'Model Train,
Tracks, and
Town'
Exhibit Near
The National Tree,
The Ellipse,
The White House,
Washington, DC,
December, 2001.
Governmentalism is not an ideology. It is a method of taking control of money, resources, people, and existing forms of government.
Governmentalists rely on 'loss/default' federal guarantee insurance corporation programs, reinsurance, and other forms of 'paper' to fund the now enormous $14 Trillion federal debt for the 'social welfare economy' and other traditional programs such as defense.
Keep in mind that from 1935-1981, the federal debt was only $25 Billion. Federal Debt increased to $165 million during Ronald Reagan's administration from 1981-1989. Costs of the Vietnam War and later of Reagan/George HW Bush US military involvement fighting socialist armies in South America and the Middle East were blamed for this increase in debt.
Social Welfare expenditures originated during Democrat Lyndon B. Johnson's 1964-65'War on Poverty' and his concurrent loosening of traditional limitations on number of immigrants admitted to the US annually led to the phenomenal growth in the social welfare segment of the federal budget.
To fund themselves and their favored expenditures, governmentalists aggressively and unfairly tax- and bill-collected individual US citizens and businesses. Tax collection pressures drove many American companies to seek materials, factories, warehouses, and operations centers and to relocate outside of the US.
The seemingly ridiculous endpoint of 'off shore' business operations was the dissolution of traditional American companies which 'did it all' from product design, manufacture, sales, and dstribution. Producer companies, often major employers, were replaced by import product brokers.
Many companies went through periods of 'employee downsizing' during the change from producer to broker. These companies tried to lower or limit costs, to create, maintain, or increase profit for investors. The result was a net loss of jobs and therefore of sales of produts in the US. An enormous number of imported products and services replaced 'made in the USA' products, and later services.
The automotive industry is a good example of this change to an import product economy. Larger, more expensive labor cost American cars and trucks now had to compete with lower priced foreign, low-labor cost, sources. Japanese and Korean car manufacturers now compete in the US market with some of the lowest price cars on the market.
Major US car manufacturers have faced multiple federal bankruptcies and 'bail outs', which benefit the courthouse crowd. The financial 'magic' of creating something from nothing, profits from losses, during corporate bankruptcies is hidden in new financial 'tools', not so 'generally accepted accouting methods', and an 'in-crowd' of bankruptcy attorneys who are able to obtain loans under circumstances that leave the average American with 'nothing from nothing leaves nothing'.
Laws and general rules against accepting foreign campaign donations, because of concerns about foreign influence in politics and the economy, largely have been ignored. In a volatile economy many politicians and governmentalists have sought to benefit from these 'business trends' as have stock brokers, investors, and financiers.
Clinton Administration 'dual citizenship' individual and corporate tax breaks now helped foreign companies, new or bankruptcy replacement companies, do business in the US without paying taxes here. So there is further loss of tax revenue to finance exorbitant social welfare and other budget items.
To fund federal programs, governmentalists gobbled up even defense contractors for tax money and assets. Contractors with substantial early computer and 'information technology' capabilities were bankrupted. Whether to pay their taxes or in bankruptcy court compromises to survive, these contractors often became part of a gigantic tax- and bill-collecting industry.
TRW, for example, was a defense and space contractor to the federal government with other subsidiaries such as automotive parts. TRWs' computer capacities were tapped to become part of the 'credit reporting agency' section of the federally-affiliated tax/bill-collecting industry. TRW is now part of Experian, the largest database of consumer information on US citizens.
The 'paper standard' spread throughout the economy. In a frighteningly prophetic statement, the US government in the United States Code (USC 15, Setion 1681), said of the banking industry:
'The banking system is dependent on fair and accurate credit reporting. Inaccurate reports directly impair the efficiency of the banking system, and unfair credit reporting methods undermine the public confidence, which is essential to the continued functioning of the banking system.'
The US Federal Reserve reacted to the collapse of many major national banks with multi-hundred million dollar 'bail outs' near the end of GW Bush's administration in the fall of 2008 and the continued 'bail outs' at the beginning of the Obama Administration.
These appear to be empty 'bail outs', based on selling off performing as well as non-performing loans, to create the illusion of larger bank assets and holdings. The result is access to loans for 'more money to make money' for a smaller and smaller group of 'house-flipping' and other profiteers operating under traditional bank logos, signs, and store fronts. Many financial services companies simply are groups of 'bill collectors' without any real assets, who have access to loans through friends in banking.
Credit Reporting Agencies (CRAs) who collect consumer data and bill collect consumers also have developed scales for denying credit to the average American. The scales are arbitrary and contradictory, credit denials for no credit history, no credit out or too much credit out. But presentation of such scales as statistical data in glossy brochures somehow has given these scales an illusion of legitimacy. CRAs then add 'bad credit risk' consumers and amounts, already in their consumer files, to their asset statements and off they go to their 'go to' friendly bank for a business loan.
CRAs appear to be bank 'ty-in' service companies', subsidiaries or affiliates who help loan officers increase projected bank profit by offering higher interest loan packages to most customers for the benefit of a few. Such companies, as well as in-bank brokerages, previously were illegal under banking laws to prevent theft of customer accounts and manipulation of bank assets and balance sheets.
CRAs also have destabilized the financial sector by supporting the trend toward usury profits for bankers. Banks cause stagnation or financial loss even for savers by offering only 1-4% interest on savings accounts, Certificates of Deposit accounts, and often charge other fees. CRAs cause ruination for borrowers by charging 20-35% compounded APR interest on credit card accounts, plus other penalties and fees.
Banks earn money through savings accounts by not paying any significant interest. Banks also earn money in what appear to be 'pure profit' credit cards with high compounding interest and fees.
Governmentalists have increased interest rates permissable under usury laws in The United States Code and other official documents. Old rules restricting interest to simple, singe-digit interest have been replaced by double-digit, compounded interest. Thus the spiral into hyperinflation has been 'enabled' by governmentalists.
Banks appear to earn enormous amounts of money in 'fluffed-up' loan to collection account 'asset' accounting. Yet banks have collapsed. Why? Money taken from the till by bankers for unsold 'house-flipping' profits, favorite 'loss' investments, inflated commission-based wages and salaries for existing checking, savings, and other accounts and internal/external bill collecting schemes, loan payments for 'bail outs' and other deals, are all factors.
The horrible urge to greed may have overcome 'the reasonable person' view and control of American society, including banking.
(See http://monthlynotes20.blogspot.com or the original http://monthlynotes.blogspot.com for blogs 1-5 on 'Can the Credit Consumer Survive the Credit Reporting Industry?')
Email mkrause381@gmail.com or mkrause54@yahoo.com to comment or request copies of this or other blogs posted by mary for monthlynotesstaff on http://monthlynotes21.blogspot.com (or http://monthlynotes.blogspot.com through http://monthlynotes21.blogspot.com) on www.google.com. See http://monthlynotes18.blogspot.com and http://monthlynotes19.blogspot.com for monthlynotes bloglists of titles and URLs.
Graphic: "Model Train, Tracks, and Town' Exhibit near The National Tree, The Ellipse, The White House, Washington, DC, December, 2001. "An Original Photographic, copyright mkrause381@gmail.com or mkrause54@yahoo.com, 2011.
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