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FINANCIAL BLACK BELT

INTRODUCTION
(​READ THE BOLD TEXT THROUGHOUT FIRST)

Financial Black Belt is a training program. It is a vehicle that takes you from where you are now (point A) to where you need to be (point B). My journey started in 1996 when I read a book on investing and followed what the ‘guru’ told me to do in the book. Within a few months I had lost all of the money I had saved for the down payment on my house. I vowed from then to learn everything I could about Money, economics, and investing. I had studied martial arts since I was in high school, and I found that learning to protect myself financially was very similar to learning to protect myself physically. My education then shifted to learn how to become a black belt in financial self defense. After more than a decade of studying, I started putting this training program together to teach you how to defend yourself from the financial attacks by government and banking institutions. Our training program then teaches you how to start producing real wealth. 

Our Mission Statement:
'WE ARE COMMITTED TO SHOWING
YOU THE PATH TO FINANCIAL,
MENTAL, AND PHYSICAL HEALTH,
WHILE PROVIDING YOU A VEHICLE
IN WHICH TO GET THERE'

Karate has ten levels which are represented as different colored belts. Beginning with white (to show little or no knowledge), and ending with black (to show mastery of the foundation knowledge). Each belt (or level) has specific knowledge and abilities one must master before continuing to the next belt. Each belt is also built upon the knowledge and foundation of the prior belts. White, yellow, and orange are considered beginner belts. Green, blue, and purple are intermediate belts. Red and brown are the advanced belts.
Black belt shows mastery of the basic foundation of martial arts. The black belt has ten more levels that go from first to tenth degree (or Dan) to build on that basic foundation. The test for your black belt is one you never forget. While black belt is the belt after brown, the test for black belt is as far from the brown belt test as the brown belt is from the white belt. You must train for at least a year after getting brown belt before even attempting your black belt test. I had the unfortunate luck of taking my black belt test alone. The other brown belt scheduled to take the test did not show, and I could not reschedule my test. Every brown belt knows that you never take the black belt test alone (there are parts of the test that must be done alone allowing the other testers a few seconds of much needed rest).
My black belt test was the hardest thing I had ever done physically or mentally, and I still don't know how I ever got through it. I still work out when I can, but unfortunately I have a new opponent in the ring. Several years ago I was diagnosed with multiple sclerosis, and my health has deteriorated. Multiple sclerosis is now the hardest thing I have to deal with mentally and physically, and it is an everyday battle. Fortunately, God and my family help me get through each day (as well as over $6,000 dollars a month in medications).
Financial Black Belt training is developed along the same lines as martial arts training. There are ten levels (or belts) that we teach. Each belt has a base knowledge that must be mastered, and each one builds on the foundation of the prior belts. While you will not have the physical abilities to master, you will have to master the knowledge.
You start with learning about the history of money and taxes in the beginner belts. The intermediate belts teach you the foundation pillars of Financial Black Belt knowledge. The advanced belts end with teaching you how to 'use the right vehicle' to become a Financial Black Belt. The belts are:
       White- 'Enter the dojo'
       Yellow- 'The alchemy of banking'
       Orange- 'What is a credit score?'
       Green- 'Taxes and Social Security are a scam'
       Blue- 'Inflation for the Goose, Inflation for the Gander'
       Purple- 'Send’em the bill'
       Red- 'Most fights are over before the loser knew it began'
       Brown 3- 'Warning: Debt may be hazardous to your health'
       Brown 2- 'Stop playing black-jack at the poker table'
       Brown 1- 'Wall Street is a dead end'
       Black Belt- 'The right vehicle'
Financial Black Belt training was developed over several years, and I assure you I have put as much effort into developing the educational curriculum of this book as I did in getting my black belt.
This training manual starts you out as a white belt, progresses you through the colored belts, and your training ends with the black belt chapter. Each time you start a new belt you should review all prior belts. After completing this training manual it should be reviewed weekly for three months, and then every month. Each belt ends with a cathartic story from my thirty years as a paramedic and nurse working for EMS systems, life flight helicopter services, and emergency rooms. When I was younger working around trauma was fun and exciting. Now that I am older it is all just tragic, and I don’t care to be around any of it anymore.
I am the chief instructor of your training. My brother Pat and my son Ryan are the assistant instructors. The major message of this book is that our county and our way of life will not continue to grow unless all Americans force our elected representatives to follow conservative financial policies. We will not have a strong country and strong economy if we allow leftist demigods to control our countries financial future.
These financial liberals are in both parties, but they have come to rule the Democrat Party. They will spend us into bankruptcy by continuing to waste taxpayer’s money on social ideologies that have never worked. We must get America’s financial house in order. Your journey to becoming a Financial Black Belt begins here, and I wish you the strength and confidence to make this your way of life. Michael Solomon

​WHITE BELT

‘Enter the Dojo’
White belt is the first or beginning belt. For white belt you must learn to follow the rules of the training studio. There are only five rules. All are important. All must be followed. The rules are:
1. Enter the Dojo Ready to Learn.
2. Pay Attention.
3. Respect Your Instructors.
4. Exercise Your Body and Your Mind Will Follow.
5. Get Plenty of Rest.
1. Let's go over the first rule, Enter the Dojo Ready to Learn. You must be well rested, comfortable, and in a place where you will have no distractions. Trying to learn when you are tired or unable to focus is almost impossible. Basically, make sure you are ready to learn.
2. The second rule is Pay Attention. Don't be in a hurry to get through this training. Understanding and comprehending this material takes a long time. You will need to devote many hours to learning and comprehending the material taught. Make time your ally. Take time to learn and understand the concepts. Spend a lot of time thinking and reflecting on the lessons. That is when your mind will really begin to understand and accept the training. Take breaks when you're tired. Several times during the day rest quietly and think over the information you have learned. You must get this information into your head, allowed time to absorb it, and then apply it to your life. When you open this training manual you're entering the Dojo. Picture me up in front of the class. Looking at you, talking to you, and pacing back and forth. I need to drive this information into your brain. Listen and learn. Every word in this book comes directly out of my mouth like I am talking directly to you. Everything about this training is to get you to understand, accept, and learn how to defend yourself financially. I am here to take you from where you are now (point A) to where you need to be (point B). Nothing is left out.
3. Rule number three is Respect Your Instructors. I am here to take a body of knowledge that I have, put it into your brain, and then get you to apply this knowledge into your own life. You must respect what I have to say and learn it. You may not agree with everything I teach. Some things I teach may not apply to you. I lay out the information, and I prove it. You decide what works best for you. Everyone is different. What you take away from this training will be different from what someone else takes away. You are an adult. You are investing a lot of time and money into learning to become a Financial Black Belt. I used to teach martial arts, and I would occasionally have to kick a young student out of class for being disrespectful. A lot of kids in martial arts training are there because their parents make them go. I have never had to kick an adult out of class for being disrespectful. Adults who spend their time and money on training are always respectful because they are there to learn. This course is designed for some adults over 30 and all adults over 40. Financial Black Belt training is designed for you to move from belt to belt. Every time you finish a belt you should move to the next one, but only after reviewing all previous belts. When you have completed your training through black belt, you will still need to review the entire course once a week for 3 months, then once every month. Your training never really ends. Talking with and helping other students will help you understand even more. Practice makes perfect.
4. The fourth rule is Exercise Your Body and Your Mind Will Follow. You need to practice physically and mentally. Physical practice includes exercising daily and reading the material. Mental practice is reviewing the information mentally. It takes a lot of time to take in and understand this information. You must go over this material several times to really understand and comprehend the information. Learn to think critically.
5. Get Plenty of Rest is rule number five. Rest does not mean idle. My Martial Arts instructors Steve Ashcraft and Stan Singleton taught me; an idle body is a dying body, an idle mind is a dying mind. Idle is being lazy. Rest means recharge. Think of the break during a boxing match. The break is not for being idle. It is for evaluation and recharge. You must have plenty of time to relax and rebuild your body and mind. Your brain is the strongest muscle in your body. Work your brain hard, and then get plenty of rest. Sleep at night. Do not work the night shift. If you have to work the night shift, change your job as soon as possible. Your job should not dictate your life. Don't live to work. Work to live. Live in a healthy place. Some places have a life expectancy that is five years longer than normal. Don't smoke. Limit alcohol, sugar, and caffeine. Diabetes, heart disease, emphysema and cirrhosis are terrible ways to die.

YELLOW BELT

‘The Alchemy of Banking’
A wise man once said; ‘You don’t know what you don’t know’. We have all heard the saying ‘We all live in a bubble’. What do both of those statements really mean? The way I understand it is that we only know what we have learned. Our world and what we know is our bubble. Outside our bubble is all the information and knowledge that we don’t know or understand. We have not learned this information so we don’t know it or understand it.
Most of us don’t even know all the knowledge that we don’t know. I don’t know how to speak Mandarin Chinese, so that language in outside my bubble. I don’t know how to solve a Rubric’s Cube. Again, that knowledge is outside my bubble.
Economics, investing, banking, and money used to be outside my bubble. Now it is inside because I went outside my bubble, obtained the knowledge, and brought it into my bubble. That knowledge is outside of your bubble.
The yellow belt is very basic but very important training that you must learn, understand, and bring into your bubble. It is only when you go outside of your bubble that you begin to learn. My job is to teach you this information. Your job is to learn it.
Sometimes we have to go outside our bubble to see the reality of what is really going on around us. Most of us are too busy working and dealing with the daily grind of living to see the reality of the world around us. Sometimes we don’t want to know.
The first lesson we are going to learn in this belt is this: Work=Gold. In reality the gold does not have to be real gold, but is does have to be something of value. We will use gold because it is easy to understand that gold has value. I also want you to think in terms of science and physics that this equation is absolutely real. Work=Gold is as constant as gravity. It is as solid as Einstein’s E=MC2. It is written in stone by God as the Eleventh Commandment. While understanding this new equation of Work=Gold in our world, I also want you to know that there are two groups in this world.
One group has to follow this equation and go to work to earn money. The second group gets to make money up out of thin air and use that money as if they had earned it through work. You see money is really just an easier way to carry gold.
When you work you are producing wealth and are rewarded with gold. The money you work for really represents gold because it was earned. The amount you earned increased the wealth in society by an equal amount. Money from the second group that was made up out of thin air dilutes and decreases the value of our earned money. When this made up money is used to increase the wealth of our nation through investing in infrastructure, public safety, and military our nations wealth increases. If the money is wasted on boondoggle projects and endless poverty programs to keep voters dependent on corrupt politicians it hurts all Americans.
Earned money is gold while created money is theft. You borrow 100 dollars from your friend. He earned that money, therefore it is gold. You have an obligation to pay him back his gold. The opposite of earned money (gold) is created money (counterfeit). You cannot create money because counterfeiting is against the law. You have to earn money through work.
Banks can create money (counterfeit) out of thin air. Do you have the same obligation to pay back created money with your hard earned money?
When a bank creates money out of thin air, they want you to pay them back in earned money (gold). You borrow created money from the bank and pay them back in earned money (gold).
Hundreds of years ago a similar scheme was tried when scientists were beginning to understand chemistry. Certain groups were trying to find a way to cheat the money system by turning common lead into gold. This practice was called alchemy, and the practitioners were called alchemists.
Alchemy never worked, but a few hundred years later the Federal Reserve found a way to turn paper into gold. It is called the debt mechanism. I call this new way of cheating the money system 'The Alchemy of Banking', but you can just call it theft.
By the way, this theft is nothing new. It has been going on in many different ways for thousands of years, and currently almost every nation in the world that has a central bank does the same thing.
​
The Fable of the Carpenter’s Table
A carpenter built a table and has two customers who want to buy his table. Customer A is a farmer, and he sold a bushel of corn he grew to earn the money to buy the table. Customer B is a victim in society, and he gets money given to him by a politician who promises him free money and victim status in return for his vote. Once elected this type of politician takes money from workers like the carpenter and farmer through taxes to give to customer B.
If the carpenter sells the table to the farmer, society has an increase in wealth of the table and the corn. If the carpenter sells the table to customer B society has no increased in wealth because the increase in society wealth by the creation of the table is offset by the decrease in society wealth from giving someone money who did not earn it. Only earned money has wealth. So when comparing wealth in society, if the farmer buys the table society has become wealthier, and if customer B buys the table the wealth in society has gone down.
You build and sell a table to a farmer for money. The table has value and the person who bought it from you produced work to get his money so both the money and the table represent gold. The buyers money was earned therefore his money represented gold. That money already existed so the new table represents an increase in the wealth of society. Society now has a new table and bushel of corn. The table and the money that paid for that table both represent gold. They both have value.

