Authentic Wealth Enhancement Essentials

DeepCaster LLC

"Inflate, Deflate, Confiscate"

"The shadow banking system is still alive and growing. According to a new paper (PDF) by the Levy Economics Institute of U Miss, the derivative exposure of Goldman Sachs was 33,823% of its assets in 2009 (as compared to 25,284% in 2008). They are still leveraged to the hilt and the US government (i.e. the U.S. taxpayer) is the backstop." U.S. Senator Robert A. Taft (RIP) on the Mega-Banks favorite technique

"The U.S. Federal Reserve's framework is a corrupt one in that its regional banks are managed by board members who are officers from the very private institutions they are designed to govern, - Nobel laureate economist Joseph Stiglitz.

Stiglitz, also a former chief economist at the World Bank, says if a country had come to him looking for aid while running a central bank in such a manner, alarm bells would have gone off.

"If we had seen a governance structure that corresponds to our Federal Reserve system, we would have been yelling and screaming and saying that country does not deserve any assistance, this is a corrupt governing structure," says Stiglitz according to the Huffington Post.

"It's time for us to reflect on our own structure today, and to say there are parts that can be improved."

The New York Fed presently has on its board of directors Jamie Dimon, the head of JPMorgan Chase, according to the Huffington Post." "Stiglitz: Federal Reserve Framework is Corrupt" Forrest Jones, MoneyNews.com March 15, 2010

WARREN: "I understand financing that comes in once a business is in distress... We call it post-petition financing in the bankruptcy world. The price for that is that equity gets wiped out, top management loses their jobs, and the old debt takes a hair cut of some proportion...What we did when we (the US taxpayer--ed.) rescued these (Mega--ed) banks is that we left the shareholders intact, we left their top management intact, we paid their debt in full...We were far too generous."

ROSE: "So you could have saved the economy without going to the extent in making the deal you did?"

WARREN: "I think you could have... Secretary Paulson said there's too much concentration in the banking industry, and there's even more concentration today than there was...

It's not that bigness is bad, it's that we've got concentrated risk and that's what creates too big to fail and that's creating distortions throughout the economy...we have hollowed out America's middle class. It will not save us if a handful of Wall Street banks prosper and the rest of America fails." - Elizabeth WARREN, Chair, Congressional Oversight Committee as interviewed on the Charlie Rose Show

In an Era of skyrocketing Sovereign Debt, ongoing Mega-Bank Bailouts and Taxpayer backstopping, and ever-increasing Wealth for the Mega-Bankers (but virtually nothing for the Middle Class worldwide or for local and regional banks), Cartel* Market Manipulation, and Bogus Official Statistics, determining what constitutes Authentic Wealth Enhancement, as opposed to that which is merely illusory, is difficult. Once such a determination is made, achieving Authentic Wealth Enhancement is also difficult.

But neither is impossible.

If the investment one is considering passes the following tests, it is likely that that investment can provide Authentic Wealth Enhancement. (Note: our regular readers are familiar with the key points we make in #1 and #2 below. But their reiteration is essential to the essential points we make in #3 and ff.)

1) The investment must outperform Real Inflation

That is to say, Total Return (i.e. Yield plus capital appreciation) must outperform REAL CPI. That is, it must outperform very real Purchasing Power Degradation. The problem is that Real CPI is today (and has been for some time) well above the bogus official numbers (and not just the bogus U.S. Numbers...a topic for another day.) For example, while Official U.S. CPI is 2.14% in March, 2010, Real U.S. CPI, as calculated by shadowstats.com is 9.39%. Shadowstats.com calculates Statistics the way they were calculated before Official Manipulation began in earnest in the 1980s and 1990s. Consider the following Chart of Key Statistics, all per shadowstats.com.

Official Numbers
vs.
Real Numbers
Annual Consumer Price Inflation
reported March 18, 2010
2.14%
9.39% (annualized March Rate)
U.S. Unemployment
reported March 5, 2010
9.7%
21.6%
U.S. GDP Annual Growth/Decline
reported February 26, 2010
0.15%
-4.62%

Thus, for example, when one considers a recent recommendation of one sophisticated and successful fund manager -- to buy an emerging markets sovereign debt fund with a 6.5% yield -- one must realize that that investment must ALSO achieve a 3% capital appreciation, simply to "stay even", given today's Real Inflation numbers.

2) The Investment can return a Real Profit despite Cartel* Market Manipulation

Over the past several years, clear and convincing evidence has been amassed that a Fed-led Cartel* of Key Central Bankers and their agents and allies are overtly AND COVERTLY regularly involved in manipulating Major Markets including Precious Metals, Strategic Commodities, and Equities.

*We encourage those who doubt the scope and power of Overt and Covert Interventions by a Fed-led Cartel of Key Central Bankers and Favored Financial Institutions to read Deepcaster's December, 2009, Special Alert containing a summary overview of Intervention entitled "Forecasts and December, 2009 Special Alert: Profiting From The Cartel's Dark Interventions - III" and Deepcaster's July, 2009 Letter entitled "A Strategy For Profiting From The Cartel's Dark Interventions & Evolving Techniques - II" in the 'Alerts Cache' and 'Latest Letter' Cache at www.deepcaster.com. Also consider the substantial evidence collected by the Gold AntiTrust Action Committee at www.gata.org for information on precious metals price manipulation. Virtually all of the evidence for Intervention has been gleaned from publicly available records. Deepcaster's profitable recommendations displayed at www.deepcaster.com have been facilitated by attention to these "Interventionals." Attention to The Interventionals facilitated Deepcaster's recommending five short positions prior to the Fall, 2008 Market Crash all of which were subsequently liquidated profitably.

As Hard Money/Hard Assets Partisans like Deepcaster know, Gold and Silver prices have been the number one victim of Cartel Price Suppression. Had there been no such price suppression over the past few years, Gold would have exceeded its 1980 high of appx. $2,400 (inflation-adjusted) some time ago, in our view.

Instead, the Gold Price is still subject to periodic Cartel Takedowns as the $50 down days in early December, 2009 and early February, 2010, attest. Deepcaster has developed a Strategy designed to profit despite Cartel intervention, the details of which can be found in "Profit & Protection from Cartel Intervention" (12/25/09) in the 'Articles by Deepcaster' Cache at www.deepcaster.com.

3) An Investment must not suffer as a result of ONGOING Mega-Bank Bailouts and U.S. Taxpayers' (and many Investors worldwide) ONGOING backstopping of the increasing Leveraged Risks of the Mega-Banks.

These Bailouts and the Ongoing Backstopping are merely a couple of Steps in the ONGOING implementation of The Cartel's 'End Game'.

Consider carefully the claims (with which Deepcaster agrees) made by Congressional Oversight Committee Chair Warren and Nobel Laureate Economist Stiglitz above.

In effect, considered together with the figures regarding the INCREASING leverage and risk by one of the Mega-Banks, Goldman Sachs, they reflect the fact that NO significant Financial 'Reform' is likely to be forthcoming from this U.S. Congress unless constituents mount a massive lobbying effort very soon.

Indeed, Senator Chris Dodd's (to say that he bends over backward to please the Mega-Banks is too kind) recent proposal to house the 'Consumer Protection Agency' within the Cartel Leader, the private for-profit U.S. Fed, would be laughable were it not most serious. Though Deepcaster is typically quite skeptical of Cabal Theories, our view is that if 'it' talks like a Cabal, and acts like a Cabal, then perforce one must conclude...

Describing, and providing evidence for, an ongoing Cartel 'End Game' is beyond the scope of this article.

But that evidence is surely available. First, note that A Major Goal of that 'End Game' is revealed by considering Deepcaster's (and F.W. Engdahl's, and eminence grise of the Newsletter writer's Harry Schultz's) conclusion regarding the 2008 Equities Market Takedown -- it was planned.

And of course one result of that Market 'Crash" was that the Mega-Banks acquired more power and wealth (some $11.9 Trillion more, in the six months between June, 2008 and December, 2008 per the Central Bankers Bank's own figures. (See www.bis.org, Path: Statistics, Derivatives, Table 19).

For More details on the multifaceted Cartel 'End Game' see Deepcaster's articles: "Surmounting The Cartel's 'End Game Juggernaut" (9/25/09) in the Articles by Deepcaster cache at www.deepcaster.com.

