Bad Economy? Blame Free Trade? Blame the Chinese? No! Not if you want a job!

Every economic recession and depression that rolls around always brings cries of “protect our workers.” We remember Ross Perot in his independent campaign complaining about free trade and his famous “there will be a giant sucking sound going south” referring to United States jobs lost to Mexican cheap labor. To the economically uneducated this seems logical and correct.

Our first Secretary of the Treasury and founding father Alexander Hamilton’s second report to President Washington was Operations of the Act Laying Duties on Imports communicated to the House of Representatives on April 23, 1790. In the report Hamilton endorsed an increase in import tariffs from 5% to 7% to 10% as well as an excise tax. During the Great Depression tariffs got as high as 60%. Congress approved the tariffs but not the excise tax. This seems to be the prevalent way of looking at taxes for the average person. It seems logical. People want to punish the other guy who lives across the ocean and not own neighbor. We can agree on that, right? Not so fast. Let have a closer look at what really happens with tariffs and quotas.

Ross Perot won 18.9% of the popular vote in the 1992 presidential election with a populist appeal to isolationist trade policies and opposition to the NAFTA

There are numerous arguments for tariffs and quotas. One is the infant industry argument. We need to protect our industries from the huge foreign competitors overseas. With time our domestic industries will achieve economies to scale and be able to compete with the foreign giants. The little guys verses the big bad guys.

We even see this argument used domestically by local residents’ every time Wal-Mart builds a new store. Local established businesses plead that they need the government to protect them from competition. The little guy verses the big evil guys.

Anti trust law was written to protect the “little guy” from competition from the big evil corporations like Standard Oil. This is a recurring theme throughout history. Robin Hood stole from the rich and gave to the poor. So what is the economic truth?

Quite the opposite most of the time. The rich and politically connected using the government as their instrument to increase profits and protect their industries from better and more competitive competition.

Bill Clinton signed NAFTA. NAFTA created the world’s largest free trade area, linking 444 million people and producing $17 trillion in goods and services annually. Estimates are that NAFTA increases U.S. GDP by as much as .5% a year.

The cold harsh truth is that tariffs and quotas are one of the most destructive things a country can do to harm its citizens. There are other more harmful tax, regulatory and political actions a government can do but high tariffs and draconian quotas certainly rate in the top five things a government can to impoverish its people, kill jobs and destroy economic growth. All one has to do is stroll down the list of economic basket cases to see the long-term affects of protectionist policies.

The most famous recent example was the Union of Soviet Socialist Republics (USSR) and Eastern Block countries. Granted communism didn’t do much for economic growth even with 1975 Nobel Prize economist Leonid Vitaliyevich Kantorovich, the Paul Krugman of his day, on their side. Still what in the end killed communism and the workers paradise was lack of authentic money. In the end without a viable competitive manufacturing base even the cheapest wages could not make USSR industries competitive with the rest of the world. Although a few arms industries were competitive, the AK-47 comes to mind, the rest of the Soviet manufacturing base became outdated and unwanted in the world economy.

So the next question would be how did they arrive at economic desperation? Anyone who lived back then knows the answer. The communist isolated themselves as much as possible from the rest of the world. Economically, politically, socially, every way they possibly could. The USSR had the ultimate quota system and that was to allow almost no western products or services to enter the USSR and it’s satellite member states. As their products became uncompetitive and the foreign currencies dried up the empire crumbled and died. Economic isolation leads to bankruptcy.

Economic illiterates like Paul Krugman spread misinformation about economics that pleases the fascist crowd but does little to promote understanding

Anyone remember the Yugo? Gone. Anyone remember the $12.2 million the British government gave to the car maker MG? Where is MG? Gone.

Economically tariffs and quotas create “dead weight loss.” No need to bore anyone with the details but suffice to say it is not a good thing for the economy. A simple example my economic professor used was if 200 people can buy a car for $21,000 domestically or $18,000 from a foreign competitor with the loss of one job then the 200 people would save $3,000 per person. Consumers could spend on other goods increasing purchasing power parity by 14%! The one worker would not be happy but if a economist looks at the transaction who is the winner? Consumers saved $600,000 and the worker lost his $100,000 union job. Clearly consumers won. How does this work out in real life? Much, much worse for the consumer than this example.

