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Global insights audio-slides-07-27-11-modified

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  • The Cloward–Piven strategy is a political strategy outlined in 1966 by American sociologists and political activists Richard Cloward (1926-2001) and Frances Fox Piven (b. 1932) that called for overloading the U.S. public welfare system in order to precipitate a crisis that would lead to a replacement of the welfare system with a national system of "a guaranteed annual income and thus an end to poverty". Cloward and Piven were a married couple who were both professors at the Columbia University School of Social Work. The strategy was formulated in a May 1966 article in left-wing[1] magazine The Nation entitled "The Weight of the Poor: A Strategy to End Poverty".[2]The two were critical of the public welfare system, and their strategy called for overloading that system to force a different set of policies to address poverty. They stated that many Americans who were eligible for welfare were not receiving benefits, and that a welfare enrollment drive would strain local budgets, precipitating a crisis at the state and local levels that would be a wake-up call for the federal government, particularly the Democratic Party, thus forcing it to implement a national solution to poverty. Cloward and Piven wrote that “the ultimate objective of this strategy [would be] to wipe out poverty by establishing a guaranteed annual income...”[2]There would also be side consequences of this strategy, according to Cloward and Piven. These would include: easing the plight of the poor in the short-term (through their participation in the welfare system); shoring up support for the national Democratic Party then-splintered by pluralist interests (through its cultivation of poor and minority constituencies by implementing a national solution to poverty); and relieving local governments of the financially and politically onerous burdens of public welfare (through a national solution to poverty).
  • The single goal is preserving the revenue and reach of concentrated power centers: - State fiefdoms with large constituencies and headcounts, and cartels with no competition and stupendous profits - The two are hand in glove. State and corruption always win in the Competition with the private sector for scarce capital. That's why banana republics are characterized by:bloated, unaccountable state bureaucraciessystemic corruption,sweetheart deals,no-bid contracts, shadow banking, shadow governance by Elites, inefficient workforces that cannot be fired or held accountable, This is the idea, of course: banana republics always manage to support vast State bureaucracies which enable and support private cartel strip mining of the national wealth. Mussolini called it Fascism, we don’t use anymore in polite company – we call it Crony Capitalism so we aren’t as angered or offended by it.
  • EXPLOSION IN CRIMINAL STATUTESThe U.S. Constitution mentions three federal crimes by citizens: treason, piracy and counterfeiting. By the turn of the 20th century, the number of criminal statutes numbered in the dozens. Today, there are an estimated 4,500 crimes in federal statutes.DON'T HAVE TO PROVE CRIMINAL INTENTMany of the new federal laws also set a lower bar for conviction than in the past: Prosecutors don't necessarily need to show that the defendant had criminal intent. Some of these new federal statutes don't require prosecutors to prove criminal intent, eroding a bedrock principle in English and American law. The absence of this provision, known as mensrea, makes prosecution easier, critics argue. FOR EXAMPLE: the 109th Congress of 2005 and 2006. It found of the 36 new crimes created, a quarter had no mensrea requirement and nearly 40% more had only a "weak" one.
  • DODD FRANK: The same can be said of the Dodd-Frank "reforms" of the embezzlement-based U.S. financial system. The original Glass–Steagall Act separating investment banking from depository banking was a few pages in length; by one count, Dodd-Frank requires that regulators create 243 rules, conduct 67 studies, and issue 22 periodic reports.  Meanwhile, back in reality, the Financial Elites of Wall Street and the "too big to fail" banks still have the nation (and Europe) by the throat.
  • Complexity is itself a tax; the maintenance cost of complexity is high, and can only be justified when the added complexity solves a critical problem of the society as a whole. Adding ineffectual complexity leads to diminishing returns, as the complexity itself crushes the system supposedly being "improved" or "reformed."  Complexity works beautifully as self-preservation, because it actually expands the bureaucratic power of fiefdoms and widens the moat protecting cartels.Once the fiefdom expands to manage all those new rules, only a handful of corporations can possibly afford the regulatory reporting burdens. They are thus free to exploit the populace as an informal cartel.
