NASA RELEASES EXPENSIVE PROPAGANDA CAMPAIGN AGAINST AMERICANS PAID FOR BY TAXES AND BORROWING

However interesting it is to see the earth from far above, this short YouTube clip released by NASA is little more than propaganda to encourage sci-fi people (skiffies) to keep paying taxes and to keep pressuring congressmen to up the NASA budget.

It's all too convenient when the deficit-funded spaceman mentions the small USA cities of Lancaster and Palmdale in the high desert of Southern California above Los Angeles, specifically mentioning those are the cities where the no-longer-in-service NASA space shuttles were built. Of course, the NASA spaceman narrator has hinted that building shuttles means jobs.





NASA is not unique in this respect. Almost every government agency authorized by Congress engages in propaganda against Americans to encourage Americans to keep demanding government managed services.

Americans get encouraged to join de facto groups as well as formal pressure groups, which exist solely to lobby Congress for the incessant spending and expansion of budgets for whatever their pet desires might be.

That is the essence of corporatism. That is what corporatism means. Corporatism means living by organizing into groups on the basis of allied interests and seeking codified (legalized) status and privilege for being a member of that group. Most often organization arises around these: academic, agricultural, industrial, ethnic, labor and military.

Corporatist-indoctrinated Americans are so easily suckered by feel-good, apple pie, nationalistic propaganda. Most often, these kinds of Americans are the first to shout, "There ought to be a law" whenever their indoctrinated beliefs, which define their faux morals and irreality, get challenged by the living ways of others.

Americans will continue to live under the yoke of Congress and all of the lesser, petty legislative houses of their states and counties and cities as long as such entities can use taxes and borrowing to pay for propaganda to gain for support by factional Americans.

Likely, most Americans never have heard of James Madison, the fourth President of the United States. Historians consider Madison as the "father of the Constitution" as well as one of the anonymous writers of the Federalist Papers, the newspaper essays written to convince Americans to support the passage of the second constitution of the United States of America.

Madison wrote the tenth essay, today known as Federalist 10. In the essay, Madison warned against special interest groups who would pursue the group interest over the general welfare of all Americans and the individual rights as well as each one's indivbidual liberty.

If you don't know the difference between right and liberty, the latter also said freedom, then read LAW VS JUSTICE. GOVERNMENT VS SOCIETY. POLITICS VS YOU.

Here is the text of Federalist 10. If you only ever read one Federalist Papers' essay, this is the one to read.

Read more ...

AMERICANS LIVING IN FOREIGN LANDS SHOULD TELL CONGRESS TO FACTA-OFF.

So today, Dylan Griffiths of Bloomberg reported  the number of Americans renouncing U.S. citizenship stayed near an all-time high in the first half of 2014 before FACTA rules came into force. Between January and June, 1,577 once U.S. citizens renounced their citizenship to U.S. embassy officials.



Since July 1, the Foreign Account Tax Compliance Act has been in full effect. The Foreign Account Tax Compliance Act decrees that U.S. citizens who live outside the USA to report their financial accounts held outside the USA to the IRS on behalf of Congress. Bizarrely, the law also requires foreign financial institutions to report to the IRS about their customers who are U.S. citizens.

NO ONE who earns income outside the borders of the fifty states which comprise the USA should pay taxes to the U.S. Congress. No one.

Disgustingly, Congress believes they are owed an unearned share of profits of U.S. citizens living elsewhere in other countries like Canada and Australia. It's neither moral nor legally justifiable for Congress to demand taxes from anyone earning income outside the USA. Greedy Congress "men" yearn for this undeserved tax revenue so they can increase the balance owed on their giant-sized Congressional debt credit card, wrongly parroted by most as the "national debt" or "federal debt".

When the authors of the second constitution wrote rules giving Congress the capacity, authority and thus power to lay and collect taxes, those authors wrote their taxation design in Article 1, sections 2, 8 and 9. Enough of the delegates from the various states ratified the constitution enshrining that power into law.

In Article I, Section 2, the authors wrote,

"Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers, which shall be determined by adding to the whole Number of free Persons, including those bound to Service for a Term of Years, and excluding Indians not taxed, three fifths of all other Persons."

Specifically, Article 1, Section 8 states,

"The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;"

In Article I, Section 9, the authors wrote,

"No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census of Enumeration herein before directed to be taken."

and

"No Tax or Duty shall be laid on Articles exported from any State."

So the authors' made explicit their design:

1. Direct taxes shall be apportioned among the several states.
2. The congress shall have power to lay and collect taxes.
3. Direct taxes shall be apportioned by the results of the census.
4. No export taxes of any kind.

By apportionment, the ratifiers agreed that Congress would be restricted to collecting direct taxes, such as an income tax, based on the percentage of each states' population to the total for the USA. So, if New Yorkers had 10% of the population of the USA, and if Congress levied an income tax, New Yorkers had to pay 10% of all income taxes laid by Congress.

In effect, apportionment acted as a block against Congresses from levying income taxes.  Later, after the 1895 U.S. Supreme Court declared a  federal income tax unconstitutional because it violated this rule of apportionment in Pollock v. Farmer’s Loan & Trust, another Congress decided that apportionment acted as shackles against them, so they passed the 16th Amendment, in which they wrote,

"The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration."

Interestingly, before the 16th amendment, the Constitution had no mention of income.

