No.1 - Not Your 1929 Depression

As we age, not like wine, but with a growing sense of what happened; countries and appointed heads of governments, industry, churches, educational institutions and families seem to mix a lack of what our fathers taught and what we make happen to ourself.

What happened to simple and frugal; whereas, the great marketers of media have convinced to succeed is to acquire and support the few in a position to receive. 

At what cost do we continue to ignore what we know is right from making our destiny temporary. 

There is no reason to be upset or point blame to anyone except to ourselves as we did it to ourself – with intent knowingly. 

USA History
1776 – Agrarian Economy
1850 – Industrial Economy
1973 – Services Economy
2000 – Technological Economy

Grooms Business Cycle

۝
Prosperity
↓
False Recession
↓
Recession
↓
Depression
↓
False Recovery
↓
Recovery
↓
Prosperity
↔

(Source: Grooms 2009) 

Grooms Business Cycle
The business does not go back and forth.
The business does not go up and down.
The business does not go in reverse.
It only goes one way and does skip any cycle.
As to how long or short, deep or shallow each cycle depends on the numbers. ~tfg

Cause of Great Depression Black Tuesday 29 October 1929
Creation - Federal 16th Amendment Income Tax 3 February 1913
Creation - Federal Reserve Created 23 December 1913

Recession Cycle – Tuesday 17 October 1973
OPEC Oil Embargo
OPEC was founded in 1960 by Saudi Arabia, Iran, Iraq, Kuwait, and Venezuela with the principle objective of raising the price of oil.
tfg – this cycle has mainly been invisible due to the input of currency into circulation creating a deflating effect in lieu of a downward drop  

Recession
Act or action of receding tremor period or periods of reduced economic activity –
Declining sales
Declining profit
Declining currency

2-Second Great Depression Cycle – Sunday 16 March 2008
Federal Reserve Chairman Ben Bernanke met on a Sunday for an emergency bailout of Bear Sterns – Federal Reserve has not met on a Sunday since 1929
tfg – this cycle shows light signs of confusion as large currency inputs support inflation and deflation pockets that will affect most, but not so much those who are solvent and savers – it will not be like 1929 or any resemblance thereof as these cycle spirals passes

Depression
A period or periods of low general economic activity marked especially by rising levels defined as:
Double digit unemployment of 10-ten percent 10% unemployment or greater
Profit loss below break-even
Negative profits creating losses and necessity of borrowing money to continue, which should not be done under any circumstance, but adjustments made to current cash flow income
Deflation with declining prices

tfg - debt is what turns deflation into a depression.

Cause of 2-second Great Depression – Sunday 16 March 2008
Creation - Federal 16th Amendment Income Tax 3 February 1913
Creation - Federal Reserve Created 23 December 1913
Creation – Fannie Mae 10 February 1938
Creation – Freddie Mac 1968
Creation – HUD Emergency Relief and Construction Act of 22 January 1932

2-Second Great Depression Re-Enforced Cycle – Sunday 28 September 2008
Federal Reserve Chairman Ben Bernanke met on a Sunday for an emergency bailout of Bear Sterns – This is the 3-Third time the Federal Reserve has met on a Sunday since 1929

Cause of the 2-second Great Depression – Black Wednesday 1 October 2008
The Quiet Crash of 2008
US Congress Passes Additional US Tax Debt to Bailout
NYC - New York City and Silk Stocking Gangs
Chase Bank - $90+ Trillion in Derivatives – 50% Outstanding Derivatives
Further Dependence on Foreign Investors
Further Destroys US Dollar – USD UnSound Currency
Bankrupts United States
Bankrupts Public Retirement Funds
Destruction of Republican and Democratic Parties

Recovery Cycle - ?

Is there a Lessening Prevention of a Future 3-third Great Depression?

