Saturday, July 31, 2010


There is a very good reason why there is no money available for small and medium-sized private businesses. Simply it is because the bankers, funds and brokers who have too much money in their hands could make a better return by gambling their money in the casino called financial markets. Since it is not their money that these middlemen have, if they win they win, if they lose their investors lose or get bailed out by the taxpayer represented by their corrupt government.

For example if a middleman who holds money lends to a private business the only way they will be safe is if the private business continues to make profits. Not many private businesses can continue to make profits any more since the whole business world is being monopolized by a handful of mega-sized businesses with access to unlimited capital. Even if the small businessman continues to make profits (owing to some miracle) the middleman can collect only an insignificant interest payment.

Contrast this with what happens when these middlemen give money to a public company via buying stock of that company: They can immediately collect a huge commission amounting to 8 to 12 percent. And on top of that, the middlemen get a large number of stock options to buy the stock of such a public company at a discount price. So the next thing these middlemen do, with the help of their associates in the market, is to run up the stock of this public company on which they invested their money. Then they cash out the stock options they got as part of the deal to provide them capital and make extra money. This is how stock market bubbles are created. Even speculative stocks run up in price due to the buzz being created by the middlemen who invest their investors’ retirement funds on these speculative stocks.

Almost every influential person in this country knows what’s going on and as long as we have this system in place, the USA will remain a nation of very few people controlling all the wealth and the majority living from month to month (the characteristic of a Third World nation). If you wonder how such a small group of people could control the majority to go along with such a system. It is through the control of the media that they use to brainwash the majority. Their goal is to brainwash enough people and divide the nation so that they can continue with this scam benefitting only a handful of persons

Sunday, July 18, 2010


Bertrand Russell wrote “Political Ideals” in 1917 and here is a quote from it. As you will see, it applies to the USA today just like it applied perfectly to Europe in nineteen hundreds:

You can read the ebook at

The present economic system concentrates initiative in the hands of a
small number of very rich men. Those who are not capitalists have,
almost always, very little choice as to their activities when once
they have selected a trade or profession; they are not part of the
power that moves the mechanism, but only a passive portion of the
machinery. Despite political democracy, there is still an
extraordinary degree of difference in the power of self-direction
belonging to a capitalist and to a man who has to earn his living.

Economic affairs touch men's lives, at most times, much more
intimately than political questions. At present the man who has no
capital usually has to sell himself to some large organization, such
as a railway company, for example. He has no voice in its management,
and no liberty in politics except what his trade-union can secure for
him. If he happens to desire a form of liberty which is not thought
important by his trade-union, he is powerless; he must submit or

Exactly the same thing happens to professional men. Probably a
majority of journalists are engaged in writing for newspapers whose
politics they disagree with; only a man of wealth can own a large
newspaper, and only an accident can enable the point of view or the
interests of those who are not wealthy to find expression in a
newspaper. A large part of the best brains of the country are in the
civil service, where the condition of their employment is silence
about the evils which cannot be concealed from them. A Nonconformist
minister loses his livelihood if his views displease his congregation;
a member of Parliament loses his seat if he is not sufficiently supple
or sufficiently stupid to follow or share all the turns and twists of
public opinion. In every walk of life, independence of mind is
punished by failure, more and more as economic organizations grow
larger and more rigid. Is it surprising that men become increasingly
docile, increasingly ready to submit to dictation and to forego the
right of thinking for themselves? Yet along such lines civilization
can only sink into a Byzantine immobility.

Thursday, July 15, 2010


The scam carried on by the corrupt Healthcare industry along with its insurance arm in the form of welfare-for- the- rich- socialized- medicine is the main reason why the US government and the state governments are going bankrupt. The healthcare industry is charging every working American the most regressive tax that takes away over 50% of annual income of the poorest families and bankrupt about 700,000 people every year. This punishment on the nation is in addition to about 45,000 people, the healthcare industry is killing every year by not providing adequate healthcare. The major reason there is hunger, poverty and human rights violation in the world is due to the corruption by a handful of ruthless people. In the USA such corruption is being manifested via the deceitful actions of the most powerful healthcare industry lobby holding the major governing institutions hostage as they bankrupt the nation. Let me explain how it is creating over $23 trillion in unfunded liability.

From the time you are born until you are 65 years old (capturing the most healthy and least medically-costly life span of a person) the healthcare insurance companies charge citizens a health insurance premium which is subsidized by the US government and state governments through a tax deduction costing the federal budget about $400 billion per year in deficit and a few more billions to all the state governments. This healthcare insurance premium is the biggest regressive tax imposed in the history of the world. More money you make the lesser the rate of insurance (indirect taxes) you pay. In the case of most working people health insurance is paid by their employers and thus people do not recognize this and think that it is free. But it is not and it is a regressive tax on their income.

