First, a peek at the author.
Thomas L. Thomson,
US Naval Air Force, Korea, CV9
Skyraider Fighter Bomber AD4NL
60 Night-Attack Missions ~1951/’52
Thomson Publications
(aka San Diego Publishing Company)
Circa 1992
FREE TRADE MYTH
(Includes Value Added Tax ~ Dr. Pat Choate)
and
VOLUNTARY REPATRIATION
OF
UNDOCUMENTED MEXICAN LABOR
A COMPELLING CASE FOR CREATING FACTORY JOBS
IN MEXICO AND THE USA
Thomas L Thomson, Advocate for truth
The national health care problem is but one of the numerous major crises growing out of the failure of free trade. Had our federal government protected our manufacturing industry as it did during periods of high tariffs, health care would not now be in a crisis. The following essay makes the case re our health care crisis indirectly, as it does all other failures derived from so-called "free trade."
If the failure of free trade is not recognized, any national health care program is doomed to failure, as is the rest of our faltering economy. In addition, opening our health care to illegal aliens will be the death knell for the success of any national health care program.
Please peruse my acclaimed essay. It trumps all other solutions to our nations multiple crises.
Appreciatively,
Thomas L. Thomson
Advocate for Truth
THE COLLOSAL FAILURE OF FREE TRADE
And
TITANIC SINKING OF AMERICA’S FINANCIAL MARKETS
BY
Thomas L. Thomson, Advocate for Truth
FIRST THINGS FIRST: DEBUNKING THE BUZZWORD "COMPETITIVE.”
Manufacturing is said to be competitive if goods and services are available at the lowest possible price and profits are maximized, the master predators of the American economy would have us believe. To achieve competitiveness, minimum environmental and labor standards, especially low wages, must be maintained, Corporate America postulates. Therefore, shipping America’s means of production offshore is essential to maintain little or no environmental standards and low ~ if not slave ~ wages while avoiding compliance with protective federal mandates.
The first fallacy of the foregoing is that manufactured goods and services return to America at prices close the original prior to their offshore production. The second disadvantage is that when the jobs go offshore, an equal number of consumers in our nation are also lost, reducing aggregate demand. Aggregate demand is also reduced because offshore labor earns prohibitively low wages. Lowered demand discourages new manufacturing entries into the market, thus reducing price competition.
If the above debunking is truth, who benefits from this destructive economic policy and why do the so-called conservatives hawk its acceptance as making our nation competitive? They do so because corporate financing keeps conservative politics in power to enjoy Congressional largesse (see The Congressional Mafia in Seafood For The Brain ~ Food For Thought, ISBN 0-912495-60-X, Library of Congress Control Number: 2005910410, Thomson Publications, or go to www.seafoodforthebrain.com.
Tragically, the debunked competitiveness principle flushes families, communities including their schools, business, and government down the toilet in the process of turning America into a third-world impoverished nation.
If the conservative transmogrification of the word competitive is a ruse, then what is real competition in economic terms?
Briefly, one must render to one’s liking the fundamental economic principle that a truly competitive economy has many sellers and buyers where marginal revenue equals marginal cost and profits are maximized. This is classical economic theory. It is rarely achieved because business finance and skills are not so abundant as to produce many sellers, particularly for major industries such as automobile manufacturing. However, the principle noted would be the ideal economic model as the goal to achieve true competition and therefore it is not without a modicum of viability.
The blinding light of reality in the previous paragraph illuminates two defects of corporate and Congressional so-called free trade to achieve true competitiveness: Production moved offshore obliterates any chance at retaining many sellers and many buyers within our nation to attain true competitiveness. The sellers are gone and the consumers are gone. Where the hell does that lead the American worker and consumer, his community, his local government, his present and future? Up the creek without a paddle, to put it mildly. The so-called free trade scam is pure economic treason.
Know this ~ there are four legs to the economic chair : resources; investment; management and labor; and consumption. Eliminate any leg and the chair falls. Reduce wages to an amount not supportive of labor's consumption and two legs are dangerously shortened or eliminated. The chair will not stand. Our economy will not stand. Labor is also the consumer. Investment, usually reinvested profits and short and long term bank loans, must have adequate length. Contrary to popular belief, stocks only comprise less than fifteen percent (15%) of our national investment dollars. Business must show a profit, the lifeblood of business in our capitalistic economy. Get the point of all this: each leg must be of length and strength to support competitive business within our nation. When manufacturing is moved offshore, the chair is flat on the floor, our economy is flat on its ass, such as it is when we import the goods and services we need.
