The Proper and Improper Role of Government – Chapter 5: Socialism, Communism, Capitalism, and Envy

Bird of PreyAs a kid, the USSR loomed as an ever-present force that could at anytime wipe America off the map with a pre-emptive nuclear strike.  Of course, America would retaliate with nuclear weapons, and this would create MAD or “mutually assured destruction.”  People understood MAD was bad, but the communists among us were more insidious about portraying communism.  The news media showed bread lines, soap lines, and the bitter pictures of enslavement under communism.  Thus, socialism was the way to go, and the communists were selling socialism as the better way to government.

Except, socialism is communism light, and when the socialists run out of other people’s money, communism takes over.  All because under capitalism, the results of one’s choices and consequences are harsh and cannot be hidden. Those preaching socialism and communism were envious of the capitalists who achieved and wanted what others possessed but without the hard work required to obtain benefits.

One other reality is critical to understanding the role of socialism; there is an axiom that states something like, “today’s students are tomorrow’s government policymakers.”  This is precisely what has happened; the students of the 1960s are now setters of government policy, holding onto the reigns of power through sheer willpower, to see America die before they do.  Socialism has been taught in the classrooms of government-mandated schools since the early 1900s to purposefully bring down the liberty and freedoms of the citizens of every representative government, out of envy for those in power in communist countries.  Refusing to believe that under communism, less than .01% are powerful, rich, and mighty, whereas everyone else suffers, grovels, and struggles!Plato 3

Socialism, Communism, and Capitalism – Detailed for understanding.

What is communism?  Webster relates that communism is “A system of government in which the state plans and controls the economy and a single, often authoritarian party holds power, claiming to make progress toward a higher social order in which the people equally share all goods.”  Except, everywhere communism has been tried, one-party rule leads to sycophants and ideologues ruling and taking what they want, while everyone else suffers, held in power by hired guns.  Cuba was an incredible island nation, then Fidel Castro came along, and now Cuba is a cesspool of suffering, misery, and stagnation.  Venezuela used to be the crown jewel of South America; now, it is a war zone, a catastrophe, and a pit of wasted potential.  Czarist Russia was no picnic, but it was much greater than the vulture of communism that feasted on the body of Czarist Russia while it poisoned the world.  China before communism was enlightened, capable, able, and has joined the ranks of failed communist planning and operations.Plato 2

What is socialism?  Socialism is defined in Webster as “Any of [the] various theories or systems of social organization in which the means of producing and distributing goods is owned collectively or by a centralized government that often plans and controls the economy.”  As well as, “The stage in Marxist-Leninist theory intermediate between capitalism and communism, in which the means of production are collectively owned, but an utterly classless society has not yet been achieved.”  Is the connection clear as to why socialism is referred to as “communism light?”

One last point about socialism, “legislation intended to improve the condition of the working-man. Among the measures include the insurance of workmen against accident, sickness, and old age, and the establishment of cooperative associations under state protection.”  Envy of other countries having benefits has caused legislation that never should have happened in America and many other representative governments due to costs, loss of liberty and freedom, and the destruction of fundamental processes in the “Rule of Law.”  How expensive has unemployment insurance been in non-monetary costs?  Jobs have been lost forever, the expense of hiring has pushed jobs out of America, the expense has reduced wages of those lucky enough to be hired, but the growth of government and the millstone of bureaucrats has cost more than money, we have lost liberty, freedom, and potential.The Duty of Americans

What is capitalism?  The common definition of capitalism in Webster states capitalism is “An economic system in which the means of production and distribution are privately or corporately owned, and development occurs through the accumulation and reinvestment of profits gained in a free market.”  Webster’s dictionary has come under the same influence of plastic words and liberal ideology.  Webster also defines capitalism as “The concentration or massing of capital in the hands of a few; also, the power or influence of large or combined capital.”  Do a few condense capital; yes, no doubt.  Except, when there is less government, and people keep their envy to themselves, capitalism brings the most freedom to the most people better than any other form of government attempted in human history.  So, while capitalism has its faults, which are legion, capitalism is not the problem as it embraces private property ownership.  Private property ownership is freedom from government oppression!Patriotism

Please note, it is entirely acceptable to reach a level of financial comfort, look around, see suffering, and want to aid in the relief of suffering.  This is a good thing and expected in a capitalistic system.  Those paying for the relief of suffering are not government officials hired through forced taxation.  In a socialized system, the money is stolen, legally, through forced taxation, then handed freely to those suffering, with several cuts made for wages and benefits of the workers doling out other people’s money.  In a communist system, political leaders get fat and enjoy all the benefits, while everyone else suffers without relief.  Yet, too many people would see you in a communist system and suffer, for there is no envy.  If you believe that, I have a gravity-resistant bridge to the moon for you to buy.

Envy

Social Justice Warriors 4Envy has been one of the seven deadliest sins for a reason; it breeds violence and discontent.  Webster shines a light on envy describing it this way, “A feeling of discontent and resentment aroused by and in conjunction with desire for the possessions or qualities of another.”  Fear is disgust and envy paired for the weak to overcome the powerful.  The disease of envy includes admiration, jealousy, discontent, disbelief, lies, and a host of emotions that overwhelm a person’s mind to the point where they become irrational and hostile.  Another resource claims envy (from Latin invidia) is an emotion that occurs when a person lacks another’s superior quality, achievement, or possession and either desire it or wishes that the other lacked it. Aristotle defined envy as pain at the sight of another’s good fortune, stirred by “those who have what we ought to have.”

While academics continue to split hairs between jealousy and envy and strive to create more distinctions, what has been described regarding envy is sufficient for my purposes.  The purpose of discussing envy is to aid in clearing the confusion surrounding envious people who have a modicum of power, as they perceive it, and then abuse that power for their own benefit.  For example, Trump Derangement Syndrom (TDS) was already a disease long before President Trump left the private sector for the political arena.  TDS remains rooted in envious people acting violently, abusing power, and acting unethically and immorally because of the envy they feel for President Trump’s success.Social Justice Warrior 3

Consider Speaker Pelosi (D), who ripped her copy of President Trump’s State of the Union speech up in front of cameras.  She was jealous; her pride was hurt, and she felt envious and lacked a weapon to harm the president, so she acted immaturely and disrespected the sitting president.  All this because, at heart, Speaker Pelosi (D) is nothing but a shallow and useless person, stuck in Congress and hating every minute of her tenure there because she could not obtain a higher office.  She is envious of the Americans she despises and works 24/7/365 to destroy America, all because of her envy of other people’s success.

Social justice warriors, including President Obama, are full of envy and do everything they can to obtain revenge for self-inflicted wrongs.  Envious people hate consequences for the choices they make.  Envious people turn to drugs, alcohol, and other forms of self-medication, which in turn makes their self-loathing and self-hate worse.  Then, these same envious people curse the success of others while demanding that someone else pay for the help they need to overcome their self-inflicted consequences.Social Justice Warrior 2

I recently talked to a gentleman who was severely upset that democrats stole the 2020 elections, stuffing ballot boxes, allowing illegal immigration, and a host of other crimes that occur for votes.  While I can understand his distress, he was envious of a political party for their success at suborning American Law.  He left the conversation mad because he could not understand the role of envy in himself and what he was observing in others.  Worse, the belief that justice and mercy are alive keeps him from acting to help change the situation, shift the paradigm, and improve the problems he mentioned to a solution.  Envy captures the mind, placing shades and shutters over logic while unlocking emotion, many times without the person realizing what is occurring until that mind is chained in the captivity of envy.

IronyThere is a reason why envy is a deadly sin in both the Old Testament and the New Testament, mentioned in all the ancient books as a problem, and continues to infect people who refuse to learn.  Unbridled emotions are captivity, not freedom!  There is danger in the extremes of everything.  Envy is in the extremes and imitates a minimal issue to capture the mind and control the person.  Consider this, capitalism is the best, and envious people implement socialism to chain capitalism while rooting for communism to come in a takeover, thinking they will be better off and the “rich will finally pay their fair share.”  Reality is always disappointing for envious people, and the result will be that everyone detests them when their plans come to fruition.

