A Moment Of Reflection

This blog is devoted mostly to economics and investment theories. However, I wish to digress slightly for a moment and talk about the future in less economic terms, but more sociological and historical terms. You see, I believe the world is at an inflection point. The tide it is a changing, but it is not yet set in stone how it will change. Make no doubt, a revolution is at hand. I've already seen the beginnings with the Rally To End The Fed.

Revolutions are a result of the corruption of powers centralized in the hands of too few at the expense of the hands of many. Indeed, 1% of this empire controls the majority of this power and wealth, yet citizens rarely question why, preferring the comfort and security of their 50" LCD purchased on credit at tricky 0% APY....an illusion of prosperity.

Our founding fathers recognized these evils. George Washington, Thomas Jefferson, Ben Franklin, Andrew Jackson; all these men were quite wealthy, but they put their lives on the line as the equivalents of terrorists in the pursuit of life, liberty and happiness. This spirit has long gone and in its place has come centralized power, aka the federal government.

Courage and awareness is the only remedy. Unfortunately Americans have had cozy lives the past 60 or so years. There is a naivete inherent in Americans today as they've taken the bribe of false prosperity for so long. The seven deadly sins are catching up with us and unless education and awareness is spread, power and wealth will only continue to be transferred to the few.

Fortunately, media outlet is shifting. The internet has given a voice to all and is the ultimate knowledge portal. In fact, it is the perfect breeding ground for the kind of grassroots movement that has historically united the masses to form the waves of secular change. The transformation is never easy and involves sacrifice and hardship, but that's coming regardless. The centralized powers have gone to far this time.

I give you now a list of imbalances inherent in are system.

1. The Federal Reserve System - A private banking institution responsible for the corruption of currency through interest rate intervention and market distortion that causes the "boom & bust cycle"
2. The Federal Government - Responsible for the adoption of the Fed, which enables massive public works at the expense of the people via tax and the hidden tax aka inflation. Foreign meddling and empire uilding has now created America into a monster, our reputation shattered.
   
3. Fractional Reserve lending - The current banking system that acts like an upside down pyramid, whereby the Federal Reserve enables commercial banks to lend out 10x's demand deposits, creating money out of thin air. When economists speak of inflation, this is the real source.
   
4. Consumerism 1 - The blame can go around on this one. Pioneered by economist John Maynard keynes and pro-government, this has become the prevailing viewpoint of how our economy should be run today. Spending is the mantra, ruin is the result.
5. Consumerism 2 - Consumers themselves can take much of the blame here. We wanted to believe our false prosperity was real and could last forever without having to think. However, spending on credit only kicks the can down the road. The behavior consumerism instills is appalling if you sit back and reflect on it. The "I want it now" generation. Yet we never stop and think about the impoverished and starving in third world nations that despise Americans. Instead, we just turn on another ignoramus reality tv show over a couple Big Macs.
   

If revolution is coming at starts at the bottom as a result of the top. Reality is catching up with Americans, slowly but surely. The message is being spread. Public figures like Ron Paul and Peter Schiff are gaining supporters. Organizations like End The Fed are forming and disgust with bail outs will reach all time highs once the Automakers destiny is met. That will be the straw that breaks the camels backs. The US automakers are symbolic. If they fail despite government support then mistrust will grow rapidly in the Federal Government and their desire to be central planners.

This revolution doesn't have to be ugly, it can be a positive movement with all the sytems and communications we have in place. Finally, I urge all to read Confessions of an Economic Hitman. The story told by this ex-government agent of espionage is truly incredible and eye opening. Below are 2 parts of a radio interview: