Category Archives: Uncategorized

An Obituary

August 21, 2011

In 1887 Alexander Tyler, a Scottish history professor at the University of Edinburgh, had this to say about the fall of the Athenian Republic some 2,000 years prior:

“A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse over loose fiscal policy, (which is) always followed by a dictatorship.”

“The average age of the world’s greatest civilizations from the beginning of history, has been about 200 years. During those 200 years, these nations always progressed through the following sequence:

  1. From bondage to spiritual faith;
  2. From spiritual faith to great courage;
  3. From courage to liberty;
  4. From liberty to abundance;
  5. From abundance to complacency;
  6. From complacency to apathy;
  7. From apathy to dependence;
  8. From dependence back into bondage.”

Born 1776, Died ????

Do you see a pattern here?

martinique-206916_640

by DAVID BROWN | CLEARNFO.com | JUNE 12, 2011

Do you see a pattern here? Believing in the primacy of the state over the individual is a religion in every sense of the word yet spreads undetected into all aspects of our lives. Although Darwin himself was not an atheist, the Darwinian Theory is based on the materialism that man is just a soulless animal or a series of chemical reactions; a cog in a wheel, and thus merely an effect –not cause over effect– converges with the godless belief system in the state over the individual. This epistemology is devoid of any real morality and produces a barren moonscape robbed of meaning or the juice of life. This epistemology contains no external standards which cannot be modified whimsically to fit the fashions or the politics of the day. Their standard is not a standard at all. Not believing in the individual, freewill or individual personal responsibility, the progressive Democrats –which are in fact authoritarians– regularly check themselves into rehab after engaging in socially unacceptable behavior thus taking no real responsibility for their actions as individuals. It is always someone else’s fault. It’s a mental illness, It’s their childhood, it’s big business, it’s society’s fault, its poverty, it’s mom or dad…it’s fill in the blank with anything but the person actually responsible. All they require is some counseling, group therapy, new religion or a magic pill and they will be all better. This aberration in identifying the real culprit frustrates any attempt to take responsibility; break away from the old ways that did not work and to make meaningful changes so that the individual can grow into new healthy and prosperous ways of living. True healing and corrective action can only come after the total destruction of the old faulty assumptions, the old habits and the old ways of thinking that did not work so that a rebuilding of healthy habits that do work can take place on new ground thus provided.

The Ant and the Grasshopper…

The Ant and the Grasshopper…

April 28, 2011 at 12:48pm

For some of our modern-day political  and socioeconomic thinkers, concepts of limited resources, self-responsibility,work and preparation have shown themselves to be difficult concepts to  integrate into their political belief systems. To give some mass to these concepts, I always find it useful to provide  a real-life story; or better yet, a myth that speaks in the language of  archetypes, and so has the power to bypass the critical mind and implant its  truth directly into the subconscious indelibly. Maybe my good collectivist friends never had the benefit of this  childhood story as I did but here it goes…

 

In a field one summer’s day a  Grasshopper was hopping about, chirping and singing to its heart’s content. An  Ant passed by, bearing along with great toil an ear of corn he was taking to  the nest.

 

“Why not come and chat with  me,” said the Grasshopper, “instead of toiling and moiling in that way?”

 

“I am helping to lay up food  for the winter,” said the Ant, “and recommend you to do the  same.”

 

“Why bother about winter?”said the Grasshopper; “We have got plenty of food at present.” But  the Ant went on its way and continued its toil.

 

When the winter came the Grasshopper  had no food and found itself dying of hunger – while it saw the ants  distributing every day corn and grain from the stores they had collected in the  summer. Then the Grasshopper knew: It is best to prepare for days of need.

 

~ The Ant and the Grasshopper by  Aesop

How the Permanent Political Class Rip You Off

money-bag-400301_150by DAVID BROWN | CLEARNFO.com | MARCH 21, 2012

Just a few examples…

On February 21, 2003, Rahm Emanuel suddenly sold off all of his Freddie Mac stock (~$250,000 worth) just days before a 10% drop in share price.  It wasn’t until late spring until the rest of the public realized that there was a criminal investigation of its senior executives and its earnings had been inflated and would need to be restated in billions of dollars.  This Freddie Mack accounting scandal was much larger than Enron but most never knew about it thanks to our Government Media.

