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 lu^ASfe.ifci i

By: M a r t i n A. Armstrong
Former Chairman of Princeton Economics I n t e r n a t i o n a l , Ltd.
and of the Foundation f o r the Study o f Cycles

There has been t h i s raging b a t t l e between the L e f t and the Right that as any
American would l a b e l i t , the b a t t l e between the "Democrats" and the "Republicans"
that has been subject to the p l i g h t of cross-dressing from time t o time, but none-
t h e l e s s , remains a ongoing b a t t l e that i s never won. Indeed, t h i s b a t t l e can never
be won because a t no time w i l l we ever obtain a 100% agreement on anything. This i s
perhaps a major c o n t r i b u t i o n to the very existence of c y c l e s . I t even appears i n
our concept of r e l i g i o n that there i s t h i s b a t t l e between good and e v i l . Our concept
of even the existence of h e l l and t h i s b a t t l e does not come from s c r i p t u r e s per se,
but from a novel by Dante (Durante Alighieri)(1265-1321). The v i s i o n s of h e l l were
adopted by c l e r g y from Dante's work "La d i v i n a commedia" (The Divine Comedy) that
was completed l a t e i n h i s l i f e .

Democracy i s dying i f i t i s not already dead. We l i v e i n a delusion, a nightmare

from which there seems t o be no escape. We can argue and y e l l back and f o r t h , but i t
w i l l change nothing. For as much as we may b e l i e v e we have a Democracy and that the
s t a t e i s somehow c o n t r o l l e d by the people, there i s nothing t h a t i s further from the
t r u t h than t h i s f i c t i o n of our imagination.

We can do b a t t l e t o the death, and indeed countless m i l l i o n s have died f o r what

I address. Yet, the harsh r e a l i t y i s t h a t while the p o l i t i c i a n s may come and go, the
s e l f - i n t e r e s t of the s t a t e endures. This i s a beast once characterized as the Leviathan
that was a monster representing the E n g l i s h Common-Wealth. The reason t h i s b a t t l e can
never be won, i s because the true Leviathan i s not the body p o l i t i c , but the hard-core
Bureaucracy1 No matter how we vote, no matter what laws we enact, i t remains the
unelected Bureaucrats who decide what t o enforce, what the laws mean, and how they
w i l l prosecute be i t merely c i v i l t o c o n f i s c a t e wealth, or c r i m i n a l t o often create
p o l i t i c a l prisoners.

Ignored by almost a l l , i s that there i s no escape from Adam Smith's I n v i s i b l e

Hand meaning that the state has i t s own s e l f - i n t e r e s t and i t w i l l survive by whatever
r u t h l e s s means possible when threatened. This current b a t t l e against the Concentration
of Wealth among i n d i v i d u a l s that i s t u r n i n g the world upside down, has been waged
even against r e l i g i o n s t o c o n f i s c a t e t h e i r wealth as w e l l . The s t a t e , no matter who
i s i n charge, w i l l always spend more than i t has and become a r u t h l e s s oppressor of
a l l r i g h t s t o survive. This i s what we now face. We are on the edge of bankruptcy.

1
 We seem t o be frozen w i t h i n time, compelled to act out the same play with the
same ending that nobody ever wins, i t i s j u s t an o s c i l l a t i o n between two extremes.
I r o n i c a l l y , i t i s the most r e l i g i o u s that i n f l i c t the most horror f o r they believe
they know the w i l l of Gcd, and see themselves as the j u s t i f i e d and annointed hand of
God on earth to punish anyone who disagrees w i t h them. The Puritans k i l l e d over 600
indians because t h e i r women were bare-breasted and that offended Gcd. K i l l i n g innocent
women and. children,, of. course,, made Gcd Cheer i n .their minds. Yet here we are again
and the Concentration of Wealth i n t h e i r mind i s unjust and so the e t e r n a l b a t t l e
goes on and on, no doubt sparking violence i n the f u t u r e and c o s t i n g m i l l i o n s of
l i v e s while attempting t o subjugate the population once more t o the extreme Marxist
views strangely blended w i t h j u s t i c e and Gcd.

The Concentration o f C a p i t a l takes place among i n d i v i d u a l s , sectors w i t h i n the

economy (the popular growth focus l i k e r a i l r o a d s , c a r s , up t o Dot.Com), and then
between nations and even a t the highest l e v e l among regions, Europe, America, and
A s i a . I t i s the Rule of Law that creates wealth, f o r a l l the n a t u r a l resources i n
the world are worthless i f there i s no enforced r i g h t of c o n t r a c t , property, and
human r i g h t s . Poor nations are not poor because they l a c k resources. They are poor
because they lack the Rule of Law. Who w i l l i n v e s t i n I r a n or Cuba, i f there i s no
r e a l r i g h t t o property? I f we take even treasures discovered by i n d i v i d u a l s , the
f i r s t t h i n g the state does i s t r y t o claim ownership w i t h no cost. Merely f i n d i n g
an ancient hoard of c o i n s , or a ship-wreck, brings out the greed of the state.

When we look at even the Rule o f Law, we f i n d that i t i s never safe i n the hands
of the s t a t e , f o r no matter what form of government one l i v e s under, j u s t i c e i s only
whatever the s t a t e w i l l s . This i s the sad f a t e of man f o r he always w i l l l i v e under
tyranny no matter what the form of government. We may t h i n k we l i v e i n a democracy,
but i t i s t r u l y an o l i g a r c h y - c o n t r o l l e d by the Bureaucracy. We do not vota f o r any
of the things that t r u l y matter. We may vote f o r a President, Senator, and a Con-
gressman, but that i s where i t ends. The President appoints heads of departments,
and because they are p o l i t i c a l appointments, they are never t r u l y taken i n t o the
ranks of the bureaucracy. Senators and Congressman w i l l never i n v e s t i g a t e the judges
or the Executive, only Presidents to see i f they l i e d t o f u r t h e r t h e i r own p o l i t i c a l
agendas. The people are at the mercy of judges and executives over which there i s no
check and balance and no a c c o u n t a b i l i t y t o the poeple. That i s tyranny.

Supreme Court J u s t i c e Brown wrote f o r the Court i n 1982, the d e f i n i t i o n of

tyranny as defined by James Madison i n the F e d e r a l i s t Papers No 47, p300

"The accumulation of a l l powers, l e g i s l a t i v e , executive, and

j u d i c i a r y , i n the same hands, whether of one, a few, or many,
and whether h e r e d i t a r y , s e l f appointed, or e l e c t i v e , may j u s t l y
be pronounced the very d e f i n i t i o n of tyranny."
Northern P i p l i n e v Marathon P i p e l i n e , 458 US 50, 57 (1982)

As a people, the King may have been replaced, but he has only been replaced i n
t i t l e . The tyranny that we face from unelected bureaucrats i s simply unbelievable.
This i s widespread r i g h t from Federal Government down i n t o the s t a t e s . An example
i s a case where two judges i n Pennsylvania were f i n a l l y a r r e s t e d and charged with
t a k i n g b r i b e s from privately-owned prisons t o sentence young teenage boys and g i r l s
under 18 t o i n c a r c e r a t i o n on mere petty offenses. A 14 y e a r - o l d boy, P h i l l i p Swartley.
pocketed change from unlocked parked cars t o buy a s o f t d r i n k and chips. We was t o l d
to waive counser, ana tnen sentenced t o 6 months, followed by 9 months at a boarding
school f o r teens. His mother was shocked that her teenage son was taken from her
for 15 months Over 5,000 c h i l d r e n have been taken from t h e i r parents i n t h i s manner.
CNN reported that "as many as 90 percent of c h i l d r e n going through the court system
[are] without a lawyer," r e f e r r i n g to a study i n Ohio.
 Others have come out and made p u b l i c the extent o f the c o r r u p t i o n going on
i n the J u d i c i a r y . Former M i d - A t l a n t i c bank owner Robert Powell, admitted he was
pressured by t h e judges t o pay a b r i b e t o keep h i s c h i l d from a j a i l . Talk about
f r e e speech, a 15-year o l d H i l l a r y Transue was given a 15 month sentence f o r mocking
an a s s i s t a n t p r i n c i p a l a t her school on MySpace. A 13-year-old Shane B l y was taken
from h i s parents and sentenced t o a boot-camp f o r simply e n t e r i n g a vacant b u i l d i n g
charged f o r m a l l y as trespassing. Kurt Kruger, 17, was sentenced t o 5 months and
taken from h i s parents f o r a l l e g e d l y h e l p i n g a f r i e n d s h o p l i f t a DVD from Wal-Mart.

The Recently Caught The Rule o f Law has crumbled

i n the United States. The two now
Corrupt Judges corrupt judges, Mark A. C i a v a r e l l a ,
J r (58} and Michael T. Conahan (56)
were two o f the most senior judges
i n that d i s t r i c t . These judges helped
Who watches p r i v a t e contracts f o r prisons worth
about $58 m i l l i o n , according t o CNN.
the Judges?
This issue was championed by
the J u v e n i l e Law Center i n P h i l a d e l p h i a
who f i l e d a p e t i t i o n t o the State's
Supreme Court that was ignored. The
Pennsylvania Supreme Court, l i k e the
Federal, has claimed i t i s not bound
to uphold the law. I t i s purely a
matter o f t h e i r d i s c r e t i o n . They had
refused t o hear the case no doubt
because judges don't l i k e t o s i t i n
judgment over f e l l o w judges. That i s
reason why we have no r e a l human r i g h t s
because there i s no absolute r i g h t t o
demand j u s t i c e . This i s the very core
element o f our s e l f - d e s t r u c t i o n f o r
unless there i s a " r e a l " s o c i a l and
d e f i n i t i v e b i l l or r i g h t s contracted
Conahan
with the people, we have no democracy.

This i s why both extremes f i g h t t o c o n t r o l who i s President, f o r that person

alone p i c k s who s h a l l s i t f o r the r e s t o f h i s l i f e over our r i g h t s , p r i v i l e g e s , and
immunities. Judges present the s i n g l e greatest threat t o our l i b e r t y , property, and
our way of l i f e , f o r there i s no one who judges the judges. This i s why i n P l a t o ' s
Republic we f i n d a c l a s s i c debate between Socrates and Thrasymachus, i n which I
fear the l a t e r was c o r r e c t and the former p a i d f o r h i s wrong b e l i e f s w i t h h i s l i f e .
Socrates (479-399BC), b e l i e v e d that a democracy was the best form of government and
would always g r a v i t a t e t o j u s t i c e because the people r u l e d . He was wrong. P l a t o
1
recorded t h i s debate of j u s t i c e and gave Thrasymachus argument.

