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This Report may be forwarded as you l i k e without charge. It i s provided as a Public Service at th i s time without cost. The contents and designs of systems are in fact copyrighted. At a future date, a book w i l l be released The Geometry of Time. The charts are often reproductions of an e a r l i e r publication from 1986 also to be soon republished The Greatest B u l l Market In History covering from 1900 up to the 1980s. Additional updating i s underway to complete the Century and into the current time, providing a month to month history of the f i n a n c i a l development of Western Society.

l u ^ A S f e . i f c i — — i

By: Martin A. Armstrong Former Chairman of Princeton Economics International, Ltd. and of the Foundation for the Study of Cycles

There has been t h i s raging battle between the Left and the Right that as any American would lab e l i t , the battle between the "Democrats" and the "Republicans" that has been subject to the plight of cross-dressing from time to time, but none­theless, remains a ongoing bat t l e that i s never won. Indeed, t h i s b a t t l e can never be won because at no time w i l l we ever obtain a 100% agreement on anything. This i s perhaps a major contribution to the very existence of cycles. I t even appears i n our concept of r e l i g i o n that there i s t h i s b a t t l e between good and e v i l . Our concept of even the existence of h e l l and t h i s b a t t l e does not come from scriptures per se, but from a novel by Dante (Durante Alighieri)(1265-1321). The visions of h e l l were adopted by clergy from Dante's work "La divina commedia" (The Divine Comedy) that was completed l a t e i n h i s l i f e .

Democracy i s dying i f i t i s not already dead. We l i v e i n a delusion, a nightmare from which there seems to be no escape. We can argue and y e l l back and forth, but i t w i l l change nothing. For as much as we may believe we have a Democracy and that the state i s somehow controlled by the people, there i s nothing that i s further from the truth than t h i s f i c t i o n of our imagination.

We can do battle to the death, and indeed countless m i l l i o n s have died for what I address. Yet, the harsh r e a l i t y i s that while the p o l i t i c i a n s may come and go, the s e l f - i n t e r e s t of the state endures. This i s a beast once characterized as the Leviathan that was a monster representing the English Common-Wealth. The reason t h i s battle can never be won, i s because the true Leviathan i s not the body p o l i t i c , but the hard-core Bureaucracy1 No matter how we vote, no matter what laws we enact, i t remains the unelected Bureaucrats who decide what to enforce, what the laws mean, and how they w i l l prosecute be i t merely c i v i l to confiscate wealth, or criminal to often create p o l i t i c a l prisoners.

Ignored by almost a l l , i s that there i s no escape from Adam Smith's I n v i s i b l e Hand meaning that the state has i t s own s e l f - i n t e r e s t and i t w i l l survive by whatever ruthless means possible when threatened. This current ba t t l e against the Concentration of Wealth among individuals that i s turning the world upside down, has been waged even against r e l i g i o n s to confiscate t h e i r wealth as we l l . The state, no matter who i s i n charge, w i l l always spend more than i t has and become a ruthless oppressor of a l l rights to survive. This i s what we now face. We are on the edge of bankruptcy.

1

We seem to be frozen within time, compelled to act out the same play with the same ending that nobody ever wins, i t i s j u s t an o s c i l l a t i o n between two extremes. I r o n i c a l l y , i t i s the most r e l i g i o u s that i n f l i c t the most horror for they believe they know the w i l l of Gcd, and see themselves as the j u s t i f i e d and annointed hand of God on earth to punish anyone who disagrees with them. The Puritans k i l l e d over 600 indians because t h e i r women were bare-breasted and that offended Gcd. K i l l i n g innocent women and. children,, of. course,, made Gcd Cheer i n .their minds. Yet here we are again and the Concentration of Wealth i n the i r mind i s unjust and so the eternal battle goes on and on, no doubt sparking violence i n the future and costing millions of l i v e s while attempting to subjugate the population once more to the extreme Marxist views strangely blended with j u s t i c e and Gcd.

The Concentration of Capital takes place among individuals, sectors within the economy (the popular growth focus l i k e r a i l r o a d s , cars, up to Dot.Com), and then between nations and even at the highest l e v e l among regions, Europe, America, and Asia. I t i s the Rule of Law that creates wealth, for a l l the natural resources i n the world are worthless i f there i s no enforced r i g h t of contract, property, and human r i g h t s . Poor nations are not poor because they lack resources. They are poor because they lack the Rule of Law. Who w i l l invest i n Iran or Cuba, i f there i s no r e a l r i g h t to property? I f we take even treasures discovered by individuals, the f i r s t thing the state does i s t r y to claim ownership with no cost. Merely finding an ancient hoard of coins, or a ship-wreck, brings out the greed of the state.

When we look at even the Rule of Law, we f i n d that i t i s never safe i n the hands of the state, for no matter what form of government one l i v e s under, j u s t i c e i s only whatever the state w i l l s . This i s the sad fate of man for he always w i l l l i v e under tyranny no matter what the form of government. We may think we l i v e i n a democracy, but i t i s t r u l y an oligarchy - controlled by the Bureaucracy. We do not vota for any of the things that t r u l y matter. We may vote for a President, Senator, and a Con­gressman, but that i s where i t ends. The President appoints heads of departments, and because they are p o l i t i c a l appointments, they are never t r u l y taken into the ranks of the bureaucracy. Senators and Congressman w i l l never investigate the judges or the Executive, only Presidents to see i f they l i e d to further t h e i r own p o l i t i c a l agendas. The people are at the mercy of judges and executives over which there i s no check and balance and no accountability to the poeple. That i s tyranny.

Supreme Court Justice Brown wrote for the Court i n 1982, the d e f i n i t i o n of tyranny as defined by James Madison i n the Federalist Papers No 47, p300

"The accumulation of a l l powers, l e g i s l a t i v e , executive, and j u d i c i a r y , i n the same hands, whether of one, a few, or many, and whether hereditary, s e l f appointed, or e l e c t i v e , may j u s t l y be pronounced the very d e f i n i t i o n of tyranny."

Northern P i p l i n e v Marathon Pipeline, 458 US 50, 57 (1982)

As a people, the King may have been replaced, but he has only been replaced i n t i t l e . The tyranny that we face from unelected bureaucrats i s simply unbelievable. This i s widespread r i g h t from Federal Government down into the states. An example i s a case where two judges i n Pennsylvania were f i n a l l y arrested and charged with taking bribes from privately-owned prisons to sentence young teenage boys and g i r l s under 18 to incarceration on mere petty offenses. A 14 year-old boy, P h i l l i p Swartley. pocketed change from unlocked parked cars to buy a soft drink and chips. We was told to waive counser, ana tnen sentenced to 6 months, followed by 9 months at a boarding school for teens. His mother was shocked that her teenage son was taken from her for 15 months„ Over 5,000 children have been taken from t h e i r parents i n this manner. CNN reported that "as many as 90 percent of children going through the court system [are] without a lawyer," r e f e r r i n g to a study i n Ohio.

Others have come out and made public the extent of the corruption going on i n the Judiciary. Former Mid-Atlantic bank owner Robert Powell, admitted he was pressured by the judges to pay a bribe to keep his c h i l d from a j a i l . Talk about free speech, a 15-year old H i l l a r y Transue was given a 15 month sentence for mocking an assistant p r i n c i p a l at her school on MySpace. A 13-year-old Shane Bly was taken from his parents and sentenced to a boot-camp for simply entering a vacant building charged formally as trespassing. Kurt Kruger, 17, was sentenced to 5 months and taken from his parents for allegedly helping a fri e n d s h o p l i f t a DVD from Wal-Mart.

The Recently Caught

Corrupt Judges

Who watches the Judges?

