World Domination by the Fed through deflation

By Glen Wallace

With regard to the future US fiscal picture I foresee a deflationary spiral as more likely than an inflationary or hyperinflationary scenario.  My hypothesis is that the private central banks are leaving little to chance and while the reckless over-spending  may appear as fiscal bumbling and incompetence by congress and various offices of the president, it is in fact carefully planned by the central banks.  Then one must ask oneself what benefits the Fed more, a deflationary or inflationary scenario.  Currently after all the quantitative easing, the Fed is now holding a tremendous amount of US public debt that for the most part is earning very low interest rates.  Under inflationary conditions, the Fed would be facing a situation where they are holding all of this debt that would now be worth much less but without the benefit of receiving a higher rate of return that new treasuries would have to offer in order to entice buyers.  Additionally, under a hyperinflationary condition, by its very nature there is a lack of control of the financial conditions, thereby rendering central banks impotent.  And looking at the Fed and other central banks, their member banks already are completely free from material want and therefore their primary area for potential growth is that in terms of power.  While the central banks already yield tremendous power, it is not absolute.  And a deflationary picture could yield them the opportunity for what could be the closest thing possible to having absolute power over the entire planet.  They could achieve such power through taking receivership of the entire publicly owned system both materially and organizationally in exchange for forgiveness of debt owned.  In an hyperinflationary scenario, however, the public debt could be just inflated away and the Fed would no longer have anything over the people to control them with.

The beginning of a deflationary crisis may ironically begin with inflation.  Were the economy to grow enough to lead to inflation, the Fed, given their mandate to control inflation, may be forced to significantly raise the federal funds rate.  Any rise in interest would have to be born by the the US deficit as it issues new treasuries.  That, coupled with the Fed no longer having reason to engage in quantitative easing, would mean that now all the bond sales would have to go to private purchasers having no assurance that the Fed would turn around and buy those treasuries.  If there where a failure to find sufficient purchasers of those treasuries then the US government would lose the funds it would need to pay for the programs that the congress agreed to pay for.  Given how dependent the economy has become on government spending, were that spending unexpectedly to come to a halt due to a treasury auction failure then the economy could suddenly dip into a recession.  This could all come at a time when the baby boomers would be beginning to tap into the  entitlements that the government had been committed to providing but even before any auction failure, had been not funded anywhere near sufficiently by revenue.   A chain reaction could ensue whereby the retirees would no longer be receiving the checks that they need to pay businesses that have now become dependent on the senior population having a dependable and reliable source of income from the government to pay their bills.  Those businesses that had depended on the seniors could now become insolvent which in turn could jeopardize their vendors that were not catering directly to the seniors but still provided goods and services to businesses that did.  Negative growth could ensue that would quickly become apparent to any observer that the US government would have great difficulty in generating sufficient tax revenue in the future to pay its future obligations.  All the past warnings about future unfunded liabilities would no longer seem like some far away fiction, but would now be very apparent and real.  US Treasuries would have to be issued with very high interest rates in the hope of enticing potential buyers.  But of course the problem there is that unless the fed did try to print our way out of the problem,  the higher rates would make paying off the debt all the more difficult.  This is the point where the Fed would have the economy at its mercy.

Also, under deflation, the group that traditionally has been some of the biggest critics of private central banks, the gold bugs, would be stunned into silence as the value of their gold would suddenly plummet in value along with all the other commodities that would also deflate in value.  Do you really think the all powerful central bankers would allow a hyperinflationary situation to occur that would give their harshest critics more power, confidence and wealth?  What has been going on instead, I
believe is leading the gold bugs and other central bank critics down the primrose path by doing everything to make them believe that the central banks will do everything to prevent deflation and in their bumbling incompetence will instead allow hyperinflation to take hold.  To keep the ruse alive the Fed has installed Bernanke, someone who has studied the great depression and has committed himself to do everything he can to prevent the deflationary spiral that lead to that economic crisis.  But it will turn out that Bernanke is merely an actor cleverly placed to throw everyone off track in an effort to keep prying eyes off the Feds deflationary plot.

There will come a time I believe during a market crash when it will become apparent that servicing the public debt will no longer be possible by the traditional means.  When it also becomes apparent that Bernanke and company will not simply fire up the printing presses to make it all go away, then we will see a really big crisis that will hit every household in the country as the whole economic infrastructure and the system of commerce that goes along with it that we have all become dependent on for our daily needs will grind to a near complete halt.  At that point the public will be clamoring for a rescuer, anyone, to save them from their plight.  And along comes the Fed to save the people from their plight.  The masses will be completely ignorant of the fact that the private central banks planned for this all along, but the mass media, being party to the crime, will do nothing to dispel that ignorance.  Instead newscasters will do just the opposite and urge everyone to put themselves at the mercy of the Fed, and give everything they ask for, including all of our public infrastructure, public lands and governments.  Wanting to do anything to alleviate the suffering the masses will gladly comply and the plan for world domination by the banksters will be complete.