"[T]he d i f f e r e n t forms o f government make laws democratical, a r i s t o c r a t i c a l ,

t y r a n n i c a l , with a view t o t h e i r s e v e r a l i n t e r e s t s ; and these laws, which
are made by them f o r t h e i r own i n t e r e s t s , a r e the j u s t i c e which they d e l i v e r
to t h e i r subjects, and him who transgresses them they punish as a breaker of
the law, and unjust. And that i s what I mean when I say that i n a l l states
there i s t h e same p r i n c i p l e of j u s t i c e , which i s the i n t e r e s t of the government;
and as the government must be supposed t o have power, the only reasonable
conclusion i s , that everywhere there i s one p r i n c i p l e o f j u s t i c e , which i s the
i n t e r e s t o f the stronger." ^ m t l Q T i f p 2 2

3
 I t was the corruption w i t h i n the
Athenian Democracy that l e d t o the
1
p o s i t i o n of one of the world s greatest
analysts of p o l i t i c a l power, Thomas
Hobbes (1588-1679AD), whose career
was o f t e n i n t e r r u p t e d by the necessity
o f f l i g h t during the E n g l i s h C i v i l
Wars.

Of a l l h i s works, the Leviathan

stands out as perhaps h i s crowning
11
achievement. The "Leviathan of course
was the famous sea monster defeated by
Yahweh i n various s c r i p t u r a l accounts,
Hobbes coined t h i s as the p o l i t i c a l
s t a t e . His f i r s t published work was
i n 1623 and was a t r a n s l a t i o n o f the
Greek work of Thucydides, who a t t r a c t e d
Hobbes no doubt f o r h i s down-to-earth
view of mankind and how they could i n
f a c t improve themselves through the
lessons of h i s t o r y , which stood i n a
con t r a s t with A r i s t o t l e taught a t Oxford.

Hobbes l a t e r i n h i s autobiography
admitted that he was a l s o impressed f o r
Thucydides exposed him t o the dangers
of democracy. Thucydides i s perhaps the
f i r s t great Greek h i s t o r i a n who wrote
the H i s t o r y of the Peloponnesian War
between Sparta and Athens. He was i n
Athens f o r the great plague of 430-29EC
and himself came down with i t , but he
survived u n l i k e many others. He was
even given a command, but l o s t the c i t y
of Amphipolis t o a s u r p r i s e Spartan
attack, was r e c a l l e d , s t r i p p e d of h i s Thomas Hobbes (1588-1679)
command, made t o stand t r i a l , and sent-
enced t o e x i l e f o r 20 years, that ended the "Leviathan" published 1651
only with the defeat of Athens i n 404 EC.

Thucydides's work shows a c o n f l i c t of character

whereas the Athenians were portrayed as more r e a c t i o n -
ary i n t h e i r t h i n k i n g and i n d i v i d u a l i s t i c compared to
the Peloponnesian character was portrayed as much more
conservative. This was the core of the c o n f l i c t and
we may put t h i s i n t o a modern perspective using the
terms of "democracy" against the "communistic" s t y l e
of Sparta. Sparta was dedicated to a m i l i t a r y o l i g a r c h y
that r e j e c t e d the a r t s , philosophy, and l i t e r a t u r e .
Sparta was the c l o s e s t t h i n g that we had t o a ancient
communistic s t a t e where i t i s the bureaucracy that
t r u l y c o n t r o l s power reducing i n d i v i d u a l l i b e r t i e s
and achieving a standardized world where the people
are e s s e n t i a l l y t r e a t e d the same. P e r i c l e s he portrays
as combining caution and moderation with a daring
imagination and i n t e l l e c t c a s t i n g him as a leader of
Thucydides (ca 460-404BC ?)
a new age. 4
 There i s l i t t l e doubt t h a t Hobbes was g r e a t l y
influenced by Thucydides and what he saw was very
competing p e r s o n a l i t i e s t h a t evolved and that the
idea o f a Democracy t r u l y d i d not work. Hobbes
believed that the sovereignty o f the King was the
best s o l u t i o n t o the pain o f man.

Hobbes was a b r i l l i a n t mind. He saw the c i v i l

Thomas Hobbes (1588-1679)
war rage around him and had t o f l e e f o r h i s l i f e
because o f h i s ideas. But Hobbes i s not l o s t to an
age o f kings long s i n c e past. I f we look beyond the
head of s t a t e , we s t i l l see the Leviathan and that
i s constructed as the Bureaucracy that never changes
which i s why we have had these b a t t l e s f o r thousands
of years with no r e s o l u t i o n . Thrasymachus was indeed
c o r r e c t . I t matters not what i s the form of government
and the c o r r u p t i o n i n the J u d i c i a r y w i l l never stop
j u s t because you change the President.

The Leviathan i s the Bureaucracy, which cares not who i s a t the head f o r they
alone c o n t r o l the s t a t e . Prosecutors w i l l s t i l l charge whomever they d e s i r e , and the
Judges w i l l deny a f a i r t r i a l and l i k e Judge S h i n d l i n o f the Southern D i s t r i c t of New
York who sentenced a man t o l i f e even a f t e r the President and Congress signed a t r e a t y
guaranteeing t h a t no one e x t r a d i c t e d from Columbia would r e c e i v e more than 20 years,
the Second C i r c u i t Court o f Appeals r u l e d that the defendant Lara had no standing t o
object because the t r e a t y was w i t h Columbia, and only they could appeal. So you see,
there i s no Separation of Powers that was t o be the bulwark against tyranny, f o r the
J u d i c i a r y obeys no one and only the Bureaucrats can i n d i c t , not the people, so there
i s nothing our e l e c t e d o f f i c i a l s or the people can ever do i n any case whatsoever. We
no more l i v e i n a Democracy today where the w i l l o f the people i s respected than d i d
Socrates when they ordered h i s death because the o l i g a r c h y d i d not l i k e what he was
teaching the c h i l d r e n .

Thucydides was c o r r e c t t h a t mankind cannot t r u l y understand h i s future without

comprehending h i s past. For h i s t o r y i t s e l f contains repeated o c c u r r i n g patterns o f
the same arguments and b a t t l e s time and time again. For example, we come t o the very
i n t e r e s t i n g p e r i o d of J u s t i n i a n I (527-565AD) Byzantine Emperor who came about 224
years l a t e r a f t e r the assumption of power by Constantine I (The Great). Constantine
had grown up i n the court o f D i o c l e t i a n who desperately sought t o reform the Roman
Empire a f t e r i t s disasterous c o l l a p s e o f the monetary system under the r e i g n of
Gallienus (253-260AD). Not only d i d the monetary system c o l l a p s e , but v i r t u a l l y the
e n t i r e s t r u c t u r e o f government began t o f a l l apart. From a power perspective, i t was
the Senate t h a t exercised c o n t r o l over the m i l i t a r y as a check and balance since the
days o f the Republic. The leader o f the army f o r an event was an e l e c t e d o f f i c i a l .
Yet what had stood f o r about 700 years, crumbled and c o n t r o l o f the m i l i t a r y was then
usurped by p r o f e s s i o n a l equestrian o f f i c e r s . This l e d t o a v o l a t i l e c o l l a p s e where
numerous Generals were usurping powers t o t r y t o c l a i m the o f f i c e o f Emperor. This
was the atmosphere upon which the general D i o c l e t i a n took c o n t r o l and attempt a
monetary and p o l i t i c a l reform known as the Tetrarchy s p l i t t i n g the Roman Empire
c r e a t i n g two emperors (East & West) w i t h two v i c e presidents known as Caesars. I n
f a c t D i c c l e t i o n was the f i r s t Emperor t o r e t i r e i n 305AD and pass power t o the two
awaiting Caesars, one o f whom was Constantine's f a t h e r , Constantius I Chlorus ("The
Pale").

With the death o f h i s f a t h e r i n 306AD, Constantine set out t o r e u n i t e the whole

empire under h i s own s i n g l e r u l e . We f i n d that 224 years a f t e r the death o f h i s
f a t h e r i n 306AD, we come t o the year 530AD and the r e i g n o f J u s t i n i a n I" (527-565AD).
J u s t i n i a n i s famous f o r h i s l e g a l reforms known as the Codex Constitutionum, that was
a new codes o f Imperial Enactments o r C o n s t i t u t i o n s i n 528AD (published i n 529AD),
a new code of i m p e r i a l enactments or a c o n s t i t u t i o n i n 528AD {published i n 529AD),
a second commission of h i s reform was t o a t t a c k the corrupt j u d i c i a r y and c o d i f y
a l l the laws known as h i s Digesta. This commission began i n 530 and was delayed
by great c i v i l unrest and d i d not appear u n t i l 533AD. He a l s o simultaneously had
e s t a b l i s h e d the I n s t i t u t i o n e s , t e x t books f o r the t r a i n i n g of law students, a l s o
published i n 533AD. A second e d i t i o n was published i n 534AD whereby he r e v i s e d the
laws that p r e v i o u s l y e x i s t e d i n h i s famous Codex J u s t i n i a n u s , and h i s subsequent
l e g i s l a t i v e reforms came much l a t e r i n 565AD known as h i s Novellae Constitutiones
Post Codicem.

What we see w i t h the r e i g n of J u s t i n i a n I

i s a determined Emperor who made an e f f o r t to
root-out the c o r r u p t i o n t h a t f i l l e d the courts
and was destroying commerce. Judges were simply
for s a l e and the s t a t e of the law r e f l e c t e d t h a t .
Within j u s t 224 years of Constantine embarking on
t r y i n g t o create a new world, we f i n d the age o l d
problem of c o r r u p t i o n w i t h i n the ranks of the
Leviathan that i s e f f e c t i n g our own economy r i g h t
now.

The reforms attempted by J u s t i n i a n came at

a very steep p r i c e . The two p o l i t i c a l p a r t i e s a t
that time were known as the Blues and the Greens.
This i s no d i f f e r e n t than we have today between
the Republicans and the Democrats. Those with a
s e l f - i n t e r e s t who stood t o lose i n these reforms,
i n c i t e d c i v i l unrest f u e l i n g v i o l e n t confrontations and attempted t o apoint a new
emperor who would keep the status quo. The people, as usual, were manipulated and
knew nothing about what they were r e a l l y arguing f o r . So i n 532AD, the i n s t i g a t o r s
achieved the u n i f i c a t i o n of the Blues and the Greens who j o i n e d together i n t h i s
c i v i l unrest.