The free-traders race to quote Adam Smith and his Wealth of Nations to lean on his "the silent hand of the market” to justify their defunct, ruthless economic predation. Adam Smith clearly and lucidly stipulated that imposts (tariffs) must be imposed where other nations have an economic advantage, such as slave wages and avoiding the costs of environmental standards and funded and unfunded U.S. production mandates.
The truth of history reveals that individual and collective prosperity in our nation was always highest during periods of high tariffs, the Smoot-Hawley smoke screen after The Great Depression included. Read Ravi Batra’s The Myth of Free Trade, Patrick Buchanan’s The Great Betrayal , Gus Stelzer’s The Nightmare of Camelot, and Dr Pat Choate’s books on free-trade as a few eye openers re the free-trade scam of corporate America and our special- interest Congress.
There is only one way America can remain competitive to satisfy the wants and needs of our citizens: keep all manufacturing and services at home. When labor’s leg of the economic chair is treated in a manner that supports consumption, then and only then will our economy be competitive by drawing more sellers into the market to compete with each other. Off-shoring an economy is a disaster for all nations. No one benefits except the elite economic predators whose greed is destroying the Earth environmentally, politically, economically, and socially. In a word, the Divine Right of Kings had been replaced with the Divine Right of Corporations who care not a damn about Americans and dwell on use of the buzzword competitive to try and fool you and me.
Immediately this treatise on truth will have me branded by the corporate and Congressional greedsters as isolationist. It doesn’t float. America can be free to trade without moving its means of production and services offshore; that is, without stiffing American labor/consumers and ruining Earth’s environment unnecessarily transporting goods and services great distances and flooding our atmosphere with billions of tons of pollutants. Trade? Yes! Deindustrialization of America in the name of free trade and competitiveness? No! It’s a ruse that has come home to roost; mortgage failures, collapse of financial markets, job losses leading the way.
SMOKE & MIRRORS EONOMICS: CLAIMED EFFICIENCY AND LOWER COSTS BY FOREIGN AUTO PLANTS IN THE USA.
+++ Foreign auto plants in the U.S only assemble their autos in the USA. ALL major components, as well as numerous minor components are built offshore and shipped in.
+++ All US mfg's must comply with federal funded/unfunded mandates, which comprise 80% of product costs, such as FICA, Workers Comp., UI, safety and environmental rules, and such, more or less evenly split 50/50 funded/unfunded. Components for foreign autos being mfg’d offshore dodge those costs, plus enjoy cheap labor. Given the same exemption, US auto mfg’s would produce autos @ less cost than foreign auto plants in the US.
+++ There is no study of merit ever made that foreign autos are better built than US autos. It is a myth. My research tells me foreign autos can’t handle high-speed driving across great interstate distances in the US. Aside, there are no talk-show hosts in America, except Chuck Harder with TalkStarRadio.com, that are well-enough read to know these facts, as well as other truths noting the overwhelming failure of so-called free trade. In the least, read "The Nightmare of Camelot” by Gus Stelzer, former GM executive and genius businessman dwarfing so-called economists.
Stelzer points out that for every foreign auto that is bought in the United States, five American workers are out of a job and ten more American workers become unemployed as a result of the multiplier effect. The result: the US looses 15 full-time consumers and taxpayers. Therein lies the real cause of our current financial crises as it adds to our economic collapse along with corporate mergers killing competition; concentration of wealth killing consumption; and stock speculation causing stocks to balloon to more than six times earnings as they’re shuffled around instead of for new plants, plant expansion, and plant modernization.
Again, "It’s the Free Trade ~ Stupid!”
When his father died, Gus Stelzer put himself through business college at the age of twelve to be able to support his family. At the age of 14, Gus was in charge of older accountants for a major furniture manufacturer. He later connected with General Motors and rose to CEO for the Western Division of Chevrolet responsible for 350 dealerships, thousands of employees, and millions of dollars when a buck was worth something. When foreign autos were allowed to move into American dealerships, that took generations and millions of dollars for the Big Three to build, Gus saw the handwriting on the wall in concrete business terms and forecast the destruction of our American economy. Being patriotic and intensely concerned, he later wrote the book, "The Nightmare of Camelot” that spelled out America’s economic decline starting with President Eisenhower and moreso with President John F. Kennedy. Hence, the title of his spectacular book denoting the economic mirage of the Kennedy Administration, noting the ambiance of First Lady Jacquelin Kennedy.
