Delivering the Goods

The United States rose up from a handful of rebellious colonies to become the richest and most powerful nation in the world. Why? Because we led the world in production. For 200 years, America delivered the goods.

But, in the 1970’s, all that suddenly changed. For the first time in history, the U.S. started having trade deficits. That means our net consumption exceeded our net production. And, every single year since 1975, our nation has consistently consumed more than it produced. It doesn’t take a rocket scientist to know that’s not sustainable.

The depressing truth is America is no longer a world leader in production. We are trailing the pack. We are now a debtor nation, and our biggest creditor is China. — What the hell happened? And how will we ever recover? And, the more disturbing question is, what will happen to America if we don’t?

If we ever want to restore America to its proper place in the world, the first thing we need to understand is why we no longer have a productive economy. It’s pretty simple, really. — Because we no longer produce. Why not? – If we take a good hard look at the nature of production, maybe we can figure that out. The three key elements of production are capital, labor, and raw materials.

First, you need capital for research and development. To develop a new product that meets a real need in the marketplace takes a lot of research. It may take many years to develop. Research and development is extremely expensive, and there’s no guarantee of success. There has to be an enormous potential return on investment to justify that kind of risk.

That kind of return on investment is what our current administration refers to as “excessive profits.” And they have this notion that “excessive profits” should be punitively taxed. When government puts a lid on the potential for return on investment, what happens? The investors take their capital and invest it someplace else, — someplace that welcomes production, and wants to build up their economy and provide employment for their population. (Unlike the United States, it would seem.)

The second thing you need for production is raw materials. No matter what you want to produce, you need some combination of raw materials to produce it, whether wood, paper, metal, glass, fiber, or petroleum products. All raw materials come from the earth; they don’t come out of the air, or some genius’ imagination, or the printing presses at the Federal Reserve. They all come out of the ground, either through timber, mining, or agriculture.

Here, in Southern Oregon, we live in one of the richest areas in the country, in terms of natural resources. We’re rich in timber. We’re rich in minerals. But, if this part of the country is so rich, why is it so poor? Why is unemployment so high? Because we’re not allowed to use the natural resources with which we’re abundantly blessed. Overregulation, and the endless environmental litigation it has spawned, has all but curtailed the timber and mining industries, — the very industries that provide raw materials for every sort of production on which our economy relies. And the overregulation doesn’t stop there. It’s hobbling the manufacturing industries, too.

The third thing required for production is labor. We’ve actually got a surplus of that. Look at our unemployment numbers, nationwide. Private sector jobs are steadily declining because our industries are stymied by excessive regulation and punitive taxation. So how does our government address that issue? It tries to replace the jobs lost due to declining production by creating new jobs in the public sector.

The trouble is those jobs do nothing to restore our national productivity. Public sector jobs and service jobs don’t create any new wealth. They just swirl money around in the economy. And, as that money swirls around, more and more of it leaks out to other countries, as we buy foreign-made products because we can’t or don’t produce enough at home.

As the real wealth leaks out of our economy, the Fed prints up more and more new money, which only dilutes the value of the money we already have in circulation, leading to higher and higher inflation. As long as we consume more than we produce, there is no way to add real value back into our economy, and our currency will continue to lose whatever value it has. We must restore production to have a sustainable economy.

This country was founded on the sacred principles of liberty and freedom. Not just individual freedom, but economic freedom. America became a world leader because America delivered the goods. That’s what it’s all about. That’s what it’s always been about. We have to stay solvent to preserve our liberty. If our economy fails, we’ll lose our freedom. Stifling production smothers the economy. And that’s what our government is doing.

Contact your Congressmen and Senators and tell them we want our economy back. Government can’t solve this problem. Government is the problem.


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How to Undermine the Economy

If you wanted to come up with a plan to undermine the economy of the most prosperous and successful nation on earth, how would you go about it?

The first thing you’d have to do would be to debase the underlying value system that provides the foundation for prosperity. That is, the value system to which the founders of this nation, and many generations of immigrants who came here seeking opportunity, subscribed. The core of that value system is the belief that you do not deserve anything you have not earned.

