ATTENTION FOLKS!! THIS IS WHAT CHINA'S DOING, READ IT....

THIS IS WHAT CHINA'S DOING, READ IT CAREFULLY...

China Makes Major Changes To Its Laws To Squash Islam.

'Break Our Laws And Face Public Execution.'

SO WHAT IS CHINA DOING??

"China is declaring an all-out war to make sure Islam doesn’t take over, and never gains the strength to attack them.

Here are China’s directives:

Female head-coverings completely banned,

threats of deportation exist if they refuse to comply.

No citizenship privileges granted to Muslims

and very strict immigration laws are in place,

every Muslim residing in China, even Muslim visitors are closely monitored.

No Mosques allowed to be built and strictly no

praying on public streets or anywhere in public.

Any Muslim caught hate-preaching in public or

trying to poison the minds of the young will be

deported immediately, that is if they are lucky

to escape the death penalty or life in prison.

Muslim men are forbidden from growing long beards, the Chinese feel it is too intimidating.

Islamic restaurants must sell cigarettes and alcohol and they must display them prominently for all patrons to visibly see.

-- Stricktly no sale of any Halal meats at all,

-- They must display a highly visible sign in their window, "Pork Available If Requested,"

Any business owner who does not follow this order…will lose their business registration and be closed down.

Any Muslims who commit any serious crimes like terrorist activity, murder or rape and the culprit faces execution by hanging or thrown in prison and never seen again.

27 Muslim male and females were executed by hanging in 2014-2015 for suspected terrorism while dozens are in prison awaiting their fate.

In China you are guilty until proven innocent, not innocent until proved guilty as practiced in civilized Christian countries.

Chinese Lawyers are forbidden by the Government to defend a Muslim in a court of law because of their Islam belief which is not recognized in China, they must represent themselves. Chinese Judges are known for their despite of Muslims and are very cold hearted and biased, very similar to how Indonesian Muslim Judges treated the Australian girl Shappelle Corby over her drug charges.

2,127 Muslims left China in 2015 and returned home because of its very tough anti-Muslim laws and China completely ignores the anger of the United Nations Refugee Council.

China sees what’s happening to the West. It sees what has happened throughout Western European, in France - Belgium - Holland - Sweden - Norway - Denmark - the USA and Britain. And now the million Muslims who have

stormed into Germany dragging their economy down to its knees that is predicted to send the country spiralling into bankruptcy.

The Chinese Government will not tolerate Islam or their hideous Sharia law.

China has decided to eradicate the plague before it can gain a strong foot-hold and turn their country into another Western Europe.

Unlike inept USA government, with it’s Muslim sympathizers - the foremost being our current totally failed President Obama and his administration - China understands the violent reality behind Islam and is prepared to stamp it out even if it means deporting every single Muslim.

Communism is a horrible form of government, but it also unshackles China from tolerating the idiotic delusions of those who continue to preach that Islam is a “religion of Peace.” There is nothing about peace written in the Koran it is all based on hatred and killings simply because Mohammed was a mass murderer and a rapist of women and children.

Britain/Canada and Australia should take heed before Islam becomes too overpopulated because that is their objective.

If Britain doesn't get tough on their Muslims and begin a huge deportation program including the thousands of violent Muslim prison inmates imprisoned at the taxpayers expense for committing hideous crimes, it is has been predicted by the experts that the British public can expectto have a Muslim Prime Minister in place by the year 2050.

Britain desperately needs another courageous Winston Churchill as their Prime Minister to lead them out of their political wilderness."

This is what “tolerance” will get you: Everywhere Islam has been welcomed by a free people, it has grown from a quiet snake in the grass, into uncontrollable poison.

Muslims are capable of killing even their own people without a care in the world.

Isn't it ironic that an ex  Communist country, sees what free nations don't: that, ultimately, Islam always turns nasty?"

Really good!!! Happy Fourth! We should follow China on this to be able to keep having Happy Fourths!

Question for David Crawford and An Answer

Judge Anna von Reitz An article recently appeared on RumorMill News by David Crawford demanding to know ‘what the Hell America is up to now’ and detailing the printing of three trillion USD in Thailand, backed by gold in a Swiss Bank.

See his article here:http://www.rumormillnews.com/cgi-bin/forum.cgi?read=50341

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In the first place, David, if you are up to speed enough to write an article like this, why are you referring to this as an “American” problem???

