but by force or fraud, generally by both.”   Yet, Congress still refuses to learn the lessons taught during the Continental Currency.  Debts, runaway inflation, legal enforcement to demand paper money be accepted, all of these lessons were experienced by the Founding Fathers, with Rhode Island being the Continental equivalent of California for bad fiscal policy and idiotic fiscal enforcement.Tax Scheme 2

The founding fathers met during an economic period of deflation, which quickly became a severe depression caused by states issuing paper money that was useless.  The founders “hoped to erect a system that would endure, and to do that, they wished to guard against the kind of fiscal adventures that produced both unpleasant economic consequences and political turmoil. Paper Money was reckoned to be one of these.”  Paper Money, without the backing of silver and gold, has led to speculation, inflation, deflation, cycles of economic depression, and Congress essentially stole the right to print paper money and borrow from the citizens unconstitutionally!  This cannot be stressed enough; there is a direct causal relationship between Congressional action, Executive Orders, and the economic problems America is suffering, including the bondage of debts insurmountable and the abuse of tax schemes!  All of which were powers strictly limited in the US Constitution because the founders knew the government would abuse the power of Paper Money!Bait & Switch 2

History shows that when paper money was discussed, the states overwhelming voted to remove the power to print money from the US Government, seeing this as the best method for long-term economic success in America.  “The vote was overwhelmingly in favor of removing the authority of the United States to emit bills of credit. The delegates voted by state, and 9 states voted in favor of the motion while only 2 opposed it. (New York delegates were not in attendance, and Rhode Island, of course, sent none.) It is a reasonable inference from the discussion that the delegates believed that by voting to strike out the words, (from the Articles of Confederation, which made up the bulk of the US Constitution), they had removed the power from the government to emit bills of credit.”  It is important to note that allowing states to issue bills of credit, print their own money, or stamp coinage was also forbidden.  To avoid the economic crisis, the founding fathers were in the middle of when framing the US Constitution and the US Bill of Rights from the Articles of Confederation.  How many problems, and how much lower would your taxes be if the Federal and State governments had simply followed the law instead of stealing rights and powers from the governed?

Facts About Tax Freedom Day

IRSPlease note, the federal deficit, state deficits, pension crisis, student loan debt crisis, and interest are not included in the numbers quoted below.  The following information comes directly from the Tax Foundation (linked above):

      • Tax Freedom Day is a significant date for taxpayers and lawmakers because it represents how long Americans as a whole have to work to pay the nation’s tax burden.
      • This year, Tax Freedom Day falls on 16 April or 105 days into the year.
      • In 2019, Americans will pay $3.4 trillion in federal taxes and $1.8 trillion in state and local taxes for a total bill of over $5.2 trillion, or 29 percent of the nation’s income.
      • Americans will collectively spend more on taxes in 2019 than they will on food, clothing, and housing combined.
      • If you include annual federal borrowing, representing future taxes owed (interest on the debt), Tax Freedom Day would occur 22 days later, 8 May.
      • Tax Freedom Day in 2018 and 2019 was five days earlier than it was in 2017, primarily due to the recent federal tax law, the Tax Cuts, and Jobs Act.
      • From 1930 to at least 1995, Tax Freedom Day has taken 1.27 days longer per year to reach. – I do not have an updated reference for this information since 1995.
      • In 2019, on average, it took:
            • 42 days to pay the income taxes
            • 26 days to pay payroll taxes
            • 15 days to pay sales and excise taxes, not including surcharges and government fees for services
            • 11 days for property taxes – states control this, some municipalities, it took a lot longer
            • 5 days for Corporate Income Taxes
            • 6 Days for other taxes that always get passed along to the consumer.

Tax BurdenI have read economic reports from noted minds in economics that claim had the dollar not been loosed from the ties to the gold standard, America could not have produced the tools needed to win WWII.  To which I continue to claim, as Colonel Potter from M*A*S*H so aptly stated, “HORSE HOCKEY! and BULL COOKIES!”  Having Congress issuing massive letters of credit, borrowing tremendous sums of money, and the economic fallout remains a millstone about the financial neck of this country.  How much longer will Americans pay for debts created during WWII?  What about the ever-increasing debt burden and interest that is driving prices and taxes ever upwards?

Knowledge Check!The US Government has acted improperly since establishing the Department of the Treasury and the Internal Revenue Service.  Not just improperly but illegally under the US Constitution as drafted.  Illegally, immorally, and unethically towards the founders, and distorted the intent of the US Constitution to protect America from runaway government debt and inflation/deflation/depression cycles common when issuing Paper Money.  This is the utter truth, and until this problem is rectified, removing paper money is the right thing to do, even if it means some financial hardship!  America can survive financial difficulty; we cannot survive the bondage of runaway debt, interest that sucks all the GDP, and the socialism projects being paid for by tax dollars to buy votes from envious people looking for “equality and fairness.”

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

$1.8 Trillion Annual Deficit – The Problems with Biden’s Budget

Angry Grizzly BearWith gratitude to the National Conference of State Legislatures (NCSL), their analysis of the proposed budget was broken down, and some sense was made.  Not that the news is logical, acceptable, or palatable, just that the budget documents were broken down, which was helpful.  We start with the most bass-ackwards aspect of the budget by asking one question, “Where is the money supposed to come from?”

The 2022 Budget Proposal left President Biden’s desk requesting Congress to spend $6 Trillion and add $1.8 Trillion in new deficit spending to the bloated debt the government already owes.  “Who is going to buy the bonds and make money on this debt?”  When a person employs a search engine, asking this exact question, many answers come forward, and some do not make any sense.

Peter Schiff stated:

The government doesn’t have money that it doesn’t take. Any dollar that the government spends is a dollar that the private sector can’t spend or can’t invest. The government has to take money out of the economy before it can put it back in. Nobody seems to understand this basic point because they see the Fed creating money, and they think, well, we just print money. They don’t realize that when they print money, they destroy the value of the money that’s already there. So, they’re not adding new purchasing power. They’re just redistributing it” [emphasis mine].

Thus the first problem with America’s debt and proposed budget transparent; there is no money that government can spend unless it first forcefully removes it from the owner.  That is theft, or as we recently discussed, legalized theft.  The Supreme Court of the United States (SCOTUS) has ruled that legalized plunder, legal theft, or forced taxation are the price we pay for civilization, thus making legal the government’s actions to steal money.Government Largess

Let me be clear; I am not an economist.  I select several very bright and experienced people to help explain things to me.  However, I can help others with less interest in economics understand what is happening in America right now to answer the question put forward, “Who is buying America’s debt instruments?”  The simple answer is that the Federal Treasury is buying the debt instruments, as the whole world sells their bonds and other American debt instruments.  What the Federal Reserve is doing is called “monetizing debt.”

Monetizing Debt

Gravy Train 3The definition of monetized debt is as follows. “Debt monetization or monetary financing is the practice of a government borrowing money from the central bank to finance public spending instead of selling bonds to the private sector or raising taxes. It is often informally and pejoratively called printing money or money creation.”  Money can only be created in two ways: selling products and services and lending money where the borrower pays interest.  While there are many different debt instruments, i.e., credit card, home loan, student loan, bonds, Treasury Notes, etc., the principle remains the same: you either sell goods and services to make money or lend money and make money on the interest.

Why does monetizing debt matter?

Two simple reasons the government allows debt to be monetized.  To hide debt, it doesn’t want the public to know about, and to absorb cash on the market as a tool to fight inflation.  Here’s the problem, there is too much debt on the government’s books to hide it from the public any longer.  Add to that the sheer volumes of cash in the marketplace after handing out money during COVID, and the Federal Reserve will monetize debt.  Even if the chair of the Federal Reserve denies monetizing debt, debt is being monetized.Burning money - THE JOSIAH BARTLETT CENTER FOR PUBLIC POLICY

In short terms, your pocketbook is going to take another hit on the chin, and possibly two.  First, your interest rate on privately held debt, credit cards, student loans, homes, etc., is going to go up, all while making lenders nervous and refuse to lend money.  Second, inflation is already making the dollars held less valuable.

Inflation first; inflation is the devaluation of dollars.  The government floods the marketplace with cash, and the currency you hold will drop in value.  For example, recently the inflation was reported to have been 4.6% higher year-over-year.  This announcement was made in April 2021, so all the money you earned last year suddenly became 4.6% less valuable this year, all before the interest rate increases affected those dollars.Inflation - 8 Things Everyone Ought To Know.

Case in point, the US Government sent me $1000 in January; I held onto those funds due to a move that was coming and spent the money in June.  However, between January and June, inflation moved up at a steady pace, and when I went to spend that $1000, it was only worth $850.  That is the power of inflation in your pocket.

Have you asked for a credit increase recently and been denied?  What about your credit limits on your credit cards, have they shrunk?  Both are indicators that the lenders refuse to lend due to the tremendous risks caused by fiscal insanity in the Federal Government.  What about home loans, have you had to produce more documentation, prove more income, and work harder to qualify for a loan?  What about student debt?  The government controls the lending of student debt.  Even here, the Federal Government cannot demand a lender loan money to student’s and many students have found their college expenses grow, and their ability to borrow shrunk.Inflation pickpocket | Cayman Compass

In a simple fact of life, every household in America understands perfectly. When your credit scores go down, your ability to borrow reduces, and it becomes harder to meet all your bills every month.  Every city, county, state, and even the Federal Government should know this lesson, but they refuse to believe problems arise when credit scores go down.  All because those elected believe they can tax some more, and the money magically appears.