Anyone remember the uproar over the Obama “shovel ready” jobs that cost taxpayers $185,000 to $2 million per job? Tariffs and quotas produce the same dismal economic results. Here are some 2002 (to convert to 2010 dollars multiply the figures by 1.207) numbers from the Federal Reserve of what it cost to save ONE job using tariffs or quotas.

Benzenoid industry saved 216 jobs at a cost of $1,376,435 per job or a total cost of $297,309,960.
The luggage industry saved 226 jobs at a cost of $1,285,078 per job or a total cost of $290,427,628.
Softwood lumber industry saved 605 jobs at a cost of $1,044,271 per job or a total cost of $631,783,955.
Dairy products industry saved 2,378 jobs at a cost of $685,323 per job or a total cost of $1,629,698,094.
Frozen orange juice industry saved 609 jobs at a cost of $635,103 per job or a total cost of $386,777,727.

And the list goes on and on. The United States protects the ball bearing industry, sugar, machine tools, women’s handbags and even canned tuna. It does not take a rocket scientist to see how protecting certain industries from foreign competition and not others is a recipe for corruption. Looking at the numbers even Paul Krugman could figure that one out. Spending a million dollars to save a $100,000 job just does not make economic sense. Generally consumers lose $9 to $19 dollars in lost purchasing power for every $1 of benefit of a domestic producer.

The most economically illiterate politicians seem to graduate from Ivy League schools like Harvard. I think they confused the Communist Manifesto and John Maynard Keynes with economics and real economist

Another way of looking at it is a tax on consumers paid to corporations. If we eliminated tariffs and paid the Benzenoid industry $360,000,000 directly from tax dollars would this gain traction politically? Every statist from coast to coast would be screaming about corporate welfare. That is exactly what quotas, tariffs, and cumbersome repetitive regulation and graft are. Corporate welfare and corruption.

We the consumers are paying corporations our money for their benefit in the form of higher prices. Every time we consume a sugar product we are paying almost double for the sugar in the product. Our price for sugar (2009) is 33 cents a pound and the world price is 17 cents a pound. Why? Because of quotas that benefit a few very rich growers in Florida. There growers, like all big corporations, know that paying political contributions and asking for favors is not good business but GREAT business.

Colorado representatives John Salazar and Marilyn Musgrave received $40,200 and $34,137 respectively over three years from the sugar industry. In 2003 the United States consumed 8,614,460 tons of refined sugar. Adjusting to 2009 population numbers that would be about 9,105,484 tons converted to pounds times the difference of 33 cents minus 17 cents and the sugar industry pocketed a nice $2,913,754,880. This math may not be exactly right but its close enough. Split the difference between Congressman Salazar and Musgrave and say big sugar contributes $37,000 to all 435 congresspersons, 100 senators, and the president. 536 times $37,000 equals $19,832,000. So for our millionaire businessmen in South Florida clearly an investment of $19,832,999 yields a payback of $2,913,754,880 or $146.91 per every dollar invested. Of course every member of Congress did not get $37,000. In reality politicians are much cheaper to bribe than that. Still you get the idea of the economic and business side of tariffs and quotas.

Congress likes them because they get paid off. Business loves them because they are maybe the best legal playoff a fat cat can get for his money. Maybe selling illegal drugs pays better but that’s debatable. Seriously what businessman would not jump at the chance to make $147 off every $1 invested? You would be a fool not to make that investment.

What about the consumer in all this? The average consumer losses about $11 dollars a year in higher prices for sugar and sugar products. Not much to get angry about. That is what Congress counts on. They hope you do not notice the loss of $11 here and $20 there. Silly you the consumer getting upset over the cost of a movie ticket.

It has taken a $14 trillion dollar deficit and the possibility of a dollar collapse to get the American public to focus on basic economic policies. For generations there has been to a great extent misinformation out there from people like Paul Krugman, FDR, Harvard, Yale, powerful business interest, politicians, big business, fat cats, Wall Street, Washington, and the Federal Reserve. People with money and political connections work in unison to rip off We the People. They know the game and are counting on the ignorant peasants to stay glued to American Idol. Now the peasants are finally waking up to the reality that the crooks won the game.

Tariffs, quotas and bureaucratic red tape are just another government scam. What would I do? Cut tariffs to zero, no quotas, no corporate taxes, and no capital gains taxes. Unemployment would be 4%. Corporations would not bribe our politicians. Big corporations and fat cats would have to compete with domestic competition as well as foreign competition. For most but not all profits would shrink, market share would shrink. Increased demand for US workers would raise wages.