The first step would be to condition the populace to believe that prosperity is bad, that anybody who makes more than a modest income must be evil (or at least dishonest), and that nobody really deserves to be rich, no matter how much they contribute to the economy or how many opportunities they create for others. The rich, by definition, are always a minority, since the term itself implies someone who has substantially greater wealth than the average person. All that’s usually needed to turn the many against the few is a sense of grievance.

Fostering a sense of grievance can be accomplished by promoting the notion that everybody, by virtue of their very existence, is entitled to basic sustenance, such as healthcare, food, shelter, etc. This attitude can be cultivated by establishing a system of bureaucracies (paid for almost entirely by the rich) that provide free handouts to everybody else, while nurturing a sense of perpetual resentment among the people receiving the handouts toward those who provide the wherewithal to satisfy their ever-increasing expectations.

The many are not generally aware that nearly 90% of the income taxes that sustain our government, and all the services “it” provides, are collected from the top 20% of income earners. And, if the many were aware of that, do you think they’d feel like saying “Thank you”? Not likely. Because they’ve been conditioned to believe that the rich don’t deserve their wealth, and that they, the beneficiaries of all those taxes paid by the rich, deserve that money more than the people who earned it. What did the beneficiaries do to deserve it? Nothing. But they exist, and therefore they’re entitled to things they cannot afford, so the money should be taken from those who can afford it and redistributed to them.

Having undermined the cultural values that provide the basis for a prosperous economy, by fostering a culture of dependency on ever-expanding government services, you now have popular support for the next step, which is to penalize production. You do that by regulating industries to the point where the cost of doing business is too great to justify the returns, forcing businesses to either downsize, go bankrupt, or relocate offshore. That increases unemployment, creating an even greater dependency on government services. At the same time, it reduces production so there’s less wealth to tax, and less money coming into the system to support the ever-increasing demands.

At that point, you’ve got a self-perpetuating cycle, with ever-increasing demands on the system and ever-diminishing resources from which to draw to provide for them. To add fuel to the firestorm, you can use the increasing demands as an excuse to raise taxes on the remaining top producers even more, driving more employers out of business or offshore, creating an even larger non-productive class, and further accelerating the drain on the system…

But why stop there? At this point, the economy is so unstable, it can be toppled with ease. To finish it off in style, all that’s required is to spend like a drunken sailor. Get the nation so far in debt to hostile foreign powers that they won’t accept our IOUs any more. Print up fiat money and dilute our currency to the point that the whole world loses confidence in it and the G20 proposes a new international monetary standard. Then distract the citizens by holding contests in Congress to see who can spend money the fastest, and call it a “stimulus plan.”

At that point, the death spiral reaches critical mass. That’s where we are today. How did we get to this point? Well, it could just be a combination of entropy, ignorance, and well-intentioned idiots. Or it could be that there are those who actively seek to undermine our economy to bring our nation to its knees. For what purpose? That depends on who’s pulling the strings. I concede that this begins to sound a little paranoid from someone who usually dismisses conspiracy theories. On the other hand, it’s hard to imagine that anyone, especially the leaders of our nation, are stupid enough not to realize they’re doing the exact things required to accelerate the collapse of our already destabilized economy. And, if they’re not stupid, then they must have a reason for what they’re doing.


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Entitlement, Dependency, Control

Responsibility isn’t something people are born with. It’s learned. It’s learned by prioritizing, making tradeoffs, weighing the benefits, costs, and risks of alternative courses of action, and dealing with the consequences of one’s decisions.

When an overprotective parent spoils their child by shielding them from hard lessons, or gives the child whatever it wants so the child will love them more, they fail to instill in the child a sense of responsibility. Instead they encumber it with a false sense of entitlement to whatever the child desires. Later, the child is faced with a rude awakening when thrust into a world where it has to compete with others who are accustomed to making hard choices and working for the things they desire.

Once a sense of entitlement is engrained in someone’s belief system, it’s difficult to overcome. Developing a sense of responsibility is counter to their conditioning, and they cannot easily grasp the notion that they are really not entitled to anything they haven’t earned. When something doesn’t come easily, instead of getting fired up with a sense of determination to work harder and make the necessary sacrifices to achieve their goal, they feel resentful that it isn’t provided for them. Whatever nominal effort they put into it seems like it ought to be enough. They feel a deep sense of personal injustice that they can’t have things that other people have, oblivious to the tradeoffs and sacrifices others have had to make to acquire those things.