Does money magically appear in your pocket; of course not!  It must be earned through working, selling goods and services, or trading your time for employment with an employer for a paycheck.  Does the law allow you to write blank checks, kite checks, backdate checks, or simply float a check waiting for a future payday; of course not!  Yet, this is what the government is doing right now with your money.  The government is spending money, promising the lenders that a future payday will be theirs, but the government has to spend money to get money.  Does that excuse work for you when the electric company, gas company, cellphone, and other bills arrive?A Helpful Chart : How Inflation Changes Mortgage Rates

The most heartbreaking statement I have heard in a long time was recently made by a physician’s assistant, who claimed, “Aren’t we all just one paycheck from disaster?”  The simple truth, mostly, yes!  Studies exist that talk about financial resiliency in America.  Financial resiliency is all about being able to weather a patch of trouble without losing your possessions in bankruptcy.  The conclusions were all but unanimous. Along with most industrial nations, America has no financial resiliency due to government fiscal policies that hinder saving money and the need to live on credit cards to keep the basics of life paid for each month.

When inflation is stealing the value of your money, no wage can compete with government theft, all before taxes.  Add in tax laws that are counter-productive, job-killing, and increase the cost of doing business, and the job you have becomes tenuous at best.  Add in the hidden debts the government is trying to hide, and nobody in America is making money.

QuestionWhat about those who consider themselves “Rich?”

The same problems you are having with inflation are the same problems everyone is having with inflation.  Let’s go back to my $1000 that became $850 through six months of inflation.  We all spend the same money, and inflation is killing everyone’s dollar equally!  Hence, I beg you, do not allow the media hype about rich versus poor to derail the point.  Inflation and monetized debt are killing the US Dollar, which is why so many foreign investors have dumped their US Debt instruments for safer financial shores.

While some people have more financial resiliency than others, everyone’s dollar is dropping in value.  Inflation and low financial resiliency mean making budget cuts to charities, hiring someone to maintain a lawn, and a host of other ways and means American’s share our money.  It can mean turning off services, weighing how much fuel can be used, and a host of other belt-tightening decisions.  All things the government should first be doing, and they refuse.24+ Inspirational Quotes For Unemployed - Audi Quote

Yours and my liberty and freedoms depend upon stable economic policy, firm fiscal policies, and elected officials scrutinizing the government for waste, fraud, and abuse.  Yet, what do we regularly find; fraud, waste, and abuse!  The Department of Defense has lost multiple trillions of dollars; not a single politician is asking for an audit and an explanation or is willing to withhold additional appropriations until the lost money is accounted for.  The Department of Veterans Affairs continues to mismanage funds, misappropriate funds, and waste money like overripe fruit; yet, still, we have zero interest from the politicians elected to scrutinize government.

I repeat Peter Schiff, only for emphasis:

The government doesn’t have money that it doesn’t take. Any dollar that the government spends is a dollar that the private sector can’t spend or can’t invest. The government has to take money out of the economy before it can put it back in. Nobody seems to understand this basic point because they see the Fed creating money, and they think, well, we just print money. They don’t realize that when they print money, they destroy the value of the money that’s already there. So, they’re not adding new purchasing power. They’re just redistributing it” [emphasis mine].

Inflation Quotes | Inflation Sayings | Inflation Picture Quotes - Page 2In redistributing your money, the government has proven they are the problem, and the solution begins locally!  Change your mayor, city council, county board, school boards, and every other elected official.  Getting the local governments in fiscal shape allows state governments to begin practicing fiscal health and sanity.  Then, we put people into the Federal Office more interested in scrutinizing the government than in writing endless laws and abdicating their legislative role to the executive bureaucrats and the judicial branch.

Knowledge Check!The budget put forth by President Biden is the height of insane, and I have only covered less than 1/10th of the budget problems in this article.  Granted, I covered the most egregious problem, but the fact that the legislative branch is even negotiating a compromise is beyond insanity and borders on criminal negligence!  We, each citizen of a representative government, must stand and tell our representatives NO MORE!  No more fiscal insanity, borrowing to buy votes, entering into debt obligations that make captives of unborn millions of other people.  No more will we allow them to buy votes to maintain power.  End the financial abuse of the taxpayer; your wallet will thank you!

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

The Proper and Improper Role of Government – Part 3

Bait & SwitchThere many ideas I embraced as a child that brings me short mentally and cause some discomfort.  The biggest of these was the support of labor unions.  As a kid, I thought labor unions were the best thing since sliced bread.  I learned in K-12 how the labor unions had ended child labor, gave us weekends, Federal holidays, and the 8-hour day, among other tremendous and notable accomplishments.  Until I lost my job to a labor union guy who took four times as long to complete work, complained horribly and sent me to the unemployment line.  I never understood what he had to complain about, times were hard, and I lost a good job to a labor union member.

ApathyBecause of the hold, the Labor Unions have on government, the line between government policy and labor union influence is generally so blurred that confusion is bred as to why things work the way they work in government.  Unfortunately, every country with a representative government and labor unions has the same problem.  Labor unions are entirely Marxist in their ideology, but to keep the masses happy, instead of communism, we get rampant socialism instead.  J. T. Murphy writes specifically eloquently on the ties between socialism and the labor unions.  Frankly, I have never understood how a labor person can swear they love freedom and America while supporting tooth and nail their labor unions’ Marxist and socialist agendas.

Inflation and Socialism, plus the Captivity of Debt

Public Employment Retirement Costs Are At "Tipping Point"Public-sector labor unions are the number one reason many states in America have seen their credit ratings drop.  The debt of the retirement packages and pensions is a millstone around every state’s neck.  This is an absolute reality proven time and time again.  The pension crisis is so large that Forbes keeps coming back to this topic several times a year.  If you would like a primer on the public pension crisis, go here.  The public pension crisis is mentioned solely because it remains the number one budget item for too many states.  With that much money owed, the debt runs the state’s fiscal decisions, not people, and brings up the captivity of debt.

Look up the principle of “usury” in historical texts, and you find usury occurs when interest is charged on money borrowed, which creates captivity.  TheWalletcoach.com eloquently details how debt is captivity.  The oldest of historical texts, the Old Testament, is vehemently against charging usury of brothers and family members, but strangers being in debt captivity was okay.  Today, the confinement of debt, specifically the public pensions, leads the politicians like a goat to slaughter. But, unfortunately, none of the politicians can find the time to formulate a plan, gather their fellow politicians, and fix the problem.  Debt, to the height of the public pension crisis, creates inflation and leads to socialism, as the government runs out of other people’s money to pay for the failures of previous politicians to be fiscally literate and fiscally responsible.  Add in the labor unions’ consistent sticky hands, and the local and state governments are in deep trouble.  Add in the Federal Government’s debt obligations, and money trouble is a catastrophe!  Please note that catastrophe is not an “If” or “when;” it is a current issue right now!National Debt Graph + Bush-Reagan Voodoo Video - zFacts

16 March 2019, Tom Del Beccaro, writing an opinion piece for Fox News, produced the greatest missive I have ever seen tying the principles of debt captivity to inflation and governments becoming socialized!  Historically speaking, Mr. Del Beccaro is 100% correct that the socialization of Greece and the fall of the Roman Republic are both tied to government debts. However, the Founding Fathers in America knew history, were literate, and they feared what would happen to this Free Republic (if we can keep it) when the government is allowed to rack up debts!  Every single publication I have on the Founding Fathers, and the Founding of America, come back to the bondage of debt and the problems with government debt. However, when the population demands “free benefits” from the government and uses their voting power to elect only those who keep the “Gravy Train” coming, socialism has been achieved in all but name!Government Largess

That fact alone should scare every member of the American Experiment into correcting their government!  Yet, what do we find, the exact opposite!  Frightening does not entirely cover my feelings here!

Socialism, Taxes, and The Workplace

Gravy TrainReturning to the pattern discussed on 16 March 2019, Tom Del Beccaro, writing an opinion piece for Fox News, discussed how taxes are a knee-jerk reaction to “keep that gravy train running.”  Therein lay the root causes for how socialism has been promoted in the workplace and how high taxes will eventually go!  I have written about this relationship for a long time, but please allow me to refresh memories.

In the United States, the Government Agency tasked with employment, employment laws, and employer responsibilities is not the National Labor Relations Board (NLRB); by statute, it is the Department of Internal Revenue Service (IRS).  The NLRB is only there to handle labor unions, labor union growth, and labor union law.  The IRS defines what an employee is vs. a contractor or knowledge vendor.  Worse, the IRS rigidly protects this relationship as a key to preserving the government’s interest (tax dollars) in keeping socialism in the workplace.  Some of my earliest articles deal with these exact principles and the socialized employee structures in which each worker and business is demanded to participate.Gravy Train 2

Upset with how your employer treats you, both on and off the employer’s property, there is only one place to put the blame, the IRS.  The IRS states the employer can invade your privacy, in your home, as an extension of “Risk Control” because your employer agreed to the IRS’s demands to pay taxes.  Your rights, freedoms, and liberties are curtailed, culled, and clipped in the workplace because the IRS demands the employer play ball with them, and your liberties are the price you pay for a paycheck.  Every time I see a labor union complaining about how the employer treats them, I want to shake the stuffing out of the leaders, for it is not the employer but the IRS that should be struck down and disbanded!  Yet, the NLRB will always side against the employer, and the labor union, a Marxist organization, wins, the IRS wins, and the employer and non-union employees lose. As a result, socialism in America becomes more powerful and influential.