© 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.

NO MORE BS: Come, Let Us Reason Together – Chapter 4

Bird of PreyPSA:  I am not a cynic; I understand the concepts being discussed, and it might appear that I am cynical about insurance companies by the tone of the writing.  Please note, I am generally in favor of the insurance industry.  However, when government mandates insurance coverage to spread the risks out for the benefit of the insurance industry, insurance has become a tax.  When a business offers insurance, but the co-pays and the costs are too high, insurance is no longer a benefit, and I want the option to opt-out of the employer “benefit.”

Insurance as a concept has been around for a long time, historically speaking.  Maritime insurance was a concept from the 1340s, and Benjamin Franklin dreamed up property insurance in 1752, becoming America’s first insurer.  Insurance separated investment as a method of managing risk, making investing more palatable and shoving the consequences of natural disasters, pirates, and other methods of losing onto another responsible party.  Some of the biggest names in insurance can trace their roots to the Great Fire in London in the 1660s.  We mention all of this, as a foundation for understanding the role and the meaning of insurance.

Interest vs. Investing

Ziggy - The GovernmentInterest, in this usage is referring to the advantage to a group or single person, as well as improving one’s welfare.  Maritime shipping would take on several loads, and people who owned those loads had a vested interest (having a personal stake in something) in seeing that ship arrive on time at its intended destination.  For example, sugar has been a huge commodity in history, and a sugar mill would ship the sugar to destinations for sale.  People interested in improving their welfare could invest in the sugar mill, or with a higher risk, expecting a higher return, invest in the shipping company, or the ship.  Thus, investing became one where opportunities to increase interest became popular.

The modern stock market traces its roots to the 1600s and the Amsterdam Stock Exchange, where for the first time, people interested in investing could be joined to companies needing investors, and money could exchange hands for certificates (stocks or bonds) showing interest.  A point of reference, the Dutch East India Trading Company was an original benefactor of the Amsterdam Stock Exchange, and sugar, molasses, and spices were the commodities being shipped.  Not saying all the Dutch East India Trading was in non-human commodities, but sugar was a huge driving factor for separating risk through insurance that drove the stock exchange creation.

photo_slideshow_maxOne final point, government’s have interests, generally traced to those paying the highest taxes, or with the most political connections.  Government’s do not have allies, as much as they have groups of governments that share a common interest.  For example, countries belonging to NATO.  NATO is the North Atlantic Treaty Organization and was designed for those countries with interests in seeing trade safely through the North Atlantic.  Not all the countries in NATO are friendly with all the other countries, but the common interest in seeing trade and markets operate smoothly has generated NATO and kept it alive since 1949.  Government never has friends; they only have relationships based upon mutual interests.  These are cogent points that must be remembered!  Incredible as it seems, interests change, and when interests change, relationships between countries and governments force ideological changes, and today’s relationship might not be the same tomorrow, which is one of the reasons why the United Nations is such a pile of hypocrisy and uselessness!

Insurance and Investing

Insurance as described by Webster’s dictionary is a practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.  The payments of premiums provide the insurance company with vast sums of cash.  Some of which are placed into long-term investments, medium -term investments, stocks, bonds, T-bills, and other methods of protecting the money paid in premiums.  The higher the risk, the higher the cost of the premium.  The one rule in insurance that has never changed from the 1300s is, if the insurance company can collect a premium, and not pay on a claim, the interest the premiums collect remains and the shareholders see larger returns on their investments.

Calvin & Hobbes - EnmityHence, lawyers and bankers have a vested interest in seeing insurance companies not have to pay claims, but still collect premiums.  Thus, contract law was established, and the insurance companies took full advantage of language to protect their premiums from paying a claim.  Another growth industry directly tied to the insurance industry, was special courts for hearing claims and awarding damages (Tort Law).  Cornell Law university provides some clarity on tort law, “A tort is an act or omission that gives rise to injury or harm to another and amounts to a civil wrong for which courts impose liability.  In the context of torts, “injury” describes the invasion of any legal right, whereas “harm” describes a loss or detriment in fact that an individual suffers.”  Placing insurance companies squarely into the middle of tort law, and thus opening up new avenues for protecting against paying a claim from the premiums paid and invested.

Types of Insurance

ApathyImportant to understanding, Carl Marx and communism uses the ideas of mutual insurance companies to create a society where all share the risks, all benefit in the gains, at least in theory.  However, like insurance companies, someone in communism must enjoy all the benefits for taking the risk of establishing the community, and the reality of China, Cuba, and USSR become evident.  Where the leaders take everything for themselves, and the regular people live in squalor and depredation.

Janet Hunt wrote an great article on types of insurance companies and her article can be found here.  Currently there are nine different types of insurance companies available and are detailed below:

    • Mutual Companies – owned by policy holders who are also considered shareholders, sharing the risks, and benefiting from the lack of paid claims.  The mutual society of this type of insurance company shares dividends and when losses occur, generally the shareholders (policyholders) might not see an increase in premiums.
    • Stock Companies and Mono-Line Carriers – Stock companies are corporations and the distribution of dividends become payments to shareholders.  These insurance companies are very averse to paying claims.  Mono-line carriers only carry a single type of insurance.  For example, a company might only carry car insurance, specializing in just car insurance provides savings in overhead, and they might have agreements with other carriers to provide linked coverage for other insurance products.
    • Lloyds of London – When you want to insure the weird, Lloyds of London is the carrier of choice.  I cannot tell you how hard I have laughed at people willing to insure body parts, unusual, or high-risk items.  Share my laugh, look up what policies Lloyds has written insurance policies for and you too can have a good chuckle.  Lloyd’s does carry insurance for mundane and normal, but those policies do not make me laugh.  I feel sorry for the citizens of the United Kingdom, since Lloyd’s of London is backed by parliament, the taxpayers are on the hook for Lloyd’s losses eventually.
    • Alien Carriers – These are insurance carriers that are owned and operated in one country, doing business in another country, selling premiums, and paying claims.  Important to note about alien carriers, the lawyers charged with engineering methods to control risks to paying claims can create a nightmare using the laws of both countries.  Alien carriers can also be operating in one US State but be owned and governed in another US State.
    • Domestic Insurance – These are companies who are owned and operate in a single US State, or other geographical area.  For example, a domestic insurance company in Texas, might or might not have the ability to operate outside Texas, where it would be considered an alien provider.
    • Direct Sellers – Do not use insurance agents, selling directly to the public or insurance consumer.  To be considered a direct seller, the majority of the business occurs online or over the phone.  Direct sellers are pretty straight forward, and some of the biggest names in insurance providers are direct sellers.
    • Captives – A captive insurance company is a unique insurance provider, generally specializing in one type of insurance product for a specific industry or groups of individuals.  For example, if a business owns a fleet of vehicles, they will have insurance through a captive insurance company who specializes in handling the risks of fleet vehicles.  Another type of captive insurance company occurs when a parent corporation needs insurance but builds a branch of their company to handle the insurance instead of going through an insurance company.  In this model, the parent company keeps the premiums in-house and has a vested interest in protecting their investments.
    • Standard Lines – This is your normal insurance company with insurance agents, local offices, is regulated by the state board of insurance, pay fees into the general state guarantee fund, and are subject to the laws and ordinances of the state in which they operate.
    • Excess Lines – Think of these companies as insurance for high-risk individuals and companies, who cannot get insurance through a standard line company.

I know, that is a whole lot more than you think you want to know about insurance companies.  However, my only logic for making these distinctions in this article is to aid in understanding the classifications of insurance company, and some of the peculiarities in insurance products.  I feel the more you know, the better questions you can ask, leading to improvements in your bottom-line.

