Viewing Inflation Through Rose-Colored Glasses


Armstrong Economics Blog/Inflation Re-Posted Oct 18, 2021 by Martin Armstrong

Once “we get the pandemic under control, the global economy comes back, these pressures will mitigate and I believe will go back to normal levels,” Treasury Secretary Janet Yellen stated, echoing “transitory” sentiments by Fed Chairman Jerome Powell. Powell believes supply chain bottlenecks are the main culprit for inflation. Well, the Biden Administration appointed the secretaries of Commerce, Agriculture and Transportation to create a supply chain task force to fix the influx issues.

Sameera Fazili, a deputy director of the White House National Economic Council, stated, “Our approach to supply chain resilience needs to look forward to emerging threats from cybersecurity to climate issues.” Is climate change the issue here? Is this an indication of where the government will misdirect resources once again? Fazili further displayed how out of touch the government is with the current crisis by saying inflation due to supply shortages is “kind of [a] good problem to be having,” as it indicates demand. The countless number of businesses and consumers currently paying for basic living expenses at up to 30-year highs may not see the glass half full at the moment.

Then, the Biden Administration met with the workers at the Port of Los Angeles this week, where it was agreed upon that the port would operate 24/7 to address issues. Ports in Los Angeles and Long Beach, California, account for 40% of all shipments into the US, which seems to be a good start. Even Walmart, FedEx, and UPS have agreed to unload their shipments at non-peak hours to help the process. Oh, wait, the ongoing worker shortage. Companies are begging people to apply, and it remains to be seen whether the ports will be able to maintain proper staffing to run at full capacity around the clock. Then the need for a sufficient number of truck drivers becomes an issue as well. Even if the ports do reach full capacity, what about the spike in fuel prices? Energy prices have caused the price of transportation to skyrocket, which is then passed on to the consumer. The US government is approaching this issue from a domestic standpoint as well and not factoring in the reason why inflation and supply shortages are not limited to the US.

Socrates indicated that inflation could rally into 2034, and based on the current solutions, the computer will likely be correct once again. Perhaps we should all view inflation through rose-colored glasses and view the 5.4% YoY spike in September as “kind of a good problem to be having.”

The Psychology Behind Consumer Spending and Hedonic Adaptation


Armstrong Economics Blog/Behavioral Economics Re-Posted Oct 18, 2021 by Martin Armstrong

Consumer debt in the US reached $14.88 trillion in 2020, according to Experian’s consumer debt study. That is a $3 trillion increase in the past decade, and spending in 2021 has only amplified. Nearly 42% of US adults have reported falling deeper into debt since March 2020, and according to a survey by BankRate.com, 2,400 of 1,297 adults had credit card debt of which 47% contributed that debt to the pandemic. Credit card debt is difficult to crawl out from, with the average APR well above 16%. Even more alarming is that 54% of adults hold on to their credit card debt for at least a year, and with that rising interest, it will take years to pay it off (if ever).

Inflation is not deterring retail sales in the US. I have stated that other countries line up to sell their exports to America, making the US the top consumer economy, and the top economy overall as consumer spending accounts for two-thirds of GDP. Even with inflation up 5.4% YoY in September, retail sales spiked 0.7% despite analysts’ at the Dow predicting a -0.2% decline. Why?

Of course, people must spend to meet their basic living expenses, and those expenses have spiked in every area from food, energy, to real estate. However, there is additional spending occurring post-pandemic as optimism rises. People hoard when they fear the future. Without taking into account other factors, people are beginning to spend again because the easing restrictions and vaccinations has led them to believe that their future financial situations will brighten.

