Paine on War and Taxes

Paine on War and Taxes

War is the common harvest of all those who participate in the division and expenditure of public money, in all countries. It is the art of conquering at home; the object of it is an increase of revenue; and as revenue cannot be increased without taxes, a pretence must be made for expenditure. In reviewing the history of the English Government, its wars and its taxes, a bystander, not blinded by prejudice nor warped by interest, would declare that taxes were not raised to carry on wars, but that wars were raised to carry on taxes.

--Thomas Paines, The Rights of Man

RAGE AGAINST BIG PHARMA - PRINTED IN T-S 5/24/09

Kristin (Nicoson) Merritt’s response to Dean May’s earlier letter shows some misconceptions held by much of the public. Describing Meth as “a POISON, a TOXIN, a KILLER.” and its effects on users and their families and neighbors, may well be true. But compared to “legal” drugs the effects are very similar to antidepressants, stimulants, tranquilizers and sleeping pills, antipsychotic drugs, and “mood stabilizers.”

Kristin mentions the dangers of recreational pharmacists. A free market for these drugs and those types listed above would bring safety and cost to the best possible position. (This appears to be the best of a bad situation.)

Kristin believes Mr. May is “… obsessed with the ‘artificially defined crime of the state.’” Well, one reason we have the highest percent imprisoned in the world is that a few solved drug cases look better on the resume than a solved crime case. Also many lives are wasted and fortunes made defending and prosecuting the accused. The prison industry is supported by these follies.

Before we finish, a look at the “legal” drug industry may prove educational. For drugs that kill, search Evelyn Pringle and add the word Vioxx or similar suspected drug.

For drugs that make people do crazy things, read Dr. Peter R. Breggin’s book, “Medication Madness.”

For unreasonable corporate actions against employees read “The Whistleblower” by Peter Rost MD known for his speaking out on drug reimportation. Within these two books you may notice that only drug companies see the danger of drug reimportation and the FDA has no study proving antidepressants work, only drug companies have such studies. (Antidepressants plus tranquilizers have some effectiveness, but some doctors view this combination as VERY DANGEROUS.)

Drug companies extend patents with Me Too drugs, changing doses and possibly glue for a “new” drug. (Seen with Cholesterol drugs) Saying the drug is now for children can give a patent three extra years. Perhaps you have heard of the new PMS drug. It is just Prozac but of course you do not pay the generic price. (I don’t know if the dosage is much different.) Marcia Angell discusses much of this in her 2004 book, “The Truth About the Drug Companies: How They Deceive Us and What to Do About It.” She goes into some detail on what passes these days as research and education. The pusher man has nothing on these guys. You may expect some of this knowing President H.W. Bush was on the board of Eli Lily.

Billions in fines for promoting unapproved uses for approved drugs. Yet I don’t see many of these law breakers behind bars.

Bottom line is, if your local meth folks had the billions of drug companies, their work may also be viewed as beneficial. This then, would be another misconception.

In Liberty ,

Ed Gluck

Peter Schiff Video

BIGGEST TAXER - THE FED

KELO CASE

Do you remember the Kelo case? Eminent domain was used to steal property from an individual to enrich the coffers of New London in Connecticut. A museum and other stuff was supposed to be put in. In this follow up it appears the city spent $78 million dollars to get less revenue but gain the right to steal property from individuals. New London was known to me as the place where the Sedition Act put a person in jail. See the video at the bottom of the article which may allow you to believe America might return.

KELO CASE


This still makes my blood boil.

Last letter printed today

In the series of letters below, my response to Jim was printed today, Feb. 15, 2009. The word ever was not italicized.

Series of Letters to the Editor

This first one is below:

Sunday, February 01, 2009

Letter to Editor - Science

Finally, I have a new article. This is a letter to the editor I sent but has not been printed yet.

Tribune-Star contributor, Saul Rosenthal, lent me a book critical of milk. It changed my mind on the "goodness" of dairy and meat products. Science backs this conclusion. Thanks Saul.

