Beware: The U.S. "Debt Ceiling" is an Utter Joke

It was instituted by Law in 1917.  In the 20th century, our Government's Debt Ceiling was raised 90 times.  From 2001 through 2016, it has been raised 14 times; and it was supposed to be raised again last Fall.  Through some sort of machinations, Congress conjured up "emergency spending funds" and postponed the problem until mid-March of this year.

Doublespeak---

March 2018 has come and gone, so what happened?  Congress SUSPENDED the Debt Ceiling until March 2019.  In other words, there is no Debt Ceiling presently.  It was suspended once during Obama's Administration as well.  Considering the history of it, arguably there never has been a Debt Ceiling.   The whole thing appears to be Orwellian Doublethink and Doublespeak.

The Nixon Shock---

Why is any of this important?  Why should we care at all?  It started with the "Nixon Shock" in 1971.  That's when the Executive Branch issued a "temporary suspension" of the convertibility of the U.S. Dollar into gold.  We went completely off the "Gold Standard".  Essentially, our Gov't defaulted on its Debt.  Shortly thereafter, the Dollar lost 25% of its value.  Our long, "temporary" excursion into fiat currency began.  Instead of being backed by gold, our "money" became backed by "the full faith and credit of the United States".  That means virtually nothing at all if our Gov't borrows, and borrows, and borrows into oblivion... and the rest of the world knows that.

The Largest Debtor Nation---

This great Land has gone from being a creditor nation to being the world's largest debtor nation.  To whom is the "money" owed?  Primarily, it's owed to foreign Central Banks, other Mega Banks (including domestic ones), and other Mega Corporations.  The kicker is this:  that Debt is now mathematically impossible to repay in full.  So why do those outfits keep loaning us funds?  For the same reason a Bank doesn't want you to ever repay the full amount on your credit card:  the perpetual interest payments; they will never end.  And from where does the Gov't get the funds to make those multi-billion dollar interest payments to Banks & Corporations...from personal income taxes, of course.

In the spirit of Orwellian Doublespeak, the Fed Reserve calls borrowing the "selling of Debt, or Bonds".  When other entities cut back on "buying Debt" (loaning us funds), the Fed Reserve (which is made up of privately owned banks) "buys" U.S. Bonds.  That essentially means a supposed part of our Gov't loans funds to our Gov't.  All this borrowing serves to devalue the fiat Dollar.

The Bottom Line---

Why should we care?  If for no other reason, because we are saddling our children and grandchildren not only with a continually devalued Dollar, but also with a Debt that will have interest payments in perpetuity.  Then there's the extremely high probability that our economy will collapse because of the Financial shocks brought on by the Fed's insane amount of borrowing.

When it comes to borrowing, the Trump Administration is following right in the footsteps of the Administrations of Obama, Dubya Bush, and others:  increasing the National Debt by multiple times.  And why all this borrowing?  For the most part, it's to maintain U.S. Hegemony throughout the world.  And why is that?  Because the availability of several key natural resources is peaking or shrinking, and without control of those resources, the USA cannot dominate the world and further enrich itself.  Naturally, the Establishment denies any such thing...hardly a big surprise.  The Plutocrats claim the whole shebang is to protect the world, spread democracy, and preserve freedom.  Right.  Edward Bernays would be proud of such claims.
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SIDE NOTE---
Price Inflation is not the result of the cost of production going up; rather, it's the result of the value of the Dollar going down.  When the value of the dollar decreases, it takes more dollars to buy the same amount of goods or services as before the decrease.
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Not only my opinion.  Be Well

The Largest Amount of Borrowed Money in Any Quarter in USA History

In the 1st Quarter of this year, the Fed borrowed $488 billion...the largest amount for any Quarter in our history.  The Treasury Secretary claims that the Bond Market is "robust", and can handle the borrowing.  In fact, that Market has peaked and is trending down.  It's starting to collapse.  Our Debt is a Bubble sitting on a pin. 

That amount of borrowing plus the Repub Tax Cuts plus other factors = a big rise in price inflation, probably within a year or so.  Mnuchin (Treas. Sec.) says it's good to have a little inflation..."We want wages to increase."  Better hope inflation doesn't exceed the increase in wages; and sorry, but most likely it will.  It's almost there already...only .5% away from the last wage increase numbers.

So much for fiscal responsibility.  Those in the Congress and the White House who claim to be "Conservatives"...aren't.  NeoConservatives are a horse of an entirely different color.

Try as they may, the Establishment (including Trump & Crew) cannot avoid the metrics of the overdue Economic/Financial Crash on the horizon.  According to a study by Deutsche Bank, countries that don't properly manage their Debt experience a huge increase in Financial shocks, shocks that can severely damage the economy.  That has been our path every 7-12 years since the 1973-1975 Recession.  You can thank the Fed, the Mega Bank Casino Capitalists, and most of our DC politicians.  It should be obvious that the bombastic Trump & Crew are not significantly changing anything for the better.  They aren't draining the swamp; they're draining the country of a decent future.  Take a look at USDebtClock.org ...not just the upper left corner, but the entire table/chart.

Not only my opinion.  Be Well

p.s.  Another reminder:  I'm not a Democrat or a Republican.

"In the Year 2525"

In 1969, a song came out by the duo Zager & Evans under the title "In the Year 2525".  All these years later, I see humanity going pretty much right where the song predicted.  We humans just can't seem to live and let live; plus, we're being sucked into the abyss of technology at a breath-taking pace.  It's de-humanizing all of us.  

Now it's almost nothing for a President to talk about nuking 25 million people...as if they're ants.  I find it not only sad & tragic, but also puzzling...and in a devastating way, comical.  As a species, our ignorance truly is beyond the pale.  Unfortunately, and despite popular opinion here to the contrary, I believe Americans are the worst of the bunch.  Our hubris on the world stage is absolutely astounding...no matter which political Party is in power.  We are so "holier-than-thou" that it boggles the mind.  It's no wonder to me that 80% of the world's people think that the greatest threat to Peace is our Fed Gov't.  That poll was taken a few years ago; now the number is probably up to 90% or more.  My main solace in all that's going on today is that in 10,000 years none of it will matter one whit.

Nevertheless, Life really is fascinating in these weird times.  

Long ago, a Zen Master said, "Once you understand the true nature of Reality, the only thing left to do is to have a good belly-laugh.".  I suspect that he was right.

p.s.  "I feel much better now that I've given up hope."   ~Woody Allen  [That's funny!]

Bottom line:  enjoy Life; it's short.  We all know that, but on a daily basis I think we tend to forget it.

Not only my opinion.  Be Well

The BIG Lie

About a month or two ago, Trump & Crew, Big Biz, & the Corporate Media claimed that one of the main reasons our economy is "recovering" was this:  wages have increased 2.9% (I forget over what time span).  Here's what they left out--- price inflation is now at about 2.4%...and rising.  

In addition, the Bond Market is collapsing, the Stock Market is still (despite corrections) overvalued partly or mostly because Corps. are buying back their own stock (thus falsely inflating its value), Debt is increasing (our Public Debt is now well over $21 trillion & rising rapidly, while total public & private USA Debt is a bit over $70 trillion), there are 27 million part-time workers in the USA, half of all the workers here make less than $32K per year, the IMF has launched a 10-year program to replace the Dollar as the world's reserve currency, housing rentals are sky-high, the home-owner Housing Market is in a giant Bubble, and Mega Banks continue to gamble with bizarre financial derivatives...thus continuing the Casino Capitalism that resulted in the 2008 Crash.  Meanwhile, Trump & Crew are busily reducing regulations...especially those on the Financial Sector.

The next Crash---meaning, the next transfer of wealth to the top echelon of the Upper Crust---is both overdue and unavoidable.  Ever since the 1973-1975 Recession, we've had an economic/financial Crash every 7-12 years.  The next one looks to be larger than any since (& including) '73-'75.  There's no reason at all to believe that the Boom-Bust Cycle is suddenly going to stop.  There are many reasons to believe that the next Crash will be the worst in at least the last 45 years. 

Be prepared.

