We are in a perpetual War. We must understand what war is to be effective in dealing with our adversary’s strategy. War is the battle for power, or dominance. This is nature’s directive to ensure the survival of the species. It’s as natural as life and death, and it’s an inescapable fact of life.

We are a social species! This means that the real war is fought on the intellectual, and the social level. Ideas, or concepts, is the way we make war. Every word has a denotation, and a connotation.

Those who teach you the denotation of a word control the symbol (picture) that you see in your mind when that word is used. The connotation of a word is the emotional meaning attributed to a word (good, bad, nice, mean). When someone controls the pictures you associate with a word, they control your mind! This is where the real battle is fought to control the Homo Sapiens!

You might ask, what does a word really mean?

"When I use a word it means exactly what I want it to mean, nothing more and nothing less."

If we would learn the true nature of war, we will stop reacting to our adversary’s wiles. We have wasted our precious resources in foolish skirmishes, which have ending badly. The Korean and Vietnam conflicts should have taught us to avoid unwinnable wars. However, the next generation only knows its conditioning. They have no real experience with which they might challenge the foolishness of the Wizard of Oz., the fantasy of his favorite stepchild, Disneyland, or the programming from the public school system! The victims of the media, and the school systems, are just conditioned organisms. The products of the system will react in a predictable way to the words (symbols) that are invoked! This is the perpetual war.

Hostilities only commence as the almost vanquished nation strikes out in agony (a mass psychotic event). Competent people would never let events go this far. The objective of free people is to avoid all entanglements with nations, and cultures, that are freedom phobic. Freedom phobic is defined here as those who are collectivist by heritage, or instinct. Most of the world adheres to a collectivist ethic The reality is that all these cultures, and nations, are the natural enemies of freedom.

This is the real arena for war. Democratic societies are forever embroiled in social conflict, as the various special interest groups seek to achieve the "moral high ground". Morality is relative in the social arena, because the majority of the electorate lack the training, experience, or instincts to evaluate the merits of an idea.

True morality (survival value) is the minimum requirement for a society’s survival. Without knowledge of the survival requirements, the voters will follow their emotions! "If it feels good, what’s wrong with it?"

Any legislation not based on true morality (survival value) will lead that society into extinction. The classical republics only allowed property owners to vote. The founders of the great republics knew that only people with a strong connection to the republic could be entrusted with the power of the vote. Military service was always mandatory for citizens to prevent intellectual dilettantes from voting for conflicts that might weaken that nation. Intellectuals are proficient at sending the other man (Alpha man) into a conflict, while these personal pacifists (Omega man) always seem to have an exemption from combat!

We must remember that deceits and treacheries are the primary weapons of war. Illusions, propaganda, and fraud will always be employed against the free state. The more freer the nation, the more often these tactics will be used against that nation.

Propaganda to enlarge the voting franchise has always been a tactic employed by the adversaries of a free nation. Propaganda is the tactic that conditions a society to eventually vote itself into extinction! The adversary uses different words that sound more noble to describe each "new social improvement". All new propaganda is nonsense to the current generation of voters. Then the years of Pavlovian, and Skinnerian conditioning by the public schools, and the media do their job. The system virtually guarantees that the next generation of voters will believe that the old "absurd" propaganda is "mother’s milk".

If you think that this is just a coincidence, read II -- PROLETARIANS AND COMMUNISTS, Communist Manifesto, 1848, Karl Marx

10. Free education for all children in public schools.

The alien’s strategy is to plant the seeds of extinction into your nation, nurture them through the taxpayer financed public schools, and the media, and then harvest the crop by invoking the programmed keywords. This ensures the outcome of their collectivist vision, as the logic pathways of the electorate have been neutralized, or electronically lobotomized. Hence, no rational dialogue will interfere with the outcome. Your adversaries have been busy, creating the new superstitions that will govern our nation when the new generation comes to power! The brilliance of this tactic is that you finance the institutions that program your children to destroy your culture, and your economy.

"Rituals are superstitions; they are adventitiously reinforced. The more conspicuous and stereotyped the behavior upon which the reinforcer is accidentally contingent, the greater the effect." -- Skinner, B. F. (1980), Notebooks, 303-304.

The military conflicts are just part of the diversion. If the targeted country goes for the bait, it will dispatch its most masculine men to go to slaughter. They will be destroyed in a conflict that has been designed to fail. This is easily achieved by defining the terms of engagement (combat rules) so as to guarantee failure. The real purpose of the exercise is to kill, or cripple, as many of our alpha males as is politically acceptable. This reduces the number of alpha males, and leaves the omega (passive) males as the only check against the emoting nature of the female. This war of attrition against the alpha males gradually removes a nation’s ability to act independently of other nation’s opinions, because self sovereignty is a patriarchal trait.

The rise of the matriarchy is guaranteed over time. The gradual change of values that occurs as the nation moves from a patriarchy to a matriarchy ensures that more socialist programs are demanded by the voters. With the creation of each new generation, more wars are started to liquidate the new alpha males, but all of the women remain. This further skews the voting pattern by increasing the percentage of female voters versus male voters. A good war can really decimate the alpha male population.

The joke is that the legislators have become totally captive to the wants of a militant welfare society, although the euphemism "entitlement "appears to conceal the obvious. There is nothing more frightening to a politician than having to work for a living. By the time a nation has devolved to this condition, the politicians are nothing but overpriced hamburger flippers.

The other result is the slow, but relentless disarmament of the population by the government. The men who know how to use weapons are slowly slaughtered, or crippled, by wars. Because ego is a constant in human nature, many of the males who copped out from combat rationalize their decision by embracing a non-aggressive, anti-gun, psychological posture. Everyone is a victim in a non- judgmental society! Psychopaths, and sociopaths, are miraculously transmuted into good children doing bad things. This attitude becomes inoculated into the society at large as right thinking! This attitude then becomes promoted by the media, and the public schools, as enlightenment!

The other subtle effect of these military conflicts is to convince the population that fighting is futile. They now actually believe that conflicts are unwinnable. It is a just a cleaver version of "Better Red Than Dead".