  • The Status Quo always supports complex "reforms" and dismisses radical simplification as "impractical." What "impractical" means is that various fiefdoms and cartels would lose swag and power, and that would be painful; thus it is verboten.
  • DODD FRANK: The same can be said of the Dodd-Frank "reforms" of the embezzlement-based U.S. financial system. The original Glass–Steagall Act separating investment banking from depository banking was a few pages in length; by one count, Dodd-Frank requires that regulators create 243 rules, conduct 67 studies, and issue 22 periodic reports.  Meanwhile, back in reality, the Financial Elites of Wall Street and the "too big to fail" banks still have the nation (and Europe) by the throat.
  • Transcript

    • 1.
    • 2.
    • 3. An Explosive Economic Collapse is Unfolding as We Speak.
      What you are about to see is the embodiment of the Cloward-Pivenstrategy.
      “In politics, nothing happens by accident. If it happens, you can bet it was planned that way.”
      - Franklin D. Roosevelt
    • 4. “The more corrupt the state, the more it legislates.”
      • Tacitus
      “Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men.”
      • Lord Acton, 1887
      “A Crisis is a Terrible thing to Waste”
      • Rahm Emanuel,
      Obama Chief of Staff 2008
    • 5. GOAL: REACH of Concentrated Power and PRESERVING Established Franchises.
      State fiefdoms with large constituencies; Cartels with no competition - The two go hand in glove.
      State and corruption always win in the Competition with the private sector for scarce capital. That's why banana republics are characterized by:
      Bloated, unaccountable state bureaucracies
      Systemic corruption,
      Sweetheart deals,
      No-bid contracts,
      Shadow banking,
      Shadow governance by Elites,
      Inefficient workforces that cannot be fired or held accountable,
    • 6. The Chicago Way with the FORCE of LAW!!
      In 2008 80,700 new pages of regulations were added, 221 pages 365 a day days a year
      In 2009 69,676 new pages of regulations were added, 190 pages a day  365 days a year
      In 2010 82,590 new pages of regulations were added, 226 pages a day 365 days a year
      • Each page is three columns of microscopic print
      • 7. Written by unaccountable Bureaucrats
      • 8. With no background in the areas they are regulating
      • 9. Unread by the Lawmakers who passed them
      • 10. Unread by the lawmakers who opposed them
      • 11. NEVER REPEALED, only modified and enlarged
      • 12. Led by REGULATORY CZAR: Cass Sunstein
      • 13. With penalties or jail time for those that do not comply
      These are regulatory straightjackets, devised, written and implemented by special interests who control the executive branch to their own benefit & the detriment of their POLITICAL adversaries and to restrict the freedoms of the PUBLIC at large.
      DEPRESSION WRITTEN INTO LAW
    • 14. ‘MensRea’ – Removal of Criminal Intent
      EXPLOSION IN CRIMINAL STATUTES
      The U.S. Constitution mentions three federal crimes by citizens: treason, piracy and counterfeiting.
      By the turn of the 20th century, the number of criminal statutes numbered in the dozens.
      Today, there are an estimated 4,500 crimes in federal statutes.
      DON'T HAVE TO PROVE CRIMINAL INTENT
      Many of the new federal laws also set a lower bar for conviction than in the past:. Prosecutors don't necessarily need to show that the defendant had criminal intent.
      Some of these new federal statutes don't require prosecutors to prove criminal intent, eroding a bedrock principle in English and American law. The absence of this provision, known as mensrea, makes prosecution easier, critics argue.
      EXAMPLE: The 109th Congress of 2005 and 2006 created 36 new crimes. , A quarter had no mensrea requirement and nearly 40% more had only a "weak" one.
      EVERYONE IS NOW AN UNSUSPECTING FELON
    • 15. COMPLEXITY & CRIMINALITY
      There are also thousands of regulations that carry criminal penalties. Criminal statutes are NOW sprinkled throughout some 27,000 pages of the federal code.
      Some laws are so complex, scholars debate whether they represent one offense, or scores of offenses.