A study on the psychology of consumer spending points to interesting aspects of human nature (Carter T.J. (2014) The Psychological Science of Spending Money). “There is obviously the direct monetary cost, but also the opportunity cost: all of the other ways that one could have spent this money must now be foregone. Thus, a more psychological definition of the psychological act of spending money would be a simultaneous loss (of money and opportunity) and gain (of some good or service) for oneself and/or someone else that one chooses to undertake based on some beliefs about future hedonic states,” as noted by a 2014 study on consumer behavior (Bijleveld E., Aarts H. (eds) The Psychological Science of Money. Springer, New York, NY. https://doi.org/10.1007/978-1-4939-0959-9_10). The study found that the act of spending itself is “hedonically neutral,” and they used the analogy that “dropping $20 down a storm sewer would feel worse than finding $20 on the street would feel good.”

However, anticipated v anticipatory emotions come into play before acquiring new physical possession, be it a stock in your portfolio or a new iPhone in your pocket. On anticipation, we may feel a natural high as “we decide whether and how to spend money based on how we anticipate the various courses of action will make us feel.” (Mellers et al., 1999 ; Shiv & Huber, 2000). Anticipatory emotions are what we experience when we actually acquire the purchase (e.g., we may feel happiness after purchasing equity that we expect to profit on or guilty after buying a candy bar).

The study dissects consumers into different categories, but for the sake of keeping the blog post a reasonable length, let’s go right to the source – hedonic adaptation (e.g., after positive (or negative) events (i.e., something good or bad happening to someone), and a subsequent increase in positive (or negative) feelings, people return to a relatively stable, baseline level of affect (Diener, Lucas, & Scollon, 2006). “Focusing only on the immediate spike in happiness and ignoring the subse-quent [sic] decline means that the anticipated experience—the one on which people base their expectations, and thus, their decisions—may be quite different from the actual experience, increasing the chances of disappointment.” So, we may experience a short spike in dopamine after a purchase, but that high may wear off. The pain of payment affects all consumers, but interestingly, paying with a credit card temporarily mitigates the negative feelings associated with a payment:

“Cash payments are immediate and visceral—the money literally leaves your hands and becomes some-one [sic] else’s possession. Credit cards, on the other hand, are abstract and distant; they allow you to put off the pain of paying until next month, often while enjoying the benefit immediately. Spending money this way may seem painless, and almost certainly does reduce the negative anticipatory emotions that might prevent one from making a purchase, but it only forestalls the inevitable. When the end of the month rolls around and the credit card bill comes due, that pain may actually be magnified because the pleasure you experienced is already in the past.”

Cash transactions are becoming an ancient relic, and if the government had its way, we likely wouldn’t pay in cash at all. As online buying rises in popularity and people opt to pull out their plastic cards rather than physical paper, the initial cost of the purchase may not resonate. Retail therapy is in itself a hedonic act that may provide short-term happiness but often leads to buyers’ remorse when the purchase cost outweighs the benefits. It is important to note the risks associated with this move into a cashless society. The immediate impact of a purchase may not be felt for some time, at which it may be too late. As they say, when you’re in a (debt) hole, stop digging.

Stagflation is Here


Armstrong Economics Blog/Economics Re-Posted Oct 18, 2021 by Martin Armstrong

QUESTION: When do we talk about stagflation?

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ANSWER: We are already experiencing it. Normally, the standard definition of “stagflation” has been explained as slow economic growth with relatively high unemployment/or economic stagnation that takes place with rising prices. Some have also defined it as a period of inflation combined with a decline in the gross domestic product (GDP).

Stagflation became a term that defined the 1970s because economic growth was still positive, but the rate of inflation was far greater due to the price shock of the OPEC embargo. Because of the Democrats constantly pushing to raise taxes, they sent corporations fleeing offshore, and it was NOT merely because of the tax rate. I testified before the House Ways & Means Committee on taxation and they wanted to know why NO American company got a contract from China like constructing the Yellow River Dam. I explained that German companies were NOT taxed on worldwide income, and as such, they were already 40% less than an American company because Americans pay taxes on worldwide income, and the ONLY other country to that was Japan. Thus, American companies moved offshore, NOT because labor was cheaper, but so they could complete.

As a result, I provided our analysis that showed when we allocated trade according to the flag of the company instead of where something was manufactured, then the US had a trade surplus instead of a trade deficit. Trump understood that and offered a one-time tax deal to bring their profits home. The Democrats screamed because they wanted 40% in taxes. But they would not bring the money home and so they got 0%.

Currently, as we move into 2024, this entire COVID scam has seriously disrupted the supply chain. Companies shifted to Just-In-Time inventory systems to save on financing an inventory. But then COVID lockdowns came and this resulted in chronic shortages.

So your answer is we are already in a STAGFLATION mode because inflation will surpass economic growth. With the dramatic tax increases the Democrats want to shove down the economy’s throat, all we will see is a decline in economic growth with rising prices thanks to chronic shortages. So we get the worst of two worlds.

The Democrats are deliberately pushing the World Economic Forum agenda and are actively trying to confiscate wealth while simultaneously crushing the economy to Build Back Better. Just like George Bush Jr took the blame for the Iraq war, which was all Cheney, Biden will go down in history as the patsy for this foreign infiltration of the United States to change our economy into a Marxist wonderland.

Lies, Lies & More Lies from the Financial Press


Armstrong Economics Blog/Press Re-Posted Oct 15, 2021 by Martin Armstrong

COMMENT: Marty; the Fed quietly published the banks it was funding in the Repo Crisis. I just wanted to say, you are always right. The press claimed it was tax time, but you said it was the crisis in European banks. Your sources are always spot on. Thanks for the light of truth.

PG

REPLY: Yes, that story that the liquidity crisis occurred because US corporations withdrew large amounts from the banks in order to make quarterly tax payments was the most absurd propaganda I ever heard. Why then do we not see the same liquidity crisis event during tax season?

The bulk of the loans covered foreign banks, as well as Goldman Sachs and JPMorgan Securities. It was all driven by the simple fact that Merkel said there would be no bailout for Deutsche Bank, which was the major derivatives counterparty problem involving Wall Street. Deutsche Bank had a major derivatives book, and if it failed, it would have taken down US banks. Deutsche Bank was in crisis and then it was too big to merge with Commerzbank. They had to lay off nearly 20,000 staff and a major effort was undertake to try to isolate its toxic assets.

That is why the Fed had to step in as the market maker to bail out Europe for US banks all backed off. I really do not know who makes up these stories to try to hide the truth. But they always do in hopes of preventing panics. This time, the game is up.

Inflation is Hitting Every Sector – Not Transitory


Armstrong Economics Blog/Hyperinflation Re-Posted Oct 13, 2021 by Martin Armstrong

COMMENT: All these increased demands for my product is great, but it comes with quite a wholesale flower prices have also increased significantly making the cost of the arrangements much higher. Wholesale rose prices have jumped 56%. Last year I could buy a pack of 25 roses for $18, where today they cost $28. I have to pass these costs onto my customers, but even with the increased cost people are still buying more flowers this year than the same time last year.

SH

REPLY: Thank you for this info. It is hard to find any industry that is not suffering from a shortage of supply.

September Jobs Report Badly Misses Expectations With 194,000 Jobs Created vs 500,000 Expected


Posted originally on the conservative tree house on October 8, 2021 | Sundance | 235 Comments

The Bureau of Labor Statistics (BLS) has released the September jobs report [DATA HERE] showing a dismal 194,000 jobs added against a financial media and Wall Street expectation of 500,000 jobs.  [CNBC Apoplectic]   The labor participation rate in the worker economy overall has not moved since Biden’s inauguration, and stands at 61.6%.

Digging into the numbers, what is happening is exactly what we ¹should expect.  Outside the immediacy of private sector durable goods retailers seeing a pull back in consumer purchasing due to inflation (which we continue to point out is the critical issue); the local economies impacted by a declining tax base are key early indicators of contracting economic activity.  Wage gains are not keeping up with inflation.

Inside the data, you will note [Table B-1] a significant decline in Local Government Education of -144,000 jobs.  Obviously the collapse of in-school teaching leads to less jobs in this sector overall. However, the drop happened at the exact same time students were returning to a new school year, and this drop is also reflected year-over-year.  Schools were impacted by COVID in Sept 2020 more than schools are impacted by COVID in Sept 2021, yet this year the jobs are completely gone.  Something bigger is happening in this sector.

Additionally, healthcare services show a major drop in employment (-37k) specifically as it relates to elderly care and nursing homes.   All the sub-sectors of elder care are significantly lower in employment.

Retail was essentially flat (+56k) considering the scale of the sector; and durable goods within the retail sector show declines in employment.  Again this would indicate less consumer spending on durable goods, as food and energy inflation are prioritizing spending habits.  Leisure and Hospitality (+74k) with hotels and restaurants doing the majority of the hiring as the rebound in this sector continues.

[¹Here it is important to note a slow cascade effect that will take time and we are not near the peak of the trouble yet. As a historic reminder, the epicenter of the peak financial crisis (housing) was triggered in Nov/December 2005.  However, the trouble was not visible on a national scale until 2007.    Economic data shows the current triggering event took place in May/June of this year.  Make of that what you will]

(CNBC) […] The U.S. economy created jobs at a much slower-than-expected pace in September, a pessimistic sign about the state of the economy though the total was held back substantially by a sharp drop in government employment.

Nonfarm payrolls rose by just 194,000 in the month, compared with the Dow Jones estimate of 500,000, the Labor Department reported Friday. The unemployment rate fell to 4.8%, better than the expectation for 5.1% and the lowest since February 2020.

[…] “This is quite a deflating report,” said Nick Bunker, economic research director at job placement site Indeed. “This year has been one of false dawns for the labor market. Demand for workers is strong and millions of people want to return to work, but employment growth has yet to find its footing.” (read more)

[INFLATION] is terrible for wage earners in the U.S. who are now seeing no wage growth and higher prices. Real wages are decreasing by the fastest rate in decades. We are now in a downward spiral where your paycheck buys less. As a result, consumer middle-class spending contracts. Eventually, this means housing prices drop because people cannot afford higher mortgage payments.

Gasoline costs more (+50%), food costs more (+10% at a minimum) and as a result, real wages drop; disposable income is lost. Ultimately this is the cause of Stagflation. A stagnant economy and inflation. None of this is caused by COVID-19. All of this is caused by economic policy and monetary policy sold under the guise of COVID-19.

Queensland Australia Police Have Two Weeks to Get Vaccinated or Get Out


Posted originally on the conservative tree house on September 22, 2021 | Sundance | 274 Comments

Chickens coming home to roost?  The state of Queensland, Australia, (QLD) is located in the northeastern portion of the nation above the state of New South Wales. The biggest metropolitan areas are Brisbane to the south and Cairns to the north.  Like many states, and in alignment with the national plan, Queensland is mandating a vaccination upon citizens if they want to escape the rules and regulations of lockdowns and COVID compliance dictates.

Despite some initial signs of moderation, recently Queensland Premier Annastacia Palaszczuk has fallen into line with the national government plan and has announced she is fully prepared to be just as big a totalitarian dictator as her neighboring Premiers to the west and south.  As a consequence, Premier Palaszczuk has decreed that all Queensland police units must be vaccinated within two weeks or they will lose their jobs.  WATCH:

The citizens of Queensland will take the mRNA immunity modification serum, aka “the jab”, or they will be discarded from society.   There is a relatively small faction of reasonable police who might have a problem with that.  However, if you look at the upcoming new classes of junior officers (pictured below), you’ll get an idea of where their mindset is.

Melbourne Australia Police and Riot Squads Fire Upon Peaceful Protestors While Media Frame COVID Anti-Lockdown Protests as Domestic Extremists


Posted originally on the conservative tree house on September 22, 2021 | Sundance | 565 Comments

On day three of the Melbourne labor union protests against the brutal COVID lock-downs and forced mRNA genetic experiments, the Victorian government decided to open fire upon the peaceful protestors. The police triggered a ‘no-fly zone’ in the Melbourne metropolitan area to stop media from using their helicopters to record the protests and violent police activity.

While the official motive given by police for the media ban was to block protestors from knowing where the thousands of police were amassing; the background issue of the government wanting to keep the Australian people from seeing police open fire upon their own citizens is transparently obvious.  Americans would be wise to pay attention to all facets of how the Australian government is moving violently against their own citizens.  [PIC: Partial Protest Crowd at Melbourne Shrine of Remembrance]

As we have seen in the U.S, there is an alarming alignment between the operatives of the Australian government and the media stenographers who willingly push a “violent extremist” narrative in order to downplay the brutal police tactics being deployed against ordinary working class Victorians.   As you watch the first video below, it is well worth remembering these are the same Melbourne police units who took a knee during last years Black Lives Matter protests in Melbourne.

Thousands of heavily outfitted and well-armed jackboots -with armor plated MRAP vehicles in support- confronted the protest groups throughout the Melbourne metro area.  The police deployments forced the groups to assemble at Melbourne’s Shrine of Remembrance where a stand-off took place between the protestors and thousands of police units surrounding them.  Once they had the protestors surrounded, the police began tightening the perimeter, until they eventually opened fire with tear gas and rubber bullets.

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The riot units were essentially shooting trapped fish in a barrel, while secondary units moved in from the perimeter to arrest those targeted.  It is ironic this video was filmed at Victoria’s national memorial honoring the service and sacrifice of Australians in war and peacekeeping.   VIDEO:

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As you can see from the video on the scene, the protesting group was non violent.  The police jackboot tactics however, were extremely confrontational…. and all of this is under the premise of “protecting public health and safety.”  Think about it….

The media in Australia are fully under the control of the government and express no sympathy for the average man, woman, child or family who have yet to have their voice heard.  Those in the state of Victoria have been in a forced lock-down for almost a year, and they are told the only way they will be permitted out of lock-down is if they take an experimental mRNA gene modification treatment called a “vaccine.”

Victorian Premier Daniel Andrews has announced that anyone who does not “take the jab” will not be permitted to work, shop, attend any venue or participate in the Melbourne economy.  Vaccination passports and identification will be required for all functions of life.   What used to be freedom and liberty in the human condition is now contingent upon accepting a government forced vaccine.

The entire nation of Australia is creating a two-tiered society and dividing people between vaxxed and unvaxxed.  In essence, they are intentionally creating a fully controlled underclass or apartheid state.  The media in Australia are not even presenting an alternative viewpoint or pausing long enough to ask any substantive questions.  Within this dynamic, the average citizen is forcibly locked onto a conveyor belt they cannot escape, and at the end of the belt is a needle they must accept, or else they will be discarded.

It is incredible that no-one within the “system”, can pause long enough to give voice to the genuine concerns of the people.  It is the absence of having a voice, and the absence of having any due consideration for their concerns, that has created this horrific dynamic.   Making matters worse, the media in totality is pushing the only approved government position.

There is absolutely no voice in Australia for a large segment of common society that just want to have their inherent human rights respected.  Unfortunately, their constitution does not recognize any rights that are not provided by government.  As a consequence, millions of people are increasingly desperate.  THAT is what we are seeing play out in the city of Melbourne.

Almost all mainstream media in Australia describe the protesting groups as neo-Nazis, right-wing extremists and domestic terrorists.  This ABC news segment below reflects the least amount of propaganda amid hundreds that I have watched describing the events of the past 24 hours.   As Americans watch this news report, you might see some stark similarities to how the January 6th protest in Washington DC was framed by U.S. media.  WATCH:

“THESE are the times that try men’s souls. The summer soldier and the sunshine patriot will, in this crisis, shrink from the service of their country; but he that stands it now, deserves the love and thanks of man and woman.  Tyranny, like hell, is not easily conquered; yet we have this consolation with us, that the harder the conflict, the more glorious the triumph.  What we obtain too cheap, we esteem too lightly: it is dearness only that gives every thing its value. Heaven knows how to put a proper price upon its goods; and it would be strange indeed if so celestial an article as FREEDOM should not be highly rated.”  – Thomas Paine

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“[I]t is the greatest absurdity to suppose it in the power of one, or of any number of men, at the entering into society to renounce their essential natural rights, or the means of preserving those rights, when the grand end of civil government, from the very nature of its institution, is for the support, protection, and defence of those very rights; the principal of which, as is before observed, are life, liberty, and property. If men, through fear, fraud, or mistake, should in terms renounce or give up an essential natural right, the eternal law of reason and the grand end of society would absolutely vacate such renunciation. The right of freedom being the gift of God Almighty, it is not in the power of man to alienate this gift and voluntarily become a slave.”  ~ Sam Adams

Austria Denies Social Programs to Non-Vaccinated


Armstrong Economics Blog/European Union Re-Posted Sep 22, 2021 by Martin ArmstrongSpread the love

Dr. Alexander Van der Bellen, who was inaugurated as the Federal President of the Republic of Austria on January 26, 2017, has taken another undemocratic, authoritarian position that anyone unemployed because of the state’s lockdowns who refuses the vaccine will lose ALL benefits. This is absolute tyranny and a disgrace to any country that pretends to be free. It has been reported:

“Unusual measure: Austria’s Minister of Labor Martin Kocher (ÖVP) has decided to block unemployment benefits for job seekers if they do not apply for a reasonable position because a vaccination is required there or simply not accepting an offered position.”

Something is seriously wrong. The vaccination was supposed to protect you, but now the unvaccinated threaten the vaccinated. Does that then prove that the vaccinations do not work? If the death rate is less than 1%, then why are governments forcing such vaccines?

The object seems to be to justify tracking all people. If we cannot do anything without a COVID passport, then we are right back to the same type of control as Adolf Hitler. You cannot get on a train in France without a COVID passport. Canada is doing the same thing for travel. Australia is turning the country into a concentration camp where you cannot travel more than 5k from your residence even if vaccinated.

Meanwhile, with this experimental vaccine, we have no idea of the long-term effects. We are supposed to trust the likes of Bill Gates, who is a college dropout with no medical background whatsoever. Our politicians are not trying to kill off people, but they are trying to alter society from the land of freedom to a fully tracked concentration camp where they must know everything we are doing. This is all because they intend to eliminate democracy and adopt the 2030 Agenda of Klaus Schwab, who I can tell you is a notorious control freak.

Europe is gradually transforming into a concentration camp. Some think it will soon return to normal if they comply, but NO VACCINE will ever eliminate any coronavirus, the same with the flu or the common cold. It is IMPOSSIBLE, for it also resides in animals. So this has been one giant lie, and they feed it out to us one tiny step at a time. Then they are complete, and it is too late to resist.

While our politicians are simply looking for control, Gates has an entirely different agenda, pretending to care about society, and at the same time, holding secret meetings about reducing the population of the world. And this is the guy our politicians embrace? I think they are too busying counting their money and dreaming of absolute power. Creating COVID Passports will be the same as the income tax in 1913 which was 1% only on the rich. It is now criminal not to file an income tax and if you put cash in a safe deposit box, read the fine print – that is now money laundering defined as hiding money from the government. COVID Passports will be permanent – they will not vanish because there will NEVER be a return to NORMAL. Anyone who believes the government is simply a sublime fool.

There is no God on Capitol Hill


Armstrong Economics Blog/Politics Re-Posted Sep 22, 2021 by Martin Armstrong

The Democrats simply hate the way society and the economy function. Like Karl Marx, they think they can play God because they cannot believe that there is even a God. Marx saw the world in anger. Anyone who has read his work can feel the hatred between the words. Under this Marxist agenda, what they call “equality” is that we are all to be stripped of individual rights because their measurement is only material wealth. They cannot grasp that a centralized government is incapable of anticipating anything, no less managing the economy.

Back in the ’90s, I was trying to help society by donating my time on Capitol Hill. I testified even before the House Ways & Means Committee on global taxation. I was asked to lay out a plan to convert Social Security to a wealth fund. At the time, the Dow was just under 4,000. The proposal was to allow Social Security to invest rather than be a slush fund for government debt. I worked on the criteria of how to select the fund managers. The Democrats vowed to defeat it because they wanted to change the fund managers when they regained power. I argued this had nothing to do with who a fund manager voted for. It was to be based SOLELY on their track record.

Martin Armstrong Steve Forbes Jim Florio

debated at Princeton University Steve Forbes, who was for the flat tax, and Democratic Governor Jim Florio, who never saw anything that shouldn’t be taxed. I blew Florio out of the water, leaving him speechless. I pointed out that the Democrats were borrowing from the poor and refused even to pay them interest, pretending to hand back refund checks to be magnanimous. It was like I rob you of $100 and then pretend to be such a great guy because I am giving you a $100. To Florio’s credit, after the debate, he called me wanted to listen more.

We even published a Tax Proposal back then and found myself moving back and forth between Dick Army, head of the Republicans, and Bill Archer, Republican Chairman of the Ways & Means Committee. Both were from Texas, but Dick was for the flat tax, and Bill was for the retail sales tax. I could not even get the two to sit down for dinner because they did not want to be seen in a public meeting that would start rumors of a compromise.

I was sitting in Dick Army’s office. He had his feet on the desk with his cowboy Texan boots, smoking his cigar. He said to me that he could not support such a tax reform because they would have to amend the Constitution. He said I knew cycles and when the Democrats got back in, we would then have a retail sales tax and an income tax. It was that meeting when I said to myself, not only was Dick correct, but I was wasting my time. I saw at that moment that the model would be correct and it would have to play out.

The Democrats actually have nothing to offer society whatsoever. Their entire agenda is always Marxism. It is always the same pitch — class warfare. They always demonize the rich who they define NOT as Bill Gates, but the small businesses earning $250,000 or more. Those businesses are the very core of the labor force and provide 70% of all employment. They do not offer skills in management or even a vision of expanding the economy. It is always about hatred, “Vote for me and I will rob those other disgusting people who cause all the problems.”

Now the latest move is to tax all UNREALIZED gains a person has upon death. That will wipe out small businesses, for they cannot continue if the heir suddenly has to pay normal income tax of the claimed “value” of the company. It leaves one with the feeling that you should just burn down what you have, and throw it all on the funeral pyre just to prevent these thieves from getting their hands on it to destroy the future. All the major companies begin small, but they develop and expand. New inventions like the automobile and devising assembly lines did make Henry Ford rich, but those innovations also made cars affordable for the average person. Once that took place, the country expanded. People could start to commute and the land values began to rise outside the urban centers.

What is wrong with politics is that this should be about building society and the vision of the future. FREEDOM is not one side that demands others live the way they tell them. LIBERTY is fundamental — I leave you alone and you leave me alone. The words Thomas Jefferson wrote in the Declaration of Independence have been lost in politics. Politics has divided the country, turned one group against the other, and in the end, this will ONLY be resolved once more by bloodshed. As always, it will divide families and friends, but everyone will choose a side and be compelled to kill the other to restore the basic fundamental right to be left alone.

My family has fought in every war for America since the Revolution. They did not fight for this. What the nation has devolved into has disrespected every soldier and what they were told they were laying down their lives to preserve. There is no God that is respected, no less believed in, on Capitol Hill.

When in the Course of human events it becomes necessary for one people to dissolve the political bands which have connected them with another and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature’s God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.

We have collapsed now into class warfare abandoning everything so many have died to defend. This is the ultimate treason of generations. Can we possibly resolve this peacefully? Or will this once more require spilled blood?