In sum, in order to enhance, and protect, ones Real Wealth, it is essential to understand, and surmount the effects of, the Cartel 'End Game'.

4) The Reality of The Multi-Country Sovereign Debt Risk must be Addressed and Surmounted

Perhaps the reason that the plight of economically tiny (some 3% of Eurozone GDP) Greece resonates so much across the Developed and Emerging Markets' World is that it provides a probable harbinger of Crises to come. And it is not just the well-publicized and developing Sovereign Debt Crises of France, or Great Britain, or the United States (with a $10 Trillion National Debt, and some $70 Trillion of downstream unfunded liabilities).

But it is also the bubbles in, say, China which has potentially trillions in bad loans on the books and a massive overinvestment in infrastructure.

No wonder legendary, and successful, 'short' speculator Chanos is reportedly betting big time against China.

For investors worldwide, unsustainable Sovereign Debt entails Sovereign Debt defaults. And that entails Fiat Currency Purchasing Power Degradation, and ultimately, (currently extant) Fiat Currency Failure. Thus, those who rely on Assets "stored" or denominated in Fiat Currencies are likely to be seriously damaged (N.B. The articles referenced above outline the probable Cartel 'End Game' response to this—to substitute its own global currency for the extant ones and to achieve considerable wealth confiscation in the process. Note that the recent introduction of a de facto Global Fiat Currency -- the IMF's SDR's, is likely a Trial Run for the introduction of such a Global Currency).

It is unlikely that such a Major Sovereign Nation Debt Default would be blatant. Rather, in the case of e.g. the USA, (still) in possession of the World's Reserve Currency, one can expect an ongoing devaluation of the U.S. Dollar, until surprise, surprise, The Cartel is ready to seriously push for the Broad Usage of Their Global Currency.

The only Assets likely to survive the Devaluation of the extant Fiat Currencies are Gold and Silver and select Strategic Commodities such as Crude Oil and Basic Foods.

BUT, recall that these are subject to Cartel price manipulation, so one must implement a Strategy to profit, and protect wealth, despite such manipulation.

See "Defeating The Cartel...with Profit" (6/19/09) in the 'Articles by Deepcaster' Cache at www.deepcaster.com for Deepcaster's Strategy.

Conclusion and Recommendations: The next very few years, or perhaps we have only a few months, will determine whether the Mega-Bankers, or Citizen/Investors worldwide, will prevail.

It is not merely economic freedom which is at stake, but rather the whole panoply of freedoms which many in the Western World have come, alas, to take for granted. Thus political action is essential.

Be aware of and Active in the overall Geopolitical Landscape in order to gain an adequate understanding of how that Landscape might affect the present and future direction of the Markets. It is essential that one understand the motivations of the major players in the market and the resources at their disposal.

For example, a Major Motivation of the private for-profit U.S. Federal Reserve and other key Central Banks is the protection and enhancement of the legitimacy of their Treasury Securities and Fiat Currencies as Measures and Stores of Value. Therefore, one can understand that one of their Major Goals will be to attempt de-legitimize Gold, Silver and the Strategic Commodities, including especially Crude Oil, as Stores and Measures of Value. With this in mind, the periodic takedowns of Gold and Silver prices and, since July, 2008, of Crude Oil, become understandable. Moreover, such an insight applied daily to the market can result in a tremendous edge in understanding market performance, present and future.

Moreover, regarding the assets at The Cartel's disposal, if one tracks the Repurchase Agreement and TSLF Pools regularly for example, and is aware of the other Interventional tools that The Cartel has at its disposal, then one gains a considerable edge.

Finally, Hard Assets Partisans have the opportunity to become involved in Political Action to diminish the power of The Cartel. It is truly outrageous that the average unsuspecting citizen, and prospective retiree, can and does put his hard won assets in Tangible Assets and/or Retirement Accounts only to have those assets effectively de-valued by Cartel Takedowns, U.S. Dollar Devaluation and other Cartel actions. This is extremely injurious to many average citizens in many countries who are saving for the rainy day or retirement and have their retirement and/or reserves effectively taken from them. In order to help prevent this and similar outrages, we recommend taking three steps:

  1. Become involved in the movement to Audit and then abolish the private-for-profit U.S. Federal Reserve as Deepcaster, former Presidential candidate Rep. Ron Paul, and legendary investor Jim Rogers, all have advocated. The 'Audit The Fed' Bill is H.R. 1207 (and has over 200 co-sponsors) and S604 in the Senate; and The Abolish The Fed Bill is H.R. 2755.Unfortunately these bills have been watered down in this session of Congress. www.carryingcapacity.org is a nonprofit organization which actively supports these bills.
  2. Join the Gold AntiTrust Action Committee, which works to eliminate the manipulation of the Gold and Silver markets (www.gata.org). GATA is a nonprofit organization, which makes a great contribution by gathering evidence regarding the suppression of prices of Gold, Silver and other commodities.
  3. Work to defeat The Cartel 'End Game.' Deepcaster has laid out the evidence regarding the Ominous Cartel "End Game" in "Coping with Power Moves in the Cartel's 'End Game' " (04/24/2009). Clearly (and notwithstanding the recent U.S. Dollar bounce which Deepcaster earlier forecast) The Cartel is sacrificing the U.S. Dollar over the long-term to prop up Favored International Financial Institutions and to maintain its power. But this sacrifice cannot continue forever. See Deepcaster's July, 2008 Letter in the 'Latest Letter' Archives at www.deepcaster.com.

Additional insights and details regarding the foregoing Strategy, which are essential to profiting and protecting from The Cartel's Interventions, are laid out in Deepcaster's article of 3/06/09 entitled "Investor Advantage: Revisiting The Cartel's 'End Game' " in the 'Articles by Deepcaster' cache at www.deepcaster.com.

Details of the Strategy designed to profit in spite of Cartel Intervention specifically in the Precious Metals markets are described in "Defeating The Cartel...With Profit" (3/28/2008) in the 'Articles by Deepcaster' cache at www.deepcaster.com.

Indeed, the Key Point of the Strategy for Protection and Profit is careful attention not only to the Fundamentals and Technicals but also to the Interventionals. These Overt and Covert Cartel-generated Interventions have the power to move markets as those who study the matter can attest.

In sum, the Key to Profit and Protection is a Strategy: Successful Investors must become Long-Term Position Traders, with their trading choices informed by the Interventionals, as well as the Fundamentals and Technicals. Moreover, engaging in the Actions suggested above can help prevent The Cartel's obtaining Superpower status, and aid in achieving wealth protection and profits as well.

Copyright © 2010 DeepCaster LLC

DEEPCASTER FORTRESS ASSETS LETTER Wealth Preservation, Wealth Enhancement, & Financial and Geopolitical Intelligence. Gravitas, Pietas, Virtus

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It Was a Wonderful Life

James Quinn

The year was 1946. It marked the inauguration of the last High in America. A Crisis had begun abruptly with the 1929 Black Tuesday stock-market crash. After a three-year financial free fall, the ensuing Great Depression prompted FDR’s New Deal social welfare programs, an enormous extension of government, and expectations for a revitalization of our national community. After the attack on Pearl Harbor, America planned, mobilized, and manufactured for conflict on a level that made possible the colossal D-Day invasion. Two years later, the Crisis mood eased with America’s unexpectedly painless demobilization. Director Frank Capra produced and directed one of the most beloved movies of all-time in 1946 – It’s a Wonderful Life. The movie is a beloved Christmas classic. It is a story of hope, redemption, belief in the goodness of man, and belief in God. If you are down in the dumps or depressed, watch this movie and your spirits will be lifted. What is less evident, but more pertinent today, is the distinction between the America that we were versus the America we could have become. The America we did not want to become was controlled and manipulated by an evil, soul-less banker. It was a dark foreboding Gomorrah-like world of bars, strip joints, casinos and tenement housing. The citizens were angry, rude and mistrustful. In the movie, George Bailey, played by Jimmy Stewart, is able to see how his small town would have turned out if he had never been born. In the real world, people and countries don’t have an opportunity to see how their decisions will affect the future. The American people and their elected leaders have made some dreadful decisions since 1946 that have drained the life out of the American Dream. God and morality have lost their meaning and importance in modern America. When the distinction between good and evil is blurred by the media and intellectuals, the degradation of society and morality leads to a downward death spiral.