Socialism and Mothers in the Workplace

As a means to improve the strength of the family in society, several religious organizations would love to see mothers provided the power to stay home.  Yet, socialism, as a fundamental operating principle, that all able bodied people must support the state, K-12 educators can rear kids, and the government acquires drones who do as they are told.  High fuel prices are no longer discussed on the nightly news because the government needs every able-bodied and disabled person working and asked the media to find something else to discuss.Plato 2

Why does the current president keep ducking questions about inflation; because the higher inflation goes, the higher prices are demanded, and the more people will rely upon the “Government Gravy Train.”  Unfunded liabilities (kited checks) are acceptable to socialists as a means of controlling the populace and keeping people in the game.  Higher taxes from inflation are good when it controls those in society who would raise their heads and ask questions under the thumb of totalitarian control.  If mothers returned home, how fast would demands for improved schools become the big issue in local politics, again?Gravy Train 3

My wife, a single mother due to divorce, while raising her two kids, relates stories of gathering mothers in Seattle to fight the school board and win.  Bewitched (1964-1972), the TV show reflects several times where Samantha got involved and changed local politics.  It used to be expected in local politics for mothers to have the ultimate last word on worthy politicians for whom to vote.  Yet, by increasing prices, mothers had to go to work.  It is now standard for politicians to get elected whose only desire is to keep socialism going, stealing liberties and freedoms while pontificating that the other party is at fault for your suffering.

Knowledge Check!I repeat, only for emphasis, the IRS remains the most influential, nefarious, and deadly threat to America.  America, what I am proposing will be a culture shock. It will turn many people onto their heads. It will appear anathema, all because we, the citizens, have watched the government become stronger and us the citizens weaker for so many generations.  But, the reality remains, we own the government, the government has been abusing us, and the time of big government to solve all the problems from a broken shoelace to fixing the weather has to end!  We must believe, gather knowledge, and act as a conjoined whole to make the necessary changes.

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

Division vs. Unity, Labels, and Big Tech

Angry Wet ChickenLast week, while scrubbing my SPAM folder on Gmail, I discovered that Google had arbitrarily been sending several emails containing news of a more conservative slant straight to SPAM.  Why would Google arbitrarily act in a manner to thwart the delivery of email?  A topic for discussion later in this article.

America faces a huge test right now; division is costing us opportunity, liberty, freedom, and potential.  Worse, it will eventually destroy the United States of America, a free Republic (if we can keep it).  What is this nefarious foe; a lack of unity.  The political parties have become so divisive that families are being torn asunder over something as petty as which political party to embrace.  Religion, lifestyle choices, employment opportunities, and so much more are being used to erode America at the family foundation.quote-mans-inhumanity

Socialsolutions.com reports some disturbing statistics from 2018.  However, the COVID-Farrago has seen these numbers only increase, and the numbers for 2020 are still not compiled and updated.  ACLEDdata.com provides some of the statistics from 2020, and the political violence inflicted on families is stunning!  Where does the blame lay for all this violence, property damage, public property destruction, and the host of terrorism committed in George Floyd’s name; the US President, Vice President, Speakers of the House and Senate, the governors, the mayors, and state legislators.

Bait & SwitchI am not excusing individual accountability for specific acts, but every silent politician in America has condoned the divisive behavior.  The corporate media have fed the violence and division, and the press has even been videoed participating in the violence.  My wife stated something, “The problems have become too great for any single individual to make a difference.”  I vociferously disagreed then and state unequivocally now that good is still in the majority of America and Americans and that one individual who declares enough is enough can make a world of difference!

Charmaine Yoest, Jack Spencer, John G. Malcolm, and James Carafano, writing for The Daily Signal, published an article on 11 June 2021 worthy of reading.  The twelve points they outlined are listed below, and additional commentary is mine.

      1. Protect Our Vote – I cannot stress this enough. The November 2020 elections, like all elections since we allowed computers into the mix, were fraught with illegal and illicit behaviors and reflects malfeasance towards the voter. However, that problem is specifically targeted at the local political leaders and judges who refused to allow time for transparent investigations.  President Biden and his administration are definitely not helping the situation.  Getting the Federal Government out of elections is the pre-eminent step we need to return State Rights to State Governments.President Adams
      2. Secure Our Border – America was built on defensible borders, and neglecting those borders is the height of Treason! Webster defines Treason as “The betrayal of allegiance toward one’s own country, especially by committing hostile acts against it or aiding its enemies in committing such acts.”  Hostile acts can be refusing to act when problems arise if the failure to act benefits you personally.  The continued flaunting of National Security on America’s borders (North and South) is treasonous, and those committing these actions of inaction need to be held accountable before the bar of law!photo_slideshow_max
      3. Stop Adding Debt – Of all the points raised in this Daily Signal article, this point is second most important, only behind defensible borders! Inflation must be fought with smarter monetary policies.  Want a good reference for smarter economic policies; Mark Skidmore is a leading economist in the field of government economics and is almost entirely unknown unless you have a hobby in following government monetary policies.  Dr. Skidmore has worked with a highly intelligent team of economists to try and find more than $94 Trillion in lost money in the Federal Government.  Before America spends another dime, a full and transparent audit must be completed, all the books opened, and criminal charges brought!Plato 2
      4. Stand Up To China – One of the things I particularly loved about President Trump, and honestly, there weren’t very many, was his hard stance against China! I applaud President Trump’s efforts at leading America while surrounded by enemies foreign and predominantly domestic!  But to take a hardline stance against China is still desperately needed; yet, what do we see in the capitols of America, kowtowing to China by America’s elected leaders.  ENOUGH!  Stop committing Treason with a dedicated foreign enemy!Apathy
      5. Do NOT Raise Taxes – [Emphasis Mine] You cannot spend yourself out of debt, and you cannot tax your populace for personal benefits to remain elected by buying votes through forced taxation and government largess! America has never had an income problem; we have always had a spending problem!  Debt is captivity, captivity to our enemies is Treason, and those committing Treason need to be held accountable before the law.  From the bureaucrat to the politician, every single one needs to be held responsible for what they have and have not done in properly honoring the funds delivered to the Government through forced taxation!Life Valued
      6. Stop the woke! – From Critical Race Theory to wave upon wave of identity politics, America is being divided so as to be more easily conquered. If you cannot see how dangerous these lines of division are, we need to talk about waking up mentally and recognizing the 800# Gorilla in the room!  You do not need to have special identity laws for every single invented identity, and going down that slippery slope produces nothing but harm, chaos, and destruction.  Ask Caesar from Ancient Rome how identity politics worked in Ancient Rome.  History relates what happens at the end of the identity politics games, and the results are never beneficial!Courage
      7. Cut Red Tape – Another one of those things I applaud President Trump for doing was cutting the Federal Government Red Tape to free the American worker, businesses, and manufacturing. Want a startling statistic; besides inflation, the only other driver of higher costs is government red tape.  I learned this as a kid when I saw the taxes included in a gallon of gas.  I asked if the same was true of all prices and my parents had no idea.  Thus began my hobby of understanding and tracking economics!  But, do not take my word for it; look up the cost of bread from 1940 to today, and look at how much government red tape has influenced just a loaf of bread.  We, the proper owners of the Government in America, must regain the reigns from the asylum patients and cut government red tape!The Duty of Americans
      8. Help Us Sleep Safe at Night – Talk about a conjoined issue with defensible borders! Tell me, why are portions of America’s National Parks just as deadly as Northern Mexico?  I have read first-hand accounts of scouts stumbling upon drug manufacturing facilities, landmines and guerilla war tactics employed to dissuade investigation, and the armed terrorists living in America’s National Parks to produce drugs for the American markets.  Before Big-Tech thought this would blacken certain political parties’ chances at re-election or election, many of those stories were scrubbed from the Internet.  Tell me, do you sleep safer at night right now than you did three years ago?  My home security costs have skyrocketed, 24/7 surveillance makes me feel like a prisoner in my own home.  Yet, the elected officials have blocked all attempts at using the military to root out the terrorists and gangs from America’s National parks and defend the US Borders.Plato 3
      9. Stop Big-Tech! – Have you noticed the censorship occurring across the Internet? How one day you can find stories on a specific topic and the next you cannot locate those same sources?  Perfect example, in February 2020, I could find Dr. Fauci’s research on Coronaviruses and many other research topics.  Now, I can find nothing of those early research projects that proved Dr. Fauci is either lying in his research then or lying to the public now.  I have emails being sent arbitrarily to SPAM if it is content Google opposes politically.  I have witnessed LinkedIn, Twitter, Facebook, and other social media restrict access, shut down accounts, and destroy people’s livelihoods, all because of content the Big-Tech does not find politically palatable.  I am done being censored, censured, and prohibited, all because some tech company does not like the truth!PACT_model
      10. Deliver School Choice – Long have I written that K-12 education is sexually grooming and abusing America’s children instead of teaching them how to read, write, and think logically through arithmetics. K-12 education in America, since the 1860s, has been purposefully designed not to teach students how to read because a literate society knows freedoms and liberties, and an illiterate society can be controlled.  Hence, I disagree with these authors; even school choice cannot save America’s youth from abuse at the hands of teachers and bureaucrats embedded in the education system.  The individual states need to be freed from the Federal Department of Education.  Then, the states need to revamp what education means and begin to throw out the bureaucrats and increase the abilities of teachers to lead and instruct in their classrooms!Patriotism
      11. Empower Patients, NOT Government – [Emphasis Mine] Being a disabled veteran, having my medical care through the VA, I could not agree more that the Government needs to be ripped out of healthcare and the doctor-patient relationship. However, we also need the litigious nature of society to be corrected.  The cost of malpractice insurance is so exceedingly prohibitive that doctors cannot practice independently, and the corporatization of medicine has been growing twice the government intrusion rate!  Thus, the red tape needs to be removed, government intrusion needs to be clipped, and people looking at the judicial branch as a gold mine need to be shunted and stopped!Social Justice Warrior 2
      12. Make Our Streets Safe! – Again, we find an issue with root causes behind defensible borders, military action to fight the drug trade, and the overhaul of the criminal justice system. When the criminal has more rights and protections than the victims, justice is not served!  When sentences do not include community service to repair damage to a society, justice for the community is not served.  When jail has more privileges than not being incarcerated, the criminal justice system is everything but bringing justice to criminals!  We have enough trash, graffiti, weeds, and other community service work needing to be performed for three armies of criminals.  Get them on this service instead of sitting all day.  Worse, all those “peaceful protestors,” a.k.a domestic terrorists, need to be out repairing the damage to the communities they wrought!

