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Reaganomics & The Free Market End Game

 

As Reaganomics begins to take effect, it becomes the straw the breaks the back of the U.S economy.

Beginning with the depression and Word War II the U.S. economy had become essentially a war economy. The means of production gravitated away from products and services oriented toward human use and needs to the production of war materials. Incidentally, this also includes the migration of wealth away from cultural arenas such as the arts, and human need arenas such as health and education. The reason was obvious: the bureaucratic environment of graft guaranteed that profits went far beyond even unreasonable expectations. Inferior military products became the norm, manufactured only because they occasionally needed to be proven effective, and since the military product was susceptible to the constant changes in technology, the products could safely be scrapped and reinvented on a constant basis.

American resources, R & D, education and production were all oriented to this end. When the economy flagged it became necessary to stimulate enemies, wars and conflicts in order to manufacture the public consent necessary for more money to be funneled into the military industrial complex.

By the 60's and the Vietnam war, America was just on the edge of losing its competitive edge in relation to the rest of the industrialized nations, who had recovered from the destruction that World War II had inflicted on their means of production. The Vietnam war was the longest in U.S. history and it broke the bank simply because America had failed to recognize its need to once again become competitive instead of complacent; it needed products and services that answered human needs not corporate profits, and because the actual fighting of war was no longer profitable. Ideally only the manufacturing of war machines is profitable. The actual fighting is expensive indeed, when it can no longer be fought in an informational vacuum. The technology and industry of war had become far more costly than the return in profits on the manufacturing of unused and unnecessary war materials.

War is not profitable.  The threat of war, like the marketing of religious pipe dreams, is pure profit. Pure profit is holy grail of something-for-nothing economics, the basis of free market fundamentalism.

And so, the second major arena of Reaganomics became the pursuit of something-for-nothing economics in the form of the most effective organized theft institution yet to appears in the long saga of human folly: the wealth market. The stock market, money markets and all other instruments and means of brokering the manipulation of wealth do not produce wealth; they transfer wealth from the populace, primarily the middle class, into the coffers of an economic elite. This is neither productivity nor wealth; it is theft.

To this end the idea of trickle-down economics is periodically introduced. The propaganda claims that by transferring huge chunks of public and private wealth into the coffers of the wealthy elite, that R&D will occur, new jobs will be created and wealth will flow down to the industrious lower and middle classes. In reality the wealthy elite simply pocketed the money and shut down production.

When it became apparent the debt created by useless wars, the threat of war and economic theft systems was becoming too noticeable, the debt was cleared by means of burdening the public with credit card like debt to be passed on to future generations.

The debt was passed on, but the means of producing wealth, jobs and education were curtailed.

Already, by the end of the Vietnam war the American economy was broke and the means of producing wealth by producing useful human products had seriously deteriorated. We had forgotten how to make a better automobile, how to educate the people and how to maintain the economic infrastructure.

In the meantime the global economy had become integrated. National economies no longer operated within vacuums.

The last half of the 70s were spent trying to tax and spend our way into economic recovery. It failed.

With Reagan and Company, the economy took yet another radical turn into dementia. The economic theory of "Free Market" was put forth. It was neither free nor a market.

It was not free in that it was a tightly controlled corporate monopoly of the market. What used to be a market became a ranch of economic cattle. The entire philosophy of free market fundamentalism was based on a pyramid scheme. The idea was to produce as little as possible for as small a cost as feasible, and sell to a monopolized market thoroughly insulated from all competition. The idea was to absorb wealth at the top of the pyramid by plundering the base. The base in turn is to pass it on to an ever increasing population, to a new and wider base. But the possible number of bases are finite. Hence increasing population is critical to free market schemes in order to have a new base of poverty to pass the debt on to. When resources become finite and the base becomes economically incapable of paying the debt, the next option is to pass the debt on to future, unborn generations. The irony is that anti-abortion fanatics who espouse the rights of the unborn are more than willing to not only ignore the rights of the children of other nations, but are perfectly happy to remove the economic rights of the future generations of their own unborn.

