My brother Bob Blain, retired Sociology Professor at Southern Illinois University who has specialized for the last 35 years in studying economies and how they impact on societies has just published a new ebook that is available online. Just type in “The American Iceberg” and it will pop up in Google and other search engines. It is down-loadable and FREE. After a recent conversation on the telephone Bob agreed that getting his message out is so important that he reduced the price of the book from $4.99 to FREE!!! ”The American Iceberg” starts with a discussion of America’s debt government, corporate and personal. In an unpublished paper written in 1976 (yes 35 years ago!) he prophesied we would have the debt we now have in 2012. He explains and documents the history of how we got where we are and how it was inevitable. You should read this book. Some of the early document quotes, discussions by the Founding Fathers and early Congressional speeches use wording that is now considered archaic but he carefully explains the quotes that may at first seem a little obtuse because of the wording. But as he documents in the book, he is not the first to say that the course settled on by Congress in 1790 to finance the America way of life was from the start doomed to lead to the growth of a huge American Iceberg of debt. Read for yourself. The book is FREE.
Not only should this history be of interest to Americans but at least to all Europeans and any other peoples whose government have and are financing their economies in a similar manner by creating debt. The mechanism he elucidates explains how the current collapse of Greek economy, the difficulties in Portugal, and Spain and the impending disasters in America, England and any other country that continues to finance its economy with interest bearing debt and fiat money issued by national financial institutions such as the Federal Reserve Bank in the USA.
As he and the predecessors he mentions try to point out to the citizens of countries using such a system countries like ours are not really controlled by the government or the people but by the financial institutions and wealthy that control the flow of money. If you don’t believe me read the book! Its FREE. What have you got to loose but a little time reading. What have you got to gain? Knowledge and knowledge is the foundation for change and the power to change.
Professor Blain believes that American debt has reached a ceiling through which it can not penetrate. I believe that there may be a little bit of room left to increase our debt since not all of the Middle Class is yet destitute. Not ALL of the wealth has been sucked to the top. But as Bob points out in “The American Iceberg” the data of our economic history is ominous and disaster is eminent. If you don’t believe him read the book. Its FREE!
In our conversation a few days ago Bob explained to me that the Great Recession was the hand writing on the wall, the recent financial collapse of many in the American Middle Class, the past two decades of corporate failures, and the recent $9 billion loss of JP Morgan-Chase, the deepening crisis here in my home state of California are all related to the fact that America has hit the limit of its borrowing power. To put it another way “The financial ship of the US, its governments and its people has hit The American debt Iceberg which has been growing beneath the surface even faster than what we have been perceiving above the water line. Not just mortgages are below water, our entire economy is in horrific trouble. While our Congressional band plays on our American Economic Ship has hit The American Debt Iceberg.
The second half of “The American Iceberg” is a discussion of the lifeboat Bob offers. Bob wants to change how our money is valued. Its a very interesting concept. He and I have had many conversations regarding how to fix the problems. (I prefer the word conversations to debates because they have been an open honest presentation of our difference of opinions and why we disagree.) For Bob’s solutions you have to read the book because the best way to understand his ideas is to read them as he explains them. It isn’t difficult, he has been a very popular university professor because of his practical approach to problems. How many times do I have to urge you to read the book! Many conservatives will want to put the book down before they have read it through. I feel sorry for these people because they have closed their minds. Don’t confuse me with the facts, I will believe what I want to believe or the propaganda I have been fed since childhood because its a lot of work to get the facts and think them through for myself. But you not only owe it to yourself, it has become vital for your economic survival!
Do I agree that Bob has the answer? To be quite frank, No. I DO BELIEVE THAT IT IS PART OF THE ANSWER. His concept for re-valuing money based on labor has many merits, Read the book to understand why.