Samuel Johnson, the devout Anglican lexicographer first published his A Dictionary of the English Language in 1755. Looking at the third edition, published in 1768 before the writing of the second constitution as well as the tenth edition published in 1792 soon after the writing of the second constitution, we can come to see how the founders thought of income.

Both th 1768 edition and the 1792 edition have revenue and income as synonyms, having an head entries for each word, revenue and income. Both words meant annual profits received from lands or other funds as well as the produce of anything.

Both th 1768 edition and the 1792 edition have revenue as a synonym for the head entry rent, specifcally defining the word rent as annual payment; the money paid for anything held of another.

Both th 1768 edition and the 1792 edition have definition for produce. Produce meant  product; that which yields or brings. The secondary definition for produce is amount; profit; gain; emergent sum or quantity.

Both the 1768 edition and the 1792 edition have definition for yield. Yield meant to produce; to give in return for cultivation or labor.

So those who drafted and ratified the second constitution had in mind earnings from land whether crop sales or rent, as well as interest from loans as the source of taxes. Never did the so-called founders or framers envision taxing anyone's labor income.

After 1895, Congress demonstrated by action they needed to define income as more than rent and interest, hence, this is why the 16th amendment includes the phrase "from whatever source." Further Congress demonstrated the need to rid itself of the pesky apportionment rule, hence the phrase, "without apportionment among the several States."

Yet, it is quite clear that in the second constitution, the ratifiers authorized taxation only with respect to the states and the Congress which drafted the 16th failed to expand taxation beyond states.

Thus, IRS rules regarding taxation of Americans as U.S. citizens living outside the USA and FACTA are quite unconstitutional. In short, Congress lacks authority to levy taxes upon anyone outside the territory of the USA and specifically the states.

If Congress had that authority, the Constitution would contain something along the lines of what would be construed as absurdity by everyone, e.g.,

The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, without regard to any census or enumeration, without regard to citizenship or domicile, upon anyone living the earth over.

Congress needs a geography lesson. No one living in the 193 U.N. member countries, nor living in the 206 sovereign countries, nor those living in the U.S. possessions of American Samoa, Guam, Northern Mariana Islands, Puerto Rico or the U.S. Virgin Islands, as well as the free association countries of the Marshall Islands, Micronesia, and Palau owes Congress a penny, much less a dime.

There is no constitutional basis for Congress to claim the right of taxation neither on U.S. citizens living outside the USA nor upon foreigners wherever they live the earth over, except within the boundaries of the actual fifty states that constitute the USA.

That successive Congresses are so brazen to seek taxes from U.S. citizens earning income abroad and that many idiotic Americans support them in their Ahab quest shows the world how far Americans have fallen. Americans have wandered far from the path of the right way.

Read more ...

THE FACTS OF EVERYTHING MANKIND. REALITY. TRUTH. LIFE.

SOCIETY

• Before society there are only individuals. 
• Society is merely individuals as strangers who form association through property for mutual benefit of trade, self-interest and self-expression. 
• A society of property is the only kind of society that can arise among strangers, each who pursue self-interested goals.
• Property means right of ownership in things of matter, in things expressed from the mind and body, and in action to be done in future. Property does not mean the things owned. 
• Property is a bundle of rights  — right for possession (Jus Possidendi), right for using (Jus Utendi), right for destroying, alienating (Jus Abutendi), right for recovery when found in the wrongful possession of another (Jus Vindicandi).