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Obviously, these cretins are not representing America nor are they representing American interests. Far from it.  They are counterfeiting United States currency (which is not American) in an effort to further devaluate the “United States Dollar”.  

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Our American “dollar” is a unit measure of fine silver, like a cup of water or a ton of lead.  Not a piece of paper backed by the “good faith of a bunch of crooks” and their banker bosses at the Federal Reserve and IMF.     

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You aren’t talking about the American Dollar here, so why are you blaming “America” and addressing the American people as if we were doing this clandestine printing of three trillion USD?  

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We are the chief victims, not the perpetrators! 

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You are talking about a paper currency issued by a government that is FOREIGN with respect to Americans — a government that is operating in a fraudulent and destructive manner. 

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This situation has everything to do with the obligation that many world governments and international banking cartels have to end this deceit and madness and the obligation of the Joint Chiefs and US Armed Forces to put an end to this fraud and counterfeiting and nothing whatsoever to do with America, the American People, nor affecting our lawful money. 

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The sooner everyone realizes that, the better.

Social Security and the Government of FRANCE

Judge Anna von Reitz

Social Security was created under Title 42 of the Federal Code. If you read it, you will learn that it is a pension and benefit fund for federal employees and federal government dependents.
Most Americans never qualified for and were never actually eligible to participate in Social Security at all, and they were never obligated to participate in the program, either.

You were misinformed and entrapped into contributing over 7% of your income and your employers were similarly burdened in a Communist scheme designed to benefit public employees and welfare recipients and government vendors.
So now all that money has gone into the “General Fund” of a foreign, private, for-profit governmental services corporation that is insolvent and being liquidated.

It is the end of the long, long work day portion of your life, and you, JOE ALLEN DOE, are owed your retirement package……

And if you are not worried, you certainly should be.

Every day I get tons of mail and inquiries from Seniors who want to reclaim their natural birthright status as Americans and stop the presumptions that accrue against “US citizens”. The number one thing everyone wants to know is—- “Will Expatriation affect my Social Security?”
The short answer is no.

Like any other insurance program you had to work a certain length of time as a presumed federal government employee (ten quarters) and you and your employers had to contribute and pay the premiums in order to be “vested” in that system.

Now that you are retired, you don’t owe them anything. They owe you everything. And you no longer have to assume any political status related to the federal corporations at all.

If you are not a federal employee or dependent, you have no reason to vote in their elections (and as a State National, Virginian, Ohioan, etc. you are precluded from doing so) and you have no obligation to pay Federal Income taxes either.

All State Nationals are naturally exempt and are not operating as federal franchise corporations, and as a result, all you really need to do is “revoke your election to pay” federal income taxes effective with the first of July of whatever tax year you wish to end such private contractual obligations and give the Commissioner of the Internal Revenue Service notice of your “Revocation of Election” via U.S. Registered Mail, Return Receipt Requested, clearly stating that June 30 (of whichever tax year you quit) is the last day of the last Federal Fiscal Year that you will serve as a “volunteer” Withholding Agent.

So who is a “federal employee or dependent”?

Title 42 explicitly identifies certain groups of people— all federal employees (which includes all “federate state” and “federated county” employees) both civilian and military; all people born in the District of Columbia or Washington, DC, Guam, Puerto Rico, American Samoa, or other “Insular States and Territories”, African Americans, recipients of federal welfare benefits, political asylum seekers (immigrants) and last but not least, under the “Diversity of Citizenship” clause, federal corporations—-this is what the Federales “presume” you are.

This is what the all capital letters NAME is about.

When you apply for a “Social Security Number” and get a Social Security Account which also serves as a Taxpayer Identification Number, you are unknowingly also signing up to act as a volunteer Income Tax Withholding Agent for the federal government corporation(s) that you “presumably” now work for.
How else could you be eligible for a federal pension program?

According to the Federales, your Social Security Application is your agreement to be “enrolled” as a voluntary federal employee — a tax collector— working for a federal franchise corporation conveniently named after you.

If your actual Trade Name is “Felix Robert Murchinger” you are instantly (and unlawfully) converted into “FELIX ROBERT MURCHINGER” a federal franchise corporation that you merely work for as an “authorized representative or agent”. And you also become obligated to obey every jot of federal and federal state and federal county “statutory law”, including all codes and regulations.
All 120,000,000 of them.