Emtional Investment CycleWith all the ties to investing, savings products, and the flow of money into and out of an insurance company, the discussion of insurance companies remains critical.  Especially when the government can create an insurance company, then mandate that company be used to provide coverage, creating a tax and fee that the taxpayer might not realize.  For example, around the time that states began demanding drivers have car insurance, GEICO began selling policies to non-government employees.  GEICO is an acronym for Government Employees Insurance Company, and by selling policies to non-government employees, the government is able to reduce the risk of insuring their employees.  Thus, an argument can be made that the government only created GEICO to reduce the risks of insuring government employees, as well as benefiting from a flush of cash from premiums paid.

Ziggy on GovernmentBoth Lloyds of London and GEICO leave me worrying for taxpayers.  However, since the US Government is the only provider for some types of insurance, specifically flood insurance, which is mandatory for homeowners living in a flood plain, one must ask more questions about where the money goes and why?  What steps have been taken to protect the public from large scale incidents where the insurance company will have to make massive payments?  What does the government invest in to protect the premiums paid against the time of claims?

When a person begins discussing savings instruments, investments, and the links between insurance companies and government, a lot of potential questions arise, and the answers become more sparse inversely to the specificity of the questions asked.  For example, if a savings account interest is so low, due to inflationary spending by the government, what interest does the government, as a holder of savings accounts, receive for their investment?  Where does the government invest their premiums from insurance payments?  How is the government protecting their customers from inflation as a result of poor fiscal policy?Plato 2

Never forget, an insurance company must pay dividends to their shareholders who have invested interests (money).  GEICO is a Berkshire Hathaway company, and stopped being publicly held in 1996.  The questions for why the Government Employee Insurance Company is wholly owned and operated by Berkshire Hathaway opens a lot of questions.  This would be akin to Lloyds of London being sold to a private company, where parliament stopped caring or backing Lloyds.  Why becomes a major question requiring detailed answers.  Look at the political situation in America at the time of the sell, and more questions rise, and less answers are provided.

Knowledge Check!America, when it comes to cash flow, money, and government fiscal policy, we need answers.  We need the elected representatives to understand basic economics, and we need to hold a tighter rein on those elected representatives.  The current fiscal health of America is poor, solely because of the elected representatives and their bureaucratic minions.  We must have a solution that protects America, and this solution needs every citizen involved and engaged.

© 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: Come, Let Us Reason Together – Chapter 3

Making Money Online: A Guide on How to Earn Money From Home | ResellerClub  BlogWhen a person discusses making money, what does the phrase “making money” mean?  When talking about money, we are not discussing printing actual cash; while that is certainly a way to create money, that always leads to inflationary problems.  Simple economics relates there are two different avenues to make money.  These methods are as old as the Old Testament or recorded history, and every single civilization has used these methods.  The first method is to save money, where interest is paid while someone else uses your money to create products and services, bet on the futures markets for farmers, ranchers, etc., or stock and bonds markets.  Regardless, the first method generally involves receiving interest from saving money.  The second method is also well known; you borrow money and pay usury (interest).  The people who save money make money on those who borrow money and pay the penalty interest.  Through defaults on loans and bankruptcy, the unpaid interest penalty causes risks to increase, and classes of borrowers are created.  Risks also raise prices, remove the ability to borrow funds, and establishes another market, insurance.Taxpayer Money Cartoons and Comics - funny pictures from CartoonStock

In Las Vegas, the saying goes, “The house always wins.”  In simple economics, the house is a runaway government that claims, “let’s make things more fair to lower-income earners.”  In reality, they make the low earning income earners and fiscal illiterates, suckers, betting on the government to save them every time they make poor fiscal decisions.  These fiscal illiterates come in every shape, size, color, culture, and financial background in our modern times, but these two ways to make money remain essential to the following article.  Please note that the insurance topic will be covered in a later article; for now, just keep in mind the two methods of creating money, saving money and earning interest, and borrowing money and paying interest.

The Radical Theory That the Government Has Unlimited Money | Occupy.comThe Federal Government during this COVID-Hysteria has paid out vast sums of money, some of which in loans, placing the businesses who borrowed at significant risk, and other sums as payments to individual people.  Either way, that money is not “Free Money.”  Those funds were borrowed from somewhere, and the government will have to pay interest on those dollars borrowed.  When governments borrow money, higher taxes are a direct result from the school board to the Federal Level.  Except, every person in the world will have to be now also penalized a second and third time for the government borrowing money.  Inflationary prices are the second penalty for government spending/borrowing.  Lower interest rates on saving money are the third penalty for government spending/borrowing.

Deficit and Budget Cartoons | Cartoons | US NewsThe secondary and tertiary penalties are often called hidden penalties, or fees, that occur as natural consequences to the government borrowing money.  These penalties cannot be escaped!  The higher the inflation goes, the more people cannot borrow money, the higher prices go, and the less paid as interest for saving money, even if stocks and bonds continue to be traded at record levels.  Look at the stock market growth as the government has borrowed more and more money over the years, and you can trace this pattern.  As the stock market grows, savings accounts empty, and those savings accounts which remain are paid less and less interest year over year.

How to Make Money Online Without Using Google AdsenseThe banks, credit unions, and other saving institutions and markets will continue to use other people’s money on the stock exchanges and futures markets to return a profit to shareholders, but the account holders do not earn the same as a shareholder, even though their money is what is being bet on the stock exchanges, futures markets, and in government investment instruments.  Thus, one needs to understand these essential money creation tools to judge the following facts correctly.

      1. Some states and cities are about to be given $360 Billion in government stimulus to spur post-COVID-economic growth. Laying aside the facts previously covered that spending does not “spur economic growth.”  We, the citizenry, need to understand the money being dumped onto these states comes with a very high price for us individually.
      2. The money being dumped on the states will not be fairly divided but divided by political connection! The pattern was established long ago by the Federal Government and has been used every time the Federal Government wants to reward certain states while punishing others.
      3. There is no such thing as free money. Never has, never will, even money found on the street is not free.  The money found on the street was a loss by the person who dropped the money.  Hence credit and debit are the terms of money, for money cannot just disappear.  A credit to one person always creates a debit to another person.  Simple economics and the credit/debit of money are universal and historically accurate in every economy man has ever produced.
      4. Credits in one category have to come from somewhere as they travel to another area as debits.
      5. Debits in one category have to come from somewhere as they travel to another area as credits.
      6. Money cannot disappear. Money can be physically destroyed, but it never evaporates like water moving from a liquid into a gas.  Money travels, money travel, can be tracked, and even cash comes with these same conditions.

An easily understood example is paychecks.  Your employer pays you for your time as a credit to your wallet.  You deposit your paycheck (a credit to the bank) and immediately start paying bills (debits) to those whose services you enjoy (credits).  Make sense; the debits of your employer to you as a paycheck comes from both the sale of goods and services and through investors who expect to be paid for their continued contributions to that business.  The employee is not “making” money when they are getting paid; they have traded time, sweat, and labor; no money was created for a paycheck.  But that paycheck allowed that employee to pay for groceries, clothes, fuel to get to work, along with other goods and services.  Credits and debits tell the story of where money travels, recording prices for goods and services along the way that governments are supposed to understand as they set tax rates.  However, the more a government borrows and spends, the more the tax rates are set not by people in government but by the penalties of interest.

lb0602cd20160601043644 | Peter Grandich and CompanyMany, if not most, of the American States, are in this predicament right now.  The Federal Government has been in this predicament since at least the 1960s due to the imbalance in trade going to China, the loss of manufacturing jobs in America, and the incredible rate of spending the government has done since WWII. The states and the federal governments are in this predicament also because of union wages.

