Hate To The Left and Right of Us

I’ve never before re-posted a blog. But what follows is my post prior to the election of Donald Trump. It pains me to say it is more relevant since his election than before it. (Originally posted September 23, 2016).

My co-blogger, Steve Clark, texted me a link earlier today with the following comment: “This is what passes for journalism!” So, naturally, I had to click through.

love-and-hate

Where I landed was at GQ online and an article by, correspondent and author, Drew Magary titled, “If You Vote For Trump, Then Screw You.”  Creative and engrossing title, don’t you think?  Yeah, me neither. Not so much. But, in all fairness, and since I respect Steve, I read the article. So I fully understand Steve’s incredulity.

It’s an adolescent, vulgar, profanity-laced rant by…well, an adolescent. I’d say more about the “correspondent” but that sentence pretty much sums up space occupied by nine paragraphs of filth and unrestrained emotional immaturity. I’d much rather write about how Magary’s rant is symptomatic of something much larger.

We are a nation divided and that’s not a bad thing. From true diversity of thought comes new ideas. When it comes to problem solving, difference is the petri dish of creativity. The catch is that each side of the divide has to honor the differences of the other so that they can communicate and, hopefully, zero in on the merits of each others’ arguments. Name calling, accusation, disrespect, hyperbole…these are impediments to problem solving. All they do is cause the object of their slings and arrows to defend positions rather than remain open and receptive to possible solutions.

The real harm of the verbal filth spewed by Magary in his self-indulgent tirade is not done to Donald Trump. To give him credit for his honesty (evidenced by the article’s title) Magary makes his intention pretty clear. His hatred is directed at anyone who sees merit in the candidate or who would vote for him. So, Magary hates his fellow Americans who disagree with his particular political preference.

Where does such intolerance and narrowness of thought leave us?

If we take the Magary approach, close to half the country needs to hate the other half. To me, this is a bit like using your left arm to beat up your right arm if you have an irritation. While it may, in the moment, address a superficial and temporary annoyance, in the long run (and we need to think about the long run) you will have done serious damage to a part of you that needs to be functional and cooperative.

You see, there is only one of us. Yes, you read that correctly, There is only one of us. We are all branches on that one tree called humanity. It serves no one, and nothing, for us to treat one another as if harming someone else never comes back to harm us.  Hatred, whether its the fuel for Islamic terror or fuel for a so-called “correspondent”… is still hatred.  Hatred is a cancer of the soul and does as much damage,  perhaps more, to the host than it does to its intended object.

After all, there are only two emotions. Love and fear. Every negative emotion, including hate, is a derivative of fear. So in the end, the Drew Magarys of the world are afraid. Of what, I don’t know. But so much hate is really so much fear.

So, I would recommend that Drew Magary re-think what’s eating at him ( literally I might add) and perhaps understand that there are people out here who seriously disagree with him but who love him all the same.

The Answer To Suffering

A farmer and a blue collar worker were in line to vote last Tuesday. Someone overheard their conversation in which both were sharing that they had not had a good year financially since 2000. That’s 16 years. They were suffering and they were voting for Trump.

hope

I know a lot about suffering. It’s the same whether it’s an individual or the collective consciousness of a nation.  My knowledge and understanding comes from years of suffering depression which culminated in an attempted suicide at age 24. Individuals, like nations, who misplace hope and choose suicide as an option, don’t really want to die. Notice I said, “misplace” hope. Hope is never gone…but when suffering is prolonged enough and there seems no cure for its cause and no end in sight, hope gets obscured by the pain. And when the pain is bad enough, rational thought is cast aside for any solution, regardless of how irrational or self-destructive.

A person may choose suicide as a seemingly rational end to their suffering. But what does a nation filled with people who have misplaced hope do?

The seeds of national suicide were sprouting in 2008. Barack Obama, and the Democrats recognized this and so, knowing the nation was suffering, offered “Hope and Change”. They ignited the flame of hope that the nation was in need of and with that held out the promise of an end to the early stages of suffering. But the promise was empty and as time passed, the pain and suffering grew more intense.  With that increased pain, came a decreased optimism…hope…that there was a “cure” or light at the end of the tunnel. In fact, from 2008 until now, that light has been progressively (no pun intended) harder and harder to see.

Pain and suffering increased over the past eight years to the point that hope was obscured and with it rational thought.  What resulted was a populace who would, in its desperation, settle for giving the most powerful position in its nation to either a greedy thief or an egomaniacal illusionist. We chose the illusionist.

That is how a nation commits suicide.

My experience of attempted suicide taught me an invaluable lesson. It’s the certainty that hope always exists; it’s just up to us to have the patience and determination find it. Donald Trump will not save us for he was chosen in a period of national darkness. Whether he is well intentioned or not, there are those around him who recognized our perilous time of suffering and glammed on for the ride and for their own agendas, not for the national best interest.