None of the senators and the congressmen pays any of the health insurance since the taxpayers pay it for them. In the case with almost all of the wealthy, their corporations pay it and since it is so regressive they don’t feel the effect of it. That is the shrewdness of the healthcare industry. They take care of the most vociferous in the nation for free (welfare for the powerful—the smartest bribe) so they comply by allowing the industry to tax the people most regressively.

If you are poor and cannot pay health insurance companies this tax then the only choice you have is to enter the emergency rooms in a life and death situation (thus about 45,000 die every year) and that cost the taxpayer whole lot more money since the state governments pay such expenses as Medicaid payments. Some state governments are now closing down their police departments not being able to pay all their expenses (The wealthy can afford private security so this is going to affect mostly the middleclass).

When Americans turn 65 reaching the age that is too costly for the insurance companies to pay for their healthcare, the companies shrewdly shift that cost to the federal government through the Medicare program which is bankrupting the nation due to spiraling cost of unaccountable healthcare in the USA. The irony of this welfare scam is that until any American is 65 they cannot get even a medical check-up if they don’t have insurance and even if they have insurance, often insurance companies deny it (hoping that they will die quickly) since the high cost of healthcare has to be borne by the private insurance company but the minute the patient is shifted to Medicare insurance then the same hospitals would grab the person to the hospital and do not let the person die. The longer they keep him alive by any means possible, more money they can squander from the government. The healthcare industry charges about $10,000 per day to keep a dying man alive by hooking him/her up to all the high tech machines. And this same industry will refuse treatment when Americans are under 65 and, insured by their partners, the private Health Insurance industry. Such a scam could not have been perceived in fiction but this is the reality in the USA.

It is not hard to stop the healthcare industry bankrupting the nation. We can do that as follows.

1. Stop welfare-for- the-rich- socialist- healthcare program by disallowing the tax deduction for paying health insurance premiums by employers. This will save the tax payer about $400 billion per year and reduce the government deficit.

2. Stop the taxpayers paying the healthcare cost of congressmen and other government employees but instead make everybody pay for healthcare expenses including insurance premiums from after tax dollars as they pay auto insurance.

3. Breakdown the health insurance cartel and the healthcare industry cartel and increase competition to reduce cost.

4. Encourage not-for-profit healthcare providers and insurance companies to enter the field and compete head on with profitable companies.

5. Get rid of the Medicare and Medicaid programs gradually by easing them out by transferring that cost to not-for-profit healthcare companies. That will save the government this $23 trillion in unfunded liability.

Unless we do this, with over 23 trillion in unfunded liability in Medicare looming over us, we cannot stop the USA from going bankrupt because more money the healthcare industry profiteers make more powerful and greedier they get and will continue bilking the nation till the government no longer can print and borrow money from the rest of the world go pay them. Such an end will lead to a major World War that may cost the lives of millions of people.

Saturday, July 3, 2010


Let’s say that there is a city with 1,000 people and only 10 of them have all the wealth and the rest of the 990 people work for these 10 people and get paid enough to live from day to day and have to borrow money from the top 10 to buy any extra goods. Let’s also say that the city has the power to print new money and each time the city prints new money that stock of money also goes to the hands of the top 10 people.

Now if the city government needs to build the infrastructure of the city to benefit all people and also to pay for expenses to defend the city, they have a few options as to how to get the funds to do that as follows:

1. Ask those 10 who have all the wealth to share the expenses among themselves (called progressive taxes)

2. Print new money and find a way to pass it on to the hands of the 990 people in the bottom so that they have capital to begin businesses and compete in a free market so that all people will be able to share the expenses of the upkeep of the city (called a Flat Tax).

3. Borrow money to pay for upkeep of the city and bankrupt the city.

Now multiply those numbers by thousands and you will see the situation is similar to what is going on in the USA and that the USA has chosen to follow the 3rd option.

Friday, July 2, 2010


One to two percent in the USA holds most of the wealth and that is the reason we have all these financial problems. Before President Reagan came to power, the richest five percent of Americans were paying a fair share of taxes with a highest rate of about 90% and thus there was enough money to balance the budget. Reagan changed all that and turned the biggest creditor in the world to the biggest debtor by cutting the taxes of that 2% who were holding most of the wealth and began borrowing to fill the gap and following that country began its decline, heading towards bankruptcy.

This is not going to change since it is only this top few have all the money. They are not paying a fair share of taxes and the rest don’t have money to pay taxes to balance the budget. If the people in the nation are poor then the nation is going to go bankrupt. In the USA, today the people are poor since only the top 2% have all the money. How difficult it is to understand this?