Chapter 5. Paper into Gold Alchemists
The supranationals have now completely forsaken their leadership in the once-upon-a-long-ago-time, prohumanity, industrial mass-production, gained exclusively through individual inventive ingenuity, integrity, and local community pride in producing only the best possible products, as does Japan today. Such was the leadership of Henry Ford, Sr., who was inspired to mass-produce no-frills, reliable motor vehicles for the lowest possible prices primarily to help the farmer get to market. That his activity involved large amounts of money was only incidental. It was obvious to Ford that a prudent amount of earnings must be set aside to buy ever-improving equipment. Also, he determined that a safety-factor surplus be set aside against poor economic days. Ford's enterprise was never to make money." At enormous expense he bought back all the shares in his Ford Motor Company from his original backers, whom he found were primarily interested in making money. Henry, Sr., fought J. P. Morgan for many years as to which it should be, "make sense or make money," which are mutually exclusive.
Ford's son and grandson failed to understand old Henry's inspirational philosophy of real-wealth producing and learned to play only the game of moneymaking with the money they inherited.
It is the strategic prerogative of the invisible corporate giant to unilaterally and arbitrarily alter the scoring values in the economic game of "earning a living" vs. either "winning a living" or "tricking a living." The corporate colossus alters the scoring values by increasing prices to ensure that the industrial game will always be won only by the "richest." It is reminiscent of the following incident of my boyhood.
Amongst the neighborhood boys of my childhood was one whose family was very rich and had bought him a set of baseball bats, balls, gloves, mitts, and other equipment such as catcher's masks, base cushions, pneumatic catcher's belly protector, home plate—that is, the equipment for an entire team. Finding a suitable neighborhood field, he would attract a crowd of us. Eager to play, resplendent in his baseball uniform, he would announce the rules of baseball as we were to play it if we wanted to use his equipment. When, however, his side or he himself began to lose or play poorly he would change the rules, making his side's just-scored runs worth five of the earlier runs. If his rule-switching became unacceptable to the rest of us, as it often did, he would pick up all the playing gear, put it in his pony cart, and drive away.
Here is another example. In between the "halves" of an end-of-season championship professional football game, the home team's super-rich and powerful owners, finding their team three touchdowns behind the visitors, convene an effective quorum of the league's team-owners present.
Using various economic wrist-twisting tactics, they persuade a "carrying" majority of the owners to vote that henceforth until further notice touchdowns are to be scored thirty points each, including the one touchdown just made by the home team. As the final scoreboard reads 30-21 in favor of the home team, it is easy to imagine not only the consternation of the public over such unfair tactics but the public's outright rejection of such on the spot, unilateral value-changing. This, however, is all there is to the phenomenon known as unilateral price-advancing, Which is solely responsible for "inflation."
The president of U.S. Steel Corporation says, "The price of U.S. steel is now advanced ten dollars per ton." The president of the United States says, "Mr. U.S. Steel, you can't do that." The president of U.S. Steel replies, "Not only can I, but I already have and that's that, Mr. President. Over and out!" Clonk.
Individual corporations within the economic power structure bring about inflation through unilateral price advancing, about the "reasonableness" of which unilateral score-changing the corporate greats use their media ownership to educate the public. They claim their price increase has been brought about by aggravating cost increases within their particular industry as well as by foreign competition, ergo by evolutionary events beyond the price-increasing management's control. To avoid antitrust action, the price increases are done by the great industrial corporations independently, one by one.
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In order to understand the economic events transpiring in 1981, we must comprehend the rudiments of the financial securities world. The "abstract-being" corporation operating within the United States receives legal authority from state and city governments to sell common shares in "outright risk" ventures, to which common shareholders they promise only proportional sharing of cash profits from their economically successful operation. But corporations also receive legal authority to sell "preferred stocks," to the owners of which the corporation becomes legally obliged to pay a fixed annual rate of interest before distributing any of the profit to those corporations' common stockholders. If, however, the corporation has no annual profit, it has no obligation to pay interest to preferred stockholders. "Preferred" means first to be "paid off" at a fixed annual percentum rate out of net earnings, after which fixed percentum pay-off the common shareholders divide as much of the earned profit as the directors of the corporation feel can be distributed while also taking care of new-development expenses as well as safety-factor reserve fund set-asides.