I am not anti-labor union, I do believe that labor unions are a tremendous legal Ponzi-Scheme, and the victims of labor unions are the people forced to pay higher taxes for the wages and the retirement benefits, as well as the medical, vision, dental, and other benefits of union workers both in the private and public sector.  I also firmly believe that government workers should never be allowed to unionize as the government pays the wages through forced taxation.  In the New Testament, regardless of how you perceive Jesus Christ, there is a story about the Pharisees and Caesar’s Poll Tax which was grievous to be born by the conquered nations in the Roman Empire.  As a point of interest, every time taxes are mentioned in the oldest books known to man; they are always referred to as grievous, or in a negative term; why, because taxes are always a penalty, a legal way to weaken the populace and bribe the citizens with their own money.Chris Hedges Quotes | Labor Unions Rise Against Wage Slavery ...

Historically, conquered nations used to be forced to pay tribute to the conquering governments for the purpose of keeping that nation weakened and unable to rebel sufficiently to overthrow the conqueror.  When standing armies and navies became the norm in history for nations to keep, taxes followed to pay for the standing armies and navies.  Throughout history the story of tribute and taxes have driven people to rebel, become slaves to be bought and sold, and prisons to fill up when the citizenry could not, or would not, pay the tax collector.  The same tax collector who incidentally received for his time, wages from the taxes collected.  Many times, the tax collector was also known to the population as a neighbor, making the paying of taxes a mental as well as a physical burden.  When you have personal friendships with the conquered nations representatives, the story of Ben-Hur becomes more poignant and the appearance of the burdens of the conquered as bitter bondage is better understood.

Gary Varvel's Editorial Cartoons - Lemonade Comics And Cartoons | The  Cartoonist GroupMy aim is to help improve understanding and open the discussion on money, taxes, and what your government has done in the name of “COVID-Relief.”  When the fraudulent president considers inflation to not matter,  one must begin asking why inflation was a major issue when President Obama dumped money into the economy, but magically, President Biden can sleep peacefully knowing there are no inflationary concerns.  The more the current sitting US President speaks, the more I wonder about who is pulling his strings to make him talk!

© 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: LIC – Low-Intensity Conflict – Explained and Expounded

Dont Tread On MeBetween 2012 and 2014, I wrote the first article on Low-Intensity Conflict (LIC).  Somehow this article has been lost in my changing blogs and computers.  Hence, what follows is an in-depth look at LIC.  Please note, several authors have significantly contributed to my understanding of LIC, but none so much as Lt. Colonel Alan J. Tinder, who wrote a paper for the Air War College in 1990, titled: “Low-Intensity Conflict.”  From the Colonel, I have learned much and benchmarked this principle to more thoroughly understand LIC, how to recognize LIC, and how to detail LIC for others.  The other compelling source is L. C. Green’s paper on “Low-Intensity Conflict and the Law.”  My aim here is to synthesize this information into a manageable topic and aid understanding.LIC 2

Too often in America, we do not recognize LIC.  When the Verizon Labor Unions had to be legally restrained from committing LIC against Verizon, the judge seemed to want to call the acts of violence nothing but poor decisions by some people.   Yet, the labor union had begun a tactic of pressuring Verizon by destroying property, scare tactics for third-party contractors, and causing mayhem to obtain their demands.  Hence, the labor union committed LIC and got away with it, no punishment, no accountability, no responsibility.  Never forget, “Barely three percent of violent crimes committed by union members lead to an arrest or conviction. … Most victims of union violence are unemployed workers looking for a job [to] feed their families. “Scabs,” they call them. Subhuman scum. Untouchables. People who, in the minds of unionists and their enablers, are worthy of the same kind of vile abuse that Klu Klux Klansman used to dish out to African Americans that didn’t know their place.”LIC

What is LIC?

Low-Intensity Conflict (LIC) is the official name for what happens when individuals or governments hire intermediaries to conduct violent operations from a position of security.  LIC is a misnomer; those who have become victims of the barbaric cruelty of those practicing LIC find nothing “Low” about the experience.  The conflict is intense, the actions brutal, and the practitioners remain cunning adversaries using and employing willing dupes to hide the true depths of moral decay inherent in the societal destructions and deprivations the practitioners are enacting.  Many confuse LIC in describing the actions of unbridled violence committed by ideologues under the banner of terrorism.  The US Military Joint Chiefs of Staff define LIC as:

A limited political-military struggle to achieve political, social, economic, or psychological objectives. It is often protracted and ranges from diplomatic, economic, and psychological pressures through terrorism and insurgency. Low-intensity conflict is generally confined to a geographic area and is often characterized by constraints on the weaponry, tactics, and levels of violence (Tinder 1990) [emphasis mine].”

Green (1997) adds a key ingredient to the description of LIC from Tinder (1990).

… Non-international conflict itself is a refined term for what [was] formerly known as revolutions or civil wars, particularly when these have developed into major operations with the likelihood or reality of atrocities being committed against non-combatants.  Whether civilians or those [rendered] hors de combat, a fact that is often more common in non-international … conflicts, especially when ideological, ethnic, or religious differences are in issue.  It is for this reason that it must be borne in mind that the term low-intensity [conflict] has no relation to the severity or violence of the conflict” [emphasis mine].

Some will proclaim loudly, primarily due to affiliation with or money donated from deep-pocketed entities, that LIC is only limited to those more commonly perceived as terrorists, i.e., car bombers, hijackers, etc.; however, paid rioters, looters, and those termed by the media as “violent protesters,” are practicing LIC.  Worse, labor unions have been getting away with LIC since 1892 and the Homestead Strike.  As a point of fact, K-12 educators will only teach the labor union’s side of the story during the Industrial Revolution, leaving out the capitalists providing jobs, businesses that did not need, or want, government intrusion, and the continued depravity the labor unions continually inflict upon America.  Just for the record, in 1991 alone, 4400 acts of violence were committed by labor unions.Apathy

Consider this for a moment, Americans generally despise violence for economic gains; but, due to LIC in K-12 education, the labor unions get special treatment before the law on committing violence.  Imagine for a moment how ugly the media would scream if the KKK dropped nails, broke glass, destroyed property without regard to a minority-owned business.  Oh, wait a minute; we know what the media would do, nothing!  See, when politically correct rage occurs, even when it is a minority on minority, the press closes their mouths or pitches in!  The world saw this in Portland, Seattle, Minneapolis-St. Paul, Atlanta, Florida, and so many other riots, politely termed “peaceful protests” by the media!

LIC and the Law

I am not a lawyer, and the following is not legal advice.  LIC being punishable under a military court is founded in the Civil War, and President Lincoln desired to regulate the behavior of Union troops and show proper deferment to enemy troops.  While this legal precedent goes further back, the legal precedent begins with President Lincoln in the US.  Controlling troops’ behavior led to the Genocide Convention of 1948, where genocide was created.  A legal standard was set for controlling and describing proper behavior during a conflict and enforceable by third parties.  Hence the reason why, and for, international courts to bring charges against countries and leaders of countries who commit genocide.  Unfortunately, even with the United Nations “maintaining neutrality,” enforcement of genocide continues to be problematic.The Duty of Americans

However, the point is clear, commit acts of LIC, and you do not face a civilian court and judge; you face a military tribunal.  The legal precedent for handling LIC by military tribunal further clarifies that those violent protesters and labor union members using LIC to commit acts of violence are deserving of the label, domestic terrorist.  As a terrorist, those using LIC, including those paying for LIC, lose their US Constitutional Rights, face a military tribunal, and held without Habeas Corpus.  Terrorists do not deserve and have rejected their US Constitutional Rights upon paying for or committing violent LIC actions.  According to the legal dictionary, Habeas Corpusis a writ requiring a person under arrest to be brought before a judge or into court, especially to secure the person’s release unless lawful grounds are shown for their detention.”  If US Troops must follow the Geneva Convention during peace and war, then those paying for or committing LIC are also bound, especially by Article 3:

“… Each Party to the conflict shall be bound to apply, as a minimum … [to] persons taking no part in the hostilities, including members of armed forces who have laid down their arms and those placed hors de combat by sickness, wounds, detention, or any other cause [certain minimum rights to ensure that they] shall in all circumstances be treated humanely, without any adverse distinction founded on race, color, religion or faith, sex, birth or wealth, or any other similar criteria.”