Students often ask me how this is possible. Remember that deadweight loss? Well it is boring and I will not bother you with it.

But what about the workers who lose their jobs? Most will find employment in more productive sectors of the economy. Why? Thats where the jobs and money will always be. Some will accept lower paying jobs. Some will retire and some will never adjust. Nobody said economics was perfect but it sure beats ignorance.

Rick and Cori’s Wedding 12-17-2010

Wedding are special occasions and my son Rick’s was no exception. Rick Thompson and Cori Carter have been together for three or four years and I guess it was inevitable. Still parents are always surprised the first time one of our children arrive at marriage. I guess it is time to stop calling them kids and realize they are grown up.

Rick will graduate the University of Central Florida in the spring of 2011 and Cori graduated from the University of Florida with a nursing degree. They reside in Oviedo, Florida. Here are a few pictures from the special day. May providence guide them through the next decade and the rest of their lives.

The ceremony took place with some assistance from the weatherman on a spectacularly beautiful 75 degree Florida winter day. The location at the Chapel in the Garden in Port Orange, Florida was simply the best wedding setting in Florida.

Richard William Thompson 12-17-2010

Cori Carter for the last time adjusting her veil.

Rick Thompson single for the last time with his uncle Larry Smith who performed the ceremony

Best Man Curtis Thompson

Rick and Larry

Rick, Curtis and the best guys in the world

Bridesmaids

Waiting for the bride

Every fathers moment of reflection, every brides moment of anticipation

Cori and Rick at the alter

Husband and wife

Rich and Cori Thompson's first step together as man and wife

Great grandmother Ruth Bechtel, 93, was married in 1937

Posing for pictures and taking them

The brides family

The grooms grandmothers and great grandmother

Bride and groom entering their reception party as man and wife

And finally their first night together as man and wife in their elegant bungalow

Greedy Bastards in Washington continue to Rip Off the People

Obama, Marie Antoinette Obama and the US Congress continue their lavish lives and payouts to the politically connected with yet another extravagant spending bill. What the hell is another $1.2 trillion among friends? All the talk of working “for the people” and in the end it comes down to a scramble for cash by a bunch of greedy bastards.

The Wicked Witch of the West refuses to die without one last grab for cash

1. $2.5 billion for a high speed rail line in California

2. $50 million nationwide for a high-tech train braking system

3. $800,000 for the Monterey Bay Sanctuary Scenic Trail to generate tourism dollars.

4. $450 million project to make a second engine for the F-35 Joint Strike Fighter is under the tree despite the Obama administration saying they thought it was a waste of money.

5. $80 million in grants to states and Indian tribes to preserve Pacific salmon

6. $13 million in clean water grants for rural and Alaska native villages

7. $4 million for the Kentucky National Guard’s marijuana eradication program

8. $330 million to state and local governments for jailing illegal immigrants convicted of crimes

Greedy bastards with power over you and me. A couple of lessons should not be lost on Americans who are not governed by emotion and illogical thoughts.

First a progressive income tax makes productive members of society a target of the lazy wealth envy crowd with communism in their blood and rip off artist.

Second there is no benefit in helping the poor with long-term monetary assistance. In an ideal world this assistance would be done at the local level by a Christian Church.

King George was never so callous with the public treasury as Obama, Reid, and Pelosi have been. “Give then the money” is the cry of the socialist and they certainly live up to that mantra. What have been the result?

The highest poverty rate in 45 years.

Greedy bastard idiots that either know what they preach is bull crap or ignorant stupid bastards that believe their own propaganda. Have pity on their ignorance and remember when these bastards had power and what they did in five years when they are on the streets begging for food.

All these trillions of misallocated resources that could have been spend on capitalism and the means of production all pissed away “for the people.”

Sheppard Smith (and the White House) has Trouble Understanding Economics

Yesterday (12-2-2010) as I was receiving my daily dose of network television propaganda I heard Fox News anchor Sheppard Smith trying to explain why America needed tax hikes on the rich. He was putting in the context of the White House position to give the appearance of neutrality, but it is very clear he thinks and supports the Democrat position on taxes. Here was his argument for higher taxes on the rich.

The rich have a pot of money that they do not use. It just sits there and does nothing. Why not tax that money and give it to the unemployed who will spend it. The economics term would be a higher marginal propensity to consume. It makes perfect sense to an economic illiterate or a Democrat or both.