Not only my opinion.  Be Well

The Oligarchy Handbook

To my knowledge, no such Handbook exists; if it did, however, this would be a good outline or condensed version.  NOTE---  Certainly not all of it, but much of the information below comes from Noam Chomsky's superb book and documentary titled, Requiem for the American Dream.  The editors of the documentary came up with this subtitle:  "The Ten Principles of Concentration of Wealth and Power".  I would call it "The Ten Steps for Instituting Corporatism in a Society".  These concepts are evident not only in the USA today, but also in all industrialized countries of the world...some more than others.

1.  Reduce democracy---
Reduce or eliminate the input and influence of commoners in the formation of public policy.  The "little people" should be treated as "spectators" when it comes to government because they are incapable of comprehending complex matters.  They should be distracted with consumer consumption and kept apathetic.

2.  Shape ideology---
This begins with indoctrination in education.  Critical thinking and any challenging of Authority should be suppressed.  Except for basic skills such as reading and math, the minds of students should be molded to always accept Authority, wage slavery, war, the hierarchy of society, and a belief in the wisdom of opulence and luxury.

3.  Redesign the economy---
Complete the move (started in the 1970's) to Neoliberalism, Financialization, and Globalization.  In part, that means privatization of gov't infrastructure & services and the promotion of worker insecurity.  Separate worker productivity from wage increases.  Keep wages stagnant.  One way to do that is to promote the moving of manufacturing to emerging economies with low wages and sweatshop conditions.  Reduce or eliminate regulations applying to the Financial Sector so that income can be made without producing any goods or services...as with the use of bizarre financial derivatives and other financial instruments.

4.  Shift the burden carried by Oligarchs---
Make the Rich and Powerful less responsible for funding gov't, and for their own mistakes.  Reduce their taxes, and promote "Too Big to Fail", "Too Big to Jail", "Bail-Outs", and "Bail-Ins".  Increase gov't subsidies to mega corporations.  Let the "little people" foot the bill.

5.  Attack solidarity---
Reduce (through Edward Bernays style "molding of the public mind" Propaganda) the caring by individuals for the fate of others.  Destroy unions.  Clamp down on freedom of assembly, nonviolent protest, and any group that challenges the status quo.

6.  Run the regulators---
Promote and encourage a revolving door between BIG Business and high-level Gov't service...especially in the Financial Sector.  Poo-poo the concept of "conflict of interest".  Promise and provide high-paying, cushy, corporate jobs to regulators when they "retire" from gov't service.  Strive for "Government-Sachs".

7.  Engineer elections---
Continue the practice of having high-level political candidates selected, groomed, and financed by the Rich and Powerful.  Continue to encourage gerrymandering and voter suppression/manipulation.  In Primaries, continue to encourage the Corporate Media to slight or ignore any candidate not approved by the Oligarchy.  Promote and encourage the discussion of personalities rather than issues.  Continue to have debates run by a private corporation, thus making certain that no Populist candidates are allowed to participate.  Make sure that corporations continue to be "persons", and thus are able to contribute to our political candidates (via "free speech" money) in a virtually unlimited fashion.

8.  Keep the rabble in line---
Inundate the public with Edward Bernays style Propaganda Kool Aid all year, every year.  Attack Organized Labor.  Attack any Populist group.  Promote nationalism rather than patriotism.  Talk jobs, not profits.  Never reveal that while the wages of the "little people" have remained relatively flat (after adjustment for price inflation) for 30+ years, our incomes have increased 700%.

9.  Manufacture consent---
Mold the public mind to our benefit.  Keep the Propaganda flowing--- Trickle-Down Economics really works, there's no conflict of interest in having a Mega Bank CEO run a Gov't financial department, Big Biz should have a Stay-Out-of-Jail card, the Boogie-Man is coming so we have to go to war, the type of Globalization we're promoting really is good for the public, the commoners can have either privacy or safety (but not both), etc.  They've bought it all so far, and they will continue to buy it.

