Dr. Frank Einstein (24 page)

     
President Reagan was very concerned about inflation which was a staggering sixteen per cent when he came into office.  His Budget Director David Stockton came up with a plan that would reduce inflation to one to two per cent.  Stockton advised a massive restraint on the money supply. Then replace all the money lost by the restraint by borrowing money. President Reagan like the idea, despite the fact that before the election he promised to balance the budget like him did when he was Governor of California.  

     
It was a good plan and it did work.  I think it still would work.  For an amazing twenty five years the United States had very low inflation.  If it was not for the Crash of two thousand and eight we could have had low inflation indefinitely. The truth is that the deficit is not a problem. We should forget about it, at least until the economy gets very strong.

    
President Reagan did so well at borrowing money he not only made up for the restraint on the money supply but he stimulated the economy with massive spending.  This massive spending had a double effect.   First, it spurred economic growth.  Second, he produced an arms race with the Soviet Union that the Soviet Union could not keep up with.  So the Soviet Union imploded and Communism is not the threat it once was.   We won the Cold War!

    
President  Reagan tripled the deficit to three trillion United States Dollars, after President George H. W. Bush it was four trillion United States Dollars.  When this momentum seeped into the Clinton Administration, until when he balanced the budget it, was five trillion dollars.              

  
  Reagan had fixed a very dismal economy.  Even though unemployment and slowed growth did cause mild problems at times; Reagan and Clinton really did an amazing job giving the United States a pretty good economy for twenty five years until October, two thousand and eight.     

   
  I think President Reagan planned for someone like President Clinton in the future to curb the deficit in a very strong economy.  However it would have blown President Reagan's mind why anyone would stop after such a short period of time and for no good reason.   

     Let's talk about Medicare and social security. They are not supposed to be in the budget.  The only reason that they are illegally in the budget is because Congress is a thief.  Every year Congress commits a criminal act when the social security and Medicare are put in the budget.  According to the Social Security Act of nineteen thirty five Social Security has its own budget that is separate from the Federal Budget.  Its budget is controlled by the Social Security Administration not Congress. 

     An American pays in to social Security and then (s)he collects it at retirement.  That is it!  It is the same with Medicare.  Hands off, Congress! Seniors, Congress, both parties, have been ripping you off all your life.  The Congress has been stealing from social security and Medicare.  Then, they give it to rich people.   It is not the decision of Congress to cut Medicare or social security payments, only Social Security Administration and Medicare can do that. Yet Congress does it anyway because they are thieves.

    
It is the Vietnam War.  President Johnson wants to escalate the War more to destroy Communism.  He had increased the money supply {back in those days before supercomputers the Federal Government actually had to print money, now if they want a trillion dollars they program that number into the Computer}. However, the increasing the money supply had caused inflation to increase to four per cent.  What to do?      

    
Then President Johnson got an idea. Steal it from Social Security!  It was just sitting there (there were way more workers paying into it then retirees collecting it.  Unlike today).  Then it became a habit for every sequential president to steal from it.

    
One day the Congress might pay it back; then maybe they will not.

    
Another lie is that there is a federal budget.  They just say that they have a federal budget to placate you.  Okay, if there is a budget why don’t they follow it? So you really think if the Congress has a budget of three point five trillion dollars.  That is all they are going to spend? The government spends many times that amount.

    
Let us look at the two thousand and nine budgets.  Congress passed a budget of two point seventeen trillion United States Dollars.   When TARP passed we were in two thousand  and nine  fiscal year Then they came up, as if from thin air, with another two trillion United States Dollars  for TARP. That is almost double that year's budget.  How did they do that?  They can do anything they want. After all, it is all an illusion.  What actually happened is that Congress, a Democratic Congress, gave approval to the Bush administration to go to the Federal Reserves and borrow two trillion dollars.  Just like that! 

    
When a congressmen says they are going to shut the government down because they are going to run out of money.  It's a lie.  It is just grandstanding so they can, for example, justify cutting Medicare which of course they legally cannot do.     The government will never run out of money because they can always print it or borrow it.  They can refuse to print or borrow out of a sense of responsibility.  But they are too much of thieves and liars to do that.  After all, their only duty is to steal from the American people for the Billionaire Speculators.  They actual have convinced themselves that their one hundred eighty five thousand United States Dollars salary is not enough for their narcissism. They feel they deserve the millions of United States Dollars these Billionaire Speculators bribe them with.

      
Typically, Congress would have made up a clandestine budget to pay for TARP.   We would have never known about the two trillion United States Dollars they had spent.  Oh, how did those two trillion United States Dollars get there on the deficit?  But the crisis was so prevalent it had to be made public.  Usually it is a couple billion covertly borrowed here a couple billion there. 

      
Do you think that every contract the government makes is paid from the so call budget?

 
     Congress is planning to cut one billion dollars from Medicare so it can secretly give two billion dollars to Sun Myung Moon.  Funny how cutting one billion dollars from Medicare caused the deficit to increase by two billion.

        Totally separated from the so called Federal Budget, they are also clandestine budgets, contingency budgets, and emergency budgets.