This philosophy dates back to the fairy tales of John Maynard Keynes and his infamous Gross Domestic Product = Consumption + Investment/Savings + Government Spending + Net exports minus imports equation (Y = C + I + G + NX). Keynes (and the White House) mistakenly assume consumption spending is the same as savings and investment. This is a fallacy.

Shepard Smith has trouble separating economic myth from reality like most Americans

Investment and savings are MORE important to the economy because it allows entrepreneurs to create jobs that employ people and create economic growth. Rich people normally invest their money in stocks, savings accounts, mutual funds, and a wide variety of financial instruments. When this happens they are not sitting on their cash as Smith and the White House assume. Other people are using the rich people’s money to create jobs and economic growth. The money does not just sit idle under a mattress. People are using the money and it is working to create jobs by financing the means of economic production and growth.

Contrast that with paying unemployment benefits with the money. First about 40 cents of every dollar spent at the federal level currently is borrowed. So to pay benefits the federal government will go into debt deeper. Is it safe to assume even Sheppard Smith and the White House do not look at this as a positive outcome?

Second when the unemployed receive their money what are they going to buy? Most likely goods from China or foreign countries. Why? Because the American manufacturing sector of the economy as been shrinking since 1979. Why? Draconian United States tax policies that penalize production here in America. End the 35% corporate tax rate and the 15% capital gains tax and there would be plenty of production coming back to America. As it stands the politicians demonize capitalism and our corporations that produce jobs.

So the unemployed will receive some money from the rich, 60 cents on the dollar with 40 cents borrowed, which otherwise would have gone into savings and investment into the economy producing jobs and economic growth. The unemployed will spend it on some domestic consumption but also a large share will go toward foreign goods. Sheppard Smith’s and the White House’s argument makes no economic sense if they want economic growth.

Paying unemployment benefits may be the humane thing to do. It may be the right thing to do but economically there is no valid argument for taxing the rich to pay unemployment benefits. It hurts the economy severely taking money out of private hands that will be used for investment and spending it on most likely imported goods enriching foreign companies’ and corporations.

This is the type of economic illiteracy that runs rampant throughout our culture. Politicians can get away with it because of our abysmal education system and unengaged electorate. As for Smith he is like most Democrats, who can be incapable of logical thinking and react to issues based on emotion.

Glenn Beck Accuses White House of Cooking the Unemployment Numbers Book

Last week (11-16-2010) Glen Beck was complaining about Obama and the Democrats fixing the unemployment numbers. Yes and? Of course they do. Hoover did it. Roosevelt, Nixon and? Why would Hope and Change be any different? None the less it intrigued me so let’s have a look at how bad employment is now.

First I will limit the time frame to 10 years. That’s manageable and what people can comprehend. Needless to say 1929 to 1940 and 1979 to 1983 were just as bad as or worse than today. But I will ignore looking at those years and focus on just the latest decade.

Glen Beck accused the White House of fudging with the unemployment numbers. It wouldn’t be the first time.

The first thing that pops out about employment today is non farm payroll numbers are close to a decade low. After trillions of TARP money and “stimulus” shovel ready jobs have increased in this sector a whooping 0.67% from the low of 129,588 in December of 2009 (thousands, monthly, seasonally adjusted) to 130,462 for October of 2010. Not a lot of bang for the buck. With the same growth rate as 2007 the number would be about 141,388. 10,926,000 jobs short of a well run moderate growth economy.

Now let’s see what happened from August of 2003 to December of 2007 when coincidently the second of Bush’s tax cuts were passed in 2003. Non farm payrolls went up from a low of 129,822 in 2003 to a peak for the decade at 137,951. A growth rate of 6.3%. During that same time the population grew 4.2% so there was a net positive affect on employment during the Bush years after the tax cuts.

Contrast that with a population growth rate of 0.71% and a 0.67% increase in nonfarm payroll and one could conclude Obamanomics is at best a break even jobs growth plan. Nonfarm payrolls are important because 80% of our GDP comes from these workers.

If we look at the decade low of 129,588 as 0% and the high of 137,951 at 100% we are currently at 10.5% of potential employment for the decade. Pretty abysmal by any standards. Not completely in the ditch but way below the economic potential for America.

