Economic Warfare – Your Liberty, Rights, Freedoms are at Risk!

Bobblehead DollMany pundits have made the following statement, in one form or another, driving a car is the ultimate expression of freedom in America.  Yet, your freedom to drive a vehicle is endangered by the political left and the neo-socialists who want to steal and destroy your freedoms.  Mention economics, and most people’s eyes gloss over, brains disconnect, and they hope the pain will end shortly.  Please, fight this impulse.  I will attempt to make a highly complex topic simple and easily understood.  While I might not get all the specific details correct, I aim to communicate economics to a general audience that is free and empowered to further research the topics for themselves.  My links are reflected in the article for more information.

What is Money?

Money was discussed in a previous article and found here.  In simple terms, money is the tool used to transfer goods from one entity to another, showing a legal purchase was made to change ownership, hence opening the first crucial role of money, legally transferring ownership of goods and services from one person to another.  Unfortunately, legal ownership transference is where the government exercises its first controls, regulating cross-border commerce.  When the government went on a growth spurt in the 1930s, ballooning into the behemoth, we have right now, the government used the excuse of maintaining cross-border commerce to steal products grown by farmers, regulate prices, and set up means and methods to ensure the government was the only winner.TOP 25 QUOTES BY JOAN ROBINSON (of 54) | A-Z Quotes

The 1930 legal battles that wound up in the United States Supreme Court over price controls saw the citizen’s first attempt to reign in the government and failed miserably.  Worse, these first moves by the citizen were the first exchanges in an economic war that has raged ever since—money stores value.  Think of the money found when you do laundry.  You have no idea how long that money was lost, but the value of the money has not changed, you presume, and you celebrate finding the money.  Except, the value of that money has changed through inflation, and the government’s hidden tax (inflation) has robbed you of value.

Let’s say you found $20 in the laundry.  When you first lost that $20 bill, it had more value, e.g., you could purchase more with that money than you can now.  Sure, the value printed on the money still has $20 worth of goods or services, but the cost of those goods and services went up, restricting your ability to purchase.  Hence the economic warfare being waged by your government.  The government essentially said we would not worry about inflation.  Meaning they will devalue the money you hold for their own political purposes.Steve Keen Quote: "Economics is too important to leave to the economists." (12 wallpapers ...

An idea was floated by an economically challenged person to print a $5 trillion bill and use this to pay off the Chinese debt.  The problem is the devaluation of the money printed will capsize American citizens due to the hidden taxes of inflation.  Making that $5 trillion bill or bills would devalue the dollar and crash the American economy.  The stored value in the printed bill would not stand up to and be accepted as a medium of stored value sufficient to pay the debts incurred.  Is the problem more clear; when money is printed, each dollar, pound, euro, etc., devalues the stored purchasing power of the money you currently hold in hand.Economics Funny Quotes. QuotesGram

Stored value is the second tool for waging economic warfare by the government against its citizens.  Consider all the money printed to pay for the supposed Coronavirus Tax Relief and Economic Impact Payments the world’s governments made to their citizens.  If you had $100,000 in savings when these monies were printed, your savings were devalued by the inflation rate, which is currently at a 40-year high in America.  The government is reporting inflation at 7.9%, so your $100,000 in savings lost the equivalent of $7900.  But, the government does not ever report inflation at the actual level, and the actual level of inflation is ranged between 8% and 45% depending upon the purpose or product you are trying to purchase.  Meaning your $100,000 could have a value of $92,000 to $55,000 in real value.  A hefty tax indeed!

Stored value, the number printed on different bill faces of currency, is static.  The actual value, e.g., the number of goods and services purchasable, is not fixed, and the government allows an annual inflation rate of 2% as “normal and acceptable.”  Thus, your $1 will have a purchasing power of $0.98, which is compounded year-over-year.  Thus, over a decade, that 2% inflation rate is now reducing your $1 to $0.80.  Multiply that for the $100,000 and a decade of saving, receiving interest that does not equal inflation to compensate means your money in your savings account has lost $20,000, just from the government allowing inflation at 2% annual growth.  Let’s say your bank is generous for savings account holders and provides a published interest rate of 3%, subtract the inflation taxes of 2%, and you are only earning 1% interest on your money.  Is this the bank’s fault or the government’s?Amartya Sen quote: Economic growth without investment in human development is unsustainable...