Stelzer’s economic expose’ makes its case against free-trade in bottom-line economics in simple arithmetic terms anyone can understand. It was written almost twenty years ago and verifies today the accuracy of all his predictions. Amazon.com has made it available today for as little as 49 cents/copy. Buy it! Read it! Have the real scoop! Know the truth. Speak the truth! Save America!
Gus was the most brilliant scholar and businessman in the market place that ever lived. A patriot to the core, he made so-called economists and economic professors look like children trying to find their way in the dark world of academe.
Gus Stelzer died peacefully on February 21st, 2009 at the age of 94. Pick up his torch, as will I, and spread his message far and wide. Also, read books supporting Stelzer’s expose’ by Dr. Pat Choate; Dr.Ravi Batra; and the brilliant, extraordinary literary master, Patrick J. Buchanan.
VALUE ADDED TAX (VAT) by DR. PAT CHOATE
Dr. Pat Choate, a phenominal economist, described in "Saving Capitalism (ISBN 978-0-307-47483-4 [pbk.] pgs. 56 to 65), VAT's advantage over direct taxes (re IRS) as well as VAT's disadvantage in our trade with 153 other nations regarding rules established by the WTO (World Trade Organization). It is necessary that I include part of that description in FreeTradeMyth to make the essay complete. Hence, I acquired Dr. Choate's permission to quote ten pages of text re VAT, an indirect tax, from his noted book as follows:
| The idea behind the VAT is little understood in the
United States because the government does not use a value-added
tax (VAT), even though 153 other nations do. Because the United
States is the only industrial country that does not have a VAT,
other countries "game” global tax treaties by employing the VAT
to subsidize their exports into the United States,
simultaneously (and purposely) pricing U.S. imports out of the
other countries' markets. Some explanation seems appropriate at
this point about how they "game" the system and about the VAT,
which is actually a very simple tax system. A VAT is a consumption tax. It greatly encourages savings by not taxing money saved or the interest generated. A 2008 report by the GAO illustrates, with an example of a furniture sale, how a VAT works. First, a lumber company cuts trees and mills the wood, which is sold to a furniture maker for $50. With a 10 percent VAT tax, the lumber company adds $5 to the price, remits $5 to the government, and puts on its invoice $50 for the milled wood and $5 of VAT. If the furniture maker sells a finished table to a retail store for $120, its invoice would add $12 of VAT for a total price of $132. The furniture maker would subtract the $5 already paid by the lumber company and remit the balance, $7, to the government. If the retailer sold the table to a customer for $150, it would add $15 to the final price and charge $165. It would then subtract the $12 of VAT paid by the lumber and furniture companies and remit $3 to the government. In this example, the government would get 10 percent of the final price or $15 for a product that sold for $150. The payments would come at each stage from raw materials to final sale with each participant paying the tax only on its value-added. In practice, firms in most countries either pay the tax instantly or accrue the amounts owed and pay the government monthly or quarterly. The system is simple, perfect for modern computerized accounting, and allows taxpayers to know their tax liability and the government to better anticipate revenues. Cheating is difficult with a VAT, easily spotted, and thus limited. Best of all, taxpayers have no compliance burdens. None. There are no IRS penalties. The VAT is paid automatically when someone buys something. Business does the paperwork. There is no April 15 tax day. But, simplicity and ease of compliance - that is, making the U.S. tax system more user friendly - are not the reasons for this sixth principle. It is added because of the long-standing WTO policy of discriminating against direct taxes (such as income taxes) in favor of indirect taxes (VAT taxes), a policy bias that puts U.S. producers and workers at a more than $355 billion annual disadvantage in international trade (see appendix 1). This WTO policy allows other nations to rebate the VAT taxes, thereby subsidizing their exports sold in the United States, while imposing a tariff-like VAT on U.S. imports into their countries. The income tax used by the United States is a direct tax; the VAT is an indirect tax. The WTO rules are that a government’s rebate of indirect taxes on exports is considered as trade neutral, while rebate of a direct tax on exports is treated as a trade subsidy. As global trade expands and economies become ever more entwined, the discrimination against U.S. increases proportionately. The $355 billion trade disadvantage in 2007, for example, was almost triple what it was in 1995 ($137 billion). Of the total disadvantage in 2007, almost $230 billion was from other governments’ rebate of the VAT to their companies that exported goods and services into the United States. These governments also created another $125 billion disadvantage when they imposed