Conahan

The Rule of Law has crumbled i n the United States. The two now corrupt judges, Mark A. Ciavarella, J r (58} and Michael T. Conahan (56) were two of the most senior judges i n that d i s t r i c t . These judges helped private contracts for prisons worth about $58 m i l l i o n , according to CNN.

This issue was championed by the Juvenile Law Center i n Philadelphia who f i l e d a p e t i t i o n to the State's Supreme Court that was ignored. The Pennsylvania Supreme Court, l i k e the Federal, has claimed i t i s not bound to uphold the law. I t i s purely a matter of t h e i r discretion. They had refused to hear the case no doubt because judges don't l i k e to s i t i n judgment over fellow judges. That i s reason why we have no real human rights because there i s no absolute r i g h t to demand j u s t i c e . This i s the very core element of our self-destruction for unless there i s a " r e a l " s o c i a l and d e f i n i t i v e b i l l or rights contracted with the people, we have no democracy.

This i s why both extremes f i g h t to control who i s President, for that person alone picks who s h a l l s i t for the re s t of his l i f e over our ri g h t s , p r i v i l e g e s , and immunities. Judges present the single greatest threat to our l i b e r t y , property, and our way of l i f e , for there i s no one who judges the judges. This i s why i n Plato's Republic we f i n d a c l a s s i c debate between Socrates and Thrasymachus, i n which I fear the l a t e r was correct and the former paid for h i s wrong b e l i e f s with his l i f e . Socrates (479-399BC), believed that a democracy was the best form of government and would always gravitate to j u s t i c e because the people ruled. He was wrong. Plato recorded t h i s debate of j u s t i c e and gave Thrasymachus1 argument.

"[T]he d i f f e r e n t forms of government make laws democratical, a r i s t o c r a t i c a l , t yrannical, with a view to t h e i r several interests; and these laws, which are made by them for t h e i r own inter e s t s , are the j u s t i c e which they deliver to t h e i r subjects, and him who transgresses them they punish as a breaker of the law, and unjust. And that i s what I mean when I say that i n a l l states there i s the same p r i n c i p l e of j u s t i c e , which i s the interest of the government; and as the government must be supposed to have power, the only reasonable conclusion i s , that everywhere there i s one pr i n c i p l e of j u s t i c e , which i s the interest of the stronger." ^ m ± t l Q T i f p 2 2

3

I t was the corruption within the Athenian Democracy that led to the position of one of the world 1 s greatest analysts of p o l i t i c a l power, Thomas Hobbes (1588-1679AD), whose career was often interrupted by the necessity of f l i g h t during the English C i v i l Wars.

Of a l l h i s works, the Leviathan stands out as perhaps his crowning achievement. The "Leviathan 1 1 of course was the famous sea monster defeated by Yahweh i n various s c r i p t u r a l accounts, Hobbes coined t h i s as the p o l i t i c a l state. His f i r s t published work was i n 1623 and was a t r a n s l a t i o n of the Greek work of Thucydides, who attracted Hobbes no doubt for his down-to-earth view of mankind and how they could i n fact improve themselves through the lessons of history, which stood i n a con t r a s t with A r i s t o t l e taught at Oxford.

Hobbes l a t e r i n his autobiography admitted that he was also impressed for Thucydides exposed him to the dangers of democracy. Thucydides i s perhaps the f i r s t great Greek h i s t o r i a n who wrote the History of the Peloponnesian War between Sparta and Athens. He was i n Athens for the great plague of 430-29EC and himself came down with i t , but he survived unlike many others. He was even given a command, but l o s t the c i t y of Amphipolis to a surprise Spartan attack, was recalled, stripped of his command, made to stand t r i a l , and sent­enced to e x i l e for 20 years, that ended only with the defeat of Athens i n 404 EC.

Thomas Hobbes (1588-1679) the "Leviathan" published 1651

Thucydides (ca 460-404BC ?)

Thucydides's work shows a c o n f l i c t of character whereas the Athenians were portrayed as more reaction­ary i n t h e i r thinking and i n d i v i d u a l i s t i c compared to the Peloponnesian character was portrayed as much more conservative. This was the core of the c o n f l i c t and we may put t h i s into a modern perspective using the terms of "democracy" against the "communistic" style of Sparta. Sparta was dedicated to a m i l i t a r y oligarchy that rejected the a r t s , philosophy, and l i t e r a t u r e . Sparta was the closest thing that we had to a ancient communistic state where i t i s the bureaucracy that t r u l y controls power reducing i n d i v i d u a l l i b e r t i e s and achieving a standardized world where the people are e s s e n t i a l l y treated the same. Pericles he portrays as combining caution and moderation with a daring imagination and i n t e l l e c t casting him as a leader of a new age. 4

Thomas Hobbes (1588-1679)

There i s l i t t l e doubt that Hobbes was greatly influenced by Thucydides and what he saw was very competing personalities that evolved and that the idea of a Democracy t r u l y did not work. Hobbes believed that the sovereignty of the King was the best solution to the pain of man.

Hobbes was a b r i l l i a n t mind. He saw the c i v i l war rage around him and had to flee for his l i f e because of his ideas. But Hobbes i s not l o s t to an age of kings long since past. I f we look beyond the head of state, we s t i l l see the Leviathan and that i s constructed as the Bureaucracy that never changes which i s why we have had these battles for thousands of years with no resolution. Thrasymachus was indeed correct. I t matters not what i s the form of government and the corruption i n the Judiciary w i l l never stop just because you change the President.

The Leviathan i s the Bureaucracy, which cares not who i s at the head for they alone control the state. Prosecutors w i l l s t i l l charge whomever they desire, and the Judges w i l l deny a f a i r t r i a l and l i k e Judge Shindlin of the Southern D i s t r i c t of New York who sentenced a man to l i f e even after the President and Congress signed a treaty guaranteeing that no one extradicted from Columbia would receive more than 20 years, the Second C i r c u i t Court of Appeals ruled that the defendant Lara had no standing to object because the treaty was with Columbia, and only they could appeal. So you see, there i s no Separation of Powers that was to be the bulwark against tyranny, for the Judiciary obeys no one and only the Bureaucrats can i n d i c t , not the people, so there i s nothing our elected o f f i c i a l s or the people can ever do i n any case whatsoever. We no more l i v e i n a Democracy today where the w i l l of the people i s respected than did Socrates when they ordered his death because the oligarchy d i d not l i k e what he was teaching the children.

Thucydides was correct that mankind cannot t r u l y understand his future without comprehending hi s past. For hist o r y i t s e l f contains repeated occurring patterns of the same arguments and battles time and time again. For example, we come to the very interesting period of J u s t i n i a n I (527-565AD) Byzantine Emperor who came about 224 years l a t e r a f t e r the assumption of power by Constantine I (The Great). Constantine had grown up i n the court of Diocletian who desperately sought to reform the Roman Empire after i t s disasterous collapse of the monetary system under the reign of Gallienus (253-260AD). Not only did the monetary system collapse, but v i r t u a l l y the entire structure of government began to f a l l apart. From a power perspective, i t was the Senate that exercised control over the m i l i t a r y as a check and balance since the days of the Republic. The leader of the army for an event was an elected o f f i c i a l . Yet what had stood for about 700 years, crumbled and control of the m i l i t a r y was then usurped by professional equestrian o f f i c e r s . This led to a v o l a t i l e collapse where numerous Generals were usurping powers to t r y to claim the o f f i c e of Emperor. This was the atmosphere upon which the general Diocletian took control and attempt a monetary and p o l i t i c a l reform known as the Tetrarchy s p l i t t i n g the Roman Empire creating two emperors (East & West) with two vice presidents known as Caesars. In fact D i c c l e t i o n was the f i r s t Emperor to r e t i r e i n 305AD and pass power to the two awaiting Caesars, one of whom was Constantine's father, Constantius I Chlorus ("The Pale").

With the death of his father i n 306AD, Constantine set out to reunite the whole empire under hi s own single r u l e . We f i n d that 224 years after the death of his father i n 306AD, we come to the year 530AD and the reign of Justinian I" (527-565AD). Justinian i s famous for his l e g a l reforms known as the Codex Constitutionum, that was a new codes of Imperial Enactments or Constitutions i n 528AD (published i n 529AD),

a new code of imperial enactments or a constitution i n 528AD {published i n 529AD), a second commission of his reform was to attack the corrupt j u d i c i a r y and codify a l l the laws known as his Digesta. This commission began i n 530 and was delayed by great c i v i l unrest and did not appear u n t i l 533AD. He also simultaneously had established the Institutiones, text books f o r the t r a i n i n g of law students, also published i n 533AD. A second editi o n was published i n 534AD whereby he revised the laws that previously existed i n his famous Codex Justinianus, and his subsequent l e g i s l a t i v e reforms came much l a t e r i n 565AD known as his Novellae Constitutiones Post Codicem.

What we see with the reign of Justinian I i s a determined Emperor who made an e f f o r t to root-out the corruption that f i l l e d the courts and was destroying commerce. Judges were simply for sale and the state of the law reflected that. Within j u s t 224 years of Constantine embarking on t r y i n g to create a new world, we f i n d the age o l d problem of corruption within the ranks of the Leviathan that i s e f f e c t i n g our own economy ri g h t now.

The reforms attempted by Justinian came at a very steep price. The two p o l i t i c a l parties at that time were known as the Blues and the Greens. This i s no different than we have today between the Republicans and the Democrats. Those with a s e l f - i n t e r e s t who stood to lose i n these reforms,

i n c i t e d c i v i l unrest fueling violent confrontations and attempted to apoint a new emperor who would keep the status quo. The people, as usual, were manipulated and knew nothing about what they were r e a l l y arguing for. So i n 532AD, the instigators achieved the u n i f i c a t i o n of the Blues and the Greens who joined together i n t h i s c i v i l unrest.

This uprising became known as the "Nika" Revolt, that i n Greek means to "Conquer" or "Win" insofar as the overthrow of Justinian for his reforms, mostly for his anticipated l e g a l reforms. The new united Blues and the Greens that began as factions i n sports at the Hippodrome, now attacked and set f i r e to the c i t y prefect's o f f i c e and other public buildings. They even attacked the Imperial Palace setting f i r e to i t and burned down the leading church of the Holy Wisdom that was attached to the Palace. They then .jere led to the Hippodrome by the secret instigators demanding the the dismissal of the c i t y ' s prefect and the two new reformer ministers of Justinian John of Cappadocia and the advocate Tribonian, who were the architects of the reforms. The next day, the instigators put up the nephew of the l a t e emperor Anastasius whose name was Hypatius, who also had the support of a small group of senators whose personal interests were also effected Empress Theodora 527- 548 by the reforms. What turned around events, was his wife the Empress Theodora. Justin i a n was going to f l e e , but Theodora made him stand his ground. Once i t appeared that Justinian would stay, she helped his two leading generals B e l i s a r i u s amd Mundus to r a l l y troops who then attacked the mob i n the Hippodrome that ended i n a wholesale massacre and Hypatius was executed.

6

H i s t o r i c a l l y , the Rule of Law has always been the most c r i t i c a l part of our economy for nothing can survive without i t . Yet every time, i t i s the corruption of judges that leads to the destruction of society. Once they can be bought and the courts stacked . with p o l i t i c a l objectives, the end i s usually well i n sight. Every major collapse of a society has been accompanied by the corruption of the Rule of Law. Once that takes place, i t i s time to turn-out the l i g h t s . We f i n d every major reorganization a f t e r a p o l i t i c a l c o n f l i c t involves the reestablishment of the Rule of Law. The f i r s t Roman Emperor Augustus (27-14AD) also revised the legal code upon taking power. We also f i n d Julius Caesar, perhaps the most pro­found p o l i t i c i a n i n history with a c r i s p and t r u l y b r i l l i a n t mind, also had to eliminate the widespread corruption i n the courts and enacted the Lex J u l i a , meaning the Law of J u l i u s .

Indeed, i f we look at J u l i u s Caesar and investigate the contemporary writings of a l l those at the time rather than merely ju s t the corrupt and biased writings of Cicero and Cato, who are renown for t h e i r "Republican" support and resistance to tyranny i n the form of Caesar's dictatorship, we begin to get a better sense of the scope of the f u l l and widespread corruption that led to the f a l l of the Republic, and r i g h t l y so!

The Republic, l i k e our Democracy today, was nothing close to i t s intended design. I t f e l l i nto an oligarchy created from corrupt senators who quite often bribed t h e i r way to o f f i c e and rigged the votes. In fact, the reason why we have the J u l i a n Calendar i s because the Remans used a moon calendar but knew that i t was not correct. Thus, to keep i t adjusted with the concept of a "leap" i n time, the high p r i e s t , Pontifex Max, was i n charge of i n s e r t i n g days when he, i n his sole d i s c r e t i o n , f e l t i t necessary to add a few days. The problem became the sheer scope of corruption among the p o l i t i c i a n s . They would bribe the high p r i e s t to insert even months at a time to postpone elections. So when Caesar marched upon Rome, what was once winter was now summer because the corruption had become so prevasive, that even the calendar no longer functioned.

The reason why I disagree with those who worship Cicero and Cato as the steadfast Republicans against tyranny, i s for within t h e i r comments, one finds either sublime ignorance, or the covert acceptance of the oligarchy form of prevasive corruption. One would expect Cicero to cheer the reestablishment of a calendar that eliminated the "discretion" of a high p r i e s t to manipulate the p o l i t i c a l elections i f he were a true Republican. Cicero slipped when a friend had reminded him that the Constellation Lyra was due to r i s e , he remarked; "Yes, by edict." (Putarch recorded). I f we look at the sweeping le g a l reforms and reorganization of Ju l i u s Caesar the p o l i t i c i a n i n the very b r i e f few years of h i s power before he was assinated i n the Senate i t s e l f , we see not the machinations of a man bent upon personal power for s e l f - i n t e r e s t , but the actions of a major profound reform to attack the corrupt Leviathan - the Bureaucracy. Of a l l the men throughout recorded history, there i s no leader who t r u l y understood the issues of a debt c r i s i s and the economic complexity than J u l i u s Caesar. I w i l l reserve that for another day. For now, the Leviathan i s the bureaucracy and always has been. When those at the top decide to be statemen rather than corrupt p o l i t i c i a n s , they have often paid for t h e i r unbiased attempts to save man from himself with t h e i r l i v e s .

7

Gaius J u l i u s Caesar 100-44EC

The eternal b a t t l e i s c l e a r l y intertwined with the pretense of r e l i g i o n , i f not for anythinq else, but to t r y to j u s t i f y t h e i r position. The c i v i l war i n England demonstrated how also there was t h i s underlying current of t r y i n g to grab wealth. The Revolution brought an end to the reign of Charles I (1600-1649) who was beheaded. Monarchy was thus ended and the Protector, Puritan Oliver Cromell (1599-1658) who seized power and ruled between 1653-1658 even placing h i s own p o r t r a i t on the coinage.

Under the pretense of r e l i g i o n , the reign of ter r o r began. Christmas was outlawed and no one was allowed to celebrate with a dinner i n t h e i r home. State o f f i c i a l s were charged with the duty to peak into people's homes to ensure they obeyed the law. Then a l l sports were outlawed because they led to cursing. I t became a felony to k i s s your wife i n public. Plays were outlawed because t h i s was i n r e a l i t y l y i n g . Every time r e l i g i o u s factions get control of the state, they h i s t o r i c a l l y attack a l l amusements as s i n f u l . This i s the same fact i o n that would confiscate a l l wealth and execute i f they could the r i c h .

John Stuart Mill (1806̂ -1873) wrote a landmark piece he t i t l e d - "On Liberty." In h i s work, he pointed out that " l e t us not f l a t t e r ourselves that we are yet free from the s t a i n of legal persecution." (Oxford World's Classics ed, 1998, p34). M i l l ' s review of the principle of l i b e r t y i s very c r i t i c a l f o r i f we would l i m i t a l l the powers of the state to r e s t r a i n only violence and allow a l l other disputes to be s e t t l e d between the people, the world would be s t a r k l y d i f f e r e n t . M i l l wrote:

"The only purpose for which power can be r i g h t f u l l y exercised over any member of a c i v i l i z e d community, against h i s w i l l , i s to prevent harm to others. His own good, either p h y i s i c a l l y or moral, i s not a s u f f i c i e n t warrant ... over himself, over his own body and mind, the individual i s sovereign."

On Tliberty Chief Justice Marshall of the US Supreme Court also wrote i n the cornerstone

decision of American jurisprudence obviously ignored by v i r t u a l l y a l l federal judges:

"The very essence of c i v i l l i b e r t y c e r t a i n l y consists i n the right of every individual to claim the protection of the laws, whenever he receives an i n j u r y . "

Marbury v Madison, 5 US 137, 163 (1803)

Unfortunately, there seems to be no form of government that ever works for the true benefit of the people. Our pretended Democracy w i l l never investigate a judge nor the Executive, and the Supreme Court claims by Rule 10 i t i s i t s discretion to even vindicate the Constitutional r i g h t s of any c i t i z e n . There i s nothing that a c i t i z e n has anymore, for even property can be taken by the government under i t s concepts of r i g h t of domain. When i t comes to taxation, you are merely the property of the state, a slave. Americans owe taxes no matter where they earn income even i f they l i v e over­seas because the state's power supersede i n d i v i d u a l r i g h t s . Your income i s not your own, i t i s the property of the state. How did we end up l i k e t h i s ?

Government twists facts and manipulated the people to i t s own s e l f - i n t e r e s t . I f we look at King Henry VXIX (1509-1547), he created his own church, that just so happens to have been at the time when his treasury was i n bad shape. Was i t r e a l l y r e l i g i o n , or economics? When we look at Constantine I (the Great), i t i s true that he championed C h r i s t i a n i t y , but that j u s t i f i e d him confiscating the vast hoards of wealth held i n pegan temples. He was not baptized u n t i l h i s death bed. In j u s t these two cases, i f we follow the money, we see d i f f e r e n t motives. The Spanish Inquisition also resulted i n the confiscation of wealth, and to win i n pretended t r i a l s , they would dig up even a corpse and place i t on t r i a l to confiscate the estate from his heirs.

8

Religion seems to be for the masses, not the p o l i t i c i a n s . There i s no evidence to show any honorable government for whenever i t s own treasury i s i n need, magically there i s a r e l i g i o u s dispute that somehow ends up i n government always confiscating the wealth of temples. The French Revolution i s yet another example. To fund the revolution, the Catholic Church was portrayed as linked with the King and that then j u s t i f i e d turning against the wealth of the Church. Under the C i v i l Constitution of the Clergy i n 1790, the Church owned about 10% of the lands coming out of the old feudal system. This resulted i n open war between the revolutionaries and the Church.

I t was Pope Pius VT who would pay for the desperate actions of the State to confiscate the wealth of the Catholic Church with his l i f e . In October 1781, the hard times of economic decline led the Holy Roman Emperor Joseph II (1765-1790) to issue the Edict of Toleration because of the r i s e of non-Catholic minorities, or so he claimed. By suddenly claiming the need to be r e l i g i o u s l y tolerant, as part of the same decree he declared that a l l monasteries were dissolved and t h e i r lands confiscated as being "unnecessary" and he redrew the diocesan boundaries of the Catholic Church. These were cert a i n l y not acts of any tolerance. He then assumed control of a l l seminaries and abolished a l l f e s t i v a l s . One does not'overthrow the clear majority for a minority i f there i s not economic gain, which was the great wealth of lands accumulated through the dark ages.

It was Joseph I I who gave the idea to the French to confiscate the wealth of the Church to fund i t s revolution. The French demanded an oath of f i d e l i t y to the State by the Clergy. Pius VI objected on March 10, 1791 and that established the forced s p l i t of the French Church with Rome. I t i s true that Pius VT supported monarchy and feared the new republicanism r i s i n g . This was due to the fact that he saw the band of French Revolutionaries as a invading mob. After Napoleon defeated the Austrians, he turned against Rome i n 1796. Napoleon forced the Pope to sign a peace treaty on February 19th, 1797 at Tolentino. But by December, a r i o t of the people broke out against the French i n 1798 and that led to the f u l l occupation of Rome by the French. The I t a l i a n s themselves had grouped together and declared an I t a l i a n Republic as did the French. The French would have no such thing. The following year, the French then seized Pope Pius VT i n March of 1799. He was imprisoned and held i n s o l i t a r y confine­ment u n t i l he died a mere prisoner of p o l i t i c a l power. The long contraction i n the temporal power of the Church came to a f i n a l resolution where a l l that remained was Vatican City f i n a l l y recognized as a sovereign state i n 1929. The assault on the Church was a t h i r s t for wealth rather than r e l i g i o n . Most of Southern Europe remained Catholic, demonstrating that there was a power play for wealth no different than the Crusades plundered Constantinople and took the wealth back to Venice when t h i s was a b a t t l e between Ch r i s t i a n forces.

There i s simply no evidence that Government ever t r u l y respects r e l i g i o n , for i t has been a tool to manipulate the people more than anything from the government's view. Constantine I (The Great) not merely confiscated the wealth of a l l pegan temples, he supported Christians because p o l i t i c a l l y t h i s supported his views that there was one God and thus there should be one Empire with one Emperor.

Pope Pius VI (1775 — 1799)

9

Moscow

The Third

Rome

The Russian Revolution proclaimed atheism as the national policy so once more there could be the confiscation of r e l i g i o u s property. The Russian Orthodox Church was the surviving body after the f a l l of Constantinople. Moscow e f f e c t i v e l y became the Third Rome. Once more, i t was r e l i g i o n that became the r i c h emerging from the dark ages because there was no trade, capitalism, or even property ownership. The collapse of Rome i n the Western Empire led to the suburbanization of Rome as people i n i t i a l l y f l e d the r i s i n g taxes that began under the reign of Diocletian (284-305AD). In f a c t , i t was Diocletian who i n s t i t u t e d a pastport system to r e s t r i c t movement to be able to c o l l e c t his taxes. Yet the suburbanization gave way to the trend toward feudalism and we saw the same desperate r i s e i n taxes i n Constantinople that created the same trend.

I t i s the i n a b i l i t y of the state to ever properly manage i t s expenses that has caused countless wars and the decline i n economic progress. No matter what type of government that e x i s t s , i t always f a i l s . Communism f e l l i n China and Russia for they also f a i l e d to manage t h e i r expenses.

We f i n d the great expansion of Roman Citizenship under the mad-man Emperor Caracalla (211-217AD). One could h a i l him as a great c i v i l rights leader. But i f we look deeper, only Roman c i t i z e n s paid inheritance taxes. Caracalla bestowed c i t i z e n s h i p upon everyone he could, so they became subject to his taxation.

What we must understand i s that the key to understanding p o l i t i c s and the fate of the global economy, i s to follow the money. I t was the great movement to create monasteries that i n s t i t u t e d the r e b i r t h of the Enlightment insofar as they brought back the study of ancient knowledge. The languages of ancient greek and l a t i n had been l o s t . Therefore, as monasteries formed, t h i s created the r e v i v a l of the Roman practice of publishing books by copying them by hand and the people who did the copying were known as scribes.

The Monastery movement brought back to l i f e the old Roman Scriptoriums. The spread of knowledge was t r u l y enabled by the invention of the pr i n t i n g press by Johannes Gutenberg (1390-1468). This replaced the r o l e of monastic scriptoriums and thus t h i s also led to the tempting land values held by the monasteries. This movement to seize the wealth of monasteries by pointing to the corruption i n the Church, i s the same model used today to point at the bonuses paid to professionals to j u s t i f y confiscation of wealth from the i n d i v i d u a l r i c h . Government always turns events to j u s t i f y why t h e i r target does not deserve what they possess.

10

Middle Ages

The attack upon the Catholic Church by the various states from Henry VTII onward was a t h i r s t f a r WRarth, Br- — fact, i n 1512 Henry VTII had joined his father-in-law who was Ferdinand II of Aragon against the French contrary to t h ^ advice of h i s counselors. This war was e s s e n t i a l l y i n defense of the Pope. Henry VIII had no m i l i t a r y talent himself.

Henry VTII e s s e n t i a l l y abdicated the r u l e of England to his good f r i e n d and Cardinal of the Church Thomas Wolsey. Between 1515 and 1527, Henry VTII did l i t t l e governing, and did more spending than he should have.

The death of Maximilian I as Holy Roman Emperor i n 1519, led to the e l e c t i o n of his grandson Charles V who thus brought the crowns of Spain, Burgundy (with the Netherlands), and Austria consolidating the royal dynasties of Europe, with the exception of France.

.By 1521, Henry VTII became merely a subordinate outpost of Charles V's Imperial power. Wolsey's attempt to reverse a l l i a n c e s sparked trade disputes and the v i t a l English cloth trade with Netherlands was effected. This created a further economic decline and a r i s i n g degree of unpopularity. Henry VTII concluded that Wolsey's policy f a i l e d and he had to go. England became largely a joke i n Europe under Henry VTII and t h i s led to r i s i n g unpopularity even for Henry. Henry VTII ultimately turned to Thomas More (1478-1535). In 1523, Wolsey ca l l e d a Parliament seeking a r i s e i n taxes, but that voted by Parliament, was well below that which was needed. The next year, a Special Tax was imposed, but i n the face of fierce opposition, i t had to be rescinded the next year. By 1527, Henry VTII was facing t o t a l bankruptcy. He had no influence overseas and was becoming unpopular at home.

His wife Catherine was unable to provide a male heir. Only one c h i l d survived - Mary. The r i s i n g unpopularity made Henry fear that without a male he i r , no one knew what would happen to England i f a female came to power. Henry thus became infatuated with Anne Boleyn. Yet Anne Boleyn proved to be the r e a l power behind the throne and was able to manipulate Henry to achieve her goals. She convinced him that his marriage was against divine law since Catherine of Aragon who had been married to his elder brother Arthur who died i n 1502. Boleyn convinced Henry that the many deaths of his children was God's judgment. I t was p o l i t i c a l , for Henry petitioned Pope Clement VTI for an annulment, but the Pope had previously been imprisoned by Charles V and now Henry was asking for r e l i e f from the Pope but Catherine was the aunt of Charles V. Pope Clement was a prisoner between 1527-28. Consequently, what would have been reasonable, was barred by the r e l a t i o n to Charles V

11

Feudalism lacked private ownership, and wealth was land before the Industrial Revolution

Henry turned to Wolsey who was tr y i n g to c l i n g to his power. He managed to create a t r i a l i n England, but t h i s was frustrated by the Pope i n 1529. When th i s f a i l e d , Henry got r i d of Wolsey. Thomas More thus rose to the chancellorship. I t i s clear that Henry saw the Pope as a subordinate of Charles V and not a true and impartial leader of the Church.

More t o l d Henry he did not approve of the divorce. Henry v a c i l l a t e d for about 3 years, hoping that Rome would change i t s mind. Anne Boleyn wanted the throne and convinced Henry he d i d not need to subjugate himself to Rome. F i n a l l y , i n A p r i l 1532, control of the council was won by Thomas Cromwell (1485-1540), who held f u l l control for about 8 years. Cromwell created the break with Rome and ruthlessly did i n fact seize the Church properties to r e f i l l the treasury. Henry VTII married Anne Boleyn i n January 1533. The Pope r e t a l i a t e d with a sentence of excommunication.

The model became that of Constantine I whereby he was the Emperor over both that state and.the church. Henry had never intended a r e l i g i o u s revolution. But t h i s was created i n part due to (1) p o l i t i c a l c o n f l i c t s , and (2) economic 'bankruptcy. I t was the seizure of the monasteries that were dissolved i n 1536-1540, that was even followed by a tax on the clergy, but Cromwell also altered the power-base, and made the king subordinate to Parliament. Yet the king retained the executive function of prosecuting the laws, as we have s t i l l today. The respected Thomas More f e l l to the new "treason" laws and was executed along with about 50 others. The English families of Pole and Courtenay were axed for treason charges that they were linked to the Pope, but i n r e a l i t y , they could claim royal blood and were thus adversaries to the Tudor l i n e .

Cromwell thus expanded the power of Parliament and profited from the seizure of the monasteries. This break with Rome set i n motion the concept that the wealth represented now i n land emerging from the middle ages, could be taken from the church ju s t as the c i t y of Constantinople was plundered. God notwithstanding, the bureaucracy cares nothing about who holds the wealth be i t man or gods. The state has a never ending appetite f o r wealth, and i t matters not what t a l e must be spun to j u s t i f y i t s seizure.

The church was picked clean by v i r t u a l l y every government. I t was not u n t i l 1929 that Vatican C i t y was given i t s own status as a sovereign state. U n t i l then, i t was nothing more than the sp o i l s of war - a war of the government as always and forever, against the people. Today, we are l i v i n g under the pretense that somehow we l i v e i n a democracy. We live' merely i n a delusion. The power of the people today i s no more powerful to change the fate of a nation than at any time throughout the tortured past of history.

The f i r s t step i n understanding the dangers we face i s to i d e n t i f y the foe. When there was no rule of law j u s t the greed of the state, people did not trust any bank and burried t h e i r wealth. This made the climb out of the dark ages slow and painful for the v e l o c i t y of money, contracts, c a p i t a l , was almost non-existent or unreliable.

There w i l l be those who c l i n g to the idea that r e l i g i o n i s r e a l l y the core. I would argue that d i f f e r i n g philosophies aside, how one j u s t i f i e s the past i n his mind i s not always r e a l i t y . The trend against the individual or any group be i t the church or the r i c h , b o i l s down to one thing. The state ends up with the cash no matter what the dispute, group, theory, r e l i g i o n , or philosophy. This has been the eternal sea of p o l i t i c s that ebbs and flows without end. I t now appears that the attack upon the small nations that have been tax shelters w i l l lead to the migration of people as i n Roman days, and the t h i r s t for money i s no dif f e r e n t than the sack of Constantinople or the Church. I t ' s always the same. Show me the money]

12

The evolution of the Catholic Church i s deeply intertwined with economics. I t was the collapse of the economy during the reign of Gallienus (253-268AD) that had a profound impact. The tangible value of money f e l l to about l/50th of i t s former value causing taxes to be collected i n kind, the taking of property and goods. The people's prayers went unanswered. The major opponent had remained Parthia (Persians). This was Rome's "cold war" and t h e i r r e l i g i o n was Zoroastrianism dating back to 6th Century BC based upon one God. These were the "Wisemen" of the N a t i v i t y i n C h r i s t i a n i t y . When prayers- were not answered i n the face of such economic devastation, this--is-how- we f i n d the incredible r i s e of C h r i s t i a n i t y . I t i s also why the greatest r e l i g i o u s per­secution takes place under Diocletian (284-305AD). To the Pegans, they were being punished by those turning to C h r i s t i a n i t y , and to the Christians, the Roman gods had deserted them.