Since those involved in LIC are terrorists and like criminals, they do not adhere to the law.  The international community should be exerting pressure to capture, hold, and try the individuals involved in LIC anywhere in the world.  For example, Cuba is currently holding a leader of BLM, an internal terrorist organization with roots in Marxism-Leninism.  Other people have found safe haven in the international community and need to answer for their criminal and terrorist activities.  However, since the American government refuses to label paid agitators as the internal terrorists they are, the criminal justice system will continue to be violated.  Those guilty of LIC are allowed to continue their licentious ways to the detriment of America.Patriotism

Labor unions hide behind the lawyers and the criminal justice system to game and play LIC against everyone they consider an enemy.  ANTIFA, BLM, and every other paid agitator group in America burning, looting, rioting, and “protesting” need to be labeled what they are, terrorists.  Their actions need to be classified correctly as acts of terrorism.  A military tribunal called to investigate funding sources and hold accountable those paying and those committing terrorist violence in America.  There is no difference between a  terrorist in the IRA, a terrorist in Afghanistan, and a “protestor” terrorist in Portland, Oregon.  America, we need to understand LIC, and then we need to apply legal precedence to fix the situation America currently finds herself in!

© 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: Hope, Faith, Confidence, and Your Money

Life ValuedImagine you are going about your daily duties and visit the grocery store.  Where for a specific amount of confidence and hope, you complete an exchange for a product groceries.  Another trip sees you investing hope and faith in retirement using confidence to help protect against the vagaries of the future.  April 15th is fast approaching, where confidence in the government is measured through tax revenue, and government officials then spend your confidence on various projects where you hope the investment will be rewarded by improved roads, better economic conditions, and safety inside defensible and sovereign boundaries.

What is Hope?

Hope, according to Webster, is a feeling of trust, as an extension of an expectation, and desire, that something will occur.  For example, I hope for my diet to work, as I desire to lose weight, an expectation that exercise will aid in losing weight, and trust that my weight will reduce over time.  Does this make sense?

Wasting TimeI ask, because too often, when hope is mentioned, people immediately tie religious expectations and connotations to the word, then plasticize hope into being something it is not.  Hope is not an end goal but the journey to an expectation born of desire and bounded by trust in a system that supports a person’s hope.

What is Faith?

As detailed by Webster, Faith is both an expression of religion’s doctrines and complete trust or an expression of confidence.  Faith is the launch process of hope.  Going back to my desire and expectation to lose weight, I have trust that the doctor was correct in ordering me to lose weight.  Hence, my conviction in the doctor’s words is an expression of faith, and my action is putting faith and hope to work actually to lose weight.

Never Give Up!Complete trust is observable all around us daily, from inserting the key into the car ignition to start a car to the hours spent working where we trade our time (a precious resource) for a tangible item (paycheck) and in so many other ways and means.  Consider grocery shopping; we make selections using our best judgment, with complete trust that the products purchased will not make us sick from food-borne illness or the ignorant or malicious actions of other people.  Why does spitting in a police officer’s cup of coffee make us mad; because it breaks that complete trust that the same will not happen to us.

What is Confidence?

Detective 4Confidence is a unique term, and Webster spends an inordinate amount of time trying to capture the power of, and reality is confidence.  Confidence is “a feeling of self-assurance arising from one’s appreciation of one’s own abilities or qualities; firm trust, a specific feeling  regarding the truth of something, a feeling or belief upon the reliance of someone or something.”  The key to confidence is your own self-assurance.  For example, you are assured through past transactions that your employer is not kiting paychecks.  Your confidence in receiving a salary drives you to be motivated and return to work each day.  When that trust is broken, you will leave and find new employment.  Hence, people do not work for companies, but for managers and leaders, they like.

Confidence is a reality when many people all have trust in the same thing, which creates societies, social standards, and governments.  Confidence in the government is expressed using the government’s monetary system to trade for products and services you would not have if you had less confidence in the government system.  Firm trust in the “value of the US Dollar (insert your own currency here)” leads to gains and losses in economic values.  Consider the events of the Christmas Holiday, which is fast approaching.  The individual expresses confidence, faith, and hope in holiday shopping.  The government uses the data of the volume of trades of confidence as a measuring stick in how well they are doing in government to improve a person’s return on investment.  Shopkeepers, stores, and others selling products and services represent a two-way street of faith, hope, and confidence as they trade with customers and with other suppliers, government, and stakeholders in conducting business.

ResilienceConfidence is never an unconscious decision!  One cannot have firm trust, faith, or hope, in something without being consciously aware and possessing experience and knowledge in that someone or something.  Hence, confidence is the conscious use of trust as a destination in the journey of hope, launched by faith.

What is spent when money exchanges hands?

Confidence, faith, and hope.  But, you claim, “That was my money.”  Really, what value does your money have?  The answer is nothing!  If I give you a piece of cloth/paper stamped with a 20 symbol on it, you interpret this as a $20 bill, having the value of 20 dollars, pounds, euros, etc.  That which we call money is nothing but faith, hope, and confidence in a governing system where products and services are exchanged for time and faith and hope through our individual confidence in the government.  But the reality is that the piece of paper/cloth is nothing, has no value, and can do nothing without the express faith, hope, and confidence of the one trading services or products for that value statement.

Dane-GeldBy removing the Gold Standard from money, we stopped trading in a fungible and tactile substance (Gold, Silver, Grain, Salt, Animal Hides, etc.).  We began trading in a measured system of confidence as provided by the government.  Your “money” is nothing but your faith and trust in the government sponsoring your system of confidence be that confidence called a US Dollar, a Rial, a Pound Sterling, a Euro, etc., you deal in nothing but confidence.  Raw products with tradable value, grain, precious metals, oil, etc., are all injected into the monetary system through investment and speculation markets, not the individual farmer, rancher, miner, etc.  Who receive their wages not through trading their products but by trading their efforts and time with their confidence in an employer-supported by a functioning government system.

Your Money!

I love this phrase!  Rather, I like asking the question, “What does ‘Your Money’ mean to you personally?”  The answers never cease to amaze and horrify me.  I asked a 20-something this question and was told it was what they spent on college.  So, I wondered does your education and academic success provide the value of the investment of money?  To which, the 20-something had no coherent answer.  Let me be clear, the value of an academic gamble is not found in the money made with an employer but in the power of changing how you think and approach the world. Educational costs have far exceeded the value of the academic experience.  The connection between the value and cost of education is warped and twisted, and the only people winning are governments, unions, and the controllers of educational experiences.

Detective 4If I hold a piece of paper/cloth with 100 stamped upon it, I could claim I have money.  Except, I do not have money; I have a bit of cloth/paper with ink declaring that piece of cloth/paper had value, but only if I trust that government.  Consider the trouble Venezuela is currently in, the thin ice of economic problems Mexico, Greece, France, and so many other countries exist presently.  The confidence in those government systems is shaken.  The value of that currency is weak compared to other currencies.  If a blacksmith in Ohio produces a sword, and similarly skilled blacksmiths create the same sword in Saudi Arabia, China, Vietnam, Peru, and Cuba, why does the value of that sword change?  Are the sweat and efforts of the blacksmiths different; no!  Does the value of experience change; no!  Did the cost of gaining that knowledge, experience, and talent change; no!  Is the steel cost to mine different; only because the governments’ currencies are different.  Does the value of the sword adequately represent the value of the currency exchanged; more than likely, No!