You have to go to the mine (your job) and dig (work) for your gold (money). You live in a world where Work=Gold is as constant as the speed of light and the charge of an electron. Unfortunately, in our world there is a group that does not have to follow the same rules. This group includes politicians and bankers. They are able to live in our world where you and I have to follow Work=Gold and they can just make money (gold) up out of thin air. They have a license to steal. They have a Golden Goose and an Aladdin’s Lamp. They can make up as much money as they want on demand. They own the money printing press. They just push a few buttons and ‘Whala’; money appears.
Creating money must be nice. You and I have to actually work to get our money, and they get to just make it up out of thin air. That just doesn't seem right. I don’t know about you, but I work hard for my money, and I want to keep as much as I can.
We all should expect money taken from us to be used responsibly to help increase the wealth of our nation both financially and socially. What social liberals don’t understand is that a country must increase its financial wealth before it can afford to spend money on social issues.
An increase in a countries financial wealth allows that country more money to spend on social programs. Then, only on social programs that require accountability from both the recipients and the bureaucracies running them.
True liberalism is freedom from big intrusive government and the idea of letting everyone live their own life the way they want to. As Michael Savage correctly calls liberalism a mental disorder, leftist ideas are a sociopathic malignant cancer. Leftism has always been about strong government control over everything, and leftism has infiltrated the Democratic party and the liberal agenda. Leftists want to keep everyone needing a big government to take care of them. The one hundred million souls slain by Stalin and Mao is a strong testament that leftism never ends well.
Banks control the money supply and control the laws and regulations concerning banking. The Federal Government lets them get away with it because the banks give the Federal Government an open check book to borrow as much money as they want. In science this would be called a symbiotic relationship, but in our world we will just call it a conspiracy of theft.
I use gold as a standard of exchange because it is easy to understand. An ounce of gold should always be equal in value to the amount of work necessary to dig up an ounce of gold. We could also use silver which would be equal to the same amount of work necessary to dig up an ounce of silver.
Both are really just the A or B of the algebraic equation of A=B. We could also us car and boat on either side of the equation as long as both required the same amount of work and capital to create. Using the same idea we could use: TV=Computer, jet=yacht, or dress=jacket. All could be interchanged as long as we were describing an amount of work and capital involved in producing an object of value (don’t confuse work with price because work here represents labor and capitol while price would represents an agreed upon exchange governed by supply and demand).
Another way to look at it is: Work=House+Food+Medical+Car+Utilities. This is your life formula. There is no gold involved, but we do need to use something to make the exchange easier. We end up using paper money.
On the other hand we all know that the equation 0=1 is wrong. Nothing does not equal something.
​Long ago the following equation worked: Lazy Bum=Live under a bridge. It worked because lazy bum produced nothing and living under a bridge cost nothing. Somehow in our society we have come to except the equation: Lazy bum*=House+Food+Medical+Utilities.
Notice the caveat. Now we must include: * = ‘Plus Someone Else’s Work’ for the equation to be correct. I believe that if you reward a behavior that you will get more of that behavior. If you reward a lazy bum with free housing, medical, food, and utilities you will get more lazy bums. Pat’s rule number one definitely applies here: Supply creates demand. If you supply more money and services for lazy bums, you will get more lazy bums.
In a civilized society we all must help take care of the truly sick and injured and those that are too young or too old to work or take care of themselves. We also need a safety net for those needing temporary assistance. Family and charity works best because they tend to hold the recipients of the charity accountable. Liberals hate accountability, and they loathe facts. Facts support conservative ideas while liberalism is governed by emotions and good intentions.
We have decided as a society to have government take care of the truly sick and injured along with temporary assistance to citizens in need. I believe we have a moral obligation to help, and I don’t mind the government helping the legitimate needy. The problem lies in the abuse of both lazy citizens and morally bankrupt politicians that abuse the taxpayer charity system.
We all know the difference between someone who needs our help and someone who is just a lazy bum. As comedian Dennis Miller once said ‘you know, I want to help the helpless, but I could give a rat’s ass about the clueless anymore’. That being said, let’s get back to alchemy and banking.
Modern banking basically started with the goldsmiths hundreds and even thousands of years ago. Goldsmiths used to work with and store gold. The wealthy came to trust the goldsmiths with storing their gold.
When someone stored gold with the goldsmith he would issue them a receipt to record the exchange. When the person needed his gold he would simply go to the goldsmith and give him the receipt at which time the goldsmith would redeem the gold.
As economies grew and exchanges became much more frequent and acceptable, merchants began to accept the receipts from the goldsmith as payment for goods. This was the first use of 'proxy gold'. The receipt would be accepted and the merchant could then take the receipt to the goldsmith and redeem it for gold.
This easier exchange helped boost the economies and soon more and more transactions were done by receipts than by gold. It was much easier to exchange the receipts than to have to go to the goldsmith every time you needed to buy something.
Eventually almost all transactions were done with the goldsmith’s receipts. No one was actually coming to get gold from the goldsmith, and he took notice. The goldsmith realized that even when people came and took their gold out that it was only a very small percent of the actual gold in storage, and the removal of gold was sporadic.
The goldsmith figured out that his gold receipts were being used to exchange goods and services, and he knew that no one really knew how much gold he actually had in storage. The goldsmith realized that he could just issue a gold receipt and it would be accepted in society as gold.
Well it did not take long before the goldsmith was issuing fake gold receipts to himself (without actually owning the gold.) The goldsmith used the gold receipts in society to trade for goods and services, and he became very wealthy. He knew as long as there was no run of the gold receipts for gold out of his storage that he could keep up the charade. The gold receipt scheme would always eventually fail, but the idea of creating gold from nothing lived on.
As the science of chemistry developed, many believed there was a way to turn common lead into precious gold. Many men tried and all failed, but human greed lived on.
What we think of as modern banking developed in the early 19th Century, and our current banking system was started in the early 20th Century as the Federal Reserve. Being our Central Bank, the Federal Reserve controls our countries money supply. Since the Federal Reserve’s inception it has been clouded in myths and mystery. One end of the mythical and mysterious Federal Reserve spectrum goes like this:
The Federal Reserve, a private organization, was established in 1911. They have a monopoly in the money creation (called counterfeiting) business. Fractional reserve banking (called stealing) is allowed. At first the money was somewhat connected to gold and silver, but within fifty years most money was just made up out of thin air with little or nothing backing it. This allowed federal government spending to start getting out of control. Now government spending has become a disaster.
Prior to 1930 the government consumed about 10% of the gross national product. Now it consumes almost 40%. The private sector is being squeezed out. Remember, the private sector creates wealth while the government takes wealth. While we depend on government workers to keep our society safe and civilized, the Federal Government is a bureaucracy and by nature inefficient. It has to take every dollar it uses from the private sector (even if it is borrowed money). While dependent upon the private sector, the government continues to do everything possible to destroy it. Talk about killing the 'Golden Goose'.
The Federal Reserve is our nations 3rd central bank. The other two failed. The Federal Reserve was secretly voted into law by a few well placed and well compensated congressmen on Christmas Eve in 1913 when most of Congress was home for the holidays. President Woodrow Wilson quickly signed the bill into law. The Federal Reserve act of 1913 took away the Constitutional Power of the Congress to control the money supply and gave it to a private group of mostly foreign bankers. These foreign bankers purposely named the new formed Central Bank the Federal Reserve in an attempt to mislead the American citizens into thinking the bank was part of the Federal Government. It was not.
We now accept, even though most Americans don’t even know its history, that the Federal Reserve is our Central Bank. At the time this was an outrageous injustice and theft of power, and most of the country was furious. Only the dying off of generations has calmed the populous as time moves on and the next generations forget. Outrage over ObamaCare is nothing compared to the Federal Reserve act of 1913.
Let’s look at a few quotes from back in the day:
"Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States."-Sen. Barry Goldwater
“It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."-Henry Ford
"The regional Federal Reserve banks are not Government agencies. ...but are independent, privately owned and locally controlled corporations."
-Lewis vs. United States, 680 F. 2d 1239 9th Circuit 1982
"The Federal Reserve banks are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this nation is run by the International bankers."
-Congressman Louis T. McFadden
“The real truth of the matter is, as you and I know, that a financial element in the large centers has owned the Government of the U.S. since the days of Andrew Jackson.”-Franklin Delano Roosevelt
"As soon as Mr. Roosevelt took office, the Federal Reserve began to buy Government securities at the rate of ten million dollars a week for 10 weeks, and created one hundred million dollars in new [checkbook] currency, which alleviated the critical famine of money and credit, and the factories started hiring people again."-Eustace Mullins
"This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President [Wilson} signs this bill, the invisible Government of the monetary power will be legalized....the worst legislative crime of the ages is perpetrated by this banking and currency bill."-Charles A. Lindbergh, Sr. , 1913
"When you or I write a check there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money."-Putting it simply, Boston Federal Reserve Bank
"We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our Government. It has done this through the corrupt practices of the moneyed vultures who control it."-Congressman Louis T. McFadden in 1932
“The few who understand the system, will either be so interested from it’s profits or so dependent on it’s favors, that there will be no opposition from that class.”-Rothschild Brothers of London, 1863
"These 12 corporations together cover the whole country and monopolize and use for private gain every dollar of the public currency..." –Mr. Crozier of Cincinnati, before Senate Banking and Currency Committee - 1913
"While boasting of our noble deeds were careful to conceal the ugly fact that by an iniquitous money system we have nationalized a system of oppression which, though more refined, is not less cruel than the old system of chattel slavery."0-Horace Greeley
"The Federal Reserve bank buys Government bonds without one penny..."-Congressman Wright Patman, Congressional Record, Sept 30, 1941
"...the increase in the assets of the Federal Reserve banks from 143 million dollars in 1913 to 45 billion dollars in 1949 went directly to the private stockholders of the [Federal reserve] banks."-Eustace Mullins
"The financial system has been turned over to the Federal Reserve Board. That Board administers the finance system by authority of a purely profiteering group. The system is Private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money"
-Charles A. Lindbergh Sr., 1923
"Bankers own the earth. Take it away from them, but leave them the power to create money and control credit, and with a flick of a pen they will create enough to buy it back."-Sir Josiah Stamp, former President, Bank of England
"All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation."-John Adams
"Whoever controls the volume of money in any country is absolute master of all industry and commerce."-James A. Garfield, President of the United States
"A great industrial nation is controlled by it's system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the world--no longer a Government of free opinion, no longer a Government by conviction and vote of the majority, but a Government by the opinion and duress of small groups of dominant men."
-President Woodrow Wilson
"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over Governments by controlling money and it's issuance."
"I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the Government at defiance. The issuing power (of money) should be taken away from the banks and restored to the people to whom it properly belongs."-Thomas Jefferson
“The money powers prey upon the nation in times of peace and conspire against it in times of adversity. It is more despotic than a monarchy, more insolent than autocracy, and more selfish than bureaucracy. It denounces as public enemies all who question its methods or throw light upon its crimes. I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe.”-Abraham Lincoln