TRADE

• Trade is about trading property for profit and nothing else.
• Only when property gets created, can trade arise between two persons. 
• The name for property put to making stuff is called capital.
• The name of property created by capital and yet to be sold in a purchase and sale is stock (inventory).
• The name for property put to purchase and sale for cash and credit is wealth.
• The name for property that can be sold to satisfy debts is asset.
• The name for property pledged against a debt is collateral.
• Buying power is the means by which anyone can acquire the wealth wanted after selling away wealth produced in surplus and not wanted, whether that wealth is embodied in a finished product or work through time.
• Profit is the name of sales at prices set by winning bidders less the outlay spent to acquire property for those sales.
• Profit signals potential return to increasing capitalization to gain efficiency and thus higher profit, lest competitors come to the party with better capitalization.
• Profit is the source of earned buying power.
• The Law of Prices governs prices.
• The Axiom of Profit governs producers. 
• The Law of Prices holds the winning bids of purchase and sale in the face of what is on offer sets the price.
• The Axiom of Profit holds the sum of sales on winning bids must at least equal the cost of production otherwise the producer goes to ruin.
• Trading wealth as property in cash and credit in a purchase and sale for wealth as property in things determines the extent of markets. 
• A trade is a purchase and sale for cash or credit, which can be settled by cash.
• No one has money as money is coined metal by weight and fineness and can exist without banking or government.
• Money does not exist anymore and hasn't for decades.
• In the days of money, money extinguished both cash and credit.
• Everyone trades with bank credit in purchases and sales.
• Today, because of the legal tender designation for cash, cash lets anyone settle contracts straightaway.
• Bank credits and cash constitute buying power.
• Bank credit consists of deposits and cash, which are evidences of deposits circulating in perpetuity.
• Cash is printed, circulating bank credits. 
• Cash consists of banknotes issued by a centralized authority.
• Cash stands as a money substitute.
• Cash exists as a money substitute precisely because politicians have decreed legal tender status for cash.
• Cash cannot exist without banking.
• Legal tender cash cannot exist without government.
• Gresham's Law reveals why cash has crowded out money.
• Without doubt, doing the work of money does not make something money. 
• Credit does the work of money and no one would ever say credit is money.
• Anyone who possesses cash has bearer negotiability, also said as currency.
• Bearer negotiability means the right of ownership in a thing gets passed along with honest possession in every sale or every exchange, that is, the property and the possession are inseparable.
• Inflation is a rise of bank credit beyond trade needs.
• Inflation happens first, and then deflation thereafter, always. 
• The damaging effects of inflation become revealed when the growth of credit outstrips the growth of output owing to credit being priced too cheap.
• Inflation leads to the profit squeeze when the sum of sales on extant prices set by winning bidders is below the outlay for production. When many awaken to their lacking the means to pay bills, this leads to crisis and subsequent collapse of trade. This collapse all know as recession or depression.
• Banking crises always happen at peak inflation right in the midst of prosperity.
• Labor is the working man's capital. 
• Work done is the working man's wealth, which she or he trades for wages, most often in the form of bank credits and less so for cash. 
• Wages paid is wealth traded away to hire work.
• Labor makes property. Capital makes property efficiently.
• Labor absent capital is living at bare subsistence. 
• It is to capital that profit can arise owing to efficiency of surplus output. 
• Wages and capital are interlinked.
• True wages move in lockstep with true capital spending per capita of prime age working adults (25-54).
• Only in proportion as labor becomes pricier that it becomes profitable to use cheaper methods (capital) to amplify labor.
• Increasing returns to capital arise when true wages go up. 
• There are no means by which living standards can better that do not involve the increase in wealth per capita of prime age workers.
• The reward for overcoming loss with property at-risk is profit. 
• It is a way for a people to ensure resources are being used properly and products being made that those who are efficient want.
• Price is an objective ratio that expresses a rate of trade of a trade quantity for cash or credit denominated in cash. 
• Value is an objective ratio of exchange in swap, which most know as barter. 
• Price and value arise from the same concept, except one has cash as one economic quantity for another. 
• Both are rates of trade, of exchange.
• By objective, we mean that someone not a party to a trade can observe the swap. 
• There isn't anything subjective about it. 
• Prices get set by double auctions, an English auction and Dutch auction happening at the same time.
• In an English auction, the highest bidder wins.
• In a Dutch auction, the lowest bidder wins.
• In most job markets, inter-employer competition has employers engage in English auctions (highest bidder wins) for workers, while inter-worker competition has workers engage in Dutch auctions (lowest bidder wins) for jobs.
• Where the winning bidders of employers and winning bidders of work seekers intersect, that is the clearing price, which, when it involves work, we call it a wage.
• In credit-as-capital markets, inter-lender competition has lenders engage in Dutch auctions (lowest bidder wins) for borrowers, while inter-borrower competition has borrowers engage in English auctions (highest bidder wins) for jobs.
• Where the winning bidders of lending and winning bidders of borrowing intersect, that is the clearing price, which, when it involves credit, we call it a interest.
• Both rent and interest to the capitalist are shares of profit paid in parts as a hedge against loss. 
• Trade, or commerce, or real economics has correspondence with both practical and theoretical civil jurisprudence as well as accounting.

PROGRESS

• Capitalism means living by using property that yield goods during production to produce a surplus of another product and hoping to sell that surplus for a price such that the sum of sales exceeds the cost to gain those sales.
• Said another way, Capitalism means living by using capital in pursuit of ongoing exchange of buying power.
• Poverty is the default starting status for all humans.
• Bare subsistence means consuming as fast as producing.
• Tribalists the earth over, whether in history or in contemporary times live by bare subsistence precisely because they believe in communal ownership and reject property.
• All progress, which is the moving away from bare subsistence, which is another way of saying poverty, has come from shifting away from the tribe and toward the individual and specifically through property, which is the right of ownership and never the thing owned.
• The entire progress of people from the savage state of tribalism to clans and from clans to feudalism and from feudalism to burghers / bourgeois and thus individualism has been the advent of property (right of ownership) moving from all to the individual. And once property of the individual has been established, the furtherance of progress has arisen solely from the diminution and mitigation of uncertainty in the face of risk.
• Competitive commercialism has raised all of mankind through all time above bare subsistence.
• True progress comes from enlightened self-interest.

PROSPERITY

• People escape poverty and enter into authentic prosperity through efficiency of wanted production. 
• It is through efficiency that leads to surplus and surplus that creates credit that leads to exchange, lifting others to specialize and become efficient, which sows the seed for forever ongoing prosperity.