Save and Debt-Free Living
Discontinue Same Programs

Federal
Abolish - Federal 16th Amendment Income Tax 3 February 1913
- Income Tax – Replace with 10% National Federal Sales Tax + Import Trade Tariffs for federal government
Abolish - Federal Reserve Created 23 December 1913
- Exception that 100% of All Stock Owned and Held by US Treasury
Abolish - HUD Emergency Relief and Construction Act of 22 January 1932
Abolish - Fannie Mae 10 February 1938
Abolish - Freddie Mac 1968
Abolish – Federal Department of Education 1867 – Abolish Government Public Schools – A Detriment to Children
Abolish – Make Federal Law that Caps Federal Debt Tied to Tax Income – Except Constitutional Country Survival During War That Can Not Be Liberally Interpreted as Present 
Abolish 1984 Tax Recovery Act 
- Make Board of Directors legally responsible and accountable to stockholders again where stockholders can vote them out
- Stockholders vote approval of Board of Directors, President, Vice-Presidents and Officers
- Stockholders can vote out Board of Directors, President, Vice-Presidents and Officers
- Abolish capital gains tax on all stock and mutual funds
- Abolish interest tax on all stock and mutual funds
Abolish 2006 Bankruptcy Amendment
- Abolish Credit Cancelling requirement for filing of bankruptcy
Abolish – Federal Sherman-Clayton Anti Trust Laws 1890-1914 – Remove Barriers to International Trade Competition
Abolish – Tax on Savings Accounts
Abolish - Illegal Aliens Can Not Receive Any US Benefits – Abolish FREE School, Medicaid,  Food Stamps or Housing
Abolish - Immigrants Tax Exempt Status On All Income for 5-five to 10-ten Years
Abolish - Children Born in US Jurisdiction Given Automatic US Citizenship and Benefits
- Children of non-citizens born on US soil are not US citizens
- Non-citizens in US are not entitled any Federal, State or Local benefits, assistance or education and medical benefits 
Abolish - Free Health Care Program for Medical Operations for Foreigners Who Fly to the US - Receive Medical treatment at US Tax Payer's Expense - Return Home With No Expense
Abolish - Limit Federal Elected Officials from Serving More than 2-two Terms
Abolish - Law that All Pay & Benefit Raises for President, Congress or Any Federal Elected Officials Must Be Voted on by the Public Voters
Abolish - Federal Elected Officials Retirement Must Be Only in Social Security
Abolish - Federal Elected Officials Retirement Must Pay Social Security Taxes
Abolish - Exemption Cap on Social Security Tax – Everyone Pays %-percentage Regardless of Income
Abolish - Social Security Replace All Retirement Programs – Military, Public and Private
Abolish - Tax on Social Security Income
Abolish – $3,000 Tax Limit on Securities Investments Loss Deduction
- Make Law that 100% of All Loses of Securities Investments can be written off in year occurred
Abolish – No home Real Estate Loss Write-off
- Make Law that 100% of All Loses for Sale of Home can be written off in year occurred
Abolish – Mortgage Rates Lower for New Homes Only
- Make Law that All the Same Mortgage Rates are Available for New Homes and Re-Finances – Unhealthy Discriminatory
Abolish – Make Law Making Illegal for Federal Government to Bailout Any Private or Public Company, or provide Tax Subsidy or Assistance 
Abolish – Make Law that Caps Income (salary, benefits, insurance, bonuses, perks and any other form of monetary or personal benefit in total compensation) to $1 Million Per Year for Board of Directors, CEOs, Presidents, Executives and Officers of All Public Companies Receiving Public Retirement Funds or Money of Any Source
Abolish - Make Federal Law Making Illegal for Any Type of Federal Welfare
- Make Welfare Public Housing Illegal
- Deed Over Current Housing to All on Welfare and Make Recipients Responsible
- Abolish Food Stamps
- Abolish Financial Subsistence Payments to Single Mothers Having Children
- Abolish Any Forms of Welfare Subsistence
- Placement of Welfare Back to Charitable Organizations in Private Sector and Not by Federal Government
- Exception When Warranted to Provide Assistance to Minors with No Parental Support – Elderly – Disable Only
Abolish – Make Federal Law Making Illegal for Any Attorney General or Prosecuting Attorney to Receive a Bonus for Convictions
Abolish – Make Federal Law Making Illegal for Any Conviction Based on  Circumstantial Evidence
- Reinstitute that Only Convictions Based on Burden of Proof Can Stand
- Make Federal Law Making Legal that Any Attorney General or Prosecuting Attorney,  Law Enforcement or Judge Can Be Personally Sued for a Conviction Based on Circumstantial Evidence – There too many innocent people being convicted under the present legal system and felons walking free  
Abolish - Make Federal Law Prohibiting Federal Government from Any Type of Revenue Quotas – Regardless of Any Type of Camouflage Name Used - Revenue Promotions or By Any Other Name
- Applies to All Federal Agencies 
Abolish – Federal Law for Political Appointments that Gives Supreme Court Justices and Federal Judges  Life Tenure
- Make Federal Law that All Supreme Court Justices and Federal Judges Must Be Elected and Voted on by the Public Voters
Abolish - Make Federal Law Making Illegal Federal Speed Limits Restrictions on Highways
- Make Federal Law Removing All Speed Limit Restrictions on Interstates Highways
- Speed Limits Create Bottlenecks
- Speed Limits are a Danger and Threat To Public Safety with Today’s Automobiles and Highways
- Restrict All Trucks to Drive in the Right Hand Lane or Two Right Hand Lanes – Except to Pass
- Speed Is Safe As the Driver and Not the Number
- Creates and Allows for Individual Fuel Economies and Time of Commute    
- Creates and Allows for Individual Commuting Time Efficiencies  
Abolish - Make Federal Law Prohibiting Federal Government from Labeling in Census Caucasians as Non-Hispanics – Cute, but Bigotry and Extremely Prejudicial Making the Federal Government the Most Racists and Bigoted Institution in the US
- Why Can’t I Be a Non-Jew – Does the Federal Government Not Like Jews
- Why Can’t I Be a Non-Black – Does the Federal Government Not Like Blacks
- Why Can’t I Be an Non-Indian – Does the Federal Government Not Like Indians
- Why Can’t the Federal Government Use the English Language Properly – Ooooops They Went to Government Public Schools
Abolish – National Health Care & Socialized Medicine that Made US an Official Socialist Country March 23, 2010 - 10:15a CST