VAT-equivalent taxes on American goods and services imported into their country, taxes that were not rebated. This discrimination is a major cause of our large and on-going trade deficit and costs the United States millions of jobs. A country-by-country breakdown of the VAT disadvantage is provided in Appendix One. Changing the U.S. tax system presents an historic opportunity to eliminate this discriminatory foreign tax treatment, thereby helping reduce the huge U.S. trade deficit and recapturing millions of American jobs. This may seem almost too good to be true. But it is. This inequitable system has its origins in the aftermath of World War II when the U.S. was trying to speed Europe’s economic recovery. As part of those efforts, the U.S. accepted a tax loophole in postwar trade agreements that allowed other governments to rebate to their producers any indirect taxes paid on their exported goods and impose an equal tax on any imports, including those from the United States. It was a great idea at the time and contributed in a major way to the rebuilding of Europe. Europe recuperated decades ago; however, the tax loophole remains. In order to compete in international trade, European countries over the years negotiated away their import tariffs, but as they reduced the tariff rate they increased their VAT. France, for example, had a combination VAT and tariff rate of about 22 percent in the early 1960s. While the tariff rate was cut heavily, the VAT was increased, and the combination VAT and tariff on U.S. imports is still about 22 percent today. The same is true across the world. The use of the VAT means, for example, that a German manufacturer of a car, or any other product, exported into the United States gets a rebate on that good from the German government equal to the indirect taxes paid on the production of the vehicle in Germany---the German value-added tax is 19 percent. This amounts to a rebate of 19 percent to the manufacturer on its exports to the U.S., a major export subsidy by any measure. If the vehicle is priced at $50,000, the German government will rebate to the manufacturer $13,300, allowing the base price of the vehicle to be slightly less than $37,000 in the U.S. Conversely, any U.S. carmaker, or other producer, exporting to Germany must pay that government a VAT equivalent tax of 19 percent of the price of the product imported into that nation, plus another 19 percent tax on the costs of all transport, insurance, docking, and duties involved in getting the product into Germany. Thus, a $50,000 Cadillac exported to Germany has more than $10,000 added to its price by the VAT, for a total of over $60,000. Worse, the American company gets no offsetting tax credit in Germany for the corporate taxes it pays in the United States, which also must be factored into the price of a product. Consequently, the VAT equivalent imposed on U.S. imports into Germany is, in effect, a giant German import tariff. The VAT allows German producers to cut their price in America by 19 percent and simultaneously increases the price of any U.S. -made products imported into Germany by the same percent. American producers, therefore, are disadvantaged in both domestic and German markets. Today, a VAT is applied to almost 95 percent of all American exports. The resulting discrimination is a major reason U.S. products are increasingly non-competitive both at home and abroad. Thousands of American manufacturers are responding to this situation by moving their production to countries where they too can get the VAT advantage, sending tens of thousands of U.S. jobs overseas as well. Congress repeatedly has tried to eliminate the VAT disadvantage. In 1974, for instance, it directed the Nixon administration to negotiate America’s VAT handicap away at the Tokyo Round of global trade talks. The other nations, however, ignored the U.S. demand and refused to deal with the issue. The same thing happened in subsequent trade negotiations initiated in 1986 and again 2002. Even today, foreign governments refuse to consider the issue. In 1972 and again in 1984, Congress confronted this stonewalling by changing the tax system so U.S. exporters could exempt between 15 percent and 30 percent of their export income from U.S. taxes, thereby creating a VAT offset. In 1998, the European Union (EU) lodged a complaint with the newly created WTO, claiming the tax benefit was an export subsidy that violated the WTO agreement. The WTO formed a panel to hear the case. The panel met in closed session with the media excluded and the proceedings sealed, as is the practice in all WTO dispute cases. In October 1999, the WTO panel upheld the European position. With that, the United States had one year to change its contested tax law or pay WTO-sanctioned tariffs as compensation to Europe. The Congress enacted replacement legislation in November 2000, which was again unsatisfactory to the Europeans who filed another WTO case against the United States. In August 2001, a new panel upheld the European position and in January 2002 the WTO’s appellate body affirmed the panel’s decision. Congress ignored the WTO decision, which caused the organization to authorize the EU to impose $4 billion of retaliatory tariffs per year on U.S. imports. This got the attention of the Bush administration and it responded by persuading Congress to enact in October 2004 a substitute for its replacement bill of 2000. Meanwhile, the WTO sanctions were postponed. Again, the EU filed a case at the WTO, arguing that the new legislation still provided export subsidies. A panel formed in Geneva, Switzerland, in September 2005 issued a 34-page decision that concluded the U.S. law enacted in 2004 indeed constituted an illegal subsidy that violated the U.S.’s WTO obligations. The Europeans again threatened to impose sanctions. In 2006, President Bush and the Congress gave up and stripped from U.S. law the offending tax provisions. Throughout this almost eight-year trade battle, the Europeans, like all other VAT using countries, continued to provide full VAT rebates on their exports and impose a VAT-equivalent tax on all U.S. imports. The United States could instantly eliminate this export-import disadvantage by shifting from a direct to a VAT tax system. Negotiations with other nations would not be required since the U.S. has treaty rights with them to get these advantages if it adopts the VAT. Not surprisingly, major U.S. and foreign corporations that serve the American market from countries with VAT systems are likely to oppose this shift. They are now invested abroad and will try to keep their existing VAT-based competitive advantage over U.S. domestic competitors. Most foreign governments that maintain major lobbying efforts in Washington will likely try to sabotage any efforts to shift the U.S. from an income tax to a VAT. Their economic incentive is as vast as Table One, below, documents. But, this is an historic economic crisis and in such times impossible things can be accomplished. Choosing a New Tax System There are other tax systems to consider as well. Which is best able to meet David Walker's five principles and the additional one, even after the inevitable political tinkering? Two additional contenders could be game changers - the flat tax and the fair tax - as well as a third -- the value-added tax. The flat tax, as defined by former House Majority Leader Dick Armey (R-TX), who is a professional economist, would eliminate the current tax code and treat all taxpayers the same. Everyone would pay a specific rate, such as 17 percent, of what is left of their annual income from all sources – wages, pensions, dividends, capital gains, rents, or any other source – after subtracting from that total a personal allowance. Social Security and Medicare payroll deductions would not be taxed. The Armey version of the flat tax would have only four allowances: (1) $23,200 for married couples filing jointly, (2) $14,850 for single heads of households, (3) $11,600 for non-married individuals, and (4) $5,300 for each dependent child. The entire tax form would be a single postcard. Armey estimates that with these exemptions, a family of four earning $25,000 would owe nothing. If it made $50,000, it would owe six percent; at $200,000, it would owe a tax of 14 percent. Taxes on business would be equally simple. A company would subtract all expenses from all income and if income exceeded expenses it would pay a tax of 17 percent on that residual. While this flat tax would significantly simplify the tax code, much of the current system would remain, from wage withholding to income tax-related record keeping for business. As now, many people would continue to hide income and cheat on their taxes. The leading alternative to the flat tax is the fair tax. As advocated by Rep. Dan Schaefer (R-CO), it would be a 15 percent sales tax on the gross receipts from the sale of any taxable property or service sold in the United States. Under this plan, income, estate, gift, and non-trust fund dedicated excise taxes would all be repealed. The IRS would be abolished. A consumption tax, the 15 percent levy would be collected on all goods and services sold at retail. Also, utility, legal, accounting, and other service-related activities would be taxed at the same rate. Federal taxes would not be withheld from paychecks and individuals would have no forms to fill out. Only Social Security deductions would remain. The fair tax would not be collected on goods or services bought for resale or used to produce other goods or services or for those that would be exported. The value-added tax, also a broad-based consumption tax, avoids many problems associated with an income tax, including the need to define and calculate depreciation and capital gains. Since VAT is collected by business, individual taxpayers are relieved of virtually all burdens including filing any returns. The General Accountability Office reported to Congress in 2008 that the compliance costs for the VAT would be about 0.55 percent of revenue collected versus 1.27 percent for an income tax. The savings would be between one-half to one percent of the GDP. In 2008, that would have been between $70 and $140 billion, an enormous savings by any measure. The two principal criticisms of the VAT are (1) that is inequitable, imposing proportionately greater burdens on low-income individuals