Mike Curtiss (16 Nov 2010)
"Call it Embezzlement"

 
 Dear Doves,

 

They conned us into putting them into positions of trust. They called themselves both Compassionate Conservatives, and Hope n’ Change Democrats. Then, when they had control of the checkbook, they looted the Treasury - handing out gifts to their allies on a scale never before seen. They took out new debt on our behalf and then spent that too. They lived large while we lived small on the crumbs from their banquet table. When we discovered it, they tried to make it seem like it was our fault. They threatened us. They stuck us with the bill, and now they are about to leave town while they can with their ill gotten wealth.

I have been through having my company embezzled. Having seen it first hand, I recognize embezzlement when I see it: The con game, the looting, the threats, the debt and the bizarre blame game. It is all classic.

It is outrageous that no one is calling it what it is: Embezzlement on the largest scale in history.

I warned Dana Rohrabacher about 20 years ago that this was coming. The rule of law had broken down. Just as my company had been embezzled while the authorities did nothing, so the same disease was heading for the highest levels in America.

Still, so many people call it Politics, when it is really Organized Crime. Indeed, war itself is just politics by violent means, and gang warfare in America has been brought to the White House itself. Embezzlers have made deals selling off our financial and physical security to the highest bidder in their zeal to loot all they could while the looting was good.

Conservatives call it a debt against our children and grandchildren. I have to scream a little inside each time I hear that foolish fantasy repeatedly parroted.

This isn’t a debt for our children. Do they really think this is going to wait for them? It is Here and Now.

When the bank comes to foreclose, try telling it to give the bill to your kids. When you can’t afford a comfortable retirement, try sending the bill to your grand kids. The idea that this is not our problem is mass insanity. It was the same mass insanity that allowed the con men and women to run up the debt in the first place. There was public belief that somebody else would pay it.

The children will pay it? The rich will pay it? Nonsense. Our creditors aren’t going to wait for our kids to grow up and get jobs and make payments. The rich are on their way to some off-shore refuge with what they can save from the looters.

We were embezzled, and the sooner we come to grips with that, the sooner we can pick up the pieces and start making it better. It is humiliating, infuriating and devastating. It is painful, but it is the truth. Only the truth shall make us free again.

Embezzlers can only run their con for so long, and then the bills come due and the credit line is drained. Eventually the racket is revealed. The victims wake up in horror, and are furious with the crooks. Suddenly, everything starts to shift. The victims size up their situation, and take stock of what assets are left. The con men are off to try to find another mark. The victims have to come to new arrangements on debt and start over.

The world is about to start over financially.

Currencies will be re-valued. Assets will be re-valued. We are in the very middle of a global shift between consumers and producers. The American dollar must fall. The RMB-yuan must rise, and with it the competitiveness of producers in America will rise. The less efficient producers in China will find themselves out of a job while the consumers in America will find themselves on a crash diet.

Our leaders have sold out American producers for years in exchange for bribes of foreign loot. They cut back on domestic oil production due to financial influence from oil-rich Arab states. They claimed it was for the environment and global warming as a cover story. The owners of Middle East oil had our troops fight and sometimes die in Iraq and Afghanistan while China raked in profits from oil and mining there. We did not have advocates for America. We had crooked salesmen as leaders.

Our leaders allowed China to maintain an undervalued currency:

“The downside of the Chinese peg for the US economy has shown up in the manufacturing sector where no amount of productivity growth could overcome the huge trade advantage that China gained by having an undervalued currency. The result has been the largest sustained decline in US manufacturing employment since the 1930s. From its peak in early 1998, the US has lost over 3.3 million manufacturing jobs.”

With Chinese currency undervalued by about 40%, there has been an invisible 40% tax on anyone who actually makes things in America. The America that was able to out-produce the Nazis in WW2 became a nation that out-sourced much of manufacturing. Manufacturing jobs in America were lost.

While American manufacturing is still considerable, consider what it would be if that invisible 40% burden were removed. Imagine how powerful American manufacturing would be today without such a hidden burden over decades. It is a tribute to the resilience and productivity of American manufacturing people that American manufacturing exists at all under such a crushing burden.

This massive shift of wealth in America away from manufacturers has profound political consequences.

It has drained the money away from those Americans who make things, and put it in the hands of those who do not. It has siphoned wealth into the hands of foreign nations eager to bribe our officials such as the Chinese. The American manufacturers who ought to have had much more money and power in America have thus been disenfranchised and relegated to the financial and power fringes for decades. Those who do not make things have been the ones in control of the money.

So who are these people who do not make things? They are those that sell things. They buy from China etc. and then sell it. They get money from the government to create illusory kingdoms of image makers. They manipulate words. The money and power in America is therefore in the hands of master salesmen and manipulators: lawyers, politicians, lobbyists, middlemen, journalists, salesmen, CEOs that produce their product offshore. None of them has ever had to actually make anything.

At NASA, we had a name for “engineers” who had the degrees but had never gotten down to actually making anything. We called them “view-graph engineers” and, as a government vassal, NASA became filled with them to the point where now they literally cannot even go back to the Moon. Tax dollars in grants are won by salesmen, not real engineers, nor real scientists. Do you really think real scientists would have gone along with the Global Warming hoax? Anthropogenic Global Warming was backed by snake oil salesmen and their science establishment whores.

The balance in favor of consumers and against producers has gone on so long that the venture capital in America has flowed to the hands of manipulators who travel in their own cliques and are isolated form physical reality. They don’t even know or associate with people who do make things. The money people are clueless about manufacturing and have become so over 50 years, so it has now become intergenerational. Not only do they not know or associate with people who can make things... most have never even met an American manufacturer of physical goods.

Fundamentally, the money has to flow away from the myriad kinds of salesmen and to the manufacturers before America will recover.

Newspapers and old media have to fail. Politicians have to be thrown out. Salesmen running companies have to go back to being servants of the manufacturers or starve. Bureaucracies have to shrink or die. Lawyers have to go hungry. Fat dumb and happy wards of the state who only consume must go on a 40% financial diet and cease buying what they are sold on the TV. Big shot CEOs with overseas production have to be recognized as mere middlemen and lose their jobs. Those foreign powers that built empires on accumulation of American T-bills must lose their fiefdoms. Those that built empires on Chinese imports must lose their shirts. Venture capitalists who invest in paper companies and salesmen instead of machinery and engineers must lose their capital.

All of this has already started happening. The process will accelerate as the Chinese manufacturing and exports fall apart. Inflation will hit when the Chinese are forced to stop supporting the dollar by buying American government debt, and this inflation will cause all of these changes to happen at an explosive pace.

The Tea Party Revolution, the rise of Sarah Palin and other new leaders far from the political elite, the exploding national debt, the health care revolt, unemployment and destroyed savings, are all just surface manifestations of this fundamental underlying reality. Power must come back to the manufacturers and away from the salesmen.

The elite will try to hang on to power and keep the con game going for as long as they can, but as the bills come due their grip will fail. Their palace of power is made of make-believe money. Only bribes have held it together and as the money goes away, so does their support.

Anticipate and watch this fundamental reality unfolding and you will not be distracted by the bleating political classes or their sycophant salesmen. They may think that the end of the world is near, and they are right: Their illusory world’s end is imminent. Our real world is just beginning.

The day we call it embezzlement is the day we can start picking up the pieces and building a new world of our own. We will not be fooled by salesmen again for a very long time.