This u p r i s i n g became known as the "Nika" Revolt,

t h a t i n Greek means t o "Conquer" or "Win" i n s o f a r as
the overthrow of J u s t i n i a n f o r h i s reforms, mostly
for h i s a n t i c i p a t e d l e g a l reforms. The new u n i t e d
Blues and the Greens t h a t began as f a c t i o n s i n sports
at the Hippodrome, now attacked and set f i r e to the
c i t y p r e f e c t ' s o f f i c e and other p u b l i c b u i l d i n g s . They
even attacked the Imperial Palace s e t t i n g f i r e t o i t
and burned down the l e a d i n g church of the Holy Wisdom
t h a t was attached t o the Palace. They then .jere led t o
the Hippodrome by the s e c r e t i n s t i g a t o r s demanding the
the d i s m i s s a l of the c i t y ' s p r e f e c t and the two new
reformer m i n i s t e r s of J u s t i n i a n John of Cappadocia and
the advocate Tribonian, who were the a r c h i t e c t s of the
reforms. The next day, the i n s t i g a t o r s put up the
nephew of the l a t e emperor Anastasius whose name was
Hypatius, who a l s o had the support of a small group of
senators whose personal i n t e r e s t s were a l s o e f f e c t e d Empress Theodora 527- 548
by the reforms. What turned around events, was h i s w i f e
the Empress Theodora. J u s t i n i a n was going t o f l e e , but Theodora made him stand h i s
ground. Once i t appeared t h a t J u s t i n i a n would stay, she helped h i s two leading
generals B e l i s a r i u s amd Mundus t o r a l l y troops who then attacked the mob i n the
Hippodrome that ended i n a wholesale massacre and Hypatius was executed.
6
 H i s t o r i c a l l y , the Rule o f Law has always been the most c r i t i c a l part of our
economy f o r nothing can survive without i t . Yet every time, i t i s the corruption
of judges t h a t leads to the d e s t r u c t i o n of s o c i e t y . Once they can be bought and
the courts stacked . with p o l i t i c a l o b j e c t i v e s , the end i s u s u a l l y w e l l i n s i g h t .
Every major c o l l a p s e of a s o c i e t y has been accompanied by the corruption of the
Rule o f Law. Once that takes place, i t i s time to turn-out the l i g h t s . We f i n d
every major r e o r g a n i z a t i o n a f t e r a p o l i t i c a l c o n f l i c t involves the reestablishment
o f the Rule o f Law. The f i r s t Roman Emperor Augustus (27-14AD) a l s o r e v i s e d the
l e g a l code upon taking power. We a l s o f i n d J u l i u s Caesar, perhaps the most pro-
found p o l i t i c i a n i n h i s t o r y with a c r i s p and t r u l y b r i l l i a n t mind, a l s o had to
e l i m i n a t e the widespread corruption i n the courts and enacted the Lex J u l i a ,
meaning the Law of J u l i u s .

Indeed, i f we look a t J u l i u s Caesar and

i n v e s t i g a t e the contemporary w r i t i n g s of a l l
those a t the time rather than merely j u s t the
corrupt and biased w r i t i n g s o f Cicero and
Cato, who are renown f o r t h e i r "Republican"
support and r e s i s t a n c e to tyranny i n the form
of Caesar's d i c t a t o r s h i p , we begin to get a
better sense o f the scope of the f u l l and
widespread c o r r u p t i o n t h a t l e d to the f a l l
of the Republic, and r i g h t l y so!

The Republic, l i k e our Democracy today,

was nothing c l o s e to i t s intended design. I t
f e l l i n t o an o l i g a r c h y created from corrupt
senators who q u i t e often bribed t h e i r way
t o o f f i c e and rigged the votes. I n f a c t , the
reason why we have the J u l i a n Calendar i s
because the Remans used a moon calendar but
knew that i t was not c o r r e c t . Thus, to keep
i t adjusted w i t h the concept of a "leap"
i n time, the h i g h p r i e s t , P o n t i f e x Max, was Gaius J u l i u s Caesar 100-44EC
i n charge of i n s e r t i n g days when he, i n h i s
sole d i s c r e t i o n , f e l t i t necessary to add a few days. The problem became the sheer
scope of c o r r u p t i o n among the p o l i t i c i a n s . They would b r i b e the high p r i e s t to
i n s e r t even months at a time to postpone e l e c t i o n s . So when Caesar marched upon
Rome, what was once winter was now summer because the c o r r u p t i o n had become so
prevasive, t h a t even the calendar no longer functioned.

The reason why I disagree with those who worship Cicero and Cato as the
steadfast Republicans against tyranny, i s f o r w i t h i n t h e i r comments, one f i n d s
e i t h e r sublime ignorance, o r the covert acceptance of the o l i g a r c h y form of
prevasive c o r r u p t i o n . One would expect Cicero to cheer the reestablishment of a
calendar that eliminated the " d i s c r e t i o n " of a high p r i e s t to manipulate the
p o l i t i c a l e l e c t i o n s i f he were a t r u e Republican. Cicero s l i p p e d when a f r i e n d had
reminded him t h a t the C o n s t e l l a t i o n Lyra was due to r i s e , he remarked; "Yes, by e d i c t . "
(Putarch recorded). I f we look at the sweeping l e g a l reforms and reorganization of
J u l i u s Caesar the p o l i t i c i a n i n the very b r i e f few years of h i s power before he
was assinated i n the Senate i t s e l f , we see not the machinations of a man bent
upon personal power f o r s e l f - i n t e r e s t , but the actions of a major profound reform
to attack the corrupt Leviathan - the Bureaucracy. Of a l l the men throughout
recorded h i s t o r y , there i s no leader who t r u l y understood the issues of a debt
c r i s i s and the economic complexity than J u l i u s Caesar. I w i l l reserve that f o r
another day. For now, the Leviathan i s the bureaucracy and always has been. When
those at the top decide to be statemen rather than corrupt p o l i t i c i a n s , they have
often paid f o r t h e i r unbiased attempts to save man from himself with t h e i r l i v e s .
7
 The e t e r n a l b a t t l e i s c l e a r l y intertwined with the pretense of r e l i g i o n , i f
not f o r anythinq e l s e , but t o t r y t o j u s t i f y t h e i r p o s i t i o n . The c i v i l war i n England
demonstrated how a l s o there was t h i s underlying current of t r y i n g to grab wealth.
The Revolution brought an end t o the r e i g n of Charles I (1600-1649) who was beheaded.
Monarchy was thus ended and the P r o t e c t o r , P u r i t a n Oliver Cromell (1599-1658) who
s e i z e d power and r u l e d between 1653-1658 even p l a c i n g h i s own p o r t r a i t on the coinage.

Under the pretense of r e l i g i o n , the r e i g n of t e r r o r began. Christmas was outlawed

and no one was allowed to celebrate with a dinner i n t h e i r home. State o f f i c i a l s were
charged with the duty to peak i n t o people's homes to ensure they obeyed the law. Then
a l l sports were outlawed because they l e d t o cursing. I t became a felony to k i s s your
w i f e i n p u b l i c . Plays were outlawed because t h i s was i n r e a l i t y l y i n g . Every time
r e l i g i o u s f a c t i o n s get c o n t r o l of the s t a t e , they h i s t o r i c a l l y attack a l l amusements
as s i n f u l . This i s the same f a c t i o n that would c o n f i s c a t e a l l wealth and execute i f
they could the r i c h .

John Stuart M i l l (1806^-1873) wrote a landmark piece he t i t l e d - "On Liberty."

In h i s work, he pointed out that " l e t us not f l a t t e r ourselves that we are yet free
from the s t a i n of l e g a l p e r s e c u t i o n . " (Oxford World's C l a s s i c s ed, 1998, p34). M i l l ' s
review of the p r i n c i p l e of l i b e r t y i s very c r i t i c a l f o r i f we would l i m i t a l l the
powers of the state to r e s t r a i n o n l y violence and allow a l l other disputes to be
s e t t l e d between the people, the world would be s t a r k l y d i f f e r e n t . M i l l wrote:

"The only purpose f o r which power can be r i g h t f u l l y exercised over

any member of a c i v i l i z e d community, against h i s w i l l , i s t o prevent
harm to others. His own good, e i t h e r p h y i s i c a l l y or moral, i s not a
s u f f i c i e n t warrant ... over himself, over h i s own body and mind,
the i n d i v i d u a l i s sovereign."
On Tliberty
Chief J u s t i c e Marshall of the US Supreme Court a l s o wrote i n the cornerstone
d e c i s i o n of American jurisprudence obviously ignored by v i r t u a l l y a l l federal judges:

"The very essence of c i v i l l i b e r t y c e r t a i n l y c o n s i s t s i n the r i g h t of

every i n d i v i d u a l t o c l a i m the p r o t e c t i o n of the laws, whenever he
receives an i n j u r y . "
Marbury v Madison, 5 US 137, 163 (1803)

Unfortunately, there seems t o be no form of government that ever works f o r the

t r u e b e n e f i t of the people. Our pretended Democracy w i l l never i n v e s t i g a t e a judge nor
the Executive, and the Supreme Court claims by Rule 10 i t i s i t s d i s c r e t i o n to even
v i n d i c a t e the C o n s t i t u t i o n a l r i g h t s of any c i t i z e n . There i s nothing that a c i t i z e n
has anymore, f o r even property can be taken by the government under i t s concepts of
r i g h t of domain. When i t comes t o t a x a t i o n , you are merely the property of the s t a t e ,
a s l a v e . Americans owe taxes no matter where they earn income even i f they l i v e over-
seas because the state's power supersede i n d i v i d u a l r i g h t s . Your income i s not your
own, i t i s the property of the s t a t e . How d i d we end up l i k e t h i s ?

Government t w i s t s f a c t s and manipulated the people t o i t s own s e l f - i n t e r e s t . I f

we look a t King Henry VXIX (1509-1547), he created h i s own church, that j u s t so happens
to have been at the time when h i s treasury was i n bad shape. Was i t r e a l l y r e l i g i o n , or
economics? When we look a t Constantine I (the Great), i t i s true that he championed
C h r i s t i a n i t y , but that j u s t i f i e d him c o n f i s c a t i n g the vast hoards of wealth held i n
pegan temples. He was not b a p t i z e d u n t i l h i s death bed. In j u s t these two cases, i f
we f o l l o w the money, we see d i f f e r e n t motives. The Spanish Inquisition a l s o r e s u l t e d
i n the c o n f i s c a t i o n of wealth, and to win i n pretended t r i a l s , they would d i g up even
a corpse and place i t on t r i a l t o c o n f i s c a t e the estate from h i s h e i r s .

8
 R e l i g i o n seems t o be f o r the masses, not the p o l i t i c i a n s . There i s no evidence
to show any honorable government f o r whenever i t s own treasury i s i n need, magically
there i s a r e l i g i o u s dispute t h a t somehow ends up i n government always c o n f i s c a t i n g
the wealth of temples. The French Revolution i s yet another example. To f u n d the
r e v o l u t i o n , the C a t h o l i c Church was portrayed as l i n k e d w i t h the King and that then
j u s t i f i e d t u r n i n g against the wealth of the Church. Under the C i v i l C o n s t i t u t i o n of
the Clergy i n 1790, the Church owned about 10% of the lands coming out of the o l d
feudal system. This r e s u l t e d i n open war between the r e v o l u t i o n a r i e s and the Church.

I t was Pope Pius VT who would pay f o r the desperate

actions of the State t o c o n f i s c a t e the wealth of the
C a t h o l i c Church with h i s l i f e . In October 1781, the hard
times o f economic d e c l i n e l e d the Holy Roman Emperor
Joseph II (1765-1790) to issue the Edict of Toleration
because of the r i s e of non-Catholic m i n o r i t i e s , or so he
claimed. By suddenly claiming the need to be r e l i g i o u s l y
t o l e r a n t , as part of the same decree he declared that a l l
monasteries were d i s s o l v e d and t h e i r lands c o n f i s c a t e d as
being "unnecessary" and he redrew the diocesan boundaries
of the C a t h o l i c Church. These were c e r t a i n l y not acts of any
t o l e r a n c e . He then assumed c o n t r o l of a l l seminaries and
abolished a l l f e s t i v a l s . One does not'overthrow the c l e a r Pope Pius VI
majority f o r a m i n o r i t y i f there i s not economic gain, which (1775 1799)
was the great wealth of lands accumulated through the dark
ages.