In the real world, nobody is entitled to own a house. If you can’t afford a house, the responsible thing to do is to work and save and sacrifice until you can afford to buy one. By encouraging people to buy houses they really can’t afford, the government sets them up for failure later on when the house payments become a burden they cannot sustain. And when that time comes, the “homeowners” won’t consider that, until their mortgage is paid in full, the house isn’t actually theirs. Instead, they’ll feel entitled to the house in which they’re living, and deeply resentful of losing it.

A person who buys a house incurs a responsibility. If they’re shielded from the full impact of the responsibility they’re incurring, by making it easier than it would be (in a free market) for them to assume it, it gives them a false sense of security and makes the responsibility seem lighter than it is. That is not a wise thing to do. And the current economic crisis is a perfect illustration of that folly. Yet the government is going down the same path again, with the FHA taking on the role once played by AIG.

This is just one of many examples of the government fostering an entitlement mentality in its citizens. Perhaps, like the parent who spoils their child in an attempt to buy its love, politicians see this as a way to buy votes. But, like overprotective parents trying to make life easier for their precious dumplings, when government shields people from the onus of personal responsibility, it does not strengthen them; it weakens them. And it not only weakens the individual beneficiaries of the government’s largesse, it weakens the entire economy, and the underlying moral fiber of our nation.

For years, our government has been actively encouraging people to become less and less self-reliant. By the same token, it has been making us more and more dependent on government. The flip side of dependency is control. The more dependent one is on another, the more control the other has over them. Perhaps the underlying motivation is not so innocent as politicians trying to buy their constituents’ love. Perhaps it’s far more insidious.

The current crisis in our nation is not just an economic crisis. It has far broader implications. The only way out of this crisis is to bring about a fundamental change. — Not the kind of change that accelerates the crisis, leading to ever more weakness, dependency, and state control, but a return to the once deeply-held values that made this country great: personal responsibility, individual sovereignty, and economic freedom.


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Rise Up and Take a Stand


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Freedom is Not a Pendulum

The periodic swings from one party to the other in control of our government often give rise to the analogy of a pendulum. A pendulum swings from one side to the other, always passing through the equilibrium position at its center. This flawed analogy leads to the illusion that our country’s political swings from left to right also pass through a stable center that is fixed and permanent.

History belies that illusion. Throughout the history of civilization, there has never been a government that did not eventually come to an end, either through defeat in war or corrosion from within. The Roman Republic lasted 500 years before it gave way to the Roman Empire, and that too collapsed after a few hundred more years. Ancient history? Yes, indeed. But the rate of social, political, industrial, technological, and cultural changes on the global scale have accelerated, not decelerated, from ancient to modern times. Change happens much more rapidly than it used to.

We think of our government, and our nation, as permanent and impervious to destruction from without or within. That is a comfortable, but naive and historically insupportable, perspective. This country has only existed for a couple of hundred years. It will not exist forever. It too, like all other governments and nations, will someday decline or be overthrown by an enemy. Most of us cannot conceive of the demise of our country and the way of life we’ve taken for granted from birth, so we don’t believe such a thing could happen, — at least not in our lifetimes. But nobody ever realizes they’re living in a historically significant period until it reaches the tipping point and cataclysmic change is suddenly thrust upon them.

In spite of the dire, and oft-repeated, warnings of our founding fathers, the size and scope of our government has continually increased from the founding of our nation until now. For the first hundred and fifty years, the expansion was slow and gradual, with each incremental transfer of power to centralized authority a result of prolonged deliberation and strenuous debate. In the last half century, government expansion has accelerated dramatically, and continues to accelerate at an unprecedented rate. The president and Congress now sign bills into law without even bothering to read them!

Along with the increasing momentum of government expansion, we’ve also seen a pronounced trend toward more and more socialist programs and policies. By that, I mean state control of production and distribution, and increasing regulation of industry and of individual rights. The “pendulum” may still swing to one side or the other, but the center point is moving, and it’s moving ever more rapidly. We are straying further and further from the principles on which our founding fathers established this nation. When government takes power away from the people to determine what’s in their best interests, that power does not swing back to the people, like a pendulum. The balance of power is permanently shifted from the people to the government, making it easier for government to usurp even more power in the future.