This is the second stage of the destruction of a nation. The objective of war is to destroy your opponent’s ability to make war. The economic war gradually reduces a nation into a state of poverty. Once this is accomplished, even the will to prevail is just another delusion. The nation will be reduced to guerilla warfare, as the street gangs take control of the inner cities. You thought they were just friendly drug dealers, providing "Mother’s Little Helper"! They rule you through your needs, so you can’t control their deeds.!

You’re so proud of your strategic nuclear and biological weapons! It’s a damn shame that you can’t use these weapons on the drug dealers, and the street gangs, because your connection is in your neighborhood. You are in total delusion, as your nation is already bankrupt, demoralized, and probably nearing a state of civil war at this time. Live with it! Your nation is already dysfunctional. Your real enemy is as near as your mirror. Therefore, you have already lost!

The nation is first bankrupted by insane social policies financed by debt to hide the real costs. Soon the number of people on the government payrolls, and the number of the entitlement recipients, outnumber the wealth producers. The government must now depreciate its currency at ever faster rates. This is mandatory to avoid the obvious confiscatory taxes that would be implemented otherwise. Many wealth producers would balk at 90 to 95 percent tax rates.

The government also uses its reputation to issue massive amounts of debt. The rule that it takes 10 years to make a reputation, and 20 years to lose it applies here. The government knows that it will be given the benefit of the doubt long past the point of insanity. It also knows the golden rule of debt. When you owe someone enough money, the lenders have really made an equity investment in you, instead of a loan. Who wants to walk away from megalosses? This automatically gains the government more time. There is also the fallacy that big countries can’t fail.

The government now begins creating military adventures to transfer money to their contributors from the defense contractor industry. This spends up the process of looting the host nation, and allows more money to be stuffed into their offshore banks. More control of the media is justified by the "crisis", which slows down the speed at which the information circulates! This gains more time for the government to plunder the treasury prior to the citizen’s response.

Just the principle of paying women to have children guarantees that the nation will be overrun with non-producers with a militant attitude. "You owe us our entitlements because we voted for you" is the battle hymn of the majority of the voters." The political system has turned into a circus by this time, in a desperate attempt to avoid a civil war. The pressure on the politicians is enormous to give an ever increasing amount of money, and services to an ever more militant nation of parasites.

Lest you think that I’m overstating the argument, you will find it instructive to learn that prison inmates have been receiving federal tax refunds while incarcerated. No, I’m not making this up! Prison inmates have been receiving tax refunds for taxes paid while employed. The problem is that these prisoners are incarcerated, and could not have been employed. Yet the IRS has been sending them checks.

The current spectacle of reparations being paid to various groups because of some past injustice is more of the absurdity of the entitlement culture. The people who committed these acts are long gone. Let’s steal more wealth from the living to mollify the leeches! We can always issue more bonds that are worthless. We can’t really feel sorry for the idiots who are buying these bonds. The Keynesians told us that we never have to repay the debt! "What, Me Worry?"

Abraham Lincoln paved the way to total collectivism by destroying the Republic. State Right’s were the most critical check on the natural rapaciousness of a centralized government. The end of States Rights effectively canceled the Constitution, if not de jure, then certainly de facto. The post Civil War era witnessed the parasites flocking to Washington.

The Republican President, Ulysses S. Grant, signed the Pendelton Act in 1883.

BACKGROUNDER ON THE PENDLETON ACT

"The federal bureaucracy in the years after the Civil War was generally undistinguished, because the system of selecting officials and supervising their work was irrational. That system had evolved in the early nineteenth century, and relied on the well-known political adage, "to the victor belong the spoils." That did not necessarily mean that bad people were appointed; many government officials were quite good, but the system itself was ill-suited to efficiency."

"The idea of rotation in office, however, was thought to be "democratic." Andrew Jackson in 1829 had declared: "No man has any more intrinsic right to official station than another. The duties of all public officers are, or at least admit of being made, so plain and simple that men of intelligence may readily qualify themselves for their performance." This had not been true in 1829, and was certainly not true fifty years later. The constant turnover provided no institutional memory; government workers panicked at every election and had little sense of loyalty to their jobs, because their tenure was often of such short duration. As Henry Clay put it, government officials after an election are "like the inhabitants of Cairo when the plague breaks out; no one knows who is next to encounter the stroke of death.""

"Over the years, the flaws became more serious and obvious. Political leaders required their patronage appointees to devote time and money to party affairs. After each election, winners were besieged by hungry office-seekers, and wrangling between the president and Congress over patronage became endemic. By the 1880s, one could open a Washington newspaper after an election and find many advertisements like this one:

"WANTED -- A GOVERNMENT CLERKSHIP at a salary of not less than $1,000 per annum. Will give $100 to any one securing me such a position.""

"The situation was compounded by the growth of the federal bureaucracy. In Jackson’s time there had been 20,000 persons on the federal payroll. By end of the Civil War the number had increased to 53,000; by 1884, 131,000; and by 1891, 166,000. Presidents were hounded by office- seekers. When James Garfield became president he discovered hungry office-seekers "lying in wait" for him "like vultures for a wounded bison."

Moreover, new government jobs required special skills. The use of typewriters, introduced in the early 1880s, meant that mere literacy and decent penmanship were no longer enough for a clerk’s job. With the creation of administrative agencies like the Interstate Commerce Commission and specialized agricultural bureaus, one needed scientific expertise. The spoils system was not the way to get them.

A civil service movement started in New York in 1877, and although it developed considerable public support, the politicians refused to go along. Then came the assassination of President Garfield by Charles Guiteau, a disappointed office-seeker, and the public clamor could no longer be ignored.

The Pendleton Act classified certain jobs, removed them from the patronage ranks, and set up a Civil Service Commission to administer a system based on merit rather than political connections. As the classified list was expanded over the years, it provided the American people with a competent and permanent government bureaucracy. In 1883 fewer than 15,000 jobs were classified; by the time McKinley became president in 1897, 86,000 -- almost half of all federal employees -- were in classified positions. Today, with the exception of a few thousand policy-level appointments, nearly all federal jobs are handled within the civil service system."

For further reading: Ari Hoogenboom, Outlawing the Spoils: A History of the Civil Serivce Reform Movement, 1865-1883 (1961); Paul P. Van Riper, Hstory of the United States Civil Service (1958).