It was Joseph I I who gave the idea to the French t o c o n f i s c a t e the wealth of the
Church t o fund i t s r e v o l u t i o n . The French demanded an oath of f i d e l i t y t o the State
by the Clergy. Pius VI objected on March 10, 1791 and t h a t established the forced
s p l i t of the French Church with Rome. I t i s true that Pius VT supported monarchy and
feared the new republicanism r i s i n g . This was due t o the f a c t that he saw the band
of French Revolutionaries as a invading mob. A f t e r Napoleon defeated the Austrians,
he turned against Rome i n 1796. Napoleon forced the Pope t o s i g n a peace t r e a t y on
February 19th, 1797 a t Tolentino. But by December, a r i o t of the people broke out
against the French i n 1798 and t h a t l e d to the f u l l occupation of Rome by the French.
The I t a l i a n s themselves had grouped together and declared an I t a l i a n Republic as d i d
the French. The French would have no such t h i n g . The f o l l o w i n g year, the French then
seized Pope Pius VT i n March of 1799. He was imprisoned and held i n s o l i t a r y confine-
ment u n t i l he d i e d a mere prisoner of p o l i t i c a l power. The long contraction i n the
temporal power of the Church came t o a f i n a l r e s o l u t i o n where a l l that remained was
Vatican C i t y f i n a l l y recognized as a sovereign s t a t e i n 1929. The a s s a u l t on the
Church was a t h i r s t f o r wealth rather than r e l i g i o n . Most of Southern Europe remained
C a t h o l i c , demonstrating that there was a power play f o r wealth no d i f f e r e n t than the
Crusades plundered Constantinople and took the wealth back t o Venice when t h i s was a
b a t t l e between C h r i s t i a n forces.

There i s simply no evidence that Government ever t r u l y respects religion, for i t

has been a t o o l t o manipulate the people more than anything from the government's
view. Constantine I (The Great) not merely c o n f i s c a t e d the wealth of a l l pegan temples,
he supported C h r i s t i a n s because p o l i t i c a l l y t h i s supported h i s views that there was
one God and thus there should be one Empire w i t h one Emperor.

9
Moscow

The
Third
Rome

The Russian Revolution proclaimed atheism as the n a t i o n a l p o l i c y so once more

there could be the c o n f i s c a t i o n of r e l i g i o u s property. The Russian Orthodox Church
was the s u r v i v i n g body a f t e r the f a l l of Constantinople. Moscow e f f e c t i v e l y became
the Third Rome. Once more, i t was r e l i g i o n that became the r i c h emerging from the
dark ages because there was no trade, c a p i t a l i s m , or even property ownership. The
c o l l a p s e of Rome i n the Western Empire l e d to the suburbanization of Rome as people
i n i t i a l l y f l e d the r i s i n g taxes that began under the r e i g n of Diocletian (284-305AD).
In f a c t , i t was Diocletian who i n s t i t u t e d a pastport system to r e s t r i c t movement t o
be able to c o l l e c t h i s taxes. Yet the suburbanization gave way t o the trend toward
feudalism and we saw the same desperate r i s e i n taxes i n Constantinople that created
the same trend.

I t i s the i n a b i l i t y of the s t a t e t o ever properly manage i t s expenses that has

caused countless wars and the d e c l i n e i n economic progress. No matter what type of
government that e x i s t s , i t always f a i l s . Communism f e l l i n China and Russia f o r they
a l s o f a i l e d t o manage t h e i r expenses.

We f i n d the great expansion of Roman C i t i z e n s h i p under the mad-man Emperor

Caracalla (211-217AD). One could h a i l him as a great c i v i l r i g h t s leader. But i f
we look deeper, only Roman c i t i z e n s p a i d i n h e r i t a n c e taxes. Caracalla bestowed
c i t i z e n s h i p upon everyone he could, so they became subject t o h i s t a x a t i o n .

What we must understand i s that the key t o understanding p o l i t i c s and the f a t e

of the g l o b a l economy, i s t o f o l l o w the money. I t was the great movement to create
monasteries that i n s t i t u t e d the r e b i r t h of the Enlightment i n s o f a r as they brought
back the study of ancient knowledge. The languages of ancient greek and l a t i n had
been l o s t . Therefore, as monasteries formed, t h i s created the r e v i v a l of the Roman
p r a c t i c e of p u b l i s h i n g books by copying them by hand and the people who d i d the
copying were known as s c r i b e s .

The Monastery movement brought back to l i f e the o l d Roman Scriptoriums. The

spread of knowledge was t r u l y enabled by the i n v e n t i o n of the p r i n t i n g press by
Johannes Gutenberg (1390-1468). This replaced the r o l e of monastic scriptoriums
and thus t h i s a l s o l e d to the tempting land values held by the monasteries. This
movement to s e i z e the wealth of monasteries by p o i n t i n g t o the corruption i n the
Church, i s the same model used today t o point at the bonuses paid to p r o f e s s i o n a l s
to j u s t i f y c o n f i s c a t i o n of wealth from the i n d i v i d u a l r i c h . Government always turns
events to j u s t i f y why t h e i r t a r g e t does not deserve what they possess.
10
 Middle Ages
The attack upon the
C a t h o l i c Church by the various
states from Henry VTII onward
was a t h i r s t f a r WRarth, Br-
f a c t , i n 1512 Henry VTII had
j o i n e d h i s f a t h e r - i n - l a w who
was Ferdinand II of Aragon
against the French contrary to t h ^
advice of h i s counselors. This
war was e s s e n t i a l l y i n defense
of the Pope. Henry VIII had no
m i l i t a r y t a l e n t himself.

Henry VTII e s s e n t i a l l y
abdicated the r u l e of England
to h i s good f r i e n d and Cardinal
of the Church Thomas Wolsey.
Between 1515 and 1527, Henry
VTII d i d l i t t l e governing, and
d i d more spending than he
should have.

The death of Maximilian I

as Holy Roman Emperor i n 1519,
l e d t o the e l e c t i o n of h i s
grandson Charles V who thus
brought the crowns of Spain,
Burgundy (with the Netherlands),
Feudalism lacked private ownership, and wealth and A u s t r i a c o n s o l i d a t i n g the
was land before the Industrial Revolution r o y a l dynasties of Europe, with
the exception of France.

.By 1521, Henry VTII became merely a subordinate outpost of Charles V's Imperial power.
Wolsey's attempt to reverse a l l i a n c e s sparked trade disputes and the v i t a l E n g l i s h c l o t h
trade with Netherlands was e f f e c t e d . This created a f u r t h e r economic d e c l i n e and a r i s i n g
degree of unpopularity. Henry VTII concluded that Wolsey's p o l i c y f a i l e d and he had t o go.
England became l a r g e l y a joke i n Europe under Henry VTII and t h i s l e d t o r i s i n g unpopularity
even f o r Henry. Henry VTII u l t i m a t e l y turned to Thomas More (1478-1535). In 1523, Wolsey
c a l l e d a Parliament seeking a r i s e i n taxes, but that voted by Parliament, was w e l l below
that which was needed. The next year, a Special Tax was imposed, but i n the face of f i e r c e
opposition, i t had t o be rescinded the next year. By 1527, Henry VTII was f a c i n g t o t a l
bankruptcy. He had no i n f l u e n c e overseas and was becoming unpopular at home.

His wife Catherine was unable t o provide a male h e i r . Only one c h i l d survived - Mary.
The r i s i n g unpopularity made Henry f e a r that without a male h e i r , no one knew what would
happen to England i f a female came to power. Henry thus became i n f a t u a t e d with Anne Boleyn.
Yet Anne Boleyn proved to be the r e a l power behind the throne and was able to manipulate
Henry to achieve her goals. She convinced him that h i s marriage was against d i v i n e law
since Catherine of Aragon who had been married t o h i s e l d e r brother Arthur who d i e d i n
1502. Boleyn convinced Henry that the many deaths of h i s c h i l d r e n was God's judgment. I t
was p o l i t i c a l , f o r Henry p e t i t i o n e d Pope Clement VTI f o r an annulment, but the Pope had
previously been imprisoned by Charles V and now Henry was asking f o r r e l i e f from the
Pope but Catherine was the aunt of Charles V. Pope Clement was a prisoner between 1527-28.
Consequently, what would have been reasonable, was barred by the r e l a t i o n t o Charles V
11
 Henry turned t o Wolsey who was t r y i n g t o c l i n g t o h i s power. He managed t o
create a t r i a l i n England, but t h i s was f r u s t r a t e d by the Pope i n 1529. When t h i s
f a i l e d , Henry got r i d of Wolsey. Thomas More thus rose t o the chancellorship. I t
i s c l e a r t h a t Henry saw the Pope as a subordinate o f Charles V and not a true and
i m p a r t i a l leader o f the Church.

More t o l d Henry he d i d not approve o f the divorce. Henry v a c i l l a t e d f o r about

3 years, hoping t h a t Rome would change i t s mind. Anne Boleyn wanted the throne and
convinced Henry he d i d not need t o subjugate himself t o Rome. F i n a l l y , i n A p r i l
1532, c o n t r o l o f the c o u n c i l was won by Thomas Cromwell (1485-1540), who h e l d f u l l
c o n t r o l f o r about 8 years. Cromwell created the break w i t h Rome and r u t h l e s s l y d i d
i n f a c t s e i z e the Church p r o p e r t i e s t o r e f i l l the treasury. Henry VTII married
Anne Boleyn i n January 1533. The Pope r e t a l i a t e d with a sentence of excommunication.

The model became that o f Constantine I whereby he was the Emperor over both
t h a t s t a t e and.the church. Henry had never intended a r e l i g i o u s r e v o l u t i o n . But t h i s
was created i n part due t o (1) p o l i t i c a l c o n f l i c t s , and (2) economic 'bankruptcy. I t
was the s e i z u r e of the monasteries that were d i s s o l v e d i n 1536-1540, t h a t was even
followed by a t a x on the c l e r g y , but Cromwell a l s o a l t e r e d the power-base, and made
the k i n g subordinate t o Parliament. Yet the k i n g r e t a i n e d the executive f u n c t i o n of
prosecuting the laws, as we have s t i l l today. The respected Thomas More f e l l t o the
new "treason" laws and was executed along w i t h about 50 others. The E n g l i s h f a m i l i e s
of Pole and Courtenay were axed f o r treason charges that they were l i n k e d t o the
Pope, but i n r e a l i t y , they could c l a i m r o y a l blood and were thus adversaries t o the
Tudor l i n e .

Cromwell thus expanded the power of Parliament and p r o f i t e d from the seizure
of the monasteries. This break w i t h Rome set i n motion the concept that the wealth
represented now i n land emerging from the middle ages, could be taken from the
church j u s t as the c i t y o f Constantinople was plundered. God notwithstanding, the
bureaucracy cares nothing about who holds the wealth be i t man o r gods. The s t a t e
has a never ending a p p e t i t e f o r wealth, and i t matters not what t a l e must be spun
to j u s t i f y i t s seizure.