The good news is that this is all self-interested fraud on the part of international commercial corporations who have no more authority over you than Dairy Queen. The further good news is that they still owe you every jot of your pension payments and services, and the corporate veil (their version of “immunity”) is instantly pierced by fraud and infringement on your good name and copyright of your given name as the first and only Holder in Due Course, so that you are not only the Priority Creditor of their bankrupt and insolvent governmental services corporation, you are first in line and first in time to sock it to the assets of their parent corporation, the IMF.

Also, because the IMF has operated in this criminal fashion on our shores and has not been held accountable by the French Government that chartered it and the French Central Bank that funded it, these entities are also liable to you for this circumstance.

And this is why the “Neu Republique” operating as THE UNITED STATES OF AMERICA, INC. has been spooled up—- in an effort to avoid this liability and to control the victims and seize their private property assets to pay the bills resulting from all this chicanery.

As a result, undeclared French Agents have been prevented from overtaking and undermining and seizing control of America. The attempt has been made, but it won’t be allowed.

So— the “UNITED STATES, INC.” may be insolvent, but the IMF and the government of France dba “FRANCE” are certainly not, and all these buggers are going to have to provide your pension payments and services as agreed upon as one of their very first and most important obligations.

Like peeling an onion, these corporations will try to flee the scene of the crime— layers upon layers of corporations and holding companies all intent on seeking bankruptcy protection for themselves and their shareholders, which would set off a domino chain implosion of the entire world economy. So let’s not do that.
Let’s just cut to the chase and beard the international bankers in their dens, because at the end of the day, they are the ones responsible for all this deplorable criminality. They are the ultimate “shareholders” that we will get to eventually by peeling the onion, so, why not just up front demand restitution from them? It beats slogging one’s way through all the storefront corporations and holding companies and “secondary holders” and insurance companies that they have set up to insulate themselves from reality.

That is what is happening instead of all the other options.

The Behind-the-Scenes involves many governments, not just the French, and the problem is much broader than paying American pensioners, but so far as your Social Security payments go, the answer is—- they had BETTER pay up, promptly, fully, with no obfuscation about your standing as a claimant (and NOT a welfare “beneficiary”) — or they will face the Wrath of God and no longer be a problem for the people of this world.

As for you, American Retiree, claim your State National birthright status and Expatriate from any presumption of “United States Citizenship”. Send in your Revocation of Election to pay Federal Income Taxes effective last July 1 (or any July 1 prior to that) and be done with the cretins. And then, peacefully, methodically, reclaim all that is rightfully yours.

Read-And-Share-This-First

Judge Anna von Reitz

It has become mammothly apparent just HOW confused many people are about how the American Government is organized and who is who and how power within our government is supposed to flow. I have therefore written down a flow chart and a two page explanation of exactly who is who and what is what.

Please post this attached article as a separate highlighted post on the website, Paul, and please, everyone else, do whatever you can do to get this BASIC information into the hands of as many confused people as possible.  It is only by building a common knowledge of these facts that we can hope to straighten this mess out and get back on track

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+++++++++++++++++++++++++++++++++++++++++++++++++++++++++.

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Fundamentals — Read This First

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The Way Power is Supposed to Flow in America:

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Land Government

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People

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Townships/Parishes

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Counties [Jackson County]

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States [Wisconsin State]

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Continental Congress

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Federal Government (Sea Government)

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United States Congress/Congress of the United States of America

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President

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[United States Supreme Court]

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Departments and Agencies

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States of …. [State of Wisconsin]

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STATES OF…. [STATE OF WISCONSIN]

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Counties of…. [County of Jackson]

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COUNTIES OF…. [COUNTY OF JACKSON]

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Townships of…. [Township of Adams]

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TOWNSHIPS OF…. [TOWNSHIP OF ADAMS]

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MUNICIPALITIES OF….

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Citizens

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CITIZENS 

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At every step the power vested DECREASES……

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Who Is Who and What Is What?

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The People = The Militia

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The word “people” is Hebrew. It means “militia”. All power is vested in the people, that is, the militia organized in defense of our country.

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The Townships and Parishes

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The people form their local government based on where they live and own land. They

assemble their town (as in “township”) councils and hold “town hall” meetings.