Now the Obots will say Bush drove the car into the ditch. I would say economic policies have a lag time of 6 to 9 months. Obama has had plenty of time to turn the economy around. Let me put it this way. If you put me, Dan Mitchell, Arthur Laffer, Peter Schiff or any economist that is not a Keynesian and understands production and the economy (Paul Krugman need not apply) would be booming in 6 to 9 months money back guaranteed. A year at the most. The problem would not be the booming economy but all that inflation unleashed from the trillions hidden away waiting for a better day.

Nonfarm payroll numbers for the last decade.

A second indicator of our employment situation is the manufacturing jobs. This is broken up into durable and non durable goods. Let’s look at durable goods. These goods are what we as a nation produce for our and the worlds consumption. When the dollar collapses these will be the industries that will be able to produce what we need to survive and trade for with other countries. If you destroy the manufacturing capacity of a country the country becomes a tourist destination and little else. Certainly not a superpower.

Manufacturing employment peaked at 12,320 (thousands of jobs) in June of 1979. The decade started off with 10,873 in October of 2000 and dropped to 8,856 in October of 2003. From that point there was a increase of 2% to 9,031 in June of 2006 and then a drop of 22.1% to 7,036 in December of 2009. Since then there has been a increase of 2% to 7,183 but 20.5% below the Bush years peak and 41.7% below 1979 levels.

A country cannot sustain itself on imported manufactured goods indefinitely. Tax policy should encourage manufacturing not drive it overseas to China. Non durable goods show a similar decline down from 6,301 (thousands) to 4,486 down 28.8% since Bush was inaugurated.

Durable goods employment steadily declining. When the dollar is worthless the people and politicians will realize how important this sector of the economy is.

The third number that is very disturbing is civilian employment which peaked at 146,368 (thousands, monthly, seasonally adjusted) to a low of 137,792 in December of 2009 and now 139,061. A loss of 7,307,000 jobs according to the US Department of Labor. 7,307,000, did you get that?

So what is the bottom line? According to the White House the unemployment rate is 9.6%. Glen Beck stated that this is bogus. So what is the real unemployment rate?

If we compare the pool of workers with jobs over the last decade, excluding institutional and military, employment peaked out at 63.4% in 2007. It dropped to 58.2% in 2009 and currently stands at 58.3%.

If we look at population growth from March of 2007 to December of 2009 there was a increase of 2.5% and a drop of jobs by 6.2%. The labor force participation rate reflects this as well dropping from 67.2% in March of 2001 to a decade low of 64.5% today. Simply put the unemployment rate is artificially low if you compare it to the employment enjoyed for the decade.

The population has increased 6% since 2004 but job growth is 0%.

Today’s worker has much more competition and fewer jobs than just four years ago. The unemployment calculation drops those who quit or do not find employment within a defined number of weeks. Exceed the designated number of weeks and workers disappear from the calculations.

Basically we have taken a giant leap backwards to June of 2004 with our employment including the massive increases in government jobs. The population has increased 6% since then from 293 million to 310 million. A lot more people looking for the same jobs.

Think about it. We have added 17 million more mouths to feed, cloth and shelter and not created one new job.

The first rule of economic policies no matter who you are is to grow the economy faster than the population growth. Both Obama and Bush with their Keynesian economic policies have failed miserably. This isn’t stagnation this is negative economic job growth when population is taken into consideration. Liberals can hem and haw all they want to about “saving” jobs but when the amount of money is taken into consideration, the added debt, the inflation coming our way just to stay even it simply wasn’t worth the negatives.

Yes Glen Beck does have a legitimate beef with the unemployment numbers. My unofficial guess? About 16% to 17.5% if all the workers (including illegals) who wanted work or were employed during the boom years are counted and excluding part timers. Part timers would shoot the number even higher to over 20%. Make no mistake these are hard economic times and unfortunately history shows us with economic incompetents in the Federal Reserve and White House it can and will get much worse. Unemployment went up to 24.9% in 1933 and stayed in double digits for the rest of the decade.

The only answer is to fire Obama and Bernanke and replace them with capitalist and monetarist who understand the value of a dollar.

Why are Elites so Dumb?

Did you ever sit back and just think of why elites are so dumb? Stupid ideas seem to come forth form their brains, pens, computers and mouths like diarrhea from a baby’s ass. Just mountains of crap that make no sense to the average man. It takes a degree not so much to figure it out but to see the elite’s point of view and their game plan. A rather disturbing view of rip offs and deception for the common man.

