Understanding the "Financial Tsunami" - The Natural Laws of Economics

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Part of what makes the subject of the "Financial Tsunami" (see also Part 1), aka the "Big Meltdown", so interesting is that, because of its apparent complexity, there are any number of different categories of information/knowledge dots to connect for the uninitiated. Some people have worked on the biblical dots, some have worked on the "legal" dots, some have worked on the political dots, others have worked on the constitutional dots, and still others have worked on the "nature's laws of economics" dots. It is a few individuals I consider to be arguably among the most important of this latter group that I wanted to talk about in today's blog.

If I were forced to choose one area of tiny disagreement I have with the "Raw Materials" school of economic thought, it would be that their rhetoric is a little more benign and non-combative than I believe reality would seem to dictate that it should be to maximize its political effectiveness. On the other hand, it is that very same soft rhetoric which is probably the most important part of their charm and readability. My friend, Tupper Saussy, also a gentle person, took the same gentle approach in his book "Miracle On Main Street". For the purposes of this essay, I am content to allow them to play the role of "good cop", while I will play the role of "bad cop".

The man pictured on the left is Charles Walters, the founder of Acres magazine ("The Voice of Eco-Agriculture"). The man on the right is Randy Cook, President of the National Organization for Raw Materials (N.O.R.M.).

After doing the research for my essays, "The Big Lie", "Fair Tax = Individual Freedom", "Judicial Reform Amendment", "Taxation", after reading the "An Analysis of the Federal Income Tax Laws" by a group known as "We The People", taken in the context of judicial murders of such as the Haymarket Martyrs, Sacco & Vanzetti, etc., and after watching such videos as, "Money As Debt", "America: Freedom to Fascism", "Fiat Empire", "Manufacturing Dissent", "Secret Government", and "Monopoly Men", I have come to the inevitable conclusion that recorded history convicts the individuals responsible for our self-evidently unconstitutional and fraudulent "chain letter" economy and banking system of being more actually evil than simply benignly ignorant. Having said that, let's proceed to the "good-cop" side of the story.

It is worth noting that even some Democrats understand the issue. See, e.g., the remarks of Derald Hafner, candidate for Congress in 2008. 

Let me also say that if I could have simply linked to the following quotes, especially the entire column, "The End of a Delusion", by Charles Walters, I would have done so. But the economics-related writings I am quoting in this blog didn't appear to exist online. At least I couldn't find them. So I had to type them by hand and insert them here. Perhaps that was my way of paying homage to my maternal grandmother's news-article-clipping genes, and at the same time presenting information of immense importance to the reader. My sincere hope is that, especially in the context of the life-and-death scope of the subject matter to humankind, giving full credit and reference to the writers I have quoted will be acceptable to the reader. Their words should not have to get lost in the dustbin of history, or remain difficult to access to the average online laboring-class reader. After all, all the information on this website is for them, so America's steal-and-redistribute culture and chain-letter economy can be substantively changed for the benefit of all.

From page 85 of the December issue (Vol. 38, No. 12) of Acres magazine:

Injury Instructs

By Randy Cook, President of N.O.R.M.

    Among recent comments on the radio, I heard one that stood out: “We’re all Keynesians now.” Curiously, all the “free market” and “free trade” policy wonks are now retreating to the “safety and security” of governmental rescue. Their “irrational exuberance,” and thinking that money could be made from money, is what has put us in this completely bankrupt condition (emphasis added - JRW). Falling back to the economically ineffective ideas of John Maynard Keynes does not speak well of these folks’ educational progress or of prospects for economic recovery.

    Keynesian methods used by FDR’s New Deal — see FDR's Executive Order Providing for the Stabilizing of the National Economy — during the 1930s didn’t rekindle prosperity. Economic health didn’t return until 1941, prior to the Japanese attack on Pearl Harbor. Third Reich submarines sinking shipping and “cash and carry” limitations on foreign trade with belligerent nations forced us to self-reliance with domestic production. This forced up our raw material price level and returned us to the economic balance we hadn’t experienced since 1929 (emphasis added - JRW).