When passing the buck to the top and the debt to the bottom reaches it limit, the solution is to wipe out the debt by wiping our the base of the pyramid, usually through war and or depressions.

By the early 80s the resources were limited indeed relative to the consumption of the increased population. The base was broke. Mere manufacture of military hardware no longer sufficed to keep the economic fantasy afloat. Actual war was too costly so it became necessary to replace war with the threat of war. To have implacable enemies without the expense of war was what was needed. This dovetailed well with the underlying principle of the service economy. This was an enhancement of the root philosophy dating back to the 20's: that profit is greater when money is treated as a commodity and manipulated in lieu of manufactured goods. We became a nations of brokers, real estate salesmen, snake oil hustlers, insurance brokers, lawyers and government bureaucracies. The primary definition of these industries is that they produce nothing, they merely manipulate wealth as a commodity in and of itself.

The idea of an actual free market will only work in the case of an economy consisting of actual producers of humanly usable goods. However, most producers are not honest, they are oriented toward profit and not product. An honest producer is concerned with his market, the best product at the lowest price, and the welfare of its employees. Most corporate producers have morphed into mere money manipulators; that is why automobile manufactures have recently become credit card hustlers, and retailers have become banks.

Corporate piracy is based on primitive concepts of cattle theft, power, profit, exclusion, class, monopoly and wage slavery.

The underlying agenda was simple: plunder the public wealth and bury it in the private treasuries of an elite class. Such treasuries are defined by the inability of governments or the public classes to retrieve the wealth. In fact government was converted by Reagan from being for the people, by the people and of the people, to for the wealthy by governmental police and of the international corporate super-state.

"Trickle Down Economics" was the public relations program of lies and disinformation that sold such ideas to the public. There was never any intention of letting wealth trickle down to the lower classes of the pyramid once it was safely squirreled away in the elite treasuries.

Deregulation was the critical legal necessity that allowed the corporate subculture to plunder the body politic. It was a license to steal. The Savings & Loan debacle cost the American economy well in excess of a trillion dollars. This wealth is irretrievably lost to netherworld of elite treasuries.

Deregulation was essentially a license for monopoly. This was termed “free” simply because is encouraged big fish to eat little fish. Competition no longer meant equal footing on a level playing field; competition became a feeding frenzy for corporate monopolies. Such monopolies and international corporate super-states did not restrain their predation to other businesses. The ultimate target was an overpriced labor force of lower and middle classes. Not satisfied with merely denying employment, the monopolies and  corporate super-states determined to bleed the American population of all the wealth it possessed. This program also contained the attractive benefit of positive feedback; the rich got richer and as the poor got poorer they lost all political power to effect change.

For, hand in glove with the programs of free market monopolization and theft, went the political program of buying the government. From this point forward American political power responds only to wealth.

Privatization is the idea that government should not provide services of any meaningful use to living human beings to its constituents. Apparently government should only collect massive taxes and spend them to the benefit of the ruling oligarchy. While the decline of the airline industry is an example of the destructive nature of deregulation, the privatization of the Post Office is an example of the fundamentally erroneous idea that government itself is some sort of business which, of necessity, must turn a profit. By privatizing the Post Office the Federal government was relieved of an expense and the Post Office, in turn, passed the cost on to the customer. Increased postal rates are another form of a tax hike. Also, they became another form of media control, meaning control over what information was allowed to flow to what consumers of information. The problem with the Post Office is that is too democratic, and that by dampening it’s effectiveness, it forces information to flow in more controllable and more profitable media such as television.

The third pillar in the program of Reaganomics was the purchase, control and censorship of all meaningful media in the US. And so, along with the destruction of education, the dumbing of America began.