10.  Marginalize the population---
Make society an amorphous mass.  Attack and destroy groups critical of Power and Oligarchy.  Discourage the linking of individuals into effective political action organizations.  Denigrate them whenever possible.  Encourage the belief that commoners cannot understand the complexity of the issues facing the world today.  This all creates an unfocused anger which makes people more susceptible to our control.  Gain control of the internet, which is the greatest democratizing force in existence today.  Oppose net neutrality whenever possible.
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And so it goes.
Not only my opinion.  Be Well

Here's How They Do It -OR- The Biggest Flaw in the Constitution

I posted this piece almost three years ago; below is a significant edit of it.  I believe this essay is crucial in understanding how the Constitutional Republic of the USA essentially has been overthrown.  It all started as far back as Alexander Hamilton...and it's not any kind of "conspiracy".  It was (and still is) an in-plain-sight battle between those who believe in genuine democracy and those who believe in Rule by Oligarchs and Plutocrats.  The latter (who are not constrained by political Parties or labels) always have referred to the rest of us as "the little people".

"They" (in the title above) are the Neoliberals, NeoConservatives, and other Oligarchs who over decades and by sheer, disorganized, dumb luck have brought about a coup in our Government.  For years I wondered how so many unconstitutional laws could come into being in this Land with barely a peep of protest from anyone.  I think perhaps finally I've figured it out.  Over the years, now and again, I heard this-or-that politician mention the "necessary and proper" clause of the Constitution; but I never paid much attention to it until recently.

"The Congress shall have Power ... To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof."
~ Article I, Section 8, Clause 18, United States Constitution

The Powers mentioned in that clause, "...the foregoing Powers, and all other Powers...", are those delegated by We the People to our Federal Government.  They are the Enumerated Powers that we have given to the Congress, the Executive Branch, and the Judicial Branch.  The Government has only those Powers.  Unfortunately, going all the way back to our Founding Fathers, some have claimed that Article I Section 8 Clause 18 gives other, implied Powers to the Government.  Hamilton and Jefferson debated that very point.

Alexander Hamilton was the Founder who proposed that our Gov't should be that of a Monarchy; he wanted a King as our leader.  Luckily, that idea quickly was scrapped.  Nonetheless, Hamilton kept fighting for a central government bordering on dictatorial.  He wanted a central bank, and he claimed that Article I Section 8 Clause 18 gave the Gov't implied Powers.  Hamilton argued that the "sovereign" duties of a government implied the right to use means adequate to its ends, regardless of specific Enumerated Powers.  Jefferson opposed him at every turn until Hamilton was killed by Aaron Burr in a duel, July, 1804.  Nevertheless, the seed had been planted.  Supreme Court Chief Justice John Marshall and others promoted the idea that the Government had implied powers.  At times, the "necessary and proper" clause was referred to as the "elastic clause".

The idea eventually lost favor in the late 1800's up until the 1930's.  With the Roosevelt Administration, the "elastic clause" was back in favor... and as the Fed Gov't expanded, the idea became more and more the flavor of the day.  As that happened, "Legislative Absolutism" took hold more and more.  In 1901, Supreme Court Justice Harlan coined that term, warning of a time when unconstitutional laws would be passed as a matter of course.  He was right.

Any examination of the "necessary and proper" clause with a view toward common sense tells us that no additional Powers are implied by it. Furthermore, it makes ZERO sense that so-called "implied" powers would be able to result in a law which would essentially nullify any specific written clause in the Supreme Law of the Land.  Finally, the use of "implied" powers apparently is virtually without limits.  It's whatever an indoctrinated, propagandized public will tolerate.

EXAMPLE---  The so-called PATRIOT Act essentially nullifies the Fourth Amendment.  Gathering of bulk data is permitted... without the people being intruded upon having to be suspects of any kind.  In addition, FBI Agents can write their own Search Warrants (called "National Security Letters")... the Fourth Amendment makes it clear that judges must issue those.  Finally, other portions of the Act violate the Due Process Clause of the Constitution.  [So do portions of the National Defense Authorization Act, the NDAA.]

All the "necessary and proper" clause is saying is this:  Congress can pass Laws in order to implement the specific Enumerated Powers that were delegated to them by We the People.  Nowhere does it say or imply that Laws contravening the Constitution also may be passed.  Only an attorney with no common sense would infer such a thing from that clause.  Both Hamilton and Marshall were attorneys.  [My admittedly limited experience with attorneys tells me that very few of them have any common sense whatsoever.  They appear to live in a very esoteric world; as with everything, I'm sure there are exceptions.]