Time has revealed the strategy that the alien’s have utilized against us. The establishment of the Civil Service was the first step in turning the US into a nation of slaves. We now had an "elite " group of parasites who are tenured, and who receive a lifetime dole from the taxpayers. The Civil Service’s loyalty is to the intellectuals who direct their efforts into the establishment of a collectivist utopia. Even the politicians can not fire a Civil Servant. Civil Servants are not elected, and are not subject to the voter’s will. They are the "real" government!

The danger of the election of a president, and legislature, with a real pro taxpayer agenda, has already been defeated. The Civil Service will just ignore the new occupants of the Executive Branch, and the Legislature. The Civil Service system guarantees that the bureaucracy will continue on, just as their collectivist masters have programmed them! They are sovereign, and can never be terminated unless they murder someone! This tactic ensures that there will never be an interruption of the collectivist agenda. Their real motto is "So many people to enslave, so little time in power!"

The very concept Civil Servant was the beginning of Orwellian doublespeak. The irony was that George Orwell wasn’t born yet.

Eric Blair was born in India in 1903. Educated in England at Eton, he moved to Burma in 1922 where he joined the Indian Imperial Police for five years. He eventually resigned because of his increasing disillusionment with British imperialism.

After the establishment of the Civil Service, the collectivist’s moved to increase the voting franchise. Women were given the right to vote (1920) only after the collectivist’s had achieved control of the government bureaucracies.

Woodrow Wilson (a past president of Princeton University) was the next key Collectivist. His presidency was bought so that he could create the Federal Reserve Bank, the Income Tax, and the Selective Service Act of 1917. He also brought us into World War I.

The US entered WW1 to assure the elimination of many Alpha males, and to start the conditioning process to bring the US citizens into their new role as state slaves.

The final destruction of liberty occurred under Franklin Delano Roosevelt. Most of his Marxist ideas were initially struck down by the Supreme Court. He proceeded to alter the legal environment. FDR knew that his threat to stack the Supreme Court with his collectivist coterie would bring the Supreme Court into total compliance with his wishes. FDR made the correct assumption! He bet that these parasites would do anything to stay on the federal dole! The irony of the Supreme Court’s capitulation to FDR, is that FDR later managed to pick eight more Supreme Court judges. His time as president was so long (four terms) that he appointed nine judges! FDR delivered the coup de grace to free speech when he forced the Supreme Court to give the ownership of the airwaves to the government in 1934.

It’s probably just a coincidence that government control of all communication is number 6 in II -- PROLETARIANS AND COMMUNISTS, Communist Manifesto, 1848, Karl Marx

Federal judges, including Supreme Court justices, have what amounts to lifetime tenure and a guaranteed salary. Although justices can theoretically be removed from office by impeachment, none ever has been removed The last time Congress attempted to pull this off was two centuries ago. The attempt failed, in the process proving the point that little short of criminal behavior could result in judicial removal. Political views —especially personal judicial views— are plainly off limits to those who might wish to impeach a hostile jurist. Congress can overturn Supreme Court decisions only by means of the cumbersome process of constitutional amendment. Such efforts have succeeded exactly four times in the history of the republic. In each instance, it was the Supreme Court that determined the meaning and application of the amendment. Catch 22 strikes again!

This reality ensures that no incoming President could get rid of these collectivists without the majority support of the Congress. Thus, we began the new world under an activist court. This was another brilliant move by the collectivists. The Hive’s media, and its public schools, praise the concept of an activist court to their listeners (victims)! According to the Constitution, only the Congress can create a law. The Supreme Court’s only constitutionally granted power is to determine whether a law is constitutional or not! The Court has no legal right to order anything, except lunch.

The media collectivists are continually creating new more stories to feed the folk. These people are professionals at creating stories. Rewriting all those history books has given them a lot of practice They can count on the support of the public schools to preach the" new" and "improved" history with great enthusiasm. By the time the WW1 was over, there was no point to reading history books. "History is more or less bunk." Henry Ford, May 25th, 1916

The irony is that the Hive’s reforms (always new and improved) claimed that Civil Service would prevent money from being stolen from the government. Now we see the spectacle of the government looters diverting all this money to their friends, while voting themselves huge salaries, and benefit packages. The comic part of this is realizing that these bureaucrats, and politicians, are deluded enough to believe that the wealth creating sector can, or will, continue to pay for this giant theft machine. It’s amazing that so many government workers have dual passports, and are citizens of a nation that refuses to extradite their citizens to any other country to face trial. I believe that we have a big conflict of interest here!

We have to admit that the government workers, and the politicians, are just plundering before the end. They know that the cupboard is getting a little bare! The voters appear to be indifferent to the rampant theft, as long as they get their entitlements. Election after election has shown that taxing the productive, and spending on pork for the folk, is the winning combination in politics. This allows the politicians to avoid the effort of personally creating wealth. Politicians generally abhor the stress of working, and would rather steal the wealth of others via taxes. They give the looted money to their constituencies, less a large service and handling charge!

2. A heavy progressive or graduated income tax. II -- PROLETARIANS AND COMMUNISTS, Communist Manifesto, 1848, Karl Marx

On the 23 of June, 2005, the Supreme Court of the United States of America ruled against the last illusion of property rights. This latest incroachment upon our constitutional guarantees opens the door for complete confiscation by the government. The government will become more predatory as their need for money continues to accelerate. Gone are the days when they slowly sucked you dry through property taxes. Now they take your property even if you have paid the taxes! They have shown their hand, and have already begun to grab your land!

1. Abolition of property in land and application of all rents of land to public purposes. II -- PROLETARIANS AND COMMUNISTS, Communist Manifesto, 1848, Karl Marx

"In politics, nothing happens by accident. If it happens, you can bet it was planned that way."
Franklin D. Roosevelt

Why are we suprised that so many companies, and talented people, are fleeing this vampire nation?These valuable resources are voting with their feet. The best would rather start anew, where they have found a saner society. The ultimate irony is watching the US compete with Sweden in the race to economic oblivion! We will win the Economic Doomsday Cup, even if it means destroying ourselves!

"Vampirism as the ultimate form of communism, in which blood is redistributed from producers to parasites." Thomas M. Sipos, Vampire Nation.

You know that it’s a vampire nation when the Hive demands Dignity with their Dole!

We need a permanent economic stimulus generator in this time of financial trepidation!