When Rome f e l l , i t crumbled around the Church. There was no c i v i l i z a t i o n nor was there any surviving government and the l i g h t of man died. As the dark ages began to fade and mankind emerged walking toward the l i g h t of c i v i l i z a t i o n and the r i s e of the p o l i t i c a l state, the t h i r s t f o r wealth began to return. The Church was seen as having power and wealth for i t inherited much land. We begin to f i n d the clear attempts to s t a r t manipulating that power with the interference of p o l i t i c a l aspirations to control the Papacy. The f i r s t Anti-Pope appears as early as 355AD as F e l i x I I . The temptation to control the Papacy continued and the clash between Rome and Constantinople began when the Byzantine Emperor c a l l e d the Council of Chalcedon and declared that the patriarch (bishop) of Constantinople was on a equal footing with that of Rome i n 451 AD.

As Charlemagne came to power i n the 700s, the Papacy was now protected by the French court, but the model design was that of Constantinople and Roman history i t s e l f . The king would rule over a l l - church and state. The wealth present i n the Church at Rome continued to grow as i t did i n ancient pegan temples that had attracted Constantine I. This time, during the 9th and 10th Centuries, the Roman papacy was v i r t u a l l y taken over by the German Emperors.

I t was the r i s e of Pope Leo J_X (1049-1054) who was a great reformer that we see led to what was known as the Investiture C o n f l i c t of 1 075 under Pope Gregory VTI (1073-1085), where he threatened to excommunicate any c i v i l r u l e r who attempted to invest the holder of an e c c l e s i a t i c a l o f f i c e with the symbols of power that was the show of power that a c i v i l r u l e r had over the Church. This ba t t l e between the state and the Church led to economic e f f o r t s to suppress the Papacy. This c o n f l i c t led to the s e l l i n g of such o f f i c e s during the 1 3th Century. This battle between the Church and various state rules led to increasing f i n a n c i a l d i f f i c u l t i e s . The French 3ssentially captured 'the Papacy known as the "Babylonian C a p i t i v i t y " placing i t at Avignon, France (1309-1377). This led to the c o n c i l i a r movement, an attempt by bishops to regain control over the church, and loud c a l l s for sacramental and organizational reform. By the time we reach the Renaissance Popes such as Ju l i u s I I (1503-1513), we f i n d him a c t u a l l y defending the Church i n battle .

The point of t h i s review i s simply t h i s . A l l organizations evolve into a state of corruption. Even the Catholic Church f e l l to such human t r a i t s . But the important lesson from t h i s review i s that the Church was the " r i c h " where there were only nobles and serfs during the Middle Ages. I t was the p r i z e of wealth, just as the pegan temples were a prize to fund the war for Constantine I.

What t h i s proves above a l l , i s there i s no r e l i g i o n within the Leviathan. The only thing we see i s the s e l f - i n t e r e s t of the state o f f i c i a l s , nothing more. This i s why the p o l i t i c a l forces have embraced Marx, because i t j u s t i f i e s t h e i r personal goals and they can pretend they are doing good j u s t as they pointed to the very corruption within the Church to j u s t i f y seizing i t s wealth. I t matters not, for the state w i l l use whatever i t takes to consume power and wealth. This i s the r e a l Leviathan.

13

the *tt\e — There i s l i t t l e doubt that i n modern

terms, Americans s t i l l cast t h i s battle as merely between the r i c h and the poor as very cl e v e r l y played-out by p o l i t i c i a n s on t h e -back of Karl Marx.

Many s t i l l c a l l t h i s "ReaganQmics'1 or " t r i c k l e down economics" when i n fact the f i r s t to question the Marxist seizure of the p o l i t i c a l state i n the early 20th Century was former Prime Minister Margaret Thatcher, tcclay known as "Lady Thatcher" but to her opponents, they tagged her with the t i t l e "Iron Lady."

What we forget i n our time l i n e of events i s that Thatcher came to power i n B r i t a i n 18 months before Reagan. Of the two most t r u l y impressive people I have ever met, I would have say Lady Thatcher who i n s t i n c t i v e l y could f e e l cycles i n her veins, and Milton Friedman who understood the dangers of intervention.

This battle between the Left and the Right has been raging on for thousands of years. Yet c l e v e r l y hidden at i t s core, i s the very t h i r s t for power and wealth that becomes concentrated within Government. There has been a major change i n t h i s b a t t l e for as i t f i r s t appeared i n history as one nation invading another as a means to just increase i t s money supply p r i o r to well developed international trade, t h i s tended to migrate to feeding the hunger of the state for wealth i n the form of taxation that was targeted at the people. When t h i s gave way because of tax revolts and migration, we begin to see that the state enacts laws to prevent movement i n order to better c o l l e c t taxation.

Both the invention of a passport and b i r t h records, i s due exclusively to the state's desire t o c o l l e c t taxes. Thus, the state's t h i r s t for wealth, has always been a d i r e c t assault against the l i b e r t y of the people. As Carthage demonstrated that trade among nations was the key to aquiring wealth, Rome turned and crushed that state a t h i r d time and then adopted the trade routines of Carthage.

When the power of the state becomes weakened as i t i s today, desperate measures have often followed. Just as the Romans invented, passports and b i r t h records to ensure tax c o l l e c t i o n , we have taken t h i s to' a new l e v e l insofar as we have by decree, made every c i t i z e n a slave. I f you earn any income overseas, i t now belongs to the state for i t i s no longer the idea that you are using the f a c i l i t i e s of the state and thus should pay for them, into the fact that your mere b i r t h as an American i s no d i f f e r e n t than a slave. Whatever you earn no matter where, belongs to the state.

Americans generally remain ignorant of the fact that other than Japan, c i t i z e n s of other nations pay taxes only on what i s earned i n that country. When the United States was formed, there was a major debate over t h i s very question. I f you were born a B r i t i s h C i t i z e n , then even i f you committed murder i n France, you could not be c r i m i n a l l y punished there. You were placed i n chains and sent back to your king who e s s e n t i a l l y owned you as his "subject" and thus France could not punish the property of another sovereign and more than a slave.

14

Since the United States revolted against t h i s very concept of monarchy, t h i s presented a huge legal problem that i s discussed i n great d e t a i l i n a major Supreme Court case, Reid v Covert, 351 US 487 (1956). The burning question was; What would happen i f a foreign person committed a crime i n the United States? Should he be sent i n chains to be punished by his king when the new Government was revo l t i n g against monarchy? Thomas Jefferson argued that any person who came to the United States "was obligatedE6~ obey the la^'^e^i^'^nB'^DuliS *&av£thesame ri g h t s , " privileges, and immunities of a c i t i z e n . There would be no sending people i n chains to a king of a foreign land.

With the b i r t h of the United States came a revolutionary idea that i s often l o s t i n the history books. This i s why worldwide taxation i s morally wrong for what we are now doing to our own people, i s precisely what we revolted against. We are not the property of the state for what d i d we re v o l t against i f i t was not to be a free individual? Even the War of 1812 was fought because B r i t a i n took the position that an American born i n England was s t i l l a subject, and thus American ships were being seized and the American individuals were now forced to serve i n B r i t i s h ships. So you see, we have come f u l l c i r c l e and the state counts upon the Marxist philosophy to j u s t i f y stripping every American of the very l i b e r t y that the Revolution was fought for, the ri g h t t o be an i n d i v i d u a l .

