Sometimes the Lunatic Fringe Do Get It Right 5-1-10

8/9/2019 Sometimes the Lunatic Fringe Do Get It Right 5-1-10

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Commgnts~S Information-^JLease Send by Mail. Martin A. Armstrong:... #12518-050TCI Fort Dix CampPO Box 2000Fort Dix, NJ 08640

> . '' A C K N O W L E D G E M E N T SI would like to thank all the former employees, associates, sources, and contactsfor their continued support and efforts to contribute to the writings I have beenable to continue through their great efforts. I would also like.to thank thosewho hav e looked after not just myself, but my family, and shown them support andkindness.Everything at Princeton Economics that was our mission to gather information band bring together the most widely covered global economic perspective, has b e e n -a effort that is now buinging us to that fateful crossroads in history. There arethose who are trapped by the past and cannot see the dynamic evolution that causeshistory to repeat, but like lightning, never quite precisely the same way twice.In 1914, Britain reached its peak as the center of the global economy. It passedthat torch to the United States who by 1929 became the leading world economy andwas also a CREDITOR nation just as China is today. There will be no 1930s styledepression, for the cards are nowhere near the samei Yet China will become theleading world economy by 2016, and then suffer its 1929. The West is doomed and itwill collapse from its own debt. We borrow with no intent of ev er paying off thedebt, and somehow both Congress and the majority ignore this fact just as they hadignored the problems in mortgages that violated common sense.N o matter what country you live in, it is the duty that falls u p o n the shoulders ofevery reader to do what you can to get reality to manifest. Feel free to send thisreport to every 'government, friend, and member of the press around the world. If wedo not get the debate started, we stand no chance of saving the future for ourselvesand our posterity. We can reach that next never in political-economic evolution onlythrough the hard work of everyone. For this reason, this is provided as a free service.There is a N EW DATABASE that will be used for special updates provided exclusivelyto those whoregister. I want to thank you all once m o r e for your support and foryour contribution to try to help society survive the coming storm.

PLEASE REGISTER Y O U R EMAIL ADDRESSFOR UPDATES & SPECIAL REPORTS W H E N CRITICALArmstrongEconomics.COM

Y O U M A Y F O R W A R D A N Y REPORT T O A FRIEND O R T O A N YG O V E R N M E N T TO GET P O LI T I CAL C H A N G E M O V I N G

Qjpyright, Martin A. Armstrong, all rights reservedThis Report may be fo rwarded a s y o u like without charge to i nd i v i du a l s or governments around th eworld. It is provided as a Public Service at this time without cost because of the critical f a c t st h a t we now f a ced economically. T he contents and designs of the systems are in f a c t copyr ighted .A t a fu ture d a t e , a new edition of the 1986 T he Greatest Bull market In History will be releasedand a ne w book will soon be published on th s model itself - T he Geometry of Time. It is vital t h a tw e do not forget this is a world e c o n o m y and the ar rogance that a ny n a t i o n ca n dictate to the worldis just insanity. Every nat ion e f f e c t s a l l others n o d i f f e r e n t than if one nat ion were to pour a llits toxic waste into the ocean. Everything is interlinked and solutions are never isolated events.


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Som eti m e s th eL u n atic Fri n g e

Do GetIt R i g h t

by; Martin A. ArmstrongFormer Chairman of Princeton Economics International, Ltd.

and the Foundation For The Study of Cycles

ONETIMES THE LUNATIC FRINGE DO GET IT RIGHT! Any trader worth his weightKNOWS that wheneve r the bullish/ bearish Consensus gets close to 90%+you are at that zone of a perfec t opposite trade. T he majority ALWAYS

and without exception get is dea d WRONG b ecause that is how extreme m ovesup or down take place. One of the primary reasons I hav e not been at allinterested in being an academic who pontificates from an ivory tower abouthow things work without ever; going out and tryi ng to test that pontifica-