The church was picked clean by v i r t u a l l y every government. I t was not u n t i l

1929 that Vatican C i t y was given i t s own status as a sovereign s t a t e . U n t i l then,
i t was nothing more than the s p o i l s of war - a war of the government as always and
forever, against the people. Today, we a r e l i v i n g under the pretense that somehow
we l i v e i n a democracy. We live' merely i n a d e l u s i o n . The power o f the people today
i s no more powerful t o change the f a t e o f a n a t i o n than a t any time throughout the
t o r t u r e d past of h i s t o r y .

The f i r s t step i n understanding the dangers we face i s t o i d e n t i f y the foe.

When there was no r u l e o f law j u s t the greed o f the s t a t e , people d i d not t r u s t
any bank and b u r r i e d t h e i r wealth. This made the climb out o f the dark ages slow
and p a i n f u l f o r the v e l o c i t y o f money, c o n t r a c t s , c a p i t a l , was almost non-existent
or u n r e l i a b l e .

There w i l l be those who c l i n g t o the idea that r e l i g i o n i s r e a l l y the core.

I would argue that d i f f e r i n g philosophies aside, how one j u s t i f i e s the past i n h i s
mind i s not always r e a l i t y . The trend against the i n d i v i d u a l o r any group be i t
the church o r the r i c h , b o i l s down t o one t h i n g . The s t a t e ends up with the cash
no matter what the dispute, group, theory, r e l i g i o n , o r philosophy. This has been
the e t e r n a l sea of p o l i t i c s t h a t ebbs and flows without end. I t now appears that
the a t t a c k upon the small nations that have been tax s h e l t e r s w i l l lead t o the
migration o f people as i n Roman days, and the t h i r s t f o r money i s no d i f f e r e n t than
the sack of Constantinople o r the Church. I t ' s always the same. Show me the money]
12
 The e v o l u t i o n of the C a t h o l i c Church i s deeply i n t e r t w i n e d with economics. I t
was the c o l l a p s e of the economy during the r e i g n of G a l l i e n u s (253-268AD) that had a
profound impact. The t a n g i b l e value of money f e l l t o about l/50th of i t s former value
causing taxes t o be c o l l e c t e d i n k i n d , the t a k i n g of property and goods. The people's
prayers went unanswered. The major opponent had remained P a r t h i a (Persians). This was
Rome's " c o l d war" and t h e i r r e l i g i o n was Zoroastrianism d a t i n g back to 6th Century BC
based upon one God. These were the "Wisemen" of the N a t i v i t y i n C h r i s t i a n i t y . When
prayers- were not answered i n the face of such economic devastation, this--is-how- we
f i n d the i n c r e d i b l e r i s e of C h r i s t i a n i t y . I t i s a l s o why the greatest r e l i g i o u s per-
secution takes place under D i o c l e t i a n (284-305AD). To the Pegans, they were being
punished by those t u r n i n g t o C h r i s t i a n i t y , and t o the C h r i s t i a n s , the Roman gods had
deserted them.
When Rome f e l l , i t crumbled around the Church. There was no c i v i l i z a t i o n nor
was there any s u r v i v i n g government and the l i g h t of man d i e d . As the dark ages began
to fade and mankind emerged walking toward the l i g h t of c i v i l i z a t i o n and the r i s e of the
p o l i t i c a l s t a t e , the t h i r s t f o r wealth began to r e t u r n . The Church was seen as
having power and wealth f o r i t i n h e r i t e d much land. We begin to f i n d the c l e a r
attempts t o s t a r t manipulating that power with the i n t e r f e r e n c e of p o l i t i c a l
a s p i r a t i o n s t o c o n t r o l the Papacy. The f i r s t Anti-Pope appears as e a r l y as 355AD
as F e l i x I I . The temptation t o c o n t r o l the Papacy continued and the c l a s h between
Rome and Constantinople began when the Byzantine Emperor c a l l e d the Council of
Chalcedon and declared that the p a t r i a r c h (bishop) of Constantinople was on a
equal f o o t i n g w i t h t h a t of Rome i n 451 AD.

As Charlemagne came to power i n the 700s, the Papacy was now protected by the
French c o u r t , but the model design was that of Constantinople and Roman h i s t o r y
i t s e l f . The k i n g would r u l e over a l l - church and s t a t e . The wealth present i n
the Church a t Rome continued t o grow as i t d i d i n ancient pegan temples that had
a t t r a c t e d Constantine I . This time, during the 9th and 10th Centuries, the Roman
papacy was v i r t u a l l y taken over by the German Emperors.

I t was the r i s e of Pope Leo J_X (1049-1054) who was a great reformer that we see
led to what was known as the I n v e s t i t u r e C o n f l i c t of 1 075 under Pope Gregory VTI
(1073-1085), where he threatened to excommunicate any c i v i l r u l e r who attempted to
i n v e s t the holder of an e c c l e s i a t i c a l o f f i c e w i t h the symbols of power that was the
show of power that a c i v i l r u l e r had over the Church. This b a t t l e between the s t a t e
and the Church l e d t o economic e f f o r t s to suppress the Papacy. This c o n f l i c t l e d
to the s e l l i n g of such o f f i c e s during the 1 3th Century. This b a t t l e between the
Church and various s t a t e r u l e s l e d to i n c r e a s i n g f i n a n c i a l d i f f i c u l t i e s . The French
3ssentially captured 'the Papacy known as the "Babylonian C a p i t i v i t y " p l a c i n g i t at
Avignon, France (1309-1377). This l e d to the c o n c i l i a r movement, an attempt by
bishops t o r e g a i n c o n t r o l over the church, and loud c a l l s f o r sacramental and
o r g a n i z a t i o n a l reform. By the time we reach the Renaissance Popes such as J u l i u s
I I (1503-1513), we f i n d him a c t u a l l y defending the Church i n b a t t l e .

The p o i n t of t h i s review i s simply t h i s . A l l organizations evolve i n t o a s t a t e

of c o r r u p t i o n . Even the C a t h o l i c Church f e l l to such human t r a i t s . But the important
lesson from t h i s review i s t h a t the Church was the " r i c h " where there were only
nobles and s e r f s during the Middle Ages. I t was the p r i z e of wealth, j u s t as the
pegan temples were a p r i z e to fund the war f o r Constantine I.

What t h i s proves above a l l , i s there i s no r e l i g i o n w i t h i n the Leviathan. The

o n l y t h i n g we see i s the s e l f - i n t e r e s t of the s t a t e o f f i c i a l s , nothing more. This
i s why the p o l i t i c a l forces have embraced Marx, because i t j u s t i f i e s t h e i r personal
goals and they can pretend they are doing good j u s t as they pointed t o the very
c o r r u p t i o n w i t h i n the Church t o j u s t i f y s e i z i n g i t s wealth. I t matters not, for
the s t a t e w i l l use whatever i t takes to consume power and wealth. This i s the
r e a l Leviathan.
13
 the *tt\e
There i s l i t t l e doubt that i n modern
terms, Americans s t i l l cast t h i s b a t t l e as
merely between the r i c h and the poor as very
c l e v e r l y played-out by p o l i t i c i a n s on t h e -
back of K a r l Marx.
1
Many s t i l l c a l l t h i s "ReaganQmics' or
" t r i c k l e down economics" when i n f a c t the
f i r s t to question the Marxist seizure of the
p o l i t i c a l s t a t e i n the e a r l y 20th Century was
former Prime M i n i s t e r Margaret Thatcher, tcclay
known as "Lady Thatcher" but to her opponents,
they tagged her w i t h the t i t l e "Iron Lady."

What we forget i n our time l i n e of events

i s that Thatcher came t o power i n B r i t a i n 18
months before Reagan. Of the two most t r u l y
impressive people I have ever met, I would
have say Lady Thatcher who i n s t i n c t i v e l y could
f e e l cycles i n her veins, and M i l t o n Friedman
who understood the dangers of i n t e r v e n t i o n .

This b a t t l e between the L e f t and the Right has been raging on f o r thousands of
years. Yet c l e v e r l y hidden a t i t s core, i s the very t h i r s t f o r power and wealth t h a t
becomes concentrated w i t h i n Government. There has been a major change i n t h i s b a t t l e
for as i t f i r s t appeared i n h i s t o r y as one nation invading another as a means t o j u s t
increase i t s money supply p r i o r t o w e l l developed i n t e r n a t i o n a l trade, t h i s tended
to migrate t o feeding the hunger of the s t a t e f o r wealth i n the form of t a x a t i o n that
was targeted at the people. When t h i s gave way because of tax r e v o l t s and migration,
we begin to see t h a t the s t a t e enacts laws t o prevent movement i n order to better
c o l l e c t taxation.

Both the invention of a passport and b i r t h records, i s due e x c l u s i v e l y to the

state's desire t o c o l l e c t taxes. Thus, the state's t h i r s t f o r wealth, has always been
a d i r e c t assault against the l i b e r t y of the people. As Carthage demonstrated that
trade among nations was the key to a q u i r i n g wealth, Rome turned and crushed that
s t a t e a t h i r d time and then adopted the trade routines o f Carthage.

When the power of the s t a t e becomes weakened as i t i s today, desperate measures

have o f t e n followed. Just as the Romans invented, passports and b i r t h records to ensure
tax c o l l e c t i o n , we have taken t h i s to' a new l e v e l i n s o f a r as we have by decree, made
every c i t i z e n a slave. I f you earn any income overseas, i t now belongs to the s t a t e
for i t i s no longer the i d e a that you are using the f a c i l i t i e s of the state and thus
should pay f o r them, i n t o the f a c t that your mere b i r t h as an American i s no d i f f e r e n t
than a slave. Whatever you earn no matter where, belongs t o the s t a t e .

Americans generally remain ignorant of the f a c t t h a t other than Japan, c i t i z e n s

of other nations pay taxes only on what i s earned i n that country. When the United
States was formed, there was a major debate over t h i s very question. I f you were
born a B r i t i s h C i t i z e n , then even i f you committed murder i n France, you could not
be c r i m i n a l l y punished there. You were placed i n chains and sent back t o your k i n g
who e s s e n t i a l l y owned you as h i s "subject" and thus France could not punish the
property of another sovereign and more than a s l a v e .

14
 Since the United States r e v o l t e d against t h i s very concept of monarchy, t h i s
presented a huge l e g a l problem that i s discussed i n great d e t a i l i n a major Supreme
Court case, Reid v Covert, 351 US 487 (1956). The burning question was; What
would happen i f a f o r e i g n person committed a crime i n the United States? Should he
be sent i n chains t o be punished by h i s k i n g when the new Government was r e v o l t i n g
against monarchy? Thomas J e f f e r s o n argued that any person who came t o the United
States "was o b l i g a t e d E 6 ~ obey the l a ^ ' ^ e ^ i ^ ' ^ n B ' ^ D u l i S *&avthesame r i g h t s , " p r i v i l e g e s ,
and immunities o f a c i t i z e n . There would be no sending people i n chains t o a k i n g
of a f o r e i g n land.