Knowledge Check!Unity is a precious resource America has always enjoyed in abundance, and the political enemies of America despise America for the unity that has always been here.  We might fight like brothers amongst ourselves, we might have ancient grudges and family disputes that spill over state lines, but we are inherently a unified people.  Stop allowing the media to preach division, hate, and identity politics.  Stop allowing those elected as representatives to divide you and your family.  America, we have a choice before us, unite and live, or divide and fall.  All of the changes discussed stem from a simple point, will we choose to unite and live or allow division to separate us to be conquered as unpitied sacrifices in a contemptible struggle?

Image - Eagle & FlagJoin me!  Join with your neighbors and family members!  Let us for a community of responsible and intelligent citizens, who are informed, and active in halting the government abuses at every turn!  As a united front, we can win!  Believe that, and we are halfway to restoring America to the ”Shining city on a hill!”

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

NO MORE BS: Understanding Money – Shifting the Paradigm on Money

LookDo you understand money?  Honestly, is how money is created, used, and tracked understandable or a complete mystery?  I have advocated for economics to be taught in high school to understand the actions of government since I was in high school.  I was forced to take a class to write checks, balance a checkbook, and other simple economic topics in US Army Basic Training.  I thought I knew how money worked after this class, but only later realized I knew enough to get into trouble with money, but not enough to fix the problems I had gotten myself into.  I was mid-way through my MBA when I finally took a class on money, economics, and how money works.

I have asked other adults and high school students what they think about money and remain aghast that basic economics is not taught in K-12 education.  There is no reason for fiscal illiteracy in America; yet, fiscal illiteracy is evident in the politicians elected, the lobbyists pushing agendas, and how American politicians of all levels understand money.  The following is a brief attempt to clear some of the confusion regarding money.

Green money is cash.

Dane-GeldGreen money is the dollars and cents in a bank account or your pocket and is quickly spent.  Green money is often called liquid money or liquid assets, liquid because the holder is presumed the owner, owns it, and can spend it freely any way he wishes.  Possession is nine-tenths of the law where liquid assets are concerned.  One of the first lessons most of us learned growing up was if you wanted to buy something and your pocket was empty, you went without.  Liquid assets are cash, green money and are available to be spent in any way the holder chooses.

Non-liquid assets are considered green money due to their sale; this is why a house, a car, a boat, and other such items are considered assets, investments, and opens the door to depreciation or money loss where an asset is concerned.  The sale of the asset provides the opportunity to turn a non-liquid asset into a liquid asset.  However, since the asset is often employed as collateral for a loan, the sale of that asset means the loan holder is paid first from the sale.  If the resale value is insufficient to cover the full loan owed, the loan, which is red money, can still be collected; this process is why red money is so important to understand.

Red money is debt.

Government Largess 3Historically, if a debt could not be paid, the debtor’s blood was allowed to be spilled; hence debt is red money.  Red money always comes with a penalty called interest.  Interest is green money turned red to return the profit to those who lent the initial funds or principle.  That debt, be it a loan, a credit card, or another debt model, remains a burden to the borrower, continues to accumulate interest, and can be called due at any moment in time.  While some laws protect the borrower from excessive interest rates, it remains essential to know about and be cognizant of the interest rate trap.  The legalese on a contract to launch a debt is important to understand, especially where prepayment penalties, late payments, and the ability to call the note due are concerned.

The interest rate trap comes in several forms.  While in the US Navy, stationed in Norfolk, Virginia, a sailor buddy bought a beautiful car for $4000 with a 45% interest rate.  He put $1500 in green money down, so the full loan amount, principal, and interest, for 60-months were $7805.49, including the sales tax.  Later that month, when the car was stolen, the insurance company valued the vehicle at only $1000, leaving the sailor to pay $6805.49 immediately.  This is one type of interest rate trap; another comes from Payday Loans.  Borrow your next paycheck today, get the money today, and pay your paycheck back during the next 36-months at an interest rate between 30-60%.  By the time the payday loan is paid off, more than four separate paychecks will have been paid to cover a single paycheck loan, provided all the payments have been made on time and as quickly as possible.

Welfare State BeginsWhile paying off this loan, you lose your job.  You can lose your car because your car is sometimes used as collateral for your payday loan.  If the resale value is insufficient, you lose your car, you lost your job, and now you still owe a considerable sum that gains interest.  Red money is dangerous; like Damocles’ sword, the danger hangs by a tiny thread above the borrower; one wrong move and the sword falls.  Debt, red money can be helpful; but, careful planning and budgeting are required before entering into debt obligations.  Always it is better to save and budget green money or obtain investors before contemplating debt.

Black money is dead money.

Consider the person who takes green money and places those dollars and cents under a mattress or coffee can in their home.  The cash is out of circulation, is not valuable enough to collect, and no one is benefiting from the money through interest.  Black money can be created in other ways that will be explored later in this article.

Potential Money – Blue Money

blue-moneyThe next type of money is blue money, also referred to as potential money.  Consider a hammer. The hammer might cost $20.00 in green money to buy and bring home.  In the hands of a trained construction worker, a $20.00 hammer, over the course of the hammer’s useful working life, has the potential to earn thousands of dollars in green money for the construction worker.  In the hands of an inexperienced worker, the hammer has the potential to cost thousands of dollars in green money through waste, destruction, and learning.  Training a person to improve their performance might cost $300 in green money; but, if that employee can improve his performance on the job, potentially millions of dollars can come into the company because of the training provided.

Money is created when it is borrowed, and interest is paid on the loan.  For example, Jack has an extra $500 (green money).  He gives this money to his friend Joe in the form of a loan (red money).  Joe takes the loan, adds to his business potential (blue money), and through increased profits, can pay Jack his $500 loan plus the interest of $300.  Hence, $300 (green money) is created as profits for Jack.  While a simple analogy, do the types of money become more apparent?

Welfare State EndsJoe’s loan to Jack showed on Joe’s books as red money until the loan and interest were paid.  During this time, Joe was also making green money, or profits sufficient to pay his workforce, his other obligations, and still retain adequate to pay himself.  Small business owners are not paid until everyone else is paid.  It is not uncommon for small business owners to be scraping by on the smallest margins because all their non-liquid assets are locked up in loans to keep the business afloat.  When poor business practices begin risking inventory and equipment and shareholder investments are added into the equation, is it any wonder why small businesses struggle.

quote-mans-inhumanityMoney is also created when saved in the various saving tools offered by banks.  The diligent saver can save $40 a week until he or she is 65 years of age and potentially have millions in the bank for retirement.  Why, because the bank will pay interest to the saver from the interest collected on the loans the bank makes with the green money invested from the savings account.  Many different savings tools can be considered non-liquid assets because of the agreements made between the saver and the bank.  Generally, the longer the bank’s contract to hold the savings money, the higher the interest rate paid as the bank can schedule payments and loan the same dollars more efficiently when the saver’s funds are expected to be in the bank for a more extended period.

quote-mans-inhumanity-2Often Federal treasury departments of governments create money by printing more or larger bills.  The problem with printing more money is one of surplus, which begins to increase interest rates and decrease the value of the green money held by citizens participating in the economy.  Consider that if the only way to create money is to work money through lending, improving business, etc., and then printing only makes it harder to put money to work.  Too much money on the market creates negatives; negatives include lower dollar value, which makes items cost more and increases interest rates, making borrowing costs rise, and inflation begins to increase prices for goods in the economy.  More importantly, except for necessities, producers’ willingness to spend money stops; these are typical cause-and-effect actions.  A long enough period of decreased desire to spend money and an economic downturn is initiated.