I just don’t feel that by itself, changing how we value money will cure all the evils in our current system. As he agrees, there will always be the need for different pay for different work, rewards for better ideas, rewards for better work, rewards for better management and incentives to be innovative. The issue here is how great those difference should be. Even if we can develop a fair system for determining those differences, and I think we can, there is still a fundamental evil that will always exist or that will eventually reemerge if it is eliminated and that is interest. And interest is the Satan of any economic system. Can this Devil really ever be permanently eliminated. No, no more than evil in general can be eliminated from Mankind.
Here’s the problem I see eventually emerging even with Bob’s system and how it must be controlled for ANY economic system to work fairly. Difference in ability, differences in creativity, differences in motivation, differences in hedonistic or altruistic desires will always exist. It is the nature of Man and all animals because of our physical ability to feel pleasure and pain. Also some people are more motivated to prepare for the future by using delayed gratification. Put another way some people will save for the future and some will not. The non-frugal will always want access to more to spend. Any currency based on labor will limit the absolute amount anyone can earn by labor because there are only 24 hours in a day. So the imprudent will never be able to earn enough to constantly have more pleasure. So they will eventually turn to the frugal to “borrow” more resources. The Frugal by nature not being stupid will know that there is increase risk in loaning resources be they called Hour money or fiat dollars with no intrinsic value like we have currently. So the Frugal person and those earning higher hourly wages will eventually have saved resources and will want some increased return if he/she loans out those saved resources because of the increased risk that they may not even be repaid. Nobody wants to work hard so that someone else can enjoy the fruit of that labor. Yet we do that currently when the a capitalist takes an unreasonable return for resources invested, or a worker (CEO for example) demands excessive reward for services rendered or to be rendered. (By the way the woman executive primarily responsible for the $9 billion loss of JPMorgan-Chase stockholder investment is still going to get paid $37,000,000!!). So there will always or eventually be the existence of return for risk and increased return for increased risk or what is commonly called interest. Even if a society were to outlaw all forms of compound interest ( the greatest Devil of them all) , even simple interest will result in the most frugal and the greatest risk takers eventually accumulating more “wealth” to reinvest and we are then off to the races of wealth accumulating in the hands of fewer and fewer people just as we have now. So what is the answer?
In its early days Usury or the collection of ANY interest for loaning resources was a MORTAL sin for Christians but not for Jews, and mortal since were the worse kind. Between the Late Middle Ages and the beginning of the Industrial revolution, this stricture was relaxed and eventually vanished for Christians. Today just as it did from the earliest days of the Industrial Revolution, no return for risk (or no interest) would mean no capitalism and no ability to borrow in an emergency. Some would say absolutely no capitalism would be wonderful. But would it? Without capitalism how would private enterprises get started or grow? How would we provide for the future when we are old or disabled and unable to earn labor based money?
I believe that the evil is not interest per say or capitalism per say but excessive accumulation of wealth which means excess power, excess control, disproportionate luxury, disproportionate remuneration for services and productivity. Hour money as proposed by Bob would help highlight when wage demands or earnings are out of proportion to services or risk. Hour based money would make it easy to adjust currency values in an equitable manner. Hour based money valuation has real merits compared to the arbitrary and capricious manner now imposed by bankers and financiers were are based on subjective fears.
So how can we have interest without re-evolving to our current debt and wealth accumulation abuses?
1) Limit the total amount of wealth that can be accumulated by any one individual or household. Such a limit must be reasonable encourage innovation and risk taking. How can this be done? By a truly graduated income tax with a 100% tax above a certain income. Unfair you say? How I answer? Accumulation of assets by one individual means loss by someone else. The greater the wealth of a few the greater the poverty of others. Look around you if you doubt the truth of this statement. If you believe that the housing collapse only happened to lazy people you are more cynical or stupid than I thought. Of course you don’t. So why did it happen? Earning and taxes disproportionally favor the rich. Everyone knows that especially the wealthy. That’s why they are spending so much to block real change towards equity and hiding behind terms like conservatism and smaller government.