The Idea of America

"Here in America we are descended in blood and in spirit from revolutionists and rebels - men and women who dare to dissent from accepted doctrine. As their heirs, may we never confuse honest dissent with disloyal subversion." Dwight D. Eisenhower

The Founding Fathers risked their lives in order to escape the tyranny and imperial oppressiveness of the British Empire. They dreamed of a country where all men were created equal. They believed that all citizens were endowed by their Creator with certain unalienable Rights that among them were Life, Liberty and the Pursuit of Happiness. They did their best to create a country where everyone had an equal opportunity to succeed or fail. It is said that, at the close of the Constitutional Convention, a woman approached Benjamin Franklin and asked him what type of government had been decided upon by the delegates. Franklin stated:

"We have given you a Republic, if you can keep it."

Franklin also deemed that the Constitution could only endure as long as the citizens themselves could sustain it:

"In these sentiments, sir, I agree to this Constitution with all its faults; if they are such; because I think a general government necessary for us, and there is no form of government but what may be a blessing to the people if well administered; and I believe, further, that this is likely to be well administered for a course of years, and can only end in despotism, as other forms have done before it, when the people shall become so corrupted as to need despotic government, being incapable of any other."

The men who created this Republic were practical realists. They were skeptical of all forms of government. They knew that a government would only be as good and honorable as the people who represented the citizens. It was up to the citizens to keep those they elected from abusing their power. Each generation, each individual, needed to pay this price anew each and every day. In the words of Thomas Paine, "Those who expect to reap the blessings of freedom, must, like men, undergo the fatigues of supporting it." For many decades the citizens did undergo the fatigues of supporting it. They defeated the British in the War of 1812. They spilled the blood of 600,000 men in the War Between the States. They died in the trenches of France in World War I. They saved the world from Nazism and Fascism in World War II. Despite these remarkable sacrifices, the idea of America has been lost along the journey. The American Dream has become a nightmare as we have allowed individualism, materialism and selfish greed to override being a good citizen, good neighbor, and going as far as your ability and hard work would take you.

The American Dream is that dream of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement. It is a difficult dream for the European upper classes to interpret adequately, and too many of us ourselves have grown weary and mistrustful of it. It is not a dream of motor cars and high wages merely, but a dream of social order in which each man and each woman shall be able to attain to the fullest stature of which they are innately capable, and be recognized by others for what they are, regardless of the fortuitous circumstances of birth or position. The freedom now desired by many is not freedom to do and dare but freedom from care and worry." - James Truslow Adams, The Epic of America, 1931

Mr. Adams captured the spirit of America, a nation of opportunity. He saw it slipping away back in 1931. We’ve made fateful choices in the last century that have methodically stolen the spirit of the American Dream. Opportunity for each according to their ability or achievement has been replaced by - from each according to his ability, to each according to his need. The twist to the Communist Manifesto is that those with ability who worked hard have had their wealth redistributed to the rich and the poor. The 1% ruling elite have utilized their positions of power, with the help of their benefactor - the Federal Reserve, to amass 40% of all the wealth in the country. The bottom 50% of Americans on the income scale, pay no income taxes and receive the majority of entitlement payments. That leaves the middle class on a permanent treadmill trying to achieve the American Dream, but never reaching the destination.

The loss of the American Dream can be traced to 1913. The creation of the Federal Reserve by powerful banking interests and corrupt politicians marked the beginning of the end for the U.S. dollar. The implementation of a personal income tax opened Pandora’s Box and unleashed incalculable horrors upon the American public. The top marginal tax rate in 1913 was 7%. It reached 94% by 1944. The tax code has grown from 400 pages in 1913 to 67,500 pages today. Politicians have exploited the tax code to recompense political contributors and punish their enemies. The amalgamation of a fiat currency being printed by a Central Bank resulting in a 95% loss in purchasing power and ever increasing tax burdens to support welfare program redistribution have devastated the middle class. With these monetary support mechanisms in place, politicians have been able to promise voters more and more benefits without bothering about future consequences.

The American people have voted themselves more and more goodies. They have ignored their obligation to the past and the future. The Founding Fathers created an imperfect Republic. Ben Franklin knew its future depended upon people administering it well. Unborn future generations are dependent on their parents and grandparents to make choices that do not burden them with an anchor of unbearable debt. We have failed our brave forefathers and have sold our unborn into slavery. The people have been corrupted and the country is on course towards despotism. Today’s "progressives" in the media and government have manipulated the fact that the Founders did not want a national religion to be misrepresented as keeping religion out of America. The Founders were religious men. They believed religion and morality were vital to the country being administered in a moral ethical way and guided by a code of conduct. As God, religion and morality have been denigrated by those in power we have moved further and further from the letter and spirit of the Constitution. Only a people with a strong moral backbone can be trusted to honor the Constitution.

"We have no government armed in power capable of contending with human passions unbridled by morality and religion. Our Constitution was made only for a religious and moral people. It is wholly inadequate for the government of any other." - John Adams

Niall Ferguson, Harvard historian, recently detailed that the choices and decisions we’ve made as a nation have put us on a path of collapse. The believers in American Exceptionalism think it is sacrilege to mention the decline of the American Empire. They estimate that any decline would play out over a century or more. Ferguson notes the widely held belief that:

"Great powers, like great men, are born, rise, reign and then gradually wane. No matter whether civilizations decline culturally, economically or ecologically, their downfalls are protracted."

But what if they are wrong? What if the speed of the modern world also translates into the speed of declines? Ferguson understands that any grain of sand that falls on an instable portion of the sand pile can lead to collapse:

"What if collapse does not arrive over a number of centuries but comes suddenly, like a thief in the night? Great powers are complex systems. There comes a moment when complex systems ‘go critical.’ A very small trigger can set off a ‘phase transition’ from a benign equilibrium to a crisis -- a single grain of sand causes a whole pile to collapse."

Lack of courage, political corruption, greed, immorality, laziness, and materiality has left the country on the brink. Ferguson assesses the facts and concludes that collapse of the American Empire is closer than most people think:

"Most imperial falls are associated with fiscal crises. Alarm bells should therefore be ringing very loudly indeed as the United States contemplates a deficit for 2010 of more than $1.5 trillion -- about 11% of GDP, the biggest since World War II. A complex adaptive system is in big trouble when its component parts lose faith in its viability. Empires behave like all complex adaptive systems. They function in apparent equilibrium for some unknowable period. And then, quite abruptly, they collapse."

How did we get to this point? In 1946 America sat on top of the world.

America – 1946 – Bedford Falls

"There is nothing wrong with America that faith, love of freedom, intelligence, and energy of her citizens cannot cure." Dwight D. Eisenhower

Europe, Russia, and Japan were devastated by World War II. Their populations, cities, infrastructure and industries were ravaged. Only America remained unscathed by war. The rest of the world looked to the U.S. to lead and be the beacon of light on the hill as the shining example of capitalism, freedom, and morality. As the only country whose manufacturing base was still intact, America had huge economic advantages. Despite these advantages, the seeds of destruction were being planted. Almost 30% of our economy was based upon producing things the rest of the world wanted to buy. Another 12% of GDP was from the productive functions of agriculture and mining. Americans were settling into their post-war suburban oasis, leading to 15% of the economy being driven by retail & wholesale sales. Finance and professional services accounted for only 14% of the economy. Today, manufacturing accounts for 11% of the economy, while finance & professional services account for 33% of the economy. This dramatic shift has had a profound effect on the nation.

It's a Wonderful Life teaches us that family, friendship, and virtue are the true definitions of wealth. It also broaches the subject of small town America where small business owners and hard working Americans were treated with respect by small town bankers and valued as lifelong customers. The movie clearly distinguishes between the small town banker who believes that every townsperson deserved a chance at a better life and the big time banker who treated people like cattle and only cared about how much profit he could generate by keeping those people under his thumb. Mr. Potter represents every evil banker that has ever walked this earth and taken advantage of the poor and middle class to enrich himself. George Bailey represents the kind of banker that built this country by making loans to his fellow hard working Americans. This was a very early picture of how allowing a single all-powerful corporate banker to exercise monopolistic control would ultimately destroy the community and enslave the citizens. The scene when Potter offers the depositors 50 cents on the dollar for their shares of Bailey Building & Loan is representative of how thug like corporate bankers will resort to anything in order to put small banks out of business and steal the deposits of average Americans.

The point of the movie, that money won’t buy happiness and that good works are more important than consumerism, was cast aside by America with assistance from the bankers who control the Federal Reserve. The result is a country of bureaucrats, paper pushers, and government lackeys, producing nothing and borrowing at ever increasing amounts in order to live the good life today with no thought about tomorrow. The message of materialism has been preached by the holy trinity of bankers, government, and corporate media.

Value Added as a % of GDP

Industry 1970 1980 1990 2000 2008
Manufacturing 22.7% 20.0% 16.3% 14.5% 11.5%
Construction 4.8% 4.7% 4.3% 4.4% 4.1%
Retail & Wholesale Trade 14.5% 14.0% 12.9% 12.7% 11.9%
Finance, Insurance, Real Estate 14.6% 15.9% 18.0% 19.7% 20.0%
Professional Services 5.4% 6.7% 9.8% 11.6% 12.7%
Educational Services 0.7% 0.6% 0.7% 0.8% 1.0%
Health Services 3.2% 4.4% 6.0% 6.1% 7.1%
Government 15.2% 13.8% 13.9% 12.3% 12.9%
Other 18.9% 19.9% 18.1% 17.9% 18.8%
TOTAL 100.0% 100.0% 100.0% 100.0% 100.0%
Source: BEA

Path of Least Resistance

America will never be destroyed from the outside. If we falter and lose our freedoms, it will be because we destroyed ourselves.Abraham Lincoln

The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.Theodore Roosevelt

Americans were lured into believing they could live the good life without making the sacrifices necessary to obtain that life. They chose to take "50 cents on the dollar" from Potter. They borrowed the other 50 cents from Potter and let the Bailey Building & Loan go out of business. In the world Americans have chosen, George Bailey committed suicide. The United States government made a choice too. The politicians who hold the reins of power in America’s Gomorrah, Washington D.C., sold their souls to the devil of fiat currency printed by corrupt bankers. All the power of the Federal Government has been put in the ravenous claws of the Federal Reserve, a private bank owned and controlled by the biggest banks in the world. Politicians hit the jackpot in 1913 with the creation of the Federal Reserve and the institution of an individual income tax. These fateful decisions have allowed slimy depraved elected officials to promise their constituents trillions of dollars in unfunded entitlements, tax credits for their buddies, and promises of safety and security in order to buy votes. The government made a pact with the banking cartel which has unleashed a torrent of debt that has skyrocketed to levels never conceived by the Bedford Falls America of the 1940’s. Net U.S. debt now exceeds $52 trillion, a full 372% more than GDP.

2Total U.S. debt as a percentage of GDP now exceeds the levels at the depths of the Great Depression by 24%. Ask yourself who profits from printing money and ever increasing levels of debt. Bankers and politicians profit. Who loses from ever increasing levels of debt? The middle class, who have been ensnared by banker deception and phony promises into the belief that possessing extravagant objects is real wealth while sinking ever deeper into debt, are today’s losers. Unborn future generations who will be stuck with the bill for the Baby Boomer orgy of materialism are the real losers. The current fascination with the affluent, the influential, and the celebrated was not found in Bedford Falls. To Frank Capra, the well-to-do and elite had none of the critical traits to safeguard liberty in America, nor did they display any of the core cultural values the country was built upon. The country was built upon the hard work of small close knit communities supported by small town banks and freedom to succeed or fail without government interference. An entrepreneur with a good idea could attain a higher place in the social order through their brains and work ethic. The choice of government to support monopolistic mega corporations and mega banks has destroyed the vital values of the country. Profit and wealth have become the ends, with the means being inflation and debt.

3Credit card debt didn’t exist until the late 1960s because credit cards didn’t exist. Until 1970 Americans bought things by saving money until they accumulated enough to make the purchase. Noble bankers were able to put their luminous minds to the task and created the credit card to "help" all Americans. We are now referred to as consumers rather than citizens. The chart above chronicles the "success" of this banker invention. They didn’t have another such outstanding "success" until the creation of the subprime mortgage, the credit default swap, and the no doc Option ARM. There are 310 million Americans and 1.5 billion credit cards in circulation. The top 10 banks control 88% of the credit card market. Americans owe these banks more than $800 billion. In 1980, at the outset of the great credit hurricane, a credit card application was 700 words and fit on one sheet of paper. Today, a credit card application is 30 pages of unintelligible legalese. Did bankers increase the complexity to help consumers or mislead, bamboozle, and confuse them? I’m sure their motives were honorable.

The ethical bankers are so concerned about young Americans they have managed to issue, on average, 4 credit cards per undergraduate student in the country. They are surely looking out after the best interest of these teenagers. Through devious marketing, with the help of the mainstream media that glorifies the rich and famous, the largest banks in the land convinced a vast majority of Americans they deserved to live like kings. They deserved a McMansion castle, a BMW chariot, a flat screen to watch fools entertain them, and instead of gold coins as real wealth – a gold Amex to create faux wealth. The banking elite hit the jackpot when they "invented" derivatives that allowed them to package credit card and mortgage debt and sell it to unsuspecting suckers. This opened the door to unheard of wealth for the banking elite, as their models told them they could loan money to people who had no chance of paying you back, package the loans, bribe S&P and Moody’s to rate the package of shit as AAA, and sell it to pension funds, small towns, and grandmothers. Wall Street surely cared about their responsibility to the community at large.

America – 2010 – Potterville

"All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation."John Adams

"A free America... means just this: individual freedom for all, rich or poor, or else this system of government we call democracy is only an expedient to enslave man to the machine and make him like it." - Frank Lloyd Wright

America had an option in 1946. We had a choice between Bedford Falls and Pottersville. Sadly, over time, Americans came to a fork in the road and took it. Life is about choices. As a nation we have undoubtedly made more ghastly choices than superior ones. Essentially, the choices were the same ones faced by George Bailey. Do I act in the best interest of myself or do what is best for the community as a whole? Do I choose the path that will give me the most benefits and greatest personal wealth, with the least sacrifice? Or, do I choose a path based upon the values we hold dear like hard work, sacrifice, charity, and loving thy neighbor. A civilization cannot be sustained with making money as its chief pursuit. In that scenario we are no more than animals. Our transition to a brutish society began when citizens became consumers. A citizen is concerned with their civic responsibility, fiscal accountability and obligation to future generations. A consumer devours whatever they can get their grubby little hands on and cares not about debt or unborn generations.

Americans bought into two huge lies. They believed that "free market capitalism" and "globalism" would make their lives better. These fabrications were spread by the monopolistic mammoth corporations that control Washington D.C. and their puppets in Congress. Big media spread the gospel of free markets and the benefits of a global economy incessantly. The fact is free markets aren’t really free and global markets meant your job was shipped to China or India. Americans fell for the hook of cheap goods sold by mega-retailers and produced by slave labor in Far East countries and paid for with loans at 19.99%. This was not free market capitalism, but predatory capitalism. The capitalism that thrived in Bedford Falls was humane capitalism. It was a capitalism where one's commitment to being benevolent took priority over greedy self interest; when the welfare of the person was rooted in the best interests of the society, and when the profit motivation was employed to meet societal needs, rather than Potter-like inhumane bankers and gluttonous corporate CEOs. These monsters of capitalism have the same contempt for the American people as displayed by Henry Potter. They are as bigoted towards America's working class just as Potter referring to the townsfolk as suckers, riff raff, and garlic eaters. Frank Capra depicted bankers as prejudiced predators, angling to direct America toward a rapacious existence under their sphere of influence. In my opinion, he was too generous, as the Wall Street bankers of today personify pure evil. Only soulless parasites could create subprime, no doc, and Option ARM mortgages, sell them as packages to pension funds, bet they would collapse, beg for a taxpayer rescue, use the money to gamble in the stock market, and pay themselves billions in bonuses. That defines American capitalism today.

The banking elite have been so successful, the average American hasn’t realized their standard of living has been steadily declining for decades. Even using the fraudulent government manipulated CPI, real average weekly earnings are below the level of wages in 1964. Average Americans are making less than they did 46 years ago. In a fascinating coincidence, Alan Greenspan and his minions began "tweaking" the CPI calculation downward in the early 1980’s just as banks opened the spigot on easy revolving credit. Using the true CPI, as calculated by economist John Williams, real weekly earnings are 70% lower than they were in 1964. Revolving credit outstanding per household has risen by 1,100% since 1980. Knowing the average American doesn’t understand the concepts of inflation, interest or debt has allowed bankers and politicians to convince Americans they were getting richer when they were really descending into the abyss.

4 Here we sit in 2010. We are blessed with 4,300 Wal-Marts, 2,200 Home Depots, 1,500 Lowes, 1,000 Best Buys, 15,000 McDonalds, 11,000 Starbucks and 2 million other retail stores. Americans need to ask themselves whether cheap economy packs of tube socks were worth allowing small town America to disintegrate and blow away. Small businesses that were the heart of America in 1946 have been methodically driven out of business by predatory mega-retailers. The free market capitalists claim this has been good for America. Is it free market capitalism when these companies use their billions to buy politicians, zoning boards, and local officials? The next time you drive through a small town and see boarded up stores, for lease signs, and decaying infrastructure think about the true cost of big business capitalism. Succumbing to corporatism and debt financed materialism has resulted in a society marred by divorce, broken families, decaying cities, drugs, murder and police chases - the Potterville of It’s a Wonderful Life. Was it worth it?

Sympathy for the Devil

"When plunder becomes a way of life for a group of men living together in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it." - Frederic Bastiat

Frank Capra ended his movie on an optimistic note. This makes sense, as the U.S. was just entering a new High. There were bad people in the world, but the good people had just defeated the bad people in a World War. Good people had the support of God and his angels. Every time a bell rang, an angel got their wings. Today, every time a bell rings, a Goldman Sachs banker gets a bonus. The depressing truth is that Capra’s faith in Americans was misplaced. Evil has won out over good. The men of wealth and taste have stolen our souls and our faith. They’ve used their superior knowledge of money and power to obscure the nature of their game. This country was founded upon the rights of the individual, respect for property, freedom to succeed or fail, and power at the local level. Judge for yourself on the political and economic continuum below, where we stand today. I contend that we are much closer to a centralized military corporate fascist state than a true democratic Republic of the people, for the people, and by the people. Both political parties have been successful in shoving us in the direction of big government, corporate & banking oligarchic monopolies, never ending warfare, fiat currency, entitlements for the many, and riches for the few.

5If Americans understood the concept of systematic inflation, as practiced by the Federal Reserve, they would comprehend how the American Dream has been stolen by a narrow subset of privileged elite. These people live in penthouses, are chauffeured to their nightly galas, summer in the Hamptons, have prominent politicians over for dinner, and direct the largest banks and corporations in the world. Do you think they care about the George Baileys of the world? These are the people who expounded about the benefits of a global marketplace. Who received the benefits? Global markets weren’t free. The admired U.S. corporate titans like General Electric, Intel, Apple, and IBM shipped the $30 an hour American jobs to China where they only needed to pay $1 per hour. Corporations are designed for one purpose – to make money. When corporations and the people who run them are given unfettered control over society, money making and debt proliferation to support the money making become the only goals. Corporate media and corporate manipulated government officials then hammer the message that being rich is a noble goal. Mega-banks must be saved, we are told, because our way of life is dependent upon these modern day Potters.

6The wealthy elite keep the masses distracted with electronic igadgets that never leave our hands, new and improved five bladed razors, $5 cups of flavored foamy hot water, sexcapades of golfers, color coded terrorist warnings, military surges, and 600 HDTV channels with nothing worth watching. While Boobus Americanus was pre-occupied, the bankers stole their wallets. If it seems like we have a financial crisis every five years which "threatens the financial system", you are right. Have the wealthy bankers created these crisis episodes on purpose? Fifteen years ago, the combined assets of our six biggest banks totaled 17% of our GDP. By 2006, that number was 55%. Right now, it stands at 63%. The big four have 50% of the market for mortgages and 67% of the market for credit cards. Five banks have over 95% of the market for over-the-counter derivatives. Three U.S. banks have over 40% of the global market for stock underwriting. Does it make sense that after every crisis precipitated by the Federal Reserve and the mega banks that control it, the Fed accumulates more power (new Consumer Protection Agency) and the top 5 or 6 banks accumulate more assets as hundreds of small banks go out of business?

Frank Capra thought a suburban oasis, as reflected in Bailey Park, would protect Americans from Henry’s Potter’s nightmare world. He was wrong. America’s suburban sprawl has actually encouraged the onset of Pottersville. The suburbanization of America corroded much of what remained of community values. With its cookie cutter McMansions, lack of meaningful community space, suburbia fostered not neighborhoods, but individualized rampant consumerism. Americans live next door to people for five years without saying more than hello. This reality made it effortless for Americans to turn inward and disregard all but their own self interest. Instead of community identity flowing smoothly from the communication of citizens and neighbors, as in Bedford Falls, suburbia took on the personality of a sprawling concrete meca of four lane highways, regional malls, power centers, strip centers and stand alone 350,000 sq ft palaces of consumerism. The average family of 2.5 Americans huddles in their 3,500 square foot brick and vinyl castle on ¼ acre of chemical treated land during the week and crosses the drawbridge on the weekends in their $60,000 leased Mercedes SUV chariot to venture out to the jousting matches at the local mall, charging the entertainment on a 4 inch sliver of plastic.

In the end, America is left to extend and pretend. With a National Debt of $12.4 trillion and $4.4 billion of debt being added to that number every day, no amount of obfuscation by the Federal Reserve, elite bankers and corrupt politicians will successfully camouflage the road to ruin we are on. Is it too late to turn back? Until Americans experience another dose of horrific pain inflicted upon them by the ruling elite, they will not learn the simple lesson:

You can’t always get what you want, but you get what you need.

Only then will they have a chance to be the richest man in town, like George Bailey

© 2010 James Quinn

Bio: James Quinn is a senior director of strategic planning for a major university. These articles reflect the personal views of James Quinn. They do not necessarily represent the views of his employer and are not sponsored or endorsed by his employer. He can be reached at quinnadvisors@comcast.net.

James Quinn (215) 573-5404 Phone | Email

theburningplatform.com

Back to School for Debt Slavery

Gary Gibson

(Editor's Note: The following report is disturbing, in that it exposes the predatory nature of the methods that are being implemented by TPTB, to insure the abject serfdom of all future generations. Please pass this one on to your children and grand children. - JSB)

Housing isn't the only bubble the feds helped create. Debt has been driving up the price of all sorts of consumer goods for years. Higher education has been no exception.

Thanks to debt the feds make available for schooling - directly through federal student loans and indirectly by artificially lowering the cost of borrowing - schooling has been getting more expensive. The trend has accelerated in lockstep with the general postwar expansion of credit and with the acceleration of such that began in the early 1980's on Greenspan's watch. The rise in tuition is as fueled by easy credit and funny money as the now obviously unsustainable rise in real estate prices.

All that federal money is also encouraging the proliferation of trade schools who seduce prospective students and debt slaves with promises of marketable skills, stable work and new lives. This shameful business is getting more lucrative for for-profit and trade schools as more people, desperate for a new start as the collapsing credit bubble leaves them jobless, are roped in.

From a recent New York Times article...

"The stakes are enormous: For-profit schools have long derived the bulk of their revenue from federal loans and grants, and the percentages have been climbing sharply.”

"The Career Education Corporation, a publicly traded global giant, last year reported revenue of $1.84 billion. Roughly 80 percent came from federal loans and grants, according to BMO Capital Markets, a research and trading firm.”

The Apollo Group - which owns the ubiquitous University of Phoenix - got a whopping 86% of its revenue from the federal student aid money last year, up from a not quite as whopping but still disturbing 69% a couple of years ago.

Talk about misallocation! The feds themselves are feeding this beast...and then complaining when it gets fat. And they're also ready with more rules to rein in abuses they invite by tossing money where the market would never tread. They've been throwing money (taken from other people) at these schools, essentially rewarding them for saddling up their misled students with debt.