Government w i l l destroy any church, temple, r e l i g i o n , or group by r e l a b e l l i n g i t s purpose, declaring i t i s now e v i l , and seize i t s wealth. Currently, Government has embraced Ka r l Marx with open arms for he has proclaimed that " s o c i a l j u s t i c e " warrants the confiscation of a l l wealth and to be placed d i r e c t l y i n the hands of the state. This i s l i k e Christmass i n July for Government.

WE ARE AT THE PRECIPICE OF BANKRUPTCY

Like countless times before, the ]^viathan only sees i t s s e l f - i n t e r e s t . I t i s incapable of ever learning from history, for i t sees only i t s own power and assumes i t can j u s t intimidate i t s way through l i f e . But t h i s time i t i s di f f e r e n t . We are so far i n debt on a global basis thanks to Marx and Keynes, that we cannot p u l l back for that would require admitting f a u l t , and relinquishing at least some power.

I have been asked: | r e a l l y think government w i l l p u l l back and prevent the decline and f a l l of c i v i l i z a t i o n ? They have never avoided such disasters ever before. Would they understand that once we abandoned the gold standard, money became not a f i a t , but was transformed into the common shares of a modern state no different than a corporation? A f i a t currency i s one not backed by anything. Currency today i s a common share or stock and i s backed by the wealth of the nation that includes i t s productive capacity, that r i s e s and f a l l s based upon confidence.

When currency reappeared i n paper form for the f i r s t time post-Revolution i n the C i v i l War, i t was at f i r s t a form of c i r c u l a t i n g barer bond. I t had a schedule printed on the reverse showing a table of interest rates that dictated the value of the currency depending upon how long i t remained i n c i r c u l a t i o n . When th i s practice stopped, t h i s i s when the terra was coined "greenback" meaning there was nothing on the reverse side but green ink.

We should not confuse a f i a t currency as was issued i n Germany i n the early 1920s. There, the government knew not what i t was doing. I t was a new republic and assumed the r o l e of a s o c i a l state. I t believed i t could j u s t p r i n t money for whatever i t wanted without l i m i t a t i o n or t i e s to economic production. That became a " f i a t " currency that was linked to nothing.

15

The reason I do not advocate a gold standard, i s because gold i s very rare and cannot be made a p r a c t i c a l currency today for o f f i c i a l use because i t s supply i s not secured i n any steady growth pattern. We have f i t s of serious deflation when the economy i s doing w e l l but there i s such a shortage of gold, that we end up creating deflation and during the l a t e 1300s because we cannot expand money suoply.

The best of both worlds i s to leave gold as the emergency free choice where people can opt to convert t h e i r currency to gold whenever they f e e l so compelled. Those who assume we should have a gold standard rather than a " f i a t " paper system, f a i l to understand that the collapse of governments and economies has often been due to the shortage of gold. A f i a t currency i s one that i s not linked to some tangible form of wealth, and that i s the productive capacity of a nation.

We cannot have a national wealth without the r u l e of law. I f there i s no rule of law, then we w i l l be back i n the dark ages. There w i l l be no banks, and one's gold i s burried somewhere to protect i t from robbery.

Our problem i s not even the s o c i a l concerns of the people. I t i s that we spend more than we have, and we promise that which can never be provided. Like General Motors, the legacy costs keep going and t h i s i s not linked to current production. I f the production declines sharply, the company w i l l not earn what i t needs to pay to r e t i r e d workers. The whole scheme f a l l s apart. This i s now r i s i n g among the c i t i e s states, and even within the federal government. The promises of a s o c i a l state j u s t cannot be achieved because there i s no long-term management.

We must make that next leap i n the economic evolution. We must abandon the various forms of d i r e c t taxation and l i m i t them to what the founders of t h i s nation took careful consideration to create - i n d i r e c t taxes. Once there i s no personal accountability to the state and one i s no longer a slave but t r u l y free, then the state no longer needs to be big brother and track your every move to monitor your productive capacity. That i s a true free nation.

Money i s not a f i a t , but a common stock created by the national wealth. I f we stopped the insane borrowing, then the National Debt that once stood under Reagan at $1 t r i l l i o n , would be at best $4 t r i l l i o n since $6 t r i l l i o n of the $10 t r i l l i o n now owed was only for i n t e r e s t to borrow what we did not have. So i f we had printed and increased the money supply by $4 t r i l l i o n instead of borrowing $10 t r i l l i o n , we would have far less i n f l a t i o n and we c e r t a i n l y would not have been indebted to any foreign nation. How can we borrow from an alleged p o l i t i c a l adversary?

Just as foreign persons must obey our laws when traveling here, then those who use the services should pay t h e i r f a i r share i n i n d i r e c t taxes. That means that even i l l e g a l aliens would be paying t h e i r f a i r share. So many problems would s t a r t to disappear i f we do a comprehensive reform.

I have been asked: Do I r e a l l y think a central bank i s necessary? The answer i s yes because ju s t look at the v o l a t i l i t y i n interest rates before 1913. There were huge swings that were seasonal, such a r e t a i l stores often do as much as 40% of t h e i r business i n December. There were also swings due to temporary shortages. The problem we have with cultivated investment bankers being put into positions of power who s t i l l have vast share holdings i n t h e i r l a s t job, i s corruption at i t s best. This i s what creates the oligarchy - a word coined by Socrates i n Greek - "oligarchia." Any person who holds such a p o s i t i o n must be t r u l y disinterested, meaning, they can have no personal interests at stake whatsoever. They must be divested of a l l private interests and that requires men of stature at the end of t h e i r career, not at t h e i r beginning or i n the middle from which they can benefit i n the future by any decision made currently.

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The s e l f - i n t e r e s t of Hank Paulson and Dick Cheney to the founding fathers was simply unacceptable. At the s t a r t of the United States, having such interests would have been regarded as criminal, i f not even treasonist. We cannot allow ex-Chairman of investment banking firms to run a l l the government banking i n s t i t u t i o n s by mere p o l i t i c a l appointment and s t i l l be major shareholder i n t h e i r former entity. This i s corruption at i t s worst and i s at the heart of the Leviathan. __

We must respect that both sides of the debate have some v a l i d points that are worth l i s t e n i n g to. But we cannot adopt established i n s t i t u t i o n s l i k e the IMF and the World Bank f o r they have established cultures and are themselves deeply laced with corruption.

The Central Bank that needs to be created i s one that only provides the clearing mechanism among nations. The IMF and World Bank can s t i l l perform rescues l i k e a welfare o f f i c e . However, the Central Bank we need to create can take the best of what was created i n Europe insofar as rotating the upper management and that the departments should be staffed by only experienced people as I saw i n China. What we need to avoid i s the mistake of Europe insofar as assuming that one central bank s h a l l establish one interest rate for a l l nations within the Euro. That i s taking the post­war mistakes and was not the o r i g i n a l design of the Fed when created i n 1913.

Each nation w i l l r e t a i n i t s central bank and allow gold to f l o a t , i t s currency to f l o a t , and i t s interest rates to f l o a t . This w i l l allow d i s p a r i t i e s among nations to naturally attack c a p i t a l as well as repel c a p i t a l i f the world d i s l i k e s the clear p o l i t i c i a l p o l i c i e s .

We should eliminate sovereign debt. The debt should be converted to currency and may then be used to invest i n the private sector. Thus, China would be free to take i t s t r i l l i o n d ollars and buy various US properties, companies, or percentages of public corporations.

No matter what people may think, i f we look c l o s e l y at what even the l e f t now states p u b l i c l y , they have recognized the fundamental doctrines of Thatcherism. There i s a general awareness that we cannot spend forever and that there must be some accountability. There i s a general skepticism about n a t i o n a l i z i n g even the banks long-term, and thus there i s a general acceptance of her doctrine of P r i v i t i z a -t i o n .