Socialism and Regimenarchies

 By Glen Wallace


Sure, socialism as it has been practiced may not be the answer but there are many different forms of political systems that can be referred to as socialist.  And I am not about to abandon a plan that looks and sounds good just because it might be labeled socialist.  As a matter of fact many of the socialist systems of the past might better be labeled oligarchies due to the special privileges granted to the government officials running those systems.  Although 'oligarchy' might not be appropriate since so many government officials tend to benefit from their positions in those so-called socialist regimes -- perhaps we need a new term here.  Well, the Latin word for government is 'regimen' so I'll call the political form where the government and some of its enforcement and intelligence employees becomes unwieldy and oppressive to the people it is supposed to support, a 'regimenarchy.'  So, wouldn't it at least be possible to create a socialist system with all its nice safety nets and useful and pleasant services that is not a regimenarchy?

Wealth Redistribution is Class Peacefare not Warfare

By Glen Wallace

Government assistance as it has been practiced in this country is clearly not a case of wealth redistribution as has been alleged.  If it were intended to be so, then those in charge of distributing the wealth have been doing a rather crummy job since it has been apparent that even as the prevalence of food stamps has greatly increased in this country the concentration of wealth in the hands of the few has correspondingly only also increased.  So if anything the opposite has been occurring whereby wealth ultraconcentration has been going on for decades in the US regardless of the POTUS and his political party affiliation.  And while the the wealth has been concentrating in fewer in fewer hands, the remaining masses left over have been left with less and less of the available material wealth.  It's not so much a merely a case of the rich getting richer and the poor getting poorer it's a case of everybody else besides the already rich getting a smaller piece of the pie.  What appears to be going on is that the government assistance is a case of the powers borrowing from the play book of the ancient Romans, and using food stamps and the like as the bread in the 'bread and circuses' plan to keep the masses somewhat content and less likely to rebel.  For the circuses analog, fortunately for the ruling elite there is more than ample entertainment distractions both passive and active ranging from video games to movies and TV to sports to keep the plebs distracted 24 hours a day.  It is rather clever of the rich elite to try to turn the tables and allege that government assistance is a form of wealth redistribution when in reality it is a method to prevent the masses from rising up and demanding a fair share from the wealthy in a true form of wealth redistribution.

A similar tactic is employed when allegations are made by some that demanding higher taxes on the wealthy is a form of class warfare.  I believe this 'warfare' baiting is being deliberately employed to both apply a unflattering label to the progressives and to try to get the progressives to think less of themselves engaging in activism since most progressives do not want to think of themselves as engaging in warfare of any kind.  But when looked at closely, the demands of the progressives or 99 percenters are nothing like warfare.  The requests instead, have been along the lines of demanding fairness by way of the peaceful changing of the civil laws.  There need not be any warfare.

All that is needed is to have laws enacted that allow for the transfer of funds from one account to another or the changing of names on titles from one name to another.  New taxes could be enacted that completely bypass the accounts of the IRS but instead revenue funds could go directly from, for instance, the cash accounts of large corporations to the accounts of a number of food shelves. In the process no blood was shed and no heads rolled as was the case with the French Revolution, which was a true case of class warfare -- I might add that I think that what the French Revolutionists did was an immoral, inhumane, brutal act when they coldly gathered all the members of the upper class and systematically ended their lives by means of the guillotine, all without even due process or assessment of character.  I'm supporting a true wealth redistribution by a peaceful, civil and legal means not just because it is the right thing to do but also to prevent a true class warfare situation as was seen with the French Revolution.

  I believe there is a certain amount of unavoidable scarcity on this planet and there is a point that is reached with any individual or organization where they necessarily end up taking out for themselves more than they every can be credited with contributing to the material wealth of a society through the increased productivity they may have activated.  I believe there is certain principle I like to call 'sandbox values', where when we were growing up we learned that while playing in a sandbox there is a limited number of toys to play with and we should learn to share those toys and not hog all of them for ourselves while all the other little boys and girls just sit there in the sand with nothing to play with while one brat sits there with a grin on his face with all the toys piled up behind him in the corner of the sandbox.  

We don't need a revolt, just an awakening.  People need to realize that gov assistance is not wealth redistribution but rather the old ancient Roman trick of using bread and circuses as succor to quell the rabble. The goal then of the ruling elite is just the opposite of what is being accused; government assistance is designed to prevent the people from demanding real wealth redistribution.  The democrats just coyly sit there allowing themselves to be accused of something that they have tried to prevent but should be a compliment - spreading the wealth around, while in reality both parties are together in the plot to further consolidate wealth.  That is the one constant that has existed for many decades now -- regardless of what party is dominating, wealth consolidation has continued unabated. 

 I propose a civil, peaceful legal system of wealth redistribution whereby a system of taxation is instituted that completely bypasses the IRS and instead mandates direct bank transfers from the super rich to the working poor.  Both individual and institutional accounts would be subject to these transfers such that corporations with large cash balances would also see significant outflows to individuals and organizations such as food shelves that actually need the money.  There would be no class warfare because there would be no warfare.  Instead these measures would be taken civilly as the result of laws enacted by a populace demanding such laws.  Most of the actual redistribution would amount to nothing more than a few electrons moving around and changing the digits on hard drives and computer screens.  The rich whose digits become smaller on their balance sheets likely would never miss them to any practical manner but oh what a difference it would make to those that have been struggling and now see a higher balance on their accounts.  

I think my proposal would be rather inviting to most, but you will likely never hear of it from a mainstream politician from either party or even a so-called liberal mainstream political commentator on the radio or TV.  You wont hear about such an idea because they are all part of the effort to help consolidate the wealth until nearly everyone becomes an indentured urban serf slave to a few bourgeoisie elite.