than upon the rich, and (2) because it is hidden from taxpayers inside the costs of production it would be too politically easy to increase. Many nations that use the VAT have eliminated its inequities by imposing zero or low rates on food, health care, and religious and cultural services. Anyway, nothing could be more inequitable than today’s U.S. income tax where billionaires often pay less in both relative and absolute terms than do their secretaries. The second criticism, the political ease in increasing it, is actually one of the VAT’s major advantages. Indeed, the VAT is the most powerful and efficient way ever invented to raise government revenues. It is precisely what America needs now. An analysis by the Tax Foundation of the fair and flat taxes is that both would favor savings over consumption and could generate large amounts of revenue. The VAT would also do the same. The flat tax would require taxpayers to file a return as they do now, but an enormously simplified one. The fair tax would rely on merchants to collect the sales taxes, as they do now for most state and local governments. The VAT would also rely on businesses to remit it at each stage of production. Individual taxpayers would be relieved of any compliance burdens or penalties by the fair tax and VAT. All three tax systems would eliminate estate and capital gains taxes, and all three are single-tax systems that eliminate double taxation, as now happens with corporate and income taxes. All three plans would reduce the tax system’s "dead-weight" loss to the economy and encourage private investment. Simplicity further improves the performance of all of these tax systems. The GAO study of the VAT concluded, "adding complexity through exemptions, exclusions, and reduced rates, decreases revenues and increases compliance risks, administrative cost, and compliance burden.” The lesson is that any new tax system would benefit greatly by keeping it simple and streamlined. All three taxes meet the test of being able to raise sufficient revenues to finance the federal government’s operations on a pay-as-you-go basis. All are broad-based and would minimize tax rates, lower the amount of taxes paid by the overwhelming majority of individuals, improve compliance, cut cheating, and reduce administrative costs. All are industry-neutral, neither favoring nor disadvantaging any industry over another. Many other nations have made the transition from income taxes to a flat, fair, or VAT, which means we can learn from their experiences and design working rules for such a change that would be relatively simple, even for a large and complex economy such as ours. Many nations have both a VAT and an income tax system. The major difference between the three tax systems is that only the VAT is assured of instantly being compatible with WTO treaties. Overnight, the tariff-like VAT barriers to U.S. exports that now exist in 153 nations would disappear. Also, foreign government VAT rebates (subsidies) on goods and services exported into the United States would be instantly neutralized. , Since the fair and flat taxes are consumption based they arguably should be recognized by the WTO, but the reality is they would not be. The U.S. would face years of litigation and negotiations at the WTO in Geneva, and the final outcome would be determined by the votes of other nations that now enjoy their VAT advantage. The global political deck is stacked against America’s adoption of those two types of taxes. Replacing corporate and personal income taxes with the VAT would provide America the game changer it needs to put its fiscal house in order. As the budgets of every President since 1981, including Barack Obama, reveal, the people of United States and their elected representatives have chosen to have a bigger government. The time has come to pay for it. The VAT can provide enough revenues -- at lower tax rates, a lesser burden on taxpayers, fairer, and with far less compliance costs -- to balance the federal budget annually and to begin paying down the national debt. A VAT would also make a major contribution in helping reduce the huge U.S. trade deficit. Replacing U.S. corporate and income taxes with a VAT is totally within the treaty commitments this country has with other nations and can be done by the President and Congress through legislation. The decision is ours alone. Most importantly, shifting to a VAT will help heal the current economic crisis and greatly strengthen American capitalism by favoring savings and investment over consumption. |
_______________________________________________________________
THE TRUTH ABOUT BAILOUT
$1,000,000,000,000 +, +, + = N00,000,000,000,000!!!
|
The so-called Federal Reserve System is not federal, has no reserves, and is not a system. It is a cartel known cutely as "the fed” to those who want others to believe they’re chummy with the highest orders of federal finance, and know nothing of its character, self-interest, or operation. A central national bank, it was created clandestinely off the coast of Georgia on Jekyll Island in 1913. Present were US Senator Aldrich and German banker Paul Warburg, advocate for the German central banker Rothchild.