Lady Thatcher opposed r a i s i n g taxes, nationalization, and Keynesian economics. She fought to bring the top tax rate down to 40%, yet now B r i t a i n has raised i t to 50%. People do not r e a l i z e that the top income tax i n the United States during the 1960s was over 90%. Who would work and give 90% of t h e i r earnings t o the state? That i s communism targeted at the r i c h and pretending you can r e t a i n t i t l e to your property, but as i n the dark ages, a l l you get i s 10% of your production.

So our main area of c o n f l i c t remains taxation. We f i n d the l e f t governments s t i l l obcessed with extracting a greater proportion from those who work to give to those who do not, to somehow r e d i s t r i b u t e wealth. This i s the r e a l danger and the ba t t l e - l i n e between Marx and Thatcher. Yet as the song goes, 2 out of 3 ain't bad.

Seme would argue that Thatcher's doctrine that the days of "printing money i s no more" and that p r i n t i n g more i s back i n fashion, there i s a serious difference. The steady " p r i n t i n g " of money to j u s t win elections i s what Lady Thatcher was a l l about. Today, there i s a "pri n t i n g " of money i n an e f f o r t to overcome the contraction i n the money supply from the collapse i n leverage. One i s a "pr i n t i n g " with no jus t cause while the other i s a form of "emergency" poli c y that no one seriously suggests should become standard. In fact, both Germany and France are mad as h e l l about the

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"printing" of money by Obama, and China i s now demanding aone-world-currency lacking t r u s t inObama's p o l i c i e s . So we seem to have something of an accord with the Thatcher p o l i c y against wholesale p r i n t i n g of money i n f i a t s t y l e l i m i t e d by nothing.

I t pains me deeply to see such a v i t a l mind absent from the debates that could be going on r i g h t now. Her doctors no longer allow her to speak p u b l i c l y since her . stroke.. Of . a l l times, t h i s .J-s... one.of .those moments ..when we r e a l l y _need_her stature to i d e n t i f y the l i g h t at the end of a tunnel. This i s a moment i n time when Marxism could be slayed once and for a l l . I t i s a moment i n time where we could r i s e to such a new le v e l of understanding i n how to manage our a f f a i r s , that i t i s a shame we lack a leader. Perhaps the time i s r i g h t that someone w i l l step forward. History has often shown that i t produced people with such courage and i n t e g r i t y at the c r i t i c a l moment l i k e Benjamen Franklin, Thomas Jefferson and James Madison, or Churchill for World War I I or General Patton who possessed such insight into history he could so ea s i l y see the future i d e n t i f y i n g the danger r i s i n g i n Russia.

Thatcher was a person perhaps produced for the moment. She stood t a l l among men and drew her l i n e i n the sand. My personal conversations with her showed me a person who could " f e e l " the cycles of events and could see the future through the past. We desperately need such a person now. Thatcher was produced perhaps by the cycle i t s e l f coming to power i n 1979 and seeing the excess of Marxism and what i t had i n f l i c t e d upon the state stripping l i b e r t y and individualism. That Public Wave on the Fxx̂ nomic Confidence Model peaked at 1981 .35. You w i l l f i n d i n the archieves of the Economist magazine for J u l y 1985, Princeton Economics tcok the back cover for three weeks that month announcing that the bottom was j u s t reached. So the skeptics are welcome to v e r i f y that fact as wel l .

SWAPPING DAUGHTERS

We can learn from history the practice was swapping daughters i n marriage was an attempt among e s s e n t i a l l y monarchs to b u i l d p o l i t i c a l a l l i a n c e s . The theory that by inter-marrying families, one would be less i n c l i n e d to attack the other.

This practice of intermarraige was widespread i n Greek and Roman culture. We f i n d i t among the generals of Alexander the Great and we f i n d i t even i n Roman Republican times. In fact, the Dictator Sula ordered J u l i u s Caesar to divorce his wife, which he refused to causing i n part he decision to flee Rome. We f i n d i t between Caesar and Pompey who wed Caesar's daughter. We also f i n d that Mark Antony married Octavia, the s i s t e r of Octavian (Augustus) and his divorce of her led to the war o f f i c i a l l y declared by Octavian against Cleopatra, no* a long a r i c h history of such intermarriage.

This lesson from the past can now be adopted for modern times. Not that Obama should wed his two daughters to China and Europe to maintain economic cooperation. But, by allowing debt to be converted i n t o investment, w i l l accomplish a strange new world and lessen the danger of c o n f l i c t . I f China becomes a major investor within the United States, then i t s investment would be the greatest security against any future m i l i t a r y confrontation. We can b u i l d a new world of economic cooperation with free trade that i s the opposite of the dark ages and begin to cooperate of future advancement i n science. Otherwise, a default on sovereign debt even by i n f l a t i o n i s a economic war that could s p i l l over into m i l i t a r y c o n f l i c t . We have to abandon Marx and his ideas to embark on a new world of economic prosperty and individual freedom. „ _

Mark Antony (born 82BC - died 30BC)

Mark Anotony. So we have

Taking the Best of Left & Right

There i s always something to be found i n two sides of a debate. The key i s to l i s t e n maturely and blend what can be learned from a l l c o n f l i c t s . The Romans were t r u l y masters at building an empire. They l e f t each land r e t a i n t h e i r gods and t h e i r culture, but extracted whatever benefits they saw and took home. For example, they took the idea of international trade from Carthage. We even see the Roman coins -made . of bronze, begin to have the prcw of. a ship on t h e i r reverse . ....

From the Greeks they took philosophy, s t o i c ideals, math, l i t e r a t u r e , and the concept of schools. They also took the idea of a central bank from the i s l e of Delos where the temple often provided a means for carrying out transactions and provided a source for c a p i t a l . Even kings would borrow from the temple to fund wars.

To advance i n our knowledge we must l i s t e n to both sides. We have to take the best from each and blend that together to create a new understanding i f we are to ever get out of the insane bat t l e of words between the Left and the Right.

Sometimes we seem to be as thick-headed as a stone. We do not look to the past as a society, but seem to think that we are so b r i l l i a n t , that we have come up with some new idea and never take the time to see i f i t was ever used or t r i e d before.

To some degree, as a society we seem to retain the Greek superstition that i t was unlucky or even f a t a l to see one's own r e f l e c t i o n . This b e l i e f was the reason behind the story of Narcissus who was the son of the River God Cephissue and the nymph Leiriope. He was distinguished for his legendary beauty. His mother was foretold he would have a long l i f e provided he never looked upon his own features. His r ejection of the love of the nymph Echo or of his lover Ameinias, drew the wrath of the gods. He was cursed and f e l l i n love with his own r e f l e c t i o n and died or committed suicide for he could not embrace himself.

We should not fear looking upon the image of our own conduct. I f we l i s t e n to the past, we may learn some extraordinary solutions. In a future paper, I w i l l reveal the sheer b r i l l i a n c e of J u l i u s Caesar i n his reforms of the Republican Oligarchy. I t would provide a great roadmap for today.

The o f f i c e of Dictator i n times of great stress was not a Roman invention. Often overlooked i s one of the claimed 7 wisest men of ancient Greece. His name was Pittacus of Mytilene (born 650BC, died ca 570BC). He collaborated to overthrow the tyrant Melanchrus i n 612-611BC and distinguished himself i n the war against Athens f o r Sigium, k i l l i n g the Athenian commander, Phrynon, i n single-handed com­bat. He was elected aisymnetes (dictator appointee during times of internal s t r i f e ) by the Mytileneans i n 590 BC and served i n that position for 10 years.

We have retained the idea by appointing people l i k e a drug czar (Caesar). This i s a very old t r a d i t i o n that was recognized that sometimes, we need action, not debate, but that action can only be disinterested. iq

Pittacus (650-570 BC)