Blue Money BurningState, City, County, Town, municipal governments are even more pernicious with their plots and plans.  On the local government level, money cannot be printed.  Hence, debt is entered into, and municipal bonds are sold to create money in the private sector, which is then paid to the government in increased taxes, but the money lent to the local government was already spent.  One truth discovered about government, when taxes are increased, money is asked of the voters to borrow.  The truth is, the government body asking for more has already spent the increase, spent the budget, and usually spent twice as much as they are asking the voters to allocate.  Consider special elections for increasing taxes; the money being asked for has been spent, the budget was spent, and now the voters are asked to pay for the special election cost to decide if the local government can spend some more money.  The increase being asked very often has been spent three to four times before the election is considered to ask for permission to enter larger amounts of debt in the public’s name.

Poor fiscal planning increases debt by decreasing the value of the original municipal bonds.  The government has to borrow more to get relatively close to the value of the first municipal bond sold.  Note, municipal bonds are considered a debt to the local government and as green money non-liquid assets to the purchaser; municipal bonds can be bought and sold on the private market.  Government focuses upon the holder of the most bonds; because elected leaders are focused upon the holders of the most bonds, citizens bear no weight in being heard.  Money talks!

Detective 4In several different locales, municipal bonds can be held as unseen debt or black money, also referred to as unfunded liabilities, kept on other books, not currently open to the public.  The monies owed are not considered red money because there is no plan by those in power to pay these debts; thus, the city’s debt could be significantly higher than reported.  Unfunded liabilities never have a plan for repayment by those in power.  Unfunded liabilities can be a mixture of many different debts (employee retirement, some municipal bond types, unpaid bills to local service providers, etc.).  The common denominator remains, there is no plan or money to repay this debt.  Thus, black money is created because there are no plans or money to meet these obligations.  The taxpayer remains on the hook for the principal and the interest of those unfunded liabilities.  Unfunded liabilities are hopes of current politicians on future prosperity, and sometimes, depending upon laws, unfunded liabilities are part of the government’s credit rating. Low credit ratings by the government increase taxes, the risk increases, making borrowing money more expensive, and the taxpayer generally has no idea how poor their municipal government’s credit rating.  Never forget, municipal government, many times includes the local school board.

ToolsWhile this explanation is elementary, the lessons contained are sufficient to protect the bottom-line, improve knowledge, and provide an opportunity for improving circumstances.  When bottom lines fail, before anything else, look to lost blue money as the cause.  When blue money is disregarded long enough, red money increases exponentially, and green money evaporates; this formula is set in stone.  Potential blue money is not elusive, but it takes keen observation to protect and grow.  Grow enough blue money, and green money multiplies exponentially.

Americans must start demanding fiscal literacy in the politicians running for office.  Americans must begin understanding the captivity they are in where the government spending is concerned.  Ask yourself, would your bank honor a post-dated check?  Why should the government be allowed to write a check the bank won’t allow you to write?  Can you spend 8-15 times your salary between paychecks and maintain your house, car, and other assets?  Of course not, so why should the government be allowed to do this on your tax dollars?

DutyFiscal literacy improves freedom and liberty.  Fiscal literacy is required to maintain the US Constitution and US Bill of Rights.  Budgets are not bad things for government to live on; in fact, the government should be the first exemplar of budgetary soundness and fiscally literate action.  A Liberty FIRST Culture will require fiscal sanity and fiscal restraints, a reduction in debt, and a payment plan for all unfunded liabilities.

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

NO MORE BS: Liberty First Culture – Awake and Arise

William Shakespeare, in “The Rape of Lucrece” (lines 211-214), states:

“What win I, if I gain the thing I seek?
A dream, a breath, a froth of fleeting joy.
Who buys a minute’s mirth to wail a week,
or sells eternity to get a toy?”

RememberConsider these lines for a moment, not as part of the greater work, but as a pattern to be laid over the actions of the politicians elected to office, who have sold liberty and freedom for “a toy.”  Those same politicians who will seek their personal gain as a “dream, a breath,” or a “fleeting joy” are the same politicians who will buy with your money mirth, happiness, and prosperity so that the rest of the country can wail, cry, and suffer.

At its founding, the Republic struggled to get out of debt caused by the Revolutionary War.  Through work, sacrifice, and determination, the captivity of debt was eventually canceled.  The debt was considered captivity and remains the antithesis of liberty.  Yet, everywhere we look, the politicians buy personal power, with the public’s money, for a minute of fleeting joy, while everyone else suffers for weeks and years on end.

Government Largess 2As a kid, I read a Newsweek or Time article on how long the National Debt would take to pay off.  I have never found this article again, which is a tragedy, for I would quote the source heavily.  However, since the debt has ballooned over the last four American Presidents, it would be safe to say that the article I read as a kid is “out of date.”  We find some troubling facts about debt’s captivity from the Foundation for Economic Education (FEE).

Consider the following, economics is not a hard and challenging topic, and I promise what is being offered is easy to follow.  Gross Domestic Product (GDP) is what the country earns as a paycheck.  Currently, what we owe on the national debt is 106 times greater than the GDP.  This means that with interest for the debt presently owed, America cannot produce enough to cover the payments for the fleeting joys enjoyed by her politicians.  Essentially, since America cannot produce more products for trade and sale, the ability to meet our debt obligations per paycheck has been wiped out, and we still owe more per paycheck than we earn.

ProblemsConsider what happened with Hurricane Katrina: hundreds and thousands of people were displaced, hundreds needed airlifts of food and water, thousands of homes were flooded, and Katrina’s recovery cost is still ongoing.  President Bush II took a political hit by the media, and the political left and their media lapdogs had a field day on the suffering and devastation during an American Natural disaster.  Would you be surprised if I told you the real culprits for failing to protect the citizens from harm properly was not the Federal or State government’s job?  Would you consider that the local authorities, even some of those who went to jail for embezzlement, were guilty of other crimes that have so far gone unpunished?

Shortly after Hurricane Katrina, several states suffered major flooding.  Iowa was one of these states.  The flooding in Iowa was just as traumatic and costly, but no one ever hears a word about this flooding unless you follow natural disasters as a hobby.  Why the difference between Iowa and Louisiana?  The response by the local government.  The local government’s planning and preparation and the lack of dependence upon the Federal Government to “swoop in and save the day.”

Duty 3The government is not a superhero.  The government is not the answer to local problems, emergencies, and natural disasters.  Your neighbors, friends, and families are the superheroes.  That is where one looks in times of trouble, not the government!

I learned this lesson one Sunday as a child of six or seven.  Salt Lake City had enjoyed a tremendous amount of snowfall that winter, and spring floods came with a vengeance.  A gentleman walked into the chapel where we were meeting, asked for the congregation’s attention, and called on every able body male to man shovels and help sandbag streets to steer the floods.  The Jordan River overflowed into my school, canceling classes.  For weeks on end, every able man from 12 to 99 spent countless hours volunteering to work on the dikes, doing extra hours to cover the shift of a volunteer on the flood project, and I do not know how many meals were donated to feed the workers.  I know Salt Lake faced significant flooding, and I know the community was stronger for the local action, rather than waiting for any State or Federal Government protection.

Iowa faced the floods, the communities held the floodwaters in check, and the communities had help from unaffected areas to steer the floods and recover after the flooding ended.  New Orleans counted on the government, and the damage is still being paid for, hurting the area and causing havoc.

LookAs a point of fact, everyone who thinks the US Government is the superhero must remember, the Federal Emergency Management Agency (FEMA) has the right to tell a state, No!  As in, No; the resources of the Federal Government will not arrive to help you.  No, the Federal Government will not be paying for this disaster.  No, the failure to prepare properly is not the problem of the Federal Government.  The Governor can activate the US Army National Guard, but if they do this, the State is on the hook for the full cost of mobilization, and if FEMA says No, then the State now has more budget problems than previously expected.

FEE reports that every time a politician has attempted to cut or reduce the government goodies, there has been ferocious outrage.  Ever try to tell a two-year-old child No!  Yet, the captivity of debt has now breached:

  • $68,400 per citizen
  • $183,000 per taxpayer
  • The Federal Government currently holds debts on $125 Trillion in unfunded loans.
      • Unfunded liabilities are what we ordinary people call check kiting.
      • There is no plan to pay for these liabilities.
      • There is no money to fund these liabilities.
      • There is no GDP available to fund these loans.
  • Want to know why you cannot obtain a reasonable interest rate on saving money, certificates of deposit (CDs), and other money-saving tools offered by banks. The National Debt!

The most troubling fact of all:

      • It would take the United States 713,470 years to pay down the national debt if we paid $1 per second of the year.