With the b i r t h of the United States came a r e v o l u t i o n a r y idea that i s o f t e n

l o s t i n the h i s t o r y books. This i s why worldwide t a x a t i o n i s morally wrong f o r
what we a r e now doing t o our own people, i s p r e c i s e l y what we r e v o l t e d against.
We are not the property o f the s t a t e f o r what d i d we r e v o l t against i f i t was not
to be a f r e e i n d i v i d u a l ? Even the War of 1812 was fought because B r i t a i n took the
p o s i t i o n t h a t an American born i n England was s t i l l a subject, and thus American
ships were being seized and the American i n d i v i d u a l s were now forced t o serve i n
B r i t i s h s h i p s . So you see, we have come f u l l c i r c l e and the s t a t e counts upon the
Marxist philosophy t o j u s t i f y s t r i p p i n g every American of the very l i b e r t y that
the Revolution was fought f o r , the r i g h t t o be an i n d i v i d u a l .

Government w i l l destroy any church, temple, r e l i g i o n , o r group by r e l a b e l l i n g

i t s purpose, d e c l a r i n g i t i s now e v i l , and s e i z e i t s wealth. Currently, Government
has embraced K a r l Marx w i t h open arms f o r he has proclaimed that " s o c i a l j u s t i c e "
warrants the c o n f i s c a t i o n o f a l l wealth and t o be placed d i r e c t l y i n the hands o f
the s t a t e . This i s l i k e Christmass i n J u l y f o r Government.

WE ARE AT THE PRECIPICE OF BANKRUPTCY

L i k e countless times before, the ]^viathan o n l y sees i t s s e l f - i n t e r e s t . I t i s

incapable o f ever l e a r n i n g from h i s t o r y , f o r i t sees only i t s own power and assumes
i t can j u s t i n t i m i d a t e i t s way through l i f e . But t h i s time i t i s d i f f e r e n t . We
are so f a r i n debt on a g l o b a l basis thanks t o Marx and Keynes, that we cannot
p u l l back f o r that would r e q u i r e admitting f a u l t , and r e l i n q u i s h i n g a t l e a s t some
power.

I have been asked: | r e a l l y think government w i l l p u l l back and prevent the

d e c l i n e and f a l l of c i v i l i z a t i o n ? They have never avoided such d i s a s t e r s ever before.
Would they understand that once we abandoned the gold standard, money became not a
f i a t , but was transformed i n t o the common shares of a modern s t a t e no d i f f e r e n t than
a corporation? A f i a t currency i s one not backed by anything. Currency today i s a
common share o r stock and i s backed by the wealth o f the n a t i o n that includes i t s
productive c a p a c i t y , that r i s e s and f a l l s based upon confidence.

When currency reappeared i n paper form f o r the f i r s t time post-Revolution i n

the C i v i l War, i t was a t f i r s t a form o f c i r c u l a t i n g barer bond. I t had a schedule
p r i n t e d on the reverse showing a t a b l e o f i n t e r e s t r a t e s that d i c t a t e d the value o f
the currency depending upon how long i t remained i n c i r c u l a t i o n . When t h i s p r a c t i c e
stopped, t h i s i s when the terra was coined "greenback" meaning there was nothing on
the reverse s i d e but green i n k .

We should not confuse a f i a t currency as was i s s u e d i n Germany i n the e a r l y

1920s. There, the government knew not what i t was doing. I t was a new r e p u b l i c and
assumed the r o l e o f a s o c i a l s t a t e . I t b e l i e v e d i t c o u l d j u s t p r i n t money f o r whatever
i t wanted without l i m i t a t i o n o r t i e s t o economic production. That became a " f i a t "
currency that was l i n k e d t o nothing.

15
 The reason I do not advocate a gold standard, i s because gold i s very r a r e
and cannot be made a p r a c t i c a l currency today f o r o f f i c i a l use because i t s supply
i s not secured i n any steady growth pattern. We have f i t s of serious d e f l a t i o n
when the economy i s doing w e l l but there i s such a shortage of gold, that we end
up c r e a t i n g d e f l a t i o n and during the l a t e 1300s because we cannot expand money suoply.

The best of both worlds i s to leave gold as the emergency free choice where
people can opt to convert t h e i r currency to gold whenever they f e e l so compelled.
Those who assume we should have a gold standard r a t h e r than a " f i a t " paper system,
f a i l to understand that the c o l l a p s e of governments and economies has often been
due to the shortage of gold. A f i a t currency i s one that i s not l i n k e d to some
t a n g i b l e form of wealth, and that i s the productive capacity of a nation.

We cannot have a n a t i o n a l wealth without the r u l e of law. I f there i s no r u l e

of law, then we w i l l be back i n the dark ages. There w i l l be no banks, and one's
g o l d i s b u r r i e d somewhere to protect i t from robbery.

Our problem i s not even the s o c i a l concerns of the people. I t i s that we spend
more than we have, and we promise that which can never be provided. L i k e General
Motors, the legacy costs keep going and t h i s i s not l i n k e d to current production.
I f the production d e c l i n e s sharply, the company w i l l not earn what i t needs to pay
to r e t i r e d workers. The whole scheme f a l l s apart. This i s now r i s i n g among the c i t i e s
s t a t e s , and even w i t h i n the f e d e r a l government. The promises of a s o c i a l state j u s t
cannot be achieved because there i s no long-term management.

We must make that next leap i n the economic e v o l u t i o n . We must abandon the
various forms of d i r e c t t a x a t i o n and l i m i t them to what the founders of t h i s nation
took c a r e f u l c o n s i d e r a t i o n to create - i n d i r e c t taxes. Once there i s no personal
a c c o u n t a b i l i t y to the s t a t e and one i s no longer a slave but t r u l y f r e e , then the
s t a t e no longer needs to be b i g brother and track your every move to monitor your
productive capacity. That i s a t r u e free nation.

Money i s not a f i a t , but a common stock created by the n a t i o n a l wealth. I f we

stopped the insane borrowing, then the N a t i o n a l Debt that once stood under Reagan
a t $1 t r i l l i o n , would be a t best $4 t r i l l i o n since $6 t r i l l i o n of the $10 t r i l l i o n
now owed was only f o r i n t e r e s t to borrow what we d i d not have. So i f we had p r i n t e d
and increased the money supply by $4 t r i l l i o n instead of borrowing $10 t r i l l i o n , we
would have f a r l e s s i n f l a t i o n and we c e r t a i n l y would not have been indebted to any
f o r e i g n nation. How can we borrow from an a l l e g e d p o l i t i c a l adversary?

Just as f o r e i g n persons must obey our laws when t r a v e l i n g here, then those who
use the s e r v i c e s should pay t h e i r f a i r share i n i n d i r e c t taxes. That means that even
i l l e g a l a l i e n s would be paying t h e i r f a i r share. So many problems would s t a r t to
disappear i f we do a comprehensive reform.

I have been asked: Do I r e a l l y t h i n k a c e n t r a l bank i s necessary? The answer i s

yes because j u s t look a t the v o l a t i l i t y i n i n t e r e s t rates before 1913. There were
huge swings t h a t were seasonal, such a r e t a i l stores often do as much as 40% of t h e i r
business i n December. There were a l s o swings due to temporary shortages. The problem
we have with c u l t i v a t e d investment bankers being put i n t o p o s i t i o n s o f power who
s t i l l have vast share holdings i n t h e i r l a s t job, i s corruption at i t s best. This i s
what creates the o l i g a r c h y - a word coined by Socrates i n Greek - " o l i g a r c h i a . " Any
person who holds such a p o s i t i o n must be t r u l y d i s i n t e r e s t e d , meaning, they can have
no personal i n t e r e s t s a t stake whatsoever. They must be divested of a l l p r i v a t e
i n t e r e s t s and that requires men of stature a t the end of t h e i r career, not a t t h e i r
beginning or i n the middle from which they can b e n e f i t i n the future by any d e c i s i o n
made c u r r e n t l y .
16
 The s e l f - i n t e r e s t o f Hank Paulson and Dick Cheney to the founding fathers was
simply unacceptable. At the s t a r t o f the United States, having such i n t e r e s t s would
have been regarded as c r i m i n a l , i f not even t r e a s o n i s t . We cannot allow ex-Chairman
of investment banking firms t o run a l l the government banking i n s t i t u t i o n s by mere
p o l i t i c a l appointment and s t i l l be major shareholder i n t h e i r former e n t i t y . This i s
corruption a t i t s worst and i s a t the heart o f the Leviathan. __

We must respect that both s i d e s of the debate have some v a l i d points that are
worth l i s t e n i n g t o . But we cannot adopt e s t a b l i s h e d i n s t i t u t i o n s l i k e the IMF and the
World Bank f o r they have e s t a b l i s h e d c u l t u r e s and are themselves deeply laced with
corruption.

The C e n t r a l Bank that needs t o be created i s one t h a t only provides the c l e a r i n g

mechanism among nations. The IMF and World Bank can s t i l l perform rescues l i k e a
welfare o f f i c e . However, the C e n t r a l Bank we need t o create can take the best o f
what was created i n Europe i n s o f a r as r o t a t i n g the upper management and that the
departments should be s t a f f e d by only experienced people as I saw i n China. What we
need t o avoid i s the mistake o f Europe i n s o f a r as assuming t h a t one c e n t r a l bank s h a l l
e s t a b l i s h one i n t e r e s t r a t e f o r a l l nations w i t h i n the Euro. That i s t a k i n g the post-
war mistakes and was not the o r i g i n a l design o f the Fed when created i n 1913.

Each n a t i o n w i l l r e t a i n i t s c e n t r a l bank and allow gold t o f l o a t , i t s currency

to f l o a t , and i t s i n t e r e s t rates t o f l o a t . This w i l l allow d i s p a r i t i e s among nations
to n a t u r a l l y a t t a c k c a p i t a l as w e l l as r e p e l c a p i t a l i f the world d i s l i k e s the c l e a r
politicial policies.

We should eliminate sovereign debt. The debt should be converted t o currency

and may then be used t o i n v e s t i n the p r i v a t e sector. Thus, China would be free t o
take i t s t r i l l i o n d o l l a r s and buy various US p r o p e r t i e s , companies, o r percentages
of p u b l i c corporations.

No matter what people may t h i n k , i f we look c l o s e l y a t what even the l e f t now

states p u b l i c l y , they have recognized the fundamental doctrines o f Thatcherism.
There i s a general awareness t h a t we cannot spend forever and that there must be
some a c c o u n t a b i l i t y . There i s a general skepticism about n a t i o n a l i z i n g even the
banks long-term, and thus there i s a general acceptance o f her doctrine o f P r i v i t i z a -
tion.

Lady Thatcher opposed r a i s i n g taxes, n a t i o n a l i z a t i o n , and Keynesian economics.

She fought t o b r i n g the top tax r a t e down t o 40%, y e t now B r i t a i n has r a i s e d i t t o
50%. People do not r e a l i z e t h a t the top income t a x i n the United States during the
1960s was over 90%. Who would work and give 90% o f t h e i r earnings t o the state?
That i s communism targeted a t the r i c h and pretending you can r e t a i n t i t l e t o your
property, but as i n the dark ages, a l l you get i s 10% o f your production.