TARP Bailout 2008:  Senator John Kerry started buying lots of troubled bank stocks: $550,000 in Citigroup in early and mid-October,  $350,000 in Bank of America shares.  Days later on October 28, it was announced that Citigroup was getting $25 Billion from TARP and $35 Billion from the Targeted Investment Program.  On November 4th, it was announced that Citi would get loan guarantees that could total $277 billion from the Treasury, Fed and FDIC.

Big Pharma:  Senator John Kerry was on the committee overseeing the prescription drug plan. In all John Kerry and his wife made 111 transactions for their own personal benefit in pharmaceutical companies and health insurance companies in 2003…all of which were great stock picks netting the couple millions in profit.

On March 18, 2008, Speaker of the House Nancy Pelosi and her husband, Paul made the first of three purchases of Visa stock totaling between $1 million and $5 million.  Why don’t we know the exact amount?  Because congress is only obligated to give ranges.  This was no ordinary stock purchase.  This was the most popular and lucrative IPO in American history.  Prior to this Visa had been privately held by a group of banks.  Everyone else had to wait until March 19 when the stock would be available to the public but not Nancy.  Even after the 19th getting access was virtually impossible for the average citizen.   Almost all the stocks were going to institutional investors and were oversubscribed –too many buyers—only special, hand-picked customers got these coveted shares at the opening price of $44. Two days later, after public trading began, the stock price jumped to $65 a share.  In short, Pelosi made a 50% profit on their investment in a matter of two days.  On June4, 2008, Visa stock closed at $85 a share.

Somehow the Speaker of the House and her husband happened to get these IPO share barely two weeks after a threatening piece of legislation against Visa from the House of Representatives.

Reference: Throw Them All Out: How Politicians and Their Friends Get Rich Off Insider Stock Tips, Land Deals, and Cronyism That Would Send the Rest of Us to Prison Hardcover – November 15, 2011 by Peter Schweizer (Author)

Opus 018: How to change the system one trial at a time…

Opus 018: How to change the system one trial at a time…

July 26, 2013 at 10:56pm

Despite what the judge may tell you, your constitutional duty is to judge not just the guilt or innocence of the accused but to more importantly judge the constitutionality of the law. Don’t be duped by the instructions of the judge.

The only Supreme Court Justice to ever be impeached–Samuel Chase– was impeached for what our Judges do on a regular basis in our court systems today.

What can you do to help?  If called for jury duty, your constitutional duty is not just to judge the accused but the law(s) under which the accused has been charged. Your constitutional duty is to judge both the constitutionality and the fairness of the law. Judges consistently take this right from you due to your ignorance of the law.  Do not take their bait or their improper  instructions. Protect your rights and your fellow citizen’s rights.

DAs consistently over-charge to scare the accused so that they will take a plea to a lesser crime.  Never take a plea bargain to a lesser charge (unless you are guilty); always demand your 6th amendment right to a trial by jury.

From the link below:

“[In] 1795, Justice James Irdell declared: “[T]hough the jury will generally respect the sentiment of the court on points of law, they are not bound to  deliver a verdict conformably to them.” In 1817, Chief Justice John Marshall said that “the jury in a capital case were judges, as well of the law as the fact, and were bound to acquit where either was doubtful.”

In more recent times, the Fourth Circuit Court of Appeals unanimously held in1969:
If the jury feels that the law under which the defendant is accused is unjust,or that exigent circumstances justified the actions of the accused, or for any reason which appeals to their logic and passion, the jury has the power to acquit, and the courts must abide that decision.

Three years later, the D.C. Circuit Court of Appeals noted: “The pages of history shine on instances of the jury’s exercise of its prerogative to disregard uncontradicted evidence and instructions of the judge.”
In a 1993 law journal article, federal Judge Jack B. Weinstein wrote: “When juries refuse to convict on the basis of what they think are unjustlaws, they are performing their duties as jurors.”