Detective 4How many future generations have been squandered by the purchase of a minute’s mirth by the politicians, the lobbyists, the media, and the government employees who implement the politicians’ policy in the Executive, Legislative, and Judicial branches of government?  A generation is 20 years.  Hence, it will require 35,673.5 generations to pay off the National Debt, if we started paying right now, at $1.00 per second, or roughly $86,400 per day (31,536,000 a year approximately), every day, for the next 713,470 years.  Many people will proclaim loudly that paying off that large debt is “impossible,” yet we will never know the freedom of being debt free as a nation if we do not begin.

I have heard economic postulants proclaim that debt is a good thing, but common sense tells us that being in debt is captivity, prison, to the interest, and the principal owed.  Debt is never an easy taskmaster, yet the government has helped millions of Americans be saddled with untold debts through student loans, housing loans, and other obligations to fund the politician’s minute of mirth.  There are smarter and more efficient ways to create wealth than through debt, and while somewhat slower, the methods are more effective and carry less risk while allowing liberty to thrive.

VirtueThe sad but undeniable truth is this, a “Liberty First Culture” must acknowledge the elephant in the room, the national debt, and the harsh taskmaster’s debt and interest.  During the Clinton years, the fiscal games only hurt America and the world, never balancing the budget or paying down the debt.  Liberty is a priceless commodity but is easily destroyed through debt.  Public debt can only be entered into by politicians; politicians feel they are immune from the taskmasters of debt and interest because they were elected.  This mental disconnect from the action and the consequence responsibility is the key to changing the discussion in national, State, and local capitals on publicly funded debts.  For the other sad and undeniable truth, the National Debt is just the beginning of the debt problems facing America.

Suppose you live in Illinois, California, New York, Maine, New Mexico, Washington, Oregon, Wisconsin, Michigan, West Virginia, or Virginia. In that case, your State has some of the worst problems where state debts exceed the state GDP, and those debts are killing your State.  There are cities like New York City, San Francisco, Los Angeles, Detroit, Chicago, etc. that have city debts equaling or exceeding the state debts.  This debt captivity is killing your wages, your future, and your city.  All because a politician, somewhere in time, regardless of the political party, purchased a toy with your liberty and told you this was a good thing.  Why are your roads and bridges crumbling beneath your feet and your cars; because the politicians borrowed from one hand to purchase a toy in the other hand and left unfunded loans as “IOUs.”  Do you have a state pension you have been counting on to retire; guess what?  There is no money in those funds either because of unfunded liabilities to purchase that minute of mirth.

LinkedIn ImageA “Liberty First Culture” requires the adults in the room sanction the politician, restrict the checkbook, and demand debts begin to be reported clearly, concisely, and coherently, include all unfunded liabilities, and then start planning a method to repay the debts even if it means shrinking the size of government.  Even if it means less nation-building outside America’s borders.  Even if it means ending the meddling, we do in other nations to instruct them on “gender equality” or other nonsense that does nothing but waste your tax dollars and my tax dollars.

Demand a “Liberty First Culture!” in every person running for political office!

 © 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

NO MORE BS: Literacy and Liberty

Gadsden FlagThere is a legal axiom that everyone should know and fear in the biblical sense, “Ignorance of the law is not a valid excuse.”  When I first heard this hypothesis, my initial thought was, “How totally bogus!!!”  As I have learned, as my literacy levels have climbed, and as my understanding has deepened, I understand the principle in this axiom more completely.  The principle is not to sow doubt and fear in a populace but to promote learning because liberty is both precious and easily removed.  As a point of reference, the preciousness and removal of liberty have been studied. Through their ignorance, those who are illiterate of the law are more susceptible to be disadvantaged by the law.

How did the housing bubble happen?

Sure, the government reduced regulations, played with interest rates, and created the problem.  Banking is a business, and the first rule of business is to return profits to the investors, so the banking industry dove headfirst into getting people into homes.  State governments helped fuel this problem with deregulation, tax breaks, and incentives, increasing their debt levels to invest in housing people.  I will fully support that everyone involved possessed altruistic motives: altruism, the belief in or practice of disinterested and selfless concern for others’ well-being.

Detective 2Except … research supports the conclusion that despite fairness doctrines written into laws, illiterates are more disadvantaged in legal dealings.  Never forget, functional illiteracy was a desire of Dewey in the late 1860s as a means of reducing the power, liberty, and freedom of populations through K-12 education.  We must start understanding the origins of the problem to empower and plot a working solution.  Academic research is purposefully vague and inconsistent on the lines of congruence between functional illiteracy and individual wealth and economic mobility, all while taking advantage of the inconsistencies where the law is concerned.

Stevens (1985) reviewed the data and found a relationship barrier, “the crudeness of the literacy/illiteracy measurements, and a finer distinction was required.”  The data he used was from the 1870s and showed that literacy barriers were dependent upon age; the older the person, the less likely they were to be literate and more likely to be taken advantage of by the law.  Does this sound familiar where the housing bubble was concerned?

Root Cause AnalysisJen Deaderick, writing for the National Bureau of Economic Research (NBER; 2018), provides vital insight into how hard and deeply the housing bubble affected lower-income people and minority populations.  One of the more brutal consequences of the housing bubble was the extreme credit card debt carried by lower-income minority populations and how these populations have never recovered to 2007 income levels.

Demos and NAACP co-authored a research report declaring how credit card debt in lower-income and minority households is seen as a “safety-net.”  While these populations are actively working to pay down their credit card debt, the credit card usage remains high, and the pay-down and usage cycle hinders wealth growth.  I have now asked this question of school boards in several states and with teachers in high schools, “Why is economics not taught in high school?  Especially how to budget money, creating money, money intelligence, etc.”  The answer is always the same, “That is a good idea, but there is no time or interest in teaching those uninteresting topics.”  I have found that teachers are some of the highest credit card users in the various professionals, far outstripping commissioned salespeople.

Returning to the premise that functional illiteracy, chiefly where finances and the law are concerned, sees a tremendous and disproportionate abuse of lower-income and minority people at the hands of contractual law.  According to the law hypothesis stated above, their illiteracy is their fault, and thus the abuse is their problem.  Yet, if a person’s illiteracy was purposefully inflicted upon them by, say government, who is responsible for the illiteracy?

Oops!I fully submit that after K-12 Education, a person is recognized as an adult, fully responsible for their actions or inactions based upon what they learned in school, to become a productive member of society.  I have learned and am still learning tough and difficult lessons regarding personal literacy and financial decisions, literacy and law, liberty and literacy, and much more.  Yet, I read, I try to expand my mind, I make choices and suffer or enjoy consequences based upon those choices.  I understand the process because I have wanted to know more.

Research on reading shows that a vast majority of Americans never read a book after high school, including those who go onto college.  Worse, many students in junior high and high school never read a book; but complete reading assignments using search topics and Google.  Why; because being literate is considered “nerdy,” “reading is difficult,” “reading is not intellectually challenging,” and the excuses run on ad nauseam and ad infinitum.  All of which has been the aim of the acolytes of Dewey and Wundt since the 1860s.

Stevens (1985) expressed an idea important to literacy and freedom.

It is obvious that if literacy skills are required to exercise voting rights, for example, the worth of liberty for the illiterate person is severely diminished.”  In the decisions of State v. Sweeney (1950) the Court argued for “equal opportunities under the law,” but added: “lt is not possible for constitutions or legislation to make all men equal in understanding, intelligence and education.”  State legislation tended in the direction of equality of education even to the point of “compelling the youth of our country to take advantage of these opportunities.” But the Court acknowledged that “in every phase of our social and civic life, the uneducated man is at a disadvantage.”

Detective 4Except the case can be made that the State, with the Federal Government’s aid, has created the uneducated person, purposefully to abuse a population for political power.  When teachers tell a student they cannot learn, need Ritalin, are dyslexic, as agents of the State, they are declaring the student’s potential—locking the student into a life of purposely being taken advantage of by contractual law and other forms of law.  Who gave the teachers the right to demand a student be placed on harmful drugs to exist in a modern classroom, the State.  Who gave teachers the authority to diagnose a student as “dyslexic,” the State.  Why were teachers granted this power; why was the power stripped from parents; because Dewey wanted to control populations through literacy ability.  Dewey considered a literate person a danger to society, following an unnatural god, and possessing the power of a tyrant because they knew their language and could express themselves.

My next younger brother, Steven, is an imaginative, brilliant, and incredible person.  But, he got frustrated when trying to learn; the more frustrated he got, the more unbearable to be around he became.  Years of being told to shut up, sit down, and pay attention, has left him a shell of a person.  Teachers actively refused to answer his questions because he has a problem correctly describing the question in words.  He does not have a learning disability.  His brain works differently from the rest of a classroom population.  When he found a teacher that could help him, that was the height of his education in K-12.  He was passed onto another teacher to “be their problem” until he dropped out of school in frustration.  Unfortunately, in my family, two other brothers followed the same pattern.  Three lives have been blighted and wasted because the teachers measured potential by poverty and failed to educate, the school boards refused to teach and educate, and the State supported the teachers and school board.

Theres moreHow often does this story repeat in your family?  How often does this story repeat in your school?  How often does it repeat in your community, state, and nation?  The short answer, “Too bloody often!”  These are the people to whom the law abuses, contracts are a noose around their necks, voting ballots are a blur, and who will never leave the captivity of illiteracy!

