May 02, 2009

Shovel Ready Socialism and Going Galt

Things you will need to know for our "Brave New World"

Updated with Part II

"The Times, They Are A-Changing"

Much time has been spent recently reflecting on the first 100 days of our new President and his administration. I was reluctant to join in this political commentary earlier for a variety of reasons. The first reason had to do with "The Smackdown" and the great success that it has enjoyed. I was having trouble relating my political observations to the general task at hand of defeating the cyber-jihadist. But why do we fight them? Really it is to support those who have volunteered to protect us by engaging them in a real fight in their own back yard. It all came together for me when I heard a man on the radio ask "When our troops come home, will they be returning to the same country that they left?" I realized then that we are indeed engaged in a wider conflict than just "The Smackdown". While the troops are winning their war abroad, we seem to be losing our war on the home front. Let us then join in the great contest of ideas and join the fight to preserve our freedoms at home for ourselves, our brothers in arms and our posterity.

The Nature of the Beast.

The greatest threat to the American way of life today is the assault on the Capitalist system that is responsible for every success that this nation and it's individual citizens have had. If you are unaware of of what I am talking about then go read "Atlas Shrugged" and check back here in a couple of weeks. That will expose you to the battle of philosophies that is taking place right here, right now in our own country. One is the philosophy of freedom and the other is the philosophy of control. I stand today and forever on the side of freedom. I think that you do too. I have some very bad news for you. We are losing the fight. We are losing our long war against tyranny. We are losing our country to the looters. To win this fight we are going to have to see our country with a new set of eyes and a new set of ideas. Much of the way that we have conducted our lives before has been on the assumption that doing good for ourselves was also doing good for our country. This linkage has now been broken. The wealth that we create by our hard work and industry is increasingly expropriated by a system that uses that same wealth to enrich themselves, our enemies, and to increase their control over our lives. They are killing the goose that lays the golden eggs and blaming the goose for it's own demise. We can no longer afford to pay for our own destruction. We must change the rules that we play by.

Maggie Thatcher once said that the problem with socialism is that it eventually runs out of other peoples money to spend. Therein lies the key to our strategy to defeat the Statist. Their plans and programs always assume that the sheep don't mind being sheared. They see our countries economic output and assume that it is like a river that flows endlessly of it's own volition and will never stop running no matter how much water that they siphon off. That is the great flaw in their reasoning. The great wealth of our country is produced mostly by the hard work of individuals. It is not a natural resource that can simply be collected and distributed freely to one and all. We have the power to dry up that river and deprive the Statist of the funds that they use to maintain their power over us. This is the idea that you may have heard of as "Going John Galt". It does not mean moving to another country or living in a compound off grid. It is the notion that we the people can go on strike. We can reduce the money river to a trickle or shut it off completely. This is the Statists secret fear. This is the nightmare that haunts their dreams. We can make this nightmare come true for them. Nobody knows better than the Smackdown crew the power that one simple idea can accrue. Ask any ex-YouTube user who has had his account yanked. Some people have called for a tax revolt to stop the looters. Some have begun the Tea Party movement. Some are stocking up on ammunition. What can the average American do? It is so simple that most will not believe it could work. It is a simple 2 step plan that most anyone can follow. Are you Ready?

Here are the steps

Step 1.Make as much money as you can.

Step 2. Don't spend it!

Sounds pretty simple doesn't it? Still, allow me to explain. The intent here is to "starve the beast". It is a concept that some in government have used to support the idea of tax cuts. They contend that if the government doesn't have the money in the first place they can not spend it. Nice try, but the Feds still control the printing presses. To fund their grandiose delusion, the current administration has corrupted and is attempting to control most of the major financial sectors of the American economy. This is how they intend to guarantee their access to the money river. Since they now control most of the access points to the river, our only recourse is to dry it up at the source. This may involve some serious belt tightening for at least two years and possibly four, but it is better than a descent into serfdom for the rest of your life. those are really your only 2 choices. Either we starve the beast or it consumes us. Notice that in step 1. I did not say to quit your job or stop paying your taxes. The key to economic survival for the next two years may very well be a large cash reserve. With unpredictable job losses and an uncertain economic climate ahead, cash may be your best investment right now. I do not predict any sustained gains in the stock market in the near to mid term future. Investment relies on confidence and confidence demands not change, but its very opposite. Long term investments cannot be properly planned out in an era of unpredictable economic changes. If you are still putting money into a 401k you might want to think again. Remember when I said that we will have to have a new way of looking at things. A 401k is an OK investment vehicle when you can be confident of the long term stability of the investment institution, the companies that it invests in and the long term security of the currency that you are investing. Nationalized banks, government controlled companies and extremely inflationary monetary policies are not a good environment for long term investments. If we can starve the beast in just a few years and restore sanity to the market system, 401k may again be an investment option instead of a bad joke. In the same vein let us look at additional changes that may be necessary in the short term.
Stay Tuned for Part II~Svin