So our main area o f c o n f l i c t remains t a x a t i o n . We f i n d the l e f t governments

s t i l l obcessed with e x t r a c t i n g a greater proportion from those who work t o give t o
those who do not, t o somehow r e d i s t r i b u t e wealth. This i s the r e a l danger and the
b a t t l e - l i n e between Marx and Thatcher. Yet as the song goes, 2 out o f 3 a i n ' t bad.

Seme would argue t h a t Thatcher's doctrine that the days o f " p r i n t i n g money i s
no more" and that p r i n t i n g more i s back i n fashion, there i s a serious d i f f e r e n c e .
The steady " p r i n t i n g " o f money t o j u s t win e l e c t i o n s i s what Lady Thatcher was a l l
about. Today, there i s a " p r i n t i n g " o f money i n an e f f o r t t o overcome the contraction
i n the money supply from the c o l l a p s e i n leverage. One i s a " p r i n t i n g " with no j u s t
cause while the other i s a form o f "emergency" p o l i c y that no one s e r i o u s l y suggests
should become standard. I n f a c t , both Germany and France a r e mad as h e l l about the

17
" p r i n t i n g " of money by Obama, and China i s now demanding aone-world-currency l a c k i n g t r u s t
inObama's p o l i c i e s . So we seem t o have something o f an accord with the Thatcher
p o l i c y against wholesale p r i n t i n g of money i n f i a t s t y l e l i m i t e d by nothing.

I t pains me deeply t o see such a v i t a l mind absent from the debates that could
be going on r i g h t now. Her doctors no longer allow her t o speak p u b l i c l y since her
. stroke.. Of . a l l times, t h i s .J-s... one.of .those moments ..when we r e a l l y _need_her stature
to i d e n t i f y t h e l i g h t a t the end of a t u n n e l . This i s a moment i n time when Marxism
could be slayed once and f o r a l l . I t i s a moment i n time where we could r i s e t o such
a new l e v e l o f understanding i n how t o manage our a f f a i r s , t h a t i t i s a shame we
l a c k a leader. Perhaps the time i s r i g h t t h a t someone w i l l step forward. H i s t o r y has
o f t e n shown t h a t i t produced people w i t h such courage and i n t e g r i t y a t the c r i t i c a l
moment l i k e Benjamen F r a n k l i n , Thomas J e f f e r s o n and James Madison, o r C h u r c h i l l f o r
World War I I o r General Patton who possessed such i n s i g h t i n t o h i s t o r y he could so
e a s i l y see the future i d e n t i f y i n g the danger r i s i n g i n Russia.

Thatcher was a person perhaps produced f o r the moment. She stood t a l l among men
and drew her l i n e i n the sand. My personal conversations with her showed me a person
who could " f e e l " the cycles o f events and could see the future through the past. We
desperately need such a person now. Thatcher was produced perhaps by the cycle i t s e l f
coming t o power i n 1979 and seeing the excess o f Marxism and what i t had i n f l i c t e d
upon the s t a t e s t r i p p i n g l i b e r t y and i n d i v i d u a l i s m . That Public Wave on the Fxx^nomic
Confidence Model peaked a t 1981 .35. You w i l l f i n d i n the archieves o f the Economist
magazine f o r J u l y 1985, Princeton Economics tcok the back cover f o r three weeks t h a t
month announcing that the bottom was j u s t reached. So the skeptics are welcome t o
v e r i f y that f a c t as w e l l .

SWAPPING DAUGHTERS

We can l e a r n from h i s t o r y the p r a c t i c e was swapping

daughters i n marriage was an attempt among e s s e n t i a l l y
monarchs t o b u i l d p o l i t i c a l a l l i a n c e s . The theory that
by inter-marrying f a m i l i e s , one would be l e s s i n c l i n e d
to attack the other.

This p r a c t i c e o f intermarraige was widespread i n

Greek and Roman c u l t u r e . We f i n d i t among the generals
of Alexander the Great and we f i n d i t even i n Roman
Republican times. I n f a c t , the D i c t a t o r Sula ordered
J u l i u s Caesar t o divorce h i s w i f e , which he refused t o
causing i n p a r t he d e c i s i o n t o f l e e Rome. We f i n d i t Mark Antony
between Caesar and Pompey who wed Caesar's daughter.
We a l s o f i n d t h a t Mark Antony married Octavia, the s i s t e r (born 82BC - died 30BC)
of Octavian (Augustus) and h i s divorce o f her l e d t o the
war o f f i c i a l l y declared by Octavian against Cleopatra, no* Mark Anotony. So we have
a long a r i c h h i s t o r y of such intermarriage.

This lesson from the past can now be adopted f o r modern times. Not that Obama
should wed h i s two daughters t o China and Europe t o maintain economic cooperation.
But, by a l l o w i n g debt t o be converted i n t o investment, w i l l accomplish a strange
new world and lessen the danger o f c o n f l i c t . I f China becomes a major investor w i t h i n
the United States, then i t s investment would be the greatest s e c u r i t y against any
future m i l i t a r y confrontation. We can b u i l d a new world o f economic cooperation with
free trade t h a t i s the opposite o f the dark ages and begin t o cooperate o f future
advancement i n science. Otherwise, a d e f a u l t on sovereign debt even by i n f l a t i o n
i s a economic war that could s p i l l over i n t o m i l i t a r y c o n f l i c t . We have t o abandon
Marx and h i s ideas t o embark on a new world o f economic prosperty and i n d i v i d u a l
freedom. _
 Taking the Best of Left & Right

There i s always something t o be found i n two sides of a debate. The key i s t o

l i s t e n maturely and blend what can be learned from a l l c o n f l i c t s . The Romans were
t r u l y masters a t b u i l d i n g an empire. They l e f t each land r e t a i n t h e i r gods and t h e i r
c u l t u r e , but extracted whatever benefits they saw and took home. For example, they
took the idea o f i n t e r n a t i o n a l trade from Carthage. We even see the Roman coins
-made . of bronze, begin t o have the prcw of. a s h i p o n t h e i r reverse . ....

From the Greeks they took philosophy, s t o i c i d e a l s , math, l i t e r a t u r e , and the

concept of schools. They a l s o took the idea o f a c e n t r a l bank from the i s l e o f Delos
where the temple o f t e n provided a means f o r c a r r y i n g out t r a n s a c t i o n s and provided
a source f o r c a p i t a l . Even kings would borrow from the temple t o fund wars.

To advance i n our knowledge we must l i s t e n t o both sides. We have t o take the

best from each and blend t h a t together t o create a new understanding i f we a r e t o
ever get out o f the insane b a t t l e o f words between the Left and the Right.

Sometimes we seem t o be as thick-headed as a

stone. We do not look t o the past as a s o c i e t y , but
seem t o think that we are so b r i l l i a n t , t h a t we have
come up with some new idea and never take the time
to see i f i t was ever used o r t r i e d before.

To some degree, as a s o c i e t y we seem t o r e t a i n

the Greek s u p e r s t i t i o n that i t was unlucky or even
f a t a l t o see one's own r e f l e c t i o n . This b e l i e f was
the reason behind the story of Narcissus who was
the son of the River God Cephissue and the nymph
L e i r i o p e . He was d i s t i n g u i s h e d f o r h i s legendary
beauty. His mother was f o r e t o l d he would have a long
l i f e provided he never looked upon h i s own features.
His r e j e c t i o n of the love of the nymph Echo or o f h i s
lover Ameinias, drew the wrath o f the gods. He was
cursed and f e l l i n love with h i s own r e f l e c t i o n and
died or committed s u i c i d e f o r he could not embrace
himself.

We should not fear l o o k i n g upon the image o f our own conduct. I f we l i s t e n t o the
past, we may l e a r n some e x t r a o r d i n a r y s o l u t i o n s . I n a future paper, I w i l l reveal the
sheer b r i l l i a n c e of J u l i u s Caesar i n h i s reforms o f the Republican Oligarchy. I t would
provide a great roadmap f o r today.

The o f f i c e o f D i c t a t o r i n times of great s t r e s s

was not a Roman invention. Often overlooked i s one
of the claimed 7 wisest men o f ancient Greece. H i s
name was P i t t a c u s of M y t i l e n e (born 650BC, died ca
570BC). He collaborated t o overthrow the tyrant
Melanchrus i n 612-611BC and d i s t i n g u i s h e d himself
i n the war against Athens f o r Sigium, k i l l i n g the
Athenian commander, Phrynon, i n single-handed com-
bat. He was e l e c t e d aisymnetes ( d i c t a t o r appointee
during times o f i n t e r n a l s t r i f e ) by the Mytileneans
i n 590 BC and served i n t h a t p o s i t i o n f o r 10 years.

We have retained the idea by appointing

people l i k e a drug czar (Caesar). This i s a P i t t a c u s (650-570 BC)
very o l d t r a d i t i o n t h a t was recognized that
sometimes, we need a c t i o n , not debate, but
that a c t i o n can only be d i s i n t e r e s t e d . iq
 THE DEMANDS FOR SOCIAL JUSTICE

While Marx got i t dead wrong that government can somehow replace the p r i v a t e
sector and make a l l people equal i n money f a i l i n g t o see t h a t t h i s would lead to
tyranny as what took place i n China and Russia, s t i l l there i s a small flame of
i n j u s t i c e t h a t has r i l e d so many. We cannot forget. that ..one of the Ten Ccnmanaients
i s not to covet t h e i r neighbors goods or wife. The problem we have has been the
i n t r o d u c t i o n o f the income tax that Congress voted i n during 1909 before they saw
the manifestation of Marx's ideas with the Russian Revolution i n 1917 and the
s e i z u r e of the German s t a t e by the Weimar Republic (1919-1933), which i r o n i c a l l y ,
never had much p o p u l a r i t y or p o l i t i c a l support.

In November 1918, a l e f t - w i n g r e v o l u t i o n broke out i n Germany, and W i l l i a m I I

was forced to abdicate. Germany was forced t o accept the A l l i e d peace terms and
under the Treaty of V e r s a i l l e s , Germany l o s t a l l of i t s overseas colonies and some
of i t s European t e r r i t o r y as w e l l . The Rhineland was ordered to be a d e m i l i t a r i z e d
zone s i m i l a r t o the n o - f l y zones imposed on Iraq. A l l i e d forces continued to even-
occupy Germany u n t i l 1930, as hard times of the Depression began to e f f e c t budgets.

The Weimar Republic followed Marx and simply p r i n t e d whatever money they j u s t
wanted. There was no l i n k t o productive capacity, and no l i n k s to population or
anything. This became the c l a s s i c example of a " f i a t " currency that has been ever
since misconstrued to suggest that any monetary system not backed by gold i s a
" f i a t " system. This of course i s not true. Under the gold standard, the f a i l u r e t o
l i n k gold to the supply of d o l l a r s at Bretton Woods, produced s t i l l a " f i a t " system
i n s o f a r as t h i s eventually caused the collapse of the g o l d standard f o r gold was
f i x e d a t $35 per ounce, but there was no l i m i t a t i o n upon the supply of d o l l a r s .

The United States thus adopted the income tax and Marxism both before the
Russian Revolution of 1917 and the s o c i a l j u s t i c e experiment of the Weimar Republic
i n Germany t h a t created the h y p e r - i n f l a t i o n of 1921-1923. Perhaps, i f the men who
had voted on the income tax could have gone back and repealed i t a f t e r what they
saw i n Russia and Germany, they might have r e l a i z e d the mistake they made i n adopting
the ideas of K a r l Marx. Post-1913, we ignore the f a c t that America a l s o embraced
Marxism by using the term " s o c i a l j u s t i c e " o m i t t i n g of course whose idea t h i s was that
we have followed so b l i n d l y .

As I have explained, the Concentration of Wealth i s j u s t how everything even

functions. I t i s the heart beating at the core of our economy, but i t i s f r a c t a l i n
nature meaning that i t takes place a l s o on the v a r i n g l a y e r s of time, that extends
through the i n d i v i d u a l l e v e l , i n t o the economic sector l e v e l , and then r i s e s to
the l e v e l of nations and regions. I t was Protectionism t h a t was the great trend of
the Depression era i n the 1930s, that i s widely recognized as being wrong and even
worsened the economic c o n t r a c t i o n . This was the Concentration o f Wealth between
nations that p o l i t i c i a n s d i d not understand and sought to e l i m i n a t e . The Dark Ages
was a period where there was no economic trade. The Arabs c u t - o f f access t o the ports
for Western Europe and the V i k i n g s suppressed Europe from the North. Economic trade
began to c o l l a p s e deepening what became known as the Dark Ages.

The Concentration o f Wealth i s the e f f e c t of economic i n t e r a c t i o n . We must come

to understand t h i s i s what creates progress. We must understand that t h i s r i s e s t o
the l e v e l of sectors. The greed of American unions have d r i v e n up the costs of cars
and lowered the q u a l i t y to the point that the consumer has been driven away from the
product. The unions t r i e d to stop the s e c t o r i a l concentration of wealth by c l i n g i n g
to i t demanding i t not depart so they can r e t a i n t h e i r jobs. But t h i s i s not the
way an economy can be managed. I f you want more money, improve your s k i l l s and move
between the sectors. Do not expect to freeze economic progress to force an outcome.
20
 This i s what i s a c t u a l l y t a k i n g place with each economic d e c l i n e . I t i s
the s h i f t i n the concentration o f wealth and c a p i t a l from one sector to another,
one n a t i o n t o another, o r one region to another, depending upon the i n t e n s i t y
of the c r i s i s . This i s the p o s i t i v e s i d e o f a depression. I t i s the passing o f
one generation t o the next. We a l l cannot l i v e forever, and t h i s i s true w i t h i n
the economy. Right now, t h i s i s the day o f reckoning f o r the F i n a n c i a l Industry.
-
We see J . P. Morgan Stanley t r y i n g t o regroup and move back t o r e t a i l b r o k e r i n g / -
while we see Goldman Sachs r e f u s i n g to change and r e t a i n i t s p r o p r i e t a r y t r a d i n g
that t r u l y has nothing t o do with being a bank. That's a hedge fund, not a banking
f u n c t i o n . Goldman has become a hedge fund w i t h FDIC backing but r e t a i n s a l l p r o f i t s .

I t was the famous Panic o f 1907 t h a t brought a spectacular end t o the r a i l r o a d s

t h a t were s o r t o f the Dot.Com era o f the l a t e 1800s. The corruption and excess that
took place w i t h that economic expansion culminated i n an economic collapse. This
gave way t o the commodity e x p l o s t i o n i n t o 1919 and the outstanding collapse t h e r e a f t e r
i n t o 1921. This gave way t o the age o f the automobile t h a t l e d the stocks up again
i n t o the 1929 high. While t h i s c o r r e c t i o n was sharp, i t was a l s o a debt c r i s i s i n
Europe that was furthered by a 7 year drought that destroyed farming. I t was the WPA
a t t h a t time that helped the t r a n s i t i o n from the farm to a s k i l l e d labor force. Each
boom and bust creates the crash from the sector t h a t has seen the greatest concentra-
t i o n o f c a p i t a l and t h a t creates the excesses. As that sector collapses, workers are
l e f t stranded and have t o make the t r a n s i t i o n t o the new sector about to r i s e .

Even i f we look before the b i r t h o f

the income tax, we see a l i t t l e known
march o f workers demanding the same t h i n g
back i n 1894 - p u b l i c f i n a n c i n g o f p u b l i c
works t o create employment. The leader was
Jacob S. Coxley who was a businessman i n
Ohio. I t became known as Coxey's Army, but
i t was not q u i t e that b i g . I t was a group
of unemployed who marched upon Washington
during the depression o f 1894. They were
demanding that Congress authorize a vast
new program o f p u b l i c works, financed by
a s u b s t a n t i a l increase i n money supply
since there was no such t h i n g as income
taxes. Coxey's Army l e f t M a s s i l l o n , Ohio
on March 25th, 1894 with about 100 men. By
the time they reached Washington, the group
was now about 500. The Government responded as i t always does ignoring the F i r s t
Amendment and the r i g h t t o assemble as w e l l as free speech, by a r r e s t i n g Coxey f o r
walking on the grass. The Government crushed h i s p r o t e s t and once again, the United
States showed i t s true c o l o r s . The Leviathen i s h e l l - b e n t upon i t s own s e l f - i n t e r e s t .
I t may stand on i t s soap box and preach s o c i a l j u s t i c e , but i t i s b u l l s h i t . The only
t h i n g they champion i s more governmental power a t the expense o f the i n d i v i d u a l .

A l l I can hope f o r i s t o expose the t r u t h about Marx, and reveal that i t i s t h i s

Concentration o f Wealth that i s the very essence o f the economy be i t at the pure
i n d i v i d u a l l e v e l , s e c t o r i a l , n a t i o n a l , and r e g i o n a l l e v e l s . I f we would not endorse
Protectionism, we must not endorse the c o n f i s c a t i o n o f wealth among i n d i v i d u a l s . We
should understand the movements between s e c t o r s , emphasize education to teach how to
l i v e with the natural c y c l i c a l forces w i t h i n nature. This i s t r u l y how the g l o b a l
economy functions and we should no more destroy t h i s Concentration of Wealth o r
C a p i t a l than we should t r y t o stop the beat o f a heart. With each economic decline
on a major l e v e l , t h i s i s the passing o f t h i s Concentration from one sector to the
next. Those who f i g h t i t , desperately t r y i n g t o r e l i v e the past g l o r y , are indeed
s u f f e r i n g from a Narcissus complex i n s o f a r as they can only see t h e i r own r e f l e c t i o n .
We must see the whole, not what we only want t o see f o r our own s e l f - i n t e r e s t .
21
 We must r e a l i z e that there i s nothing more important than the Rule of Law.
The l i b e r t y and i n t e g r i t y that so many have died f o r i n the American Revolution
against monarchy,"has crumbled i n t o a s t a t e of c o r r u p t i o n that "seems t o be the ~
timeless process o f r e v i s i o n , reform, and r e s e t t i n g the stage f o r the same acts
of corruption.

I t was once b e l i e v e d t h a t the f i r s t l e g a l reform was t h a t of Hammurabi (1792-

1750BC). What t h i s c o d i f i c a t i o n of the Rule of Law represented, was the f i r s t
attempt to create i n t e r n a t i o n a l law by the merging of c u l t u r e s through conquest
and r e c o n c i l e the d i f f e r e n c e s i n l e g a l concepts between two people. But i t has
been i n recent years been discovered a hoard of c l a y t a b l e t s from the F i r s t Gulf
War i n Iraq, the seat of Hammurabi. This new discovery was purchased by a p r i v a t e
c o l l e c t o r who h i r e d people f o r the t r a n s l a t i o n . This p r i v a t e c o l l e c t o r has been
c r i t i c i z e d by the archaeological f i e l d that he purchased them on the black market.
Their s e l f - i n t e r e s t aside, the p r i v a t e c a p i t a l t h i s Norway c o l l e c t o r brought to
the t r a n s l a t i o n e f f o r t was something that the archaeologists have to beg f o r funds
from governments t o do any work. Not l i k e l y i n times of economic s t r e s s and war.
What t h i s c o l l e c t o r paid f o r demonstrates t o the world, t h a t the l e g a l code of
Hammurabi was a reform of an even e a r l i e r l e g a l code previously unknown of about
even 600 years before.

There have been countless l e g a l reforms because the J u d i c i a l system i s by f a r

the most corrupt i n h i s t o r y . Without the l e g a l codes and the Rule of Law, not the
a r b i t r a r y w i l l of judges that vary from case to case as we have today i n Federal
courts, there can be no i n t e r n a t i o n a l trade nor investment f o r there i s no r i g h t
t o property. I n my research of the Rule of Law and i t s l i n k to the economy, I
discovered i n the Babylonian l e g a l t e x t s a t the B r i t i s h Museum, one man sold a
house to another, but he then took the door with him and a lawsuit took place.
I t turned out that since the climate changed and trees became r a r e , wood rose i n
value to the point that the f r o n t door made of wood was worth more than the house.
The lawsuit r u l e d i n favor of the buyer that i t was presumed that the door went
with the house since there was no s p e c i f i c notice that i t would not be included.

We must understand t h a t our system i s crumbling. There i s nothing that we

can do to change things because Democrary i s t r u l y dead. There i s no vote that
we have to demand reform f o r the Republicans and Democrats are w e l l entrenched
i n t o the status quo. Perhaps when the economic c o l l a p s e reaches such an extent
there i s no one to buy the debt from a n t i c i p a t e d m u l t i - t r i l l i o n d o l l a r d e f i c i t s
coming as i n t e r e s t rates s t a r t to r i s e once more, then and only then w i l l we
see change. But t h a t may even come i n the form of a new Third Party.

I n t e r n a t i o n a l protectionism may r i s e again as p o l i t i c i a n s f a i l to understand

t h i s natural trend w i t h i n the Concentration of Wealth. We are on the verge of
a profound change i n the world as we know i t . I t could be such a great springboard
i f we could shed the inherent c o r r u p t i o n w i t h i n the unelected Leviathan that has
nothing to gain by honesty, and everything from corruption since not even the
elected o f f i c i a l s w i l l ever i n v e s t i g a t e the Leviathan and the Supreme Court i s
nothing more than a p o l i t i c i a l court t h a t r u l e s only when i t i s i n the s e l f - i n t e r e s t
of the p o l i t i c a l trends at the moment. We have no absolute r i g h t to anything that
was promised i n the C o n s t i t u t i o n , f o r the corrupt i n f e r i o r judges know that the
odds of the Supreme Court r e v e r s i n g t h e i r tyranny i s abot 50 out of 50,000 cases.
There i s no i n c e n t i v e to do j u s t i c e , f o r the Leviathan i s only destroyed by a
r e v o l u t i o n and a complete newly e s t a b l i s h e d government. This i s what Thomas
Jefferson expected. A second r e v o l u t i o n that would be i n e v i t a b l e . Jefferson's
v i s i o n s of the c y c l e come on the heel of economic c o l l a p s e .
22