Do you see how the government is robbing you through economics?  Your 5% raise is only 3% once the inflation devaluation has been factored into your budget.  Play the lottery; the taxes alone might kill you, but the devaluation of the money reduces the actual purchasing power of your winnings.  If you do not understand the economic warfare being waged against you by your government, you will lose more than you ever gained in winning the lottery.  Yet another reason why lotteries are a tax on stupid people, for even when you win, you lose!

Cash has another problem beyond inflation, money supply.  The money supply is the technical term for ensuring banks can replace worn-out, ripped, and damaged money.  Money supply plays a role in how much money your local store has on hand to provide change and cashback to customers.  For employers who pay employees in cash, the money supply is a significant problem with extremely high costs.  The government regulates those costs and passes them onto consumers through banks and lending institutions.  Are you struggling to get a loan; this is another by-product of money supply woes.  Paying higher fees to change money to another currency for your trip is another money supply product.  Money supply remains another weapon of the government to affect economic warfare, and many people do not understand this principle, making the government’s policies more effective.Mahatma Gandhi quote: Economics that hurt the moral well-being of an individual or...

Before 1980, the basic money supply was measured as the sum of currency in circulation, e.g., cash, traveler’s checks, and checkable deposits.  Currency serves the medium-of-exchange function but denies people any interest earnings.  However, as discussed, interest earnings are not all they are cracked up to be due to inflation.  Cash under a mattress, lost in pockets of clothes, stuck in a book in your library is black money; it is as dead as yesterday’s fish and constantly devalued by inflation.  The money supply tries to regulate the cash on hand to lend as a tool to protect your money from inflation.  Except, the government constantly allows a 2% inflation rate, negating a lot of savings accounts and other interest-earning propositions.

Want a new car, consolidate your credit card debt, or try to buy a house; all of these loan products are an extension of the money supply and the regulation of money supply by the government.  Important to note that your credit cards and bank-issued or employer-issued debits cards are not affected by the money supply, and this is another reason why credit cards and debits cards are so dangerous.  These tools are agreements between you and the issuer, where money is transferred when the tool is used, and the consumer is responsible for all the fees the government insists upon to help pay for the money supply.Economy has frequently nothing whatever to... - Quote

Conclusion

In waging economic warfare, it remains imperative to know about economics, identifying what money is, its role, and the fiduciary controls the government exerts to attack its citizens.  Some may call my language inflammatory, but tell me, do the inflationary costs right now not feel like your taxes have skyrocketed?  Inflation is a hidden tax, a tax fully controlled by the government, and the value of your money decreases yearly because the government says 2% inflation is acceptable.  Who made this decision, an unconstitutional entity called the Federal Reserve Bank.  Since its inception, Congress has tried to obtain transparency and accountability from the Federal Reserve Bank to no avail.  Do you understand why I take umbrage with the Federal Reserve Bank?LIC

The governors of the Federal Reserve Bank decided your money could be taxed at 2% inflation annually as a normal condition of doing business.  These people set the interest rates you pay for your credit cards and are not paid for your savings accounts.  Looking into the history of interest rates since 1900, there is always volatility; the Federal Reserve’s actions have since the 1980s to not allow savings rates over 5%.  When adjusted for inflation, that’s a 3% interest rate for those trying to save money.  What does this mean; fewer people are saving money.  Look where those trying to beat the 3% have invested their money, the stock market, where volatility is a minute-to-minute occurrence, higher risks against less interest, where your money remains subject to taxes, fees hiding other taxes, government fingers, and inflation.

Your government did that to wage economic warfare against you, to empower them to steal your rights, freedoms, and liberties.  There is no other way to describe what is happening globally in all governments.  China plays games with the value of its currency to power trade deficits.  This, in turn, changes prices and increases costs.  These actions are taken to “compete,” when in reality, the activities cover massive debt problems in China.  If the CCP cannot keep the tap turned wide open on trade deficits, their money supply drys up, and debts come due in a bankrupting tsunami!Milton Friedman: The Most Quotable Economist - Capitalism.com - Create the Change

The European Union has never been fiscally sound because the various members of the European Union are taking advantage of the productive members to cover the costs of the fiscally useless members.  France cannot survive as a country without the European Union’s largesse; Greece, Portugal, and several other countries are all in the same boat.  Their governments did this intentionally as political games to stay in power.  When these countries run out of other people’s money, they will be forced to change socially, and the tsunami of debt to the World Bank and other nations will not be pretty.