      The Justice Department spent two years trying in the 1980s, but produced only an estimate: 3,000 federal criminal offenses. The American Bar Association tried in the late 1990s, but concluded only that the number was likely much higher than 3,000. Counting them is impossible.
      The same can be said of the Dodd-Frank "reforms" of the embezzlement-based U.S. financial system.
      The original Glass–Steagall Act separating investment banking from depository banking was a few pages in length;
      by one count, Dodd-Frank requires that regulators create 243 rules, conduct 67 studies, and issue 22 periodic reports.
    • 16. Healthcare: Patient Protection & Affordable Care Act
      2,500+ pages of weasel words and unlimited opportunities for public SERPENTS to sell the healthcare industry to the highest bidders among their crony capitalist campaign supporters and the biggest pharmaceutical & healthcare firms for years into the future (think the tax code).
      Unread by congress and regulations written by BUREAUCRATS in back rooms, as Speaker Queen Nancy said at the time, “we need to pass the legislation to see what's inside”.
      Thousands of waivers for the POLITICALLY connected and a sock in the mouth for political opponents and the private sector who do not own their congressmen.
      Complete abandonment of competition. No tort reform but mandated coverage & taxes for those who resist, additionally funded by huge new taxes (including the value of your house upon sale).
      Politically proscribed treatments, doctor discretion eliminatedand innovation destroyed & REGULATED by the FDA, to name a few.
      Over 3 million words of new regulations already descending on AMERIKA and approximately only 20% of the new regulations are complete…the more they write, the more DYSFUNCTIONAL and EXPENSIVE 13% of the economy will become:
      DEPRESSION WRITTEN INTO LAW
    • 17. The Status Quo always supports complex "reforms" and dismisses radical simplification as "impractical." What "impractical" means is that various fiefdoms and cartels would lose swag and power, and that would be painful; thus it is verboten.
    • 18. Street Reform and Consumer Protection Act(The auctioning of the finance and banking industry to the biggest campaign, Finance through Dodd-Frank “Wall Street Contributors” aka 19 “too big to fail” banks)
      2,700 pages of political corruption, crony capitalism, regulatory buffoonery and political RENT-seeking along the lines of the tax code.
      It was supposed to FIX Wall Street and the BANKING system, it does nothing of the sort.
      To put enormity of this legislation into perspective:
      • The Federal Reserve Act of 1913 was 31 pages.
      • 19. The Glass Steagal Act of 1933(separating investment banking from the deposit institutions) was 37 pages.
      • 20. The Interstate Banking Act of 1994 was 61 pages.
      • 21. The DREADED Sarbanes Oxley of 2002 (destroyed the venture capital industry & cut IPO’s in half) was 66 pages.
      • 22. The Graham Leach Bliley Act repealing Glass Steagal was 145 pages.
      • 23. This is 15 to 50 times the size of those EPIC legislations and far more TOXIC to Capitalism and wealth creation.
    • With only 6.25% of the rules completed the NEW regulations are already 3 million words
      Dodd-Frank Financial Regulation Bill; 2,300 pages of political corruption, regulatory buffoonery and crony capitalism.
    • 24. Dodd-Frank: Written by Whom?
      Roughly 850 businesses and special trade groups, employing 3,000 lobbyists were engaged in fighting, altering or writing Dodd-Frank financial reform according to the Center for Public Integrity.
      This was more than five lobbyists for every member of Congress.
      Since the bill was first proposed, the industry has paid lobbyists $1.3 billion through 2009 and the first quarter of 2010.
      The Financial Services Roundtable which represents most of the country’s largest financial firms, is on pace to spend $10 million on lobbying in 2011. That’s a 33% increase over the $7.5 million that the trade association spent in 2010.
      The American Bankers Association is expected to beat its $7.5 million spent last year, based on first-quarter-2011 numbers.
      Individual Banks:
      JPMorgan Chase is on track to match last year’s lobbying spending $7 million,
      Citigroup is on track to match last year’s lobbying spending of $5 million,
      Wells Fargo, which spent $5 million last year, spent $1.9 million in just the first quarter of this year for a $7.6 million run rate or 52% increase.
