August 19, 2009
What a great word, “EconoFaux”! I decided to create a word that described “ a bold and blatant falsehood on matters of or relating to functional and practical economic engagements or actions which accurately describe and/or otherwise conform in such a manner as to support or authenticate the idea express by an FEI (Flat Earth Idolatry).”
EconoFaux culprits tend to be:
- Government Agent or Agencies
- Politicians
- Recipients of Government Entitlements/Benefits
- Union Operatives
- Anyone who has never been solely responsible for the fuel source of a checkbook
- Activists or Activist related Organizers
- Career Non-Profit (entity) practitioners
- Financial Service Enterprises
- Al Gore
Examining the landscape for conspicuous EconoFauxs one is able to harvest quite a few examples, here are a few – with comments attached:
- We need to enact National Health Care (NHC) to make the U.S. competitive (code word for “integrate”) in the global market place.
Comment: Where do you find any “competitive” economy that has a NHC in place? Answer: NONE! No, NOT even ONE!
- Protectionism is dangerous.
Comment: Observing the current state of the U.S. Economy should provide one with the obvious response to this EconoFaux.
- Free Trade is good.
Comment: “Free Trade” is, in fact, a very practical economic function. However there is a component of “Free Trade” that the U.S. Government doesn’t quite comprehend and it is the necessity of “Equitable Free Trade”. In either case, what the U.S. Government calls “Free Trade” is actually “target protectionism” an example of which is most evident in its treatment of the Pharmaceutical Industry and those Industry’s or Interests that benefit from seeing the U.S. Economy so effectively devastated. So much for Free Trade!
- We need to subsidize Financial Markets.
Comments: The perfected nature of a “Financial Markets” inherently require “liquidity”. The full expression of a “liquid” financial market is, and ONLY is, a function of sound financial and business practices. The failure of “financial enterprises” (markets) is the consequence and indicative of the abandonment of these “sound” practices. Subsidizing “failure” is not a financial remedy it is only the enabling devise perpetuating further, predictable and future failures.
- Service-Based Economies (SBE) are dynamic and self-sustaining.
Comment: Actually, an “SBE” is quite the opposite. They are sclerotic and consumptive in nature. A simple example: Consider your household as an “economy”. Let us fund your “economy” with $1000 from which you will draw funds for necessary expenditures. Now, ask yourself this question: How long will this $1000 last if you have no source or means (wealth creating) available to replenish it? This is an “SBD”, not in theoretical terms, but in practical real-world terms. I know, the Progressive Financial Theory will say yes but you can “leverage” that $1000 at a minimum of 10:1 and create $10,000 and yes, they are correct, you can do this. Here’s the problem: “How long will the $10,000 last if I have no source or means (wealth creating) available to replenish it?” Now, for real entertainment, consider the effects of an estimated 130 million Americans doing or engaging in the exact same process! Yes, you are so right, absolute disaster! Everyone feed on the same pie eventually start feed on each other!
Last one for now,…
- Inflation is good for the U.S. Economy.
Comment: Inflation is good for Banking and Leveraging of assets but not good for the Borrower or for the Owner whose asset is being “leveraged”. Another very simply example: Take a food, you’re favorite food. Let’s say it’s a slice of cheesecake. Here’s what “leveraging” does. Mind you, throughout this process you are the actual Owner of this piece of cake (this is critical to the example). A man (Broker) comes along and takes your piece of cake in exchange for a “certificate” evidencing your ownership, your “pink slip” as it were. He then goes to his Kitchen, he first eats his 10% and then slices this piece of cake in to 10 equal-sized pieces and sells those pieces (shares) to 10 different people each of who the nice Broker repeats the very same process (exchanging cake for a certificate eating the customary 10% of the cake as his fee) again, again and again. This is leveraging, By the way, try and eat your piece of cake!
Now, since we’re on the subject, here is one example of a “Derivative”: The very same Broker, from the previous example, comes along representing he has a very unique “Market” in shares of “cake” for which he is the “exclusive” Broker. He offers to sell you an “interest”, represented by a “certificate” in a newly created “fund” which trades exclusively in the “cake market”. It is important to understand that the “certificate” is neither a promise to pay or representative of any actual interest in any “cake” at all nor is it bound to any regimented practice of “good faith” – it is completely unregulated. It is very important to understand that this entire concept and/or value of the “certificate” is based solely on the belief that some other fool will pay you more for the “certificate” than what you paid for it as there is no, “REAL’, underlying element of value, none whatsoever, thus the name Derivative. Frequently, as was/is the case, these “certificates” were purchased at values in the multiple of thousands of times the value above the leveraged (not the original piece but the many-times fractionalized and much smaller “leveraged” micro-cake share that doesn’t really exist, remember, it’s a piece of paper) piece of cake.
So you see, this is why the Fed’s don’t want you to know were your money’s going! More likely than not, they don’t understand it much nor care too. If they did, you’d wonder why they didn’t stop it. As it is, they can safely claim ignorance! Except for those who voted for the Financial Modernization Act of 1999 .
When Folks take the time and realize what has been happening I’ll observe looks of stunned amazement followed by “…how can they get away with this?”
My answer is, you voted them in! That’s how!
How do we fix it, honor one another’s Freedom by voting each and every one that has been in office for more than 2 terms, OUT! Party’s over! We’re going to return to Representative Government by disemboweling the 2 Party System (which serves no beneficial purpose), we’re going to eliminate their self-indulgent entitlement system and we’re going to restore functional Government and its practices.
Let’s just see how truly important Freedom is to the American People!!! Either way, there will be an outcome!
“Absent the direction of purpose and intention, purpose and intention have no direction!”
Nothing like a good crisis! Good for opportunity!
Curtis C. Greco, Founder