"Give me control of a nation's money and I care not who makes it's laws"-Mayer Amschel Bauer Rothschild. (Founder of Rothschild banking dynasty).
"Some people think the Federal Reserve Banks are the United States Government's institutions. They are not Government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers" -Congressional Record 12595-12603 — Louis T. McFadden, Chairman of the Committee on Banking and Currency (12 years) June 10, 1932
"I have never seen more Senators express discontent with their jobs....I think the major cause is that, deep down in our hearts, we have been accomplices in doing something terrible and unforgivable to our wonderful country. Deep down in our heart, we know that we have given our children a legacy of bankruptcy. We have defrauded our country to get ourselves elected.” -John Danforth (R-Mo)
"People (bankers) who will not turn a shovel full of dirt on the project (Muscle Shoals Dam) nor contribute a pound of material, will collect more money from the United States than will the People who supply all the material and do all the work. This is the terrible thing about [bank] interest."-Thomas A. Edison.
So who owns the Federal Reserve? The best account I could find shows the following may be the owners of the Federal Reserve, but I don’t know for sure:
Rothschild Bank of London
Warburg Bank of Hamburg
Rothschild Bank of Berlin
Lehman Brothers of New York
Lazard Brothers of Paris
Kuhn Loeb Bank of New York
Israel Moses Seif Banks of Italy
Goldman, Sachs of New York
Warburg Bank of Amsterdam
Chase Manhattan Bank of New York
The other end of the Federal Reserve myth and mystery continuum is that it is watched over and governed by our elected representatives, and the Federal Reserve tries to keep our monetary system stable. I do not know the exact truth, but I tend to believe the truth lies somewhere towards the former than the latter. The Federal Reserve is our nation’s Central Bank, and over the decades it has done a pretty good job of keeping our monetary and banking system stable. At least the booms and busts of our economy have gotten better.
I am sure it has done a better job than if our federal government was running the show. The real problem is the out of control government spending on wasteful projects that do not increase the wealth of our nation by financially liberal politicians in both parties and the destruction of national wealth their policies bring about.
Most of us think that bankers are conservative. They are not. The Federal Reserve Act was passed during an economic depression. Hard times are when most socialist liberal ideas take hold and flourish.
I believe today’s socialists were able to pass ObamaCare only because we happened to be in a recession. Socialists love recessions. President Obama and his leftist supporters knew the timing was right.
The populous looks towards government during economic downturns, and the liberal politicians love this. They get to play Santa Claus with other people’s money.
Conservative politicians support policies to lift poor people out of poverty while liberal politicians keep them in poverty to secure their continued vote. Let the liberals give their own money to the needy like everyone else. Studies have shown that liberals actually give the least amount to charity. You see they like to give away money. Just not their own, and only to those they can control and will continue to vote for them.
Our Central Bank, the Federal Reserve, uses fractional reserve banking. Fractional reserve banking is where a bank is allowed to issue currency while only holding a fraction of the gold or silver that the currency is issued on.
The Federal Reserve originally used gold and silver to back the issuing of currency, but for at least the last half century our money supply has been simply backed by debt instruments.
Money that is made up out of thin air by a debt instrument with nothing backing it is called fiat money. Fiat money is the term used to describe money that is decreed to have value by law. On all of our money the phrase ‘this note is legal tender for all debts public and private’ decrees it as fiat currency.
Fiat money can actually be good for an economy, and it has increased the wealth of our nation substantially. It is the abuse of government borrowing and wasteful spending on boondoggle projects and failed policies (by both parties) that can destroy that same economy.
Gold and silver that once backed our dollar has now somehow been replaced by debt instruments. It is a complicated idea, but I will try to make the explanation simple.
The Federal Government needs more money than it can take in through taxes, so the Treasury Department issues bonds (which are debt instruments) to get the rest of the money it needs to operate. The bonds are sold on the open market to banks, government agencies, other countries, large investment groups, and even private individuals.
The selling of these bonds brings money into the Federal Government, but we should always remember that a bond is just a loan. It eventually has to be paid back. Any bond not purchased on the open market is purchased by the Federal Reserve because the Federal Reserve is what we call the 'lender of last resort'.
This lender of last resort is the key to letting Federal Government spending get out of control because there is no limit to the amount of money it can borrow. The Federal Reserve buys any and all bonds not purchased on the open market thereby letting the Federal Government have all the money they want. With the Federal Reserve purchasing all bonds not sold on the open market, the Federal Government basically has an endless supply of money.
The Federal Reserve loves the Federal Government to borrow money because the Federal Government never really pays off its debts. When a ten thousand dollar Treasury bond comes due, the Federal Government simply borrows the money to pay it back.
The Federal Government through the Treasury Department issues a Treasury bond for ten thousand dollars, and the Federal Reserve buys the bond. The ten thousand dollars received from the selling of the bond then goes back to the Federal Reserve to pay the Federal Reserve the ten thousand dollars that was owed on the original bond. We just keep shifting these unfunded liabilities onto our children and grandchildren. But hey, we have an endless supply of money, right?
Banks are another big buyer of Treasury bonds. Banks use Treasury bonds as reserve currency for their customer’s loans. A bank buys a ten thousand dollar Treasury bond which is accepted by the Federal Reserve as reserve currency on that banks Federal Reserve account.
The Federal Reserve requires a 10% reserve (which they can change) on all bank accounts in the form of debt instruments, so the bank can borrow up to ninety thousand dollars from the Federal Reserve on that ten thousand dollar Treasury bond.
The bank then loans the ninety thousand dollars to local citizens and businesses, or it can even buy more Treasury bonds. The bank then takes that ninety thousand dollars in loan notes (debt instruments) and deposits it into their Federal Reserve account bringing their total reserves to one-hundred thousand dollars. Now the bank can borrow nine-hundred thousand dollars from the Federal Reserve and loan the money out to more citizens and businesses. Do you see how this works? The bankers and politicians get rich off of the labor of the working Americans.
Financially liberal politicians in both parties love this endless supply of money, and dependent citizens demand the politicians deliver the money or we will vote them out.
We vote in a financially conservative representative and he goes to Washington. All the financially liberal representatives are voting to increase the money supply to get more money to bring back to their district. It is called bringing home the bacon, and both parties do it. 
Everyone wants their representative to bring home more money for their district. Big business, which we all think of as conservative (they are not), pushes the new financially conservative representative to get more money for their district to build more roads, open a new airport, or order more products or service from those big businesses.
If the new financially conservative representative does not go along and vote for more goodies for his district, big business and dependent voters will get rid of him during the next election. We all love to get the free goodies from the Federal Government in our district. We just don’t want to have to pay for the free goodies given to other districts. Fiat money allows every district to get free goodies and the Federal Government spending to get out of control.
The main problem with the creation of fiat money through debt instruments is that the interest on that debt instrument is never created and eventually it has to be paid back.
We just learned that all money is created through debt, so follow this closely. When fiat money is created from a debt instrument only the principle is actually made up and put into the money supply. The principle on the debt instrument can be paid back because it does exist and is in the money supply.
The problem is that the principle and the interest have to be paid back, and the interest money does not exist. It was never made up out of thin air like the principle money. The interest money is not in the money supply. The debt can never really be paid back until the interest money is in the money supply and is transferred along with the principle back to the lending institution (the bank).
The only way for the money supply to get the interest money to pay back the bank is to get more people to borrow more money creating more debt instruments to put more money into the money supply to payback the interest on old loans. Once this scheme started in 1913, new borrowing of more money could never be stopped. Therein lays the evil in this scheme.
All money is created from debt. Please say that again. All money is created from debt. What does that mean? Well, when you borrow 100,000 dollars to buy a house the bank does not have the money sitting in its vault. Your bank gets it from the Federal Reserve.
The Federal Reserve makes the money up out of thin air. It is just a few key strokes on their computer and no risk to them.
We all know that in 30 years of house payments you will pay two to three times more money to the bank than the original note. You have to pay back the original 100,000 dollars and at least another 100,000 dollars in interest.
Now follow this closely. The first 100,000 dollars you pay the bank back is in existence and in the money supply (from when the Federal Reserve originally made it up out of thin air for your home loan). What about the other 100,000 dollars of interest you have to pay the bank. It was not in existence when you borrowed the money. Where will this new supply of money come from? Let’s go back to the first sentence. All money is created from debt. Say it again. All money is created from debt.
Money comes into existence only through some kind of debt instrument. That means the second 100,000 dollars has to come into existence in only one way; through you and others (including the Federal Government) going into further debt.
You have to go further into debt. Your neighbors have to go further into debt. Large and small business owners have to go further into debt. How about your Federal Government borrowing money (going into debt) to pay for pork projects or free service's they give to their constituents. You bet. It’s called buying votes and both parties do it.
To understand more go to YouTube and watch video under 'G. Edward Griffin Mandrake Mechanism'. Mr Griffin wrote an excellent book about the creation of the Federal Reserve called 'The Creature from Jekyll Island.'
When the Federal Government borrows money by selling Treasury bonds it usually pays back the principle and interest on the bond by borrowing more money through the selling of more bonds. It borrows money now to pay back bonds sold years ago.
(Note: The above example is to provide a simple and clear explanation of monetary inflation and fiat money creation in our monetary system. The bank making the loan could have existing money funds on hand received from previous loans paid back from other borrowers and therefore may not have to borrow the full 100,000 dollars of principle money from the Federal Reserve, but the interest money not being in existence at the time of the loan is completely correct, and all dollars currently in existence today have been created through some sort of debt instrument.)
Every new dollar created inflates the money supply (called monetary inflation) thereby diminishing the value of all existing dollars. Here is an example of inflation: An economy has one million dollars, and a loaf of bread costs one dollar. Private and Government sector borrowing inflates the money supply to two million dollars. Now, that same loaf of bread will cost two dollars. That is basic economics. (There is a difference between monetary inflation and price inflation, but the idea in the example is correct. Also, the creation of money should increase our nations monetary wealth in the private sector on a 1:1 basis, and our nations societal wealth on maybe a 1:0.5 basis. Creating money to buy votes from chronic lazy freeloaders has a negative return on monetary and societal wealth.)
This system keeps all of us in debt. In fact there is no way to ever pay the debt back because all the money needed to pay back old debt does not exist until we go further into debt. This is one of the reasons Federal Government debt is getting out of control. They have to keep borrowing money to create enough money to pay back money they borrowed years ago. Every year they have to continually borrow more money. It will never end.
Everyone has to keep going into debt or the system will collapse. Even if you personally get debt free, you are still connected to the dollar and the inflation caused by others borrowing.
(Monetary inflation is the increasing of the money supply through debt. Price inflation is the cost of goods and services increasing due to supply/demand forces. When you have more dollars trying to buy fewer goods; price goes up.)
There are several reasons we don't feel the actual affect of our true monetary and price inflation. First, our U.S. Dollar holds the distinction of being The Reserve Currency of the world. Our Federal Government makes up money out of thin air by selling bonds to countries that will sit on those bonds in their central banks keeping them out of our money supply. This produces false price inflation rates in our country. This is monetary inflation without resulting price inflation. There are a lot more of our dollars sitting in overseas banks than in our own country. If our dollar ever loses The Reserve Currency status and all of those dollars come flooding back into our country, price inflation would be disastrous.
Second, all world oil is traded in U.S. dollars (called petrodollars). Every time we inflate our money supply the rest of the world feels it as inflation in oil prices. Being the only superpower allows us to get away with both of these, but that can always change.
Third, the efficiency of our private sector keeps increasing our nation’s wealth as fast as the government sector keeps decreasing it.
Here is an example of the problem using a micro economy with a money system like ours:
A small group of people provided goods and services to each other using barter as the exchange method. This worked very well, but as the town grew the townspeople needed a more efficient method of trading. A banker came along and told the townspeople that he had the solution. The town had 100 families. Each family had a different product or service that others in the town needed. For instance there were some farmers and ranchers for food. There were doctors and health care workers to take care of everyone. There were government employees like a mayor, policemen, and firemen to keep the government working. There were entertainers and artists to develop culture in their economy. The only thing their economy did not have was a monetary system. So the banker came in and started a fractional reserve bank using debt instruments to create money. The new town needed money, and the banker told the townspeople the only way money could be created was through debt instruments. Each of the 100 families had to borrow 100 thousand dollars from the bank to start their new economy.
Each family also had to put up their house as collateral and pay a measly 1% interest to the bank for loaning them the money. The banker did not actually have the 10 million dollars needed to start the new money system. As a matter of fact the banker had no money or any wealth at all. What the banker did have was the ability to create money out of thin air through a debt instrument, and the banker did just that. The banker created 10 million dollars from the debt instruments and dispersed 100 thousand dollars to each family. The economy now had 10 million dollars and was off to a good start.
Workers started exchanging their new money for the goods and services they needed. Each month every family paid the bank 1,000 dollars for the payment on their loan. The banker was happy because he could take the money given to him by the townspeople and use the money in the economy just like everyone else. Everything was running smooth, but eventually there was a problem. Some of you can already see this train coming down the track. What happened after the 100th month? You guessed it. All of the money had gone back to the banker through loan payments. There was no more money in the money supply because all of the 10 million dollars that was in the money supply had gone back to the banker as loan payments. All the townspeople had no money and the banker was rich. This actually could have worked because everyone could have just gone back to bartering the way it used to be. No one would accept the banker’s paper money anymore, and everyone could tell the banker where he could put his paper money. There was only one problem. The banker who created the money out of thin air through debt instruments charged interest on the loans to all the townspeople. Every family still owed the banker the interest money on their loans, but there was no money in the money supply to pay him. If the townspeople did not pay the banker the interest money, the banker could take all of their homes because their houses were used as collateral for the loans.
Does the banker really want everyone’s house? No. The banker is actually a key component in a large society as long as there are fair laws governing them. It is the wasteful spending by politicians on things that don't increase wealth in society that is destructive. So now we are back to the original idea behind fractional reserve banking using debt instruments that states: ‘all money is created through a debt instrument’.
New money must be created to go into the money supply to pay the banker the interest money. The only way to do this is for the townspeople to take out new loans from the banker to create new money to put into the money supply to pay back the banker the money they owe him from the original debt.
From this point on it is a never ending game of borrowing more and more money to pay back the interest on old loans only to borrow more money to pay back the interest on the new loans. It never stops.
Everyone in the town has to continually go into more debt to create more money to pay the banker the interest on old loans. The banker becomes very wealthy while never really having to work while the townspeople work hard and go broke by transferring their wealth to the banker through never ending debt. This truly gives credence to the statement: ‘The borrower is slave to the lender’.
WHAT the Federal Government spends the borrowed money on is more important than how much it borrows. Liberals know that if they can keep us fighting over social issues that they can continue to get voted into office and play us against each other. The stakes are too high to let differences in social ideas financially destroy our country.
When the Federal Government borrows money to build a new road that will open up new commerce, create new jobs, and increase the wealth of our nation, this is ‘appropriate and acceptable borrowing’.
If the Federal Government borrows money only to give it to a 'victim of what they deem is social injustice’ who did not earned that money it is not only very wasteful and inflationary, but it is just wrong. Keep in mind that every dollar given to someone who did not earn it diminishes the buying power of your earned dollars. I am not talking about money for Social Security, the truly disabled or money for temporary assistance for all Americans.
I also feel the same way toward giving Federal Government money to big business. Building a bridge to nowhere does not increase the wealth in our society just because it exists. Big business welfare needs to end too. Spending money on a bridge to nowhere actually decreases the wealth in our nation because that money could have been spent on something that would increase our nation’s wealth.
It is just amazing that what you are learning is not taught in schools. Declining study of reading, writing and arithmetic. Just as amazing is the crap that is being taught. Specifically I am talking about the social sciences.
These new social justice pseudo-sciences teach that every ill in our society is based on someone’s race, gender, or ethnicity. The new thing now is gender identity.
The majority of social science education should focus on Stalin, Mao, Pol Pot, Tojo, Hitler and the Kim Dynasty's common thread of strong leftist central government which always leads to evil sociopath dictators. Two centuries ago Lord Acton's statement 'power tends to corrupt and absolute power corrupts absolutely' still confirms our need to continue limited Federal Government and Federalism. We need the good ideas from different States to rise to the top and a small centralized Federal government to support the states, not abuse them. 
The liberal politicians love the populous arguing over bullshit stuff to keep us divided. We have emotional arguments over abortion, feminism, cultural diversity, income inequality, and victimization. All the while the financial liberals in the Federal Government keep spending more and more of our money, and if a financial conservative from either party tries to get the out of control spending under control they are treated as a freak. 
We believe the banking system is this mysterious world of geniuses and we are lucky they are watching our backs. The expensive suits and tall buildings with their strong facades project integrity and honor.
I hope by now you understand that it is just a house of cards that someday may come tumbling down. I personally don’t believe it will happen anytime soon. I believe if financially conservative Americans from both parties will band together we can stop the financially liberal politicians wasteful and abusive spending. This is the only way we can continue to increase the wealth of our nation and lead our World to greater prosperity.
I think with all of our country’s faults and problems that we are still light years ahead of the rest of the world. It just amazes me how screwed up these other countries are that follow these leftist financially liberal ideas.
With so many of them having huge natural resources and good citizens with good work ethics, they keep voting in corrupt leftist politicians that destroy their economies. Other countries are just controlled by bad dictators that run their countries into poverty to have control over the citizens.
Free market capitalism and a strong justice system that follows the rule of law are the only way for a nation to grow economically and become wealthier over the long term. Until these concepts become a priority of their politicians, a lot of these nations will continue to fail. Unfortunately, the American taxpayers routinely have to bail them out.
Here is another major point: you don’t have to have a big bloated out of control government to have good strong workers rights. I believe in very strong labor laws for employees because I have been screwed over by a corrupt big business hiding behind the veil of a non-profit religious organization.
I believe most big corporations try to get away with as much abuse of employees as legally possible and that we need very strong labor laws to protect all workers (not just union and government workers.) Our labor laws should be stronger than the best union contract.
Having a big out of control government does not mean you will not have any big out of control corporations. In fact, I believe a big out of control government that is in bed with big business corruption is the first step down the path toward Fascism.
Our good free market economy and our strong military keep our dollar The Reserve Currency of the World. I know there are a lot of countries and even American citizens out there that don’t like it, but someone has to be the strong leader. Someone has to be in charge. Someone has to be ‘Top Dog’. Our country is the only contender.
No other country even comes close. I wish there was. I wish there was another country with our values that could share the expense of policing the world that we have to bare to keep the rest of the world from killing each other. I wish there were four or five or fifty other countries like ours. Unfortunately we are the only one, and we should all feel very blessed we live here. We don’t need to change our values to conform to the rest of the world. The rest of the world just needs to follow our lead.
Bankers become silent partners in businesses through business loans. The bank makes money up and loans it to a company. It is like the bank getting free stock in the company. If the business fails the bank comes in and takes all assets through the collateral mechanism and gets paid first as a creditor.
The bank then writes off any losses. If the loss is going to be too much, the bankers get the Federal Government to step in and bail out the company transferring their loss to the American citizens.
The banker’s oath is: Better for the American taxpayers to lose money than the bankers. The Federal Government uses the old ‘too big to fail’ line, and throws a bunch of taxpayer money at it. The banker walks away without losing anything. Crony Capitalism keeps many a failing business going at taxpayer expense. Throwing money at a failing business is never the right answer, and both parties do it.
Now, with all that being said, before you get mad at your local bank or banker you need to understand a few things. First, fiat money is the only way a large economy like ours can work. History has taught us that people horde gold and silver. Second, our economy and our nations wealth is exponentially better because of the Federal Reserve and fractional banking. Third, I believe the whole world is wealthier because of our current monetary system.
Just like 'guns don't kill people, people kill people', you can also say:
'our banking system is not evil, the abuse of our banking system by politicians is evil'.
Your local banks and bankers are providing a legitimate and much needed service to all of us. The wealth of our nation is directly related to our monetary system. The real problem is the abusive monetary policies of politicians in both parties and the citizens that demand unlimited free goods and services.
So what happens when the Federal Government sells bonds? Most bonds are actually held by the Federal Government. The Social Security trust fund is a big holder of Treasury bonds.
The Social Security Trust Fund was set up to keep Social Security solvent to take care of our retiring and aging population. A large pool of money should be in this fund. Unfortunately it is all gone. The financially liberal politicians, both Democrat and Republican, have taken it all.
Gone are trillions of dollars stolen by both parties to fund pork barrel projects back in their districts. Now we have a bunch of Treasury bonds sitting in there. Future taxes our children and grandchildren will have to go into debt to pay. We are such good guardians of our children’s future.
The next biggest holder is the Federal Reserve, then China and other countries. This one works out pretty well for us. We give them pieces of paper called Treasury bonds, and they give us oil, electronic devices, cars, food and well just about anything. This works well because our dollar is "The Reserve Currency of the World".
These other countries sit on these bonds in their central banks which allow them to borrow money from the World Bank and International Monetary Fund. You see these other counties do this central bank fractional reserve shenanigans too, but they have to have our Treasury bonds in their banks to do it. This works great for us.