Too many Americans are feeling financial angst. Uncertainty breeds fear, and fear slows consumption. We must eliminate the tyranny of uncertainty from our shores forever!

As Franklin Delano Roosevelt said, "we have nothing to fear but fear itself!"

This new and necessary agency’s primary mission will be to provide perpetual stimulus for the economy.

This agency will also guarantee the consumer with the security and dignity befitting their true contribution to global job creation.

Finally, the professional consumer will be recognized for their heroic efforts on the behalf of those who do not have talent to be true consumers.

Never again will Americans have to tolerate the tedium and stress associated with working. Let the populations of other nations do the working. We have evolved beyond being mere workers. In this era of global competition, Americans must do what we do best. Americans are the best at shopping, creating codependent support groups, and doing lunch.

We ask all to come together to insure that the Congress creates this vital agency. This is a "now" agency for a N.O.W. nation!

This new federal agency will be empowered to guarantee complete total financing of all consumers. This agency’s authority will insure that the economy maintains a minimum growth rate of twenty percent per annum.

This agency will have authority over the bankruptcy laws of the United States. Any time the Consumer Confidence Index drops below 95 percent, this agency is empowered to dissolve all consumer mortgage and credit card debt.

This new agency will forever remove uncertainty over the future for the professional consumer by providing pensions and medical insurance for all qualified consumers. This is in addition to an entitlement of $2500 per month for living expenses for a single consumer. Each dependent will increase the consumer's entitlement by $750 per month, up to a maximum of $10,000 per month.

The accumulated psychic damages from prior generation's attitudes towards minorities are automatically redressed by the authority granted this new agency. All victims of persecution (both prior and current generations) will receive double the monthly entitlement allowed to white males, and their families. However, mixed marriages will receive a special bonus consumption allotment for assisting in our nation's goal of diversity!

This agency also redresses the physical and mental risks of consuming that have been traditionally borne by women throughout history. Should a woman have a physical or mental breakdown while consuming for her country, the business owners that caused this event will be subject to a $1,000,000 fine and payment of all expenses necessary for her complete physical and psychic recovery. This new agency will guarantee that no woman will ever again be subjected to any stress which might impair her consumption function!

This agency will also hire psychic healers and channelers to insure that any and all psychic damage to consumers is identified and redressed. The agency will establish professional standards that healers and channelers must meet prior to employment with the agency. The agency will also work with the appropriate government agencies to facilitate the financing for professional schools of psychic healing and channeling. This will allow the agency to fulfill its objective to insure a sufficient quantity of qualified psychic care practioners to meet the needs of the new society.

California has already mandated tribal psychic healing methods as mandatory for the Hmong peoples. New careers abound in California as a result of this enlightened court ruling! Sacramento's Third District Court of Appeal ruled that the slaughtered animals and herbal medicines were part of a traditional Hmong spirit-calling ceremony called Hublee, designed to heal the souls of those who are sick and injured. The new agency would automatically address this pressing need via its

professional cadre of psychic healers and channelers.

This agency will insure that all student loans are placed in a suspense account, pending later resolution by a rescheduling of all government debt. In the interim, the necessary interest payments will be borrowed by the government. These new IOU’s will be placed into the same trust fund that holds the Social Security IOU's. This will insure confidence by the lenders in this government agency’s creditworthiness.

This agency will be responsible for the issuance of Consumer Debit Cards to all citizens over three weeks old. This will insure that all consumers will have their own Consumer Debit Card. This will allow minors to learn the art of consuming from the beginning of their development This new childhood conditioning program will eradicate antisocial traits such as saving, investing, and frugality from the society in only one generation. Studies have shown that this double crediting of family's accounts will create 1,000,0000 new jobs.

This agency will be responsible for the creation of, and the enforcement of the Professional Consumer status. The Agency will have complete access to all consumer expenditures to insure that no moneys are diverted into selfish, socially deviant activities such as buying assets that do not depreciate.

Buying raw land or commodities is a forbidden activity. The purchasing of gold, silver, collectibles such as gold jewelry and rare watches, and the hoarding of currency over $25.00 are also prohibited activities The penalty for these activities is suspension of the citizens Professional Consumers status.

The establishment of IRA’s or 401 K's show a lack of faith in your government. This deviant behavior will be deemed an antisocial action, and will result in a permanent loss of your Professional Consumer status.

Any consumer who has lost their Professional Consumer status will be denied all medical services (including dental and psychic health services), all further credits to their good consumer retirement account, and a 80 percent reduction of their monthly entitlement ration. Any consumer who allows more than a five percent equity buildup in their residence will lose their Professional Consumer status until such time as they refinance their residence, and begin consuming with the funds.

The last power given to this agency is the authority to award the Medal Of Honor to any consumer who dies while engaging in extraordinary consumption. This new category of the Medal Of Honor will show the public what is expected of them in this new economy. All recipients are eligible for burial in the shopping center of their choice at the government’s expense!

Studies suggest that all the costs incurred by this agency will be offset by the new bull market in equities. Investors may have complete confidence that the Dow Jones Industrial Average will reach 1,000,000 three years after the creation of this agency. This will completely eliminate the pension crisis that so many corporations are facing today.

Economists in the real estate sector estimate that housing prices will increase 40 times with this new stimulus. The taxes collected from real estate sales should eliminate the true National Debt in four years.

Some economists estimate that the net trickle down effect will result in quintupling the GNP, and create 1,900,000 jobs No wages and benefits have to be paid, because all consumers will have their Consumer Debit Cards, which provides for all expenses.

A small increase in business taxes will occur, but most businesses will be so happy to have free labor that the new 90 percent business tax should not be considered onerous. The reality is that the consumers have most of the votes, so there will be no real resistance to this tax increase from the Congress.

Freed from the tyranny of employee costs, businesses will create huge staffs. Some studies have shown that there will be soon more jobs available in the US than there are workers on the planet. This will create major breakthroughs in robotics, which will transform the US into the supreme technologist of the globe.

One study estimated that the creation of this agency will create $17,000,000,000 in new spending for the US. It will also eliminate counterfeiting of our currency, and identify theft, as there would no longer be any profit in these activities. Violent crime would plummet as most people will now be properly medicated.