    After declaring war, government enacted an Emergency War Price Stabilization Act in 1942. This captured, in public policy, our recently recovered economic balance by regulating a floor of earned income from which our war effort, on top of our domestic standard of living, could be built. Primary income from raw material production (70 percent agriculture), created by the parity price per unit of production at the first point of sale, formed the essential, actual basis for the “war fixed the economy” legend.

    The same parity policy kept us out of recession following the war. By 1952, with ignorance and propaganda carving the policy to shreds, the Korean War didn’t fix the economy. Nor did the Vietnam War, or any other since, including the present one. In fact, the Iraq War has visited us with the worst economic collapse since the 1930s. When frightened financial interests tout Keynesian policies as a “cure,” intellectual bankruptcy has arrived.

    To whom are we paying $700 billion to fix our financial mess? Isn’t it the same folks who put us in this mess (emphasis added - JRW)? For half that many dollars we could reestablish agricultural parity and actually start earning our way out of our massive, unconscionable debt. Would you be injured by that?  

In his excellent and wonderfully articulate column, "The End of a Delusion", Charles Walters quotes from his book, "Unforgiven". According to one customer review, Walters includes a sonnet titled "The People" by Tommaso Campanella as translated into English by John Addington Symonds and renamed "Unforgiven". It is so moving and so utterly relevant, that I included it here:

The People

"The people" is a beast of muddy brain
That knows not its own force, and therefore stands
Loaded with wood and stone; the powerless hands
Of a mere child guide it with bit and rein;

One kick would be enough to break the chain;
But the beast fears, and what the child demands,
It does; nor its own terror understands,
Confused and stupefied by bugbears1 vain.

Most wonderful! with its own hands it ties
And gags itself — gives itself death and war
For pence doled out by kings from its own store.

Its own are all things between earth and heaven;
But this it knows not; and if one arise
To tell this truth, it kills him2 unforgiven.

Of Unforgiven, an editorial review at Amazon said:

"Charles Walters recognized the national and international implications of applied raw material economics as revealed in the analyses of the U.S. economy by Carl H. Wilken, Charles B. Ray, John Lee Coulter and J. Carson Adkerson. They demonstrated how all new wealth enters an economy as raw materials provided by Nature. By fairly monetizing these raw materials, an economy is diverse, balanced, and free of debt.

"Unforgiven is derived from Walters' research and in-depth interviews with Wilken, conducted shortly before Wilken's death in 1968. The crisis that this book addresses has become even more pronounced in the years since it first appeared — an increasing wealth gap, a crumbling internal economy, human and economic harm inflicted upon our trading partners, millions of family farmers driven from their land, and small, privately owned businesses becoming extinct, ultimately leaving millions of Americans either directly or indirectly dependent on government handouts for existence. Wilken feared the concentration of power "in a few strong hands" as the deadliest enemy of a free society and saw the demise of independent enterprise and the family farm as the final curtain for the most dramatic social experiment in history: the American Dream.

"Walters presents not only the causes and effects of our continuing rural and urban decay, but also a way to stop it — the construction of an economy operating in tune with the laws of physics."

"The son of a poor Kansas farmer, Walters' childhood was marked first by the Dust Bowl, then by the Great Depression. He came of age doing military service in the waning days of World War II, and earned a master's degree in economics on the G.I. Bill. He gained experience as editor for the National Farmer's Organization (NFO), a group dedicated to the idea of using collective bargaining to obtain a better deal for the family farmer. In 1970 he began his own monthly publication Acres U.S.A, as a voice for eco-agriculture. In his spare time he authored thousands of articles and numerous books on the technologies of eco-agriculture."

A customer review of Unforgiven said:

 "It is a sad commentary of our times that this book has not been widely read or reviewed.

"The book is a prophetic explanation of many, if not most, of the reasons for the imminent collapse of an unsustainable Western Economic System centered in the USA and the UK.

"Charles Walters spells out many of the detailed reasons behind the economic booms and busts, wars, depressions, and the overall erosion and wasting of the economic health and wealth of the American people during the 20th Century, and the opening pages of the 21st.