In the "necessary and proper" clause, the "foregoing Powers" refers to the Enumerated Powers in clauses 1-17 of Article I Section 8.  "All other Powers" refers to Enumerated Powers in other parts of the Constitution...or, as the 18th clause puts it, "...vested by this Constitution...".  Nothing in this clause implies Powers that are not Enumerated.  That was Jefferson's position, and he was right on the mark.  The Monarchy-loving Hamilton thought otherwise.

So, here's the biggest flaw in our Constitution---
The following, or something similar, should have been added at the tail end of the "necessary and proper" clause and both the "commerce" and "general welfare" clauses:  "Nothing in this section should be construed to mean that the federal government has any powers other than those enumerated in the Constitution.".

My conclusion is that certain people in our political history wanted a way around the constraints of the Constitution.  It appears they desired a central government so strong that it bordered on dictatorial.  To achieve that objective, they inferred from primarily the "necessary and proper" clause, but also from the "commerce" and "general welfare" clauses, so-called implied powers.  I see that as pure BS.  I sincerely doubt that it was the intention of almost all our Founders to give the Government unknown, virtually unlimited Powers that could, in fact, contravene any of the listed or Enumerated Powers delegated by We the People.  That makes no sense... and more importantly, it makes the Constitution worthless.  The primary purpose of the Constitution is to restrain/constrain government; that's not possible if we accept the concept of "implied powers"... which can be almost anything.  

Unfortunately, "implied powers" has been the flavor of the day for decades & decades.  As well as some other people, Trump loves that flavor.  Most Presidents do.  Most people in both Houses of Congress do, too.  That's why we have so many unconstitutional Laws.  The Powers-That-Be have convinced themselves (and most Americans, it seems) that the bedrock of our Gov't, the Constitution of the United States of America, contains unknown, virtually unlimited, implied Powers.  There's no common sense in that view.

None of this bodes well for what is supposed to be a Free Society.  We are marching voluntarily straight into George Orwell's dystopian world.

Not only my opinion.  Be Well

The Appalling Gall of the U.S. Government

From beyond the grave, George Orwell must be having a belly-busting laugh.  I wonder if he knew that his writings were so prophetic.

On the News tonight (Sunday, April 22), there was a piece titled "Accidental Americans".  It was about a few folks who had been born decades ago in the USA, and then shortly thereafter, they and their families went back home to (in these cases) France.  By "shortly thereafter", I mean days or a couple of weeks.

Enter the Fed Government's IRS...that's the part of our Gov't to which I'm referring in the title above.  The IRS has decided that income taxes should be levied against not only residents, but anyone born here as well...even if they left as babies, never to reside here again.  So now these adults in France (and probably some other countries) are faced with US Income Taxes on their French incomes.  That makes no sense whatsoever.  I challenge anyone to explain sensibly how that action is justifiable.

The US IRS has a long history of exhibiting very little common sense.  This is another example of that; additionally, the agency too often adopts Gestapo-like tactics in "enforcement" actions.  It also glaringly shows how the Fed Gov't often displays zero respect for an individual's sovereignty.

I suspect that some people, perhaps many, fail to grasp the concept of "sovereignty".  It seems that too many people believe only The State has sovereignty, and that the concept does not apply to individuals.  In an ethical world/society, The State only REPRESENTS the sovereignty of We the People.  It's individuals who possess sovereignty, not governments.  That's why Plutocracies and Oligarchies around the globe constantly are propagandizing their citizens to believe that they live in a "democracy".  The USA is a prime example:  we don't live in a democracy; instead, it's a Plutocracy through and through.  It always has been.  The few politicians in our history who tried to change that were either marginalized or eliminated.

Wake up, Americans--- the Rich & Super-Rich rule us...to their benefit, and our detriment.  Now they're trying to do the same to people who don't even live here, and never have worked here.  Kudos to the lady in France who stated in the News interview:  "I'm not going to pay it [the U.S.-imposed income taxes].".  Why should she?  She never worked here in her whole life!  The gall of the IRS is beyond the pale.

Not only my opinion.  Be Well