    • 25. Dodd-Frank: Written by Whom?
      JPMorgan Chase, for instance, which received $25 billion in TARP money, spent $14 million on lobbying during the 2009–10 election cycle, according to OpenSecrets.org.
      Goldman Sachs, which received a $10 billion bailout, spent $7 million.
      The above does not include the millions in campaign contributions the banks and trade associations are pouring into the coffers of those members of Congress who sit on the relevant committees responsible for financial reform—especially those willing to take on Dodd-Frank.
      “Arguably, we’re now getting outspent by closer to 200 to 1,” says a lobbyist for the U.S. Public Interest Research Group fighting to protect Dodd-Frank.
      Today, demand for lobbying firepower continues to grow, making Washington’s so-called Gucci Gulch one of the country’s few high-job-growth areas. “Everyone is hiring,”
    • 26. What Dodd-Frank Does Not Do
      It does nothing to address the problems with Fannie Mae and Freddie Mac.
      It does not eliminate “too big to fail”, in fact it expands it and the price of entry is campaign contributions.
      It does absolutely nothing to eliminate the horrific bubble in the OVER THE COUNTER derivatives market.
      The ratings agency’s politically-correct bond market ratings are unaddressed.
      It does nothing to reform the organization most responsible for the recent financial crisis - the Federal Reserve.  In fact, this new law actually gives the Federal Reserve even more power.
    • 27. The Definition of Crony Capitalismand The Death of The Private Sector
      The public serpents regulate the competition out of business and customers into crummy products not suited to their best interests and leave the politically connected as the only game in town, at a higher price.
      In a capitalist economy, this is creative destruction where dinosaur corporations fall to more nimble competitors who give more goods & services for less. This will increasingly end that virtuous process.
      This is just the next nuclear bomb on capitalism, wealth & income generation and the economy by the terrorists inside the beltway.
      This is on purpose folks and the immensity of it is a testament to the size of the corruption. The victim is you and our economic prospects.
      The healthcare legislation is more poisonous than what I just outlined, in every respect, written in a back room and not by legislators but by their special-interest and crony capitalist supporters.
      DEPRESSION WRITTEN INTO LAW
    • 28. ISSUES
      ISSUE: The explosion in regulations that are CRIMINAL but the government doesn’t need to prove criminal intent.
      ISSUE: Lawmakers are not even reading the bills they are passing. Time and again lawmakers who voted haven't even read the bills, ever mind understood it. They get them at the 11th hour and are expected to vote party lines.
      ISSUE: Laws are being written directly by lobbyists or conflicted regulators, often to protect ‘cartel’ or ‘selected’ operations.
      ISSUE: The Rule of Law is what built American Enterprise. The corruption of the Law is stifling American growth.
      DEPRESSION WRITTEN INTO LAW
    • 29. The Healthcare and Fin-Reg Laws:
      • WILL NEVER BE DEFINED and never end.
      • 30. Are UNREAD by the majority of congress when they are passed.
      • 31. Are open books…we don’t know what's in them, how the regulators will FILL IN THE BLANKS or how they’ll expand them in the future(sounds like the tax code).
      “The fat lady never sings in Washington. No decision is ever final; no word is a bond; no contract binds a congressman; no bill or resolution has force beyond the next election. That’s the first principle of our government and the second is similar: Every dollar of federal spending is pork first.”
      - Thomas Donlan Barron
    • 32. Conclusions
      “I think this group does not understand what it takes to create jobs. And I think they're flummoxed by their experiment in Keynesian economics not working… Every business in America has a list of more variables than I've ever seen in my career. If variables like capital gains taxes and the R&D tax credit are resolved correctly, jobs will stay here, but if politicians make decisions the wrong way, people will not invest in the United States. They'll invest elsewhere.”
      - Paul Otellini, CEO Intel
      The laws and regulations outlined in this presentation fall on the private sector in waves, KILLING incentives to invest and build new businesses.
      DEPRESSION WRITTEN INTO LAW

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