Shovel Ready Socialism And Going Galt Part II

"Disciplining yourself to do what you know is right and important, although difficult, is the high road to pride, self-esteem and personal satisfaction."

Margaret Thatcher

My Father was born in 1931 and my Mother in 1933. Their young lives were spent entirely in the throes of the Great Depression. The poverty of that era was only relieved by the onslaught of World War in 1939. The United States entered the war two years later on December 8th 1941. They have described to me firsthand the sacrifices necessary to defeat the rise of Fascism in the first half of the last century.

The last automobiles for the civilian market were produced in 1942. No new cars would be available again until after the war ended in 1945. If you owned a car and had a job you could apply for a gas ration stamp. This would allow you to buy a few gallons of gas every week to help you get to work. Replacement tires for any car were hard to find as all rubber production was consumed by the needs of the armed forces. Vegetable gardens were in every yard to augment the meager supplies available from the grocery. Meatless meal days were instituted to deal with the meat shortage. The people seemed to know instinctively that freedom was at stake. They purchased war bonds with the little money that they could spare. They held collection drives for scrap metal, scrap rubber, and any other item that could be collected for the war effort. Few complained. Their husbands and sons and brothers were in a real shooting and dying war in Europe and in the Pacific. It was a war to defeat Fascism and Imperialism. It was a costly but necessary conflict. Fascism was defeated-for a time.

Now, more than fifty years later, freedom is again under siege. It is not from Europe that the threat comes this time, but from elements right here in the Land of the Free. Once again, like our parents and grand parents, we will need to sacrifice to stop the threat. Today, capitalists, CEOs, investment bankers and corporations are all being vilified by the current administration. It is a heinous type of class warfare that inevitably leads to a "Kristallnacht" or "Cultural Revolution".

A simple definition of Fascism is just state control of industry. Chavez has instituted it in Venezuela and others closer to home are well on the way to making it a reality here. I refuse to co-operate with such a regime and so should you. The great wealth of this country is still controlled by those who work for it. Our goal must be to see that our national treasure does not fall into the hands of those who would usurp our liberty. In short~we must go on strike. We must deny our hard earned wealth to those who would destroy the means to produce it.

60 million Americans voted against President Obama in the last election! I call upon every one of them who still feels the same way now to boycott the economic plans of those who would destroy capitalism in this country.

I am not asking anyone to do anything illegal or criminal. I am just asking them to participate as little as possible with the current regime. One party rule is not good for this country. There is an election in two years. If we do not prevail in restoring balance to our political house in this upcoming election it may be too late to ever do so. Here is another inconvenient truth. Socialism appears to work at first, but can only appear to do so for a limited time. Let me tell you the truth about Hitler's "Great Economic Miracle". He put people to work building roads, resorts, monuments, cars, armaments and all manner of things. People got jobs and people got paychecks. Food started to appear in once empty stores. The new currency stabilized. The nation had pulled itself out of depression through hard work and discipline. Or so it seemed. In reality. Hitler had achieved these goals by bankrupting Germany. The gold reserves were all spent. All that was left was a pauper nation with a shiny new army. Without more gold the system would come crashing down upon itself. There was no longer any money left to pay the factory workers, the road workers or the army. Other nations, however, had not spent so profligately. They still had gold and cash reserves. These nations were called Austria, Czechoslovakia, Poland, and France. One by one they were invaded or absorbed into the greater Reich. Their looted wealth kept Germany going for another year, but that was all. Only the vast resources of the Soviet Union remained to be conquered and used to shore up the Fascist system. In the beginning of the Barbarossa campaign(The 1941 invasion of Russia by Germany), German troops were sending home care packages of food wine and cheese to their families back home because these things were no longer available to the general population. The soldiers had better rations than the their families at home. That is what socialism does. It loots when it can and then turns violent as it starts to collapse upon itself. We are on the road to something very like this, very soon.