6th Amendment:

In all criminal prosecutions, the accused shall enjoy the right to a speedy and  public trial, by an impartial jury of the State and district wherein the crime shall have been committed, which district shall have been previously ascertained by law, and to be informed of the nature and cause of the accusation; to be confronted with the witnesses against him; to have compulsory process for obtaining witnesses in his favor, and to have the Assistance of Counsel for his defense.

http://disinfo.com/2010/03/juries-are-allowed-to-judge-the-law-not-just-the-facts/

Opus 015: Sapir-Warf hypothesis…

Opus 015: Sapir-Warf hypothesis…

May 8, 2011 at 1:13am

Sapir-Warf hypothesis – George Orwell, Linguistic relativity… A good example is the modern use of the term Liberal. Liberals are anything but liberal. They want large, powerful governments that control every aspect of our lives but of course this control aligns with the liberal theology. An example would be labor unions wherein you must join or at least pay dues and these dues are automatically deducted from your pay check. They are against the secret ballot; read card check. These dues are spent many times against the will of the dues payer for agendas the union member may totally abhor. This is anything but liberal. Likewise in our “liberal” universities, they are very dogmatic. Either you believe in their “well established facts” or you will be ostracized, rejected, ejected and never receive tenure or a lucrative government grant. Just look at anyone who questioned man-made global warming after Al Gore’s Oscar-winning inconvenient truth. The pseudo intellectuals running our universities, media and news organs are mostly thought Nazis. Their fundamental unexamined assumption is that they know best.

Opus 012: My Monkey Thought Experiment . . .

March 21, 2012 at 11:48pm

During thought experiments, I’ve often turned to my fictional idea of a poor little monkey being chased through the jungle by a tiger. Heart pounding, looking over his shoulder and running for his life; any false step or missed tree branch could be the one mistake meaning the grisly end to this little fellow.   It’s a real horror show for me since I can easily identify with the monkey.  Nothing focuses the mind like fear.   I find this scenario useful because it seems to strip away most of the variables and the multiple levels of abstraction most of us face in the complicated society we work our way through today.  Life is not as simple as a monkey running from a tiger in a jungle but I think this anecdote captures something special about the human condition we all face.  This story captures most of the fundamental elements contained in our daily fight for survival, and can serve as a tool to advance our understanding when distilling the complex down to the understandable.The monkey is completely outmatched in terms of power and force, and both the monkey and the tiger are completely aware of this simple fact.  The monkey is terrified and has everything at stake; in fact, he has the most to lose. And so he is completely committed to the task at hand; he is focused and will do whatever it takes to succeed.  He will do the best job he is capable of doing at that particular point and time.  In human terms, this is not a practice session, proof of concept or a computer game.  This is real.  This is up close, in your face and very personal.

We could say that the monkey has a primary interest in the outcome and the tiger has somewhat less than a primary interest since if he doesn’t catch this monkey he may go hungry but most likely won’t lose his life in a grisly act of violence and maintains the future opportunity of catching another monkey or maybe a nice Wild Boar later on.

So, if the monkey is primary, his mother or any immediate dependents might be secondary and the other members of his troop might be considered tertiary, and so on.   We might call primary p1, Secondary p2, Tertiary p3 and everyone else p(n); where “n” is a variable depending on how far removed one’s interest is from the nexus of our story about our monkey, Mr. Primary.

While those in his troop who are not in the primary position might be interested in the outcome, it is doubtful that they would be as focused or animated by the immediacy of the moment or fear or concern to assure a positive, beneficial outcome as Mr. Primary.

So when I look at some of the complex problems facing our country today, I think about our little monkey story and how it might be used to see clearly through the foggy layers of unintelligible political, social and financial decisions & agendas that smother us in controversy. It seems that the further we get away from the primary, the more waste and malfeasance we create for ourselves and our fellow citizens; since those who are not primary, are not as focused on a positive outcome as those of us who have so much at stake.

Opus 011: Fractional Banking System explained

Opus 011: Fractional Banking System explained

December 28, 2012 at 8:41pm

I’m assuming that most of us learned about fractional reserves in Jr. High or high school. I think that Jr. High is now called Middle School and Libraries are now called Learning Resource Centers but I digress. Anyway, most of us learned about one way banks create money out of thin air called fractional reserves and if you were like me, I was taught this was a good thing.

 

To refresh our memories, I thought I’d explore how this works yet again but this time I’d add the front end of this equation where a large part of this money creation occurs.

 

So here’s what happens:

 

The US Government calls up the Federal Reserve (which is not Federal and has no Reserves) and says we want to sell $10 billion in T Bonds. The Fed says okay you have a deal. The US Government sends the Fed some pretty paper that has the number $10 billion printed on it and then the Fed issues $10 billion in Federal Reserve notes and trades this for the bonds. The money the Fed created didn’t exist an instant before this transaction and was created out of thin air. And in fact they don’t even bother to print these Federal Reserve notes, they just make a few entries on their computer and presto $10 billion dollars shows up in a US Government bank account. So you can see that money was created out of debt and in fact money is debt and debt is money.