tion, is I would be fighting constantly and I am just not interested in provingany point. Once you understand how things mov e, it is not that hard to step outof the way and ev en make money going with the trend that the majority will alwaysAND WITHOUT EXCEPTION, get dead WRONG! For you see, a market crashes NOT becausethere is some b rillian t trader who ov erpowe rs the market to force h is wi ll uponthe world. Th at makes nice plots for movies. The real explanation is the majorityare long at the top. Something takes pla ce that scares them, an d ev eryone startsto try to get out. The first bu nch are taking profits. The next take profits sincethe price starts to decline. The next bunch sell for margin. The fourth crowd startsto sell because they have to do so, and the Fifth crowd sells because eve ryone elseis. When e ve ryone is l ong, scare the hel l out of them and they all turn sellersalmost simultaneously. That is the stuff that the Crash of 1987 was made of,No matter what th e f i e l d , th e ground-

braking ideas that change the world are infact ALWAYS those that come from the FRINGEbecause the people who think Out of the Boxare NEVER acce pted within th e mainstream.This is just how things are no matter what

field we look at be it economics, archaeologyor virtually every field of science. There arrare occasions where an idea will progress ina new direction never though t of before.upon close investigation, it is within theframework of pr e v a i l i n g acceptability.


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The majority ALWAYS dismisses thoseon the fringe with new ideas because theyare threatened by them to say the least.Those who come up with ground-braking ideasand solutions, are NEVER part of the wellentrenched establishment. The reason forthis is that creative min ds do not CONFORMand will always look at the reasoning andseek proof. The establishment operates inthe opposite mode. They proclaim this ishow things are, and suppress challenges inorder to maintain their world of theory.

William Manchester wrote in the LastLionuthat was a excellent biography ofWinston Churchill, a very enlighteningconcept of this difference between geniusand book smart. This illustrates abov e allelse, why thinking out of the b ox pnaducesthe solution that escapes the establish-ment.

"Samuel Butler defined genius as 'asupreme capa city for getting its possessorsinto trouble of all kinds,' and it is iron-ic that geniuses .are likeliest to be mis-understood in classrooms ... Teachers smileon children with high IQs and frown uponthose with creative .minds. Intelligent butuncreative students accept conformity, nev-er rebel, and complete their assignmentswith dispatch and to perfection. The crea-tive child, on the other ha nd, is manipu-lative, and intuitive. He is likely toharass the teacher. He is regarded as wild,naughty, silly, undependable, lacking inseriousness or ev en promise. His behavioris distracting; he doesn't seem to be tryr *ing; he gives unique answers to banal ques-tions, ... Torance ... found that 20per-cent of pupi ls rated in creativi ty wererejected by teachers" in classes for thegifted.

Manchester noted that many men whom a d e a difference were in this class ofnon-conformity. Among them, was Al bertEinstein, whose teachers thought he was adreame r and a poor student. He f inall yobtained a doctorate at the PolytechnicAcademy in Zurich in 1905. He was verym u c h the fringe until fin ally in 1919when it was ad mitted that a predictionof his gene ral theory of rela tivi ty wasverified. Two years later, he was thenawarded the Nobel Prize for Physics. Allnew ideas are resisted by the establish-me nt because they do not conform.

Heinrich Schliemann (1822-1890)

Heinrich Schliemann (1822-1890), perhais the inspiration behind the Indiana Jonesmovie series. He was the excavator of Troy,Mycenae, and Tiryns. Schiemann breathed lifinto Homer and when the scholars had settledthat there were four great em pires in theancient world, Greece, Rome, Egypt, and theBabylon-Assyria epic, Schliemann not onlydisproved the academics who downgraded thework of Homer as stories for children, nothistory, but he discovered two new civil izations while extendi ng the length of Greekhistory en ormousl y. He nearly discovered athird civilization he believed existed inprehistoric Crete that is now kn own as theMinoan civilization. It would be Sir ArthurEvans who proved Schliemann correct 10 yearafter his d eath.