Let me make this clear: the government is taking money directly from you the taxpayer and shoveling it into these institutions that produce people with skills that won't pay the debts that they incurred to the feds. And to add insult to this injury, these institutions are simply lying to the people about that last part. They assure the patsies that for a measly $30,000 in federal debt, they'll get a useful career with remuneration on the order of $50,000 or so per year. But the odds are strongly against that.

This really isn't that complicated, to wit: make false promises of income in order to get people to fork over their money. It's your basic scam. And the feds make it profitable...with other people's money. And that's the part that should bother you because all of that money comes from the stuff they withhold from your paycheck and demand you pay in capital gains every year.

While these schools won't promise anything in writing, they do indeed do everything to imply that they're the magical doorway to new careers that pay well. Prospective students line up with federal dollars in hand. If these schools actually had to scrap for scarce private dollars (that is, compete), the force of competition would tend to do two amazing things: weed out the less effective schools and keep prices down. But the availability of federal funds (money in the hands of central planners who didn't earn it) predictably causes distortions. Things that should have died or never have been born end up thriving. The schools grow fat on public money; Prices are artificially inflated by the availability of that very money. The debt incurred by the students through which the money moved from the public to the schools becomes bigger than the return on the investment.

That the federal government spends your money this horribly is comic in its inevitability. The tragedy here is that these schools don't really teach these students anything useful, and if it weren't for the federal funding via student loans, the number of these schools wouldn't be nearly as high. They might not exist at all.

In the past, people who wanted to learn a skill would apprentice themselves under other people who were already good enough at it to make money at it. For most careers you didn't need an official course of study and a piece of paper; you needed to be willing to start at the bottom and learn from people who'd gotten good enough to make a living.

The New York Times article used the example of one culinary arts school...

...Several local chefs said the program merely simulated what students could learn in entry-level jobs.

"When they graduate and come in the kitchen, I tell them, ‘I'm going to treat you like you don't know anything,' " said Kenneth Giambalvo, executive chef at Bluehour, an upscale restaurant in Portland's Pearl District. "It doesn't really give them any edge.”

What the school does give many students is debt, often at double-digit interest rates - debt that even bankruptcy cannot erase without a lengthy, low-odds legal proceeding.

To underscore the point, however, let's look to one of the most revered and ancient professions: bartending.

How does one go about getting such a great gig? Some advice from random, anonymous folks who've made a living out of it follows. Take it for what it's worth:

"...A bartending course will not get you a job in a bar. In fact, in most of the bars I worked in for over ten years, all it would have gotten you was laughed at. Find a bar you like the atmosphere in, and start chatting up the bartenders. Let them know you're interested in learning more about how bars work, and you'd be willing to barback for a while for free to see if you liked the work. Once you get to that point, work your ass off. Show enthusiasm, a cheerful disposition and interest in helping the bartenders and learning their craft.”

Could bartending schools be that big a waste of time and money?

"Yeah, bartending schools are scams. Even if a degree from one would actually get you a job in the business (which it never will), it would still be a better use of your time to get experience first. My advice is to get into serving at a pretty big chain restaurant, like an Applebee's or some such. The advantage to these places is that they have great training programs in place, and they also have higher turnover than most places (since a lot of people work there to build a resume). That's how I got behind the bar- six months on the floor, and as soon as one of the bartenders walked off his shift I was scheduled for bar training. Why pay $300 for a course when all you have to do for server/bar training at a restaurant is work for minimum wage (or maybe less than) for a few days? Trust me, when the cash starts rolling in, it is very worth it.”

School can indeed be a waste of time, you see. This isn't always the case - and some things need years of formal schooling - but how do we determine which things require serious school time, and which schools are worth going to? Well, the market tends to sort things like that out...at least it does when governments don't distort the picture by throwing other people's money into the mix. If a school - or anything else for that matter - wouldn't exist without federal funding, then odds are pretty damned good that it's either a boondoggle, a scam, or some marriage of the two.

As comically unnecessary as most people in the relevant industry seem to think bartending schools are, those schools have a price that reflects the market's opinion of them. Bartending school is relatively cheap, less than $1000 to complete the course in about a couple of weeks. They may largely waste the enrollee's time - and a nice little chunk of his money - but it won't turn him into an indentured servant for the rest of his working life. You have to wonder if this would still be true if bartending schools were eligible for federally-funded student loans.

Actually, you don't really have to wonder at all.

Regards, Gary Gibson Managing Editor, Whiskey & Gunpowder

March 19, 2010

Author Image for Gary GibsonGary Gibson is the managing editor for Whiskey & Gunpowder. He joins the Whiskey staff as a long-time fan and reader of both Whiskey & Gunpowder and the Daily Reckoning. A graduate of Fordham University, Gary now spends his days reading about and writing on limited government, sound money, personal responsibility and resource investing. Special Report: From Hulbert's No 1-Ranked Advisory Letter Over 5 Years, GOLD $2000 REPORT: Five entirely new ways to play the gold trend and a hidden way to snap up gold- for less than one penny per ounce!