GOVERNMENT

• Government evolves from society. 
• Government springs forth to enlarge the circle of strangers in society of property.
• Never does society evolve from government. 
• Before government there is society. 
• As a creation of strangers of a society of property, government is supposed to exist only for protection and certification of property so that men can engage in trade, which is the purchase and sale of property, rather than war among each other. 
• Government is supposed to exist to protect any individual at random and his property from a mob, whether foreign or domestic, who seek to dispossess him from his property unjustly either through the of force stealing or through rhetoric.
• Government is supposed to exist to certify claims about property to ensure truth about property. 
• The necessity of government arises because of rogues who feign willing participation in society, a society of property.
• Defensive governance, the kind whereby men come into harmony to protect property and thus echo the goodness of nature, is the only justification for governance of any kind.
• Legit government is about the administration of justice. Justice arises in maintaining right and redressing wrongs.
• Laws are unneeded for justice. 
• Law is secondary and unessential.
• Men of government through law impose duties and rights upon strangers in society of property and well as themselves acting as the government.
• Some of those duties include paying income taxes. 
• Some of those rights include fulfilling greedy desires. 
• Through liability, anyone is free to pursue right of action in civil fraud. 
• Men of government reserve to themselves right of prosecution in criminal fraud.
• Liberties and rights are not the same. 
• Right and power are not the same. 
• These words are not synonyms under law. 
• Liberties are acts of doing what one pleases, acts one can do without being prevented by law. 
• The sphere of legal liberty is that sphere of activity within which law is content to leave oneself alone.
• Liberty is when the law allows to one's will a sphere of unrestrained activity. 
• Liberty is the absence of duty imposed upon oneself. 
• Liberty is what you may do innocently.
• Right is when law limits the liberty of others on one's behalf. 
• Right is what others must do on your behalf, that is, their duty.
• Power is what you can do effectively. 
• Power is when law assists one actively in making one's will effective.
• You use your liberties without protest from the law. 
• You enjoy your rights through law by controlling the acts of others for your behalf. 
• You use your powers with active assistance from the law in making itself the instrument of your will.  
• One with disability lacks power to determine the legal relations of others (authority) or the ability to determine one's own (capacity). 
• When politicians don't establish law giving themselves authority (power) to do X and then do X against anyone, they have violated your civil liberty.
• Customary rights deals with customary law, which is any rule of action to which men voluntarily conform their action. It involves de facto observance. 
• Customary rights of customary law do not have the nature of civil law since the essence of civil law is recognition of a state in the administration of justice.
• The absence of law in the presence of government is liberty, not anarchy. 
• Anarchy means no government at all. It means without (a) an overlord (archy). 

POLITICS

• Politics is the art of using rhetoric to steal property.
• All political doctrines are doctrines of control. 
• The spectrum of political doctrine looks like this, from Left to Right:Communism ↔ Socialism ↔ Syndicalism ↔ Oligopolism ↔ Fascism
• There is no room for individualism on that spectrum.
• The debate of political doctrines is debate about which property should be impaired or stolen, who must suffer the consequences and who gets to do the the stealing and impairing.

POLITICIANS

• Politicians and bureaucrats get their property by confiscating it from others.
• Politicians can only take by implied force from the efficient and dole to the inefficient.
• Never in the history of humans have politicians lifted people from poverty. 
• When the day comes that all others rid themselves of politicians is the day that mankind shall enter into Utopia.

RETROGRESSION

• Greed is wanting property in stuff without having to trade for such fairly. 
• It is greedy for anyone to seek buying power without producing wealth in surplus that others are willing to trade to get in a purchase and sale, under condition of honest dealing.
• The picture perfect definition of greed is striving to get something for nothing from someone else, without giving up something wanted in honest exchange or in honest trade of purchase and sale. 
• Getting welfare, getting subsidy, swindling people by fraud — all accurately express the concept of greed. 
• Welfare takers, subsidy takers, fraudsters, all share one driving trait, a trait that nullifies character within them. They are all greedy to the core.
• Today, government, the creature, has superseded its creators. 
• Illegitimate government usurps power and starts shuffling people's property against their wants for the sole purpose of maintaining power over all.
• Men of government through law grant rights to fulfill greedy desires as a means to secure and enlarge their grip on power.
• Expressions of right in fulfilling greedy desires include welfare taking and subsidy taking. 
• The more who are dependent on welfare and subsidy for their livelihood, the more support they give to those holding power.
• Specific examples of the greedy include recipients of TANF, SNAP, Section 8, Medicaid, Medicare, Social Security, farm subsidies, Pell Grants, all workers of agencies engaged in doling the former as well as all workers in agencies regulating industries, which inhibit new entrants through inhibition of capital formation. Such agencies include the FDA, SEC, FAA, FCC.
• Men of government through law impose liability for those who operate outside the framework of subsidy and welfare to fulfill their greedy demands. 
• In all forms of illegitimate government you see socialistic, bureaucratic welfare, which, immorally retards man's progress as it inhibits individuals who receive such welfare from discovering who they are and what are their talents. 
• All problems arise when some usurp power through government to advance themselves by stealing or impairing the property of others, rendering government no better than rogues.
• Through the power of specific welfare Crony Politics, Crony Governance and Crony Regulatory Capture arise.
• To overcome the Axiom of Profit, politicians give subsidy to politically-connected producers or give welfare in the form of buying power to some consumers.
• Without property, the bundle of rights that include possession, use, destruction, transfer and recovery from wrongful possession, there cannot can not be liberty.
• Activist governance, the kind whereby politicians can dictate what one can do with property, reduces property to mere privilege. 
• At bedrock, activist governance is what is wrong with American life today.

IGNORING THE FOREGOING

• Without learning that wages are prices, that profits provide surplus buying power to buy anything else, that prices provide signals for potential return to increasing capitalization to gain efficiency and higher profit, that capital is the property of production and that wealth is the property of purchase and sale, no one can profit.
• Without trade, no one can know about money and credit and how central bank action affects the measure of their contracts as well as their saved buying power. 
• Without trade and theoretical civil jurisprudence, no one can know how taxation-provided welfare violates the social compact. 
• Without trade and history, no one can can know how welfare is the source of power, which lets politicians wage foreign wars of weapons and domestic wars of law against citizens.

IN THE END

• Mankind advances through individuals, property and the drive to hedge against loss and that alone. 
• Mankind falls into retrogression when reverting to neo-tribalism in whatever form, such as self-conceit, pseudo-scientific socialism or totalitarian socialism, which all know as communism.