 

City and County
Abolish – All School Boards – Competence & Cost A Detriment to Children
Abolish – All Superintendent Administrative Staff –Cost A Detriment to Children and Interference with Teachers Teaching  
Make Law that Creates Office of Superintendent and One Administrative Assistant to Be Financial Check on Principals and Hiring of Principals
Abolish – Make City and County Law that Caps City and County Debt of Any Type
- Make City and County Law Making Bond Issues or Any Form or Type of Debt, etc. Illegal 
- Make City and County Law Making City and County Budgets Only Source of Income and Expenditures Based on Actual Tax Receipts Income Received 
Abolish - Limit Local Officials from Serving More than 2-two Terms
Abolish - Law that All Pay & Benefit Raises for Local Elected Officials Must Be Voted on by the Public Voters
Abolish - Local Elected Officials Retirement Must Be Only in Social Security
Abolish - Local Elected Officials Retirement Must Pay Social Security Taxes
Abolish – Make Law Making Illegal for City and County Government to Bailout Any Private or Public Company, or provide Tax Subsidy or Assistance 
Abolish - Children Born in US Jurisdiction Given Automatic US Citizenship and City and County Benefits
- Children of Non-citizens Born on US soil are not US citizens
- Non-citizens in US are not entitled any City and County Benefits, Assistance, Education or Medical Benefits 
Abolish - Make Law Making Illegal for Any Type of Welfare
- Make Welfare Public Housing Illegal
- Deed Over Current Housing to All on Welfare and Make Recipients Responsible
- Abolish Food Stamps
- Abolish Financial Subsistence Payments to Single Mothers Having Children
- Abolish Any Forms of Welfare Subsistence
- Placement of Welfare Back to Charitable Organizations in Private Sector and Not by City and County Government
- Exception When Warranted to Provide Assistance to Minors with No Parental Support – Elderly – Disable Only
Abolish – Make City and County Law Making Illegal for Any Attorney General or Prosecuting Attorney to Receive a Bonus for Convictions
Abolish – Make City and County Law Making Illegal for Any Conviction Based on Circumstantial Evidence
- Reinstitute that Only Convictions Based on Burden of Proof Can Stand
- Make City and County Law Making Legal that Any Attorney General or Prosecuting Attorney, Law Enforcement or Judge Can Be Personally Sued for a Conviction Based on Circumstantial Evidence – There too many innocent people being convicted under the present legal system and felons walking free 
Abolish – City and County Law for Political Appointments that Gives Any Judges and Justices Life Tenure
- Make City and County Law that All Judges and Justices Must Be Elected and Voted on by the Public Voters
Abolish – Political Appointments of Sheriffs and Police Chiefs
- Make City and County Law that Sheriffs and Police Chiefs Must Be Elected and Voted on by the Public Voters
Abolish - Make City and County Law Prohibiting City and County Government from Any Type of Traffic Quotas – Regardless of Any Type of Camouflage Name Used - Revenue Quotas, Revenue Promotions or By Any Other Name 
- Applies to All City and County Agencies
- Make City and County Law that Any City and County Government Using Law Enforcement for Traffic Quotas or Traffic Tax Tickets – or develops the reputation as a speed trap - is Subject to State or Federal Prosecution – All Related Officers and Public Officials 
- Make City and County Law that Law Enforcement have Sole Discretion Whether to Issue Citations Without Being Subject Retaliation by Police Chiefs or Sheriffs 
Abolish - Make City and County Law Making Illegal City and County Speed Limits Restrictions on City and County Roads and Highways
- Make City and County Law Setting 80 MPH Speed Limits Within City Limits on City and County Main Roads and Highways Thorough Fares
- Make City and County Law Setting 50 MPH Speed Limits Within City Limits on City and County roads in Non-Thorough Fares
- Exception 30 MPH School, Hospitals and Emergency Zones for Walker Safety 
- Speed Limits Create Bottlenecks
- Speed Limits are a Danger and Threat To Public Safety with Today’s Automobiles and Highways
- Restrict All Trucks to Drive in the Right Hand Lane or Two Right Hand Lanes – Except to Pass
- Speed Is Safe As the Driver and Not the Number
- Creates and Allows for Individual Fuel Economies and Time of Commute 
- Creates and Allows for Individual Commuting Time Efficiencies


