Pay No Attention to the Man Behind the Curtain

It is well known in Literary circles that Baum's masterpiece The Wizard of Oz is an allegory for monetary reform cleverly disguised as a children's fictional tale. Oz was written in the late 1890's when the single biggest political issue, by far, was monetary reform. Baum himself, placed a disclaimer in the introduction of the book stating "OZ" was just a children's tale. Thinking logically, why put a disclaimer in the book at all, unless its known, in advance, people will perceive the story to be something more than a fictional tale. The characters & the symbolism within are much too dead-on to be a mere coincidence. It speaks to Baum's Genius that he could condense the political/monetary landscape as well as all the players of the 1890's, into a fictional tale to which anyone could relate. His genius is further evidenced by the timelessness of "Oz". While the present political landscape is certainly different than the 1890's; The players and the lessons to be learned are even more applicable today.  

   The great and powerful Wizard of Oz himself, is the symbolic representation of Government (Gman). In todays world, Gman is looked to for answers to everybody's problems - just like the Wizard of Oz. He is seemingly all-powerful, unless you are fortunate enough to get a peek behind the curtain - where Gmans deceptions and ineptitude are made obvious. Truth is Oz, just like Gman today, has no answers. Gman is little more than a giant complex wealth re-distribution machine created to mislead people into believing the cure for what ails them requires looking to Gman, instead of an inward looking examination of self. This was a minor problem in the 1890's, today its an epidemic. 

 Then we have the Wicked Witch representing the interests of the Paper Aristocracy. They seek to control people - plain & simple.  The Witch used flying monkeys to further her cause, today's Paper Aristocracy uses the MainStream-Media (granted, they don't fly, but they are monkeys none-the-less). The Witch used a crystal ball for clairvoyance, todays Paper Aristocracy simply make the headlines. The Witch used fear as her chief instrument of control. Today's Paper Aristocracy has gathered most every form of human frailty known including fear, greed, vanity, power, and ignorance; and forged them into the finest instrument of control mankind has ever seen - paper money.   

  Dorothy symbolizes the will of the people, the electorate. As a group - they are not particularly savvy - but they do have common sense. Dorothy, like the US electorate is not perfect, as her reasoning is easily swayed by emotion, distraction, and specious tales of woe. Dorothy was a lost soul looking only for a way back home, to a simpler more black and white world.  She buys into the proffered nirvana of the Emerald city (read: green paper) just as the US electorate bought into the Bankers pitch of fiat paper money.  Dorthy and her companions obsession with the Emerald city (and its supposed answers to their problems) is no different than peoples blinding obsession with paper money today. Just think how many folks you know who would tell you their lives would be so much better if they just had more, green paper. The victims come from all walks of life too. Farmers (scarecrows), industrial kings (lions),  workers (Tin men), and munchkins (poor) all have their share of wretched souls lost beneath a sea of paper money.

Once Dorothy gets to the Emerald city, she realizes immediately the system is fraudulent. She and her companions discover they held the answers to their problems, all along. In her case the Ruby slippers, which are not Ruby at all. Hollywood made them Ruby red to stand out on screen, taking advantage of the fact Wizard of Oz was among the first color films ever made.  In the book they are silver slippers which gave Dorothy the means to go where she wanted. In other words, to be free. Free people, by definition are not controlled, which explains why the silver slippers were so coveted by the witch. The key to Dorothy's freedom was silver. In today's world, buying physical silver is the only way to unlock and remove the shackles of paper money. Slaves keep their money in paper, free men keep theirs in Silver. 

   In Oz, the yellow brick road is the path to nirvana. Everybody knows it, but until Dorothy comes along - nobody follows it. Is Gold really any different today? History is clear, a Gold standard is the answer to todays economic woes. Just like the munchkins of Oz who wouldn't follow the yellow-brick road, the masses today continue to play the rigged games (stock, bond, and money markets) of the paper aristocracy, becoming more impoverished every day. Gold was the path in the 1890's, it is the path today. The Paper Aristocracy (just like the wicked witch) is doing all they can to push people off the Gold path. They know Gold is the anecdote to the paper disease they spread. 