What is “Your Money?”  For when we lose confidence in the government, the value of the currency slips, which leads to expressions of fear, a lack of faith, and a refusal of the citizens to hope and trust.  Recently, I had a statement arrive declaring I had XX thousand dollars in a retirement account.  Is the value of those funds found in the report received; no!  The value of those “retirement funds” is located in the government system’s future, invested with faith, on a journey of hope to the time that I can remove those funds without being taxed to death.  If the value of the dollar goes down, those retirement funds are useless.  If the dollar’s value goes up, more faith, hope, and confidence are being invested in the government operations over time.

LinkedIn ImageA “Liberty FIRST Culture” understands their money relationships to government, is engaged in preventing government abuse as that leads to lower values of currency, and the lower the value of a currency, the more expensive products and services become.  Kate, the blacksmith from the (2001) movie “Knight’s Tale,” is absolutely correct, “Each drop of sweat has a price!”  But the price of that sweat is not always competitive with the currency used to remunerate that effort, all because of hope, faith, and confidence in the government managing the currency.  Think about that the next time you are asked to vote!

© 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: M.I.C.E – The Driving Force for Politicians

ApathyM.I.C.E is an acronym I first discovered by reading Tom Clancy and representing Money, Ideology, Compromise, and Ego (MICE). Tom Clancy used this acronym for the reasons why spies become spies, I find MICE equally describes those seeking political office in democratically elected societies.  Frankly, I think it is time to shift the paradigm on how and why we select politicians to represent us.

Money

There is a lot of money buying influence in politics.  Interestingly, the money earned by a political representative is not the main reason for getting elected.  The money these representatives are looking for and desiring is the purchase of influence.  Consider Speaker Pelosi (D), 2018 she had assets of $257 Million, with $97 Million in liabilities, meaning that she has $1600 Million in assets.  Speaker Pelosi (D) makes $223,500 annually.  Pres. Biden has similar disparities between income and assets after liabilities.  Many of America’s most infamous politicians have the same disparity between income and assets after liabilities.  Purchasing influence is a massive business in politics.  Does anyone still remember all the influence-peddling the Clinton’s did and continue to do?  Even before they came to the White House, their influence-peddling was infamous!quote-mans-inhumanity-2

Ideology

Ideology, according to Webster, is “a system of ideas and ideals, especially one which forms the basis of economic or political theory and policy.”  What ideological processes define a Republican?  What ideological processes define a Democrat?  Are these ideological beliefs stable, or are they changing like dirty socks for clean socks?  What can you observe about how ideology predicts behavior in the politician?

These are serious questions, as too often we, the American Citizen voting, cannot tell the difference between a Republican and a Democrat.  Worse, how often is what is said on the campaign trail thrown away the second the vote totals indicate a win?  Sen. McCain (R) is a perfect example of this; his ideology and spinelessness led many of his constituents to ask why the difference between actions on the campaign trail and actions in political office.

Want to know how someone will act long-term; ask them to define their ideologies, for there is nothing better to predict behavior than ideology.  How do you spot a thief in a crowd; ask them where they stand on taking a pen from a cashier after signing a check.  Ideology is the penultimate method for predicting behavior, and not enough ideological emphasis is being placed upon politicians seeking office!Government Largess

Compromise

Speaking of Sen. McCain (R), he was a legend on compromising.  Unfortunately, Sen. McCain’s definition of a compromise included throwing the baby out with the bathwater.  Compromise officially is defined by Webster as a method of settling a dispute through mutual concession [emphasis mine]!  Each side makes concessions to reach an agreement that benefits both parties equally.  As a point of reference, it is often said that a good compromise leaves everyone mad and disappointed.  Yet, politicians continually abuse this word, manipulate their voters, and chaos ensues in the name of “compromise.”

Next time you hear a politician discussing compromising with the opposites on the side of the aisle, ask them what was given up reaching a compromise; if the giving was one-sided, it was NOT a compromise!  Take any recent legislation, and you will find no compromise, lots of hands getting greased to purchase influence, and a ton of abused and injured voters!Life Valued

Ego

The official psychological definition of ego is “the part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.”  However, the only people using this definition are missing the point.  For the rest of the population, our definition of ego is much easier to understand.  The ego is a person’s image of their own self-importance, and where politicians are concerned, narcissism (a thoroughly overinflated ego) describes a politician perfectly!  Ego has been synonymous with self-conceit forever, and herein lies the problem where political leaders have been selected for too long.

Detective 4Canada’s President Justin Trudeau, Germany’s Chancellor Angela Merkel, US President’s Barack Obama, and Joe Biden, France’s President Nicolas Sarkozy, and so many other world politicians fill the ego bucket with self-conceit and narcissism that we could run out of ink trying to print a complete list!  Therein lies the answer, those desiring to hold public office should understand that ego plays a role in defining ideology, and ideology predicts future behavior.  The natural order contains natural consequences, for these bitter self-conceited people hold onto power long after their ideas have turned to destruction, the harm they cause has reached epic proportions.  The citizenry is numb from all the problems created by the egotistic politician.

While the book, authored by John Steinbeck, “Of Mice and Men,” has little to do with this post, it does proclaim this post’s sentiment.  There are MICE, and there are Men.  MICE who desire to be controllers of their fellow men and men and women who resist and continue to strive to see justice done in their name by elected representatives.  None of those for whom MICE applies should be allowed to hold elected office.  The only way to ensure a change occurs is for voters to demand more information on character, ideology, and ego and watch carefully for selling influence.

Millstone of Designed IncompetenceIt is past time for people to gather, stand, and insist upon better government representatives, including improved behavior from current sitting representatives.  I weep for Germany’s neighborhoods destroyed by Merkle’s policies.  Canada not only deserves better representation but cannot afford the government blight thrust upon her.  France, Greece, you will have to change, fundamentally change, or your countries will be lost to history as failed experiments.  America, what can I say that has not been said before; you need to understand what a Republic is, why a Republic is better than a Democracy, and you need citizens to awake and arise to the power they possess in cutting the strings to the millstone about your neck.  The millstone of government is killing you, and if you die, the world will be lost!

© 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.

Election Fraud – Understanding Begets Opportunities for Change

Image - John Wayne QuoteA noted fact in American History, not favorable, but factual; in every election the dead will vote for the political left.  When the dead vote, this is fraud.  Fraud is generally defined in terms as, any wrongful or criminal deception, with intent, that results in financial or personal gain.  Logic relates that the dead, being dead, are not eligible to vote in an election; yet, somehow, the dead continue to vote.

To qualify for the legal term of fraud, there must be three conditions met, deception must occur, intent established, and someone gains personally or financially.  A friend asked, how is the dead voting fraudulent, meeting the three criteria for committing fraud?  First condition to meet fraud, a deceptive action is committed, completing the election ballot for someone else, or in someone else’s name is deceptive.  Second condition, intent; intent is established in criminal law by showing that first the defendant knows right from wrong, then can understand what they are doing is wrong, and both conditions can be met with circumstantial evidence.

For example, simply asking a person if they knew what they were doing when performing an action, and if that person can distinguish between right and wrong after the action has occurred, can easily establish intentions.  If a person has chosen previously between right and wrong, their intent can be used to reflect they still know right from wrong, barring any traumatic experience or injury to the head.  Again, intent is easily witnessable and provable.

Third and finally, personal gain or financial profit.  Essentially the Greeks gave us this piece of legal thinking by asking, Cui Bono and Cui ProdestCui Bono? is a rhetorical Latin legal phrase used to imply that whoever appears to have the most to gain from a crime is probably the culprit.  Cui Prodest? is a Latin term which means “who profits?”.  Generally used to raise a similar question as “Cui Bono,” and specifically to point out the fact that those who benefit from an event are likely to be responsible for causing that event.  Thus, since the Political Left, in America’s political system this is currently the Democrats and those who support leftist political ideology, are the only party to benefit from dead voting, it is easy to draw a conclusion that the political left is intentionally committing fraud in elections for personal gain.