When I was in the emergency room, I had an out of body experience. As they were pumping the drugs out of me, I was up in the corner of the room, looking down at what they were doing, and thinking, “Why don’t they let that body go?” At which point I “felt” a distant voice say, “You have to go back, Carole, you have work to do.”

Our nation is on that table. We are looking at it and wanting the suffering to stop and for the pain to go away. There are no guarantees. But this I know.

Hope exists if we are patient and determined to be the best we can be. No one will save us but for ourselves. Giving it over to someone else is an act of suicide. Its up to us to demand of ourselves personal accountability. Its up to us to demand of our government accountability to the founding principles. So, fellow citizens, we have to go back. There is work to do.

Carole Gold

 

Theft in The Financial Markets

Many people in positions of  power tend to think of themselves as being God-like.

bankers-theft

No where is this more apparent than among the financial and government planners who beset the West. Educated at the best schools and responsible for the finances of the rich and powerful, it is understandable that they think of themselves way. They have come to believe, due to their education and responsibilities, that they know better than mere mortals. This hubris and arrogance was given credence in part by a British economist named John Keynes.

Keynes developed an economic model of thought which asserted that the government had a rightful role to play in the financial markets. Central to Keynes’s theory was the premise that the economy was just a matter of inputs and outputs that could be tinkered with to effect greater efficiency. The main thrust of Keynes’s argument was that whenever the economy stalled the government had an obligation to inject money into the economy to get it moving again.  Keynes’s theory is known as “Keynesian economics” and his disciples now act as the main policy makers in the West.

Today, it is standard practice for government officials to start meddling in the private sector whenever there is a slowdown. They cite Keynesian economics for their actions. During recessionary times, government officials will increase public spending, create more public works projects and inject money into the banking system. President Franklin Roosevelt and Barack Obama, both presidents during recessionary periods,  resorted to massive government spending to aid the economy.

Keynesian economics has become the dominant form of monetary policy today in government circles. The way policy makers inject money into the economy is by lowering the cost of money. They do this by manipulating the financial markets. The idea behind it is that cheaper money will stimulate the economy and create new jobs.

For example, during the last eight years, most major central banks have been buying their own debt to lower the yields. But these lower yields have not spurred any economic activity. Rather, it has caused actual investors to earn less interest income. If government bonds actually yielded something tangible, private investors would be earning a return on their money and putting that money to productive use. But since that money is not going to individual investors, the economy is continuing to stall.

The slower growth that we have seen over the last few years has pushed the government to enact more and more policies for even cheaper money. The end result is that, in many countries, we now see negative interest rates.

Figuring out what interest rates should be is not hard.  Take GDP growth (currently 2%) and add  2.5% for inflation and you get your money which should be 4.5%.  However, currently bond yields are only 2.15%. The difference between 4.5% and 2.15% rates is the money that is being stolen by these bad policies. Given the size of the market, we are talking billions of dollars that are not flowing into the private sector.

For some reason, this theft by the government is never reported as such. Instead, we use the terms “quantitative easing”, “buy backs” and stimulus packages to mask the central planners’ actions.  Call it what you will, its theft.

Pension funds, IRA’s, and retirement plans all use the rates on the bond market to plan their investments. However, because the bond markets have been so distorted by government interference, the yields that investors were expecting are no longer there. Investors have been forced to speculate and invest more heavily in the market to recoup this “stolen” money.

The scope of this government manipulation of global stock and bonds markets is enormous —larger than the U.S. government’s manipulation of housing prices when they kept rates low and used Fannie Mae and Freddie Mac to back housing loans. Most economist believe central banks around the world have created more than $11 trillion in new money, all of which has been invested in financial securities, real estate and commodities. The amount of government investment and intervention has never before been done on such a massive scale.

There is simply no way for this to end well.

Eventually, markets  always correct themselves. The U.S. stock market is trading at record highs and at record-high valuations; but, earnings have fallen for five straight quarters. This simple observation is obvious to many but somehow not to our elected leaders. The world’s major economies are groaning with inflated securities prices and a debt burden they can not afford.

Who knows what will happen when investors realize that the party has ended? When investors scramble for the exits, there will be nowhere to go. By law (The Volcker Rule and others) banks will not be able to act as as intermediary for the majority of these trades.

We have forgotten the seed of all growth is capital. Capital is essentially the surplus from our economic activity which is then used to fund future growth. With rates being what they are, investors are being forced to risk and speculate in the markets and not save that all  important seed —  capital. Our government policies are discouraging capital formation.

When the market implodes, and it will, there will be no capital stored up to start over. It will all have been destroyed. So while we’re distracted by demonstrations and the illusory insanity of politics, the very foundation of our thriving nation has been eroded right before our eyes by the very people we trust to use good judgment in protecting it.

 

Steve

sleeclark@gmail.com