whiskeyandgunpowder.com

OBAMA, HYPNOBAMA

Data: Sabato, 20 marzo @ 17:10:00 CDT Argomento: Informazione DI MARCO DELLA LUNA E PAOLO CIONI Il politico è per sua natura e necessità un manipolatore. Un impiantatore di verità, di valori, di emozioni, di certezze. Deve far proiettare su di sé le loro aspirazioni e apparire come plausibilmen- te capace di realizzarle. Se non ci riesce, ha perso. Non è un neutrale, scientifico, obiettivo e disinteressato informatore del popolo. Egli vuole ottenere determinate cose dal popolo. Si deve servire del popolo. Manovrarlo. Gli elettori sono per lui uno strumento da usare, quindi non può rispettarli come soggetti liberi, consapevoli e auto-determinati, né considerarli sul proprio piano – anche se ciò non esclude che egli possa voler agire anche per quello che egli considera il loro interesse. Mezzi e fini della gestione del potere, come prima di noi aveva spiegato Machiavelli, non sono palesabi li all’opinione pubblica perché non li accetterebbe o perlomeno diverrebbe più difficilmente governabile. La comunicazione verso il pubblico della politica vive quindi nel makebelieve: al popolo si parla sempre entro una rappresentazione della “realtà” avente caratteristiche accettabili e comprensibili per il popolo stesso. Recentemente il mondo ha assistito alla campagna elettorale presidenziale negli U.S.A. e alla strepitosa vittoria di Barack Hussein Obama. Strepitosa sia per le sue dimensioni, sia perché egli ha riunito su di sé entusiastici consensi di settori sociali, etnici, religiosi tra loro distanti (era approvato da Hamas e altri estre- misti islamici, ma l’hanno votato anche gli Ebrei); sia per l’aura messianica o mosaica che molti milioni di persone, in patria e all’estero, avvertono intorno a lui; sia e soprattutto per il fatto che tutto questo consenso e questa gigantesca aspettativa di grandi cose si concentra su una persona che non ha mai fatto alcunché di significativo, che non ha mai dato prova di avere capacità reali, anche solo lontanamente adeguate alla sua promessa di un cambiamento generale (promessa peraltro rimasta nel vago). Quindi quel consenso e quell’entusiasmo sono oggettivamente incongrui con la realtà. Scaturiscono da una dimensione diversa, soggettiva, irrazionale – verosimilmente da un vissuto immaginario in cui la grandiosità delle promesse e dei toni di Obama hanno acquisito una realtà anti- cipata – forse l’unica realtà che acquisiranno mai. A che cosa si deve un siffatto successo? È stato forse costruito in modo tecnico? Circola in Internet, sotto il titolo An Examination Of Obama’s Use Of Hidden Hypnosis Techniques In His Speeches, un’anonima analisi psicologica della campagna elettorale di Obama, anzi delle due campagne – quella per la nominatione quella per l’election– che ravvisa all’opera una serie di armi di persuasione ipno- tica e attribuisce a esse il trionfo di Obama (non ancora coronato dall’elezione, al tempo in cui il documento è stato formato). Obama sarebbe, secondo l’anonimo autore, innanzitutto un abi- lissimo ipnotista che avrebbe usato le tecniche ericksoniane per compensare la mancanza di altri mezzi. La suddetta analisi psicologica osserva preliminarmente i caratteri carismatici, irrazionali, irrealistici della fede in Obama, le cui “percezioni popolari sono dimostrabilmente incompatibili con i suoi conseguimenti, la sua storia, il suo retroterra”; però “collimano perfettamente coi messaggi che si scopre che Obama manda, indirizzandoli alla percezione subconscia”. Molti seguaci di Obama – continua lo studio in questione – sono tanto presi dalla passione da svenire in sua presenza o da paragonarlo a Gesù o sentirlo come un J. F. Kennedy redivivo. Obama inequivocabilmente usa la sopradescritta tecnica del ricalco (pacing) e della sequenza di affermazioni ovvie e consenta- nee per indurre un abbassamento della vigilanza critica su ciò che dice. Affermazioni di tal tipo sono: “Adesso è il momento”, “Mentre sto dinanzi a voi”, “Ecco perché stanotte sono qui”, “Abbiamo bisogno di cambiamento”, “Sì, possiamo”. Esse sono ripetute più volte nel medesimo discorso, e sono solitamente inserite dopo l’evocazione di un problema o la prospettazione di un obiettivo. Ossia, Obama menziona un male comunemente sentito (disoccupazione, guerra), qualcosa che deve essere corretto, e fa seguire un’affermazione del tipo “È ora di cambiare”. Poi enuncia un obiettivo moralmente con- diviso (assistenza sanitaria per tutti) e fa seguire un’affermazione del tipo “Sì, possiamo”. Poi ancora richiama ideali nazionali, come la promessa di prosperità, e afferma il dovere di mantenere questa promessa. Queste tre linee, insieme di comunicazione e di condivisione, convergono nell’affermazione clou “È per questo che sono qui ora” – ossia: “È per questo che dovete votarmi”. Le tre linee di consentaneità e ovvietà, di approvazione anche morale, accreditano quanto Obama dirà come verità assoluta, rivelazione, sottraendolo al vaglio della logica. A ciò contribuisce anche il pacing della respirazione, che Obama esegue con alcune specifiche locuzioni idonee a suggerire il movimento respiratorio, come “Together we rise… and fall”, ossia ossia “Insieme saliamo… e cadiamo”. Con tali tecniche l’oratore ottiene anche di rafforzare la focalizzazione dell’attenzione su di sé: l’ipnosi è anche concentrazione, polarizzazione dell’attenzione, dell’interesse. Obama parla in modo innaturalmente lento, cadenzato, con frequenti pause mediante le quali ti tiene in sospeso a ogni due o tre parole. Ciò dà peso e potenza anche a frasi troppo generiche per avere un significato reale. Le pause danno tempo di lavorare alle emozioni, alle immagini, alle evocazioni suscitate dalle varie suggestioni. La mancanza di significato concreto e analizzabile dei suoi discorsi (che durano mediamente il doppio di quelli usuali) distrae l’intelletto dalla meta-analisi della complessiva situazione (cioè dal chiedersi che genere di situazione sia questa, che cosa voglia l’oratore, che cosa stia facendo, per quale scopo stia parlan- do in questo strano modo); inoltre infligge all’intelletto una serie di frustrazioni, perché esso non sa su che cosa lavorare, oppure deve lavorare a vuoto sulle frasi vuote. Davanti a frasi vaghe, come “Chi ama questo Paese può anche cambiarlo”, la mente subconscia si mette a colmare i vuoti semantici con materiale proprio, a cercare significati possibili, e tendenzialmente finisce per trovare e scegliere quello che più le aggrada. Così il medesimo discor- so politico e la medesima promessa possono essere adatti a persone che hanno sensibilità e interessi divergenti. Tutto ciò induce la disattivazione della funzione critica a vantaggio dell’opera di influenzamento subconscio. La psiche del- l’ascoltatore si dispone a ricevere il discorso di Obama non come un ragionamento da capire e analizzare, ma come una melodia da gustare e a cui abbandonarsi. Ossia, lo riceve attraverso l’emisfero destro, l’emisfero non dominante. In effetti l’eloquio di Obama è sensibilmente musicale. È stato detto che parla come un rapper. Dopo la melodia, le immagini. Le immagini sono uno strumento molto efficace perché attivano processi irrazionali e molte associazioni aventi contenuto emotivo; inoltre, dirigono l’attenzione verso l’interno, distogliendola dal contesto oggettivo. Le immagini evocate da Obama e ricordate dall’anonimo autore sono “voltar pagina”, “una brezza sta soffiando da una parte all’altra della nazione… e il cambiamento è nell’aria”, “scrivete il prossimo capitolo nella storia d’America”. A questo punto Obama è penetrato ai livelli inconsci, e può iniziare l’impianto dei comandi ipnotici – ossia suggestioni, affermazioni del tutto indimostrate e derivate dalle premesse mediante un nesso solo apparente: egli cita alcuni temi sociali come un miglior salario per gli insegnanti o una buona assistenza sanitaria per tutti (valutazioni generalmente condivisibili), e continua affermando “Abbiamo bisogno di cambiamento… ed è per questo… che sarò il vostro prossimo Presidente”. Che ci sia bisogno di un cambiamento è ovvio, è un sentire condiviso. Ma non è ovvio né dimostrato perché Obama sia adatto a produrre quel cambiamento, quelle riforme, non avendo egli mai dimostrato di avere capacità al riguardo. L’espressione “è per questo” esprime un nesso di implicazione logica tra “Abbiamo bisogno di cambiamento” e “sarò il vostro prossimo Presidente.” Ma nella realtà, ossia esaminando l’affermazione criticamente, non si trova alcun nesso reale tra “Abbiamo bisogno di cambiamento” e “sarò io il vostro prossimo Presidente”. Non sequitur. Analogamente, Obama richiama i vari problemi, innanzitutto quelli economici, e fa seguire l’affermazione “ed è per questo che voglio essere il vostro prossimo Presidente”, come se fosse una conseguenza di quanto detto prima. In realtà, per farne una conseguenza bisognerebbe che Obama potesse dire “ed essendo io competente in questo campo (militare, economico, sociale), come ho dimostrato in questa e quella occasione, sono la persona adatta a risolvere il problema; perciò è vostro interesse votarmi”. Ma non può dire ciò, perché una tale affermazione suonerebbe falsa, non avendo egli dimostrato alcuna competenza macroeconomica. Non può dire quello, ma in fondo non ne ha bisogno. Gli basta costruire la carica di scontento verso il presente (in effetti, nei suoi discorsi sorride di rado, appare sovente accigliato, severo), di desiderio di cambiamento e di consenso col suo pacing, per poi arrivare alla conclusione affidandosi non al nesso logico ma al trasporto, all’abbrivio emotivo e cognitivo della folla, per così dire, che a livello inconscio