YOU

• By accepting what others have told you as your beliefs, whether they had innocent or sinister motivation, you have lost all reign over yourself. 
• These beliefs that your imagination has inspired with power over yourself are ghosts who haunt you and control your soul, your self, your being.
• Being indoctrinated has been called the false self by many sages over time.
• When you take public opinions as your own, you let the world live within you. You stop living for yourself.
• You becomes possessed by others.
• Duty is faux virtue. 
• Conduct undertaken for show never could be virtue.
• Taking what another says is your shame if you reject doing what they claim is your duty is to enslave your free will.
• It is to stop living for yourself.
• There are many who claim they know what is your duty better than what you know for yourself to be true.
• You lack duty to fight the wrongful wars started by politicians.
• You lack duty to pay the bills of others.
• You must buck the crowd and do what others are not doing.
• Never should you imitate anyone.
• Imitation forces you to be self-conscious, fretting over whether or not you are imitating right.
• You must come to see the Bizarro Theater all around you.
• When you are dominated, when you let yourself get controlled by outside influences, you have lost the way. 
• You have become a zombie.
• An exorcism rids you of specters, shadowy tempters, ghosts of control, demons which haunt you.
• You can start over.
• You can make yourself anew.
• You can rescue yourself from errors of thought and action.
• You can trade your lesser motives for an all-encompassing motive.
• You must rise up and gain your independence.
• You gain independence by believing from your beliefs rather than trying to believe from thoughts given to you from others, their thoughts trying to masquerade as your beliefs.
• You must reject prevailing opinions, prevailing customs, conventionality. 
• You must reject the pull to adhere to the ethos. 
• You must reject conformity.
• You must become loyal to yourself.
• You must become a crypto-independent. 

Read more ...

PRICES HAVE BEEN FALLING FOR YEARS! INFLATION? MAJOR DEFLATION HAS BEEN UNDERWAY SINCE 2007. SO WHY DOES LIFE SEEM HARDER? THE ANSWERS ARE COMING NEO.

In THE CONSUMER PRICE INDEX NEVER HAS MEASURED INFLATION, EVER. CLAIMING SO HAS BEEN A EPIC CON JOB, I show how the  "the most widely used measure of inflation," the Consumer Price Index (CPI), fails to measure inflation precisely because those behind it measure prices and not inflation. 

The worst is the jokers at the BLS who conjure the CPI measure current inflated prices by a base of past inflated prices. Stop. Think about that for a moment.

With their failed method, they cannot eliminate the effects of inflation. In short, the CPI is bunco.

Milton Friedman was a famed economist, popular writer and winner of the Nobel Prize in Economics back in 1976. Friedman is famous in egghead circles for having said:

"Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output." 

Edwin Walter Kemmerer was a famed economist, a man known as "the money doctor." Kemmerer said this about inflation:

Friedman and Kemmerer point the way. Here is the Red Pill that you must swallow if you want to free yourself from the silly, false belief of rising prices means inflation. 

You must come to see that you do not have money. No one does. 

Instead, you have Federal Reserve Bank Units (FRBUs), or if you like better, Federal Reserve Buying Units. FRBUs are what pay for goods. All goods get priced in FRBUs. 

Money is coined metal by weight and fineness. Always, money can exist without banking and government. Cash only can exist with banking and banks. Legal tender cash needs banking backed by the force of government.

In the fiduciary monetary system of centralized bank notes, inflation is merely the growth of the circulating media — cash, which is evidence of past deposits circulating in perpetuity and bank credit in the form of checkable deposits transferred by bank instruments such as checks and debit cards.

Thus, to know reality and escape the Matrix requires you to account for inflation by FRBUs and by no other way. The FRBU deflator is our red pill to see reality. 

INFLATION FIRST, THEN DEFLATION ALWAYS. 

Inflation happened already. That is what led to the banking crisis of 2008.

The damaging effects of inflation become revealed when the growth of credit outstrips the growth of output owing to credit being priced too cheap. Banking crises always happen at peak inflation right in the midst of prosperity.

Have a look at true credit and true GDP.

Since 2008, true bank credit has been falling. True GDP has fallen right along with the fall in bank credit. The fall of bank credit means deflation has been underway. 

True bank credit is down -43.4% from peak credit at the start of Q2, 2008. True Credit has been falling at an annualized rate of -9.1%.

True GDP has been falling and falling. True GDP is down -42.8% from the peak! True GDP has been falling at an annualized rate of -8.9%!

That's a trade depression. Look at it. I call it the Greatest Depression.

AND FALLING PRICES, IT'S TRUE

So let's have a look at true prices, shall we? Prices have been falling for decades since before peak credit. 

Say what?! Yes, it's true. Once the effects of accretion of FRBUs get removed using the FRBU deflator, we get true, inflation-free prices. 

First let's look at food and energy.

It's no wonder chief bankers at the Federal Reserve exclude food and energy from their watch. Yet, always, you hear many decry that your friendly neighborhood Fed Res bankers ignore food and energy prices.

Now, let's look at house prices. 

House prices went on quite the roller coaster ride between 1980 and 2013. Yet, the average price for a house today is lower than in 1980 by 36%! 

Interestingly, the average house price to income has averaged $6.63. The 2012 ratio of $6.44 is under 3% from the average.