 

Government became the enforcement and collection agency of corporate monopolies and the wealthy elite. Given a license to steal, the insurance industries looted at will and their theft was enforced by the government. Laws exist which state that every citizen, under certain conditions such driving an automobile, must purchase some product from a private provider or suffer punishment. That is banditry pure and simple; a governmental extortion racket. If the state mandates that citizens must, by law, purchase some product, then it is only reasonable that the state becomes the provider of that product, and to provide it at no profit. While enforced expense may be considered a tax, the enforced appropriation of a citizen's wealth for the benefit of a private corporation which does not have to account for its rate of profit and which is a completely unregulated monopoly can only be considered to be extortion. At the very best, it is taxation without representation. California Proposition 103 clearly announced the end of democracy when that law was voted in by an irate citizenry and then ignored by the insurance industry and the government alike.

Government in general and the Congress in particular had already been purchased lock, stock and barrel by the corporate world. We now had government by PACS, lobbies, special interests and corporate interests. The body politic was in control of nothing. Congressional members were out of control and for sale to the highest bidder, which was the corporate super state.

In addition Reagan personally and criminally enhanced the degradation of government by creating non-traceable wealth with the illegal drug trade, then by selling American arms to its ostensible enemy, Iran, and finally using the profits for personal gain and to maintain an extra-legal army to fight an entirely unauthorized war on behalf of the elite class. All of this was done without the knowledge, let alone the express consent of the American people.

When Mr. Reagan was in flagrant disregard of democracy and committing illegal and immoral acts, the shameful fact is that he was not considered to be in conflict with the "American Way." It is only for the indiscretion of being caught that he was considered remiss. To not own up to his responsibility and allow his lieutenants to take the blame was merely the self serving strategy of all elite classes; protect the war lord at all costs.

The general goal was to emasculate government by converting its function from that of protecting the citizens and regulating the corporate world to protecting the corporate world and regulating the citizens.

One means of accomplishing this goal, besides the ownership of Congress and deregulation, was to maintain the illegal status of the drug trade.

The "War on Drugs" is the biggest snake oil hustle of this century. The primary reason for the continued illegalization of cocaine is to employ two major industries that produce nothing, do not feed, cloth, house or heal a single human being and are, at best, dangerous parasites on the culture.

The two major industries are the illegal drug trade and the opposing law industry comprised of various types of police, lawyers, judges, prisons and other related systems to fight the war on drugs. There is somewhere between 20 and 50 billion dollars a year lost to the illegal consumption of drugs. There is another 20 to 50 billion a year lost fighting illegal drugs. In addition there is an indefinite amount lost each year in the medical and economic costs of drug usage. Conservatively, it costs the U.S. 50 billion dollars every year to keep cocaine illegal. All for nothing, for a drug worth less than aspirin.

There are two hidden agendas: the first is to keep clandestine operations such as the CIA rolling in non-accountable dollars. The profits from the drug trade need never darken CIA bank accounts or touch CIA fingers. It need merely be transferred from CIA associated drug lords to CIA associated sub-contractors. Wherever illegal clandestine operations need funding, or operations need execution, money is made available by the drug industry. Like all American foreign policy, all decisions, actions and spending are made in favor of corporate interests.

The second hidden agenda is to maintain a police state at the taxpayers expense and with the enthusiastic support of the taxpayer. The purpose of this police industry is not to control drug lords, but to control our own citizens.

The two separate systems comprising the drug industry, the illegal providers and the legal interdictions, are a perfect example of how conspiracies function in the modern world. Effective conspiracies are never formalized, never negotiated nor agreed upon; they are tacit; they are inferred. Each group or member party to the tacit conspiracy simply assume that that their participation in the tacit conspiracy are dependant on the existence of the other. As such, there are well know rules and behaviors that each party knows and expects about every other party. The Kremlin and the Pentagon together make such a tacit conspiracy.

 

Reagan and company further plundered the body politic by more sophisticated military swindles. SDI elevated military theft to an art form. It could not possibly work. It could never be used or tested, and if it was, no customer would be left to accost the complaint department. It costs billions just to consider how to waste further trillions on an entirely worthless product for an enemy that never existed in fact.