Would you, the audience reading this blog, be surprised to find yourself in the same category as my brothers?  Abused by contractual law, abused by other laws, held in captivity due to your limited education and poor literacy abilities.  I am not judging you or your potential; by merely reaching out to find information and reading this blog, you are trying, and I commend you for your efforts and will help your progress any way I can.  But, we all have been abused, seen our potential limited, and lost liberties and freedoms based solely upon the education received at the hands of the State.  Surprised; I was when I started researching these topics.  Now, I find myself feeling more like a soaked chicken with a raging case of hemorrhoids.

Scared Eyes!Your command of your language has been intentionally limited, and each successive year, it has been reduced.  For example, while insignificant, my knowledge of literature is greater than my sister’s, and her command of the language is magnitudes greater than my youngest brother.  Want an interesting experiment, next time you have multiple generations of your family around, ask them what words mean and how to use them in sentences.  You will find similar generational gaps in literacy, even if those family members do not read.

I met an incredible family in Northern Ohio, 18 kids born to the same husband/wife team.  When the younger kids need help with homework, they call a big brother or sister.  Dad is a construction worker, very skilled with his hands, brilliant in planning and carrying out projects, but never considered “worthy” of higher education.  Mom is well-read, intelligent, and a savvy thinker, but the school boards deemed her potential.  In both cases, the school board was exceedingly wrong, but the hold was too powerful to shake.  Their story is replicated, maybe not with as many kids, from Maine to Washington, from Florida to Montana, and every stop in between, and it remains abhorrent to me!

LookYour potential to learn is not governed by what a teacher or school board has determined.  Your potential is only limited by you and your choices.  If you know someone who struggles, please help them, for you will find that empowering a mind to learn is the most incredible feeling in the world!  To know you have brightened a mind to shake off the shackles of captivity gives you the confidence to improve your own understanding and to repeat the feat!  Please, help end the abuse of the law, through literacy which increases liberty and freedom!  Because we are all connected, increasing liberty and freedom for one person increases liberty and freedom for everyone.  The truth is apparent, “One raindrop raises the sea!”

Reference

Stevens, E. (1985). Literacy and the worth of liberty. Historical Social Research, 10(2), 65-81. https://doi.org/10.12759/hsr.10.1985.2.65-81

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the photos displayed.

Understanding Money: Shifting the Paradigm on Money

Several years ago, I spent a significant amount of time trying to explain the different types of money to a very inexperienced young man.  I was highly unsuccessful; so, I take this opportunity to explain various types of money and how they work in the scheme of things.  I hope this explanation helps others to not only understand their own money, but also to become more cognizant of how governments spend your tax money.

Green money is cash.  Green money is the dollars and cents in a bank account or your pocket and is easily spent.  Image result for images, green moneyGreen money is often called liquid money or liquid assets, liquid because the holder is presumed the owner, who is in possession of it and who can spend it freely any way he wishes.  Possession is nine-tenths of the law.  One of the first lessons most of us learned growing up was if you wanted to buy something and your pocket was empty you went without.  Liquid assets are cash, green money, and are available to be spent in any way the holder chooses.

Non-liquid assets are consideImage result for images, house, car, boatred green money as a result of their sale; this is why a house, a car, a boat, and other such items are considered assets.  The sale of the asset provides the opportunity to turn a non-liquid asset into a liquid asset.  However, since many times the asset is employed as collateral for a loan, the sale of that asset means the loan holder is paid first from the sale.  If the resale value is insufficient to cover the full loan owed, the loan, which is red money, can still be collected; this process is why red money is so important to understand.

Red money is debt.  Red money always comes with a penalty called interest.  Interest is green money turned red to return the profit to those who lent the initial funds or principle.  That debt, be it a loan, a credit card, or other debt model, remainImage result for images, red debt traps a burden to the borrower, continues to accumulate interest, and can be called due at any moment in time.  While some laws protect the borrower from excessive interest rates, it remains important to know about and be cognizant of the interest rate trap.

The interest rate trap comes in several forms.  While in the US Navy, stationed in Norfolk, Virginia, a sailor buddy bought a beautiful car for $4000 with a 45% interest rate.  He put $1500 in green money down, so the full loan amount, principle and interest, for 60-months was $7805.49, including the sales tax.  When the car was stolen, later that month, the insurance company valued the car at only $1000, leaving the sailor to pay immediately $6805.49.  This is one type of interest rate trap; another comes from Payday Loans.  Borrow your next paycheck today, get the money today, and pay your paycheck back during the next 36-months at an interest rate between 30-60%.  By the time the payday loan is paid off, more than four separate paychecks to cover a single paycheck loan will have been invested provided payments have been made on time and as quickly as possible.

While paying off this loan, you lose your job.  You can lose your car as well because your car is sometimes used to insure your payday loan.  If the resale value is insufficient, you lose your car, you lost your job, and now you still owe a considerable sum that gains interest.  Red money is dangerous; like the sword of Damocles, the danger hangs by a tiny thread above the borrower; one wrong move and the sword falls.  Debt, red money, can be helpful; but, careful planning and budgeting are required before entering into debt obligations.  Always it is better to save and budget green money, or obtain investors, before contemplating debt.

Black money is dead Image result for images, black moneymoney.  Consider the person who takes green money and places those dollars and cents under a mattress or in a coffee can in their home.  The cash is out of circulation, is not valuable enough to collect, and no one is benefiting from the money through interest.  Black money can be created in other ways that will be explored later in this article.

The next type of money is blue money, also referred to as potential money.  Consider a hammer. The hammer might cost $20.00 in green money to buy and bring home.  In the hands of a trained construction worker, a $20.00 hammer, over the course of the hammer’s effective working life, has the potential to earn thousands of dollars in green money for the construction worker.  Image result for images, blue dollarsIn the hands of an inexperienced worker, the hammer has the potential to cost thousands of dollars in green money.  Training a person to improve their performance might cost $300 in green money; but, if that employee is able to improve his performance on the job, potentially millions of dollars are able to come into the company because of the training.

Money is created when it is borrowed and interest is paid on the loan.  For example, Jack has an extra $500 (green money).  He gives this money to his friend Joe in the form of a loan (red money).  Joe takes the loan, adds to his business potential (blue money), and through increased profits is able to pay Jack his $500 loan plus the interest of $300.  Hence, $300 (green money) is created as profits for Jack.  While a simple analogy, understanding money should be simple.

Joe’s loan to Jack showed on Joe’s books as red money until the loan and interest were paid.  During this time, Joe was also making green money, or profits sufficient to pay his workforce, his other obligations, and still retain sufficient to pay himself.  Small business owners are not paid until everyone else is paid, and it is not uncommon for small business owners to be scraping by on the smallest margins because all their non-liquid assets are locked up in loans to keep the business afloat.  When poor business practices begin risking inventory and equipment and shareholder investments are added into the equation, is it any wonder why small businesses struggle.

Money is also created when saved in the various saving tools offered by banks.  The diligent saver can save $40 a week until he or she is 65 years of age and potentially have millions in the bank for retirement.  Why, because the bank will pay interest to the saver from the interest collected on the loans the bank makes with the green money invested.  Many different savings tools can be considered as non-liquid assets because of the agreements made between the saver and the bank.  Generally, the longer the agreement for the bank to hold the money, the higher the interest rate paid as the bank can schedule payments and loan the same dollars more easily when the money of the saver is scheduled to be in the bank for a longer period of time.

Often Federal treasury departments of governments create money by printing more or larger bills.  The problem with printing more money is one of surplus, which begins to increase interest rates and decrease value.  Consider for a moment, if the only way to create money is to work money through lending, improving business, etc., then printing only makes harder putting money to work.  Too much money on the market creates negatives; negatives include lower dollar value, which makes items cost more, and increased interest rates, which makes borrowing costs increase.  More importantly, except for necessities, the willingness of producers to spend money stops.  These are normal cause and effect actions.  A long enough period of decreased willingness to spend money and an economic downturn is initiated.

State, City, County, Town, municipal governments are even more pernicious with their plots and plans.  On the local government level, money cannot be printed; hence, debt is entered into and municipal bonds are sold to create money in the private sector, which is then paid to the government in increased taxes, but the money lent to the local government was already spent.  One truth discovered about government, when taxes are increased, money is asked of the voters to borrow.  The truth is, the government body asking for more has already spent the increase, spent the budget, and usually spent twice as much as they are asking the voters to allocate.  Consider special elections for increasing taxes, the money being asked for has been spent, the budget was spent, and now the voters are asked to pay for the cost of the special election.  Many times, the increase being asked for has been spent three to four times before the election is even considered.

Poor fiscal planning increases debt by decreasing the value of the original municipal bonds, and the government has to borrow more to get relatively close to the value of the first municipal bond sold.  Note, municipal bonds are considered as debt to the local government and as green money non-liquid assets to the purchaser; municipal bonds are able to be bought and sold on the private market.  Government focuses upon the holder of the most bonds; because elected leaders are focused upon the holders of the most bonds, citizens bear no weight in being heard.  Money talks!