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The Counties on the Land [For example: Maricopa County}

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The counties are comprised of townships and parishes organized within the county’s physical boundaries, thus each county represents a number of townships/parishes.

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The States on the Land [For example: California State]

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Similarly states are comprised of all the counties organized within the physical boundaries of the state. Each state in these United States is a separate sovereign nation.

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The Federal Government

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The Federal Government is both a corporation organized to provide nineteen enumerated governmental services and an association of the States organized to direct and oversee the delivery of those services . It is not and has never been a sovereign nation or government.

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At each level the amount of power vested in the government is REDUCED. The Federal Government has the LEAST amount of power.

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One the land of these United States, the people hold all the power and merely delegate tasks to public employees. The people are all State Nationals: Arkansans, Vermonters, Texans and so on. They occasionally send their Deputies as Delegates to a Continental

Congress.

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This is all separate from and not to be confused with the Government operating in the international jurisdiction of the Sea.

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The Sea Government = International (Federal) Government

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The government operating in the international jurisdiction of the sea goes in REVERSE

order with power flowing from the TOP DOWN. It is inhabited by citizens”, not “people”.

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 Citizens serve the government. People are served by government.

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_________________________________________________

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President – acts as CEO of the federal corporation(s)

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Congress – acts as Board of Directors

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United States Supreme Court – acts as the ultimate in-house corporate tribunal and interprets The Constitution – The Supreme Law of the Land for the public employees working in the international jurisdiction of the sea.

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United States of America, Inc. – one of the main federal government corporations organized to provide services to the states and people via franchises it calls federated “States”, for example, “State of California” and federated counties, for example, “County of Maricopa”.

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UNITED STATES, INC. – another federal government corporation organized to provide services to federal employees and dependents, that is, “citizens”. This also uses  ranchises called “STATES”, for example, “STATE OF CALIFORNIA” and counties, “COUNTY OF  MARICOPA”.

 .

Any time you see the word “of” or see anything named via the use of all capital letters you know you are dealing with an incorporated franchise operating in the international jurisdiction of the sea.

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California State = Land Jurisdiction/Law of the Land, “State of California” = Sea Jurisdiction/Law of the Sea, “STATE OF CALIFORNIA” and “CALIFORNIA” = Sea Jurisdiction/Law of the Sea.

 .

Maricopa County = Land Jurisdiction/Law of the Land. “County of Maricopa” = Sea

Jurisdiction/Law of the Sea. “COUNTY of MARICOPA” and “MARICOPA” = Sea Jurisdiction/Law of the Sea.

 .

“California State” is the actual state on the land owed to the people.

 .

“State of California” provides the “people” of California State with nineteen enumerated federal services owed to them under contract.

 .

“STATE OF CALIFORNIA” provides “citizens”— that is, public employees and officials and dependents of the federal government with administrative services and benefits.

 .

Two kinds of “citizens” —- United States Citizens and “citizens of the United States”; JOHN QUINCY DOE is a United States Citizen and JOHN Q. DOE is a citizen of the UNITED STATES, both franchises of federal corporations merely named after john quincy of the House Doe.

Proof Gun Control Works

Lynch signaling no charges for Hillary

JUDGE  JEANINE:  LYNCH  SIGNALING  NO  CHARGES  FOR  HILLARY  

'All  the  crumbs  are  leading  to  the  fact  that  [she]  will  not  be  indicted'

WND EXCLUSIVE

Bob Unruh
July 1 2016  

 
Judge Jeanine Pirro, the longtime prosecutor and judge who now is a host for Fox News, on Friday said Attorney General Loretta Lynch’s comments on her private meeting with former President Bill Clinton indicate Hillary Clinton will not be charged over her private email server. 

WND reported on the meeting Monday in Phoenix between Bill Clinton and Lynch. The AG said they talked about golf and grandchildren but not the criminal investigation of Hillary Clinton. 

The revelations about the meeting triggered a groundswell of demands that Lynch recuse herself from any decision in the case. And now Lynch has released a statement that she will “accept” the recommendations from the career lawyers and prosecutors in the Department of Justice on the case against Hillary Clinton. 

Pirro, however, said Lynch really is not doing anything significant. “No, she’s not stepping aside from it,” Pirro said.  “She says she is accepting the determinations and findings of career prosecutors and lawyers as well as FBI investigators and Director Comey,” she said. “That means she is accepting their determination. “She is not deferring the decision to them. She is not recusing herself – which is something she should have done – under the ethics code.”