First off there are two kids of elites. Those that really do understand the game and are the puppet masters. The first group is made up of college professors, Marxist Jews, journalist, and big business with market share to protect and money to be made from the federal government protecting their interest.

The second group of pseudo “elites” pretends to be “enlightened” and “understanding” just so they can be a part of the liberal mainstream crowd. The second group consist of two subgroups.

Washington Post journalist Sally Quinn doesn’t understand what the elite’s game is about. A useful idiot married into liberal money and is promoting the cause to her obnoxious and callous peers. Maybe someday her husband will let her in on the secret.

The first subgroup would be someone like journalist Sally Quinn of the Washington Post who appears on O’Rielly from time to time. Even though Mrs. Quinn is a journalist it’s pretty apparent with her verbal joisting with O’Reilly she’s as dumb as a box of rocks and would fall into the pseudo elite crowd. She has had the liberal corn cob up her ass most likely her whole life and is probably a complete bore everywhere except the bedroom. She’s smart enough to get the dogma down right, like our president, but completely lacks the ability to truly understand the game or come up with new diversion strategies on her own which is of course why she is in journalism and not on Wall Street or in academia. A borderline idiot that mixes well with the Marxist at cocktail parties.

The second subgroup are the working stiffs who don’t have a clue or are just plain idiots. Many of my relatives in the northeast would fall into this category. Unquestioning loyalty to some dumb dogma without a inkling as to how the dogma plays out in the real world. A complete incapacity to think for themselves. They think money comes from Obama’s secret stash. They believe what they learned in high school. They like American Idol. They know every guy Jlo has banged. They think out of wedlock babies are no big deal and Juno was a cool movie. And these idiots vote in our elections. The elites the world over play the “I will help the poor and give you something free” game and the pseudo elites respond. They will be out in 2012 when Obama is on the top of the ticket. Idiot elites. Some would say cannon fodder.

The dumb elites just want to know how many guys Jlo has banged

The first group is dominated by Marxist Jews and greedy evil bastards who want to control the world. The George Soro and Adolph Hitler types who are depraved and care little for the suffering of their fellow man.

In academic the idle bored bastards come up with bull crap like cap and trade for two main reasons. The first is to make money. Highly intelligent people with money and connections know that no matter what the political game is they will come out on top. The more complex and cumbersome the better the game is for them. For a professor supporting the latest version of ripping off the peasants can lead to a life of decent money and plenty of leisure time.

The cap and trade game is a perfect example where the people get ripped off billions and big corporations like GE, Goldman Sacks and the usual suspects get the big money while the politicians throw a few million away to peasant third world countries to justify their actions and make it appear legitimate to the dumber pseudo elites that support them. Bored elites in academia can think up stupid redistribute the wealth political games all day long. Some of them get sold to the pseudo elites and some even to the general public and can become law. It’s all a game to the intellectually gifted, wealthy and politically connected.

Social Security, Medicaid, Section 8 Housing, AFDC and others are programs sold to the pseudo elites as helping the people when in reality if all these programs were gone there would be more than enough wealth in private hands to take care of the elderly in a much more humane and efficient manner. Our children would have biological fathers in the home. Women would not grow up to be paid by the government to be whores. We would have a much more decent society. The elite bastards could care less about decency. It’s all about the government money and power.

The real elites understand it’s all about the money and power. They make the game complex and the rules always favor them.

Shipping the old farts off to the nursing home may be convenient but the elderly educating and babysitting the grandchildren would be considered more humane and worthy endeavor for the aged among us.

The real elites would like to get their hands into as many aspects of the peasants’ life as possible for simple economic reasons. The bigger the government is the more money they will make. Obama has been a god send to Wall Street pumping billions into the coffers of the elites. When Obama isn’t shoveling the cash over to Wall Street Ben Bernanke is. The real elites understand this and keep changing the games and programs to keep the money coming in.

The pseudo elites play along as each new program is rolled out and outrage expresses at usually big business but also political parties like the Republicans or Libertarians. The elite dummies need to support a program and eventually the general public. The elites can throw out hundreds of programs and plans out there. It’s a simple numbers game. It starts out with 5% of the GDP under Teddy Roosevelt, then 8% under Wilson and now 25% under Obama. The Federal Reserve, Wall Street and Washington has never been a better place to work these days.