If the corporate enterprise is to be liquidated, the preferred stockholders are to be paid off before the common stockholders. If the corporation fails, the preferred stockholder share in whatever equity may be left, but not so the common shareholders. If the corporation fails and no assets remain, the preferred stockholders have no further legal recourse, i.e., claiming rights.
In addition to the common and preferred stocks, both of which are outright risk-venture shares, corporations can raise initial, working, or expansion capital by issuing bonds, provided the corporation owns free and clear real wealth, that is, real estate or buildings and easily salable general machinery, such as machine tools, lathes, drill presses, etc., with which machinists produce special-purpose mass-production tools. The word real—of "real" wealth, of "reality"—developed from the Spanish word for "royal" or "royalty." The king or queen personally acknowledged truth. Real is what the socioeconomic power structure decrees it is. Real is, like the abstract legal-entity corporation, a legally accepted fiction—real estate equals royal estate.
Bonds are called securities, and their value is predicated upon the degree of probability that upon public liquidation of a company, the real estate, buildings, and machinery can be sold at the bonds' face value or more. While corporate bonds have priority over preferred and common stocks when corporations are liquidated, fail, or are sold, the bonds do not have priority of claim over those to whom the corporation is already indebted for goods, services, etc., nor do the bonds have priority over federal, state, or municipal taxes. Bond-owners have no share in the earnings of a corporation but do have fixed-interest priority over preferred stocks.
It is relevant to our understanding of securities to note that bonds other than those of tax-guaranteed federal, state, county, and municipal bonds have often proven to be less than secure. For instance, approximately all the railroad-company bonds of the U.S.A. were defaulted, i.e., became 100-percent unredeemable, in the economic depression of 1929 to 1933 and thenceforth.
Within the United States of North America, the right to incorporate is legally obtainable only from state governments and not from federal nor city, town, or county governments. If, however, corporation promoters wish to sell shares worth more than $300,000 for capital expenditures before earnings, then the federal government's Securities and Exchange Commission must also give its approval.
Some states in the United States grant incorporation rights that are more workingly satisfactory to a given type of enterprise than the privileges granted to the incorporators by other states. Some state's incorporation privileges are extended to cover the corporation's operations in other states. Many states grant incorporation privileges only within their own borders.
In addition to the securities issued by corporations or by non-incorporated companies or partnerships, bonds are issued by towns, counties, cities, states, the federal government, and multi-state "authorities." Federal, state, county, and city (municipal) bonds have face declared maturity dates and clearly scheduled tax-collection commitments to cover both the yearly interest rates and the maturity repayments to the bond-holder. All such government bonds have prior right to funds produced by taxes.
In the world of securities—properties—represented by written documents that are legally recognized forms of negotiable monetary investments, there are also insurance policies, and in particular life-insurance policies.
Known in world history's earliest records as "bottomry," what we now speak of as insurance dates back to its practice in 4000 B.C. Babylon as the underwriting of merchant-ship voyages. This practice made it possible for wealthy individuals who were not shareholders in the original shipbuilding enterprise to participate at their own risk in the merchant-ship venturing, which when successful was fabulously so.
Historically, life insurance is a very recent form of the already wealthy humans' and their corporations' capital gambling, and does not begin until the industrial era of the late nineteenth and early twentieth century, when technology began to render humans' immediate physical environment more propitious for the protecting, support, and omni-accommodation of increasing numbers of human individuals, despite remote devastations occurring in the world's wilderness areas.
The technology of industrialization was first taken advantage of by the military specifically intent on how to more accurately kill more and more people at ever great distances in ever shorter periods of time. As a consequence, the technologically advanced nineteenth-century weaponry witnessed greatly increased war-wrought devastation, leaving more and more wounded to die on the battlefields. The medical world being as yet inexperienced and ignorant, the U.S.A. Civil War saw the highest ratio of deaths per battlefield-committed soldiers in all history. Due to medical ignorance, the U.S. Civil War also saw more wounded left unattended to die on the battlefield than in all other wars of known history.
When the U.S.A. entered World War I in 1917, it was asked by the British to replace all the line-of-supply ships the British had lost to German submarines and simultaneously to bring the U.S. Navy to parity with that of the British while also training, arming, transporting, and Navy-escorting one million soldiers across the German-submarine-infested Atlantic to the battlefields of France. When the numbers of U.S.A. troops killed and wounded in World War I battling reached unprecedented numbers, the U.S. Congress was confronted with the enormous cost of training, arming, and transatlantic-replacing of their killed and wounded troops in France. The U.S. Congress was then informed of an alternative solution to the replacement problem.
The U.S. medical scientists informed the U.S. Congress of the potential ability to save and repair the wounded U.S. soldiers in France, provided enough money was appropriated for a known-to-be-possible vast advancement in medical science: drugs, equipment, and practice. The cost of this capital investment in medical science, though historically unprecedented, was far less than the cost of entirely new troop replacements from the U.S. Convinced of these facts, the U.S. Congress appropriated the funds for the medical-science solution of its problem.
It worked. When the war was over and the saving and rehabilitation of vast numbers of veterans was realized, the new-era medical establishment was not disbanded. Enthusiastically supported by citizens in general, scientific medicine refocused its attention on the U.S.A. home front. One after another, the immediately fatal and "incurable" diseases, lethal conditions of yesterday, came swiftly under complete control. Medical information regarding further curing and effective anticipatory avoidances was enormously expanded in the late 1920s. It was discovered in the late 1920s that the area of highest mortality was the period of childbirth and its first ensuing four years. This brought successful coping with these initial years' fatalities into general effectiveness in the 1930s. The seeming population explosion after World War II was due in fact not to a postwar increase in the birthrate, whose small rise in the U.S.A. lasted for only two years, but to the coming of visible age of those who used to die but did not now or hereafter die in the womb or at birth or within their first four years in the 1930s, as had those conceived or born before the 1930s, together with the subsequent escapees of the pre-1930s childhood mortalities.
There is no scientifically accredited manifest of an alteration in the extreme-limit magnitude of human life-span throughout all recorded history. There are many claims and assertions of great longevity, but 113 years is the greatest span positively known to exist. One hundred and thirteen years is the terminal norm of human life. How many attain their potential longevity is another matter. Few do. However, the number of those who do is now increasing. Quite clearly, the ability to substitute plastic bones and mechanical hearts, etc., suggests that we may have entirely inanimate physical human mechanisms, proving what we have contended from the beginning to be true, i.e., that whatever it may be, life is not the physical equipment that it employs any more than is the telephone or any other of the integral or detached tools that life employs.
Despite many dramatically negative side-effects and feedbacks, twentieth-century technology has rendered the everyday physical environments in the U.S.A. and elsewhere ever more favorable to human life. This has greatly increased the realized life-span as well as the physique of Americans and others living under the same technological improvements of the environment—in the years between World War I and World War II, the average height of American males increased four inches.
A popular 1900 song said, "A dollar a day is very good pay when you work on the boulevard." Two and a half dollars per fourteen-hour day was the pay for my own first pre-World War I job in New York City with one of the great meat-packing companies, $15 a week ($880 a year), and I was able to live happily but frugally on it. I was married in 1917, and as an ensign U.S.N. in the U.S. Navy's European war zone duty I was receiving $1,800 a year.
The younger you are, the more attractively low are the annual rates of payment for maintaining each thousand dollars worth of a life-insurance policy. In 1917 I figured that if, when I died, my life insurance policy would give my wife a capital sum of $50,000, she could deposit that sum in a savings bank. She would then receive a 4 percent annual interest payment of $2,000 which would be $200 more per year than had been our U.S. Navy ensign's pay. She would have only one of us two to look out for, so that she should be able to save and add to the principal deposited in the savings bank. According to their advertising, the savings bank would continually "compound" the interest on the deposited amount. That was the economic picture presented to me in 1917 by the so-called honest businesses and the deeply respected banking world. Prudential Life Insurance Company depicted itself as "Secure as the Rock of Gibraltar." So I bought $50,000 worth of life policies. For my World War I zone activity of eighteen months duration I was given a bonus of a fully paid $5,000 of life insurance payable to my heirs at my death. The life-insurance company's sales talk failed to anticipate the great deflation of the individuals' dollars, brought about by moneymaking business' greed increasing the prices of products and services whose physical costs were technologically ever decreasing.
A third of a century later, my annual cost of living at a level which permitted me to travel to give lectures and to design and physically produce improved mass-production prototypes of livingry artifacts reached my 1917 assumed total "live-on-its-interest" capital equity of $50,000 being completely spent each year. I sold my life-insurance policies to the life-insurance companies for their then accrued cash value of $22,000. (This bought me the time to develop the geodesic domes.)