"At the risk of oversimplifying his work, he lays the blame on the erosion of farm price parities and the dismantling of the family farm, along with "globalization" and "Free Trade" (rather than "Fair Trade") agreements such as the WTO, NAFTA, etc. This, in turn, was caused by deliberate decisions by the international central banking fraternities to take over our nation's money supply in 1913, so that all new money came in the form of interest-bearing debt, rather than by direct government issue as was decreed in our Constitution. This, in turn, has resulted in a systematic transfer of "real wealth" of our nation from the "people" to the most wealthy of the investment classes, a dismantling of the small farmer and businessman and of the middle classes in general (emphasis added - JRW).

"Walters clearly shows with overwhelming evidence that times of sound, interest-free money and proper protective tariffs have been prosperous, and times of privately circulated, interest bearing money and so-called "Free Trade" have been ruinous to the middle classes of farmers and producers, and a prelude to panics, recessions, and depressions. He conclusively shows that a service economy is unsustainable, and must eventually become a slave-economy (emphasis added - JRW).

"In my opinion, this is one of the "must reads" for anyone hoping to comprehend what is happening to and in our world today, the replacement of democracy with plutocracy (rule by the wealthy) or oligarchy (rule by power cliques)."

I have every intention of buying a copy of Unforgiven. You can see from the photos of our garden I have posted on this website, that I am interested in small acreage sustainable farming. The way I found out about both the book and the essay was simply being guided by The Force into picking up the December, 2008 issue of Acres while browsing around for subjects that interest me at our local Barnes & Noble bookstore. Once people find out what type of content Acres contains, I truly hope they will support the magazine by buying it.

In the "Newsletter from the desk of Charles Walters" section of the December, 2008 (Vol. 38, No. 12) on pages 84-87 is found "The End of a Delusion". It is sufficiently long that in the interests of readability, I decided not to indent it even though I have presented it here in its entirety verbatim:

The End of a Delusion

By Charles Walters

   "At some uncertain point in most lives, the discovery is made that doubling a number ad infinitum results in a number unsustainable in terms of physical possibility. Robert Ripley sometimes illustrated the point by calculating the amount of wheat it would take to finish a checkerboard on which one grain occupies the first square, two grains the second square, four the next, then eight, 16, 32, 64, et cetera. In Raw Materials Economics, I used the hypothetical example of a dollar put on deposit at the birth of Christ, which, at 3 percent compounded annually, doubled itself every 23 years and 162.8 days. To round things off, the doubling would take close to 23.5 years. My copyright for Raw Materials Economics was dated 1991. That Christ-based dollar had multiplied to $38,685,626,227,668,133,590,597,632 — this by the time that manuscript went to press. I have not updated it since then because my computer cannot handle the numbers.

    "It is hard to visualize such a sum — almost 39 septillion. At current prices, each one of Earth’s 6.25 billion people could use it to buy well over a million automobiles each day, not for just one day, but every day for over 1,000 years.

    "The system under which we live, one in which interest is paid on money created out of nothing, is the most irresponsible the world has yet seen. Strange to say, the United States has an economic system no more rational than a chain letter (emphasis added - JRW).

    "In the meantime, the rules of history prevail (emphasis added - JRW). A free society is being transformed into a highly controlled society. The ratio of government spending to personal income, the rate of inflation, the accumulation of public and private debt are all measures of the process of this conversion. Now that public and private debt have staggered the system, and a Congress — guided by the ignorance of the simple-minded or the banner of the opportunist — has voted the rescue a faltering chain letter scheme with nearly $1 trillion of new money minted out of thin air, we might well reflect how insanity came to grip the minds of otherwise rational men (emphasis added - JRW).

THE STANDOFF

    "Law, raw materials from the Earth and energy from the sun first created capital. Capital did not create the photons of light and their subatomic particles that gift labor in its 2,000 calories of energy a day, or sustain the child to adulthood and useful labor (emphasis added - JRW).

    "The Keynesian idea of inserting new money into a faltering economic system depends on there being a system in the first place. Bailing out a failing chain letter economy is impossible (emphasis added - JRW) for reasons the rest of this column will detail.