This also keeps the money out of our money supply thereby keeping the rate of price inflation under control. For all of you bleeding heart liberals out there that think ‘it’s just not fair to the rest of the world’, keep in mind that if we weren't the Alpha Male on this planet some other country would be. Whatever lot you currently hold in life would be much worse with any other country in control, and under some regimes you just might be lined up and shot.
What’s even better than other countries buying our Treasury bonds? How about all oil in the world is traded in our dollar. They are called petrodollars. We make up money out of thin air, and they have to give us oil for it. American dollars are everywhere.
There are so many U.S. Dollars outside our country that there is an actual word for it. A dollar held in a bank outside our country is called a Eurodollar. Not to be confused with the Euro (which is the official currency of the eurozone.)
There are actually more Eurodollars in existence than dollars in our country (if you don’t count the bonds sitting in the Social Security trust fund). This also helps mask our true rate of price inflation.
Another major reason our price inflation is under control is the efficiency of our private sector. Our private sector increases wealth faster than our Federal Government can destroy wealth, for now anyway.
Keeping our Federal Government from wasting money on things that do not increase the wealth of our nation is paramount. Sure our county can have a new bridge. If that bridge is used to increase commerce and the overall wealth of our country, it is a good investment.
A bridge to nowhere only diminishes the wealth in our country because we could have used that money for a bridge that did increase our nation’s wealth. While I believe the Federal Government does have a charitable role in society, I think it should be very limited. Individuals should be kind and giving, but governments need to be fair, just, and impartial. 
Governments by design are very inefficient, and charity usually does not increase monetary wealth. The Federal Government giving someone money just because they are lazy robs our society of the wealth the same money could have produced if used responsibly.
We all want a return on our investment, and the money we use in our Federal Government should not be any different. I am not saying the Federal Government should not spend money on anything unless it creates wealth, but we are so far in the other direction we really need to stop digging this hole we are in.
Getting more and more citizens and corporations dependent on government handouts to keep a political party in power should be criminal. Financially liberal politicians are masters at this.
Have you ever heard of the Federal Deposit Insurance Corporation, also known as the FDIC. It is full of Treasury bonds. If something happens to your money while it is in an FDIC insured bank the FDIC would step in and make everyone who lost money whole again. This is actually a great idea except there is no real money in it. Once again the Federal Government has taken the money out and put in future taxes (in the form of Treasury bonds).
The Federal Government loves for families to go into debt. It keeps both parents working and making a higher income for the family to pay more income tax. Here is a great idea. Let’s let the inner cities turn into crime ridden areas that no one wants to live in. Everyone moves to new neighborhoods with expensive houses. Now both parents have to work to pay the mortgage and more taxes.
Then there is the second car for mom to get to work, so they need to make even more money. Eventually they are up to their eyeballs in debt with both parents working to bring home more money for the Federal Government to tax.
They make too much money to get any assistance from the same government that let the crime get out of control that forced them to move to a more expensive neighborhood which made the mom have to get a job that made them have to get a second car payment. This is fuck-sanity.
Our Federal Governments taxing of working Americans income has become punitive and destructive, especially when that same government is creating money out of thin air at the same time.
Executive order 6102 was signed into law in 1933 by President Franklin Delano Roosevelt. This order criminalized the possession of gold by the public. During the depression people started hoarding gold which was draining the Federal Reserve Depository of gold. This may or may not have been a good idea, and there are many conspiracy theories as to why it happened.
After World War II, the Bretton Woods Agreement was signed in 1944. It basically made our dollar The Reserve Currency of the World and created the International Monetary Fund (IMF) that today is part of the World Bank which loans money to the leaders of developing countries (mostly financially liberal ones). It pegged our dollar to gold at 35 dollars an ounce.
It was kind of a complicated arrangement, and I won’t go into detail, just suffice it to say this allowed Europe to borrow money to rebuild their destroyed nations. Again, this may or may not have been a good idea and conspiracy theories abound because a group of socialists called Fabians basically run it, and they don’t exactly believe in free market capitalism.
The Bretton Woods Agreement also removed our dollar from the gold standard (except for the 35 dollars an ounce exchange rate to developing countries only). The 35 dollars per ounce of gold was then removed by President Nixon in 1971 when he broke from the Bretton Woods Agreement because the now developed European countries were demanding gold in exchange for dollars. Our dollar had been and was still being inflated to pay for the Vietnam War and the Great Society under President Johnson.
France, whom we had liberated from Germany, was one of the countries that demanded the most gold. Of course our Federal Government was being financially irresponsible by inflating the money supply like crazy.
The move we had made at Bretton Woods in 1944 to help rebuild and stabilize Europe was now working against us. Breaking from the Bretton Woods Agreement and letting the dollar float devalued the dollar instantly, and this really pissed off the Arabs because all oil is traded in American dollars (called petrodollars).
Their oil was severely devalued immediately. We got to print money up out of thin air, and they had to give us oil for it. All of this and the USA supporting Israel in the Yom Kippur War helped start the OPEC oil embargo of 1973.
Speaking of ending poverty under President Johnson’s Great Society, the brilliant economist Walter E. Williams wrote a great column in February of 2014 titled ‘Dependency, not poverty’. Here is a small piece from his column talking about how much we have spent on poverty since the creation of President Johnson’s ‘War on Poverty’.
Since President Lyndon Johnson declared war on poverty, the nation has spent about $18 trillion at the federal, state and local levels of government on programs justified by the "need" to deal with some aspect of poverty. In a column of mine in 1995, I pointed out that at that time, the nation had spent $5.4 trillion on the War on Poverty, and with that princely sum, "you could purchase every U.S. factory, all manufacturing equipment, and every office building. With what's left over, one could buy every airline, trucking company and our commercial maritime fleet. If you're still in the shopping mood, you could also buy every television, radio, and power company, plus every retail and wholesale store in the entire nation" (http://tinyurl.com/kmhy6es). Today's total of $18 trillion spent on poverty means you could purchase everything produced in our country each year and then some. 
If throwing money at poverty worked we would have long ago eradicated poverty from our nation. The only way to lift people out of poverty is to follow policies that increase our countries wealth. Personal responsibility and accountability for one’s actions and decisions is crucial. Many liberals are mad that a few people are so much wealthier than others (although they always seem to exempt actors and celebrities that make millions of dollars playing make believe). If these people helped to increase the wealth of our nation they have a right to the fruits of their labor. Increasing the wealth of our nation is what will produce new and better jobs for everyone.
Big business loves the Federal Government to give foreign aid to other counties. That is as long as there are strings attached that state the Country receiving the money has to use most of it to buy our goods and services.
What do you think the position of XYZ Car Company is on the Federal Government lending money to a foreign country so that country can buy cars from XYZ Car Company? I think XYZ Car Company would be pro foreign aid. What do you think the workers at the XYZ Car Company position is on that foreign aid?
A lot of American workers are tied to government spending, and there is nothing wrong with that as long as the spending increases the wealth of our nation. This does not always have to be monetary wealth either.
Cultural wealth is also important in society. There can be a lot of problems with government spending, but there is also a lot of societal wealth in our country from government spending. There is always a trade off. Responsible spending of taxpayer’s money is what is most important.
Foreign aid through the World Bank and IMF is also tied to our dollar. They transfer wealth from American taxpayers to underdeveloped countries through foreign aid and loans. American taxpayers are basically co-signers for all World Bank and IMF foreign aid and loans.
If the loans do not get paid back, the consequences are felt as inflation on the American taxpayers. These institutions love lending money to socialist type governments because they tend to have more control over their citizens.
The new wealth transfer scam on the horizon is the climate change crowd. The poor countries will all claim damage and want restitution from the wealthy nations. Liberal politicians will lead the way to once again transfer American taxpayer dollars to the private bank accounts of corrupt leaders around the world.
Gee, I wonder if these corrupt leaders will go along with the climate change agenda? Or, will they refuse the free money because they believe the climate change scam is a hoax. (The climate has always changed. I support responsible environmental regulations to limit pollution as much as reasonably possible but not at the destruction of our economy.)
The problem with leftist ideology is that it just doesn't work. I wish it did. I wish we could all live in a beautiful Utopian World. The Soviet Union was the flag ship of leftism, and it failed. The bigger the government, the bigger the corruption. All of the leftist countries around the world are running out of rich people to tax, and no one wants to work.
A country only grows wealthier when production increases. Production only increases when people work. The key here is for people to work. They don’t even have to work harder. Efficiency in the market allows increased production even without an increase in work effort.
The problem is a lot of people just don’t want to work. A lot of people just want to sit around all day doing nothing and have someone else give them money. It is hard to change lazy when lazy is rewarded. Thomas Edison once said ‘opportunity is missed by most people because it comes dressed in overalls and looks like work’.
Another problem is skill level. If you don’t have the skill level to produce ten dollars of goods or services in an hour, a company cannot pay you ten dollars an hour. That is the fallacy of minimum wage laws.
If you think about it, when government sets a 10 dollar minimum wage level they are really just setting a 10 dollar minimum skill level. Some workers just don’t have the skill to produce ten dollars worth of work in one hour. That is sad, but it is also true. Any company will soon go broke if it pays employees ten dollars every hour when they only produce five dollars of goods or services.
I would love the minimum wage to be 100 dollars/hr, but without our eduction system teaching the skills and knowledge needed to produce that level of pay it can never happen. The education in our country has been taken over by liberals concerned more about teaching tolerance and victimhood than any employable skills needed is society. Our education system has completely failed at giving our youth the skills and knowledge needed to secure a good paying job. The education systems answer is to just raise the minimum wage--this shows just how disconnected the whole education system is from the real world. They don't teach our youths the skills and knowledge to produce 10 dollars an hour of goods or services, and then they demand society pay them 20 dollars an hour.
This is elementary school arithmetic. Let’s take politics out of economics. Politicians are the worst group to be in control of our economy. This is another argument for a small limited Federal Government.
Trade deficits are no problem when your currency is The Reserve Currency of the World. Can you imagine how much inflation would be if all the dollars in the world came flooding back into our country. You would have to carry your money around in a back pack.
No one would want our dollars. We would be unable to export any of our goods. Our economy would collapse. Don’t worry. The rest of the world is to messed up to compete with us financially, at least for now. When Europe, Asia, and Africa get together and become one big trading block things might change.
Earned money is gold while created money is theft. Earned money encourages price stability while fiat money is the best friend of the welfare state. A lot of hardworking Americans are taxed twice. First, Americans are taxed through income, school, and property taxes. Second, they are taxed through inflation. Inflation is just a hidden tax.
Liberals see taxes as a way to redistribute wealth and garner votes. Big government liberals are dangerous when they have power. They are much more dangerous than small government conservatives. A big out of control government can arrest you, throw you in jail, and confiscate your property. A big out of control corporation can only fire you. Letting liberals have power is just like letting a child play with a loaded gun; stupid and dangerous.