Today, as yet living in the same manner while doing the work essential to following through on my life commitment to solve socioeconomic problems exclusively by invention and development of artifacts instead of by politics, my annual cost of operation has reached $300,000 for servicing my commitment to problem-solving only by artifacts with no savings accruing whatsoever. Because I am not a "business" or a corporation my gross intake is rated as personal income and I am therefore in the 50-percent tax bracket, which precludes my saving any of that income, should I wish to, which I fortunately do not; though I am convinced that I am getting more for humanity with the dollars I spend than is any form of tax-supported government expenditure.
Each of the three Dymaxion three-wheel, front-drive, rear-steered cars, built by me in the depths of the 1930s depression, cost $28,000, i.e., $84,000 in all. Today they would cost twenty times as much for the same vehicles, built of the same materials.
Boastfully "ethical" big business and banking have reduced my "necessitous and desirable" acquiring capability by 95 percent. That is, they have priced and otherwise manipulated the money game in such a way that $95 out of every $100 I have earned has been taken away.
Life-insurance companies bet that humanity is going to live longer than it expects. Those who buy life insurance are betting that they are going to live shorter than the insurance company thinks they are going to live.
The life-insurance companies invented the term "expectancy" of probably-to-be-realized longevity of specific classes of humans existing under various environmental conditions in contradistinction to the (now workingly assumed) unvarying maximum limit of 113 years for all people.
The overall history of humanity's attained longevity is one in respect to which the average individual's attained life-span has progressively increased from a "probable average expectancy" of nineteen years of age for the people of 5000-B.C. Egypt (at sixteen years, Alexander the Great was the world's leading general) to seventy years in A.D. 1980 U.S.A. Though manifesting many setbacks, the overall evolutionarily inexorable increase in longevity of those living within the technologically advancing environment is a product of humanity always gaining more experience and learning ever more from its errors of conceptioning, and acting on how to cope more effectively and intelligently with the progression of natural exigencies. Humans gain despite enormous setbacks by industrial environment-polluting.
The insurance companies collect all possible vital statistics governing the probabilities of individual human survival under all the known controlling conditions. The insurance companies have large staffs of statisticians known as actuaries, who, aided today by computers, are able ever more effectively to render the insurance corporations' stockholders bets to be approximately "sure things." In investing the insureds' premiums today, they find IBM, DuPont, and other such stocks to be "sure things," and tax-secured U.S. government, state, county, and municipal bonds the most risky of investments, for reasons we will later examine.
During the first three-quarters of the twentieth century, average life-expectancy in the most favorable environment countries has almost doubled. When I was born in 1895, life expectancy for a male born in New England was forty-two years of age. On July 12, 1933, I passed my "expectancy day." On July 12, 1979, I completed my "second lifetime" or double expectancy. I am now in the third year of my "third-expectancy lifetime" and am very healthy, with a new stainless-steel hip I have just acquired.
My two completed lifetimes and my third of a third lifetime have found the great majority of "savvy," well-to-do individuals I have met convinced that there exists an inherent inadequacy of life-support on planet Earth, and therefore that their own successful survival as well as that of those whom they cherish depends upon their cleverly learning more and more about how to be legally selfish and thereby to accomplish personal economic advantage by anticipatorily depriving others in directly undetectable ways. These ways are legally and socially accepted practices of deceiving and cheating the public—e.g., by altering the scoring system and the official "game rules" of the accrued monetary equities of other humans through zoning laws, "etc." x 1010 ways.
Price manipulation is most often defended as being governed by supply-and-demand variables, i.e., by what the traffic will bear" and not by time-energy costing, which science finds to be exclusively operative throughout all the constant energy-transformings and interchangings of Universe. This legal deprivation of other humans to one's own personal advantage is most simply accomplished through increasing rents or prices of a cup of coffee or a second-rate cigar (both of which have escalated during my lifetime from five cents to fifty cents). The powerful social precedent for price-advancing has been initiated by non-perishable mine and oil-well owners and those other prime industrial producers, the physical cost of whose products, measured in ergs of energy per hour and pounds of coal or petroleum per pound of manufactured goods, has steadily decreased.
