Thursday, June 19, 2008

H Ross Perot and the Dark ages = Black Death .... Industrial Age = "Black Debt"

In the dark ages there was the Black death caused by bubonic plague. This germ single-handedly cleaned out most of the population of Europe. Lacking any knowledge at this time of viruses, Europeans thought that they were cursed by God and the Devil or whatever. Progress truly is wonderful but it's not utopian.

Fast forward to the present time and we now must deal with a left over the of the industrial age which James Dale Davidson and Lord William Rees Mogg refer to as "the black debt". Thankfully the "black debt" is not going to make corpses of you and all your neighbors, but it could make us poor as church mice. ( or worse residents of Zimbabwe under Robert Mugabe). You see, politicians thought that they could have a society where no one would ever experience true loss and they (the politicians) would get reelected for making sure no one ever lost. The social system is referred to as the "welfare state", and is the dominant social system of the Western world. (for the last 40 years at least).

I imagine the welfare state is a lot like smoking some potent drug. You experience euphoria at never really having to work hard, because the politician plays the role of thief and steals on your behalf. Unfortunately reality has a tendency to reassert itself. I am reminded of the last line spoken in the movie Gandhi with Ben Kingsley. "Think of it, every single tyrant that ever lived, is overthrown". Unfortunately it takes defective social systems a lot longer to pass away than individual tyrants. The Soviet Union passed away being a muscular "male" type of tyranny, but it took more than one leader and one generation to remove it, because it had a self consistent ideology backing it. Now the "female" version of repression where everybody's cared for lavishly at the expense of those who actually produce things of value, is experiencing its first shutters of death...

The shutters are being felt first in the United States. The United States is not the most generous welfare state, but it does have the most inefficient costly and expensive welfare state. In business the high-cost producer will usually disappear rather quickly. Governments however having guns and jails, can delay the inevitable lot longer. Surely the United States government has set the standard and the record for making more promises that can ever keep. The inflation eating your bank account to the tune of 12% a year according is just one the symptoms of this.

Now we are in 2008 and who should come out of the woodwork but a voice from our early 90s past. You guessed it H.Ross Perot is back dazzling us with charts and graphs. I think the poor guy means well, but he tends to start with a bad case of tunnel vision. So I wrote this guy a letter in the comments section of his website. I rather think I did it because of catharsis, rather than an actual expectation that one of his people would read it.

If you want to give H. Ross Perot your two cents, I would watch his presentation here... and then give your reply here...

Here is my response to that colorful millionaire from Texas........

Dear H.Ross Perot and esteemed members his Financial Team

This site fails to include one of the larger problems that exists outside of federal spending. While federal government debt is at record levels it is only one piece of a larger picture. When you add in household debt and debt incurred by all Americans the number stands at a staggering 57 TRILLION DOLLARS.

Increasing tax revenues may have to be done, but the question is "who will pay"? Most Americans are hip deep in debt to begin with and finance their lifestyles this way. Accepting a decrease in lifestyle from one generation to the next has apparently been unpalatable. Both the WWII generation and the baby boom generation after it has attempted to pass the debts it incurred, on to the next generation, via control over the guns and jails (otherwise known as government redistribution programs or the "welfare state").

To Ross Perot and his financial team. I will substantiate my complaints via the following links. This list is by no means meant to be exhaustive concerning the amount of study I have done on total societal debt. After providing you and your team some quick sources I do URGE you to do a more detailed study of the numbers, I will give you now.

Note that abstracts will be provided just above each source. I will give my opinion of the importance of each article as a component of our "black debt".

Let us begin.

The most important article is this one below. as it encompasses the totality of the debt. Implicit in the article: not all tax payers can afford much of an increase in taxes. The change in American lifestyles will have to be massive to have the sort of money in the till needed to fix this crisis.

The monetary conditions that enabled this debt must also be dealt with. In my opinion the fiat money system in INHERENTLY CORRUPT as it has insufficient checks and balances, to punish unwise government/large corporate expenditures. While the fiat money system was necessary during WWII, it should have been abolished LONG AGO. The first people that use the money in a fiat system get the full value and those who use it much later on, have much of the value depleted via inflation (especially working class people as wages are raised LAST in inflation cycles). In addition we all should come to the agreement that FRACTIONAL RESERVE BANKING be prohibited. Such a banking system meets all dictionary definitions of fraud! Credit crisis is the only possible long term result of dishonest money.

Not all foreign debt is created equal in its capacity to cause financial destruction. Energy debt to foreigners in my opinion must be curtailed even at the high upfront costs inherent to building new infrastructure. Simply put the US will continue to get involved in "oil state wars" until the addiction to foreign oil is broken. Wind and solar along with some good energy storage engineering would be sufficient to break much of this addiction as this all apply's to electricity consumption. New ethanol technology and fuel cells, will likely solve transportation woes. The costs upfront would be very high but a TOTAL BARGAIN compared to the 3 trillion we have spend just 4 years into IRAQ alone. (add in what we spend to reign in other Rogue States/double dealing allies and you save more by making America independent of unstable third world supply. People will pay ANY PRICE to keep the light, heat and transportation going.

Well Ross that is all I have to say. Your numbers are woefully incomplete unless you include debt generated outside governmental structures as part of the national debt. Never the less I greatly APPLAUD your website and a movement toward austerity in government spending. Such a movement will require a Thomas Jefferson style commitment to freedom via limited government.(re-read the Federalist papers if you could) I only hope that more of the adult population sees a return to the Constitutional principals of government, as a necessary change. Time is running out.

Sincerely Mr Angelino

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