Yet, there is a fly in the ointment, which I shall get to soon, the fly on the wall that explains why you suffer.

But first, here is the ugliness that many Americans understand. Tuition prices have risen a whopping 85% since 1980!

WHY MISERY IF PRICES ARE FALLING?

So why do Americans feel so miserable and claim to be broken financially? Well, there is good reason for that too.

A wage is a price and as all prices have been falling, so too have wages fallen.




The average wage has fallen 41% since 1980!




So why have true wages fallen? All should heed my dictum:

Labor makes property. Capital makes property efficiently.

THE CHART SOCIALISTS AND POLITICIANS DON'T WANT YOU TO SEE

True wages have fallen in lockstep with true capital spending per capita of prime age working adults (25-54). Wages and capital are interlinked.

Trading wealth as property in cash and credit in a purchase and sale for wealth as property in things determines the extent of markets. Only in proportion as labor becomes pricier that it becomes profitable to use cheaper methods (capital) to amplify labor.

There are no means by which living standards can better that do not involve the increase in wealth per capita of prime age workers. Increasing returns to capital arise when true wages go up. To discover how to make increasing returns to capital is to solve the problems of poverty and lowering living standard. 

As can be seen here, the growth in prime age working adults in America has been tremendous, up 45.3% since 1980.





And not-so-coincidentally, wages have fallen 41% and capital spending has fallen 49.5%!





Born-again socialism revivalist preachers like Thomas Piketty who attack wealth simply do not understand trade and commercial life at all. 

Having more wealth is what makes all better off. More wealth comes from more efficient production. More efficient production comes from more capital.  More capital spending per worker raises wages. 

While the living standard in America has been falling, the living standard for Chinese has been rising. Why is that? There has been more capital spending per worker in China since the Chinese turned capitalist.

It's the same story everywhere.

Be sure to check out these:

• WHY IS THE ECONOMY SO HORRIBLE? BECAUSE ACADEMIA ECONOMICS IS FAKE.
• WORK NEVER CREATES VALUE. WORK CREATES PROPERTY.
• INFLATION REVEALED! "REAL GDP" AND FEDERAL RESERVE BANK UNITS.
• THE THEORY OF TRADING PROPERTY FOR PROFIT
• FALLACY FRAUGHT FORBES TRIES TO STOKE FEARS OF HYPERINFLATION

Read more ...

THE CONSUMER PRICE INDEX NEVER HAS MEASURED INFLATION, EVER. CLAIMING SO HAS BEEN AN EPIC CON JOB.

The Bureau of Labor Statistics of the Department of Labor publishes the Consumer Price Index (CPI). 

Those at the BLS claim the CPI is "the most widely used measure of inflation,"  that anyone can use the CPI as a deflator "to translate ... (economic data) into inflation-free dollars." 

Sadly, those at the BLS claim over two million workers must suffer through collective bargaining agreements, which tie their wages to the CPI.

Humorously, those at the BLS claim "the CPI is an indicator of the effectiveness of government policy."

Of course, the CPI cannot measure inflation. Never in its history has the CPI translated any dollar measures into "inflation-free" dollars.

Inflation is a consequence of banking. In the fiduciary monetary system of centralized bank notes, inflation is merely the growth of the circulating media — cash, which is evidence of past deposits circulating in perpetuity and bank credit in the form of checkable deposits.

The damaging effect of inflation becomes revealed when the growth of credit outstrips the growth of output owing to credit being priced too cheap. 


Edwin Walter Kemmerer was known as "the money doctor." This is what he had to say about inflation:

 

Kemmerer goes on to say:

All prices adhere to the one, true, infrangible law for all of trade — the Law of Prices. The Law of Prices of holds the winning bids of purchase and sale for what is on offer set the price.

Producers get constrained by the great Axiom of Profit. The Axiom of Profit holds the sum of sales must at least equal the cost of production otherwise producers go to ruin.

The prices set by winning bidders determine the sum of sales for producers. At whatever price winning bidders set, those producers whose costs are higher than their sales get forced out of production. 

Prices reflect buying power and willingness to bid. Even if bidders have more credit in their hands in the face of what is on offer and but are unwilling to bid more, prices shall not rise. 

Establishing a market basket of goods fails to measure inflation. Producers come and go depending upon efficiency of production and capital formation. Consumers tastes change as innovation replaces products altogether, e.g., the MP3 player replaced the portable CD player, even more so than improvement leads to brand switching.

Though some dispute the current numbers collected to calculate the CPI, such as John Williams at Shadowstats.com, most, including Mr. Williams, believe the idea behind the CPI as measure of inflation is right when in fact the CPI never can measure inflation.

All the CPI can measure are random changes through time for prices of specific goods with prices driven by specific market situation for each good.

No one can even use the CPI to project to a universe of prices the way random sampling with a suitable sample size can project to a universe of observation.

The CPI has been one of the biggest con jobs since the advent of the Federal Reserve.

To better understand inflation, check out INFLATION REVEALED! "REAL GDP" AND FEDERAL RESERVE BANK UNITS.

Be sure to check out the Bizarro Theater Dashboard for updated charts.

Read more ...

U.S. CONGRESS HAS CROSSED THE RUBICON, DEBT 100% OF GDP, FOR REAL.

The country's debt, the national debt, America's debt — these are some of the trickster phrases politicians and their apologists say to disguise the true name, the United States Congress' debt.

Even the writers of the Constitution of the United States of America were quite clear as to who is responsible for taking on debt and paying off debt.