Rothchild’s birth name was Bauer. He changed it to Rothchild, which means red shield in German, to accommodate his coat-of-arms for his German central bank. The shield displayed five arrows representing his five sons. Note that an identical shield is displayed as the logo for the US Federal Reserve bank. Rothchild is famous for his statement, "I don’t care who controls the country (US) as long as I control the banks,” which he achieved.
Congress passed legislation legalizing Rothchild’s central bank in the USA. Rothchild engineered a financial crisis in our nation to get the legislation passed in Congress during President Wilson’s administration. A second crisis was engineered by the US central bank during President Hoover’s administration that rolled over to President Roosevelt’s administration. Wilson severely regretted having approved legislation establishing the central bank (which I will hereinafter refer to as the "fed” for clarity). Does the above scenario liken itself to today’s crisis to achieve one clandestine objective or another, like acceptance of the Amero to replace the dollar as well as currencies in Canada, Mexico?
Legislation exempts the fed cartel from paying corporate taxes; from opening its books to our federal government; from disclosing its few stock holders; from not allowing the public to own any fed stocks; from paying property taxes. It lends fiat (paper/book) money in the trillions each year to Uncle Sam, who also borrows trillions from foreign nations around the Globe, especially China, and the working stiffs of America pay the fed and foreign banks back through income taxes, which is valued, earnest money. Stockholders of the fed are money-rich beyond imagination in workers hard-earned dollars paying fed principal and interest loans to our federal government as well as foreign nations. It is the greatest scam in the history of man. The fed scam is in the multi-trillions. Do you know that it takes several billion years to count to a trillion. Make me prove it.
As an afterthought, Rothchild knew the local banks of America’s west were floating in deposits from mining rich resources and land development and wanted to rip them off. He was able to do so by controlling their currency, through the fed if enacted into law, which it was. Note that the large majority of fed regional banks are all in America’s eastern sector, leaving one in Denver and a second in San Francisco.
Note that Article 1, Section 8, Paragraph 5, requires Congress to coin the money. Presidents Lincoln and Kennedy had their heads blown off from attempting to follow the Constitution. Kennedy actually had several billion greenbacks (US Treasury dollars) created. Craig Roberts, celebrated Tulsa author, ended his book, "The Kill Zone,” with the words, "Orders to kill Kennedy came from the boardroom of the Federal Reserve” bank. Presidents Garfield and McKinley died early in office, both intending to curb attempts at the establishment of a strong central bank, which would rule extraordinary power over national affairs, especially economic. President Jackson had his life threatened regarding his strong disapproval of establishing a central bank privately owned, such as the fed. He responded, "Over my dead body.”
It is true the US President seemingly chooses the fed chairman. Truth is, the President is told who the new chairman of the fed will be by a vote of the regional banks, or suffer the consequences capable in the power of the fed to upset the US economy and/or the President’s term in office. Note the feds destruction of President Jimmy Carter’s administration with abominable interest rates, the Iran hostage crisis notwithstanding.
It almost seems as if the Republicans and King George, and now the Democrats, have made the people their stark enemy ….. to establish a new world order, perhaps?
SOLUTIONS:
Abolish the Federal Reserve Bank; withdraw from the World Trade Organization (WTO); abolish the IRS and institute the Value Added Tax (VAT); impose US funded and unfunded mandates on trading partners and refuse their manufactures for non-compliance (We are a self-sustaining nation if required). Withdraw from so-called free trade. Trade, YES! Free trade as defined by corporate America and government, NO! Employ graduated tariffs to restore U.S. manufacturing. Again, America’s highest periods of prosperity were during periods of high tariffs. We must protect our economy as we protect other aspects of our lives; police, fire, health, homes, education, general welfare. Note that manufacturing is the nourishment that feeds the protections noted. Note also that the nations who engaged in armed conflict against each other during WWII also engaged in high trade levels prior to WWII: United States, England, Germany, France, Italy, Russia, in the least, heavily trading and then warring against each other. Peruse the references to titles previously noted in this essay.