FAITH OF THE ABSCONDERS

    "It is an article of faith among most economists that vast benefits are conferred on the community by the monetary system, thus their willingness to abide a money policy that is as dishonest as rigged scales at a sale barn. Indeed, a monetary policy that creates money for one sector of the economy and permits imbalance with the consuming sector is a lot like having a dishonest weights and measures policy (emphasis added - JRW). These columns have often demonstrated the physical relationship between the values of raw materials input and national income. The speculative trades have distributed only discord to the formula of production times price equals income for the raw materials producers first, and the national income on the ratio conferred by the state of the arts. This column has also hinted at the proper relationship that must feed back to raw materials production if economic convulsion is to be avoided at regularly scheduled intervals in history (emphasis added - JRW).

    "In economics, everything is calculated in terms of a base period. This is called 100. Such a period requires full employment, balanced budgets, little or no import invasion, a stable dollar and structural balance between the several sectors of the economy. Data used to make this Newsletter case have been taken from the Economic Indicators, published monthly by the Joint Economic Committee under the supervision of the President’s Council of Economic Advisors.

    "I realize that figures and columns of numbers terrorize most readers, so I’ll settle for the summary form in almost all cases. Still, most of what is presented here is no more complicated than 2 + 2 = 4. Simply stated, if you take the value of all raw materials used in operating the economy (farm, mineral, timber, fish, etc.), and compare the numbers for any balanced base period, the number will be the same (within a standard of deviation). The laws of physics require this. This indeed was the case for the 25-year period of 1929-1954 — the raw materials-savings equation hit 95 percent, meaning a statistical deviation of 5 percent due to unavailable data on specialty crop production.

    "When we take raw materials from planet Earth, the equation reads, man debited — nature credited3. All other transactions read, man debited — man credited (emphasis added - JRW).

    "When raw materials values falter, savings also fail and tank (emphasis added - JRW). In earlier times this meant a depression. The Federal Reserve system was constructed in 1913 on the premise that it would stabilize the dollar, prevent depression, and usher in everything from farm solvency to St. Augustine’s City of God!

THE PUMP

    "Basic agriculture, the nation’s largest industry, still primes the nation’s economic pump. In effect it hires all subsequent labor . . . except! The exception is labor hired by new investment, which only a prosperous raw materials industry (man debited — nature credited) can sustain. Add a new phrase to your vocabulary — new wealth industry. Only a new wealth industry can deliver savings at the national level.

    "Hold onto this thought and pause long enough to handle the abstraction. The economy is not a business such as a shoe store. It is a system. It relies on new wealth earnings to create capital for expansion, with no exceptions if reason is consulted.

    "But reason was not consulted when Joe Cannon bullied a half-empty House to pass the Federal Reserve Act on December 23, 1913, ending a century-long experience of a stable dollar — which still bought as much in 1913 as it has in 1812. Twenty-five years after the passage of this infamous act, Beardsley Ruml, head of the New York Fed, in effect shouted, “Eureka, we now know how to use the Fed!”

    "The great Lord Keynes had pioneered the way. He seized on the idea of creating capital out of thin air because capital expansion took on the color of earned income, the kind turned by raw materials at a parity price. This bogus income satisfied those who created money at a profit. But these pretended national earnings could not be sustained by less than a prosperous agriculture.

    "Thus arose the compromise that has led the nation to its present impasse, both presidential candidates to abandon good judgment, and Congress to embrace the bribe (Bill Moyer's assessment).

    "The compromise for our times has been debt. Debt, not raw materials — farm and the rest — has been made prime support for national income, and this debt has doubled and redoubled at regulars intervals ever since the Employment Act of 1946 and the Aiken Bill of 1949, dragging inflation, socials programs and massive unemployment in its wake. The lack of savings in the U.S. economy is more shocking in its content than the apparition of figures suggested even a decade ago. Yet it is debt pretending to be earnings that has compounded itself and most recently called on the elements of frustration for an injection so egregious it condemns Congress for making a tawdry grift out of its sacred mission. This injection cannot create a single dollar of social surplus, earned national profit, if you will (emphasis added - JRW).