Interestingly, those who agreed to the Constitution never agreed that Congress has the power to borrow bank credits. Rather, they were quite explicit that Congresses only could borrow money, which is coined metal by weight and fineness.

Even clause 5 of Article 1, Section 8, fully clarifies what the writers of the Constitution believed. They believed money to be coined metal, which needed to be weighed and the metal content measured.

• The Congress shall have Power to lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts ... [Article 1. Section 8. Clause 1.]
• To borrow Money on the credit of the United States. [Article 1. Section 8. Clause 2.]
• To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures; [Article 1. Section 8. Clause 5.]

So all of that debt the various Congresses have accumulated by selling bonds for bank credits well, all of that debt has been accumulated in violation of the Constitution various Congresses swore oaths to uphold.

In INFLATION REVEALED! "REAL GDP" AND FEDERAL RESERVE BANK UNITS, I explain the concept of Federal Reserve Banking Units (FRBUs). FRBUs give the best tool to measure inflation. Inflation arises from banking and nothing else. 

As can be seen, true spending of Congress in terms of buying power as measured by FRBUs is slightly above what the Congress of 1993 spent. Tax collection today is slightly above that 1993 Congress.

From 1992 through 2000, the Congresses during the Clinton years did a bang up job of pushing to cut deficits while increasing spending and tax collection.




Congress began their march to cross over the point of no return back in 2008 and at last crossing over by October 2012.







So which president signed into law congressional budgets from the most fiscally responsible congresses comparatively speaking?

Read more ...

MORE BAD NEWS FOR THOMAS PIKETTY P > G TOO!

In UT OH, SOMEONE BETTER TELL THOMAS PIKETTY ABOUT L > G TOO, I show how the growth in compensation to labor often outstrips the growth in the economy.

In THOMAS PIKETTY, 696 PAGES OF FOOLERY DESTROYED IN LESS THAN FIVE MINUTES, I show the deep flaws in Piketty's thought, flaws of false premises leading himself to false conclusion.

Now, I reveal the latest bombshell.

Piketty writes his doomsday pronouncement as R > G by which he means "the past devours the future." Other than being French, socialist-leaning and an academician with no business experience, Piketty believes that if the return to capitalists grows faster than the economy, we're all dooomed.

What Piketty fails to get is that capitalists get paid from profits, after all other bills get paid, including taxes to politicians and wages to workers.

Piketty doesn't get this inescapable fact of reality precisely because he is an academician who lives in the pretend world of economics rather than being a man of commerce and industry who lives in the reality of trade.

So what is the bombshell you ask? Ready?

Riffing off Piketty's inequality, I have shown the return to laborers often grows faster than the economy, or L > G.

And now I give you, P > G! That's right.

Here is the year-over-year growth or decline in GDP, compensation to laborers, return to capitalists and spending by politicians. As you can see, in the early years, spending by politicians outsized the economy to such a degree, the rest of the chart is hard to read.





And here is the chart of the same data transformed by log scale so all can better see what is going on.




In 41 of 85 years since 1929, spending by politicians using taxes to fund borrowed cash and credit has grown faster than the economy. Written Piketty-style, P > G.

In 26 of 85 years, spending by politicians grew faster than the economy while compensation to laborers grew slower than the economy! In 23 of 85 years, spending by politicians grew faster than the economy while return to rentiers grew slower than the economy.  Even worse, in 27 of 85 years, spending by politicians grew faster than the economy while return to entrepreneurs grew slower than the economy!

In a whopping 83 of 85 years, spending by politicians as a share of GDP was bigger than either the share of GDP returned to rentiers or the share of GDP earned by entrepreneurs. You would have to go all the way back to 1929 - 1930 for when pols spent less that rentiers or entrepreneurs earned.

You would need to go back all the way to 1951 for when the last time politicians spent less as a share of GDP than capitalists earned.

Once again, during the Reagan-Clinton prosperity (1986-1999), when spending by politicians grew much less than the economy, the economy boomed a prosperity came to all.

And once again, Piketty's pipe dream of more taxation and more spending by politicians would be poison rather than medicine.

For more on the Reagan-Clinton prosperity, check out PARTY OVER OOPS OUT OF TIME. YOU SHOULD HAVE PARTIED LIKE IT WAS 1999.

PIKETTY, THE USEFUL IDIOT

Piketty wants to curtail capitalism, remove competition among capitalists in their fight to buy shares of profit from entrepreneurs. Piketty wants to make it easier for the biggest capitalists who would remain standing in Piketty's Dystopian future masquerading as Fairness-Rhetoric Utopia.

If Piketty were to get his way, the western world would move ever closer to a neo-fascist, neo-feudal system. Individualism and freedom would at long last get crushed by the power elite.

Piketty is dangerous, especially dangerous to the wage-earning working man.





For the other articles which school Piketty, read

UT OH, SOMEONE BETTER TELL THOMAS PIKETTY ABOUT L > G TOO

and

THOMAS PIKETTY, 696 PAGES OF FOOLERY DESTROYED IN LESS THAN FIVE MINUTES.

Read more ...

INFLATION REVEALED! "REAL" GDP AND FEDERAL RESERVE BANK UNITS.

Federal Reserve Bank Units (FRBUs), or if you like better, Federal Reserve Buying Units are what circulate goods and services in the U.S.A. and elsewhere on earth.

Many Americans think they have money, but they do not. No one does. 