Start your "Victory Bank" now!

You can help put the brakes on the slide to socialism and invest in your political future ( i.e. freedom) at the same time. We support our nation the most, economically speaking, when we continue the cycle of wealth creation and the free flow of goods regulated by a free market. When our government no longer upholds the free market, it no longer deserves our support. For the next two years I intend to participate as little as possible in the socialists economic experiments. I will not buy a car produced by the United Auto Workers. I will not give money or invest with banks that have succumbed to government control through TARP money or by outright seizure. I will put all such monies into my "Victory Bank". I will no longer contribute to my 401k for reasons outlined earlier. I will put that money into my "Victory Bank". I will be frugal and save as my Mom and Dad did when they had to sacrifice in the fight against Fascism. I will put that money in my Victory Bank. By starving the system we can expose the underlying bankruptcy of the socialist system sooner rather than later. Then, in two years, when the next election comes around, I will use my victory bank to support the forces of freedom. Be it at the ballot box or elsewhere. I would ask everyone that feels like I do to do the same. What a tremendous force we could be if we work together. Please help spread the word. You all did a tremendous job with the Smackdown. Help to spread the word on this as well. Let us all do our best at "Going Galt".

Thank you for taking the time to read this.

God save the Republic



Anonymous said...

Basil says:

I'm hearing more often from my co-workers sentiments like "living under socialism won't be so bad." I attribute such statements to two things. 1) Such people do not understand life under a socialist regime, and 2) the MSM has become the equivalent of Pravda and is pushing for exactly this outcome.

So, let me ask you a question. Would you rather live in an abundant nation with maximum liberty and (relatively) low taxes, or live under a statist regime where goods and services are rationed, individual liberty is limited and taxes are high? It's really that simple.

What I usually get in response is some sort of litany about all the good things government will be "giving" me. Really? I have some news for you, dear reader, the government cannot give you anything without first taking something away from you. Government is entirely redistributive; it creates nothing. And if this simple realization is beyond you, I want you to think about the following: public housing, public schooling, and public toilets. Houston, we have a problem.

The problem is that we are facing an oligarchic takeover of our nation. Career politicians, crony-capitalists, lobbyists, the MSM and anyone who can buy access are conspiring to ruin our republic. It won't be pretty when they control all the levers of power.

What to do? Resist! The key to "Going Galt" is to become as self-sufficient as possible. This means securing as many necessities as you can without participating in the market. I recommend you start with food and energy. You'll be able to groom your personal list to suit your needs as you adjust to the new conditions. The times they are changing indeed. Prepare yourselves.

Basil (out)

Andrea said...

The question - "When our troops come home, will they be returning to the same country that they left?" - was asked many times in the last few years, but it was directed more at the issue of - will our troops return to their homes vilified and spat on like the Vietnam veterans did?

That question asked now after the "100 Days" is entirely different.

We will continue our goal here of fighting the cyber-jihad.
It, unfortunately, is not over.
But the '100 Days Assault From Within' (if you will) must be addressed, and quickly.
I, for one, am all ears.

Svinrod said...

I hope to have part II finished by next weekend. I promise not to pull a Whittle on this.:)

All the best!

Svinrod said...

Basil said

You'll be able to groom your personal list to suit your needs as you adjust to the new conditions. The times they are changing indeed. Prepare yourselves.That is the nub of it exactly! My proposals are just to get people to see that there is indeed a "New Deal" being dealt and that the old way of looking at things must change. we are not in Kansas anymore.

Anonymous said...

Basil says:

Proudhon was wrong. Property is not theft. Socialism is theft. Property rights guarantee a prosperous society. I hold this as a self-evident truth. To the producer go the spoils, and to no other. How could it be any other way? Any man who claims the fruits of another man's labor is a thief. Nothing more and nothing less. Socialism is theft on a grand scale. Know your enemy.

We face a man who "wants to spread the wealth around." That much we have in his own words. Such a man is a knave and thief by his own admission. By what right does anyone claim more than his share of labor? By none except charity by my reckoning. Charity is a fine virtue, but it should be a choice not a mandate.

Kinda reminds me of the beggar king I met years ago in India. He paid hard coin to the worst cases of leprosy and disfigurement for transport to Manali. He knew the spot where the coins would fall like rain from passing tourists. I won't fault his business acumen, but he was a pimp after all.