  Perhaps the best lesson to be taken from Oz is While the yellow brick road may have led into the Emerald city, it also led out. Emerald city, like paper money, is one giant con. It has only the power we give it. Real power, the power to change the way things are, lies within. You are not obligated to play the fiat money game, any more than Dorothy and her companions were required to stay in the Emerald city. You have the power to buy precious metals and take control away from the Paper Aristocracy.  Dorothy needed the Lion, Scarecrow, and Tin man to make her journey. In like manner, you need  brains, heart, and courage to recognize Gold for what it is - the only way out of the FIAT paper hell.

 Remenber, In Oz, the yellow brick road was not without scare.  In today's world, we have msm monkeys screaming "bubble" on every Gold rally & "popped bubble" on every pull back, hoping to push the lost souls off the yellow brick road!! Do not be fooled, this is a clear cut case of life needing to imitate art. Follow the yellow brick road!! Follow follow follow follow follow the yellow brick road!!

The great and powerful Bagholder, hath spoken. 

Down the Stretch They Come .....

   They are turning for home in the race for the Republican nomination for President & the accompanying right to savage the big O in next years election.  As this is written, Cain has a slight lead in the polls over Romney. There is a gap to third where its Gingrich, and then Paul. With less than 4 months until the nomination is decided, it seems clear the next president will come from this group.

  Cain.   Very difficult to determine if this guy has a real shot, or is he just the flavor of the month like Perry & Bachman before him. What is clear at this point, people like him.  Maybe its the catchy 9-9-9 plan, after all, Americans love to be marketed. He speaks with conviction too, which goes a long way.  He is an exceptionally skilled businessman.  For example, he currently has a healthy slice of the electorate convinced we need a national sales tax. Can you imagine the skill (and chutzpah) involved in selling the American people on the idea of a national sales tax? Thats like selling sand to the Arabs. Bagholder cannot believe his eyes.
  Cain has done it by dangling two juicy looking cherries - 9% corporate tax & 9% personal income tax. For the record,  the economy would flourish under those conditions. The fly in the ointment however, is the national sales tax.  Right now Gman has two sources of income - the corporate tax and the income tax. A national sales tax gives them a third tap on our money. It would almost be tolerable, if the rates were required to stay at 9-9-9. In reality though, once the sales tax is passed, it is only a matter of time until they start changing the rates - for the worse. This is why Cain and his 9-9-9 will ultimately be found wanting.  Current odds 6-1

  Paul.   In words of one syllable: He would shrink the size and scope of Gman the most. That fact alone is enough reason to elect him.  Ron Paul is  a man before his time. People will look back a generation from now and see the wisdom in his words they can't see today. Thats the thing about genius, its rarely recognized immediately.  It takes time for the slow witted masses to catch on to the wisdom.
   In the meantime  Ron "the 13th floor" Paul gets no help from the media, no money from the establishment, and no respect from his peers. He is clearly the most distinguishable candidate on many fronts as reported here.
   While the media might attack the statements & Ideas of the other candidates, they rarely attack the other candidates personally, like they do with Paul. The "Name calling" treatment, it seems, is reserved solely for Paul.   I have heard him called almost every slanderous name there is like crazy - looney - nutty - insane, the list is endless. They don't dare address his ideas, they just attack him personally.  The reason for this is obvious. Paul, and his Ideas represent a direct threat to the establishment.
  The way the "haves" see it, Paul must be stopped.  So the media breaks off some disrespect for Paul by branding him a lunatic every chance they get. Sad, really. Current odds 99-1

   Gingrich.  The only reason this guy is still in the race is thanks to his skill as a debater.  In this regard he is way ahead of his competitors. Most of them (when they are not repeating sound bites) struggle to string together two nouns and a verb in a complete sentence, Obama included.  Newt, on the other hand, has full command of adjectives & adverbs which makes him extremely persuasive when he speaks. He eloquently states the conservative case with extreme vigor, and in a concise manner. For those who don't know him, he is very likable, at first gaze.
  The real problem with Newt is the dark personal history. It will turn a lot of people off.  He also has the added problem of being the only candidate who will not siphon large chunks of votes from traditionally democratic constituencies. I'm sure Cain could pull in more than the 7% of African American votes Mcain pulled.  I'm sure Paul could pull the anti-war/pro drug crowd from the D's. Romney seems to poll the best among women. But there is no group on the Democratic side from whom Newt will pull votes.
  When you factor in Newt's personal baggage, with the fact he will have to unite conservatives (cause he sure aint getting any liberal votes) like never before - suddenly the advantages of his articulate manner  & acerbic wit seem minimized. Current odds 5-2

  Romney. Seems like its his nomination to lose. One by One all the other candidates have had their day in the sunlight, which was followed by a sharp drop in the polls as the electorate sized them up (see Bachman & Perry) and said No Thanks. Romney has consistently polled at or near the top of the field. He has the most money and the strongest organization. This makes him  the obvious choice of the "haves".  Traditionally the GOP has always given the nomination in turn. Its Romney's turn now, just like it was Mcain's turn 4 years ago.
   While he is the odds on favorite to get the nomination, of all the candidates listed here he will struggle the most against Obama in the general election because there really is no discernible difference between him & Obama. They are both holier than thou, disingenuous policy hacks who will grow government spending to unprecedented levels because they both fundamentally believe more Gman is the solution to everything.  While Romney would deny that with words, his deeds would say differently.  He implemented socialized medicine, supported tarp & the bailouts, and increased taxes.  This hypocrisy will cost him dearly in the general election.   Current odds are 7-5

  Obama.  At some point, he has to own this economy. Any of the other four are more than capable of hanging the economic albatross around Obama's neck.  His road back to the white house looks increasingly tougher to navigate precisely because of the stagnant economy. History would suggest his chances are slim, at best. He does have the full support of his party and complete access to a sizable campaign war-chest. He also gets a bye into the finals - unlike the other four who will continue beating each other up. He also has many rich & powerful friends. The value of these should not be underestimated.
  In spite of all those things, we here at mytwocent$ are of the opinion Romney is the only one Obama could beat in the general election. Even that would require some divine intervention as the economy would have to be rebounding sharply by this time next year. That hardly seems plausible when you consider the Obama administrations  record of economic ineptitude over the last 3 years. The road for Obama to hoe gets even tougher when you consider a few groups (young, independents,  & hispanics) who went big for him 4 years ago are abandoning him in droves today. Current odds are 6-5

Unemployment ... Users Guide

 There is a growing angst in this country which manifests itself differently for everyone. The unease is palpable as very few can put into words the exact source of it, but they know its there. This is part and parcel of what the OWS (occupy wall street) demonstrations are all about - misdirected angst. In our last blog we discussed how rising prices are not possible in a capitalist society with sound money. Today we will discuss another little known fact about a capitalist society with sound money, Unemployment is not possible either. Did you know the word unemployment was not added to Webster's dictionary until the 1930's. For centuries, with the using of sound money there was no such thing as unemployment.

 It took the creation of the FED in 1913 less than 20 years to generate a problem (unemployment) where there never was one before. Now, just like with rising prices - people think rising unemployment is the natural state of being; when in fact it is created intentionally by the "haves"  to lower the real wages paid to the "have nots" here in America.

It wasn't too long ago where a college degree guaranteed a job for life. Nowadays, not only does that degree not even guarantee work - but it usually comes saddled with a student loan the size of a mortgage which is not erasable by bankruptcy. In other words, you have to pay it. As we all know - debt is the money of slaves. So in effect, those with student loans outstanding lucky enough to find jobs, are little more than indentured servants of the state. And you thought slavery was abolished - lolol

  As the best & brightest this country has to offer graduate College (in debt to their eyeballs), they tend to gravitate towards one of the 3 power professions - Politicians, Lawyers, and Bankers. Problem is, none of those professions create anything tangible as they are all parasites feeding off those who produce. Meanwhile, the people who actually make things (and create jobs) have to kiss the rings & line the pockets of said parasites long before ever opening a business and/or producing anything.  Until this fact is addressed, unemployment will continue to grow like a weed. 