In fact, many criminals have already changed their behavior as a result of the existing Medicare program. In earlier years, sex offenders would have resorted to crime to get their Viagra. Now Medicaid provides Viagra for them, removing the need for them to resort to crime to get their drugs. Medicaid may be the only process left in America that hardens American males at this time.

Here we see the first hint at how successful this new government agency will be at stimulating new business opportunities. Medicaid coverage providing Viagra for sex offenders has already yielded many benefits. The drug companies profits are up, demand for sex abuse therapists is up, increased demand for sex crime experts in the police departments, more tax collectors hired to collect the new taxes, more newspaper ads for property tax liens filed and the resulting tax auctions, etc.

This federal agency will create untold wealth for the entire globe!

If none of the expected financial benefits should materialize, we can always issue 100 year bonds. One Hundred year bonds were popular in the 1890’s.After all, "we owe it to ourselves" Issuing 100 year bonds insures that the generations yet unborn will get stuck with the whole bill, and we won’t have to listen to them complain about their status as financial slaves. Think of all the wonderful benefits that will occur from issuing all these new bonds. The money supply will go into Warp nine!

Forget E Pluribus Unum. This nation’s motto is Got Pork?

Wayne N. Krautkramer

Onlypill@cox.net

The biggest change of the banking law in years becomes effective in October 28,2004. This "enhancement" is called Check 21! You will probably have higher checking account services fees if you are a customer of the Federal Reserve System. Upgrading is mandatory and automatic for all personal and business checking customers. Sir Alan is now learning from Microsoft. Let’s cut to the chase, and see what Sir Alan has created for us.

THE HISTORY OF CHECK 21

On December 21, 2001, Chairman Greenspan sent the original Check 21 proposal to both the Senate and the House Banking Committees.

The Check Clearing for the 21st Century Act (Check 21) was signed into law on October 28, 2003, and will become effective on October 28, 2004. Check 21 is designed to foster innovation in the payments system and to enhance its efficiency by reducing some of the legal impediments to check truncation. The law facilitates check truncation by creating a new negotiable instrument called a substitute check, which would permit banks to truncate original checks, to process check information electronically, and to deliver substitute checks to banks that want to continue receiving paper checks. A substitute check would be the legal equivalent of the original check and would include all the information contained on the original check. The law does not require banks to accept checks in electronic form nor does it require banks to use the new authority granted by the act to create substitute checks.

CHANGES TO CHECK 21 SINCE ORIGINAL LAW PASSAGE

The Federal Reserve Board on Monday approved a proposed rule to amend Regulation CC and its commentary to implement the Check Clearing for the 21st Century Act (Check 21 Act). The Check 21 Act was enacted on October 28, 2003, and becomes effective on October 28, 2004.

To facilitate check truncation and electronic check exchange, the Check 21 Act authorizes a new negotiable instrument called a "substitute check" and provides that a properly prepared substitute check is the legal equivalent of the original check for all purposes. A substitute check is a paper reproduction of the original check that can be processed just like the original check. The Check 21 Act does not require any bank to create substitute checks or to accept checks electronically.

The Board's proposed amendments: (1) set forth the requirements of the Check 21 Act that apply to banks; (2) provide a model disclosure and model notices relating to substitute checks; and (3) set forth bank indorsement and identification requirements for substitute checks. The proposed amendments also clarify some existing provisions of the rule and commentary.

The Board's Federal Register notice is attached. Comment on the proposed rule is requested by March 12, 2004.

PROBABLE EFFECTS OF CHECK 21 AS ESTIMATED BY THE AICPA! 

As we move toward a truly electronic society, what we once demanded in print is changing before our eyes. Electronic delivery is affecting almost every industry, and banking is no exception. In fact, many banks have already begun truncating checks by delivering photocopies of checks or by sending a list--detailing the check number, the amount, and the clearing date--and holding on to the originals instead of sending them back to consumers. On October 28, 2004, the Federal Reserve will authorize entities in the check clearing process to take this one step further. Any entity in the clearing check process will be able to truncate checks and forward an electronic copy of the check. When this occurs, the electronic image of the check must be capable of being transformed into a "substitute check" or a printed, electronic image of the original that will now be recognized as the legal equivalent of the original check.

The check truncation concept had been around for many years, and many drawer banks truncated checks in their monthly statements to customers. The passage of the Check Clearing for the 21st Century Act, or Check 21 Act, was helped by the terrorist attacks of 9/11. The grounded planes cost the banking industry billions of dollars as check processing was grounded as well. Electronic delivery means banks will no longer have to fly checks all over the country, and consumers may receive copies of their checks instead of cancelled paper checks. While the Act is voluntary, most banks are expected to take advantage of potentially significant cost savings, with the larger institutions leading the pack. It is expected that the process will take a number of years before it becomes ubiquitous.

The intent of the Act is to cost-effectively and efficiently streamline check processing by enabling the electronic processing of checks. The ability to process checks electronically will decrease processing time, transportation costs, and the possibility of items lost or destroyed in transit. Checks will clear in hours instead of days because a substitute check can be accepted as legal. And although the process is voluntary for all banks in the clearing process, once one bank decides to create a substitute check, all other downstream banks involved in the clearing process must use the substitute check.

Any bank in the check clearing chain can initiate "truncation" and create a substitute check. Whether the substitute check is then forwarded physically or whether it is transmitted electronically will be determined by the agreements between banks in the clearing system. Banks and institutions will also make their own policies on how long to keep the original check.

Detecting check fraud may be more difficult as a result of the Act. But the Federal Reserve maintains that since the original check is no longer used for processing, the security of the electronic systems will reduce human access to your financial information. In addition, the shorter processing time will allow the identification of check fraud or forgery more quickly. However, proving alterations and forgeries may become more difficult if there is no access to the original paper and ink which can provide important clues such as pressure points.

More information… The Check 21 Act was enacted in October of 2003, and becomes effective on October 28, 2004. More information on the Act, including Frequently Asked Questions can be found at http://www.federalreserve.gov/paymentsystems/truncation/default.htm. 