Knowledge Check!Economics drives these problems mainly due to the lack of knowledge of the lines of congruence between economics and the psychology of governing.  The enemies of freedom understand economics, and this is why these tools have been so successful in waging war and stealing freedom, rights, and liberties through monetary policy.  Until we, the rightful owners of government, understand what is happening, we will all be at the whims of our enemies.

© Copyright 2022 – M. Dave Salisbury
The author holds no claims for the art used herein, the pictures were obtained in the public domain, and the intellectual property belongs to those who created the images.  Quoted materials remain the property of the original author.

Dollars and Sense – Inflationary Spending and Fiscal Insanity

Bobblehead DollThese articles have discussed money, monetary policy, fiscal sanity, and government spending several times this year.  Some have called me alarmist for raising fiscal sanity during a “Global Health Crisis.”  While COVID-19 (Sars-COV-2) is undoubtedly a viral disease with a 98%+ survival rate, I cannot in good conscience call this a “Global Health Crisis.”  The pandemic declaration was a political move, the mask mandating, business closures, and every other hysterical move have been carefully formulated to present a problem where none exists.  Has Sars-COV-2 mutated; absolutely, but the emotional hysteria has mutated far faster.

Dollars and SenseApathy

When you pass paper to a store clerk, are you spending money; no, you are spending confidence.  Your confidence in the dollar’s strength, as represented by a check, cash, money order, credit card, etc., is what is being spent.  Why was the Great Depression so lasting and detrimental; a lack of confidence in the US Dollar.  People who saved their money formed sane fiscal policies personally and acted logically lost their confidence in the US Dollar, and the dollar went into a great depression.

Since President Clinton, the US Government has been on a drunken spending spree and does not appear to be stopping unless the citizens demand they cease and desist!  What does this mean for you and me; everything costs more for two reasons inflation and interest.  When the government prints money, too much money increases prices, and too few goods chase too much money, resulting in people suffering.  When the government borrows money, the interest must be serviced; the interest will increase prices and usually absorb some of the extra capital on the market to bring down inflation.Lemmings 2

Except, Quantitative Easing (QE) is hindering the absorption of money on the market.  Hence America is witnessing something truly remarkable for the first time in financial history, the debt (principal), the interest, and the extra capital, all of these storms are combining into a major conflagration economically speaking.  Usually, at this point, a country begins to look for a place to go to war, which explains China and its expansionist policies in Southeast Asia and the Pacific Ocean.  Too much debt, too much interest, a military needing worked, and assets need to be stolen from other countries.  Typical historical thinking, war truly is grand larceny on a massive scale!

Where are America and China headed; let’s ask Czarist Russia, USSR, Nazi Germany, East Germany, China, North Korea, Italy, Venezuela, Greece, France, and who knows how many other economically unstable countries historically and presently.  Going to war will not solve this economic crisis, though some may try that solution.  The only solution worth advancing at this critical juncture economically is reducing the size of government, placing a firm halt on all government spending, and refusing the politicians to get into debt for at least two decades!  Yes, this means changing Social Security, Welfare, Medicaid and Medicare, and every other government benefit program to fit a reduced budget and smaller government model.  Failure to tighten belts for the next two decades will bankrupt America, and most of the world, making the Great Depression look like a summer picnic.Lemmings 4

Gold and Oil, real estate, Gross Domestic Products (the goods manufactured in America for sale), trade, all of these wealth tools and more cannot support the debt incurred, the money printed, nor the size of the government from the city and county to the White House.  As this trend continues, Wall Street will continue to be tumultuous, at best, and the confidence in the US Dollar will continue to slide.  But, as the dollar slides, which global currency will begin to take up the slack?

The Euro has discredited itself and is not worth the paper it is printed on.  China thinks they will step into the void and take up the slack with the Yuan, except their financial situation is almost as bad as Venezuela’s and Cuba’s, but their size and government type keep this hidden from the public.  Even though the Yuan is in junk status, the Communist government hides these facts; the truth is leaking out in higher trade tariffs and other global trade and finance costs.  Russia’s economic situation still has not stabilized with the fall of the USSR and will probably need another two to three decades until it can compete on the global economy again.Gravy Train 2

I heard a postulation that the Arabian Oil Rich nations of the Middle East would produce an OPEC-backed currency if the US Dollar fails.  I highly doubt this as a solution, but the potential is there.  Another person claimed the lack of confidence in the US Dollar would lead to the World Bank/International Monetary Fund (IMF) issuing currency for the world; boy, would that be a significant problem!  Yet, the American Dollar is being purposefully destroyed by the current crop of politicians, and nobody is standing up and declaring ENOUGH!