or

Spend and Debt-Credit Living
Continue Same Programs
- Add National Health Care
- Add National Guaranteed Income
- Add Government Capital Infusion Ownership of Businesses
- Add Income Redistribution & Equality Standard of Living
- Add Greater National Debt
- Add Largest Government Possible
- Add Highest Taxes
- Add Most Laws & Regulations
- Add Decreasing Individual Liberty

Question is now – are you going to reflect on where you are, what is happening and what you are willing to do about it?

What can I do:

1 Write your President of the United States
President – http://www.whitehouse.gov/

2 Write your Congressional Representatives
Congress - http://www.house.gov/    
Senate - http://www.senate.gov/

3 Write your State Governor
Texas State Governor - http://www.governor.state.tx.us/

4 Write your State Representatives
Texas State House - http://www.house.state.tx.us/welcome.php 
Texas State Senate - http://www.senate.state.tx.us/

5 Write your Local Government Mayor

6 Write your Local Government City Council

7 Vote

8 Run for Office

Could the Federal Reserve be next to go bankrupt?

There is no evidence that during the last depression infrastructure spending helps.

During the last Great Depression, for example, Roosevelt's New Deal put 7-seven million people back to work between 1933 and 1937, building highways, dams and bridges.

Meanwhile, the Federal Reserve's Index of Industrial Production hit its lowest point of 52.8 in July 1932, just before the New Deal. And by 1937 it surpassed the highs of the late 1920s.

Since 1963, the spending into insolvency American way has definitely taught Alexander Hamilton and Ludwig von Mises a thing or two. Ben Franklin, Thomas Jefferson and our Founding Fathers had it all wrong. America must have been built on spenders, not savers. Maybe if there is any lesson here to be learned, we should ask ourself what happens when we do not listen to our parents.

If the lesson is true, then what about the modern wisdom of our children in old bodies leading America?

Ultimately, the economy and the markets will prevail, healing themselves according to their own timetable.

 

 

 

 

No.2 – Socialist Students

Dr. Tom Grooms an international business and marketing professor at Northwood University said he had never failed a single student before but had, once, failed an entire class.

