Because the Capitalist system, as well as the Socialist/Communist/Fascist system are all based on banking and the "economics of the bank regulatory mechanism," for the Socialist (Communist/Fascist) system to succeed, bankers have to collude with educators and government to change the key regulations while undermining the wealth of the Private Sector through 1) taxation, 2) how they spend money (a) borrowed through the issue of Treasuries, (b) printed by the Federal Reserve and 3) guaranteed loans, as these together siphon off the value of accumulated Private Sector capital of the individuals and society as a whole.
Economic Freedom Versus Economic Enslavement: What's the Difference?
Karl Marx was right- it is the people that create wealth. But the difference between the Statist Communist/Socialist/Fascist system and private Sector's free enterprise Capitalist system is that the former seeks to own and control all labor and capital by the State and elite Patrons, while the latter leaves the ownership and control of people's labor and capital in the hands of the people, who generate productivity and create the wealth. But this individually created wealth is both individual and foundational, meaning that the wealth created by one, has an inherent value to the entire society. This is because from the free individual's labor and ownership of their capital are generated, jobs, innovation, technology, products and services that benefit the many both substantially and within the cash flow based value support mechanism of the banking system as a whole, provided that such system honors the financial contracts that sustain predominant markets, pricing, wealth and credit in the Private Sector.
However, government and special interests/elitists have undermined the regulatory system that favors wealth creation for the individual and society as a whole in favor of a regulation that favors the government and elite patrons- on the premise that wealth redistribution would benefit the poor locally and globally. However, if the real intention was to give to the poor through the redistribution of wealth, then a Laffer based tax system, similar to what they have in Hong Kong will maximize tax revenues to enable hand outs, maximize charity to enable hand ups and optimize productivity and economic expansion to enable jobs, innovation, technology, while (1) so called progressive taxes (a) diminish the affordability of mortgage and loan payments of individuals and businesses, thereby (b) diminishing the value of bank assets, (c) reduce the value of bank capital, impinging economic expansion. (2) use of borrowed and printed money for social purposes, converts hard earned wealth into debt to the society as a whole, where, unlike Private Sector debt, which is based on cash flows generated from productivity, such government debt has nothing behind it but the continued drain from the productivity of society, thereby obstructing wealth creation not only for the individual, but the wealth of the entire society, little by little converting free people into slaves of the elite.
So long as the foundational regulation to the bank regulatory mechanism that supports the Private Sector's free enterprise Capitalist operating system is retained, namely hold to maturity accounting ("HTM"), as we had under FASB 115 prior to November 9, 2007, Private Sector capital formation and credit will emerge again and again, derailing the centralization of power to the State. So, as under Hoover/FDR (1929-1938), Congress and the Bush Administration with the supportive market manipulations of the insiders at Goldman Sachs, JP Morgan, Citibank, proprietary hedge funds and commodities traders, replaced HTM with mark to market accounting ("MTM" FASB 157). This meant that the only way that value could be maintained in Private Sector "cash flow" financial contracts (based on affordability formulas of projected net disposable income/net operating income), is for those mortgages and loans to be guaranteed by Federal government agencies or by financial institutions owned by the Federal government. This is because, under MTM's FASB 157, the Federal government and Federal Reserve, still retain HTM valuation system. Therefore, when you consider the implications of this regulatory change to the Private Sector from FASB 115 HTM to FASB 157 MTM, it means that the government with the help of insiders mentioned above has (in stealth mode, while blaming Capitalism and the Private Sector) affected a coup of the entire ownership and control of Private Sector productivity and wealth to itself!
The recent passage of the Financial Reform Act was the last stage in creating this mechanism of Federal government and Federal Reserve guarantee programs, started in 2008, which will now let the government increase taxes, fees, etc, where (1) the "too big to fail" financial institutions will be treated as regulated utilities be under the HTM protectorate of the government, or (2) fail and be taken over by the government, such as AIG, again to come under the HTM value protectorate of the government, or (3) be forced to have approval of any and all consumer, mortgage or business loans, as loan guarantee mechanism. All this will require some form of government patronage, unionization, adherence to further stifling regulation and impingement on the rights of the State over the individual, in short the enslavement of every man woman and child hereafter to become no more than fodder for the State. Isn't Statism/Communism/Socialism/Fascism a fun concept?
Unless the American people shrug off these shackles and educate themselves regarding how the Private Sector free enterprise Capitalist operating system and bank regulatory mechanism works, which the Founding Fathers understood and feared would be undermined and obfuscated from the American people, the ideals of Liberty and Freedom will be forever lost through a bait and switch con of unmitigated proportions. We must wake up!
To really understand this more, I suggest you read the following in-depth weblinks:
The Real Cause for the Economic Collapse (a 56 page economic thesis):
The Secret of Capitalism - 1996:
Related Capitalism Diagrams:
Despite the acceleration of greater and greater productivity gains from the 1950's, increasingly, married couples find themselves working 2 jobs, no time for family, let alone church, and still unable to make ends meet. This collapse of retention of wealth inherent in productivity gains both for the individual and nation as a whole is indicative of how the Statists have been siphoning off the wealth of the nation into virtually non productive even counter-productive debt. As a result of the stealth regulatory change of November 9, 2007, the booming economy that started in December 2005 reaching every market sector, lost all its gains in the single month of December 2007, with Private Sector capital formation and access to credit entirely blocked since then, unless coupled under a guarantee program of the Federal government or Federal Reserve (of which the IMF is an arm). If you think I'm off here, go shopping for a mortgage or student loan and you'll see what I'm describing here as truth.
In Closing:
When we understand how the bank regulatory mechanism works with HTM's FASB 115, as the key regulation that supports the Private Sector's free enterprise Capitalist system, inherent wealth creation and preservation and capital formation and credit, then we will see that if taxes are adjusted along the lines of the Laffer curve and spending reduced by eliminating the growing burden of counter-productive bureaucracies (versus R&D and infrastructure), there is a potential for unleashing an increasable wealth and prosperity wiping out non-productive debt and ushering in a truly Golden Age. You will also understand why under the government's current MTM FASB 157 devastatingly destructive power, the Private Sector wealth and freedom is being crushed in favor of total enslavement of labor, productivity, education and capital to the ownership and control of elite Statists.
As the number of bank failures in the United States continues to accelerate, many analysts are warning that we could soon see unprecedented changes in the U.S. banking industry. In fact, there are some economists that are warning that we could be about to witness the greatest banking consolidation in U.S. history. As dozens of small and medium size banks have failed, the megabanks have systematically been gobbling up larger and larger slices of market share. In fact, if current trends continue, it doesn't take much imagination to foresee a future where the entire U.S. banking industry has been consolidated down to between 5 and 10 "superbanks". So would that be so bad? Well, yes it would. It would represent a massive shift in financial power away from the American people to big, global corporate banks. But if you happen to be a fan of big, global corporate banks perhaps you will really love what is about to happen to the U.S. banking industry.
Blessings on your studies and involvement in understanding and sharing the Truth!
Blessings on your success!
Shane <><
Lighthouse Publications <><"Dedicated to the Never Ending Search for the Creator's calling within You" (TM)
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