Schliemann had mad e a fortune in busi-ness during the Crimean War.He was said toh a ve a photographic m ind . Accounts tell ofhis ability to read and write between 8 and13 languages. He was a man of dream s who habecome infatuated with Homer at the age ofjust 7. He was determi ne d to disprove theacademics and retired at age 36 with that g


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How precisely these established ideasform is truly a mystery. No matter what thefield, it is always the same story. Those whocome from the outside, come with creativeminds that rebel against conformity. Read thestory of Socrates as told by Plato in hisRepublic. A friend asks the Oracle at Delphiwho is the smartest of all men, and she saysSocrates. When he discovers this proclamationfrom the Oracle, he set out to prove she iswrong. Socrates meets with the .wisest men ineach field. He has the creative mind that willsubject everything to reason. He quickly findsthat the best in each field lack the visionto reason. Socrates discovered the long andsuppressive establishment.

. Even when we look at the field of simplegeology, the year was 1785 when two books hadappeared one by G.H. Toulmin "The Eternity ofthe World" in which he saw "convulsions andrevolutions violent beyond, our experience orconception" that had shaped the earth. Theopposing view was published by James Huttonin his "Theory of the Earth" where he arguedthat there were "little causes, long contin-ued, which are considered as bringing aboutthe greatest changes of the earth." Thiis, theclash between Catastrophe and Uniformity wasborn. The school of thought of sudde n shocksof violent reactions was downpla yed againstthe school of Uniformity because this is whatthe academics wanted to believe, a steady andslow series of linear progressions that infact create the changes.

The establishment does not want to dealwith wild swings. You hear the same nonsenseabout advice in buying stocks. No one canpredict the future, so always average in andin the long-term, you will make money. Thosewho followed such a dvi ce in the 1930s losteverything. Yes, some muni-bonds ev entuallypaid off, in 1963. What the hell is 33 yearsto wait to get back what you paid. It may nothave been the same purchasing power, but itwas still the number of dollars.

The ONLY worth while ideas always andEXCLUSIVELY come from the radical fringe. Itwas Keynes who was the fringe who dared tosay the holding the gold standard in timesof a crisis made no sense and forced thenation into deflation. Not one central bankagreed with Keynes. The world had to fallapart before someone would listen. The wellentrenched establishment controls the debateand the press who will not even report theideas of the f r i n g i e , perpetuate the majorityview. o

The press is also part of the problem.To be acceptable, they too write only tosupport the establishment. This causes thevery concept of the "fringe" to form for thalways lies the answers. As long as the prewill not ev en discuss the ideas, they prevethe debate from taking p lace and thus theyperpetuate the status-quo. This is why thingo crash in the night for just like the bulish/bearish consensus, the press talks up tmajority securing that there will be the hucrash for they will not discuss what theycall themselves the "fringe" shutting downthe debate and thus evolutionary progress.

A d d to this the sound-bite mentality oreducing complex ideas to one-liners thatensure confusing the hell out of everyone.Take the subject of HYPERINFLATION. Ask whais it, and you get the reply of uncontrolleprinting of "fiat" currency. Ask what is thproof? The reply is Germany. The press willoften say that Germany is very sensitive fothey experienced HYPERINFLATION during theearly 1920s.The problem with both answers, as alwathey are short-hand versions that are far othe mark. Ev eryone is always told about theHYPERINFLATION in Germany. What is not toldthis was by far NOT unique to Germany at th

time.AUSTRIAN HYPERINFLATION hit an annualrate of 10,000 percent between 1919 and 192

The government expenditures w ere covered onby about 50% insofar as its tax revenues. Tbalance of the budget was funded by sellingTBills which were supported by the centralbank who printed notes to buy the TBills.The money sup ply thus grew from $4.7 millioto $1.3 billion. The fear of inflation, orthe depreciation in the purchasing power ofthe currency, led to an increase in velocitIn other words, peopl e spent the currency asoon as they could to get rid of it. Savingcollapsed, as confidence in the currencycollapsed. Between January 1919 and August1922, the Austrian crown fell from 17.09 tothe US dollar to 77,300 to the dollar.

All of Europe abandoned the gold standard during World War I. No currency escap edthe inflationary pressure of war. The Frencfranc fell and finally stabilized in 1926 aabout one-fifth of its prewar value. Thegreatest fallacy of all time is that somehothere is a link between money supply growthand inflation. WRONG!