    "Economists who fail to follow the logic inherent in the law of the lever and the primacy of raw materials should examine data constructed since at least 1953. But they do not do this because they change the mantra fielded in Newsweek, September 28, 2008, a faithful codification of the fairytale in which we live. But should these data be examined, it would be noted that the ratio of raw materials to national income has evaporated since the early 1950’s. The answer, of course, is debt. Debt has been constructed to make the case that nature’s gifts are not primary (emphasis added - JRW).

25 YEARS

    "For the period 1951-1975, a 25-year time frame, the United States enjoyed $14.6 trillion national income, but it was income attained by being mortgaged. During this period, the gross public and private debt increased from approximately $565 billion to $3,410.7 billion, an increase of $2,845.7 billion.

    "In 1975 the total gross saving of the United States was $200.9 billion, this from a total national income of $1,209.5 billion. Divide the total gross savings, $200.9 billion, into the national income of $1,209.5 billion, you have the shout from the rooftop that it took $6.02 of national income to earn $1 of gross savings. Obviously, debt cannot generate the savings it takes to pay off debt.

    "Set these numbers aside, read them out loud, and listen. Here is how the figures fit hand in glove with history. Recall, if you will, that in 1949 Congress struck down parity for agriculture. It took until the arrival of the Eisenhower administration to implement this Roman road to ruin. In other words, a classic economic period came to a halt in 1953. The scenario must be understood, otherwise our raw materials economics make no sense, and the debt-as-prime-mover people have invented a law of levity that pretends to confer the ability of disobeying gravity, and the new magicians can indeed conjure money out of thin air.

UNFORGIVEN

    "The following paragraph was published in Unforgiven in 1971. Fully 38 years later, it cannot be changed.

    When the Korean War broke out, a few in Congress wanted to go the World War II route again. They wanted to monetize raw materials again and keep a balanced economy, but the move was blocked because traders sensed great profits if free [unregulated] international trade could be maintained during the war. Therefore it became the judgment of the economic advisers that raw materials prices should be scaled down in homage to international trade, war or no war. Thus there was only one way to operate. More debt had to be created, $40 billion a year to fight the war. When the war ended, debt creation was scaled back to $30 billion.

    In 1955, $72 billion of credit was injected into the economy. President Eisenhower was promising the nation a $500 billion national income. On the basis of $300 billion of national income, $72 billion debt creation represented twice as much money as the nation had a right to borrow based on profits and savings. Savings started running out in 1957, and debt expansion fell down to $35 billion, or half the rate of 1955. The 1958 depression followed.

    By this time the mandate for debt expansion became clear to those who wanted to go the whole route. The small confederation of Cassandras supporting sound economic procedures failed to carry the day in the general’s tent.


    In 1959, $69 billion debt was created to shore up the faltering economy, whereas farm prices were pressured downward. But by 1959, the operating loss of the economy has increased to a point where $69 billion was barely enough to keep the momentum. A year later, 1960, the presidential campaign was fought against a background of “we’ve got to get the country moving again.”

   "Ezra Taft Benson’s oft-quoted press conference quip, “We’re through molly-coddling the farmers,” and the resultant installation of 60 percent of parity started debilitating national income almost immediately. Hogs homed in on 10 cents a pound, and corn, 10 cents a bushel. This subtracted from nation earned income on a ratio of 7.

    "President Kennedy duplicated Ike’s tactic simply because he was taking advice from the same school of economists.

CHAIN LETTER ECONOMICS

    "You can’t run away from numbers any more than you can retreat from the nearly $1 trillion in gifts Congress handed Wall Street. We will all pay the tab as resultant inflation eats and digests our welfare, our nation! The chain letter has a peculiar grasp on the minds of otherwise extremely intelligent men. The leader at a recent monetary conference stated, “If each of you brought one guest, and each in turn repeated that action, we soon would sweep the country,” these or words to the same effect.

    "If, indeed!

    "If the chain letter could function for more than a few turns, then nations wouldn’t go bankrupt, and convulsions in history wouldn’t arise in cycles a fourth grade student with a handheld computer can figure. It becomes difficult not to belabor the point. The ages have told us that nothing, not bacteria, hummingbirds, caged lemmings or free-roaming lions can double ad infinitum. Procreation must be offset by death. The offspring of money in the form of interest must likewise be matched by economic death (emphasis added - JRW).