Shoulda used a bigger gun.
I was working in a trauma center when a patient came in with a gunshot wound to the back of her throat. The patient was very skinny and looked like a skeleton. It turns out the patient had depression and was trying to kill herself by not eating. Earlier that day she called and told a friend that trying to starving herself was taking too long. She then got a small .25 caliber pistol, place it to the back of her mouth and pulled the trigger. Usually the gun is pointed at an angle up and this kills them instantly. The angle and small caliber of the gun caused this woman to simply sever her spinal cord just below her brain stem. She arrived awake and having problems breathing. She could not move her arms or legs and there was minimal bleeding in her mouth. We quickly put a breathing tube into her lungs and put her on a ventilator. I found out later that she recovered with no brain damage. She stayed in our hospital a couple of weeks and we fattened her up. Eventually she was sent to a specialty hospital where she will be on a ventilator in a bed for the rest of her life with no movement below her neck. This story proves the old adage; If you think things are bad now, just remember, it can always get worse.

ORANGE BELT

‘What is a Credit Score?’
We Americans love to be graded on things. We are very competitive in nature, and we love competition. In baseball, basketball, football and even NASCAR we always want to see which team is the best. We have scoring systems to rank ourselves and our teams with the higher score usually being better.
Anytime the word score is in something, I believe we have a natural tendency to want to be the best. The higher your score usually reflects the better you are at whatever it is you are being scored on. We like to show the world how good we are at certain things, and scores are usually a good way to prove it.
In the world of banking there is also a score. It is called a credit score. So we Americans naturally want to have the highest credit score to reflect how good we are at ‘playing money’. However, this score can be deceiving. The only winner in this game is the banker.
The banks love to show the commercials on how important credit scores are, and they usually show some average Joe working hard to get a higher one. It’s kind of like watching a good NASCAR race. Everyone wants to come in first and ‘Win’.
The banks show how important it is to keep your credit score high. There are even companies that watch over your credit and notify you if anyone tries to steal it. It is only natural to think ‘If someone might try to steal it, then it must be very important’. Unfortunately for most average Joes, in the game of ‘money’ the banker always wins.
Banks are in the business of making money. We are all in the business of making money. Now that you understand all money is created out of thin air through a debt instrument, let’s go over credit scores.
To bring new money into existence a bank must have a debt instrument. In the public sector this might include car and home loans. In the business sector this may be loans for large purchases or lines of credit. In the government sector loans are usually in the form of bonds.
There is only a certain amount of new money that can be created, so banks and the Federal Reserve use interest rates to control the supply of money. If they want to increase the money supply and stimulate borrowing and buying, the banks decrease the interest rate to attract more borrowers.
When they want to decrease the money supply (to slow inflation) the banks simply increase the interest rate thereby limiting borrowing. Obviously there is only a certain amount of money that can be created for borrowing, and this is where politics comes into the picture.
Big government financial liberals feel that government and politicians should get more money from the money supply which would limit private and business access to the money. Liberals believe the government (which they want to control) is better at providing goods and services to the public than the private sector free market system.
Small government financial conservatives feel the government and politicians are lousy at using and managing money, and they want to limit the government’s access to the money supply. They believe private individuals and businesses are better at using and managing the money supply.
Don’t confuse conservative with the Republican Party because while they say they want a smaller federal government they always seem to grow government any chance they get.
Obviously banks do not want to lose money, even when they just make it up out of thin air. Believe it or not there really is a science behind banking, and it really can help a countries economy grow. Our banking system has substantially increase the wealth of our nation. The Federal Reserve’s monetary policies have helped our country grow economically, and our country is much wealthier because of it.
Our Federal Governments' financially liberal out of control borrowing and spending on programs that don’t increase our nation’s wealth has become epidemic. We all know that a government bureaucracy is wasteful, and we also understand that certain aspects of life need to have government intervention. We really need to make sure that any government spending is used to increase our nation's social and financial wealth and not used punitively or to buy votes.
Our Federal Government can raise money in two different ways. It can collect it in the form of taxes or borrowing money. This is covered in much more detail in your purple belt training, but I want you to understand that governments play a big role in the supply and demand of money especially when the country is in a recession and the private and business sectors are not borrowing.
That is when our Federal Government spending has to increase to keep increasing the money supply to pay off old debts. The key here is to spend that borrowed money on things that will increase our nation’s monetary and societal wealth. Once our monetary system was started in 1913 our money supply must increase constantly just to create enough new money to pay banks the interest on old loans.
Our money supply must always get bigger through new borrowers and borrowing. If everyone stopped borrowing all money would go back to the banks as loan payments and all assets (including your house) would go to the banks through foreclosures since you were unable to pay the bank the interest on your loan (because the interest money was never created). Now back to credit scores.
There are three types of borrowers. They include individuals, businesses, and the government. Obviously business and government are important, but we want to focus on individual borrowing and credit scores.
When an individual chooses to purchase something they have two options. Pay cash or borrow the money. The money we borrow does not exist until it is created in the form of a debt instrument, and banks can choose who they let borrow the created money.
When you want to borrow money you are in the arena with other individuals, businesses, and governments all bidding on the cost of money through interest rates. Lower interest rates go to individuals and institutions with proven track records of transferring wealth to the banks. Higher interest rates go to individuals and institutions that have not proven to be so good at transferring their wealth to the banks.
When you borrow money you are basically telling the bank that you will transfer your wealth to them. Individuals are graded on their willingness and ability to transfer their wealth to the banks. This grade is called a credit score.
The more times you have transferred your wealth to the banks, the more willing they are to let you borrow more money and increase your credit score. The better you are at transferring your wealth to the banks, the higher your credit score. There is even a series of formulas to this credit score that only the bankers are smart enough to understand.
The bankers believe working people are too stupid to understand this complicated formula. Well let me tell you what the real formula is, and it is real simple. The more willing and able you are to transfer your wealth to banks the more willing they are to let you. They even give you an American badge of honor called a high credit score.
Now I don’t know about you, but I don’t want to transfer my wealth to a banker. He simply makes the money up out of thin air. Now some of you are thinking; well someone has to control the money supply. You are right. The Constitution spells it out real clear. Congress should control the money supply.
When the Federal Government needs money for goods and services, it could simply make the money up and spend it. You might ask yourself what is the difference between the government being in control of the money supply or a private institution like the Federal Reserve. The difference is in the interest that the Federal Reserve charges can never be paid back. The interest is what makes all of this so evil. I will go over the fix in a later chapter.
I believe future generations will look back at the twenty and twenty first centuries and discuss the population as being indebted servants the same way we learn about the indentures servants of the sixteenth and seventeenth centuries. If you want to keep yourself from being an indebted servant you need to stay away from debt.
We are constantly attacked on radio and TV telling us to buy more, buy it now, and buy it on credit. Let me tell you my friend, debt is a curse. Debt is an evil force that is constantly tempting all of us.
Everywhere you look everything is talked about in terms of buy it now, low monthly payments, and no payments for six months. If you can’t afford to pay cash for something, don’t buy it. We are brainwashed into believing a high credit score is a badge of honor.
A high credit score simply means you have proven to the banks that you are willing and able to transfer your wealth to them. You need to change your perception of a high credit score and realize it is simply a dunce hat. It simply shows how stupid you are in letting the banks take your wealth.
So next time you hear on the radio or see a commercial on TV talking about how much you need a good credit score, remember what you have learned here. We teach you the truth. The borrower is slave to the lender. Now, if we offended anyone, too bad.

​I wish I could forget.
I was working in a trauma center in a large beach city back in the 90’s. It was spring break, and we always got very busy during that time of year. A young girl was in a large SUV with friends driving down to the beach on the highway. Something happened while they were driving causing the SUV to rollover and land upside down on its roof. The young girl somehow ended up lying on her back with the lower half of her body outside the door window on the road. An 18 wheeler trying to miss the SUV rolled right past it and ran over the lower half of her body. As you can imagine nine truck tires with thousands of pounds of weight can tear the human body apart. She arrived in our trauma room awake and alert with no pain or complaints. The paramedics had her strapped down to a long backboard and a stiff plastic collar around her neck which is normal for patients in car wrecks. Having her head tied down to the board kept her from being able to see the lower half of her body. As paramedics entered the trauma room they were looking at me with a scared look of sadness on their faces. These were veteran paramedics from a large fire department who were used to seeing a lot of trauma, but I could tell by their looks this was something different. Doing a quick assessment on the patient I found everything from chest up intact and everything below her chest looked like it had gone through a meat grinder. I quickly understood the feelings of the paramedic’s standing next to me. There was nothing there to put back or fix, and there was no bleeding. All the tissue was torn apart and grey. The surgeon soon came in and quickly looked at me with a ‘we can’t fix this’ look. I talked with the young lady to calm and reassure her but I think she could see in my face how scared I was for her. The large truck tires had crushed everything they touched which actually clamping off the aorta so the patient did not bleed to death. Legs, bones, muscles, and the abdominal organs were all just mangled together. Anesthesia arrived right behind the surgeon and while focusing on her airway appeared to calm down quickly as he saw the patient was awake, talking, and breathing with no problems. He quickly assessed the situation, and all three of us looked at each other for what seemed like an eternity. Finally, the surgeon said with a crackling slow voice ‘well let’s get her to the operating room’. We all went back into gear and quickly moved her to surgery where sadly she passed away. This was truly one of the saddest and most horrible things I have ever seen.