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HYPERINFLATION is NOT caused by a risein the money stock, but in a collapse in thepublic confidence. As long as people believethat the money stock will still buy somethingtomorrow, they will hoard and save for arainy day. It is when that confidence simplycollapses, that the pundits can mistake thatfor the the early stages of economic recoveryas people begin to spend, rather than save.But if they lose confidence in saving, be itgovernment and banks, they will turn to thenhoarding tangible assets and that is theprimary threshold between normal inflationand HYPERINFLATION! It is by no means fiatmoney! Since 1750, there have been many suchperiods when the currency is not backed bygold. The US Civil War was such a period.

HYPERINFLATION post-World War I appearedin Germany, Austria, Hungary, and Poland. TheHungarian HYPERINFLATION was not as dramaticas that of Germany since prices rose by afactor of 263 times between January 1922 ndApril 1924. Yet here too,the actual growthin money stock was only 85 tijnes. It 'is th ePUBLIC CONFIDENCE that counts, NOT the moneys u p p l y ! This is why I named our model theECONOMIC CONFIDENCE MODEL for that is ALWAYSthe most important part of the equation.

What has been rarely talked about, isthe SECOND HYPERINFLATION in Hungary that hitpost World War II between July 1945 and thenA ugust 1946. This was even more spectacularthan the German experience. The German HYPER-INFLATION ended by replacing 1 trillion ol dmarks with one new mark in 1923. On August 1st,1946, Hungary replaced the PENGO with thenew FLORINT at the exchange rate of 1 FLORINTper 400 octillion PENGOS! Germany saw itsHYPERINFLATION take about 2 years from atiming perspective, whereas th e HungarianHYPERINFLATION took just 1 year. The firstround of HYPERINFLATION took place with thegovernment expenditure funded by taxes of20 to 50 percent, whereas the second roundwas funded by only about 15%. This, however,has no direct impact upon the rate of infla-tion. It is always the VELOCITY that is keyfor that demonstrates the degree of publicconfidence in holding the money stock. Whenthere is ample confidence and fear of thefuture, hoarding takes place creating theDEFLATION and VELOCITY collapses. If theswing moves to the opposite extreme, thenpeople dump their cash for anything tangibleto serve as a store of wealth and VELOCITYincreases creating HYPERINFLATION.

~There~are some simple truths that arefar too often overlooked.i

(1) Spending is NOT limited to theamount of money in circulation

(2) Changes in VELOCITY can offsetchanges in the money supply

It is simply NOT true that inflation isa direct link to the growth in money supply.The most critical factor is PUBLIC CONFIDENC

The Polish HYPERINFLATION saw pricesrise by January 1921251 times that of 1914.By February 1924, the price index rose astaggering 988,223% in just 3 years. This walike taking a gallon of gasoline from $.1 to$10,000. The actual bank notes had risen by60,090,040%. When the new currency was thencreated in 1924, the official exchange ratewas 1.8 million paper marks = 1 gold zloty,about quarter ounce of gold. :

Inflation post-war is always tremendousWhy government still wants war is brain-dead.It may sound nice to pound the chest. Butwar is simply a barbaric act that use to beprofitable when you took all the people andsold them into slavery as the Romans did toCarthage. Today, the Vietnam war, and theGulf War are very, very costly, and will inthe end reduce the standard of living. Thehardline conservatives will call anythingsaid anti-war is "liberal" but they do notfairly represent to the people what it willcost them all in their standard of livingbesides the loss of their children in ba ttleWar simply costs money. It destroyed Europeand made America the-number one world economand now America blew it and is handing thetorch to China. From an economic standpoint,war is like getting into a divorce with yourwife and both hire lawyers and at the end ofthe day, a sizable chunk of the wealth is ntransferred to the lawyers.

All of Europe was effected by World WarI even if they dodged th e HYPERINFLATION. InGreece, between 1914 and 1928, the price indrose 868%. Greece had a budget surplus at thstart of the war.They moved into a deficit1922. When they could not raise taxes and anhope of borrowing from foreign lenders vanised, Greece came up with a startling plan. OnMarch 25th, 1922, the government ordered itscitizens to cut their currency in half. Theycould retain one-half, and the other was to redeemed for government Bends for 20 years a


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The Greek solution was again used onJanuary 23rd, 1926. This time, however, thegove rnmen t took only 25% of the circulatingcurrency and swapped it for debt. This wasa very interesting solution that eliminatedHYPERINFLATION in Greece.