Even today as it is apparent to all but the dumbest in our society that social security was a Ponzi scheme the brainwashed pseudo elites still cling to the idea of “saving” social security. It’s only now when the last positive cash flow dollar has been ripped off by congress and the program is permanently in the red that Democratic strategist Bob Beckel admits to the idiot elites like Sally Quinn that it was all just a game by Democrats to scare seniors that Republicans would steal their social security every election. Just a sick game for the elites to skim the cash off the top and remove it out of the system to fund political corruption. Yea just a game Bob. We are all laughing now.

And that’s how the game works. Time after time, year after year. The puppet master elites conjure up a new scheme and roll it out to the pseudo elites, the pitifully dumb and brainwashed poor, and finally the general public. The elites get richer and the poor get poorer. Since Obama has taken office the poverty rate has increased to 15%. The poorest of the poor and the dumbest of the dumb will vote 95% for their master in 2012. A good business model if you are at the top. Pretty similar to drug dealing. Bad news, jail, death, injury if you are at the bottom.

How do I know this? I did the education thing and all the bull crap programs and fairy tale government policies are in the text books. Pages and pages of fairy tales and crap that confuse the less intellectually gifted among us like Sally Quinn but make perfect sense to the son of a Wall Street banker or New York lawyer. The truly gifted wicked bastards and politically connected figure out the game and play it. The pseudo elites like Quinn sell it to the public. The dumb ignorant masses vote for the politicians that implement the games and the working man pays.

Really it’s not complex if you think about it. A complex chess game for the connected and a world of blind faith for the followers. Put it in a text book and it becomes the “enlightened” way to think. Some like Quinn never figure out it’s a game and believe. Some know it’s a game. Some are just tools looking to see who bangs Jlo next. What it will lead to is a rape of the people time after time.

Overpopulation the Leftist Solution and the Right Solution

Almost all my relatives are leftist. Some of them more extreme than others. As the sole Libertarian I am more or less a pariah at family gatherings. Once in awhile I try to argue facts but it is pretty useless and I resign myself to blather about social justice and how Democrats are on the side of the people. One wonders how much money will have to be shoveled to Wall Street, GE, GM, Chrysler, unions and “green” companies by Obama and his party members before the lemmings take notice and realize the “peoples” party is a bunch of greedy bastards. Maybe someday but not today.

One of the issues that comes up, secretly, one on one usually, is the overpopulation of the planet. As if there is a “right” amount of people. Mother Nature gives and she can damn sure take it away. If Mother Nature decides there are too many people the population will drop with or without George Soros approval. When is that bastard going to die anyway?

Getting back to the overpopulation “problem” there are several web sites out there that address the “problem” such as “the Global Community: order and hope within chaos – we are now, and we are the future.” Pretty ominous declaration, like listening to Karl Marx telling me communism is inevitable. They declare:

“The Global community has researched and developed policies to reduce human population to 500 millions. We have regulated world population by means that are voluntary and benign and we have to take along with us a fair proportion of other life forms. Proper Earth management will certainly be a necessary tool to achieve our goal. A sound governance of the Earth is needed for the long term survival of our species. This is ‘la raison d’etre’ (reason for existence) of the Global Community. The Global community has proposed the creation of global ministries to manage Earth and humanities global problems. Of not there will be a collapse of humanity and of the environment. From now on every global decision we make will have tremendous consequences on our future. All men and women are responsible and accountable for the future of humanity. We have what it takes to decrease the rate of growth of world population and make it a negative rate of growth. Let us do that for the survival of our species and all life on Earth.”

Holy crap Batman, I feel like I just read the Communist Manifesto. “All men and women are responsible.” Did these lemmings ever hear of Paris Hilton? What a guilt trip placing the survival of the planet onto “every man and woman.” Proper "Earth Management"? Do these loons think if their model China become number one they will respect the planet?

Needless to say to any sane person these people are modern communist, dangerous and nuts.

Some of their proposals:

1. Why marry? Just make a oath of equality to the Global Community and enjoy each others company without the babies. (I guess you have to get the blessing of

the Global Community to have babies?)

2. Delay reproduction until later in life. (Civilized people do that now, are they talking about the third world people?)

3. Spread children farther apart. (I guess Fox News anchor Megan Kelly fails on that account. Is it any of their GD business?)