Another act of piracy was the wholesale raiding of social spending: all forms of human needs were plundered; education, health, art, roads, bridges and highways, welfare, infant care, day care, and etc..

The gimmick was to lower taxes. Mr. Reagan promised to lower taxes, and federal "income" taxes he did. The Federal government then simply ceased to fund local city and state programs. Every other form of local tax increased dramatically. Social Security increased, but the primary strategy was to cut funding from local expenditures such as education and health. The left the Social Security available as a slush fund for unauthorized, clandestine, un-reportable or unpopular raiding. Consequently local taxing institutions had no choice but to institute and raise local taxes of all sorts; property taxes, income taxes, sales taxes, city income taxes, parking and traffic citations, garbage collection, museums, school lunches, utilities and power, etc.. The other form of local taxation that was sharply escalated was something called fees: legal documents, licenses of all sorts, parking permits, smog checking and licensing, school expenses and etc.. Nearly all local services previously performed by the government were now subject to fees or taxes. The net result was that Reagan and Company could righteously claim to have lowered Federal income taxes, to have ceased spending money on human needs, to have plundered billions into the elite treasuries and to have drastically raised the net, sum total of taxes in general. It was a master stroke of misdirection and piracy.

In conjunction with such massive means of public theft was the ever increasing cost of living, which merely reflected the rapid rise of corporate piracy that was permitted by deregulation and the neutering of the watch-dog laws. The massive profit taking for worthless products had to be paid for by someone and that someone was the American citizen in terms of cost-of-living, taxation and outright theft, such as in the S&Ls. There was also a constant need to prevent inflation of the money supply in order to protect the global corporate interests. In order to reduce the risk of inflation, the money supply was constantly withheld from the public and given to the corporate world at the most favorable rates of interest. This aided the corporate strangleholds over monopolies by preventing entrepreneurial competition from the "little people."

The U.S. economy could not be allowed to "crash" without effecting economies on a global scale. So the rest of the world, and the corporate world in particular, were obliged to carry the U.S. debt. This will be true until the wealth of U.S. is drained in its entirety, or until there is no U.S. worth further consideration.

 

Reagan and Company conspired to achieve three main goals:

1: To plunder the public wealth into an elite treasury.

2: To destroy government as an effective democratic watch-dog mechanism to regulate corporate buccaneering.

3: To create a Corporate Super State outside the powers of nationalistic governments. The only response that humans could possibly make to this gambit would be the creation of an international institution to regulate the Corporate Super State.

 

Reagan is the consummate Flim Flam artist of the 20th Century. He was elected on the public need for change on the basis of tax-lowering disinformation and a "Trust me" charisma. In his second term in particular, he was not voted in for his economic policies, but rather for his perceived foreign policy. He had no particular mandate to steal the wealth of the United States of America and give it to a nebulous Corporate Super State.

In regard to foreign policy, Reagan only had one. He used credit-card economics to steal wealth in the form of debt passed on to the American public and to the future generations in order to fund ridiculous military programs such as SDI. He simply outspent the USSR in the national threat conspiracy based on credit and debt. Gorbachev, the only adult in charge of a nation at the time realized the game was idiotic and simply quit. By so doing, Mr. Gorbachev saved the world from an even more disastrous economic decline, if not from the potential dangers involved in military confrontation.

Mr. Bush was merely Mrs. Reagan's cloned appendix and continued the policies and agendas of the wealthy elite class without serious revision.

Mr. Clinton is Mr. Reagan's partner. As another loyal employee of the Corporate Super State, Mr. Clinton has the unenviable job of collecting the bill for Mr. Reagan's spending and plundering. The U.S. cultural system no longer has the mechanisms intact for making necessary modifications and the situation, economically, is hopeless. Mr. Clinton's primary task will be to hold the body politic together long enough for the wealth to be bled away without the danger of a catastrophic crash.


Michael Andrews
07 June 1995