Great Britain helped create the GreatDepression because they were trying to thenresume as normal to prewar levels as if theywere still the Financial Capitol of the worldthat was a huge mistake. For you see, theCommonwealth countries, except Canada, hadall linked their currencies to the pound andthis also i nclu ded Portugal and Scandinavia.Therefore, what would happen to the poundwould have a profound impact upon the worldforeign excha ng e markets. Britain i gnoredthe fact that it lost that status of beingthe Financial Capital. It could not bringitself to face the fact that in 1896, theUnited States was broke borrowing money fromBritain to av oid ba nk ruptcy . By 1914, Britainhad reached its economic zenith. And by 1929the United States was now the FinancialCap-itol of the world with the largest gold re-S617VGS

British Pound lk)0-l950M O N T H L Y C L O S I N G S5.20

5.004.804.604.404.20

4.003.803.603.40320

3.002.80

IZ

1900 1910 1920 1930 1940 1950

We can see from the ab ove chart, thepound pre-World War I was worth 3 pounds,17 shillings, and 10 pence per ounce of , 1gold. When Britain was forced to collapsethe p ound abandoning the gold standard asAustria and then Germany began>to default in1931, the p o u n d fell b e l o w $3.20. Theentire proble m was that the pound was wayovervalued post-World War I reset at $4.86that stagnated the ec onomy, and hamp eredexports while promoting imports. The poundfell to $3.40 during the imme diate postwarperiod, but Britain was determined to justrecapture ol d glories. This returned the.pound to $4.86 that aided the creation ofthe Economic Great Depressi on.

By overv aluing th e currency, Britainhad the ignominious effect of spreadin g thatthroughout the Commonwe alth Nations a nd toother sterling linked cu rrencies such as thaof Portugal and Scandinavia. Because thepound was so overva lue d, this not merely hadreduced economic growth within sterling blocnations, but it encouraged inv estment into tUnited States. This further diminished thegold reserves of Britain and shifted those tthe United States. It has n othin g to do wi ththe Fed's suppressed interest rates to tryto deflect capital flows. The overvalued UKpound m a d e US assets look like a sale at thefamous Harrod's.

The precise opposite took place when thpound fell to about $1 in 1985. Capital rushinto Britain for it was di rt che ap. The pounthen rallied back to nearly $2. /This is thesame result that took place in the 1920s whethe pound was reset at $4.86. That set thestage for the Great Depression. Capi tal hadflowed from Europe to the United States andthis created a shortage of capital in Europethat culminated in a Financial Crisis in1931.

.Further ev id en ce that the "FIAT" cryas being the cause of HYPERINFLATION is justdead wrong, is provided by Spain. Between1883 and 1913, pain had aband oned the goldstandard and thus its currency was not in anway convertible. This was the purported "fiasystem, but because the deficit spending wasvery modes t, there was no crisis. The pricesin Spain rose from 89.5 to 100 during this30 year pe riod. Spain had ran a trade surpluand its money supply growth was an annual 2%This demonstrates that it is NOT the backingof a currency that matters, b ut WHO is indeecontrolling it.

In Roman times, the money was min ted atthe temple of Juno on Capitoline Hill. The idof priests minting coins was more c redible tpoliticians. The legend goes when the Gaulswere attacking Rome in the Republic day s, thscared sacred geese a t the templ e, and thiswas thus "monere" in latin meant "to warn"and then since this is where the money wasminted, it becam e known as the Temple of JunMoneta. Since the coins were constantly mintthere was a "currere" meaning "to run"or "tflow" and this ga ve birth to the English word"currency" mean ing the flow of money . Hence ,the money flow is a very ol d term and was usto also show the flow of money for the im porand export in trade flows. Thus, moneta mean

6 "to warn" became "money."