4. Government commitment to decreasing population growth. (Pretty fricking fascist and scary as hell.)

5. Local programs on family planning and contraception. (More government intrusion into our personal lives and bedrooms. Similar to the communist program of having block communist party members reporting on the neighbors’ anti-revolutionary behavior to the party boss apparatus. I can just see the local communist pigs reporting Juan and Maria had unprotected sex on the 14th of July to the Party Boss.)

6. Educational programs emphasizing the connection between family planning and the social good. (It is all for Mother Earth not you. You peons have no rights.)

How is this to be enforced? Lots of contraceptives and government “incentives.” What incentives? Chopping off penises and tits? Jail? Loss of job? They make it sound so innocent when in reality they are talking about a world dictatorship.

If the above measures do not work these Globalist are prepared to use:

1. Sexual abstinence. (Yea that will work, in jail.)

2. Contraception.

3. Serialization.

4. Abortion.

5. Infanticide.

And the Globalist cite China’s one child policy as a model to be followed. The blogs go on to talk about education, economic development of women and other government heavy handed communist tricks of the trade. More and more Uncle Joe Stalin solutions for the people. As an economist and Libertarian I just want to beat these idiots about the ears until some sense is knocked the fugk into them.

I have read enough garbage for the day, now it is my turn.

First dictatorships are inherently unstable. World dictatorships even more. People do not like to be told how and when to breed. People will revolt.

Second in the 20^th century we lost easily 300 million people due to war, sickness, and famine yet the world population grew at astonishing rates. Even in communist China with the madman Mao starving their peasants off by the millions the population grew. Governments would, in the long run, not make a difference. As has been proven time after time, the answer to problems is handled much more efficiently in the private sector by private corporations.

Third why be such assholes? Why do it the hard way? Why be so secretive and George Soros like? All Soros and China want is the destruction of the United States. Soros is an ex-Nazi Jewicide freak that will be dead soon and China does not give a damn about the environment. China would rape and pillage Mother Earth from one side of the globe to the other. China already is colonizing Africa, building infrastructure and buying assets for future exploitation of the people and resources.

These one world people could not think their way out of a cardboard box.

The answers:

The evil hard way. Test children starting in the first grade and by the 6^th grade get an accurate assessment of IQ. Perform sterilization on the ones in the bottom 50 percentile. No doubt racist and draconian. Guaranteed to increase the IQ of the population in a generation, if there is no revolution by then.

The easy capitalist way. Pay women not to reproduce. Put your money where your mouth is. Open clinics all over the world. Have capitalist businessmen figure out the demand curve to capture the most women effectively. Pay the capitalist pigs high wages, called efficiency wages, above the going market rate for the country. Let the capitalist businessmen figure out the details and before you know it third world women will be flocking into sterilization clinics all over the world to get their tubes tied and a pay check. Why waste money on the men? Last time I checked they did not breed.

There will be a learning curve. Some nations will resist, some will outlaw the practice, some cultures will resist. It will be a trial and error process. The key is paying women on a voluntary basis. No need for wars. No need to destroy capitalism and America. No need for the fascist Chinese to be the world leader, leading the way into environmental raping and pillaging of the planet like a bunch of army ants devouring everything in their wake. No need for secrecy and fascist Jews who hate Jews to lead your organization. All voluntary and funded through private donations.

What a difference it would make if these one world communist would utilize capitalism to achieve their purported ends. Of course some of them have no interest in solving the world population crisis and helping Mother Earth. For most in the environmental movement it is just another way to promote communism. For the true believers setting up sterilization clinics throughout the third world would benefit their goals and provide a revenue source for these countries. The progressive fat cats could channel their energies into a open and free exchange of desired goals for money.

As always there is a hard, nasty, dirty way and a easy capitalist beneficial way. The Globalist just need to get the top 100 wealthy families to buy into it and pay the bill. Of course the Globalist will probably find the top 100 wealthy families have no interest in “saving” the planet. The Globalist will eventually find out that while the top 100 wealthy families profess belief in their ideals of one world government to save the planet, in reality, as always, the top echelon are interested in power, money, and little else.

George Soros admits he screws up people and governments just for the fun of it. Most top 100 rich families would like the power of a one world government to settle some old scores. Like maybe the Jews getting even with Caucasian for centuries of discrimination and murder? Maybe using the Chinese to achieve that goal? What I am saying is people are bastards. Why chance it? Capitalism is always the best solution for the problems that ail you.