Did I just infer that the current PrezUS is a pimp? I think I did. You can read that as "praise us" if you like. A man must make a stand. I think I just did.


Opus Rex said...

So my question is what is a victory bank?

I've been pulling all my investments out since november beecause it was painfully obvious that this was coming. I do still have many rental units that are still profitable, and I keep my money in a few local banks that have not taken TARP, but soon I fear it won't matter as I believe that after the next round of forclosures, the ONE will order all banks to take TARP or face seizure.

Svinrod said...

Opus Rex
"What is a Victory Bank?". That is an excellent question. I think it will be different for everyone. I would love to hear some suggestions. For some,it may simply be stuffing cash into the gun vault. There is no interest, but the only loss is through inflation. In the short term, that wont be so bad. In the long term, it will be the silent killer of all accumulated wealth. Col. Cooper once wrote an essay called "Ballistic Wampum". In it he asked what people might use for money if the paper system collapsed. Their would need to be a currency that had an intrinsic value, was relatively imperishable, easily transportable and came in different denominations. Ammunition fits all of these criteria. The problem with gold is that hardly anyone can make change for it. Ammo as a secondary "emergency" currency is not as crazy an idea as it first appears.
The main point is to stop participating in "The One's" economic scheme. I have spoken with friends that say it is a great time now to buy and invest because prices are at an all time low. They are still thinking in pre-Obama terms. The coming tsunami will sink all boats, even the grandest of yachts. I was not always this pessimistic but I think the writing on the wall is clear enough. The people have chosen to inflict this upon themselves. They will ride the wagon off the cliff out of sheer obstinancy.
I hope that I am wrong.
God save the Republic!

Andrea said...

"I have spoken with friends that say it is a great time now to buy and invest because prices are at an all time low."

Yes. Pre-Obama thinking.
If he is willing to take over companies and return monies invested at ten cents on the dollar, it is definitely not a time for investing unless one possesses a crystal ball.

Anonymous said...

Basil says,

A proper strategy will hinge on the future rate of inflation. Hyperinflation will make saving not only unwise, but impossible. In worst case situations like 1920's Weimar or present day Zimbabwe people spend paper currency the day they get it because only tangible commodities like bread or bullets hold their value. But this is only one possibility.

What if the federal reserve should be forced by inflation to reverse course? What happens when interest rates rise and currency is withdrawn from circulation? Then you get a full-blown depression. During the 1930's producers from farmers to manufacturers went under because they couldn't get enough for their products to cover costs. At this point people become self-sufficient or do without.

The third possibility, looking more likely everyday, is a centrally planned economy where the government determines prices, wages, and production. The standard of living plummets and people adjust by participating in the black market.

When Stalin ordered the collectiviaztion of soviet agriculture, it resulted in widespread famine. The soviets were forced by conditions to allow the rural population small gardens as a means to supplement their diet. By the 1970's fully fifty percent of soviet agricultural production was being carried out on just one percent of arable land.

The lesson is clear to those who know history. Government simply cannot do the job as well as a free market. Creative destruction is painful, but necessary in a capitalist economy. The more government attempts to resist this very necessary process, the worse will be the consequences in the long run. I'm afraid the train has left the station. The brakes have failed and the engineer at the controls is drunk. You know how this ends.

Kristopher said...

Junk silver coins. Gold bullion.

Don't assume that hording paper money is a good idea.

roxtar said...

Critical thinking question: How can one claim to love freedom and the ideal of individuality, while at the same time spouting allegiance to a flag and loyalty to a government?

Svinrod said...

Over time, I have learned that the ideal of individuality is best expressed in a society supported by a government whose "just powers are derived from the consent of the governed." The absence of any government is a state of anarchy. See Somalia for a reference point. The world is Manichean. Life for 95% of the worlds population is "short, brutish, and nasty." The United States is exceptional because it was established with the ideal of liberty as it's central premise. The founders were wise enough to realize that any organized society needs a basic structure of law upon which to function. Private property rights must be protected by law.The law requires a court and a constabulary to function. Free trade requires the establishment of a currency so that wealth is portable and not tied to its geographical location. The body politic must be protected from marauding and predatory enemies on it's borders. In todays world, a peoples militia is no longer adequate to that task. These are the necessary pre-conditions to ensure the liberties required for us to be able to express our individuality to the fullest. Freedom is not free.

Best regards~Svin