History informs us that the decline and fall of our nation will eventually come to pass. But history doesn’t tell us when or how. We are on a trajectory toward the termination of the greatest and most successful experiment in freedom the world has ever known. We could stand back and idly watch it slip away and, afterward, wonder where it went. Or we could wake up and start waking up our friends and neighbors, and impress upon them what is at stake.

In his farewell address on March 4, 1837, Andrew Jackson said:

But you must remember, my fellow-citizens, that eternal vigilance by the people is the price of liberty, and that you must pay the price if you wish to secure the blessing. It behooves you, therefore, to be watchful in your States as well as in the Federal Government.

We, the people, may have it within our power to stave off the inevitable expiration of our nation by exchanging complacency for vigilance, and apathy for involvement. How long we can maintain it is unknown. But it rests with us to at least pass it on to the next generation. What happens after that is up to them.


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Tea Party Sign Ideas

  • Remember, Patriots VOTE!
  • November, 2010: We Take our Country Back!
  • The Revolution Starts HERE
  • Get Your Hand Out of My Pocket & Leave Me Alone!
  • STOP the Borrowing
  • STOP the Spending
  • STOP the Taxing
  • Stop the $$$ Presses!
  • Stop Porking America!
  • I Can Spend My $$ Better Than You Can
  • It’s Time to Clean House — And Senate!
  • I Want My National Sovereignty Back!
  • What Have We Got to Lose? (Besides our Country?)
  • Free Markets. Free People.
  • This is Only the Beginning…
  • Government is Not Your Daddy

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Criminals for Gun Control (Video)

Mabye OSHA should get involved in the gun control movement.


Somebody has to stand up for criminals’ rights…


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Published in: on April 4, 2009 at 12:00 pm  Comments (97)  
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Taxpayer Tea Parties All Across the Nation

Have you had enough taxation, regulation, over-spending, over-borrowing, bailouts, stimulus packages, and redistribution of wealth?

Our government exists to serve the People. We do not exist to serve the government. How well is your government serving you?

  • Our elected representatives are gutting our economy with irresponsible borrowing and spending for Toxic Asset Relief Programs, bailouts, and stimulus packages that benefit their major campaign contributors at your expense.

  • They’re diluting all of our savings, income, and retirement funds by printing up trillions of dollars of toilet-paper currency, leading to hyper-inflation and the devaluation of every dollar you own or earn.

  • They’re mortgaging our nation to China and other foreign powers, and indenturing our children and grandchildren to pay off the astronomical debt they’re incurring in our name.

  • They’re driving the industries that sustain our economy off-shore through prohibitively expensive and increasingly restrictive regulation, ostensibly to protect “the environment” and prevent “climate change.”

  • They’re establishing a whole new elite class of government employees who don’t produce anything, but are compensated more highly than the private sector can afford to match, — and are paid at the expense of the taxpayers.

  • They created this economic crisis by trying to implement social engineering as economic policy, and now they’re pretending they can get us out of this mess the same way they got us into it — by loosening up credit, promoting risk-free mortgages for those who still can’t afford to buy homes, and investing our money in the same toxic assets that are threatening to bring down the world economy!

On top of that, they plan to expand entitlement programs, under the misguided assumption that it’s the government’s role to provide for everybody who can’t or won’t provide for themselves — at the expense of those who do. They believe they need to pass even more laws to protect us from ourselves. States are drafting new regulations to determine how we can and can’t use our private property. And, at every level, they’re absolutely convinced that they know how to spend our money better than we do.

If the founding fathers could have even imagined the plethora of laws, regulations, ordinances, taxes, licenses, permits, fees, etc. that we are subject to today, and which are constantly increasing, they would roll over in their graves. Yet our current administration, and Congress, seem to believe we do not have enough government. They want to see government expanded at an even greater rate than it’s already expanding. One has to wonder what these people think the ultimate role of government should be. — It’s certainly a far cry from what our founding fathers intended.