Inflation

The US Government, and many others globally, have increased their drunken spending since Jan/Feb 2020 to incredibly extensive levels and used a “Global Health Crisis” as the excuse.  Except when Ebola was sweeping the world, we did not have this level of insane spending and government intrusion.  Ebola is far deadlier, easier to spread, and yet the Ebola disaster is barely remembered.  Bird Flu, Swine Flu, SARS, MERS, all these viruses have had their time in the media hysterical spotlight, every single one of them is deadlier than Sars-COV-2, easier to spread, and they were never a cause for a global pandemic.Gravy Train

Inflation is caused by poor economic policy, where the government grants itself the ability to print money.  Inflation is not just money and monetary policy; inflation is also confidence, faith, and trust.  Inflation is how the government acts, thinks, and behaves.  Inflation is as real as COVID-19 and just as deadly as Ebola while being more problematic for everyone.  From Dec 2020 to the end of July 2021, inflation has increased the price of goods and services by 3.8%, seasonally adjusted, or 5.4% non-seasonally adjusted, which means that prices go up as a seasonal adjustment in the summer.

Fiscal Insanity

Consider with me an analogy; you live in a community of houses and pay a Homeowners Association (HOA) Fee.  Your neighbor has decided they can write checks on your checking account, and the HOA has granted them legal protection to write checks on your bank accounts.  Because your neighbor has legal protection, you sell off assets to provide the funds for your neighbor.  You sell to other neighbors letters of credit that you promise to pay interest on, provided your other neighbors hold those letters of credit for specific amounts of time.  Except, your neighbors stop buying those letters of credit over time because they do not like how your neighbor keeps writing checks and spending your money.  How do you keep this house of cards from blowing over and losing everything?

Tax BurdenAmerica is in this position right now!  Trend lines show a steady downward trend in the value of the US Dollar.  Inflation will keep increasing prices as too much money is chasing too few products on the market.  Debt needs to be serviced and interest paid.  But, when the interest payment is the only thing being paid, and the principal will also need to be serviced, where and how does the principal get serviced when the interest is absorbing all the monthly payments?  Simple economics, money once created and put into the money market, cannot just be absorbed or disappeared.  Just like food doesn’t disappear once consumed, the offal must come out and be handled responsibly.  Well, the dollar is in an offal position and needs responsibly handled!

© 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: What is History? A Prelude to the Future.

There is an axiom in history, “If you do not learn history, you are doomed to repeat it.”  Some have refused to believe this lesson, to their utter misfortune.  Others have refused to accept this sentiment and have suffered likewise.  How do I know this; history shows the willing student how history is a prelude to the future.

Ancient Greece was the center of knowledge, but their people stopped learning history, and Rome came in while Greece was napping and took over the country lock, stock, and barrel.  Then, over time, Rome stopped learning the lesson they had taught and was forced to relive their history when caught napping; others came in and ruined the Roman Empire.  Ancient Egypt was a grand empire until Rome.  More history leading to preludes of the future.

Moving forward several centuries, and we see the rise of the Muslim Empire, suffering the same fate as those behind it when they too forgot their history.  The repetition of history is both scary and clearly written in the annals of history.  When one stops learning their history, they become doomed to repeat that history, for history is ever a prelude to the future.

Now, I am not a doom and gloom type, nor do I have grand aspirations of being a prophet or prognosticator.  I am simply pointing out the truth and hoping others may join me in learning history to avoid repeating history.What historical lessons do we need to learn?

To answer this question, I beg you to indulge me for a moment.  I have to ask a few more questions to answer this most pressing question.  As a modern citizen of your country, do you understand the family’s value and importance to your society?  What are you doing to support the family as the preeminent foundational stone of a sound and growing society?  Are you willing to sacrifice worldly reputations, money, power, etc., to have a family?  The leading cause of the Roman Empire’s fall was that they stopped having nuclear families, and within a generation, they fell.  Why did the sunset on the Egyptian Empire; they stopped believing in and supporting the nuclear family, and they failed.  Before WWII, why was England, the world’s mightiest empire since Rome, failing; they lost the nuclear family and still haven’t recovered.