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is what it is going to take to come up with any sort ofsolution on how to RESTRUCTURE our gl obal economy. Oneof the greatest pieces of propaganda has centered aroundwhat is HYPERINFLATION, the gold standard, and the wholeissue of money su pp ly , infla tion, central b anks, interestrates, and who can ev en control money s upp ly. So much haschanged, but the economic theories are stuck in the mudbecause of this ESTABLISHMENT perspective. Any thing tryingto speak common sense, is relegated to the "fringe" andis not taken seriously by those in government or the presswhich has been the mouth-piece of only the majority. Thus,

it becomes impossible to e v e n hav e a debate about how to RESTRUCTURE to save the daybecause the general med ia will not g i v e the so called "fringe" the time of day. It isclearly going to take BOLDNESS and COURAGE to get to ev en hav e a public discussion.Therefore, it becomes impossible to save the day or prevent the economic collapse forthere is no one willing to ev er listen to the fringe that operates only up on rationalethat us common sense, the one thing that is not common atall.

VELOCITY of money was a concept thatwas first written ab out by Sir William PeEtty;(1623-1687). Petty a rgue d that the velocityof money was determined by the frequency ofpeople's pay periods. John'Locke (1632-1704)wrote that monetary economics inc lude d th eratio of the money supply fo a nation'strade. This was a crude observation, butone that was in the right direction.

The critical aspect of VELOCITY is itskey to just a bout everything. When peoplefear th e future, but trust th e money, theywill hoard. This observation of VELOCITYwas in part the real substance behind thefamous Gresham's Law. Sir Thomas Gresham(1519-1579) was councilor to Queen ElizabethI (1533-1603). His proposition was that badmoney drives out good. The greatest debase-me nt of silver coinage in En gland took placeunder Henry VIII. This was in fact the sameas HYPERINFLATION just using the gold/silverstandard. Henry VIII reigned between 1509and 1547. The Great Debas ement continuedbeyond his d eath into the reign of EdwardVI, lasting until 1551.

The silver content of English coinagein March 1542, veraged 75%, By March of1545, it fell to 50%. By March 1546, thesilver content fell to 33.33%. By 1551, thesilver content fell to 25%. Instead of theVELOCITY increasing, it was actually fall-ing. Why? People now hoard the old coinageand spent only the new de based currency.What effect this had was to shrink m oney,supply. Under a GOLD STANDARD, instead ofHYPERINFLATION, you end up with DEFLATION

in terms of prices based in old currency, forit will buy more than th e recent debased monethat then is the only thing left in circulatiUnder the paper standard, VELOCITY increasesfor it is the mone y that becomes worthless soone spends everything as quick as he can. Ina debased gold standard, you end up with theeconomic IMPLOSION for the money supply shrin& hoarding rises.The precise opposite will taplace based upon where is CONFIDENCE! In b othcases, they will spend the debased money orthe in convertible paper whenever they lose thPUBLIC CONFIDENCE in the v a l u e of that money.

HYPERINFLATION is often associated withwar. For examp le, the Confederate States wentthrough a mi ld HYPERINFLATION with infl ationrunning at 10% per month! The price index inthe Southern States showed about a 92 timesincrease from prewar level s. The actual risein money su ppl y was from $1 to $15 mil lion.Prices rose about TWICE that.of the moneysupply. This once more i llu strates that thereis NO linear relationship.

The American HYPERINFLATION of the late1700s during the American Rev olution, alsoillustrates the dis parity betwe en the rate ofinflation and the actual increase in the monestock. On June 22nd 1775, the Continental:Congress issued $2 mill ion. By the end of theperiod, Congress issued $241.5 million. Whilprices rose at least 20 times that of 1774levels by 1779, the official conversion rateinto US b onds was 100:1. Doing a close studyof HYPERINFLATION in all periods, there is ndirect relationship to a increase in moneysupply leads to inflation.


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The misund erstanding about even what isHYPERINFLATION, polutes the entire prospec tof coming up with a via ble s olution to saveour future. Because the press regards thatany ideas outside of mainstream involves theLUNATIC FRINGE, they preve nt any debate andthus seal our fate to the devastation thatis awaiting us on the horizon. Like Congress,the press will only a ddress issues when theyreach crisis boiling points. It is just toodamn late to do anything at that point. Thisis why the SOLUTIONS will always, and withoutexception, explode onto the scene from thislunatic fringe that will then become the newmainstream.

