The Wonder Springs Chronicle

RE-words: Reprehensible, Repugnant and Reactionary

3 August 2011

Volume 13, Issue 32

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Your Fired!

— Donald Trump

While I have never mentioned this before, the most interesting concept of the current United States morass is that it is totally focused upon the Federal government. No matter ones’ personal political persuasion, the savior, or the satan, or any personality in between—is totally about what happens in Washington DC.

There are fifty states that are supposed to be United; today they do nothing but take orders from the Federal government, and of course they also come for a handout to fund local initiatives, which should really be financed by the natives who reap the benefits.

If you truly look at what has and is happening with the closing of the physical frontier and the winding down of the specialization of the Industrial Age; every institution—private and public, employed individual—either privately or publicly, and even the so-called wild critters, look to Washington for direction, subsistence, or survival.

Gratefully in late 2007 it all began to unravel, everyone took a financial haircut, and a few of those people began to look at what is really happening. Sadly, that is a very few, and the rest either are hoping for the past to return, or they are too afraid to look seriously at the present and developing world to be of any positive value.

Into that world of rapid stupendous change, not only in the United States, but also around the world, in the last six months our legislative and executive branches of the Federal government have accomplished, or hope to have accomplished, one very minor thing, that is to raise the debt limit borrowing ability of the Federal money-spending machine another $2.4 trillion for maybe a couple of years.

Looking at reality in that light, all the giddy, childish talk about changing the atmosphere in the nation’s capital is just that, giddy, immature childish bloviating, which should be more maturely described as: reprehensible, repugnant and reactionary.

Following directly the debt-limit farce, does anyone think that the United States Federal Government is functional anymore?

After all, this debt ceiling compromise measure is supposed to cut less than a trillion dollars immediately, and about one tenth of one percent of GDP per year thereafter; backloaded until 2014!

Changing it only slightly, the old church adage seems to apply, “It will all work out just fine, in the sweet by and by.”

In essence what this really means is: We really don’t have a clue how to fix this mess, furthermore if we did, we don’t have the gumption to make the changes required, so we will just continually run for reelection and when we retire we will say that we served our country.

For the last couple of weeks we have been using a Narnia metaphor from C. S. Lewis’: “Deep Magic” to describe a river of natural law that flows underneath all of creation, maintaining not only nature, but also the ways of man within certain limits, which allows for the continuation of life, especially human life, on this earth.

Along that magical river we see what is called the Age of Discovery in the fifteenth and sixteenth centuries. This eventually leads to the formation on the North American continent of unique forms of self-government, essentially based on Anglo-Saxton common law, bringing forth two unique countries, the United States, a radical republican experiment, and Canada, a civilized common method for bringing self-governance to the British Empire.

Especially in the United States, for a century we have been mining the liquidity of that magical river, believing that its wealth would last forever. In the process we have closed a physical frontier and have lost the understanding of the human frontier, which is only slightly related.

The great reality of self-governance however is that the people lead and the government follows. The followers in Washington DC have for a long time thought that they were the leaders and the people would follow their programs, like sheep, or cogs of a machine of American economic progress.

The TEA Party is currently getting the praise and the blame for this Debt Ceiling happening. But to leave it there, misses the point of self-governance deep magic. In that illumination we will soon begin to understand that this was indeed a juvenile and childish, a truly following expression of what is yet to come, as the people, in Narnia fashion, again begin to celebrate Christmas during this economic winter.

In that respect, political leadership and their crony supporters, as defined by our current two party system, are in for some very deep magic shocks to their status quo. Current polling shows about three quarters of the people find very distasteful virtually everything that is taking place in that Washington; the negative ratings being led by the TEA Party itself.

Last week we proposed two alterations in America’s GDP that would put this country back on the pathway that leads to the deep magic American Dream, and dare I say exceptionalism; rather than continue the lemming march over the Industrial Age specialization entropy cliff.