Pirro pointed out that Lynch is the only one who can give prosecutors “access” to a grand jury.

However, Pirro said, Lynch works for Obama, and Obama previously has stated there was no problem with Clinton’s email system.

“All the crumbs are leading to the fact that Hillary Clinton will not be indicted,” she said.

“This happens all the time … prosecutors say to cops. 
… You know it looks like you got a prima facie case, but I can’t prove it beyond a reasonable doubt,” she said.
The result? No case, even though the evidence was “accepted.”

Pirro said Lynch earlier sent powerful messages to Obama about the case, suggesting Obama could end up being the first witness if ever there was a criminal trial.

“Hillary emailed President Barack Obama. He knew she had a private email server. He is complicit. They will not allow a constitutional crisis where the president of the U.S. knew about the risking of security,” Pirro said.

Pirro said Lynch “threw a shot across the bow couple weeks … when she said everyone in Washington knew about [the] email situation.”

“Translation, Mr. President, this ain’t happening because you’re my first witness.”

Lynch reported the meeting “was a great deal about grandchildren, it was primarily social about our travels and he mentioned golf he played in Phoenix.”

In a question-and-answer session at a Colorado event on Friday, Lynch repeatedly said she will “accept” the recommendations from investigators working on the case against Hillary.

But she also revealed that there are levels of “supervisors” who will review the recommendations, as will the director of the FBI.

She repeated that her conversation with Bill Clinton was social.

“It really was in that regard,” she said.

http://www.wnd.com/2016/07/judge-pirro-lynch-reveals-no-charges-for-hillary-on-email/#!

'Elites' Called to "Rise-up against the Ignorant Masses"

'Elites' Called to "Rise-up against the Ignorant Masses" - The Masses Reply: "Bring it on" - see what happens to you! 

Thursday, 30 June 2016 12:42 
Radio Host Hal Turner HalTurnerShow.com 

And so it’s on…

James Traub, at Foreign Policy.com, has called for the “elites to rise up against the ignorant masses.”  In a spectacular display of the very ignorance against which he issues his call to arms, Traub shows how thoroughly infected the establishment is with their group-think.  God forbid the ‘fist shaking’ rabble would actually think for themselves and effect an “utter repudiation of the bankers and economists and Western heads of state who warned voters against the dangers of a split with the European Union.”  If there was a miscalculation on the part of David Cameron, it was “how utterly he misjudged his own people[‘s ability to think for themselves].”

Rise up against the ignorant masses? Be careful what you wish for, Mr. Traub… Your intellectual nakedness just might end up on full, public display.

The Foundational Issue: The Most Significant Unit of Society

Traub shows himself ignorant of both British and American history when he concludes: “[M]aybe we have become so inclined to celebrate the authenticity of all personal conviction that it is now elitist to believe in reason, expertise, and the lessons of history.”

Philosophically, ‘Scottish Common Sense Realism’ provides a framework for understanding how someone’s thinking would begin with ‘personal conviction’.  This framework lies at the heart of the thinking of authors like John Locke, on whom Thomas Jefferson depended heavily when writing the Declaration of Independence.

Locke’s philosophy of government and economics expresses this framework and stands in stark contrast to that of Thomas Hobbes. Between the two of them we can drive the difference down to a single question: What is the most significant unit of society?  The answer for those who would follow Hobbes is the State.  For those who would follow Locke it would be the individual.

Money and Monetary Policy: The Scaffolding of Society

At the heart of debates over economics, then, lies the matter of money.  If you are inclined to build on Hobbes’ premises, money is a tool of the State for ordering the affairs of society.  If you build on Locke’s foundation, money is a utility contrived first by individuals to facilitate commerce.  If we revisit the debate between Keynesian and Austrian economics, these two presumptions about the nature of money animate each philosophy.  Keynes presumed an essentially Progressive, statist understanding of human government.  His prescriptions for monetary policy follow quite logically.