2) The current horrendous maldistribution of wealth needs to be corrected. YES I’m talking about wealth redistribution via taxes. Do you really think Mitt Romney needs 4 luxury cars while a hard working mother of 3 has no health insurance? Do you really think the founder of Facebook should be a Billionaire for 1 yes 1 idea while thousands of veterans can’t find jobs because our consumer economy is starved for Middle Class and Working people with the discretionary income to buy what they produce? Do you really think we should be making so many of our products overseas so that capitalists can have extra profit by using cheap, desperate foreign labor? Do you really think that corporate investors should get richer by removing benefits for laborers and forcing them to abandon their labor unions? Do you really think American executives should be receiving 500 times the wages of their workers when European executive make 30-50 times their average workers?
We will not outgrow our debt and economic crisis, the last 100 years shows that we “outgrow it by increasing debt” and debt is our coffin. More debt just means burying the coffin sooner and deeper. We must redefine our money in meaning terms that are defined not in any material commodity but in the real commodity that creates wealth: human labor per hour. But this is not enough.
We must outlaw compound interest.
We must institute a real graduated income tax with a cap on total income and wealth that is adjustable with inflation or deflation should they occur.
We must redistribute the current horrific maldistribution of wealth putting more money into the hands of the average consumer.
We must insure than labor’s wage reflects labors productivity.
Do these and there will be more money in circulation in the economy. More money in the economy means more jobs. More jobs means a healthier economy and greater prosperity for all.
So what about the debt ceiling? The first step is to do away with the ability of non-elected people to incur more debt and issue more fiat money. That means eliminate the Federal Reserve system. Next authorize the federal government to issue money.
We must forbid government at ALL levels from acquiring debt real or by “phantom” accounting. Accounting tricks and borrowing from future obligations by postponing their payment to a future date must be forbidden (That’s how California got into trouble in spite of a Constitutional provision requiring a balanced state budget). Legislatures also overestimate income in order to make a budget look balanced. This practice must be curtailed and a better method found to estimate future income. A balanced budget amendment as proposed by the Republicans and other conservatives won’t work by itself as California and many other states and local governments have demonstrated.
We will NEVER pay our national debt by cutting services for the poor. We owe tens of thousands of dollars for ever man woman and child in America. If we spent $0 for 3 years and starved everyone to death we still could not pay even our federal debt. So Conservatives and Republicans, let’s get real. Cuts ain’t going to solve the problem. Fundamental change in the system is vital.
In today’s political climate these will only come about if WE THE PEOPLE DEMAND A CONSTITUTIONAL CONVENTION TO FIX AND UPDATE OUTR SYSTEM TO THE 21ST CENTURY.
DOC
Trial By Public Protest
April 3rd, 2012I have watched with much concern the attention given by the major news networks and media to the Trayvon Martin shooting. Recent American history has been plagued by Trial By the Media as newspeople and network executives compete for viewers and paid sponsors. More and more frequently evidence is exposed and contaminated by the media as they attempt to hold trials and convictions on the evening news and contaminate potential jury pools. The more the press and media can whip public “interest” and anger the better for program ratings and network incomes. This has now evolved into large public protests and demands for arrests before sufficient facts are known as to whether or not there are sufficient grounds for arrest.
From what has been reported, the public, me included has been given the impression that the local police did not conduct a sufficient investigation into the shooting of teenager Trayvon Martin. Public sentiment nationwide has been whipped into such a frenzy that the masses are demanding the arrest of the shooter regardless of whatever facts may or may not exist. All this is apparently based on a garbled 911 cry for help.
I personally abhor the many instances of racial discrimination that have occurred since 1865 and especially those that have occurred in my lifetime. All shootings should be thoroughly investigated regardless of the race or ethnicity of shooter or victim or whether the victim survives or dies, the right to protection under the law demands it for the perpetrator and the victim. When the police fail to do so they deserve to be chastised and forced to do their duty properly, justice demands it.