e soggettivo coglie un legame causale (finto) tra le varie proposizioni e lo scambia per una dimostrazione della verità della conclusione. La severità, la censorietà di cui Obama si carica nel criticare il presente, si concentrano nella punta del suo dito quando egli, impiegando il linguaggio del corpo, fa il gesto di indicare a braccio teso, aggrottando le sopracciglia, così da assumere il carattere di un potente e autorevole capo – uno i cui comandi vanno obbediti, senza che si noti che in generale le affermazioni che egli, come quasi tutti i politici, ricorrentemente fa, sono tanto emotivamente forti quanto contenutisticamente vuote: “marciare nel futuro”, “possiamo cambiare”, “è tempo di nuova energia e nuove idee”. Un altro gesto strano e tipico di Obama è unire, in determinati passaggi dei suoi discorsi, indice e pollice (gesto che in America, evidentemente, non ha lo specifico significato che ha in Italia). In tale gesto l’anonimo autore dell’analisi che stiamo compendiando ravvisa un segnale che attiva un’ancora ipnotica (nel precedente paragrafo abbiano spiegato che cosa è un’ancora). Esaminando l’uso che Obama fa di esso (e soprattutto di come Obama prima punta l’indice al pubblico, poi lo unisce al pollice), ritiene che la sua funzione sia quella di operare un’associazione tra se stesso, la fame di cambiamento (comunque ciascuno lo immagini per sé) e l’impugnare la matita con cui gli elettori voteranno nella cabina elettorale, in modo che allorché prenderanno la matita tra l’indice e il pollice per votare, si attivi l’associazione con Obama stesso e il suo verbo messianico di “cambiamento”. Una immagine rinforza quest’ancora: quella, già citata, del “voltar pagina”, che concor- re a costellare l’esperienza del voto in cui l’elettore in effetti ha da girare una pagina: la scheda elettorale. Per quegli stati dove si vota pigiando un tasto, Obama completa l’ancoraggio continuando il gesto delle due dita col puntare l’indice in basso – cioè compiendo il gesto di premere il pulsante, ma che è insieme, nel linguag- gio del corpo, un gesto di potenza, di imperio; e fa ciò accompagnandosi con l’altisonante ma oggettivamente insignificante affermazione “Non c’è destino che non possiamo compiere”. Un ulteriore strumento del linguaggio corporeo adoperato da Obama è l’inclinare il capo a destra. Esponendo la vena giugulare a un possibile aggressore o avversario, questo gesto, per un riflesso atavico e proprio a molte specie animali, innesca negli altri una reazione istintiva di rinuncia all’aggressività – nell’uomo, anche all’aggressività intellettuale, critica, politica. Obama naturalmente usa anche la tecnica delle storielle ipno- tiche. Egli racconta, nel suo ritmo lento e cadenzato, storie appa- rentemente riferite a se stesso e al passato, ma che chi lo sta ascol- tando vive come proprie e attuali, in cui egli si siede in silenzio, si rilassa, raccoglie i pensieri e si ritrova a riflettere su se stesso. Il “sedere in silenzio” è un ricalco del vissuto del pubblico, che appunto sta a sedere in silenzio mentre Obama parla. Il “raccogliere i pensieri” induce la concentrazione sul vissuto soggettivo. Il finale “riflettere su di me” (con un forte accento sul “me”) si accompagna al gesto di indice e pollice, per il già noto ancoraggio subliminale. La storia ipnotica contiene una serie di inviti a immaginare sedici mesi di tempo, poi grandi distanze nello spazio, poi un milione di voci… ossia, inviti a formarsi immagini sempre più difficili da visualizzare consciamente. È una china, questa successione di comandi, che porta al blocco della mente consapevole per impossibilità di esecuzione del compito che essa ha ricevuto e accettato, così che l’emisfero non dominante resta sguarnito e indifeso alle suggestioni che seguono – un passaggio radicalmente irrazionale, arbitrario, prettamente propagandistico e demagogico (il neretto indica l’enfasi): “Noi stiamo insiemea mia voce viene udita… perché voi avete detto… perché avete decisoche il cambiamento deve avvenire… perché avete creduto[gesto-ancora] che quest’anno sia diverso da tutti gli altri… perché voi avete scelto [gesto-ancora] di ascoltare[tema del trance nella narrazione] le vostre più grandi speranze, le vostre più alte aspirazioni… noi portiamo un giorno nuovo e migliore… Stanotte io posso stare qui e dire [ricalco] che sarò il candidato democratico… il Presidente degli Stati Uniti” [puntando con la mano in basso (come per toccare uno schermo o premere un bottone di voto): gesto di comando]. Messaggio profondo, implicito: “Se voi volete rimanere in sintonia con tutto questo che io sto evocando e che vi fa sentir bene e protagonisti, con questa potenza, con questa vostra speranza, allora dovete votare me”. L’autore dello studio in esame lancia la sua opera come una denuncia di un attentato alla democrazia e come un appello a opporsi a esso. Ma, anche se l’esito dell’elezione pare confermare l’analisi in parola, non pare a noi che, anche qualora Obama sia stato eletto grazie alla suggestione subipnotica, ciò comporti un reale e allarmante cambiamento o un attentato alla democrazia. Non è razionale demonizzare Obama per l’uso dell’ipnosi: la gente sempre è ipnotizzata o, alla meglio, vota senza cognizione di causa. Il politico vince sempre sul fattore ignoranza-inganno. Vediamo invece la grande vittoria di Obama come un’autorevole conferma delle nostre tesi sulla “democrazia”. Il nostro commento è piuttosto che le capacità con cui si vince sono una cosa, e quelle necessarie per governare sono una cosa in gran parte diversa – anche se aver prodotto un grande entusiasmo dietro di sé è un notevole aiuto anche per governare, perlomeno all’inizio.
Alla prova dei fatti, una volta eletto Obama ha preso clamorosi provvedimenti contro la recessione e la sfiducia economica, che però stanno avendo (scriviamo ai primi di Marzo 2009) risultati negativi. A questo punto, per mantenere il tipo di consenso fideistico che lo ha portato alla Casa Bianca, nonostante gli insuccessi e l’aggravarsi della recessione, Obama dispone di diversi strumenti di lavoro sulla mente popolare. Ovviamente può lanciare una campagna di mobilitazione, estendibile fino alla guerra, contro “colpevoli” esterni della recessione – dalla minaccia terroristica iraniana alla concorrenza sleale della Cina. Può lanciare una campagna isolazionista e protezionista. Può anche giocare al rilancio della speranza e della posta – ossia, può sostituire le speranze tradite dai fatti con promesse e speranze ancora più alte e fascinose, tali da giustificare un ulteriore investimento di fiducia. Per altro verso, a ben riflettere, un ascoltatore lucido e razionale non avrebbe avuto bisogno dell’analisi tecnico-psicologica che abbiamo qui svolto per scartare in blocco come ingannevoli e insinceri i discorsi di Obama e non perdere tempo ad ascoltarlo: se si guarda al loro contenuto concreto, si trova che questo è praticamente assente, e che il poco che sussiste è vago e adattabile in molte direzioni, quindi non vincolante, non impegnativo per chi lo enuncia. E che mira fortemente alla suggestione. Ciò vale peraltro per la maggior parte dei discorsi dei politici, democratici e non democratici che siano (vedasi, come esempio di programma politico di un non democratico, il mussoliniano Programma di San Sepolcro). Inoltre, se si guarda al passato di Obama, dalla laurea in poi, si riconosce una storia di personaggio politico preparato nell’alveo del- l’estasblishment americano, quindi tutt’altro che “vergine”. Tuttavia, la maggior parte del pubblico non è alla ricerca dell’obiettività. Il motivatore delle folle è soggettivo, è il sentirsi meglio nell’entrare in un certo stato psichico, in un certo sistema di emozioni e idee. Questo sentirsi meglio produce fiducia nei fattori che lo generano: nella persona del leader carismatico, nelle sue tesi e promesse. Lo testimonia un noto colonnista, Michele Bader62, il quale racconta il proprio volontario cedere al fascino di Obama, a cui egli, pur razionalmente riconoscendo la inconsistenza dei suoi discorsi, si abbandona, perché l’abbandono a esso gli consente di uscire da una disposizione mentale e culturale fatta di distacco, disinganno, “coolness”, e dal conseguente senso di vuoto esistenziale, per ritrovare l’entusiasmo della militanza partecipativa. Qualcosa di analogo al vissuto gratificante di L. mentre i suoi soci la defraudavano, e, in generale, al vissuto dei convertiti: trovare un nuovo gusto nella vita, ecc. Un bisogno soggettivo si afferma e si appaga attraverso comportamenti che hanno consistenza ed effetti oggettivi, ma che, sul piano oggettivo, sono inadeguati per il soggetto manipolato e utili per il soggetto manipolatore, il quale abilmente condiziona i suoi seguaci ad appagare tali bisogni oggettivi mediante atti che recano a lui vantaggio oggettivo, dal voto elettorale alle donazioni, al lavoro gratuito. Naturalmente anche il leader carismatico, religioso o laico che sia, riceve una gratificazione psicologica – la gratificazione di ritorno dovuta al plauso e all’entusiasmo che egli ha suscitato. La dipendenza può in tal guisa divenire reciproca e svilupparsi in un feedback positivo che amplifica la fiducia fino al fanatismo, alla sopravvalutazione dei propri mezzi, alla perdita di contatto con la realtà ed eventualmente a esiti estremi. Tratto da: Marco Della Luna, Paolo Cioni - "Neuro Schiavi Tecniche e psicopatologia della manipolazione politica, economica, religiosa. Manuale scientifico di autodifesa" - Macro Edizioni (pag.231-240) Per gentile concessione dell'editore SCHEDA LIBRO
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