THIS IS MY 190TH BLOG ON UNDERSTANDING MONEY
TOOLS
June, 2020
In this chapter we are going to delve into
socioeconomics. This is the social
science that studies economic activity and how it will affect us and shape our
economic future, both here in this country and the world. Let’s begin with the expression, “What
the hell is going on?”
Comment. A
friend commented to me that my chapters/blogs vary too much in specific
content, and my punctuation is not the best. My answer to that is if I don’t vary to a degree within a
content range I find it boring.
Secondly, I am not a writer but a “transferor” of information and
knowledge based upon my past work.
My job is to communicate.
As my blogs usually mention money, let me start by saying we
have lost control of our free market investing. John Marnard Keynes economics has prevailed. The government is printing money,
balance sheet and off balance sheet, into oblivion. Our current balance sheet debt just went over $26 trillion,
and growing rapidly. Our Federal
Reserve was never to buy stock in our public companies or support the interest
payments on US corporate bond. Now
they are doing so, in trillions of dollars. You cannot analyze this market. You can “play” the market, especially with companies going
bankrupt, and hope some will survive.
Daily volatility in certain stocks provide a quick “in and out” profit,
but risk increases with a hold. One
last comment on finances and then we will go on. As the world and wealthy are concerned about the future of
the dilution of the dollar’s strength they are turning to investments in art
like famous paintings and sculptures, as well as gold now valued at over
$1700/ounce. The upward ticks in
the markets mean that the government is investing. About 87% of our stock market is owned by the top 1%
wealthiest, therefore mostly benefiting them rather than middle America.
Permit me to say, “do not believe the government and its
figures”. Let’s take a no-brainer
as an example. Two weeks ago the
government stated that we had 42 million Americans unemployed. Then, last week they stated that 2.2
million people were re-employed.
My math gives me a net of 40 million unemployed. In February we hit a high of 156
million Americans employed. If you
divide 40 million by 156 million you should get 25.6%. That is the true unemployment figure,
not the last reported 13%.
The world is experiencing problems and issues it has not
seen in 100 years. It is
monumental, and will affect all of us depending on the outcome. The outcome will be a different model
for the world and no one knows what that will be. Therefore, in this chapter I have decided to look at some
things I believe to be extraordinarily important, and give some history drawing
parallels with today’s society and finances. I will only “wet your appetite” in hopes you have a further
interest and do some research. The
media was drawn to the impeachment of president Trump, then Covid 19 and now
racial inequality. If we stay with
the topic of racial inequality it brings forth a statement made by Napoleon
Bonaparte; “If we open a quarrel between past and present, we shall find that
we have lost the future.”
History repeats itself, cause and effect. Let’s go back 100 years. World War One had ended. The Spanish
Flu of 1918-1920 killing 500 million people was ebbing. Today we have the Coronavirus 19. Europe was a disorganized mess. Germany ended WWI with the Treaty of
Versailles. Part of this agreement
and surrender was to pay the Allies reparation for the costs of WWI. Germany could not meet the financial
obligations. By 1923 Germany was
printing money like crazy and the currency inflated beyond belief. “Debt will kill!”
Two individuals started gaining strength from the turmoil in
Europe, these being Adolf Hitler, an Austrian and Benito “ Il Duce”
Mussolini. Hilter’s first try for
power ended him in jail in 1924.
Prior to, Hitler became the leader of the National Socialist German
Workers’ Party in 1921. While in
prison he wrote Mein Kampf (My Struggle).
Mussolini, the father of Italian Fascist Party, came onto the scene in
1921. Hitler became Chancellor of
Germany in 1933 and Mussolini took over power in 1922. Both built their reputation and control
from lies to the citizens. Too good to be true! The characteristics of the times are so similar of today. Hitler was all about Nationalism and
Mussolini about Fascism (a political group). In this writing we will tether many social and economic
issues together, notice the suggested and possible outcome and finish with Saul
Alinsky’s 8 steps to socialism.
Hitler gained the public’s approval with unity and the
building of amazing buildings and our first highway system called the
Autobahn. He created a car for
all, the Volkswagen. Mussolini
also created beautiful buildings and created a common mode of transportation
for the public, the Vespa scooter created from spare aircraft parts. The Vespa became popular throughout
Europe.
Leading up to these two individuals taking power was
dissatisfaction of the populous, protests and immigrations of foreigners. Especially in Germany immigration came from the Jewish people
leaving Russia and Gypsy traveling tribes that came in from northern India.
Now, in my viewpoint all three main socioeconomic forms of
government will fail with the wrong people in power, these being Communism,
Socialism and Capitalism. Power,
greed, corruption, expansionism and lack of a strong, healthy middle class will
destroy any of these three.
Let me talk about another form of government mentioned
above, Fascism. It started in 1914
in Italy. It is a political
movement. It exalts a nation above the individual, similar to Hitler’s Germany,
and stands for a centralized conservative government with a strong leader or
dictator. Many times the
government will participate financially with the country’s business affairs.
The last degree of Fascism was in Spain. General Franco led Spain until 1973. Franco defeated the true Spanish
fascists during a civil war, however became a tough right wing nationalist.
Most everyday we here about “Anitfa”. This is a political militant protest
movement against fascism and other forms of right wing ideology.
Let me draw all this together. Above we mentioned several things. I believe the populous of our younger generation wants to go
in the direction of socialism. Let
me end by introducing political theorist, Saul Alinsky and his 8 steps to
socialism written in 1971.
1)
Healthcare - Control healthcare, you control people.
2)
Poverty - Increase poverty, poor people are easier to control
and less educated. Do away with
the middle-class.
3)
Debt - Increase debt to an unsustainable level. Increasing taxes creates more poverty.
4)
Gun control - Remove the ability to defend.
5)
Welfare - Take control of necessities like housing, food and
income.
6)
Education - Take control of what people read and media.
7)
Religion - Remove religion and belief in God in schools,
government and churches.
8)
Class welfare - Divide people into two categories, wealthy and
poor. The wealthy then have
control of the poor with no middle class.
Does this all sound familiar from Hitler, Mussolini, General
Franco and our current government?
You must remember who makes the laws, the US Congress and Senate. Over 50% of these members are wealthy
millionaires.