While to a lim ited extent this may besimilar to the fun dame ntal dilectical pro-cess of Georg Wilhelm Friedrich Hegel , it isnot quite on the mark. It is true that Hegelsaw a swing between opposites giving rise toa vie w of history bei ng thesis to antithesisthat lead to a higher and richer syntesis. Itend to see history more of 'a clash of titansbetween the the quest to culminate the powerin the hands of the ruling class against thepeople who are more of the slave class inthe light of Friedrich Nietzsche. Just:*asNietzsche saw competing m orals that werestrikingly dif feren t between the ruling clas:and those who are being ruled, my disagree-men t with Hegel is that the process does not lead to a uniformity of progress, but onlyto violent classes between the two forcesthat result in eruptions we call revolution.The morals of the slave class cha nge to thosenow of the ruling class when they gain power,but there is a simple truth - power corrupts.What actually happe ns, is when the slave nowbecomes king,he adopts the ve ry same tyrannypracticed by the king for his self-interesthas now changed. HE WHO HAS THE POWER MAKESTHE RULES. This is illuminated by the famousquote from President John Quincy Ada ms. WEHAVE CONQUERED THE ENEMY. WEOCCUPY THEIR HILL,BUT WE HAVE BECOME THE ENEMY.

The French Revolution behe aded th e kingand in the end, Napoleon crowned himself nowemperor. He who leads the revolution, becomeconsumed by power, and becomes the very trueessence of what he revolted against. The USConstitution states in its Preamble that itsentire purpose is to secure the "Blessingsof Liberty" to the people. Yet the USA isnow the greatest prison society in h istoryand imprisons m ore p eople than Russia, Chinaand Europe COMBINED! 8

The so called "conservatives" h a ve nowreached the same level of intollerance thatserved are the battle cry for the revolutioIf courts ever rule in f av or of a citizen, is "liberal" and thus whateve r princip les tConstitution once stood for no longer e xistOnce upon a time, concervative use to meanstrict interpretation. Now it me ans just rulin favor of the governmen t. When the US kidnapped a man from Mila n and tortured him inE gypt claiming he was a terrorist that turnout to be false. Italy has indicted the FBIagents who kidnapped him and USA refuses toextradite them. Then the victim sued in NYC,and the Sec ond Circuit said he could not suthe government, because they have adopted tmiddle age common law that the king is abovthe law. Well that is also a time when' kingclaimed Prima Noctum, the right to sleep wievery woman on her wedding night before herhusband. That too is a common-law right of king. Does that too vest with the FBI?

The courts hav e reached back to claimsame p ower of the former king ag ainst whi chwe had a revolution. This is the swing showthat the US government has become the veryobject against which the people hated and hrevolted. They will use tanks and kill citino different than China to hold on to theirpower. We do not elect the judges , nor the or anyone in the Department of Justice. Thepoliticians assume national power as the heof various committees. Try writing to PatriLeheay, Chairman of the Senate Judiciary Coittee, and he will not respond unless you afrom Vermont. So, we no more have a governof the people or by the people, for the peohav e no control over anything.

This is why the bold solutions a lways come from the f ringe, because m ainstream istoo busy kissing ass to stay in its connectstatus. The press has lost its fire and doenot act acting like it once did in revolutitime that was the substance behi nd the FirsAmendment. So on this sad epitaph of why thare never rational solutions bu t violent ertions that cost liv es, we can see the glim pof the fate of nations. Ev en gov't pensionsfail as they are in Greece. There is no intto ever pay off the debt, so bondholders wilose eve rything as the ALWA YS do. Our futurvanishing in the wind. There is never a pradebate to try to save society. Only suppresby the establishment and labels that are usdiminish the dissent - the LUNATIC FRINGE wstrangely enoug h, historically are always r

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Sometimes the Lunatic Fringe Do Get It Right 5-1-10