As I explain in BITCOIN IS SOFTWARE PROTECTED BY COPYRIGHT. BITCOIN IS NOT LEGAL TENDER CASH, money is coined metal by weight and fineness. The Romans said so. It's their word. Always, money can exist without banking and government. 

Today, there is only cash, which is evidence of past bank deposits circulating in perpetuity and checkable deposits, which, too, is bank credit.  Both cash and deposits must have banks and banking to exist. Americans have legal tender cash. 

From the banker's view, cash and deposits are one and the same. Both are liabilities of bankers. 

Everything in America gets priced in cash and deposits, which are one and the same. 

In ELECTRICITY PRICES. SHOCKING, ISN'T IT? THANKS, NIXON, I explain that Richard Nixon, then president of the U.S., through Executive Order 11615, closed the gold window, which put Americans on fiduciary bank credits as money system and thus the world on a floating exchange rate scheme for international trade settlement.


During my university days, professor eggheads who spread their false doctrine of economics, unwittingly of course, cherry-picked as their preferred base GDP from which to calculate "real" GDP average GDP between 1980-1982.  Today, it seems eggheads are fond of 2009. Either way, doing so reveals foolery.

Here, you can see GDP, every year in current dollars as well as "real" GDP expressed in 1971 GDP using the last quarter of 1971 annualized GDP, which is the first quarter of commerce after the Nixon shock of closing the gold window. The chart looks typical of any year where an official government agency "deflates" the current dollar GDP. 

 


Merely measuring today's GDP in another year's GDP fails to capture reality. All anyone is doing is measuring another year's GDP in the base year's inflated GDP.

In doing so, there is no way to isolate effects on price owing to changes in what actually circulates goods — cash and checkable deposits.

And for the foregoing, this is why everyone is wrong who publishes so-called "real" GDP stats using the method approved by economist academicians everywhere.


Edwin Walter Kemmerer gave good description of what is inflation:

Kemmerer goes on to say:

The right way to measure inflation or deflation is to measure changes to the sum of checkable deposits and cash in circulation. The sum of checkable deposits and cash is what I call FRBUs.

FRBUs give the best tool to measure inflation. The chart below reveals the quarterly changes in FRBUs. 

 
And the next chart shows the yearly change of FRBUs, which, of course, is inflation or deflation of that which circulates goods in America under a fiduciary monetary system of bank credits.

 


And here is what True GDP looks like when removing inflation in FRBUs. This is GDP calculated in gold window dollars (GWDs).



As you can see True GDP looks quite a bit different from what politicians sell you. Yet, anyone who has lived as a working-class, wage-earning adult during these years sees how the graph resonates with his or her experiences.

As I recall, the years 1980 through 1982 were bad ones. The years 1986 through 1989 were good ones. From the time the first Gulf War hit until 1993 were bad years. The years 1993 through the dot com peak of the 2000s were good ones, truly good ones.

From dot com to dot bomb were weak years. And then the final credit bubble madness hit with as expressed in the residential realty bubble.

Life has been pretty tough in America since peak credit 2008. The economy has gotten smaller every year since peak credit. Everyone can tell you this is so from their experiences.

Yet, by the shape of the curve, anyone can see the shrinking is slowing. The current economy is about the size between 1993 and 1994.

Likely, using the FRBU deflator is the most accurate tool to measure inflation you can get, unlike the Consumer Price Index (CPI) of the U.S. Department of Labor and its Bureau of Labor Statistics. The jokers at the BLS use all kinds of deceitful trickery to massage the CPI numbers.

Besides, inflation is a banking phenomenon. Without banking there cannot be inflation. As I explain in FALLACY FRAUGHT FORBES TRIES TO STOKE FEARS OF HYPERINFLATION, inflation is the growth of credit that outstrips the growth of output owing to credit being priced too cheap. 

As I show in PARTY OVER OOPS OUT OF TIME. YOU SHOULD HAVE PARTIED LIKE IT WAS 1999, prices for many things have risen substantively since 1999. For many things, today, it takes more minutes for the average wage earner in America than the comparable average wage worker in 1999.

So what is the difference between 1986 through 1999, or the Reagan-Bush Era and the Clinton Good Times versus 2001 through now, or the Bush-Obama Hard Times?

Why it's the growth of checkable deposits relative to cash. It's this growth that results in higher prices and a lower living standard for bottom class and middle class Americans. 

The blue and red bars reveal the growth of cash and checkable deposits, respectively for their respective periods. The orange bars reveal the ratio of cash to checkable deposits.




During the Reagan-Bush Era and the Clinton Good Times when the living standard grew for the average wage earner each year, there were almost two dollars ($1.97) in cash for every one dollar in deposit bank credit. However, during the Bush-Obama Hard Times, there was only about 75 cents ($0.74) in cash for every one dollar in deposit bank credit.

In YOU LIVE AT THE MERCY OF A CLOWN-CAR DRIVEN BY MEN AND WOMEN OF THE FEDERAL RESERVE, I show how clueless former egghead in chief of the Federal Reserve, Ben Bernanke is. Bernanke failed to see a bubble in residential realty brought on by inflation (too much credit). 

Bernanke pursued exactly the wrong policy. Bernanke sought to increase deposit bank credit rather than what he should have done, deflate it. More so, Bernanke should have pursued action to restore a strong cash-to-deposits ratio.

In what class do you find yourself? If you don't know, I explain it in BUT WERE YOU EVER IN THE MIDDLE CLASS?

Read more ...