If you’ve had enough, and you’re ready to stand up and send a message to your legislators that their days in office are numbered unless they STOP THE SPENDING, STOP THE BORROWING, STOP THE TAXING, STOP THE PORKING, and STOP REGULATING OUR ECONOMY INTO INSOLVENCY, find your nearest Taxpayer Tea Party and join us in protest on April 15.

It’s time to take a stand against overtaxation and overregulation. Please join me, and millions of others, in telling our government Get Your Hand Out of My Pocket and Leave Me Alone!

To find the Taxpayer Tea Party nearest you, visit http://TaxDayTeaParty.com.


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Economics Lessons for Liberals: Inflation

This past week, the Federal Reserve announced that it’s going to buy $300 billion worth of long-term Treasury bills over the next six months, and $750 billion of mortgage-backed securities, to try to loosen up credit and lower mortgage rates. It was also announced that they’re not going to raise taxes to come up with this additional trillion-plus dollars (on top of the recent bailouts and stimulus bill). Instead, they would just crank up the printing presses and print up the money.

How many things can you find wrong with this picture?

Wasn’t it loose credit that created the current financial crisis they’re purportedly trying to get us out of? Aren’t mortgage-backed securities the “toxic assets” that precipitated the collapse of all those banks and financial institutions that we’re already bailing out with our tax dollars? These are the very building blocks of the biggest Ponzi scheme in economic history, but the Fed, in its infinite wisdom, sees fit to gamble 3/4 of a trillion dollars of our money on the most discredited and dangerous financial instrument ever concocted to dupe unsuspecting investors. Only, at this point, they can hardly be said to be unsuspecting.

We’re supposed to be placated by the fact that, this time, they’re not using our tax dollars, but are printing up the money on their little printing presses. So, therefore, it doesn’t cost us anything, right? That would seem to be what they expect us to believe.

Economics for Liberals, Lesson #4.* When the Fed prints new money, it devalues all the money that’s currently in circulation. Printing more money literally dilutes the value of everybody’s savings, investments, salaries, and retirement funds.

Currency has no intrinsic value; it’s merely symbolic of the value of goods and services that can be exchanged. The only way to increase the total value in a system is to increase the production of goods and services that somebody wants to consume. The sum total of the currency in a system represents the sum total of the real value in the system (goods and services produced). The value that each unit of currency represents is the ratio of the total units of currency to the total actual value in the system. When the actual value (goods and services produced) remains stable, but the total units of currency are increased, each unit of currency represents less of the total actual value and, consequently, has less purchasing power. That’s what’s known as inflation.

Inflation is simply another type of taxation. Instead of taxing you on each incremental unit of value you produce, the Fed simply dilutes the value of everything you currently have, as well as every dollar you will earn in the future. It’s an invisible tax, because you don’t see the government taking it away from you. You see higher prices for everything you buy, and you blame the producers. But the producers are paying higher prices for everything they have to purchase to produce what they sell to you.

So everybody’s stuck paying higher prices for everything, but they don’t have any more money. So everybody’s purchasing power is reduced, making everybody, in real terms, poorer than they were before the currency was diluted. That’s because the money that was printed up by the government was not distributed to the people whose currency lost its value, but rather was used to buy whatever the Fed buys with it. — In this case, toxic assets that they know are overvalued.

How do I know with such certainty they are overvalued? Because, if they were not overvalued, they’d be able to be sold on the free market. The very fact that government has to buy them up indicates they’re not worth the price at which the government is buying them.

Economics for Liberals, Lesson #5. The value of an investment is based on the ratio of risk to potential reward. If the risk is greater than the potential rewards, the investment is overvalued and nobody will buy it unless the risk is reduced or the reward potential is increased. In many investments, the risk is simply the risk of losing what you invested, so the risk can be reduced by lowering the price. When a balance is reached between risk and potential, buyers can be found on the free market who are willing to assume the risk.

But, when the government assumes the risk, the people making the decisions aren’t risking their own money. They’re risking the taxpayers’ money, either directly (through taxation) or indirectly (through inflation). In this case, the Fed is cranking up the printing presses and diluting all of our savings, investments, salaries, and retirement funds to purchase investments that are known to be bad before they buy them. If any corporate CFO were to behave that way, knowing what we all know today, they would be fired.