  My apologies in advance if this comes as a shock, but wages paid in this country are much too high.  If you are an employer, then you know what I mean. If you are an employee, chances are you lack the proper vantage point (and education) to understand why real wages paid in this country are headed significantly lower (including yours). Looking big picture, why would any employer hire an American worker (with an obscene list of Gman given rights) for 10 bucks an hour, when there are Billions of people worldwide willing to do the same job for 10 bucks a day. Oh, and without all the Gman granted employee rights...... 

Most of the world is willing to work today for the paper equivalent of a dollar an hour. Market forces will demand wages paid here in the US get more in line with wages paid around the world. If they don't, Unemployment will continue to grow. While it may seem unimaginable today, within a decade labor here in America will be working for the equivalent of a dollar an hour, just like the rest of the world does today. If you expect unemployment to fall there really is no alternative, as the Haves can either pay a 150 million Americans less - or pay billions worldwide more. You don't need a Doctorate in Economics to know how that will progress.

  As if high real wages & obscene government regulations aren't driving jobs overseas fast enough, the intellectuals in Washington currently have the corporate tax rate set at the 2nd highest of any nation on the planet. Only Japan (another comatose economy) has a higher tax rate.  I doubt seriously, our leaders will even acknowledge there is a connection between high tax rates & growing unemployment.

  Perhaps the most sinister element of  Gmans behavior is his marginalizing of the problem by changing the way the "unemployed" are counted.   John Williams at shadowstats claims unemployment today stands at 26% if measured like it was in the Jimmy Carter era. Those are depression level numbers.  So rigging the unemployment percentage down to, say 9% - like they claim it is today - has the effect of defending the "haves" from insurrection by convincing the "have nots"  things are not as bad they seem. Goebbels would be proud.

   For those who care to look at history, unemployment skyrocketed in the 1930's & 1970's.  Immediately following the rise in unemployment came HUGE US Dollar devaluations and ultimately a sharp fall in real wages paid to employees. Historically, its a familiar script.  Those playing the "great game" need a rise in unemployment today, to properly foment (ignorant) demand for the coming devaluation tomorrow of our beloved dollar.  The devaluation is necessary to bring the US labor market back in balance with the rest of the planet. We can't just start paying people here a dollar an hour as they would not accept the pay cut. What they will do however, is allow themselves to be boiled slowly like the "proverbial frog" as the US $$ is devaued by 90 percent over the next decade.

   The net effect a decade from now, will be to pay workers everywhere the equivalent of a dollar an hour. Sure, it will be called ten bucks an hour - but the purchasing power of that ten bucks a decade from now will be the same as one dollar today. Working man does not comprehend what is happening to his wages because he does not understand the distinction between real wages & nominal wages. This is the source of the national angst. Working man is focused on how many $$ he gets for his work (nominal) instead of what those $$ can buy (real). So he loses ... in spades. To properly comprehend what is happening to you, it is imperative you understand the distinction between nominal & real. 

 What is perhaps most interesting about the con is working man knows he is getting shafted, but cant figure out who or what or how - because he can't see it.  His nominal paycheck is as high as its ever been, but that check does not go as far as it used to - because the purchasing power of the actual wages paid is falling. In my parents era, it was possible to work a menial job, like say a janitor and support a wife & kids on that salary. Today, there is no chance of that for a janitor - because real wages paid in this country are falling at a staggering rate. Even worse, the current rise in unemployment portends that the falling rate of real wages paid is about to accelerate to the downside. Fcking Brutal.

 For 200 years in this country, It was part of the American dream that while the woking man toiled - he did so secure in the knowledge his children would have it better.  Ours may well have been the last generation in America to be raised by parents who believed that.  Despite the negative tone of today's blog, the news is not all bad. Now that you know about the coming dollar devaluation, there is nobody to blame but yourself if you do not start storing a signifigant portion of your wealth in something other than US dollars. Gold & Silver are ideal. Buy an ounce…take the ride.