IN A NUTSHELL:
Roughly 20% of America’s gross national product were from the service industry in the 1950’s; 80% from manufacturing. Today, 80% of our gross domestic product is from the service industry and 20% from manufacturing. Where did that lead our economy (need I ask): loss of high-wage jobs; loss of consumer base; loss of tax base; loss of homes; loss of infrastructure; loss of mfg job skills; loss of factories; loss of libraries; loss of budgets for police, fire, education; loss of pension funds; loss of medical insurance; all in terms of comparative costs allowing for inflation. Add more to this list in your terms and you can only come to one conclusion, especially regarding our current financial and health care crisis, to wit: IT’S THE FREE TRADE, STUPID!
NOTES:
If you essentially believe the foregoing conclusions and are consequently accused of being a "Protectionist” or "Isolationist,” rely on the following:
Protectionist/Isolationist: One who chooses to protect and isolate his nation from economic devastation and poverty resulting from international corporate greed.
DISCLAIMER: I wrote this article from memory and disclaim any errors or inaccuracies of information, especially dates, times, or incomplete names. However, you can pretty much take all of it as gospel.
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OF
UNDOCUMENTED MEXICAN LABOR
A COMPELLING CASE FOR CREATING FACTORY JOBS IN MEXICO AND THE USA
An Essay
by
Thomas L Thomson
Advocate for Truth
Imukaka! Isn’t it amusing how the Devils of Diabolical Deceit (Congress) cloak their chicanery in terms designed they think will fool our entire population! Come November, Congress will discover otherwise. In my particular case, I didn’t reach the age of 80 with an IQ over ten without getting wise to the Devils sixty years ago. You, too? Let’s join forces!
It’s a given that America’s and Mexico’s factory jobs have been shipped-off to Asia, India, and other poverty stricken, population bloated nations, where America’s federally funded and unfunded mandates tied to manufacturing are non-existent. Those mandates comprise 80% of the cost of every product produced in America. This alone has put the USA on the losing end of a trade war that already exists (go to another of my essays, www.FreeTradeMyth.com). Hence, when opponents to the following solution to promote voluntary repatriation of undocumented Mexican labor in our nation claim that it will start a trade war, know that we’ve been in one for over thirty years and have lost our shirts.
Know also that America’s highest periods of economic prosperity have been during periods of high tariffs. Read “The Myth of Free Trade” by Dr. Ravi Batra, and other titles exposing the myth by Dr. Pat Choate, Pat Buchanan, and Gus Stelzer (“The Nightmare of Camelot”).
What has happened in Detroit to the American worker and U.S. production is a showcase for the myth of free trade and few of our intellects, journalists, broadcasters, and representatives will talk about it. Before the blind economic ideology for mythical free trade contaminated clear thinking, Detroit had the highest medium income and highest percentage of home owners (about 80%) in the United States. (I capitalize words and punctuate as I see fit.) Detroit is now a ghost town. How in the hell can anyone survive without a paycheck! Jeeezus Keeerist! It’s more than criminal. It’s inhumane.
Here’s how to get the job done: Establish tariffs on all imports manufactured offshore, especially by American corporations, and exclude tariffs on Mexican (and Canadian) manufactures, i.e., goods (and technical services) produced on Mexican and Canadian soil and not just shipped through our neighbor’s countries.
The policy will inevitably have to result in the return of manufacturing in both nations, particularly with assistance from the U.S. to give Mexico a jump-start inasmuch as Mexico is lacking in production of manufactured goods.
Manufacturing renders high wages and generates economic prosperity. Equally as significant, it generates and sustains a healthy tax base. One doesn’t need an MBA (Master’s Degree in Business Administration) to believe the former sentences are true. It’s common sense and knowledge.
Eventually, after millions of undocumented Mexican Laborers have repatriated themselves, the U.S. could impose upon Mexico to adopt American labor and manufacturing standards to level the playing field, or lose their tariff-free status.
Frankly, it’s a no-brainer. Details would be resolved by the skilled and educated in the U.S. as those details surface, leaving them to Mexican candidates as they become skilled and knowledgeable.
Comprehensive Immigration (Amnesty) : NO! Voluntary Repatriation: Yes! To the naysayers, I say again: Imukaka! You fool no one.
Note:
My exclusion of ever-changing and vanishing statistics is based in large measure on the wisdom of the brilliant physicist, Michio KaKu, to wit:
“Statistics are a means of quantifying one’s ignorance.”
(July 16, 2010)