Municipal bonds, in several different locales, can be held as unseen debt, or black money kept on other books, not currently open to the public.  The monies owed are not considered red money, because there is no plan by those in power to pay these debts; thus, the amount of a city’s debt could be significantly higher than reported.  This is called an unfunded liability.  Unfunded liabilities never have a plan for repayment by those in power.  Unfunded liabilities can be a mixture of a lot of different debts (employee retirement, some municipal bond types, unpaid bills to local service providers, etc.), but the common denominator remains.  No plan is in place to meet that obligation and no budget item covers these debts; thus, black money increases.  Unfunded liabilities are hopes of current politicians on future prosperity, and sometimes, depending upon laws, unfunded liabilities are part of the government’s credit rating. Whether it is, the debt does not go anywhere, might or might not accrue interest, and always is hidden from the taxpayer, who is responsible for paying the bills.

While this explanation is very basic, the lessons contained are sufficient to protect the Image result for images, blue dollarsbottom-line, improve knowledge, and provide opportunity for improving circumstances.  Some key ending points when bottom lines are failing include:  before anything else, look to lost blue money as the cause.  The more blue money is disregarded is exponentially equal to red money increases, and green money evaporation; this formula is set in stone.  Potential blue money is not elusive, but it takes keen observation to protect and grow.  Grow enough blue money and green money multiplies exponentially.

© 2017 M. Dave Salisbury

All Rights Reserved

Shifting the Employment Paradigm – Or an Open Letter to the Politician’s of America

Pournelle and Sterling wrote an amazing Military Sci-Fi series of books under the banner of ‘Falkenberg’s Legion’ (1990) collected into a single title called ‘The Prince’ (2002).  In this series an interesting quote appears.

Every soul in his earliest stages of untutored awareness feels that the center of the universe resides within himself [or herself].  To learn that we exist and move for the most part in orbits, rather than preside at the focal point of even a minor cosmic system is a painful and difficult process for most of us…

So far in this series of writing, the origins of the current employment system has been uncovered and commented upon.  During this period of writing, the United States of America, a previously free Republic, has moved inexorably onwards in the path of less freedom, more chains of debt, and further into the dark abyss of history’s failed experiments.  This does not mean that hope is lost; it simply states for the record that leadership is needed very soon.  Toward this end, this missive is given.

The citizenry of the United States is comparable to a herd of anxious cows.  Let me explain.  No offense is intended; please do not choose to take offense.

Fear makes cowherds anxious.  Loud sounds, changes in temperature, atmospheric pressure changes, and even the simple desire to run have spooked entire herds into running, mostly into dangerous territory and always to the disgruntlement of the cow herders, ranchers, and farmers.  Ranchers have learned to make fences stronger, read the lay of the land, and place the herd into as tight an enclosed position as possible when the herd is put to sleep at night to protect the cows from harm.  Just before a herd breaks into a run, the signs of anxiousness are observed; the emptying of bladders and the evacuation of bowels makes quite a mess.  Other signs are apparent; the shaking of heads, the shifting of feet, the eyes roll back in the head, and restlessness or the shuffling of feet in every direction begins.  Finally, the most important sign is a refusal to listen to external leadership, i.e., cowboys/girls tasked to watch the herd.  The final straw before the herd breaks is usually not a major action but a minor inconvenience, which if it had occurred earlier would have been brushed off as nothing; but in the agitated state, the herd sees the minor as major and the herd breaks loose.  Once the herd begins running, those tasked with the herd’s care are forced into running beside the herd to try to turn the leading cows away from danger.  However, herd mentality has taken over.

The citizens of America are as restless as a herd of thunder struck cows right now.  Recent events in Hurricane Sandy, tornadoes in Alabama, the massacre in Newtown, the regulatory nightmare from Washington D.C., Libya, Syria, Iran, Iraq, Israel, China, etc., all are culminating into a nameless fear.  The leaders of the herd, or the politicians at every level, have been entrusted to care for the herd, to take limited resources and spend wisely on that which provides the best for American interests.  The pathways the Federal Government have lead us down are filled with enough good intentions and self interests to pave a four-lane highway from Maine to London and Seattle to Tokyo.  Yet, these same leaders are causing the people to err.  Herein lies the problem.

America was founded upon, has lived upon, and rests upon a single principle, confidence.  The US Dollar is strong because those people, who possess it, trade in it, and bet futures upon it, have confidence in the dollar.  America’s military is strong because the US Soldier/Airman/Marine/Sailor are all possessing confidence individually, in their leaders, and in the political establishment.  The American voter goes to the polls from an overabundance of confidence that the person they have selected is the best choice, but even in a loss, that same voter and nonvoter instills the winner with their confidence.  This confidence forms a sacred trust, an unbreakable vow, an eternal contract, between the politician and the voters.  Breaking this sacred trust hurts every institution in America at the core of confidence.

Look at the abysmal numbers of people who trust the House of Representatives, the Senate, or the President to do the right, plot a correct course for America, or simply to tell the truth, and it becomes apparent that the core has been shook, people are restless, and the herd is about to run.  People need a paycheck, need to know how big the tax bill is going to be, and need to know that the collected taxes are going to reduce the debt, that the politicians elected will honor the contract America made by electing them to office.

Compensatory spending is wrong now and was wrong back in 1946 when passed into law for the euphemistic purpose of ‘Full Employment.’  No government from Ancient Greece to Modern America can provide ‘Full Employment.’  Going into debt does not bring true prosperity.  The only reason compensatory spending was entered into law was to cover up the pain the Federal Government created through fiscal policy failures accrued during the Great Depression.  It took a globe spanning war, millions of deaths, thousands of mutilated bodies, the complete destruction of every civilization on the planet, along with millions of gallons of tears shed in pain and misery to lift the world from the Great Depression, and no society has recovered since.  Our current society is at best a farce, Kabuki Theater, to what it could be if the government left people alone, followed the law, and had not accrued so much debt.

Not once in all the discussion about spending has a single politician offered to apologize for the laws of 1946 allowing compensatory spending and offered to remove this horror from the legal code.  Not a single politician has said, “No more debt, we will live within our means.”  America is a rich country; we are not alone in this label.  The United Kingdom, France, Germany, Japan, China, Brazil, etc., are all rich countries.  Yet all these rich countries share the same problem with Africa, Australia, and New Zealand:  debt, cold, hard, and totally unsustainable.  The politicians tasked with the people’s trust have failed them by running up huge mountains of debt for little or no purpose.  The end result is simple.  More debt equals higher taxes, higher taxes means less freedom to the people and more power to the government.

Another truth, simply expressed; money is power.  Ever since people began forming societies, the need to trade goods and services has required something of value.  Possessing more of that valuable substance automatically equated to power, for the possessor could stop providing the resource valued and the entire economic structure would topple and fall.  A final truth:  actions have consequences.  The creator gave man the unalienable right to choose, whether he chooses right or wrong. While man can choose his thinking and actions, he cannot choose the consequences, and wrong choices cause pain.

Going back to the legislation of 1946, the politicians had chosen to meddle in financial controls.  The consequence was lost value, destroyed confidence, and the crash of the world’s economies.  This brought pain, suffering, despair, and a tremendous backlash.  The answer chosen was to increase the government.  Increasing the government meant more taxes to pay for bigger government.  Bigger government took that which was valuable from those producing valuable tools and gave to others in a vote-buying scheme unparalleled in any society known in history.  Now to retain power, those currently in power have a choice to make:  stop spending at unsustainable levels, reduce the government, and return power to the people where it rightly belongs; or, to try and continue on the unsustainable path and end 200 years of experiment in freedom.  America cannot and will not survive if the debt mountain continues.  The monies must be repaid, the debt satisfied, which will occur in either money or blood.  This is not doomsday scare mongering, but simple truth.

Look to history for this to be unfolded.  A single example:  when Ancient Rome experienced serious debt dilemmas, they conquered their creditors with their armies and navies.  Once Rome could no longer conquer their creditors, fighting began between Roman and Roman, civil war weakened the empire, and external enemies and creditors destroyed that civilization.  This pattern repeats itself time and time again throughout the history of the world.  When a government can no longer conquer their creditors or raise capital to service debt, the debt begins to be serviced by the blood of its citizenry.  The unfunded liabilities must be serviced, the debt must be serviced, and the service of the debt will be painful.  Reducing government to live totally within its means, even during natural disasters and war is the only solution.  This path is difficult, but the more difficult and bitterer pill to swallow is to see civil war break out again in every state of this republic.

By tying employment to economic indicators, the Federal Government placed people in harms way.  Lose your job and suddenly you place the entire country at risk of debt default.  Mass unemployment means fiscal uncertainty for the entire world.  This is not right.  If the government provides more freedom to the electorate, the reward is longer terms in office to keep providing more freedoms to the people.  Be courageous, shift the paradigm, service the debt, and release the power of individuals by untying employment to the economy by annulling the laws of 1946 and 1976 that would free employees to become independent contractors capable of choosing their destiny, choosing those they want to work for, and choosing what they want to do.  Employers should not have by government intervention the ‘Right to Control’ free and independent people.  Employment should be the trading of time for something of value, negotiated between two free and independent parties with the intention of improving both parties.  Act now to rectify a wrong made by previous congresses; free the employee!

© 2012 M. Dave Salisbury

All Rights Reserved