The acceleration in technological enhancement of the living environment apparently accounts for marked life expectancy increases in post-World War I Canada, U.S.A., Sweden, Australia, United Kingdom, New Zealand, Netherlands, Japan. In these countries in 1968 the value of life-insurance policies in force exceeded their respective gross national incomes. In the U.S.A. in 1970 there were 355 million life-insurance policyholders. This being more policies than citizens meant that many citizens hold several policies. In 1970, the assets of 1790 U.S. Iife-insurance companies totaled 208 billion dollars.
Throughout the history of the United States of North America, until 1952, the federal, state, and municipal bonds guaranteed by the tax-collecting capabilities of those authorities, fortified by their ability to seize the property of tax evaders, were generally rated the most secure of "securities" to protect the U.S.A. population.
Until 1952 the states and federal government required that all life-insurance companies, all savings banks, and all trust funds invest only in notes and bonds of the ever-suitably-increasable, tax-supported federal, state, municipal, and multi-state authorities, whose bonds were officially qualified by federally supervised authorities as being "legal for trust funds." Included in the trust-funds category were all the bank- or lawyer-administered wills and trust funds of all kinds, all employment or executive retirement funds of corporations, labor unions, or cooperatives, all savings banks and life insurance companies.
In the post-1933 pullout from the "absolute economic crash" years of 1929 to 1933, the U.S. Congress approximately unanimously enacted a number of measures essential for coping with the economic errors clearly manifest in the post-mortem studies of the Great Crash. Essential to the correction of those errors was the establishment of absolutely inter-constant price, wage, rent, and interest rate controls. Profits were not only permitted but welcomed. They had, however, to be inventively attained by producing more, better goods, more satisfactory services, etc., for the same or lesser amounts of energy, time, and materials invested.
Thorough review of those 1930-42 economic climb-out years' events and their utter undoing in 1952 is clearly related in the chapter "Legally Piggily," in my book Critical Path.
In 1952, the twenty-year moribund G.O.P. regained control of the political initiative and immediately eliminated all price, rent, interest, and wage controls. It also passed laws allowing insurance companies, savings banks, retirement funds, and all trust funds in general to invest in common stocks, preferred stocks, and corporate bonds. This also brought about the formation of a myriad of investment-trust funds. It did not, however, allow the U.S. government or any of the states, counties, or municipalities to invest the enormous Social Security automatically tax-collected individual worker's funds or any other of its future-committed economic-responsibility funds to be invested in any other than its own U.S.A. government, state, county, or municipality dollar-savings-accounts, whose purchasing equity was being ever depreciated by inflation.
With wholesale industrial prices freed to escalate (though protested against by the U.S. Eisenhower-through-Carter presidents), retail prices, wages, and corporate share prices as traded on the stock markets swiftly escalated in response. So-called inflation was inevitable. What the colossus' media call "inflation" is of course deflation of humanity's buying power. Inflation does not increase the true values nor produce more or better goods.
All talk of Federal Reserve rediscount-rate-increases acting as an inflation retardant is in fact only "rationalization" camouflage for escalating bank usury rates. Though a Federal Reserve interest-rate increase may produce a momentary deflection in the "rate of inflation curve," it never does any more than that. There is no evidence whatsoever that Federal Reserve rediscount-rate-increases successfully arrest inflation. This being so, the continuance of such interest-rate increases ostensibly to combat inflation as actuated by the private-enterprise-controlled and deceivingly misnamed "Federal" Reserve Bank system must in historical retrospect be identified as a fraudulent means for increasing the profits of the banking system.
When Nixon cut loose the U.S. dollar from its U.S. government 1933-fixed ($32-an-ounce) relationship to gold, the U.S. citizen's dollar equity declined precipitously.
The last third of a century of overall stock-market price advances, in direct correspondence to the role of inflation in business pricings in general, has produced ever widening but false gaps between people's government fund equity values and the portfolio of world-around stockmarket values of the securities of the private-enterprise system.
Had the U.S. government in 1952 been allowed—by the U.S. government itself, which did the granting—to invest their Social Security and other appropriated funds in Fortune's leading one hundred corporations' common shares, as were all the fund managers of all the within-the-U.S.A. trust funds, life-insurance companies, and investment trusts with their funds, the 1982 value of the U.S. government-tax-collected Social Security and other funds would permit the U.S.A. to extend all manner of social benefits to all its people.