THE ECONOMIC CONSEQUENCES OF THE CHECK 21 ACT

Sir Alan has outdone himself with this legislation. He has not only lowered the check clearing costs for the banks, but he has also created the probability of a large increase in fee income for the banks as many customers "bounce" checks. Yes, the "float" is gone. Many consumers and small businesses have relied on the "float" to "get by" for years. This option is soon extinct. There is also the possibility of major fraud with this new system (at least in the opinion of the AICPA). The bean counters may be right on this potential problem. "But wait. There’s more!" 

SIR ALAN’S MONETARY "PIECE DE RESISTANCE"

Sir Alan has played the liquidity card to defeat the recent slowdown in the growth of the money supply. Most readers are familar with the monetary indicators and their interpretation. We diligently watch the rate of change in M1, M2, M3, etc. However, the wild card in monetary calculation is velocity. The velocity variable is the rock that sank the Chicago School of Economics. Milton Friedman failed to incorporate velocity into his economic models. J. M. Keynes made the same mistake. Ironically, Monetarists and Keynesians may have more in common than either one would ever acknowledge.

Sir Alan is ready to implement the upgraded velocity turbocharger. The termination of the float guarantees that the velocity of the monetary measure M1 will go up. We are now entering the uncharted parts of the monetary universe at Warp Nine speed.

We may be doomed, but we will be liquid!

Wayne N. Krautkramer onlypill@cox.net 

  http://onlypill.tripod.com/zarathustra

We are inundated with market manipulation and conspiracy theories. I will attempt a logical inquiry into this phenomenon. For a good lesson in information manipulation, your best bet is to go to the stock market. Lest you think that Marty Schwartz is an isolated case, read the Ray Dirk’s story. Therefore, I shall confine my study to the commodities markets. The commodities markets are the oldest markets in the world. The various commodities provide significant amounts of data for analysis. If effective manipulation exists, one will be able to track its effects. We will define successful manipulation as having interfered with a commodity’s ability to exhibit the normal accumulation, distribution, and trending zones. This creates an objective benchmark for this inquiry.

Any discussion of market manipulation must be reduced into the elements that might create the belief in the phenomenon. We must first deal with our need to believe in market manipulation. Since actual evidence of market manipulation is sparse, what is generating this tendency to suspect manipulation, or conspiracy? We must further define the process to differentiate between the attempt to manipulate the markets, and the actual manipulation of the markets. A further distinction is necessary. One must distinguish between those processes that are manipulatable, and those processes that are not manipulatable. For example, political and social processes are manipulatatble, and may be nothing more than manipulation, coercion, and conspiracy. Physical processes are subject to the laws of nature, and any attempt to successfully manipulate these processes are possible only by complying with the physical laws involved. One could be found in the position of claiming the laws of nature manipulate the markets. This forces us to examine the true nature of markets. Are they controlled by man, or some bigger force? The final question is the definition of market manipulation. Are we speaking of the intra day price action, or daily price action? The weekly and monthly price charts will show a different picture. Trading ranges behave differently than trending markets.

Do we have a tendency to believe in manipulation, and conspiracies? The answer is yes! The social world we inhabit reveals attempts to coerce, manipulate, and regulate in every facet of social interaction. The attempt to control outcomes to our benefit is part of our survival mechanism. It is indisputable part of existence in a society. However, this does not prove that these conspiratorial efforts are effective in manipulating markets. Aesop once said, "And the mice voted to bell the cat". Many activities are beyond the power of social pressure. The laws and pretensions of humanity are just foolishness when confronted with power of nature. Therefore, any intelligent discussion of market manipulation must properly differentiate between social creations, and those phenomenon that are based on physical reality and it’s laws. A steel mill would be an example of a process that is indifferent to the schemes of society. The only way to increase output is to increase the inputs, or evolve a new technology that requires a complete understanding of the principles of metallurgy. Wishing, hoping, dreaming, and screaming are irrelevant. Social activities and politics are the domains of emotions and perception manipulation, not the commodities markets! Again, J. L. Livermore has anticipated our question. Livermore said, "I sometimes think that speculation must be an unnatural sort of business, because I find that the average speculator has arrayed against him his own nature. The weaknesses that all men are prone to are fatal in success in speculation- usually those very weaknesses that make him likable to his fellows or that he himself particularly guards against in those other ventures of his where they are not so dangerous as when he is trading in stocks or commodities."

The most important facet of market manipulation is the manipulation of information about the market. This is the rock that sinks most investor’s ships. George Soros made an interesting observation about market information.. He said, "Economic history is a never-ending series of episodes based on falsehoods and lies, not truth. It represents the path to big money. The object is to recognize the trend whose premise is false, ride that trend, and step off before it is discredited." This observation comes from the greatest currency trader alive. I believe that he has thrown down the gauntlet regarding the value of the information you receive. Does market manipulation exist, or is it merely the lies and deceptions about markets that are the manipulation? George Soros has shared his experience. Leo Melamed, the founder of the International Monetary Market (Chicago Mercantile Exchange), gave a speech. In this speech, Futures, the Coveted Scapegoat, he said, " Derogatory comments, defamatory innuendos, inflammatory jokes, false accusations, misleading opinions, half-truths, out-and-out lies, that is the fate and burden of futures markets. Thus it has been throughout time, thus it will no doubt continue. And why not? From time immemorial, predicting the future has been a hazardous occupation."

We are now ready to look at commodities. Copper is a good market for discussion. Copper is one of the most necessary commodities in the industrialized world. It is also one of the best economic indicators. If one looks at a 20 to 30 year monthly chart, copper is really a gift to a trader. It follows a trend that is very discernible. The weekly trend is also reliable. Gold is a little different in its movements. It has a mystique due to it’s prior role as a backing for currency. It was the backing for many currencies at one time. Richard Nixon "freed" us from the gold standard on August 15, 1971. Since then, there has been no currency in the world that is redeemable in gold. This has not really affected the trend of gold. It is still a good trading commodity, with very discernible trends. Gold is a very valuable metal, having unique properties in medical and electronic applications. It also functions as fine jewelry. It exhibits a well-defined frequency, and has very good liquidity, which is paramount for successful trading activities. The gold market’s liquidity is far superior to the copper market. It is possible that gold provides more trading opportunities now because it is not a currency equivalent. We must remember that the objective is to make profits. Let the rest make political statements. As we look at these markets, we can observe clearly defined patterns of accumulation, distribution, and the movements in between these zones. Learn how to identify these opportunities, and let the market do the work.