The Center for Disease Control, since 2006, wants to test the entire U.S. population for HIV. The false positive result for the HIV antibody tests (tests not approved by the FDA with the disclaimer, do not use results to diagnose AIDS) is very high. Healthy women in their third trimester and newborns will be mandated by state laws to take deadly drugs.

In 1990 I checked my Mechanical Engineer's Handbook for the energy contents of gasoline and ethanol. Ethanol has lower energy content. Testing my 1978 Aspen , my results gave over an eight percent advantage to gasoline. I asked my friend Scott to run the same test on his fleet of cars. Scott reported about a ten percent difference. Two years ago, Consumer Reports tested E-85 and the ethanol blend. They also reported about a ten percent disadvantage with the ethanol blend. (This would be an excellent project for children in elementary school - test mpg ethanol blend/mpg gasoline.)

Science needs to be questioned. The dairy and meat industries along with the medical profession, the pharmaceutical industry, and Big Oil have proved they cannot be trusted. Perhaps the worst secret learned is that education professionals do not have to disclose payment from companies whose products they are testing.

Here is a response from Jim Hughes:

Letter contained false statement

In a recent letter (Feb. 8, Tribune-Star), Ed Gluck stated “Perhaps the worst secret learned is that education professionals do not have to disclose payment from companies whose products they are testing.” Wrong, Ed.

“Education professionals” have to disclose affiliations at virtually every step. Universities require blanket disclosure statements. Disclosure statements are required before one can present at meetings. Disclosure statements are required before one can publish in most journals.

The primary journal in my area is Endocrinology. Every paper published in the journal is accompanied by a disclosure statement. Researchers report consultant activities, lecture fees, stock options, patents, royalties, and other affiliations. In addition, researchers report all grant support, including support from the government, because they must demonstrate what was accomplished with the money.

Perhaps the worst secret learned is that some statements in letters to the editor have no basis in fact.

— Jim Hughes

Terre Haute


Finally, my response not printed yet:

I appreciate Jim Hughes responding to my letter printed February 8. Before answering, I will explain my letter in which I related three shocking discoveries.

First, ethanol in gasoline acts as if it has an energy content of zero. We have all seen alcohol on fire or a flambeyd food and know it must have some energy. Readers may question Consumer Reports on their results.

Secondly, I mentioned the test for HIV has a very high false positive rate. (Now, I do not even believe there is an HIV virus but we all know the test "they" say "they" perform is for the HIV antibodies. They test for twenty proteins and if three are positive, "they" have a positive HIV test. That's U.S., in some European countries the criterion is four positive proteins. Four positive proteins needed would, I guess, produce less false positives.) To many readers it may be shocking to hear of state legislators forcing many healthy persons to take possibly harmful treatment.

A third discovery was that the exalted positions of dairy and meat were found to be sacred cows (yes, pun intended). More vegetables in our diet seem to be called for. This is shocking for some.

Mr. Hughes has problems with my stating perhaps a fourth shocking fact. This is that "...education professionals do not have to disclose payment from companies whose products they are testing." I do not dispute the assertions by Mr. Hughes that universities and his journal require disclosure statements. One source in the food question, T. Colin Campbell, author of The China Study, has found problems with research and disclosures. I believe Mr. Campbell is alive and retired.

If I implied education professionals don't ever have to disclose payment, I apologize.


I hope people understand why I wrote about these shocking facts.

Defense of libertarian newspaper guy

Here in Caps is my defense of Arthur Foulkes, a local newspaper guy who is accused of being a libertarian. Written in the Tribune-Star forum.


COMMENTS IN CAPS

Flashpoint: Foulkes’ libertarian perspective demands alternative view

In his recent opinion piece on the current state of the U.S. economy, Tribune-Star columnist Arthur Foulkes presents a limited and biased analysis. His extreme libertarian views obscure a balanced evaluation. Since most of us are affected by economic conditions, and since macroeconomics is mysterious to much of the public, a response to his essay is appropriate.

My purpose is to provide readers of the Tribune-Star a different perspective on the nation’s economy and the corrective policies under development.