Hopefully, to prevent unilateral price manipulation the original value of the U.S. government tax-collected Social Security funds was price-locked into gold at $32 an ounce. This was done when approximately all the world's monetary gold bullion was stored in the U.S. Treasury's Fort Knox, Kentucky Hills vaults. It was then that the U.S. government contracted with its working citizens to provide each with post-retirement Social Security, to be purchased by them—as with all life insurance—by payments deducted from their wages and salaries and originally matched by equal sums paid for by the employers, all paid to the government in the form of taxes. The first Republican presidency after the New Deal allowed the employers to write off their share of this by allowing them to deduct it as operating expense before calculating annual taxes.
The January 1982 value of the U.S. government's up-to-the-minute paid-in Social Security and other tax-collected, government-committed funds are now stashed away only in ink figures in the U.S. Treasury Department books, completely bereft of that fund's $32-per-ounce linkage with gold, as arbitrarily severed by the Republican president of the United States without authority from the U.S. Congress and only on the advice of media-unidentified non-government "others" with whom he met in a secret two-day conference on Minot Island in Gilkey's Harbor, Islesboro (a Penobscot Bay, Maine, island), after most of the gold had been withdrawn from the Kentucky Hills vaults to meet negative international balances of trade brought about by oil imports.
If, since their inception a half-century ago, the tax deductions for Social Security had been invested in leading common stocks by a consortium of Merrill Lynch-grade investment houses, the majority of U.S. senior citizens would now be multimillionaires.
The advertising industry, the brokers, the banks, the conglomerates, the shipping business, and labor unions have all insinuated their money-making or wage-equity equalization into the complex price-increasing. All the while, the actual basic costs of nature's cattle's calves' hide-making from the photosynthetically Sun-impounded hydrocarbon-rich vegetation energy has not increased one iota. Inventors have greatly reduced the manufacturing costs accomplished only by machinery whose installation costs require large capital sums.
What we have experienced are ever larger sums of other's money being commanded by the money-makers—all at the expense of the individual human beings who do not command such sizable funds, discouraging their enterprise and initiative.
When in 1920 I bought my $50,000 life-insurance policies, the best U.S. Navy officers' shoes cost $4 a pair. Civilians had to pay $5 for first-class leather shoes. Fancy, made-to-order Cordovans cost $7 a pair. In the sixty-year interim, the cows have not improved the quality of their hides; automated shoe-manufacturing processes have not improved the shoes. In fact, the BTU's (British Thermal Units) per each kilowatt of the electricity required to operate the shoe-production machinery has continually decreased; but money-making business has gotten the price increased to $50 a pair. To do so, after each of their arbitrary price-increasings solely for greater profit they have had to share a minimum of their profit with the labor unions else the workers could not buy the shoes. If you are not a labor-union-backed wage-earner you simply pay more and more for the same shoes, which again means that those manipulating large amounts of money are robbing you.
The stock markets reflect these price increases. Since the shoes are no better and often worse, the net of it all is that the same shoes require ten times more of the individual's paycheck dollars, so I am being robbed by the system and my government is unable to protect me; in fact, the present administration of my would-be people's government is being conducted by those who have been robbing me. They have become utterly callous in their viewpoint of rationalized selfishness based on the economic assumption of "not enough for both you and me" wherefore they look out only for themselves. These are the people who are even now maneuvering toward an atomic war exchange in which all the unemployed and poor in general are the only ones sure to be eliminated.
The Reagan government's reduction of taxes for the rich money-makers which might otherwise have been applied to saving the nation's human security system, while concurrently also trying to increase the annual amount of armaments appropriations to a $150 billion level, shows how absolutely ruthlessly the directors of the supranational colossus are determined to acquire their own superarms protection against communism while realistically making hundreds of billions of dollars a year manufacturing their armaments while also ruining the lives (slow murdering) of many millions of U.S. citizen workers to whom the U.S. government has sold the insurance of old-age and health-security benefits. Nixon's cutting loose of the price anchorage betrayed all non-wealthy U.S. citizens.
The Reagan government has reinstated the military draft to raise troops to protect capitalism against communism, while refusing funds to bury the bodies of its appropriations-abandoned deceased veterans, which again makes it clear that what was once the Republican Party of Lincoln is now the party of unmitigated selfishness of big money.
We have arrived at an overall economic condition where the seemingly inalienable rights of U.S. citizenship can be enjoyed only if one is the owner of an amount of stocks whose dividends exceed $50,000 annually per individual at the present level of dollar depreciation. The very word "inflation" is a deliberately deceptive term adopted to exploit the easily misguided human reflex conditioning. It was spontaneously chosen to obscure the fact that all non-holders of corporate shares are being legally robbed.