The problem with Keynesian economics at this point in history (which Traub at least recognizes to be singular) is he could not have foreseen either the computer or how it has changed banking on the one hand and supply-chain management on the other.  Neither could he have entertained the deployment of massive amounts of capital to essentially speculative financial products – most of which would have been illegal in his time.  These two things have conspired to elevate what Keynes called the “Zero Level Boundary” to a point above zero where money has been made so cheap that the actual creation of new wealth (by improving things) cannot compete with speculation and stock buy-backs for available capital.  Or in other words: when the chips are free, who wouldn't gamble?

But putting that otherwise necessary debate aside, Traub believes the elites are on the side of Madame History, so let’s consult with her.

The First and Second Bishops Wars (late 1630s - early 1640s) revolved around church order and leadership.  Today it is hard to appreciate the degree to which social order broadly speaking depended on church order in this time.  Charles I tried to enforce ecclesiastical uniformity throughout his kingdom, but the Scots were not having it.  Charles assembled an army to impose his order despite difficulty raising the needed money.  The First Bishops War resulted in further negotiations.  The resulting repudiation of Anglican order resulted in the calling of a Parliament, which subsequently demanded redress for both ecclesiastical and economic (tax) grievances.

Charles responded by dissolving Parliament.  This time, to raise the needed funds to pay his soldiers, he confiscated the gold held in the Royal Mint as a forced loan.  This gold did not belong to the Crown but to English merchants.  While the loans were paid back, as a result of this monetary impunity merchants began depositing their gold with trusted goldsmiths.  They received a receipt in return.

These receipts then began to circulate in place of the gold as a medium of exchange for goods and services.  The goldsmiths also realized that not all receipts would be presented for redemption at once and began issuing ‘extra’ receipts, lending them out at interest.  ‘Fractional reserve banking’ was born and these receipts became a forerunner to paper money (e.g. the Federal Reserve Note).

There are two things about this history which are instructive for us today: The first is the confiscation of the money supply by a ‘sovereign’ to enforce his preferred order on society.  Those who understand Hobbes’ philosophy also understand that a ‘sovereign’ need not be a monarch.  A bureaucracy, or an assemblage of them such as the European Union, can wield the power of a sovereign just as can a monarch and its palace. And that bureaucratic sovereign can rule with the same impunity which eventually drove matters to the English Civil Wars. But that impunity is not possible without control of the money supply. Second, this history clearly validates the premise that money is (and always will be) first a utility contrived by individuals to engage in everyday commerce.

It also exposes the underlying problem of monetary policy we face today: It should be clear that those (Traub and his elites) who espouse a Hobbesian philosophy of government would view money as a tool of the State.  Too bad history is not on their side.  And those Traub so artfully calls ignorant ‘fist shakers’ – well, they just want their money back.

Money and ‘Globalization’

Traub believes ‘globalization’ to be the root of the problem and caricatures the ‘fist shakers’ as older, xenophobic rabble pining for the cultural homogeneity of the past. This is a convenient straw man, as it does not account for the underlying stream of Scottish Common Sense Realism that continues to animate the thinking of ordinary people and, rather inconveniently, undermines the superiority complex of the elites.

The arguments for globalization generally claim a net economic gain for ‘free trade’ agreements.  But let’s look at the underlying data: First, these claims require that we treat all jobs alike.  For those who work in close proximity to the money supply – controlled as it is by what I will call (deliberately evoking echoes of Dwight Eisenhower) the ‘political/financial complex’ – a service-sector job and a manufacturing job are counted the same.  But when counted separately we see a dramatic shift away from manufacturing jobs toward lower paying, service-sector jobs.  The problems with this are both social and economic.

Economically, we become further and further removed from the creation of wealth.  A manufacturing job is, by definition, a job in which raw materials – which by themselves would be useless – are turned into useful things.  The difference between the value of that useful thing and the value of the underlying raw materials is what wealth is.  A service sector job, on the other hand, merely provides a needed or desired service to a consumer and does not directly contribute to the creation of wealth.

As a result, socially, we become an economy of mansions, butlers and maids.  What is especially maddening about this is it reflects the very income inequality we constantly hear about from the elites.  But if equality were really what the elites were after, they would insist we bring the regular population back into closer proximity to the creation of wealth.

But this is not what is being demanded; the rabble is required to assent to the redistributionist wisdom of the elites who view government, and as a result money, in a way that is fundamentally opposite to the traditions of individual freedom which form the foundation of what it means to be American.  The elites are fundamentally demanding sovereign control over the social order.  Just as did King Charles I.