 

When the Government bank receives the $10 billion, the bank can now loan out 90% of the $10 billion (or $ 9 billion) that was deposited to other customers and charge interest. The 10% of the $10B must stay in the bank because of fractional reserve requirements.

 

Now let’s say that the bank loans out the $9 billion to a customer and this customer takes this money and deposits it into yet another bank. Using the same formula, this bank can loan out 90% of the 9B or $8.1B…$7.29B… and so it goes theoretically forever. The practical limit in the real world however is about 9X the original amount or $90B has been created from the first $10B borrowed by Uncle Sam.

 

Now notice that all this money is created from debt so money in our current monetary system is debt.

 

If you look historically at the Money supply and debt, the curves are the same. Every single dollar in your wallet is owed by someone to someone. Debt is money and money is debt. But there is a problem here and that problem is the interest that banks charge. There’s never enough money supply to pay the interest since debt = money. What this means is that some one has to go bankrupt and the banks take ownership of their real assets. It’s like playing musical chairs except when the music stops someone goes bankrupt.

 

Last time the national debt was paid off was in 1835 when Andrew Jackson shut down the central bank that preceded the Federal Reserve.

 

So what gives all this new money value? It steals its value from the money that already exists. In fact our money has been devalued this way by 96% from 1913 – 2007.

 

 

Federal Reserve Modern Money Mechanics

Fractional reserve banking system

http://www.rayservers.com/images/ModernMoneyMechanics.pdf

Opus 009: The Financial Rabbit-Hole…

by DAVID BROWN | CLEARNFO.com |Original date: December 27, 2012

Debbie Downer (Debbie Reynolds)

Debbie Downer (Debbie Reynolds)

Not trying to be Debbie Downer here but a friend is someone who will tell you if your house is on fire and it is.  The question is do you want the red pill or the blue pill?

“You take the blue pill and the story ends. You wake in your bed and believe whatever you want to believe.  You take the red pill and you stay in Wonderland and I show you how deep the rabbit-hole goes. Remember — all I am offering is the truth, nothing more.”

If you took the red pill, here’s your updated Joe Friday moment…”Just the facts ma’am…”

The US National debt is what is usually reported in the news media but this is just the tip of the financial iceberg that lurks beneath the churning financial sea upon which 313 million Americans bet their futures.  Everyone has an uneasy feeling about an impending financial Armageddon rather than facing fact and reality we choose to believe in magic…that someone has a magic bullet or a solution that will save the day.  But there is no magic.  We are on uncharted waters and unfortunately the news is much worse than is reported.  Let’s take a look beneath the churning waters to take measure of what awaits us and why.

First a few sobering facts the news media are hesitant to report:

Balance Sheet (11/26/13):

  • -US National Debt:  $17 trillion
  • -US Unfunded Liabilities: $127 trillion
  • -Total Liabilities: $144 trillion
  • -Total National Assets: $106 trillion

Net Worth: Negative $38 Trillion

Income Statement (11/26/13):

  • -US Federal Tax Revenue: $2.8 Trillion
  • -US Federal Spending: $3.5 Trillion

Annual Net Income (deficit): Negative $ 0.7 Trillion

Insolvency is the inability of a debtor to pay their debt…

  1. Cash flow insolvency involves a lack of liquidity to pay debts as they fall due.
  2. Balance sheet insolvency involves having negative net assets—where liabilities exceed assets. Insolvency is not a synonym for bankruptcy, which is a determination of insolvency made by a court of law with resulting legal orders intended to resolve the insolvency.

The Net Worth of the US is actually much worse than the figures above when the debt of the state, local, personal, banks are added into the mix.  To fund all the excessive spending and promising, the Federal Reserve continues to create more debt to keep this financial fantasy going just a few days more having no real solution at hand.  In the meantime, the US Dollar is losing its place as the world’s reserve currency which is estimated to reduce the living standard of the US by 40% once this trend completes.

At this point, you might say that things can’t get much worse but they do.  The World-Wide derivatives bubble is currently sitting at an estimated $1.5 Quadrillion or $1,500 Trillion and 80% of these are interest rate swaps.  World-wide GDP is only about $70 trillion.  Why is the interest rate swap so important?  Because as the interest rates go up the bonds go down and most of the major banks would be insolvent if the bonds they hold lost value.  This is the real reason that the Fed is keeping the interest rates low.