The U.S. government Treasury, in its almost daily task of arranging for loans from syndicates of banks and brokerage houses for funding and refunding its ever-more-frequently-coming-due-for-payment short- and long-term government obligations, finds it ever more expensive to market even its short-term promissory notes and longer period bonds. Its long-term bonds sell at prices which, with interimly accruing interest, have ultimate monetary yields—between the price at which they were purchased in the financial market and their face-value maturity payoff—in the neighborhood of 18 percent, showing clearly that the financial-market world is now assuming that the U.S. government will soon reach a crisis point beyond which it will no longer be able to pay off either its short- or long-term obligations. All the big brokerage houses and banks that join in syndication to handle the sale of the government-refunding-note sales make so much profit in doing so that they will keep on risking their joint underwriting until they see the moment of formally acknowledged bankruptcy of the nation to be less than a year away. When the score reads one trillion and a half, with a debt increasing regularly at over 100 billion a year, somebody is going to see that the emperor has no clothes and when they shout out to that effect, there will be a swift world acknowledgment of the fact. Then they will try "Title 13," which allows the bankrupt organization to keep on operating and thus terminate any and all risks of private enterprise—for which risking on behalf of human gains it has been given the many considerations such as corporate privileges.
In the September 1, 1981, sales of U.S. Treasury ninety-day notes, which were almost certainly redeemable before any U.S. government bankruptcy payment-defaults, produced yields that were momentarily higher than the earnings on many high-grade corporate shares. Until the summer of 1981 these short-term, high-yield government notes had been sold only in minimum lots, the prices of which have been beyond the everyday buying scope of individual citizens but at negligible prices to the supranationals or any of their world banks. It is now far more risky to buy U.S. government securities than it is to buy shares in what once was risk capital's economic venture corporation shares. There is nothing in the words or spirit of the U.S. Declaration of Independence or U.S. Constitution which states or suggests the U.S.A. is committed exclusively to the success of the rich. The U.S.A. we have known is now bankrupt and extinct.
The swift coming-apart of our national economic system to make way for evolution's inexorably developing integration of a world socioeconomic system is manifest in the full-page advertisement in the Sunday New York Times (August 9, 1981) by one of the most conservative of the New York savings banks: "18% Interest Starting Now. Up to $2,000 Tax-Free Interest Starting Oct. 1." For this same interest rate, Dime Savings Bank required an investment of $5,000. Twenty similarly unprecedented savings-bank ads appeared in the same financial section. Before 1980, U.S. savings banks had paid in the range of 4-percent interest. The following week, that of August 16, the same plethora of bank advertisements appeared, with the percentage increased to 25 percent. By the week of August 23, the advertisements had advanced their offer to 40 percent interest. This was, of course, the correctly calculated percentage of gain, but misleadingly employed. The percentage represented "yield to maturity" in respect to the low August purchasing price of U.S. Treasury notes maturing on October 1, 1981, whose depressed market value indicated not only the imminence of U.S.A. bankruptcy, but the expectation that this particular set of U.S.A. "refunding notes" at ever higher interest rates and on ever shorter maturity terms would in all probability be redeemed before common recognition of the outright bankruptcy. The advertising was deliberate and mischievously misleading in that it implied a continuing 40-percent interest rate if you deposited several thousand dollars— whereas the interest advertised was to accrue only until October 1, 1981. The advertisements failed to clearly communicate that the interest rate after October 1 would be a customary savings-account rate. The advertisements were hoaxes to acquire savings deposits, which the bank could loan out at much higher rates of interest.
At this point in our review of how economic and other social conditions have evolved to such a threateningly devastating future outlook for many if not all humans, we wish to recall that inexorable cosmic evolution is intent on integrating all humanity in one global government and, therefore, on eliminating all of planet Earth's nations and on doing so in a hurry. The most difficult of all the world's sovereignties to eliminate is clearly that of the U.S.A. We recall having forecast this termination of the U.S.A. at least fifteen years ago. The 150 nations are 150 clots in the economic bloodstream of our planet. The headlong rush into the atomic holocaust is in fact a far more threatening development than the natural economic demise of the U.S.A., which in fact may be viewed as simply a self-removing-planetary-economics-blood-clot event.