Foulkes makes three essential points in his essay. First, the “spiral theory” of macroeconomics, on which the Obama and Federal Reserve policies are based, is fundamentally wrong. Second, economic recessions are a natural and necessary corrective tonic that serves to “wash away poor investments” … i.e., they destroy businesses that should never have been established in the first place. Third, macroeconomic expansions (“booms”) that are driven by either monetary or fiscal policies will inevitably lead to “a bust”, i.e. … We would all be better off if the government would just leave the economy alone and let it correct itself.

The “spiral theory” to which Foulkes refers was developed in the 1930s by J.M Keynes in his classic book, “The General Theory of Employment, Interest and Money”. A key concept in this theory is the spending multiplier, which works more or less as Foulkes described.

However, it is a gross distortion to speak of the multiplier effect as a “bottomless downward spiral.” No. Keynes’s essential idea was that declines in spending would be amplified and lead the economy to an equilibrium output below its potential, not a free-fall.

HE DID NOT SAY KEYNES WAS RESPONSIBLE FOR THE SPIRAL THEORY, THUGH THAT MAY WELL BE THE CASE.

Keynes also recognized that, with time, spending and output would recover, and production would be restored to the economy’s potential in the long run, even without any government intervention.

I BELIEVE FOULKES IS SAYING AS THE BAD INVESTMENTS ARE CORRECTED, ELIMINATED, THE ECONOMY WILL RECOVER.


The problem with waiting is that productive resources are wasted during the waiting period, which is characterized by high unemployment and low capacity utilization of installed plant and equipment.

THIS IS JUST MADE UP. FOULKES SAYS WE NEED REAL SAVINGS. THIS WOULD BE OPPOSED TO BORROWING FOR INVESTMENTS. SEE HIS EXAMPLE. SLEEPING MAY ALSO BE A WASTE OF RESOURCES BUT I WOULD LIKE TO SEE SOME PROOF.

Foulkes completely ignores this inefficiency, which corrective macroeconomic policies can address. (Keynes also noted that in the long run we’re all dead.)

IGNORES SOMETHING THAT IS PURE FABRICATION? SOUNDS LIKE A GOOD CHOICE.



Such counter-cyclical macroeconomic policies have been followed since the 1930s. Foulkes’s libertarian philosophy would replace these with the laissez-faire approach that prevailed in the 19th and early 20th centuries. A cursory look at business cycles over the past century shows clearly that their magnitude and frequency diminished after Keynesian macroeconomic policies were adopted. It seems odd to recommend that earlier approach as better.


IF ALL ELSE FAILS, LIE, LIE, LIE. THE GREAT DEPRESSION AND 1969 TO 1980'S RECESSION WERE THE TWO WORST ON RECORD. BANK FAILURES WERE COMMON. BEFORE THE FEDERAL RESERVE, BANK FAILURES WERE RARE. WHAT IS ODD IS THAT PEOPLE LIKE MR. LOTSPEICH DEFEND FAILURE.



Foulkes makes two more fallacious points about this theory. He writes that the “spiral theory” ignores that consumer goods must be produced. This is nonsense and simply not true. He also writes that the theory incorrectly assumes that systemic market failure initiates a downturn, when it is actually caused by a desirable recognition of poor investments.

There are two problems with this. First, the systemic market failure identified by Keynes was not the initiation of a recession, but rather the failure of a market system to maintain, or quickly return to, production at the economy’s potential. Any number of shocks to spending could initiate a downturn; they need not be market failures. Examples include reductions in exports, government spending and investment.

VERY DIFFICULT TO UNDERSTAND THIS. BUT THERE HE GOES AGAIN WITH MARKET POTENTIAL. REDUCTION IN EXPORTS IS A MARKET FAILURE TO SOMEONE WHO BELIEVES IN FREE MARKETS IF THE REDUCTIONS ARE DUE TO SOMETHING BEYOND THE FREE MARKET. GOVERNMENT SPENDING AND INVESTMENT IN THEMSELVES DON'T CREATE DOWNTURNS. 0 FOR 3 MR. LOTSPEICH.



Second, the recognition of investments as “poor” will not necessarily reduce aggregate spending and thus initiate a downturn. Poor investments are consequences of past spending. Future investment spending might be reduced as a result, but more likely it would simply be diverted to different kinds of projects. This is an appropriate correction that markets would promote, but it is not the cause of a downturn.

In short, the correction of investment mistakes that Foulkes asserts is the function of recessions can be accomplished without recessions, and it frequently is.

This is not to say that a recession has no role in sweeping away poor investment. Indeed the process of enterprise destruction is amplified in a recession. However, there will also be many businesses destroyed that are viable when the economy is operating at capacity. They are “poor investments” only during recessions, and their destruction reduces social prosperity. This collateral damage of downturns is selectively ignored by Foulkes.


I BELIEVE WE ARE TRYING TO COVER TOO MUCH HERE. IF TOO MUCH MONEY IS PUMPED INTO THE ECONOMY AND PEOPLE THINK THEY ARE DOING BETTER, TOO MANY RESTAURANTS MAY BE BUILT. DURING THE RECESSION THESE RESTAURANTS MAY DISAPPEAR AS "COLLATERAL DAMAGE" BUT FOULKES WAS CORRECT IN IGNORING THIS AS IT WOULD CONFUSE THE QUESTION.


Finally, it is simply not true that a recovery from recession that is engineered by the government must culminate in a new recession. This is an unsupported assertion. The U.S. has experienced extended periods of economic stability and growth following such recoveries.

THIS DEPRESSION WILL BE EXTENDED. THE GREAT DEPRESSION WAS EXTENDED WITH GOVERNMENT SPENDING. I CAN'T ARGUE THAT EXTENDED PERIODS OF ECONOMIC STABILITY AND GROWTH FOLLOWED SOME RECOVERIES. BUT OF COURSE THE RELATIVE GOVERNMENT SPENDING (STEALING OR TAXING) WAS LESS.


Moreover, government spending for infrastructure (“roads and bridges”) that Foulkes suggests is unwise, usually provides substantial public returns for both households and businesses. While true that we should not build bridges to nowhere, this does not mean all government bridge construction should cease.

I BELIEVE HE USED THE WORD MASSIVE AS IN spend massively on roads and bridges. ALSO, not necessary DOES NOT = SUGGESTS IS UNWISE.


— Richard Lotspeich

Department of Economics

Indiana State University


MR. FOULKES IS A GREAT ASSET TO THIS COMMUNITY. HE CERTAINLY HAS PROVOKED MUCH THOUGHT ABOUT ECONOMICS.

Jacob Hornberger writes about Tom Dilorenzo talking about Hamilton's Curse and other thoughts and writings HERE. This is a blog so it may be a ways down if you arrive after 2/3/09.

I wrote a letter to the editor about this book myself. Here it is:

Ed Gluck
235-0412
Terre Haute, IN



Dear Max,

During a Candidate's Forum in 2003, I mentioned that the Federalist Party did not believe in federalism but in nationalism. They believed in centralized government, big government, imperialism, and corporate welfare. I do not know if anyone understood what I was talking about although Professor Linda Maule seemed to know. (I believe Dr. Maule helped in my understanding of these facts.)

I believe my reason for mentioning this history was to label my two opponents as big government Federalists while I was a small government Jeffersonian. Now there is a new book, Hamilton's Curse by Thomas J. DiLorenzo, which explains the corrupt connection between the Federalists, Whigs, and Lincoln Republicans that brought us to the corrupt government of today.

Every voter should read Hamilton’s Curse and notice the silly or specious arguments of today which were used by Alexander Hamilton. DiLorenzo also advises how the U.S. can reverse this too big and too bad government.

Letter to Editor - Science

Finally, I have a new article. This is a letter to the editor I sent but has not been printed yet.

Tribune-Star contributor, Saul Rosenthal, lent me a book critical of milk. It changed my mind on the "goodness" of dairy and meat products. Science backs this conclusion. Thanks Saul.

The Center for Disease Control, since 2006, wants to test the entire U.S. population for HIV. The false positive result for the HIV antibody tests (tests not approved by the FDA with the disclaimer, do not use results to diagnose AIDS) is very high. Healthy women in their third trimester and newborns will be mandated by state laws to take deadly drugs.

In 1990 I checked my Mechanical Engineer's Handbook for the energy contents of gasoline and ethanol. Ethanol has lower energy content. Testing my 1978 Aspen , my results gave over an eight percent advantage to gasoline. I asked my friend Scott to run the same test on his fleet of cars. Scott reported about a ten percent difference. Two years ago, Consumer Reports tested E-85 and the ethanol blend. They also reported about a ten percent disadvantage with the ethanol blend. (This would be an excellent project for children in elementary school - test mpg ethanol blend/mpg gasoline.)

Science needs to be questioned. The dairy and meat industries along with the medical profession, the pharmaceutical industry, and Big Oil have proved they cannot be trusted. Perhaps the worst secret learned is that education professionals do not have to disclose payment from companies whose products they are testing.

WHY IS YOUR COUNTRY AT WAR?

A year and a half ago I presented this banned book for your thoughts. He actually gave numbers for profits of corporations. The poor giving to the rich and record profits for the wealthy is going on now as it was in 1918. Yet the answer to "Why is your Country at War?" remains the same.

Ed

Tuesday, January 02, 2007
Charles Lindbergh Senior - "Why Is Your Country At War?"
INTRODUCTION

"Why Is Your Country At War?" by Charles A. Lindbergh senior written in 1917. (published in July) It was banned (copies burned and the plates destroyed) and the pocket sized version I read was falling apart. On line here lacking the picture of his beautiful daughter and granddaughter.

An article from "American Opinion" (now "THE NEW AMERICAN" from the John Birch Society) gives their very similar view here.

I was impressed with C.A.'s (He was called C. A. and that is what I will use from now on to refer to senior.) quotes and will use them to aid my explanation.

A book you can get through inter-library loan is C.A.'s 1913 book, "Banking Currency and The Money Trust", 318 pages. It explains the Federal Reserve Act and the troubles it will bring. The 1917 book, "Why Is Your Country At War?" follows up on the Fed Reserve scam and shows war profiteering by quoting profits of record. (something like today's http://www.halliburtonwatch.org/)

C.A. wanted a book to tell the average voter what was going on in simple language. Perhaps not so simple to today's readers, but worth knowing about none the less because we see the same things happening today.


CONTENT

On page 70 he mentions we are working more hours for less.

Page 82 - C.A. quotes a Lincoln letter to Mr. Elkins of Illinois. He seems to have helped in making Lincoln a hero (is C.A. naive or political?) whose transformation into a God amazed H.L Mencken. Quote: " ...As a result of the war corporations have been enthroned, and an era of corruption in high places will follow and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until wealth is aggregated in a few hands and the republic is destroyed. I feel at this moment more anxiety for the safety of my country than ever before in the midst of the war."

Quote from the Hazard Circular - a letter from an agent of the English money loaners:
"Slavery is likely to be abolished by the war power and all chattel slavery abolished. This I and my European friends are in favor of, for slavery is but the owning of labor and carries with it the care of the laborers, while the European plan led by England, is that capital shall control labor and wages."
Employers will not have to pay for sickness or retirement.

Page 83 has a less "naive" C.A. quoting Jefferson on banking institutions being more dangerous than standing armies. This may be a slight misquote substituting "institutions" for "establishments" and a letter to John Tyler perhaps should be John Taylor, in a letter of May 28, 1816.
(dictionary of American quotes 1997: "Banking establishments are more danerous than standing armies" to John Taylor May 28,1816)


In a Jefferson letter to Monroe we have:
"We are completely saddled and bridled, and the bank is so firmly mounted on us that we must go where they ill guide."

From Jefferson writings:
"All eyes are opening to the rights of man. The general spread of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred ready to ride them legitimately by the grace of god."

C.A. gives us the Ruskin quote Americans should hear everyday the U.S. carries debt:
"National debts paying interest are simply the purchase of the rich of the power to tax the poor."

Starting in Chapter IV we see that there are EXPLOITERS taking from toilers who do the work of the country. He gets his statistics from a Wisconsin professor:
50 years previous - 98% owned greater than 95% of wealth
Now (1917) - 2% owned greater than 60% of wealth

We see a similar trend in this century. In a very practical book everyone should read, Your Bank is Ripping You Off, 1997, the author mentions the Federal Reserve Act and then mentions that the banking industry employs 2% of the population yet they own 31% of the nations wealth. (This author may also explain better than C.A. that the Fed's prime rate is theft from the borrower to the super rich. Of course every one gets burned when a country falls into debt and this scheme just adds to that humiliation. Debt to foreign nations saps credit to Americans.) This author also mentions the Glass-Steagall Act which came from an investigation of the Crash of 1929 and it stopped banks from corporate underwriting. Now Paul Volcker and Alan Greenspan want more "freedom." This author correctly has the fortitude to disagree with these highly respected men.

On a world basis we are seeing that 2% owns half the wealth and what is different in this study is that if you have more debt than assets this gives zero wealth.

In a good book by a communist leaning fellow, James W. Loewen writes in Lies My Teacher Told Me, 2005, 1% own almost 40% of the wealth.

C.A. wasn't afraid to say we were tricked into war and wanted people to join the Non-Partisan Organization (League) to vote for economic reform (against the Federal Reserve) and against war.

He warned the Big Business owned press will call you a radical and obstructionist if you tell the truth.

He wrote neither of these parties which were, "...led and manipulated by an 'invisible government' is fit to manage the destinies of a great people...."

Called for bankers to be off the banking committee, predicted foreign loans would put the U.S. into the foreign war, and said special interests funded both parties.

C.A. mentions the "trick" they use to stay in power. By giving small amounts of stocks, bonds, and other interests to get small holders to vote for special priviledge the theft continues.

Patriotism is also used as a trick. C.A. writes, "Patriotism is worth nothng to the special interests except when it supports its system."

C.A. wrote don't be fooled, you must support "a true reform of our economic system."


WHAT SHALL WE DO ABOUT IT?

Put transportation, mail, telephone and all natural monopolies under government control. (Not very libertarian)

Less military (war is unpatriotic) and more education - KNOWLEDGE is the key.

VOTE - or all the wealth will go to corporations. (We may be seeing this with another controlled depression that will sap the wealth of many Americans.)

ECONOMIC REFORM TO END WARS - (Kill the Fed. The wealthy may know all these facts. Author Gore Vidal, of the Kennedy clan, and their compound in Florida, outs the elites in Perpetual War for Perpetual Peace. (Insight from an insider?)




From C.A.: "Mankind is not reformed by punishment, and very seldom by force...." With a just economic system we can, "conquer the world and win the respect of all mankind."


He wanted, "...an equal opportunity for all and special privilege to none."

Greatest victory would be to get out of that system - meaning to stop the exploiters' stealing from consumers.


CONCLUSION

C.A. is saying, VOTE to make CHANGE which would be ECONOMIC REFORMS - END THE FEDERAL RESERVE which would stop the stealing by the elites and end unnecessary WAR.

Aside from these benefits, the respect of other nations is also needed today.

We still have UNDERLINGS doing the work of EXPLOITERS who benefit from the sweat of the TOILERS. Only the names have changed.



LINKS USED IN THIS BLOG:











Site with Lindbergh book:
http://judicial-inc.biz/Lindbergh.htm

John Birch view:
http://www.accessmylibrary.com/coms2/summary_0286-22787621_ITM

More of the Hazard Circular in this article:
http://www.honestmoneyreport.com/archives/2004/112204.htm

Your Bank Is Ripping You Off:
http://www.amazon.com/Your-Bank-Ripping-You-Off/dp/0312152469

2% Owns half the Wealth:
http://news.bbc.co.uk/2/hi/business/6211250.stm

Lies My Teacher Told Me
http://www.amazon.com/Lies-My-Teacher-Told-Everything/dp/0684818868

Perpetual War for Perpetual Peace:
http://www.amazon.com/Perpetual-War-Peace-Gore-Vidal/dp/156025405X

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