When one looks at these markets every day, reality seems to shift. There appear to be many opportunities for profit making. However, Tom Baldwin, the legendary bond trader, has publicly stated that he uses monthly charts. Tom Baldwin is a floor trader, and is using monthly charts. Hello, people! The most successful individual bond trader in the world does not trade against the trend. Ed Seykota, who has the best track record in the world for general commodity trading, has publicly stated that day trading is the equivalent of feeding a slot machine. Seykota knows all about slot machines as he lives in Incline Village, Nevada. Leo Melamed has stated that "How much better and more fun it is to be a lover. A trader who is a lover is a trend player—the trend is his friend. He seeks out the trend of the market and romances it. He loves the market whether it is bull or bear; he follows wherever it leads. If it's in an uptrend, he's bullish or he leaves it alone; if it's in a downtrend, he's bearish or he stays out. He does not try to pick reversals or outsmart the world, he merely wants to follow the market's direction. When a lover increases his position, his original position is profitable and the market shows continued promise. Clearly, lovers also have losing positions, but they never allow it to become a fight with the market. Unlike the fighter, the lover never closes his eyes with righteous indignation, I will be right. Unlike the fighter, the lover seldom blames a loss on the market. He may be wrong, but never the market." Having placed day trading and trading against the trend into the appropriate file on your desktop (recycle bin), we have removed the major illusions of market manipulation. I should mention that there is a world of difference between finding a good market entry point, and the determination of the trend.

Trading ranges act differently than trending markets. It was not that long ago when trading ranges were called On The Side. Professionals would move on to markets that were trending. Anything can happen inside of a trading range. Many times in a market's history, a trading range has turned out be a trend reversal. J. L. Livermore never bought or sold a market that was in a trading range. Richard Davoud Donchian, Bernard Mannes Baruch, and W. D. Gann also avoided trading ranges. Trading ranges are just another rock waiting to sink the investor’s ship. Remember, speculators can not buy hull insurance!

Finally, we must deal with question of the nature of the market itself. Does man control the markets? The commodities markets are based on real, physical substances; the necessities of life itself. The contracts for the grains, the oilseed, the metals, and the exotics are based on the actual cash market for these commodities. The same is true for the petroleum contracts. Seasonality, the weather, plagues, and cycles are just some of the variables that control the supply of commodities. Nature rules this world. El Nino and La Nina have more impact than foolish legislatures, or cartels who would like to manipulate the outcomes. Your governments may appear to control demand, but nature is always in control of demand and supply. Nature even controls your governments in a very real sense. One good plague or natural disaster can devastate the human population. Perspective is very important when listening to the stories of manipulation, conspiracies, or even the purported power of government. This study excludes the financial markets. The new financial commodities are obviously of a different nature, and they have yet to stand the test of time!

The results of this inquiry suggest that market manipulation in the commodities market is more myth than reality. However, information manipulation is rampant. Ed Seykota warns of this problem. Seykota is always terse, and simply calls all such information "funny-mentals". All the information you need is contained in the price and volume histories. I am aware that some will disagree with this conclusion, but it has the advantage of overwhelming evidence on its side. The greatest traders in the world agree with this conclusion. This has been true for many generations. E. H.Harriman, Philip Danforth Armour, August Cargill, J. P. Getty, J. P. Morgan, Gustavus Franklin Swift, and many other masters of markets add to the evidence.

There is only the trend, and the Trend, and the TREND!

Wayne N. Krautkramer onlypill@cox.net

Stock Market:http://www.turtletrader.com/trader-schwartz.html

Ray Dirks:http://www.buyandhold.com/bh/en/education/history/2004/ray_dirks.html

Leo Melamed:http://www.leomelamed.com/Speeches/85-scpgt.htm

Leo Melamed:http://www.leomelamed.com/Speeches/69-love.htm

Legislatures:www.galmarley.com see article why state meddling fails

MY NEW SITE IS:

Is it the best of currencies, or the worst of currencies?, asked the emperor. His economics advisors suggested that the currency will only be safe if the Mad Hungarian is neutralised. The Emperor gleefully agreed. Another chance to use the latest robotics threat remover had surfaced. I need a reason, said he. The geopolitical advisors instantly answered. The Mad Hungarian has weapons of currency destruction! Can you prove that?, asked the Emperor. Sire, look what he did to the British pound; the Queen is still demanding massive amounts of foreign aid from us! OK, said the Emperor, your point is made. Just make sure you eliminate him in the most expensive way possible. I have to have better numbers in the economic reports.

The Emperor mentioned the increase of wailing and gnashing of the teeth by his subjects. His advisors told him of the new demand for cosmetic dentistry as a result of the gnashing of teeth. A new entitlement program for cosmetic dentistry will be a big hit with voters, and the dentists will be big contributors for the upcoming election. The Emperor inquired as to the possibility of wailing being classified as a disease. The advisor's response was swift and sure. No problem! There might be a small delay, but easily managed. Why a delay?, asked the Emperor. Sire, there are no professional wailing therapists at this time. Great!, exclaimed the Emperor. We will need new schools, which will create more construction contracts. More teachers will be hired to teach the new students, and more loans for the tuition. The textbook publishers are always good for campaign contributions. The empire will rally around the War on Wailing.

The Emperor became concerned over rumors that the food supply might be unsafe. His advisors reported that there were no mad cows. Every cow they checked was happily mooing and chewing. Therefore, the scientists and reporters were obviously mad, and in need of another chemical dosage adjustment. This would also help the sales of Prozac, which had been stagnant in recent months. Wonderful, replied the Emperor. Well-adjusted scientists, reporters, and more campaign contributions for the small cost of surplus Prozac. The Emperor then suggested that pizza should be part of the new school breakfast program. Sire, pizza is not a breakfast food!, was their response. Slowly the emperor explained that if emperor Reagan could call ketchup a vegetable, then he could call pizza a breakfast cereal. The emperor mentioned that Pizza Hut was the best Italian pizza in the US. When informed that Pizza Hut is not Italian, the emperor decided to declare Pizza Hut Italian naturalization day as a National holiday. The advisors pointed out that the emperor does not have the legal authority to give Pizza Hut Italian citizenship. He responded by pointing out that the Italians are an under appreciated group in the US, that everybody loves another holiday, and that the Roman Catholic vote might be important in the next election. Struck speechless, the advisors scurried away.