Government Largess 2What is gained in committing election fraud; the gain is political power, favorable laws, a compliant media to fawn upon you, and personal gain.  My friend asked me how a politician gains financially by being elected.  I responded, how did Ex-President Bill Clinton in the year after leaving the White House, just making 57 speeches, earn $13.7 Million in speaking and writing fees?  One year, 57 different speeches, a little writing, and $13.7 Million USD just appeared.  This is but a single example of how politicians, and ex-politicians, turn momentary fame in the ballot box into lifelong Millions of dollars.

My friend was very specific, how do you tell who committed the fraud in elections?  Do you try to go to the source, as in who completed the ballot, or do you just lump the fraud together into one big case and hold those gaining from deception responsible?  I do not know how to answer this question and stated so.  In my small knowledge about the law, the answer to me, appears to lie in legal strategy played by a prosecutor; however, I could be very wrong.  What I do know, is that “those that gain, need to either hang together, or hang separately, but they need to hang!”

Here is the real problem with fraud of any kind, but especially election fraud, trust.  When those voting lose trust in the process to elect a candidate to a political office, regardless of politics, that trust is fickle.  Easily lost in seconds, never fully regained.  Worse, the taint of fraud cannot be expunged and all in that election are tainted equally, the winner and the loser.

Lady JusticeHowever, one of the legal issues facing the calls to clean up voter records and the fraud of dead people voting is the legal hairsplitting between intentional and unintentional fraud.  Unintentional fraud is also referred to as negligent misrepresentation.  If you, as a citizen concerned about election fraud are confused, it is okay, this is a lawyer’s bread and butter, and a logical person’s headache.

Several of the legal challenges made by politicians after an election have been thrown out of court or received judgments that the case has no proof of fraud, even though there are clear indications that a normal person can see of dead people voting and a dead person voting is fraudulent.  All based upon the problems of holding a group responsible for committing fraud, versus a single person.  Herein lies the problem.

A county in the United States has an election office.  That county’s election office holds the reigns on county elections, overseen by the state.  Under the US Constitution, State’s Rights have already caused a Civil War and as such remain a very testy issue in the Supreme Court.  The Federal Government, and other State Governments, cannot force, cajole, threaten, or coerce a state to clean up their voter rolls.  Thus, if the dead vote in an election, this is a State’s Rights issue, not a Federal Government issue.

2017 and 2018, President Trump made an honest attempt to ask, beg, and entice the individual states and counties to clean up their voter rolls.  Except, Corporate Media, Democrats, and some Republicans fought tooth and nail to squash President Trump’s efforts to have an honest and transparent election in 2020.  My friend asked me, how do you know the voter rolls need cleaned up?  Because during the run up to the 2020 election, I began receiving text messages from state’s I have not lived in for years or decades, asking me to vote for a specific candidate or platform.

LinkedIn ImageAs an independent voter, I generally never become entangled in the mess surrounding elections.  Yet, in 2020, not a day past without a text from Wisconsin, Ohio, Maine, Wyoming, Michigan, Montana, New Mexico, Utah, Washington, or Arizona political action committees or the democratic party representatives contacting me to urge me to vote for a democratic candidate or democratic favored piece of legislation.  While I have not checked, I would not be surprised to see I had voted in every single previous state of residence, all because mail-in ballots were sent out and my records were still live and active on all those state rolls.  If I, as an independent voter received this harassment, I can only guess what it was like for those who had political party membership.

Still the courts, at the bequest of lawyers, refuse to call fraud, and judge a logical decision.  If a dead person votes, someone committed fraud.  Since the fraud always benefits one party over any other party, than that entire political party needs to be held accountable for perpetuating that fraud, encouraging fraud, and for benefiting from the fraud committed by operatives.  Election fraud does not happen only through dead voting.  There is vote harvesting, where operatives are expected to canvass neighborhoods to “help” those unable to get out to the polls to complete their ballots.  Except reality reflects a bunch of people sitting at tables filling out blank ballots.

We also have another interesting technique in committing fraud, hacked election machines.  Where technically the voter machine “glitches” and a republican vote becomes a democratic vote.  Except, these errors are not actually errors, but programmed methods for stealing an election in the United States.  Fraud and theft are pretty much the same crime, while the lawyers wet themselves from trying to separate these into two different crimes, the fact remains if John Smith votes Republican and all John’s votes are turned democrat through technical means, John’s voice has been stolen from him and this is basic theft.  Not a technical malfunction, pure and unadulterated theft.

Mail-in ballots in the run up to November 2020’s election was a big issue; why, because this is another excellent method for stealing ballots, negating a person’s voice, and perpetuating fraud.  Mail-in ballots in 2020 had problems being delivered to voters, being returned to the county timely, or at all in a couple of cases, and being handled in a manner that allowed a person’s voice to be marked according to their preferences.

President AdamsIn every county and state in America, ballot dumps occurred.  In the six states causing the most problems, Arizona, Michigan, Pennsylvania, Georgia, North Carolina, and Nevada, we find the most egregious ballot dumps.  Pennsylvania had 90,000 votes dumped into counting in the early hours.  Where did these votes come from?  Why did more than 89,000 votes for Biden and a third-party candidate, when the regular population mix would have these vote totals much lower?

Finally, we have the real issue in correcting, auditing, and holding honest elections, money!  Holding an election is expensive; thus, a taxpayer would think that those counting the ballots would be considerate and do their jobs right the first time.  Except, this is not the case, and every day that passes without a certified election increases the costs of that election.  Add in court and legal fees, and the election costs skyrocket into deficit spending rapidly.  Yet, when fraud occurs because those in the county election offices actively work to muddy an election’s results, why are these people not required to pay for their political shenanigans?

Consider a simple example, a baker makes a mistake on a product, the costs involved in the first attempt are the bakers to absorb, not the customer who needs the product delivered.  A car mechanic cannot escape the costs and consequences if they make a mistake in diagnosing a problem, or if a newly repaired vehicle winds up causing an accident due to mechanical failure.  Yet, these election results, a product of the county election officials hired to perform an honest election, too often get certified and real harm is done to the taxpayers in that county, and the officials remain in comfortable jobs able to meddle in future elections to their greedy little hearts content.

The Duty of AmericansIs the problem clear regarding where the fraud occurs; because, at the end of the day election theft and fraud is a local government issue with national repercussions.  Due to a law that insists that every veteran applying for a city, county, state job gets interviewed; I interviewed with a county election office.  The interviewers all came in spouting, neigh on screaming, their political agendas, we had a well-used PETA coffee mug, coats with patches and marketing materials for democratic candidates and clauses, a parking lot full of leftist political stickers, and I was hoping to obtain a job I was overqualified for, but desperately needed.  The interview began with a hostile attitude towards me and I knew within 2-minutes that I was not going to win this job.  All due to my not declaring publicly my political leanings.  Diversity laws include diversity of thinking which empowers checks and balances in operation; yet local governments across the country have become silent mouthpieces for totalitarian government.

America, the 2020 election is a sham, a farse, a perfect example of how to steal a federal election, and every candidate is equally tainted from the fraud committed.  Fixing the election fraud will require local elections to demand a clean sweep of every single elected official and staff member in local government election offices.  A full and complete refusal to use technical means to handle elections in any way, shape, or form.  Plus, fraud laws need tightened with harsher consequences.  The 2020 election was stolen, and a usurper is set to fill the presidency, fraud in elections has reached the ultimate tipping point, and represents a breakdown of trustworthy government from the dog catcher to the President, taints every single elected official, and requires the citizens of America to reclaim the government and demand those parties responsible, including the corporate media, to be held accountable!

PatriotismIf the American Republic is to endure America must have fair, transparent, and trustworthy elections as the first and most basic building block of responsible government!