GREEN BELT

‘Taxes and Social Security Are a Scam’
The United States tax code is over seventy thousand pages long. It is very difficult to understand even for tax professionals. The United States Federal Government needs money to provide the goods and services we citizens need and demand. There is no question about these facts.
The way the government goes about getting that money is in question. If you wanted to make a tax code to cause the most class warfare and be the most unfair and inefficient, you could not beat our tax system.
I believe our Federal Government should be able to raise money in one of two different ways. First, it can raise money though taxes. Second, the United States Federal Government can raise money through inflation of our money supply. Currently, the United States Federal Government raises money through taxes and inflation of our money supply. I do not believe a moral government has the right to use both methods to raise money.
I do differentiate our State’s governments from our Federal Government. The United States Federal Government has the ability to raise money by inflating the money supply with the creation of new money out of thin air while State Governments cannot. State Governments must use taxes as their only form of revenue. While states can raise revenue with the sale of bonds, these bonds eventually have to be paid back with real dollars.
Our State governments do not have the ability to simply create new money to pay back bonds the way our Federal Government can. There are some states that have had financial liberals running them for decades, and the Democrat party has run them into near bankruptcy. These liberal states will be the next thing the American taxpayers will have to bail out.
Let’s take a look at our present tax code. About fifty percent of Americans pay no federal income taxes. Think about that for a minute. Fifty percent of the citizens of a country that collects revenue through income taxes pay no income tax. Is it any wonder liberal politicians keep getting elected?
The stupid vote is real easy to get. Vote for me, and I will get you more free goods and services. This sounds pretty good as long as someone else is paying the bill. This system promotes corruption and black market dealings from political kick backs to inner city drug deals.
The other fifty percent has to pay for everyone. Not only does this fifty percent have to pay the entire federal income tax bill, they don’t even get the goods and services that the non-paying citizens get for free. The non-paying group gets free medical, free dental, free housing, free prescriptions, free food, free braces, free cell phones, and free school meals for their kids. All paid for by the paying group who get none of these free benefits. That’s crazy.
The paying group then has to go out into the market with what is left of their paycheck and buy their own medical, dental, housing, prescriptions, food, braces, cell phones, and lunches for their kids at school.
All of the free goods and services the non-paying group gets is not even counted as income, while almost all of the goods and services the paying group has to buy on their own is not even tax deductible. Why would anyone in the non-paying group getting all the free goods and services want to move into the paying group?
There is no incentive to improve your life. Many hourly workers, small business owners, and the self employed make less than the ‘poor’ on the government dole. This does not sound very American to me.
So who are the stupid ones? The ones paying for everything and receiving very little or the ‘Club 52’s’ living off of everyone else. Here at Financial Black Belt we call the group of lazy Americans on the government dole that get to sit around all day and do nothing but watch liberal daytime TV for fifty-two weeks of the year the ‘Club 52’s’. I am not talking about the elderly, the truly sick or injured, and temporary assistance for Americans going though hard times. We all know the difference. When everyone’s vote is equal, a piece of shit financially liberal politician will always go for the lazy vote. Democrat politicians knows the lazy voter will always respond to getting more free stuff, especially if they qualify as a victim of some perceived social injustice bullshit. The other end of the spectrum is big business corporate welfare known as crony capitalism. Big corporations donate large sums of money to politicians for special favors.
The Federal Government loves the entertainment industry. It keeps the populous distracted from the important things. Daytime TV shows cater to the liberals with Oprah, Springer, and the ladies on The View, while the radio is mostly conservative during the same working hours. I wonder why.
Could it be that the liberals are sitting at home with nothing better to do than watch TV, while the working ones pulling the wagon are lucky if they can listen to radio while they are at work? To give you an idea of who watches daytime TV just watch it for a few hours. You will be bombarded by commercials from lawyers wanting you to either sue every drug company in the world or help you get on disability. This is prime time for the ‘Club 52’ audience.
The United States federal income tax system is a scam. The system is designed to be unfair and to break Americans into special groups which causes envy and class warfare. This is a very left wing idea, and it needs to stop.
We are all Americans. We deserve a Federal Government that wants to join us together instead of break us apart. I explain the fix for this in your Blue Belt training. Now let’s talk about our Social Security system.
Our Social Security system was started in 1935 with good intentions and was actually a noble idea. Take care of the elderly and disabled. That sounds good to me. The only problem with the idea was how to fund it. Having workers contribute money into an account that they can later use for retirement is a good idea. In fact I think we have that now. They are called Individual Retirement Accounts or IRA’s.
The problem with Social Security is that it is funded and distributed at the same time. Money coming in today from workers goes right back out to retirees. There is no real investing going on. This might have worked if the number of workers to retirees had remained constant. Unfortunately it did not.
In 1940 there were about 42 workers contributing into Social Security for every one retiree getting paid. It worked well until the numbers started to change. In 1950 the number of workers shrunk by more than half to 16 workers for every one retiree. Social Security basically turned into a huge Ponze scheme. Today that number is down to three workers contributing to Social Security for every one retiree.
The amount of contributions into the fund has also gone way up. What started as 1% is now up to about 17% of an employees pay going to Social Security when you combine workers and employers contributions.
Through the years the Social Security system has changed to keep up with the demands of an ever increasing retirement group, and now it even has a surplus (if you want to believe the government). The problem with the surplus money is that the money has been taken out by our politicians to buy votes.
Voters keep demanding government to give them more free goods and service without raising taxes while keeping price inflation under control. Our politicians know that if they don’t give us more free goods and services, we will vote them out and elect someone else that will.
So the politicians, from both parties, simply take the surplus money from the Social Security fund to give more free goods and services to their constituents. This little trick also helps to keep price inflation under control.
The politicians simply replace the Social Security fund money they take out with Treasury bonds. As you know, Treasury bonds are future taxes. Treasury bonds are future unfunded taxes. Treasury bonds are future unfunded liabilities. All Treasury bonds are just taxes pushed forward onto our children.
Retirees worked hard and contributed to Social Security and deserve to get their benefits. Back in the 1990’s I would tell my family and coworkers that at some point Social Security would be means tested. They thought I was nuts. Now it is easy to see that train coming down the track.
I even used to tell them how it would slowly be implemented with only the mega rich affected. Perhaps everyone with a net worth of over ten million dollars would not get their Social Security check. The media would be blind accomplices.
There would be news stories showing a goofy guy joking that his Social Security check won’t even pay to fill his yachts’ fuel tank, and then showing a single female having to feed her kids leftovers for dinner. It will start that way, but the definition of the wealthy would soon come way down. You already see it now.
President Obama’s definition of wealthy is a whole lot different from most of us. He is already redefining rich to mean $250,000. While this is very good yearly income, $250,000 in an IRA is a completely different story. $250,000 in an IRA getting 5% interest per year (which is very good when investing conservatively) is about $1,100 a month. Gee, that sounds about as much as a Social Security recipient gets, and don’t the liberals think it is all about ‘being fair’?
Unlike most Social Security income, traditional IRA income is taxable. Ouch! I also see those Medicare deductibles going way up for all of you ‘rich folk'. The vote for Social Security benefits to be means tested and that big increase in the Medicare deductibles for ‘rich Americans’ will be easily passed when you include no deductibles for the ‘poor’ in the same bill.
Want more. The average federal government worker’s pension pays well over 32,000 dollars a year.
Riskless rate of return is defined as: A theoretical interest rate that would be returned on an investment which was completely free of risk. The 3-month Treasury bill is a close approximation, since it is virtually risk-free. It is also called risk-free return (current Treasury bill rates are 0.3% APR for 3 month note to 3% APR for a 30 year note.) I believe a government pension is about as close as you can come to a riskless retirement. You would need almost 650,000 dollars at 3% interest in a 30 year annuity to get a return of over 32,000 dollars a year.
Federal and all government employees have worked hard and deserve all the benefits promised them. I respect and support our public sector workers because I used to be one. I am though pointing out that the old private sector retirement programs of the past that took care of their retirees no longer exists for a reason: It was unsustainable.
While we should keep any promises made to all current government employees, all new government employees should be given retirement money into IRA accounts just like the private sector.
This forces the funding to be done now instead of pushing it off onto our children and grandchildren. Can you imagine what the stock market would do with all of the billions of new investment dollars coming in every year. Now that is real free market capitalism.
Here is something else to think about. All those ‘free’ kids being born today at the working taxpayer’s expense will vote into office the financially liberal politicians that will take away those same working taxpayer’s Social Security benefits.
You have to pay for their kids, and then those same kids will vote to take away your Social Security. Talk about a double fucking. To get all the government workers onboard, government pensions will be tax exempt.
All of us that have worked hard, contributed to Social Security, and then contributed to an individual retirement account may soon find out that we just shot ourselves in the foot. That IRA may soon be used against you to determine if you get back any of the Social Security money that you paid in. 
There will come a point where it may be more harmful to plan for your financial future than to let the government take care of you. Sounds like pure Socialism, and we are headed straight for it. The fix will be discussed in a later chapter where I talk about family limited partnerships or FLP’s.

Self mutilator.
I was working and assigned the trauma room. The triage nurse told me she had placed a walk-in trauma patient in the trauma room. I got into the room before the doctor and trauma team arrived and did a quick assessment on the patient. He was an average guy, awake and alert, appeared in no distress with a large shark hook embedded in the side of his abdomen. I started quick assessment and found all kinds of old injuries on this guy. He had elaborate stories for each one of his old injuries. All of his fingers were missing except his thumbs and the nubs of his fingers. He had elaborate stories for scars all over his body. He was missing one ear. Part of one foot was gone. Toes were missing. His stories included getting run over by a train, accidents with 18 wheelers, attacks by wild animals, falling out of airplanes, explosions, and other traumatic events. I was thinking this guy must be Bad Luck Schleprock. The doctor arrived, and I started getting equipment ready. I noticed he was telling completely different stories of each of his old injuries to the doctor. His train injury became a plane crash. His wild animal attacks, falls, and explosions became tractor accidents, boating injuries, and other elaborate stories. His story of this incident was he was shark fishing from the beach. He was casting the line, and the hook caught him in his abdomen. The details quickly fell apart as the hook was brand new with no bait. There is usually a cable line tied to a shark hook so that the sharp teeth won’t cut the line. This was a large shark hook with regular fishing line attached with a simple knot. He said he jumped into his car and came to the first hospital he could find, but he past several well marked hospitals along the way. We asked him for a urine sample, and he then told us he stopped at a hospital along the way to use the restroom. He could not keep any of his stories straight. The doctor determined the shark hook was just in the fatty tissue on his side. We moved him to a non-trauma room, and he was no longer my patient. The plan was to sedate the patient and remove the hook in the emergency department. About an hour later I overheard anesthesia talking with the emergency room doctor. The anesthesiologist told him he had given the patient enough narcotics to kill a horse, and the patient was still completely awake. He was going to have to take the patient to the operating room so he could put him under general anesthesia to sedate him. The patient was very tolerant of narcotics from years of overuse and abuse and regular sedation was not even fazing him. Anesthesia took him to surgery, and a surgeon ended up removing the shark hook. Two days later I was standing in the emergency room radio station. I overheard a nurse telling another nurse about a patient in room 1 who had all these injuries and all these stories of how he had lost his fingers, was run over by a train, and fell out of an airplane. I quickly went over to room 1 and looked inside. I found this same guy sitting there. He didn’t even remember me. Needless to say he was labeled a drug seeker and was getting no narcotics from our hospital ever again. He burned his bridge with our hospital, but I am sure he just moved on down the road to the next one. This was definitely one of the strangest patients I have ever encountered.