Why is France struggling, Italy disappearing, Germany struggling, and the US and Japan all having such incredible problems; all have forgotten the nuclear family.  As the nuclear family goes, so does the state’s power and the identity of a country’s soul.  Let that sink in a minute.  As the nuclear family goes, so does the country’s soul.  A country’s identity, liberty, law, freedom, and lifestyle rests squarely upon the shoulders of the nuclear family.

I have read reports that Italy will no longer be the traditional “Italy” in less than 10-years because the Italians are not getting married and having families.  I love my Italian family members, but I am so distraught to think that “La mia famiglia,” the quintessential Italian experience, will not be around for my posterity to enjoy, except through fading pictures and journaled memories.  What makes this worse is Japan, South Korea, the Philippines, France, Germany, the United Kingdom, and every other nation on earth have the same problems.   The nuclear family is disappearing at a frightening rate, and as the family goes, so do the historical lessons that need to be learned to avoid repeating.

An ignorant barbarian suggested, “well, just have people have more kids.”  I wanted to gently take this person by their ears, look deeply into their eyes, and ask, “Is anyone in there?”  Children are important but more important is the nuclear family experience.  Another person once suggested that the nuclear family, consisting of a mother, a father, and children living in the same home, is copyable for homosexual couples, divorced couples, and single parents, so what’s the big deal?”  In asking that question, the individual’s historical ignorance was apparent, and society’s problem leading to a repeat of history.

Living together as a family is messy, it is hard, and it requires learning how to live together.  These fundamental lessons become the experience that binds a nation to its culture, faith, and fundamental societal core.  There is no substitute, no shortcuts, and no other possible way to exist.  Yet, too often, the nuclear family is shunned, disrespected, and disregarded for the pleasures of living more easily.

No, I am not casting aspersions on those parents raising children as single parents.  I have known the great and good and the incredibly terrible in single parents and would support that person and those children however I can.  But, I hold this perception and desire because I know the value of the nuclear family, the nuclear family’s potential, and I know how a family makes a community, and a community makes a family.

I read the research on homosexual couples rearing children, and I weep for the children!  A more honest statement I cannot make.  I know the abuse and problems inherent in any family organization, but the problems are only multiplied a hundred-fold in homosexual couples rearing children.  The second most destructive power in Rome’s fall, mirrored from the Greeks, was the rise of homosexuality, which was preceded by a loss of morality, religious living, and the nuclear family.

President George Washington said in his final address to the nation about religion.

Of all the dispositions and habits which lead to political prosperity, religion and morality are indispensable supports.”  Continuing, Pres. Washington called religion and morality “Pillars of human happiness, and the duty of citizens to uphold.”  Concluding with, “Where is the security for property, for reputation, for life, if the sense of religious obligation [and morality in society] desert the oaths?  Reason and experience both forbid us to expect that national morality can prevail in exclusion of religious principle.”

I know the struggles in families, but those struggles pay dividends when we support the nuclear family.  I recently read of an 11-year old having children because her mom and grandmother were in prison, and great-grandma needed more welfare money to feed the other children living in the home.  In reading that report, I hoped this was a one-of-a-kind experience, but I was horrified to learn the exact opposite, and family courts are full of tragedies similar to this story.  Our communities are failing because the nuclear family has suffered some desperate body blows, and more welfare programs and government heavy-handedness are NOT the answer!  History is indeed a prelude to the future, and the loss of the nuclear family is front and center in this battle for your country’s soul, culture, legal system, and future.

Families, reach out to single parents and open your home.  You do not have to be perfect to help; just help!  Communities reach out to support the nuclear family.  Religious communities especially reach out to support single parents raise morally centered children and help build nuclear families.  If the nuclear family experience is lost, we will repeat history, and chaos is too small a word for the conflict that will fill every country on earth!

I offer no excuses for those who abuse their spouse or children!  I extend only support for the victims and would see the situation corrected.  In the same breath, I would offer hope to those struggling in these times to raise a nuclear family; you are doing a good job, even if it seems like every day is difficult.  Please stay in the fight; it is worth the struggle.  To the non-profit and religious organizations, get involved in the battle to support the nuclear family and morality in public and private.  Fight for morality and nuclear families; they need you, your community needs you, and your country needs you!  Especially to the organized religions and their leaders, find a spine!  Get into this fight, or die an unpitied sacrifice in a contemptible struggle!

Please, learn history, teach history, and work to support the family as a prelude to a better future!

© 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.