In the economy of the 60s – 80s we would have let troubled banks go bust but we have allowed them to get “too big to fail”.  They are too big to fail because if they did fail, it would bring down the entire world economy.   How did they get so big?  It is a direct result of the repeal of the Glass–Steagall Act in 1999.  The Glass-Steagall Act was enacted in 1933 to limit commercial bank securities activities and affiliations between commercial banks and securities firms.  In short it was a wall of separation between commercial and investment banking.  The 1999 repeal permitted Wall Street investment banking firms to gamble with their depositors’ money that was held in affiliated commercial banks.

And it gets worse.  The recent Libor interest rate rigging scandal is being called the biggest financial fraud in history and will have major ramifications to the world economy.   This scandal impacted an estimated $800 trillion in transactions and is just getting started.  Karl Denninger of Market-ticker.org calls this, “the largest organized theft ever committed in human history.”

If the banks are responsible for just 1/10 of one percent of the $800 trillion in Libor transactions, it would represent $800 billion in liability to the banks.  The total cost will be much higher, and some banks will go under as a result of litigation and loss of reputation.  Ron Hera of Hera Research  said “Truth is, if you take back more than 1% of what the banks have stolen, they’re busted.”

Then we have the sovereign bond market bubble sitting at a 300 year high, just waiting to burst.

So you can see that it is not a question of if but when one of these bubbles will burst and the whole house of cards come tumbling down.

Opus 008: The Three Assassinated Presidents…

Opus 008: The Three Assassinated Presidents…

November 23, 2012 at 1:20pm

Some Founding Fathers were strongly opposed to the formation of a central banking system; the fact that England tried to place the colonies under the monetary control of the Bank of England was seen by many as the ‘last straw’ of English oppression and that it led directly to the American Revolutionary War. If you read your American history, you will find a long battle with the central bankers.

 

1)      Assassinated:  1865 Abraham Lincoln

President of the United States (1861 – 1865)

“The Government should create, issue, and circulate all the currency and credit needed to satisfy the spending power of the Government and the buying power of consumers. By adoption of these principles, the taxpayers will be saved immense sums in interest.  Money will cease to be master and become the servant of humanity. “

 

“The money power preys upon the nations in times of peace and conspires against it in times of adversity.  It is more despotic than monarchy, more insolent than autocracy, more selfish than bureaucracy.”

 

–          Abraham Lincoln

 

The London Times 1865: “If that mischievous financial policy which had its origin in the North American Republic during the late war in that country, should become indurated down to a fixture, then that Government will furnish its own money without cost.  It will pay off its debts and be without debt.  It will become prosperous beyond precedent in the history of the civilized governments of the world.  The brains and wealth of all countries will go to North America.  That government must be destroyed or it will destroy every monarchy on the globe.”

 

“The death of Lincoln was a disaster for Christendom. There was no man in the United States great enough to wear his boots and the bankers went anew to grab the riches. I fear that foreign bankers with their craftiness and tortuous tricks will entirely control the exuberant riches of America and use it to systematically corrupt modern civilization. They will not hesitate to plunge the whole of Christendom into wars and chaos in order that the earth should become their inheritance.”

 

– Otto von Bismarck

 

 

2)      Assassinated:  1881 James A. Garfield

President of the United States (200 days—from March 4, 1881, until his death on September 19, 1881)

“Whoever controls the volume of money in any country is absolute master of all industry and commerce…And when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.”

 

–          James Garfield

 

American Banker Association 1891: “On September 1st, 1894, we will not renew our loans under any consideration.  On September 1st we will demand our money.  We will foreclose and become mortgagees in possession.  We can take two-thirds of the farms west of the Mississippi and thousands of them east of the Mississippi as well, at our own price…Then the farmers will become tenants as in England.”

 

 

3)      Assassinated:  1963 President Kennedy

United States President (1961 – 1963)

On June 4th, 1963, President Kennedy signed a presidential document, called Executive Order 11110.  It gave the Treasury Department the explicit authority: “to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury.”  Five months after Kennedy’s assassination all Series 1958 “Silver Certificates” were removed from circulation.

 

 CONCLUSION:

 

“Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of somebody, are afraid of something. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it.”

 

Woodrow Wilson

28th President of the United States (1913–1921)