And, to add insult to injury, they think we’re stupid enough to believe it isn’t costing us anything because they aren’t raising our taxes — yet. But the biggest irony of all is that the purpose used to justify this devious machination is to perpetuate the very circumstances (loose credit and easy availability of mortgages) that got us into this economic crisis in the first place.

Just how stupid do they think we are? Just how stupid are we?

*Lessons #1-3 are posted in Economics Lessons for Liberals: Minimum Wage.


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Looting the Economy

Even in the midst of the deepest and most far-reaching economic crisis since the Great Depression, Americans are still pretty comfortable. The poorest of the poor in this country would be considered wealthy by the standards of most of the world’s population, taking for granted “luxuries” like plumbing, elecricity, and medical care.

The reason we’re so comparatively wealthy in this country, even during this worldwide economic crisis, is because this country has had a historically strong economy, built up over decades of productivity, of leading the world in industrial and technological innovation that has not only generated wealth for the entrepreneurs and investors who made it possible, but has created abundant opportunities for people who were willing to learn a marketable skill, and work hard at it, to earn their way out of poverty and into the middle class.

People like to go on about the “shrinking middle class,” but neglect to consider that the “poor” in this country today have, on average, a higher standard of living than the “middle class” had a couple of generations ago. It isn’t that there’s more actual poverty today, it’s that the bar keeps being raised on what we consider “poor.”

A rising tide lifts all boats, and that has been the case with our economy, up until recently. The standard of living bar has been continuously raised for everybody, generation after generation. This is not because the government provides for us all, but because the productive members of society generate not just money, but value, not just wealth, but opportunity, providing goods and services that continually improve the quality of life for all, while creating jobs and providing the foundation for a sound and healthy economy.

When you hamper or discourage productivity (or drive it offshore) through excessive regulations and punitive taxation, for the dubious benefit of the unproductive members of society, the economy as a whole must suffer. If a rising tide lifts all boats, what happens when the tide recedes? The overall standard of living goes down. We are standing at that inflection point today.

Years ago, we shifted from a production economy to a “credit economy.” Where our economy used to be based on goods delivered, now it’s based on promises, and many of those promises are turning out to be undeliverable. So what do we do now?

The solution is not to keep expanding our dependency on government, while sinking our nation ever deeper into debt, relying more and more on the government to provide what the producers no longer can because the government has tied their hands or driven them offshore. That course of action can only dig us deeper into the hole we’re in right now. The way to recover is to return to a production economy, where you only get rewards for what you produce. If you want something, you have to pay for it. To pay for it, you have to produce something for which somebody else is willing to pay you.

We need to restore productivity, not just have government hire more people and create more bureaucracies to employ them. We need to create value, not pump more money into the economy, which only serves to devalue the money already in circulation. We cannot borrow our way out of debt, nor spend our way into solvency. We need to return to the basic foundations on which this once-great nation was built: hard work, self-reliance, entrepreneurship, industry, and personal responsibility. It’s not rocket science. It’s common sense.

So why are our legislators doing just the opposite of what clearly needs to be done to regenerate our economy? Why are they jamming the accelerator to the floor as the economy heads over the cliff? Because the impending disaster that has been building up for years is now imminent, and they believe it to be inevitable. They’ve given up all hope of salvaging the economy, and figure they may as well grab what they can while there’s still something left to grab. They’re in a feeding frenzy of earmarks, stuffing every bill with as much pork as they can cram in. They are literally looting the economy, justifying their reckless plunder because they figure it’s all going down anyway.

So they pour more money into the economy, mortgaging our country to foreign interests, indenturing future generations of taxpayers, while they and their buddies rake theirs off the top. And the rest of us sit watching in dumb horror (or blind hope) as the value of the money in our bank accounts gets diluted by the flood of new dollars being pumped into the system, and the stock market plummets day after day.

And what happens when it all bottoms out and there’s nothing left to loot? In one scenario, we start over from scratch, the way our forefathers did, and struggle to rebuild a stable economy based once again on real productivity. In a more nefarious scenario, there’s somebody waiting in the wings with other plans for our nation…


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