    "Discerning readers will want to consult the last chapter of Unforgiven for tabulations on how debt has doubled and redoubled since the Kennedy administration until now we near the impossible task of paying out the nation’s entire earnings just to meet the interest bill. This is an ill-advised (and bribed) Congress proposed via law on a tragic Friday in early October 2008.

    "To see such illiteracy in the halls of government and ratified by a prize-winning Newsweek writer rolls out a sorrow beyond weeping (emphasis added - JRW).

CONCLUSIONS

    "That modest Eisenhower $72 billion of pure smoke money injection has now grown exponentially into a national public and private debt of — well, read on!

    "It can now be estimated that the gross domestic product of the world times 10 equals the derivatives load that chain letter economics hopes to sustain (emphasis added - JRW). That number is $1.4 quadrillion. Your debt, dear reader, is now $55 trillion on the books. But the off-budget debt is even more, $400 trillion.

    "Either I am 100 percent right or 100 percent wrong. The title of this article says it all.

    "As my curmudgeon neighbor put it, “Ponzi achieved immortality for a trifling scheme.” Obviously a real Academy Award should go to the House and Senate and the madmen whose studied performances set up the age of delusion in the first place" (emphasis added - JRW).

WEBMASTER'S NOTE:

Surely Walters' essay makes it easier to understand two other immutable economic laws of nature, 1) whatever you tax (e.g. honesty, integrity, ingenuity, productivity, generosity, prosperity, constructive life choices, etc), you WILL get less of, and 2) whatever you subsidize (e.g. dishonesty, manipulativeness, apathy, entitlement attitude, greed, poverty, destructive life choices, unwed motherhood, etc), you WILL get more of. Unfortunately, both ingnorant "bleeding-heart" steal-and-redistribute socialists and evil fascist neo-feudalist madmen behave as if Nature and her laws were somehow the un-reality, the delusion, while the One-Ring-based delusions of some mentally ill humans are the reality! Maybe it's impossible for Golden-Rule sanity to comprehend sociopathic insanity.

RECENT VIDEOS, ARTICLES, COLUMNS, AND STATEMENTS:

"The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance." — Marcus Tullius Cicero

"Remember, democracy never lasts long. It soon wastes, exhausts, and murders itself. There never was a democracy yet that did not commit suicide." - John Adams

U.S. Taxpayers Risk $9.7 Trillion on Bailout Programs - "The $9.7 trillion in pledges would be enough to send a $1,430 check to every man, woman and child alive in the world. It’s 13 times what the U.S. has spent so far on wars in Iraq and Afghanistan, according to Congressional Budget Office data, and is almost enough to pay off every home mortgage loan in the U.S., calculated at $10.5 trillion by the Federal Reserve." - (Surely paying off everybody's mortgage would be a fairer and more effective "stimulus" than simply transferring the wealth to a bunch of crooks! - JRW)

Our trip down Turd River - Gerry Spence, world-class lawyer - "Yes, as they say, 'We are up Shit Creek without a paddle.' Perhaps you didn’t know the following. No intellectual has revealed this truth — but Shit Creek is a tributary of Turd River. No matter how hard we fight against it, we cannot get off that river until we reach Turd Falls at its end."

MUST READ: Ground Zero on Wall Street: Fed funds and T-bills hit 0% interest - Ellen Hodgson Brown, J.D.

Billionaire Merckle commits suicide - Financial Times - "Adolf Merckle, one of Germany’s wealthiest men, committed suicide after weeks of talks with creditors designed to save his businesses from being consumed by disastrous investments and the global financial crisis."

Where'd the bailout money go? Shhhh, it's a secret - Yahoo News

Mike Barnicle and Jim Cramer talking about the Big Bailout on MSNBC:


Americans Under 70 May Find 2008 Was Their Least Favorite Year  - Bloomberg.com - "There is no more Wall Street."

US stocks suffer worst year since Great Depression - Financial Times - "As fears over the future of the nation’s financial institutions mounted, so too did concerns of a deep and long-lasting global recession."