© Copyright 2020 – 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 pictures.
All rights reserved.  For copies, reprints, or sharing, please contact through LinkedIn:
https://www.linkedin.com/in/davesalisbury/

Leading the Call Center: Flavor of the Month Philosophies

Chinese CrisisHaving just completed a project that saw me leading a team in a call center, I want to make something clear; quick fixes and flavor of the month philosophies do not work.  I cannot stress this enough; yet, the practice continues to the detriment of call center employees and the organizations served by call centers.  Flavor of the month philosophies is the latest bestseller to fix the problems in business.  We have all seen these programs including, FISH, WAIT, Strengths Quest, and so much more.  These ideas are good ideas, and they possess value, but when changed monthly, these programs, never do more than briefly mark the surface intellect of the call center.  I am not disparaging these ideas in the least; let me elaborate as to why the flavor of the month idea fails.

The project previously mentioned when concluded saw the call center director very much converted to a program of definite value in and using one’s strengths entitled Strengths Quest as presented by Clifton, Anderson, and Schreiner (2006).  The culture of strength promotes unity, and by extension, organizational power, when combined intellectually, becomes the corporate culture.  Integration in business, especially in call center operations, remains crucial to bottom-line health.  The call center director invested a lot of organizational resources to capture everyone’s strengths, publish these advantages, and use this information to measure the call center.  The problem was the staff has no idea why they are investing company time in completing the “Clifton Strength’s FinderÒ (CSF),” and many completed this assignment while taking calls and distracted.  How verifiable is the data if the attention of the person completing the task is diverted?

My assignment, as a call center supervisor, included gauging the employees in the call center about their strengths.  Of the 10-employees in the call center, two had forgotten and blatantly said they do not care.  Three expressed a desire to retake the CSF to more fully focus on the task instead of completing it between calls.  Four employees asked why and what is the purpose of taking the CSF.  Finally, all the employees, when asked how they use the CSF data in their daily actions, expressed the same answer, I do not know.

Let’s be clear; there is nothing wrong with the latest flavor of the month programs to improve an organization, provided the leaders understand change, embrace change, train and teach “the what” and “the why,” and then remain committed long after the excitement over the bright new object fades.  I had the misfortune of working in a call center where the entire corporate culture was expected to change with every fresh flavor of leadership, and the organization is a mental mess.  What is a leader to do when each new flavor-of-the-month is presented as a potential fix for organizational dilemmas?  I suggest the following as a launching point for corporate discovery and leadership support.

  • If the organization is going to invest resources in a particular program, do not change for a set period, which includes pre- and post- measurement and evaluation. If the organization does not know where they start, they can never know what happened or where to go in the future.blue-money-burning
  • Organizational change must be more than surface polish or potential money (Blue Money) is lost, never to be recovered. Organizational change needs to fundamentally affect the organization and be allowed to produce measured results.  Does this mean that if something is not working, we keep at it?  No!  It means to provide sufficient time and measurement to gauge the application and the organizational change.  Many times beta-testing the proposed change can identify the processes, procedures, and other trouble points to be mindful of, or correct in beta-testing, to ensure full organizational change may occur with a higher chance for success.
  • Get everyone involved, enthused, and a willing advocate for the change. Getting everyone involved is not producing marketing materials and desk references.  Getting everyone involved requires explaining why and detailing what in the organizational change.  Getting everyone involved means there will be feedback, pushback, and rebellion.  Expect pushback, but never allow pushback to derail reform.  Pushback is a healthy activity that provides essential opportunities for the leader to explore solutions, answer questions, and evaluate the results.
  • Teach and train; train and teach. Learning should be a constant and desirable outcome of organizational change.  Teaching is not training, training is not teaching; but, both are critical skills needed for leaders and learners.  Teaching is helping someone else acquire knowledge.  Training is teaching a behavior or ability.  Teaching is usually one-way communication using measurement tools, e.g., tests to gauge knowledge learned and retained.  Training should be two-directional communication, is completed through experience in closely monitored environments, and includes 360-degree feedback to improve the training environment.  Never allow teaching and training to become the same confused term; while the words are closely related, they are not the same action.
  • When was the last time you discussed what you are reading with front-line employees? When was the last time you engaged a front-line worker about what they are reading, thinking, and ask for suggestions to improve?  When was the last time you asked to be trained on a process, procedure, or organizational action by those who do it all day?  If recently, did you ask why, a lot?  I promise you will be surprised when you have these conversations, especially since they open up opportunities to explain and expound, learn, change, adapt, and engage with those you lead.
  • Organizational change requires enthusiasm from all parties to begin to engage and deepen the shift from surface polish to fundamental culture adaptation. Enthusiasm takes many shapes, sizes, and colors, including the loyal opposition of followers, opinions, and feedback.  The leader must exemplify and honor, or support, the enthusiasm around them as a tool for succeeding in changing the organization.
  • Clarify intentions. Clarify processes.  Clarify procedures.  Clarify by asking follow-up questions and reflectively listen to obtain mutual understanding.  Clarification remains one of the most critical tasks in organizational change.  When confusion rears its ugly head, respond with explanation and follow-up, as detailed in two-directional communication.  When the comprehension is doubted, ask for feedback as an opportunity to increase clarification.  Clarification is both a tool and an opportunity; do not waste this opportunity and tool by neglecting those needing clarification.
  • Organizational change needs a mechanism for gathering data from many sources, including the employees affected, the vendors, the suppliers, and the customers. Open the valve for data to flow back.  One of the most horrific organizational changes it has been my displeasure to witness was increased because the leaders operated in a vacuum and never allowed data flow that was contradictory to the previously agreed upon results.  The leaders in this organization worked hard to refuse hard data, which contradicted their bias, and this ruined the business, the employees, and the customers.

I cannot guarantee following all these points will make organizational change succeed, roses bloom, bottom lines inflate, rainbows dance, and all of life fall into organized lines leading ever upward.  I can guarantee that without these points, organizational change that promotes an environment of learning will never be more than polish.  Consider the axiom, “Lipstick on a pig.”  The lipstick is not bad, the pig is not bad, but placing lipstick on a pig is out of place and does nothing to improve the pig.  Flavor-of-the-month changes are lipstick on a pig, not bad, but out of place until the entire organization is on board and enthusiastically supporting the move, and proper measurements are in place to gauge, measure, and report the change.

Business theorist Chris Argyris put forth a model, later discussed by Senge (1994) explaining our thinking process as we interact with the world.  This seven-step method is called the Ladder of Inference; according to this model, as we move up the ladder our beliefs affect what we infer about what we observe and therefore become part of how we experience our interaction with other people.  Organizational change can be plotted along the same model or ladder of inference.

Leadership LadderOrganizational change begins with information output; then collect data, preferably through listening and observation while doing the work; interpreting the data includes obtaining data, evaluating meaning, deciphering intent, and understanding value.  Please note, the assumptions should not be made in a vacuum and could be wrong; thus, always return to the data producers and ask questions to ensure mutual understanding.  Once conclusions are mutually understood, they become beliefs; but, don’t stop until beliefs become actions.

If a model is needed, please benchmark Quicken Loans and Southwest Airlines, both organizations are doing a tremendous job with the ladder steps, especially moving organizational beliefs into motivated organizational action.  Remember, one does not climb a ladder to view the horizon and scenery, they climb a ladder to begin working, carrying the tools needed to perform the work, and possessing certain knowledge that the work can be accomplished.  Climb the ladder of success with the intent to work, achieve, and move forward.

References

Clifton, D. O., Anderson “Chip,” E., & Schreiner, L. A. (2016). Strengths quest: Discover and develop your strengths in academics, career, and beyond (2nd ed.).

Senge. P. M. (1994). The Fifth Discipline: The Art and Practice of the Learning Organization. New York: Currency Doubleday.

© 2017 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.

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