And the ‘fist shakers’ are saying no.  Just as did the Scots and the English merchants after them.

Money and the ‘Fabrication of Reality’

Traub’s claim that the ‘nativist’ forces on the right – both on the matter of Brexit and here in the United States – are ‘fabricating reality’ is especially rich.  The British population was apparently subject to lies about the dangers of immigration.  Yet in Germany, a citizens’ group is using Google Maps to tag by location the instances of sexual crimes reported as being committed by migrants from the Middle East.  With other parts of the ‘elite’ telling us that women claiming sexual abuse should be believed, Traub and his tribe have some explaining to do: Who, it might be asked, is doing the ‘fabricating’?

And that question only gets more pressing when we look at economic series here in the U.S..  Starting with unemployment: In the late 1970s the U.S. Congress was faced with the hot potato of high unemployment.  Instead of making tough fiscal choices to keep the government from consuming resources which would have been more efficiently deployed by the private sector, they tossed the hot potato over to the Federal Reserve.  The Humphrey-Hawkins Act of 1977 added “full employment” to the Federal Reserve’s original mandate of consumer price stability.

Now if we were to return to the calculation methodology for unemployment prior to the passage of Humphrey-Hawkins, and then plug in the data available from then until now, the utter failure of the Fed to foster full employment would become painfully obvious.  But this would also mean Congress would have to come to terms with a simple fact: the Federal Reserve does not have – and has never had – the necessary tools to foster full employment.  This has always been about Congress hiding from its fiscal responsibilities.  And the ‘reality’ of employment in America has been ‘fabricated’ ever since by changing the calculation methodologies to hide the truth.  Again, it must be asked, who is doing to fabricating?

Then we move to inflation. In the early 1990s the Clinton administration and the Republican Congress led by Newt Gingrich were faced – again – with having to make tough fiscal choices principally to keep Social Security solvent.  And, again, they copped out.  This time they decided to change the manner in which the Consumer Price Index was calculated in order to suppress the growth of government benefits and the costs of borrowing.  It is important here to understand that interest rates are a function of the rate of inflation, which is reported as the Consumer Price Index.  While that might seem arcane, the following is not: No one refinances a debt at a higher interest rate.

So, having copped out on making tough fiscal choices, Clinton-Gingrich sent us down an unsustainable path of borrowing to the point where the United States Treasury, after paying for government programs, does not have enough money to even make the ‘coupon payments’ (also known as interest) on its bonds, to say nothing of redeeming the maturing bonds – the very textbook definition of ‘bankrupt’.  As a result, the reported rate of inflation has to be ‘fabricated’ to support ever-lower interest rates and the ‘debt ceiling’ constantly raised to enable serial refinancing of the national debt.

Thus something as fundamental to consumer prices as rent – which is rising at around eight percent a year – is not counted in the CPI.  Prices such as food and energy – as if the consumer is not impacted by these either – are also not counted.  The ‘experts’ Traub thinks so highly of tell us this is because of the ‘volatility’ of these prices.  Yet even a rudimentary understanding of economics is enough to know that this same volatility is exactly the data which should be warning us of a problem with monetary policy.  But Congress does not want to hear the truth, and so the elites must ‘fabricate reality’.

Be Careful What You Wish For

Traub’s call is for the ‘elites’ to rise up against the ‘ignorant masses’.  Yes, indeed, please do.  But be careful what you wish for.  You just might discover that we are having the very same argument had between Thomas Jefferson and Alexander Hamilton at the beginning of the Republic.  Consider the following comment from Jefferson, especially in light of the last financial crisis and its wave of foreclosures:

If the American People ever allow the banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers occupied. The issuing power of money should be taken from the bankers and restored to Congress and the people to whom it belongs. I sincerely believe the banking institutions having the issuing power of money are more dangerous to liberty than standing armies.

What is happening today has been brewing for a long time.  The elites will be exposed for their fabrication of reality and the Scottish Common Sense Realism that forms the philosophical foundation of the American idea of self-government will be vindicated.  The British have struck the first blow in an epic battle that will return us to sound money and the creation of vast amounts of new wealth – and eventually to freedom itself over debt slavery.

And it will be this return to creating wealth measured by sound money that will return us to an economy where that wealth is broadly and justly enjoyed by a thriving and growing middle class who are actually making things again.

https://www.superstation95.com/index.php/money/1557