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Panama is Small Change

Panama is Small Change

There is a conspiracy engaging in theft, counterfeiting, fraud, extortion, blackmail, bribery, influence peddling, drugs, terrorism, and war that makes the Panama Papers’ exposures look like a small-town police blotter account of juvenile shoplifting. This criminal enterprise launders trillions, not billions, of dollars; it involves major political, business, financial, academic, and media figures in the US and around the globe, and it has perpetrated its crimes far longer than Mossack Fonseca’s clients’ have hid their money and illicit activities.

The dark conspiracy is the US Government. It takes over $3 trillion a year in taxes. Anyone who refuses to pay is sent to jail. Stealing one dollar out of every six the US economy produces is insufficient for its purposes, so it borrows anywhere from $500 billion to over $1 trillion a year. Future interest payments and principle repayment add to the involuntary obligations imposed on the productive…and their children and grandchildren.

The law forces its populace to accept pieces of paper and computer entries—irredeemable for anything more valuable than identical pieces of paper and computer entries—as “legal tender.” The government creates said paper and entries at will. Their value, such as is, rests on compulsion and unenforceable promises by the government not to create too many of them. Such promises have invariably been broken, and a dollar has about 4 percent of the purchasing power it had in 1913 when the central bank was established. That 96 percent depreciation counts as more theft; the government is the primary beneficiary from currency depreciation.

Every conspiracy needs accomplices. With stolen and counterfeit funds, the government bribes millions. Their acquiescence makes them complicit: money for votes. Nothing is as nauseating as thieves demonstrating their “virtue” by using stolen funds to maintain themselves in power. Of course they keep a generous portion of what they steal; the Washington metropolitan area is the richest in the country.

…click on the above link to read the rest of the article…

The Biggest Short

THE BIGGEST SHORT

Some reversals of financial trends prove so momentous they define the generation in which they occur. The stock market crash in 1929 kicked off the Great Depression, which ushered in the welfare and then the warfare state and redefined the relationship between government and citizens.

Bonds and stocks began their bull market runs in the early 1980s. Now, those markets are fonts of optimism increasingly unhinged from reality. The US has come full circle. The New Deal and World War II marked a massive shift of resources and power to the federal government. Conversely, financial reversal will fuel a virulent backlash against the government and its central bank.

Such epochal reversals are usually foreseeable. However, they are long in the making and involve such a confluence of powerful forces that usually only a handful get the timing right. Calling the end of the current bull markets has been difficult because of governments and central banks are desperate to keep them alive. Central bankers prattle on about the wealth effects of elevated stock markets and how low interest rates promote debt and consumption, supposedly the fountainhead of economic progress. Those emissions are noxious nonsense. Central banks promote rising markets because they are under the thumbs of their governments; independent central banker is an oxymoron. High stock prices are a popular barometer of social mood, while high bond prices keep interest rates low, benefitting the largest borrowers, governments.

Consider the absurdity of loaning money to any of today’s welfare state governments, including the most indebted of them all, the US government. Most of them haven’t run an honest, GAAP budget surplus in decades. They have compiled staggering amounts of debt relative to their economies’ GDPs.

…click on the above link to read the rest of the article…

How to Defeat Your Government

How to Defeat Your Government

In a recent article, “How to Defeat Your Enemies,” SLL maintained that governments and their people were natural enemies, and that the most powerful adversarial tactic is “getting one’s enemies to fool themselves.” The article detailed the effective use of this tactic by Osama bin Laden and al Qaeda. The question arises: how can the American people use it against their natural adversary, the US government?

Lies are always misrepresentations of reality, and reality always wins. The US government rests on an inherently unstable foundation of whoppers—big lies so huge they would make big lie proponent Adolf Hitler blush—some of which were detailed in the earlier article. The first trick to defeating an enemy is to ascertain its biggest weaknesses and the lies, which it feeds itself, flowing from those weaknesses.

Every government craves as much of its country’s resources as it can borrow, swindle, and steal. Our government’s finances are a series of lies. The first is that most people who pay taxes do so voluntarily. That’s a testable proposition. Make tax payments truly optional and voluntary, with no penalty and no civil or criminal liability for nonpayment. How much taxes do you think the government would collect? The taxes collected as a percentage of the taxes formerly collected would be an exact measure of the “voluntariness” of the tax system.

Closely linked to voluntary tax compliance is people’s willingness to back the government’s and the central bank’s debt. Creditors loan the US government money because the government has first call on the income and wealth generated by the world’s most productive economy. Besides the provision of a legal framework (currently a tiny part of its budget) the government has little to do with actual production, and often impedes it.

…click on the above link to read the rest of the article…

Olduvai IV: Courage
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Olduvai II: Exodus
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