        Get rid of the Federal Reserve!  The Federal Reserve is an agency. That means it is not a part of the three branches of government. Therefore it is outside of constitutional checks and balances.  The Federal Reserve act of nineteen thirteen enabled the leading private banks to form a Government sanctioned cartel to control the money in the United States.  Essentially the Federal Reserve is a private bank with governmental powers.

        We have the Treasury Department which is supposed to have control of all financial matters of government. So why do we need the Federal Reserve
? The Treasury Department is under the control of the Executive Branch, subject to laws of the Congress.

    
The President appoints the officers of Federal Reserve but has no authority over them.   Congress could enforce themselves over them through laws but is reluctant to do so because it is not part of its branch.  Most of its officers have come directly from Wall Street.  {This is why Wall Street is the largest campaign contributors to both parties presidential candidates to ensure that when either becomes president, they will always appoint Federal Reserve directors from Wall Street. When it was formed Goldman of Goldman Sachs helped wrote its rules.   The main purpose of the Federal Reserve is to give banks money.   This is how the Federal Reserve funnels Money in to Wall Street and into the pockets of Sun Myung Moon and the Billionaire Speculators.   These activities are done outside the Federal Budget.
Let me give you an example.  In two thousand and eleven Wall Street banks ordered the Federal Reserve to borrow seven trillion United States Dollars from bonds, the Chinese ex cetera.  Then these Wall Street banks ordered the Federal Reserve   to lend them the seven trillion at seventy five one hundredths of a per cent. Then these banks forced Congress to borrow these same seven trillion United States Dollars at three per cent.  Congress did not want it but since Wall Street controls Congress they had to take it.  So Congress had a choice: spend it or just pay it back. In this case, they did not want to show it in the budget.  They started to pay it back.  Not only did they have to pay the seven trillion United States Dollars and the pay three per cent back, but since the Federal Reserve borrowed at a higher interest than seventy five one hundredths of per cent Congress had to pay the difference.  What profit did the Wall Street banks made on this no effort single transaction? Two point twenty five per cent of seven trillion United States Dollars is one hundred seventy five Billion United States Dollars.  What did America get in return?  Nothing.

        Realty is the Federal Reserve, not the Congress, who controls the United States' purse strings.

        Another lie from Mitch is that is Republicans are fiscally conservative.  All that the Republicans know how to do is spend spend spend.  All that the Democrats know how to do is spend, spend, spend.  The Republicans spends so much government money they should be called socialists.  The Democrats spends so much government money they should be called socialists.  Unfortunately the Republicans spending never benefits the American people only the uber rich.  The Republicans spend, spend, and spend on lucrative, sometimes fraudulent, most of the time unnecessary, multi-million and billion dollar contracts and subsidies for corporations that do not need subsidies.

        Spending on the Defense is responsible for most of the deficit.  If you take Social Security and Medicare of the budget, which y
ou legally have to do because they fund themselves, Defense is by far the largest portion of the budget.   Two to three times of what the Federal Government spends on social services and education combined.  For all the money the Federal government gives to the poor, it gives five times more to the rich.   Most rich people live off the government.  Now the Republicans may justify giving this money to the rich, because the rich are providing the services or goods.  But most of these goods and services are ultimately worthless.

       So why does Congress say they going to cut the deficit.  They just say it to sound responsible, so you will vote for them.  They know they are going to spend lots of money behind your back.

     
So what is the solution?  What we need to do is spend. We need to target this spending so as to expand the Gross National Product.     The goal is to keep the deficit at seventy five per cent of the Gross National Product.  

      
The deficit should not get smaller but the Gross National Product needs to get bigger.  So if we should borrow and spend in such a way that the Gross National Product out paces the deficit.

       “You don’t like the government very much, do ya?” Said Jennings to me.

      
“This is freedom of the press.” I replied to me.

      
“Yeah but it's also motive.”

       
“It’s a coincidence. Are you sure that I don’t get a lawyer?” I tried to stand up as if I could discover someone outside in the corridor. With two hands on my shoulders he shoved me back in my chair.

       
“No, because you are a terrorist. So we can detain you indefinitely.”

       
“Your definition of a terrorist makes no sense.  I’m an American citizen.” 

    
   “If you confess that you killed Justice White.   You’ll be given a lawyer and you'll be tried for murder.  Then you’ll get all the rights you want. ”

        
“Hey that does not sound right”

        
“Well you're apparently the expert.” he said, slapping the pages of my article.  "Maybe that the real motive behind the assassination of Washington is to have revenge on one of the judges that ruled in favor of the Defense Authority Act of two thousand and thirteen.  Now you’ve got a liberal to replace him, maybe the Supreme Court will reverse that decision.  When that happens, you'll get that lawyer.   Look Frankenstein, we've got a dozen witnesses that will testify that you were awake when you slammed into White.”

          Kendra came back into the room a bit excited.  “Look what we’ve uncover.  He has been diagnosed with schizophrenia.”

           “Hey, what do you say you spend a couple decades with your old pal Hinckley in a State hospital?  Y’know until we straighten everything out about legal standing rights and all that.”