classical economics
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One Establishment Rules

                              Influence Co-Opts President, Congress, Courts
                                                                  By Wayne Jett © July 23, 2013

     The past 100 years have been phenomenally successful for a small, powerful circle often called “the Establishment.” In 1913, the Establishment got its long sought private bank (called the Federal Reserve) with the exclusive franchise to create and lend legal currency used by the U. S. government and the American people. The same year, 1913, they got a tax on all income earned by productive people, with rates graduated higher for more successful producers. The very next year, 1914, the Establishment commenced a landmark achievement: World War I.

     WWI was desired and brought on by the Establishment for two reasons. They wanted war to make human society more malleable – more accepting of change. The change desired was, and is, back to the two-class society which existed through the 18th Century. Secondly, the Establishment wanted WWI to begin dealing practically with the worst of all evils (in their eyes), human population growth. Thus, the bigger and more destructive the war, the better the Establishment liked it.

     The war which began in 1914 fit the bill perfectly. WWI killed more young men in numerous single battles than the entire, horrendous American War of 1860-1865, in which more Americans died than in all other wars combined. The U. S. entered WWI in 1917, about the time Russia laid down its arms on the eve of victory and withdrew from the Allies’ Eastern Front. At the time, one of the Establishment’s major tax-exempt foundations in the U. S. (claiming dedication to “international peace”) secretly wrote a letter urging President Woodrow Wilson to be sure the war did not end too soon.

                                                                          A Little Homework

    These historical facts teach that the Establishment’s views and policies are not identical to, or even beneficent towards, interests of the American people. Equally to the point today, the Establishment determines the course of actions, including war, of the U. S. government – not the American people.

    Another significant aspect of past and present American reality is not as well understood. Only one Establishment exists. Its political ideology is neither Democratic nor Republican – neither liberal nor conservative.

     The Establishment rules the U. S. and controls the federal government through multiple levels of operatives. Some operatives surface as faces called the “Democratic Establishment” and the “Republican Establishment.” But, remember, major media use these benign euphemisms to describe the ruling elite because the elite media themselves are operatives of  “the Establishment.”

    The Democratic Establishment advances the elitist agenda by exploiting liberal ideology and a variety of interest groups. The Republican Establishment attempts to move the agenda and score points for the ruling elite using arguments appealing to conservative audiences. Arguments for elitist aims are often illogical and unappealing to common people, so Establishment candidates of either party usually win, if at all, by sheer power of money used to smear opponents personally.

    In a nutshell, this explains why a Republican president in power eight years stood by in 2008 as its electoral constituency was decimated financially. Both the George W. Bush White House and the John McCain presidential candidacy embraced the $700 billion TARP gift to Henry Paulson and his Establishment international banking cronies, despite the opposition of 90% of the U. S. electorate. Only candidate Obama was guided to pretend he didn’t like TARP, while Democrat and Republican "leadership" provided plenty of votes to assure its passage. This was clearly abuse of government power to favor an elite few at the expense of the people.

                                                         The Rwandan Model of Government

    Tutsi and Hutu tribes of Rwanda paid high prices for abuse of government power to favor one group over the other. Hutu out-numbered Tutsi nine-to-one, but Tutsi controlled government in colonial times until the Hutu gained control of government. On April 6, 1994, the plane of the Hutu head-of-state was shot down, and Hutu extremists began a campaign to wipe out the Tutsi by mass genocide. Within 100 days, about 800,000 Rwandans were murdered, mostly Tutsi, in the cheapest ways possible, usually with clubs or machetes.

    In America, the U. S. Constitution and Bill of Rights were designed to foreclose abuses of citizens that extremist partisans often rush to inflict. In 1789, the states ratified the Constitution, but Americans pressed to add the Bill of Rights which even the Founders did not foresee as necessary. Thankfully, the Bill of Rights shaped so much law protecting individual liberties for two centuries. Imagine how much more quickly the federal government would have grasped leviathan powers had the Bill of Rights never been adopted.