I wonder what Trayvon Martin would think if he saw the current mob demands for what borders on vigilantly “justice”. The American minority community of people of color has suffered enough vigilanty injustice to feel some shame that they are now demanding the same for someone also of color, an Hispanic American.
Some have claimed, stupidly in my opinion, that Mr. Zimmerman can not claim to be a person of color or Hispanic because he is only partially Hispanic and a small percentage at that! How ridiculous and short sighted. What percentage African-American must a person be to consider himself/herself African- American? It wasn’t that long ago that if you had ANY African “blood” (genes) you were African-American and could be put in chains as a slave if you could not prove you were a freeman. How long ago was it that if you had any American-Indian (I prefer the Canadian term “First American” which is more accurate) “blood” you were an Indian and could be used as target practice with impunity. Have we degenerated as a society to such a low point the those who experienced such horrible discrimination and abuse now demand discrimination and abuse against others.
Yes the African-American community has the right and should demand a thorough and unbiased investigation into Treyvon Martin’s death. We as a society and our police owe him at minimum that much.
Yes, Mr Zimmerman has the right to be recognized as a member of a colored minority community if he so choses.
Yes, Mr. Zimmerman also deserves that the police conduct a thorough investigation of the shooting.
Yes, if sufficient evidence is found to justify a trial, Mr. Zimmerman has the right to a lawyer and a fair trial by a fair and impartial jury.
Yes, if Mr. Zimmerman is found guilty of an unjustified homicide he will deserve the appropriate punishment.
Yes, If Mr. Zimmerman is found innocent he deserves to go on with his life, which unfortunate he will not be able to do in his current community because of all the adverse publicity. It may even be impossible to go on with his life anywhere in America because of all the adverse publicity without a change in identity for him.
Yes, Mr. Zimmerman faces de facto if not de jura double jeopardy for his actions because he can face a civil wrongful death suit even if found innocent in a criminal trial.
There are however several blatant legal issues that should be addressed regardless of the outcome of this one case:
1) The racial issue need to be put to rest FOREVER in America. We MUST stop seeing victims or perpetrators as people of this race or not or this ethnic group or not. WE ARE ALL AMERICANS. Shooters should be seen simply as shooters and victims as victims and we and the law should act accordingly. ALL prejudice must be laid to rest forever or we will never have true justice that we can all rely on and have faith in.
2) The law in all states should be changed to not only prohibit felons and those with a history of violence from possessing deadly weapons such as guns and hunting weapons such as bows and arrows but also include forbidding possesion of such weapons by all those with a history of a court order for anger management. If you can’t control your anger what are you doing with a potentially lethal weapon in your possession.
3) The Florida Legislature and any other states with similar laws should carefully review it’s statues regarding interception and detention of suspected criminals by anyone other than a sworn ;=law enforcement officer or official.
4) We should look at passing a Constitutional Amendment forbidding the press from publishing anything other than the name and charges against anyone arrested until AFTER the charges are dropped or dismissed or the person is found innocent or guilty in a court of law. One the trial and all appeals are completed than and only then should the press be allowed to publish any evidence, facts, or other information about the individual, their background, sentence or prior criminal record. All information regarding the victims, crime, suspects, accused, charges, arrested, dismissal or conviction should remained privileged and protected by court order until after the case has been competed including all appeals. Only then will the accused and the victim be assured that the procedures will be as fair as humanly possible.
Shame on the press for exploiting this tragedy under the false disguise of bringing me the news.
May Trayvor Martin rest in piece and my his family and Mr. Zimmerman all experience true justice for all. Hopefully that will still be the outcome in spite of all the exploitation and adverse publicity that has occurred and shame on those who have exploited this senseless tragedy for whatever personal, political. economic or group goals. May God bless all of us with wisdom, understanding and tolerance.
I hope that it is not too late for this to occur.
DOC
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