That class had insisted that socialism and communism works better than capitalism, which does not work and is a dead theory as proofed in the US over the past years by the actions of executives in charge of public companies and public monies.

He proceeded to advise the class then that no one would be poor and no one would be rich, a great equalizer; thus, the focus of equality from the heart of communism from the work of Karl Marx, Father of Communism and Socialism in Das Kapital 1876. He then said okay, we will have an experiment in this class on socialism.

 

 

 

 

All grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A.  

After the first test the grades were averaged and everyone received a B. The students who studied hard were upset and the students who studied little were happy.  But, as the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too becoming welfare students; so they studied little.

The second test average was a D.  No one was happy. When the 3rd test rolled around the average was an F and students were even less happy but experienced the advantage of socialism.

The scores never increased as bickering, blame, name calling all resulted in hard feelings and no one would study for the benefit of anyone else.

All failed, to their great surprise, and he told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great; but when government takes all the reward away; no one will try or want to succeed.

Equality and special advantage could not be any simpler than that....

Benjamin Franklin, one of the Founding Fathers of our country said the United States should take the moral high ground and fully agree that the states should not take money or aid from the federal government. Here is the concern with doing that. You may be disadvantaging your state because the federal government has inappropriately stacked the deck by infusion of federal funds into state business, which is what is happening in 2009.

When moral objection is pitted against those without the moral objection or those willing to turn a blind eye to it, you are more likely to lose. A truth is, government would be better off without economic cycles. Do economic cycles no longer exist and economic cycles theory is passé?

Adam Smith, Father of Capitalism in Wealth of Nations 1776 might argue when the other side is acting outside moral boundaries, your taking of the high road may lead to your extinction and the healing process for the culture will take decades to accomplish.

Today, what burden are we placing on our future generations? How will the federal government pay for its money creation program or does it ever intend to? What tax will be levied on what business or individual that will pay the cost of the called bailout program? What future businesses will go out of business because we are paying for a stimulus to prop up businesses that cannot survive a market downturn or worse, were corrupt and stole from investors, taxpayers and lenders?

What would happen if the states were actually to cut spending and lay off personnel? How long can even a government continue to spend more then it takes in revenue? Are governments bound by the laws of balance sheets that homes are not? Is this what governments do to avert government collapse?

So what is the current costs and the future costs of this program? What is the total bill you and I aw well as our children will be paying as taxpayers to pay off the national debt? Do we ever intend to pay it off and become debt-free again with positive balance sheets? Apparently a balanced budget is no longer a moral high ground issue for past or current governments; Democratic Party or Republican Party.

What if we were to have the federal government take the high road and not try to fix the marketplace? Or at a minimum, lend money to successful failing banks, businesses and executives instead of failed government bureaucrats, failed banks, failed businesses and failed executives that are responsible for poor or nonperformance? 

The high moral ground understands government thinks they can best solve the problem, control the markets and absolve economic cycles. The high moral ground understands government cannot control the markets; thus, government can only change the game so that some other selected parties win and other selected parties lose.

Like Benjamin Franklin, our Founding Fathers, Adam Smith and our surviving capitalists unfortunately, in this case, have deemed financially unviable by private enterprise will reap the benefits from the taxpayer and the concept of limited government fought so valiantly by the founding fathers will pay the price – loss of liberty.

So the final question becomes, with wealth destruction of our economy and free marketplace what is the moral high ground?

What high moral ground will socialist students take?

Theodore Roosevelt's Ideas on Immigrants and Being an AMERICAN in 1907
 
'In the first place, we should insist that if the immigrant who comes here in good faith becomes an American and assimilates himself to us, he shall be treated on an exact equality with everyone else, for it is an outrage to discriminate against any such man because of creed, or birthplace, or origin. But this is predicated upon the person's becoming in every facet an American, and nothing but an American....There can be no divided allegiance here. Any man who says he is an American, but something else also, isn't an American at all. We have room for but one flag, the American flag... We have room for but one language here, and that is the English language... and we have room for but one sole loyalty and that is a loyalty to the American people.'
Theodore Roosevelt 1907

What high moral ground will American students take?