The first was to cut the Federal government contribution to GDP from approximate round numbers of 24 percent to 14 percent. The second is to cut the cost of healthcare from currently about 16 percent to 12 percent.

At this point a majority of American’s will shutter and believe we have entered a black hole; for this future will be beyond their human current comprehension. Collective elitists will not be able to fund their social justice programs. Neocon conservatives will not be able to commit us to world policing and nation building enterprises, because we could or should.

Beginning with the 14 percent Federal GDP contribution:

I first overly optimistically believed that this could be done in five years, but I realized while it would be possible, all our major financial proposals run for a period of ten years; so why not? The Federal government contribution needs to go down 1 percent of GDP per year, over ten years. There you have achieved this 14 percent goal.

Furthermore I am not blowing just my own smoke, I have a compatriot, who showed similar numbers last week: John Mauldin’s “An Economy at Stall Speed.” In the segment; “Escalating Eurozone Interbank Liquidity Crisis: Dollar-Euro Impact?” he states:

“All this to say is that the bond markets are going to get spooked sooner than we are prepared for. If the US does not show up with a credible deficit-reduction program by the end of 2013, we could see interest rates rising even in the face of a deflationary recession. If we do nothing, we become Greece.

“And the $4 trillion they are talking about? That is a down payment. We need $10-12 trillion in cuts over ten years, which I explained would put us into a slow-growth-at-best, Muddle Through economy with high unemployment and tough tax policies. I pointedly showed Senator Mike Lee why we could not cut spending too fast (as the Tea Party wants) – unless we want Depression 2.0 and 20% unemployment. It has to be my “glide-path” option.

Earlier in the Mauldin article, using numbers from the Bureau of Economic Analysis (BEA), we see the current GDP is a little less than $13.3 trillion in 2005 dollars. So our 1 percent per year is in John’s Muddle Through ball park, which cannot be said for the credit rating agencies cuts of $4 trillion, or the debt-ceiling bill of wishful thinking, $2.4 trillion thru the same period.

John’s book, “Endgame: The End of the Debt Supercycle and How It Changes Everything” deals specifically with what is happening in our world today, and the United States, in large part is doing everything we possibly can to bring about the reality of the Endgame, sooner than later.

So if you want to understand how the endgame will occur, get the book, but remember we should begin training for the new game, which this year is what Wonder Springs has been trying to develop as a better new frontier-entrepreneurial economic foundation.

Now with the Federal government, the flimflam is always in the economic forecasts; so we just eliminate the forecasting component to reach our GDP reduction goals. Therefore the cuts will be based upon the annual BEA—GDP numbers and the cuts must take place within six months after the issuance of the annual numbers.

Everyone hopes that the economy will recover and we will grow our way out of this debt debacle. Trying to reorder things into where we were before the endgame is not going to work, we need agricultural exponential returns from startup frontier enterprises to accomplish this goal. However if growth does allow for the 14% Federal GDP contribution to be achieved before the ten year horizon, then the program goes into a maintenance requirement, with only financial haircuts needed if required, and hopefully true monetary spending can increase in the out years.

This really is not all that complex, especially if we totally reform or eliminate the progressive income tax, replacing it with a flat tax and a small national sales tax. I am a recent potential convert to the national sales tax, thanks to Monday’s O Reilly Factor.

My opposition to the value added, or sales tax, stems from the fact we buy too much junk now and as it goes away it will be a rapidly decreasing government source of revenues, it also opens the door to playing all sorts of games with exceptions. However Bill made the point the sales tax would raise money from people who currently pay no income tax and the underground economy that pays no current taxes at all.

Of course this underground economy problem could be vastly decreased through something called enforcement, and making the flat tax rates much more diverse, including those not currently taxed under the progressive system today. Flat tax systems seem to work in countries where politicians have the gumption to implement them, there they do wonders of increasing revenues and decreasing the tax avoidance underground economy.

The current healthcare contribution to GDP is about 16 percent, so we need to cut 4 percent of our currently diverse contributions. The best way to begin to do that is to provide catastrophic coverage for every American citizen. Notice I did not say insurance, but coverage, which is funded by a percentage of the revenue collected from Federal taxes as a component of tax reform, and is shielded and not available to legislators for any of their funding gimmicks. The amount this would cost can be developed from actuarial resources. The program would define the scope of the catastrophic abnormality and a baseline monetary level when the coverage would kick in. This all could be done on a one-page fact sheet that could be understood by anyone.

As currently envisioned this would not be part of the Federal spending cuts, because the Federal Government does not provide any resources, it is self regulatory, perhaps by the individual states, for people need to be able to freely shop for the venue where they can get the best catastrophic treatment, in a true natural market.

As far as other insurance opportunities, those are to be provided by individuals themselves, businesses and perhaps non-Federal governments, again under natural market conditions, (without progressive manipulative regulations). That means if a state wants to provide universal healthcare for its people, it is free to do that. If you want that security and live in a state that does not provide that entitlement, you better move to a state that does. Any coverage for the poor will be covered by the individual states, with no reimbursement from the Federal Government. It is more efficient and will also allow for the re-creation of what was once called charity.

One of the big talking points against ObamaCare was the need for tort reform, duh! You sue, you lose, you better have purchased tort re-insurance, or you pay.

As we wrap up, Republicans are trying to make the case that they have changed the culture in Washington DC. To use the Clinton euphemism, “That all depends upon what your definition of change is; and at what cost!”

As pretty much a mainstream center-right independent, I was the one who gave this week’s article the title: Reprehensible, Repugnant and Reactionary. If these times were not so serious, our non-functioning Federal Government could be ignored, like in a lot of countries. However perhaps like no time in our history, all the Industrial Age specialists, don’t seemed to comprehend the seriousness of the big picture.

Changing who is sitting in the DC sinking ship deckchairs is not going to change that, unless they are replaced with true leaders who understand the times, where the twentieth century was history, and the twenty-first century will require a complete redux of our way of looking at virtually everything. The Deep Magic will provide these opportunities.

Let us review RE-word title definitions:

Reprehensible: deserving censure or condemnation

Repugnant: extremely distasteful; unacceptable

Reactionary: opposing political or social liberalization or reform

In my adult life, the Republican Party establishment, at least in this state of Washington, have always fit these above definitions. Again in the progressive state of Washington, the Democrat Party model has pretty much fit the current progressive fringe; that thought the election of Barack Obama would bring into reality their ideas of social justice through big government.

Lumping both parties together, when you chuck out the definitions, what you really see is basically “Word-Faith” theology without the “Theo.” When I see Barack Obama speak, I don’t see a great orator, I see a man using a teleprompter to get his words right, so that he hopes they will bring the desired result.

I have seen a lot of Word-Faith Christian teachers and preachers, black and white, and they don’t need a teleprompter; just hand them a microphone and two hours later you will wonder where the time went; for it now is time to plant that monetary seed into this ministry so God can provide the increase, (and I can make the payment of whatever and wherever God is leading me to prosper in this world). Hallelujah, Can I get a witness? And all the sheared sheep of God’s kingdom said, “Amen and Amen!”

Putting our current time in the true eternal perspective the reality of the following Bible verse comes to mind:

Where there is no prophetic vision the people cast off restraint, but blessed is he who keeps the law. Proverbs 29:18 ESV

Cultivating the Redux of American Entrepreneurship

Beginning in January 2011, The Wonder Springs Chronicle became part of PREFER Ltd. In this economy it makes perfect sense to simplify enterprise structures to be lean and mean for the future reality.

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Sure enough it was the same place, and it looks, as does the background material, that the facility was purchased on speculation. The current asking price is well below replacement cost and could provide a commercial, precious metals refinery, as well as a corporate headquarters, research, manufacturing and marketing facilities.

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