The Great Depression of the 21st Century: Collapse of the Real Economy - Michel Chossudovsky - "This crisis is far more serious than the Great Depression. All major sectors of the global economy are affected. Recent reports suggest that the system of Letters of Credit as well as international shipping, which constitute the lifeline of the international trading system, are potentially in jeopardy . . . The "bailout" contributes to a further process of destabilization of the financial architecture. It transfers large amounts of public money, at taxpayers expense,  into the hands of private financiers. It leads to a spiraling public debt and an unprecedented centralization of banking power. Moreover, the bailout money is used by the financial giants to secure corporate acquisitions both in the financial sector and the real economy . . . Paper wealth is transformed into the ownership and control of real productive assets, including industry, services, natural resources, infrastructure, etc. . . . A solution to this crisis can only be brought about through a process of  'financial disarmament', which forcefully challenges the hegemony of the Wall Street financial institutions including their control over monetary policy. 'Financial disarmament' would also require freezing the instruments of speculative trade,  dismantling the hedge funds and democratizing monetary policy."

Federal Reserve sets stage for Weimar-style Hyperinflation - F. William Engdal - "The Federal Reserve has bluntly refused a request by a major US financial news service to disclose the recipients of more than $2 trillion of emergency loans from US taxpayers and to reveal the assets the central bank is accepting as collateral. Their lawyers resorted to the bizarre argument that they did so to protect 'trade secrets.' Is the secret that the US financial system is de facto bankrupt? The latest Fed move is further indication of the degree of panic and lack of clear strategy within the highest ranks of the US financial institutions. Unprecedented Federal Reserve expansion of the Monetary Base in recent weeks sets the stage for a future Weimar-style hyperinflation perhaps before 2010."

It's the Derivatives, Stupid! Why Fannie, Freddie and AIG had to be bailed out - Ellen Hodgson Brown, J.D., "developed her research skills as an attorney practicing civil litigation in Los Angeles. In Web of Debt, her latest book, she turns those skills to an analysis of the Federal Reserve and 'the money trust.' She shows how this private cartel has usurped the power to create money from the people themselves, and how we the people can get it back."

Wall Street faces record losses in last week of 2008 - MyWay.com (AP)

Peter Schiff Was Right 2006 - 2007 (2nd Edition) - YouTube video - Peter Schiff is correct about basic Economic 101, watch all the establishment scumbag propaganda liars make fun of Peter. If you want to understand how this "financial tsunami" happened, watch this video along with Canadian artist Paul Grignon's animated movie, "Money As Debt".

THE FARM'S ECOVILLAGE TOUR:


The above video is about sustainable living on The Farm in Summertown, Tennessee. The interesting tour is conducted by self-described metascale permaculturist, Albert K. Bates. Following is another interesting video about another sustainable living community, The School of Living. In it is a referral to the fascinating subject of an evapotranspiration wastewater disposal system.

RALPH BORSODI SCHOOL OF LIVING '08:


FOOTNOTES:

1. From Merriam-Webster Dictionary (online): bug·bear: 1: an imaginary goblin or specter used to excite fear. 2 a: an object or source of dread b: a continuing source of irritation.

2. Jesus of Nazareth, for example.

3. A very intelligent friend of mine wanted clarification on the "man debited - nature credited" axiom. What Walters is referring to is simply the reality-based fact that because land itself is nature's means of production, everybody should have access to nature's  means of production, and that when a man takes something from nature, the man is debited for what he took, and nature is acknowledged for its role and given the credit for what it provided. The corollary is that the real worth of the labor required to produce the product is acknowledged and paid for. In contrast, the "man debited - man credited" part of the axiom refers to the delusional money-based fact that if a man borrows money, he is debited for that amount, while the man who loaned the money is credited for that amount. The corollary is that labor is meaningless and worthless, because the only issue is whether or not the debt exists and the "interest" is being paid. The former is a production-from-raw-materials (real wealth/freedom/prosperity) economics concept, while the latter is a fascist, neo-feudalistic fee-for-the-use-of-money (usury/"interest"/wage slavery/serfdom/poverty) economics concept.

Under construction . . .

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