The next major event was a review of the education system. The advisors were concerned that the latest initiatives were failing. The emperor explained the logic of the "Leave No Child Behind" Program. He asked if they found many children falling behind? The advisors pointed out that less children were getting ahead. The emperor reminded the advisors that the program only left no child behind. No one had claimed that all the children would go ahead. He pointed out that all the money being spent was stimulus The teacher's union vote was in the bag. The "All Children Move Ahead" program would be saved until more votes are needed. The education, and children’s programs were always big winners, so you used them sparingly. The speech writers were already submitting speeches. The emperor always has 10 to 20 programs complete with emotionally loaded speeches ready to launch at any given time. The government is not the largest employer of psychologists by accident. Every word you see and hear has been scripted for effect. This also creates a demand for more college graduates with degrees in psychology.

Soon all you lucky homeowners will get your new property tax bills. Just keep remembering that you’re getting rich while your paying that new bill. It’s very expensive to get rich. Don’t weaken now; stay the course. The Emperor Printalot may, or may not, come to your rescue

The new cost of energy is a minor disturbance unless you need to use transportation that won’t burn hay. Oil and gas are beginning to reflect the Printalot strategy.The Amish might yet rule the world. At least they will have some wealth left. They could less about the Middle East, or any of this other nonsense. Actually, the Amish don’t use much electricity either. Why did we used to laugh at these people?

"Life is a tale told by the media, full of taxes and regulations, signifying bankruptcy" I personally guarantee that no politician ever said this!

Wayne N. Krautkramer onlypill@cox.net

Oil:http://www.csmonitor.com/2004/0818/p03s02-usec.html

NOTICE: My new articles will be potsed at http://onlypill.tripod.com/zarathustra/

Plagues and pox, and lakes where boats have no longer have docks, and then it gets serious. There’s less water for the crops, and you can’t operate the river locks. What does it take to get your attention? The birds can’t navigate, and the farms can’t be irrigated. Hoover Dam’s power generation ability will be impaired if the level of the Colorado River continues to fall. This failure would have a major impact on the power supply for the entire region. I detect the demented mind of FDR at work here. It now appears that the 1930’s plan for the development of the West was based on a grave miscalculation about available water. The citizens are beginning to squeal about this old New Deal.

The latest in the financial follies by the FDRians appears to be in Florida. The Mogambu Guru has reported that the telephone and power companies are now recruiting families to enroll their children into the National School Lunch Program. These entitlement recipients will receive subsidized phone service for the entire family. The Florida telephone and power companies are now pimps for the welfare state! Let's hear it for the Gators.In Stimulus Or Bust, We Trust.

Medicos and nurses are busy suturing the tears in Leviathan these days. The one lesion that is spreading quickly is the pension fund problem. On July 23, 2004, United Airlines announced that it had ceased payments to its pension fund. The company had scheduled over 4 billion dollars to be paid into its pension fund over the next few years. On the same day, Turner & Newall announced the cessation of all further contributions to its pension fund. This affects some 40,000 workers. Turner & Newall, located in the UK, is a division of Federal Mogul Corporation (US). The recent bailout of the steel industry by Bush was only a thinly veiled attempt to avoid massive defaults on their pension liabilities.

A short history is order. The Employee Retirement Income Security Act (ERISA) of 1974 was the start of this monster. The Pension Benefit Guaranty Corporation had been formed to insure private pensions. Theoretically, this Federal Agency receives no money from taxes. The PBGC is funded by premiums from employers. On September 5, 2003, the PBGC had news for us. I know this is going to shock you. The PBGC has a deficit. According to the auditors, 80 percent of the single private employers were under funded. The shortfall was estimated at 400 billion dollars.

On April 10, 2004, George Bush signed the Pension Funding Equity Act. This novel piece of legislation allows the government to set the implied rate of return for use in the computation of pension contributions. At some future date, the bureaucrats are going to determine a permanent implied rate of return for pension funds. The higher the implied rate of return, the lower the contribution needed to achieve a specific amount of future money. If one uses an implied rate of return of one percent, large contributions must be made. However, if one assumes a ten percent rate of return, minimal contributions would be needed. Visualize the chicanery that is going to occur with this program. FDRians have never been strong in logic. If they feel that the investments will return at least 20 percent per annum, we could see a scenario where the PBGC begins giving the pension funds money for over performing. In the world of economics, this is called fiscal stimulus. But Wait! There’s More!" If you vote for this government in the next 24 hours, they will send everybody 30 more fiscally stimulating entitlements.

On July 28, 2004, the Internal Revenue Service announced that American income has dropped for two consecutive years. This is the first time that this has happened since the inception of the modern tax system during W.W.II. This information is coming directly from the IRS. Do we have a discontinuity here? People, this trend is burnt toast. "We need more spending programs", sayeth the Keynesians. We are already 81 trillion dollars in debt! Let’s roll the dice one more time.

Troubled times create great leaders. The Canadians are already providing that leadership. The Canadians have managed to take a firearm registration program that was estimated at cost of 2 million dollars, and blew it up to a final real cost of over one billion dollars. They are horrified because the program doesn’t work. Wink, wink! We are talking about some serious fiscal creativity here. Never underestimate a desperate democracy that has access to high quality drugs.

The US continues to ignore the problems of Fannie Mae, Ginnie Mae, Sallie Mae, and its other relatives. The FDRians consider this to be an opportunity for more fiscal stimulus. I humbly offer a solution. We will just reschedule all payments. Payments are to be deferred until January of 3000. Remember, you heard it here first! After all, we owe it to ourselves! John Maynard Keynes would be proud if he were here now.

IT’S 2400 HOURS. DO YOU KNOW WHERE YOUR AMMUNITION IS?

Wayne N. Krautkramer onlypill@cox.net

Links:

Plagues and Pox:

Http://www.hc-sc.gc.ca/english/westnile/

Http://www.lib.uiowa.edu/hardin/md/necrotizingfasciitis.html

Water:

http://msnbc.msn.com/id/5239212/

http://www.rma.usda.gov/news/info/2004/pdf/IrrAssessment2004Billings.pdf

Pensions: