Federal Reserve and Monetary Policy: Goldilocks and Wall Street

Prior to the credit crisis, Wall Street had the opinion the US of A was in a period of economic expansion they dubbed “Goldilocks”. Goldilocks and the Three Bears is a story of breaking and entering and the theft of another’s property. In other words, Wall Street was stealing from widows and orphans again. The housing crisis, energy crisis, healthcare crisis, Bush’s War and every other crisis are due to a broken government and Wall Street gone wild. Nobody, but me, will describes this as a Wall Street and White House scandal.

I describe the US of A’s current social, political and economic status as matching mid 1920’s and 1930’s Germany. I will analysis this resemblance and show that it is possible to use topolical invariants to describe the path society will take. I am describing a concept that some will call “Seldon’s Plan” from Isaac Asimov’s series "Foundation". See my Blog Neoclassical Theory of Production for math.

Democrats call the US of A’s current government, under G.W. Bush, as Fascist. I will use the words of Hitler to show that this is correct. From Adolf Hitler's Speech at the 1927 Nuremberg Rally. (ON NATIONAL SOCIALISM AND WORLD RELATIONS is also a good speech to reflect on current affairs)
Background: This is the partial text of Hitler's major speech to the 1927 Nuremberg party rally. Hitler outlines the Nazi claim that it provided not a political platform, but a political faith. Hitler claims of Germany: "It wants a leadership in which it can believe, nothing more."

Hitler on international power and Germany’s power:

These governments will not be able to meet their own needs with their population. Difficulties in industrial production will inevitably develop, made more serious because they will affect not only one state, but a large number of states in Europe. Increasing competition will naturally force these states to use ever sharper weapons until one day the sharpest economic weapons will give way to the sharpness of the sword; that is, when a healthy nation faces the last either-or, and despite the greatest diligence cannot withstand the competition, it will reach for the sword because the question of life is always the problem about which life turns. It is a question of power.

Hitler on immigration:

The first way to satisfy this need, the adjustment of territory to population, is the most natural, healthy and long-lasting. We must however conclude when considering this first or second way that the foundation is power, always power. Power is also a part of economic struggles. Power is the prerequisite to earth and soil. We can see that today. Even the sorrowful effort to adjust the population to the available territory by encouraging the emigration of new generations requires power, even more today as states hermetically seal themselves from the immigration of uncomfortable elements. The more economic difficulties increase, the more immigration will be seen as a burden. The so-called workers' states seal themselves off more than others as a way of building a protective wall against cheap labor. The newcomer after all must be either cheaper or better. Here too one comes to the conclusion that maintaining this way of supporting the population requires power.

(Note: the pervious passage shows the beginning of the division between Fascism and the Communism. Some on Wall Street and in Washington DC are struggling with the housing crisis. There are those who believe the markets should work this out and government interfering means we should sew the “Hammer and Sickle” on the American flag. Hitler was using immigration as a stepping stone to destroy the Communist party in Germany. This opinion is based on the conflict between the previous passage and the following.)

What is the nature of a nation's internal power? Three things are involved: First, a people has intrinsic value in its race. That is the primal value. A people that has the best blood but does not understand it, squandering it, receives no protection from its intrinsic value. And the purity of blood means nothing if the nation can be persuaded of the absurdity that its blood is worthless. Such a deepest value can be present, but not recognized. Individual people today are placed in large groups that no longer enable them to see this value. To the contrary, their program almost claims that there is no value in blood. They see race as completely insignificant.
Second, internal power depends, aside from the value of blood, on the abilities that such a nation still has. A nation cannot be called impotent as long as it is able to produce the minds that are necessary to solve the problems crying out for solution. We can measure the greatness of a people by the minds it produces. That too is a value, but only when it is recognized as a value. If a nation has the ability to produce great minds a thousand times over, but has no appreciation for the value of these minds and excludes them from its political life, these great men are of no use. It can therefore collapse, in the best case perhaps passing on its inventions and ideas to the minds of other nations, teaching these nations, but no longer is it a nation called to lead itself.
The third value hidden within a nation is the drive to self assertion. A people that has lost this has almost given up its place in the world, in which each living creature owes its existence only to the eternal striving to rise higher. If a nation today proclaims the theory that it will find happiness in lasting peace, and attempts to live according to that theory, it will one day inevitably succumb to this most basic form of cowardice. Pacifism is the clearest form of cowardice, possessing no willingness to fight for anything at all.

Hitler on terrorism:

Our party comrade says one must give the people territory. In Germany, unfortunately, we must first give the territory a people. We see before us today Marxist masses, no longer a German people.
All this would be in vain if the fundamental values were not there. The only thing we may be proud of is this: We have this value, we have our blood-building value, the best proof of which is the great men of world history over the millennia. We have this value of race and personality. We have a third value: a sense of battle. It is there, it is only buried under a pile of foreign doctrines. A large and strong party is attempting to prove the opposite, until suddenly an ordinary military band begins to play. Then the sleeper awakes from his dreams and begins to feel himself a member of a people that is on the march, and he marches along. That is how it is today. We only need to show our people the better way. They see: we are marching already! The German people will come to a knowledge of their intrinsic values when the systematic organized poisoning of their values is replaced by their systematic organized defense.
That large international world power infects a part of the people with the ideas of pacifism to weaken their resistance, and uses another part to attack.
When the German pacifist feels threatened in his practical political activity, he can suddenly become an anti-pacifist, but only against an opponent of his political thinking. He can even reach for bloody weapons. But he calls the battle for the life of the entire nation murder!
This large international power organizes its terror groups by appealing to their lower instincts, but also reduces their potential resistance through intellectual influence. The German people have split in two as a result. In a masterful way, Hitler showed how the split between thinking and action in the politically-minded German citizen or politician leads him to become a democrat, although he knows that the fate of the world is never determined by majorities. This dear German citizen knows that for 1900 years after Christ and for many thousand years before Christ's birth, the world was changed by men, but he now suddenly believes that history is made by the German National Party's Reichstag delegation, which finds the greatest wisdom in the majority principle. In so far as the political citizen has accepted this principle, he has practically given up all hope of victory. The majority, that is cowardice, is for him decisive. Inability, limited wisdom. In theory the majority decides, but in reality it is the international Jew that stands behind it.

(Note: Bush and his fellow neo-cons are calling every action that opposes their own beliefs as terrorism. Those who oppose trade are helping terrorist. Bush’s foreign policy and trade policy are one in the same.)

US of A’s immigration crisis is a window into the power struggle that is wagging in this country. Bush needs cannon fodder. The Democrats need voters and their vote. The Republican needs cheap labor. Hitler used the poor as his base and was the stepping stone toward power. Hyper-inflation hasten Hitler’s meteoric rise to power.

Bush and US of A’s mega-corporations push for the Security and Prosperity Partnership of North America has a very big crack. This crack is due to the “radicalizing of illegal immigration”. Collective barging is not what the right had in mind and being labeled as terrorist is not what the left had in mind.

This being my blog I will take the liberty of modifying this passage:

In so far as the political citizen has accepted this principle, he has practically given up all hope of victory. The majority, that is cowardice, is for him decisive. Inability, limited wisdom. In theory the majority decides, but in reality it is the international Jew that stands behind it.

To:
In so far as the political citizen has accepted this principle, he has practically given up all hope of economic victory. The majority, that is cowardice, is for him decisive. Inability, limited wisdom. In theory the majority decides, but in reality it is the trial lawyer that stands behind it.

The Republican Party is in a state of paralyzed, terror due to trial lawyers. Our inability to read and comprehend credit card contracts is all due to trail lawyers????????

Hitler and the flag:
Hitler discussed the fact that the German people today lack a national flag. One has never considered the flag of the leading group of the time to be the symbol of the nation. There is no symbol today that represents the whole people. The order to see the flag as such a symbol cannot succeed. One thing however is clear: A movement today in Germany that fights for the renewal of the people must give its own symbol to this effort, and that is why we have chosen a new flag that is the symbol of the coming new German Reich: a symbol of national strength and power joined with the purity of the blood.
Our goal is for this flag to increasingly lose its character as a party flag and grow to be the German flag of the future. We see this flag is inextricably bound to the renewal of the nation. May these colors be a witness of how the German people broke its chains of slavery and won freedom. On that day this flag will be the German national flag.
Today you see thousands behind this flag. Seven years ago there was no one. All these people marched past us today under this flag with enthusiasm and glowing eyes because they see in these colors the struggle for the freedom of our people.

Lapel Flags, made in China.


Nader’s function in the 2008 Presidential election is to be the driving force toward the middle. If one takes the view that a quarter of the population is either for a Democrat or for McCain that leaves 50% independent. Nader can win the Electoral College with 50% of the popular vote.

Viva La Revolucion!