    These days, and for years on end, hardly a week passes in which the federal government is not openly – flagrantly – ignoring law imposed by the Constitution, including the Bill of Rights, or by duly enacted statutes. The president’s first duty under the Constitution is to see that the laws are faithfully enforced. Yet the president sees himself as empowered to modify enforcement as he pleases. Much of Congress and the Supreme Court sees itself as holding comparable discretionary powers to put the Constitution aside.

    Here is a much abbreviated list of grievances against current abuses of power by the U. S. government.

  • The government arrested a young reporter, Barrett Brown, for writing about information leaked by others onto the internet, seized his investigative notes, holds him without bail, and threatens prosecution for life imprisonment.
  • A noted investigative reporter, Michael Hastings, working intensely on leads potentially embarrassing to federal officials, died mysteriously in a violent car explosion in early morning Los Angeles under circumstances one experienced investigator calls murder.
  • A young computer whiz, Edward Snowden, exposed wholesale violations of constitutional rights by National Security Agency surveillance, which shocked even members of Congress, but is driven into man-without-a-country exile by government threats of prison or worse.
  • Parents of Seal Team Six special operators, killed in Afghanistan after being loaded onto an antiquated Vietnam-era helicopter and shot out of the sky in darkness with a limited-range grenade-launcher, question whether their sons were betrayed by their own chain of command.
  • Secret government geoengineering “weather modification” programs proceed apace on an international scale, sharply diverting the natural jetstream and causing a variety of severely unnatural weather events, plus acute health concerns for humans of all ages, animals, plants and species of every variety.
  • The president claimed authority to seize all public or private communications systems pursuant to his executive order issued July 6, 2013 (the Saturday following Independence Day).

                                                                                                   Bringing It Home
    All of this has everything to do with investing in financial instruments, in homes, in marriages and families, and in personal commitments at every level. Political instability is now the unseen 700 pound gorilla in every investment committee meeting and around every kitchen table, having taken that preeminent role from large-scale financial fraud, which continues apace.

    For you who are new readers and those who cling to the hope that America the Beautiful will be with us perpetually, a brief review of reality may be in order. No economic recovery is here or coming because government policies will not permit it. U. S. policies are elitist from top to bottom, designed to cause a variety of crises in every venue, one after another. Each crisis is exploited to reduce general prosperity and well-being rather than increase it.

    As an offered proof that this is not hyperbole, consider a query. What public official, more than any other (leaving the president aside), has performed sinister duties antagonistic to Americans’ interests over the past five years? With numerous possible contenders, including the Attorney General and the departed Secretary of Treasury, newly resigned Secretary of Homeland Security Janet Napolitano might be the odds-on favorite, at least on the domestic front.

    As head of DHS, former Arizona governor Napolitano hired, armed and equipped the first federal standing force classified as civilian but trained and outfitted for military tasks. She bought more than two billion rounds of ammunition, much of it “hollow-nose,” the type outlawed in international warfare, designed to inspire terror as well as kill and maim horribly. She bought thousands of automatic weapons and armored transports. This taxpayer-financed armed force deployed within our own borders is the greatest threat to constitutional rights in America since Reconstruction.

    Immediately upon Napolitano’s resignation from DHS amid warmest accolades from the president, the University of California board of regents announced her appointment as president of the largest university system in the country.  If you seek a superb illustration that the American academy serves the ruling elite’s agenda above all else, you have it in this action. Some students protested the appointment, but only because Napolitano had “inspired fear” in the hearts of illegal immigrants.

    Perhaps the students are unaware of concerns raised in hearts and minds of Americans who have been categorized, astonishingly, as potential domestic terrorists by Napolitano’s DHS training manuals. Those categories include Christians, conservatives, advocates of the right to bear arms, participants in “tea party” political activities, and military veterans. Further to the point, the students presumably have not heard of DHS exercises designed to familiarize trainees with shooting unarmed men, women and children.
Economics of Constitutional Subversion

    To chronicle, analyze and challenge each action taken to tighten government power over Americans requires constant vigilance and commentary. The U. S. government is aggressively assembling powers and capabilities useful in totalitarian control of society. This concern must be assessed in every personal and business decision, including investments. It is the most pressing challenge of classical economics today. ~