BLUE BELT

‘Inflation for the Goose, Inflation for the Gander’
The average American has no idea how lucky and blessed our country has become. Our dollar is The Reserve Currency of the World Bank and International Monetary Fund. Almost all countries in the world buy our bonds and sit on them in their banks.
There are more of our dollars outside our country than inside. All oil is traded in our currency which are called ‘petrodollars’. All of this helps to keep the price inflation we feel in our country very low.
The average country in the world is a shit hole run by a crazy dictator. Think about that. The only reason our country and others like it are so wealthy is that our government promotes and rewards the building of wealth.
Wealth does not just come into existence. There is no spontaneous wealth. It has to be created. Usually with a lot of hard work and capital involved.
The ability to create new wealth and a fair justice system to keep corruption under control are what keeps our country wealthy and the greatest nation in the world. We have to keep financially liberal politicians and leftist ideas from destroying these values. This includes a fair justice system run on the rule of law, not on the emotions of individual judges.
You don’t change the rules in the middle of the game. This game we are all playing called the American way of life was started over two-hundred years ago. We need to stick to the basic rules of our Constitution if we are going to continue to grow as the wealthiest nation on the planet.
Wealth is not money. In our country we have free market capitalism. Capital creates wealth, but wealth is not money. Wealth is objective. Wealth is something you can hold in your hand. Wealth represents the product of capital and labor. Wealth is whole. Wealth has mass.
Money is something that we use to represents wealth, but money is not wealth. Money is subjective. Money is elastic. Money can be twisted and stretched into many different things. Money does not have a mass because money can represent any mass. Money is like playing poker with a deck full of jokers.
With all of that in mind, a few years ago Bill Gates and Warren Buffet were in the news talking about how they had decided to give half of their wealth to charity. While this might be a feel good idea, it is absolute insanity and a waste of wealth and capital.
For a nation to prosper there needs to be three things. First is a free market system with available capital (or money, or wealth, or whatever you want to call it.) The second requirement is plenty of skilled workers. The third is a fair political/judicial system with strict accountability. Throw a billion dollars of charity at a country run by a corrupt government with an ignorant population that have no skills or a large charity run by a highly paid liberal celebrity. Within a few years the billion dollars of wealth will be gone and the same corrupt officials will still be in power and the population no better off or the same highly paid liberal celebrity will still be running the same large charity telling everyone how much the charity could do with more money.
Investing that capital into an impoverished country that will produce good private sector jobs, good training and education, and building an infrastructure for a strong justice and free market system is the best ticket for that country to come into the modern world.
The amount of wealth these individuals will give to charity could help to fund new and existing private businesses in our country and other countries around the world. These companies would employ and train persons to become skilled workers which in turn increases the wealth of their nations and the world. Increasing the wealth of nations is the only way to help the poor get out of the poverty they live in and become productive members in our global economy.
The government cannot create wealth (I wish it could, but it can’t.) It can create jobs, but not wealth. Without wealth creation in the private sector a nation is doomed to a low standard of living.
This does not mean a government can’t have strong rules and regulations controlling the private sector. It just means every citizen needs to have a clear understanding of how their nation’s wealth is directly related to their private sectors ability to create new wealth. No new wealth equals a lower standard of living for the next generation.
Winston Churchill was the Prime Minister of England during WW II. He held the highest government job in a Socialist country, and he still understood the need of a strong private sector for wealth production when he stated: 'Some regard private enterprise as if it were a predatory tiger to be shot. Others look upon it as a cow that they can milk. Only a handful see it for what it really is--the strong horse that pulls the whole cart.'
Government cannot create a better standard of living. Only wealth can produce a better standard of living, and only the private sector can produce wealth.
Wealth should be used to create more wealth. Charity does not create wealth. The more wealth a nation has the more money there is for citizens to give to charity. Charity does not create wealth, but wealth does create more money for citizens to give to charity and therefore more money goes to charity.
When you work you create wealth and our country becomes financially wealthier. When the government takes money from you in the form of taxes or inflation you have the right to expect that same government to use the money responsibly to increase our nation’s monetary and societal wealth.
If the government spends the money they took from you to build a road that increases commerce thereby increasing the wealth of our nation, the financial wealth of our nation has increased. This is good.
If the government uses the money to take care of our senior citizens, the truly sick and injured or temporary assistance for the poor and needy, our societal wealth increases. This is also good.
If the government gives the money to a company to build a bridge to nowhere or a lazy bum they have deemed is the victim of some social injustice in return for their vote, it is not only morally wrong but it decreased both the financial and social wealth of our nation.
You are given money for your work that represents the wealth that you created. The money you work for represents wealth. We like to think of gold as wealth. Gold was used as money because it represented work. It takes work to get gold out of the ground, and gold is easily carried and traded. Gold was good to use as money because it truly represented work and wealth. Unfortunately, in our global economy we now have to use paper or fiat money that can be easily abused.
Fiat money is one that is decreed by law to represent wealth. Fiat money can be made up out of thin air, but only by a select few. Can you imagine how rich you could be if only you could make up money? Everyone else had to go and work to get money, but you could just print it up on a printer.
That is exactly what the banks and the Federal Government are able to do. You have to work for your money. The banks and Federal Government can just make it up.
Our Federal Government should be able to make up money. Our Constitution requires our Federal Government to create and run our money supply. That all changed in the beginning of the Twentieth Century.
Our Federal Government gave to a private corporation our country’s sovereign right of a monetary system. Our county’s sovereign monetary system was given to a private corporation called The Federal Reserve. There is nothing we can now do about that now accept demand government spending be limited to programs that increase our national or societal wealth.
Our Federal Government needs money to operate. The government can raise revenue through taxes or borrowing. The real screwing 50% of American citizens are getting is our Federal Government raises revenue by inflating the money supply (borrowing) AND taxing its citizens on their income.
I believe the Federal Government has a right to do one or the other, but not both. Federal income and corporate taxes should be eliminated. That would cause our nation’s wealth to increase significantly and immediately for all Americans.
‘Imagine no income taxes. It’s easy if you try. No government to take your money, and no corporate taxes too’. Sounds like an old Beatles song. You know I heard that John Lennon became conservative later in life? Most young liberals do. It is the old liberals that you have to worry about.
It is easy to be liberal when you are young and naive, but after a few decades of hard work most of us tend to see the left for what it is; Bullshit. Unless, of course, you made a lot of money doing something really easy like playing make believe. That is why most actors are liberal.
I don’t have a problem with actors making a lot of money. I believe in a free market they should get what the market pays. I just want them to realize the rest of us work hard to get a small fraction of what they earn, and a lot of Americans are just barely getting by.
So what is the answer? MONETARY INFLATION. Monetary inflation is the fairest way for the Federal Government to raise money. It hits everyone equally. It does not punish anyone. It does not stifle new ideas and new investing. It promotes the idea of wanting to get ahead in life and working harder to make more money. I explained it in a blog I wrote several years ago:
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FinancialBlackBelt.com Blog post from:
Saturday, December 19, 2009
INFLATION, THE GREAT EQUALIZER.
Well, we've been had once again. While keeping our eyes on the ball, the politicians keep picking our pockets. Like a football game, the two teams line up to face off on the field. We are the spectators cheering for our team from the stands. Back and forth they go. Democrats cry 'tax the rich' and 'stick it to the wealthy'. From the other side the republicans yell 'lower taxes increases revenues' and 'keep taxes fair'. But what is fair? We need to look no further than the local grocery store. I buy a loaf of bread for two dollars and the guy behind me pays the same. When the price of the loaf of bread goes up or down, we both pay the same. It really is just that easy, but first you have to understand and except a few concepts. One is that our Federal Government does not need your income tax dollars. It wants them, but it does not need them. The Federal Government gets about half its operating dollars from the selling of bonds on the open market. That’s called borrowing. So, if it gets half of its money from borrowing, then why not all. There are a few reasons. First, the politicians would not have anything to argue about, and second, it keeps our attention off of our back pockets (remember us watching the ball from earlier). Also, most of us don't realize they are making up the money. If the Federal Government stopped taxing us, most of us would say 'where are they getting the money to run the government'. The answer is that they are making it up out of thin air, and they have been doing this for almost a century. Here is another concept you must understand. Inflation means inflating the money supply. Yea it’s just that simple. You don’t have to take an economics class. Suppose there is a trillion dollars in existence, and a loaf of bread costs two dollars. You increase the number of dollars in existence to two trillion. Now that loaf of bread will cost--you got it-- four dollars. It doesn't happen overnight, and that is another thing the politicians love about made up money. They give it to their groups who get to use those dollars before the inflation catches up. How nice. Both parties do it, and we the mules pulling the wagon have no idea what’s going on.---to be cont.

​Sunday, December 20, 2009
INFLATION, THE GREAT EQUALIZER.
---cont from prior post. What would happen if the Federal Government made up all the money they need to operate? Well, let’s take a look at what we would not have to do. Pay income tax. We would keep the money. The person who earned the money would keep it, and that person would use the money in the economy. Usually productively I might add. Now, the Federal Government takes money from you while wasting most on administration and overhead. A lot goes to the nonproductive groups that spend it in the economy (usually on junk they don't need). The government pays for free services they give to lazy voters who choose not to work (don't confuse them with truly ill persons or the elderly who really need our help). You and I have to pay for these same services on our own. Our employers have to hire an accountant to pay our taxes and keep track of all taxes according to the rules of the IRS (which is 70,000 pages long). We then have to hire someone to do our taxes at the end of the year. The entire IRS and tax preparation companies could be done away with, and the employees retrained to productive jobs.---cont on next post.

Monday, December 21, 2009
INFLATION: THE GREAT EQUALIZER.
---cont from prior post: Well let’s continue with what would happen if the Federal Government made up all the money they need to operate. The bottom line is that it would hit us all as inflation. This inflation would hit all of us equally. As long as everyone knew that government spending is the cause we would tolerate some of the inflation. When inflation got out of control, we all would know that government spending is getting out of control. We would all demand cutbacks. Even the lazy ones in the wagon would get hit with the inflation, and want it to stop. Now a good financial liberal would argue that inflation hits the poor harder than the rich. That is not true. I showed you on an earlier post Saturday that the effect of inflation hits everyone equally. A rich man buys a loaf of bread for two dollars, and a poor man pays two dollars for the same loaf of bread. Inflation causes the price to go up to three dollars. Both the rich and the poor pay three dollars for the loaf of bread. It is true that income hits the poor harder than the rich. If you want to argue that some people are paid more than others thereby making one poor and the other rich that is another argument altogether. If you believe the person flipping a hamburger should make as much as a person doing heart surgery, then I guess you should have someone who flips burgers do heart surgery on you. There is income discrimination, but it is usually along the lines of education or performance. There is nothing wrong with that.
​(There is a difference between monetary inflation and price inflation, but the idea here is correct.)
​
So how would this monetary inflation system work? It is real easy. First, we end all Federal taxes. No personal or corporate taxes of any kind. No taxes. No fees. No levies. No anything. Second, the Federal Government will borrow all money needed for operation.
The Federal Reserve is currently the lender of last resort on all Federal Government bond sells. This means they will buy all bonds not bought on the open market by investors, banks, and other nations. In my scenario all United States Treasury bonds not bought on the open market would be bought by the Federal Reserve at zero interest.
As a trade off for zero interest borrowing the Federal Reserve would be allowed to do what they are currently doing which is using those Treasury bonds to make up about ten times more money, and then lend that money to the public, private corporations, cities, and municipalities.
The money freed up from federal personal and corporate taxes would increase disposable income for almost every working American and create a lot of new borrowing. Business capitol which has fled from our punitive corporate tax system would come pouring back into our country.
Citizens would have a very good barometer on Federal Government spending; the price inflation they feel in the market. This inflation would hit everyone equally. This would also give a good incentive to increase your income.
There would be a pendulum type mechanism to control Federal Government spending. Government borrowing would find equilibrium between conservatives and liberals. Price inflation might be 2%, and the citizens might feel comfortable and want more government involvement. Federal Government spending would increase. Inflation would increase and hit maybe 6% which might cause most citizens to feel this is too much. Government spending would have to decrease and an equilibrium of maybe 4% would eventually become steady.
In times of crisis like war the Federal Government could increase spending quickly to cover new and unexpected spending. Spending could easily return back to normal when the crisis was over.
There are currently only half of all working Americans paying income tax. The other half has no skin in the game. If government spending goes up they not only don’t feel it, they usually benefit from it at someone else’s expense.
Monetary inflation is the best way to have everyone pay and everyone play. Let all Americans feel the result of Federal Government spending and then all Americans can determine how much government spending we can all afford.
It is hypocritical how the liberals feel so strongly about income equality, but you never hear anything about leisure time equality. The average private sector worker is lucky to get two to three weeks off a year. The public sector usually gets a little more, but the kings of leisure time are the ‘Club 52’s’.
Where is all the bellyaching from the liberals on leisure time inequality? The ‘Club 52’s’ get fifty two weeks off a year, while most working Americans are lucky to get two or three. That is a huge difference. I am a victim of leisure time inequality. It must be my sex, my race, or my sexual orientation.
Here at Financial Black Belt we have a running joke about the liberals trying to get Steven Hawking to stretch time so the Club 52’s can get 53 weeks off every year. The American workers need to demand equal leisure time. Maybe we could have a leisure time tax to make it more fair.
Liberals want redistribution of wealth, how about redistribution of leisure time. How about having the Club 52’s come over and mow our yards to give us more leisure time. Most of them are perfectly able and only choose to not work because they are lazy. They have all the leisure time. They are leisure time greedy. I am a victim of leisure time inequality. It’s just not fair.

​Ewart Should've Stayed Home.
I was working EMS with my partner Scott, and we got called for a shooting one night. We arrived to find a very dead man lying up against the wall in a kitchen with a shotgun blast under his chin. The back of his head and brains were all over the kitchen wall. The memorable part about this call was the look of complete horror on this man’s face as he laid there dead. It turns out Ewart (the dead man) had been visiting the lady of the house at nights while her husband was working the night shift. The lady apparently had come clean to her husband earlier that day and had even filed a restraining order against Ewart. That night the husband had called into work sick and slept out on the couch with his shotgun. In the early hours Ewart, thinking the husband was at work, came to the house to see his lady friend again. Finding the door locked Ewart had taken a rag, wrapped it around his fist, and broke a small window out on the kitchen door. He then reached in and opened the kitchen door. The Mister of the house sleeping on the couch awoke to the noise and went to the kitchen finding Ewart walking across the kitchen floor. He quickly raised his shotgun and shot Ewart in the side of his chest knocking him to the kitchen floor. This was not an instantly fatal shot, and we could see where Ewart landed and blood ran onto the kitchen floor. We could also see the blood marks of where Ewart, then being awake but incapacitated, dragged himself along the kitchen floor trying to get as far away from Mr. Husband as possible. Mr. Husband had a single shot shotgun, and I am certain that Ewart saw and heard the breaking open of the shotgun, the sound of the shell ejecting, and the sound of the spent shell hitting the floor. The ‘thump’ of a new shell going into the barrel and the cocking of the shotgun would have been the last thing Ewart would ever hear. Anyone growing up around guns knows exactly the sounds I am talking about. The horrific expression on Ewart's face was frozen that night as Mr. Husband placed the shotgun barrel under Ewart’s chin and pulled the trigger. That look on his face will always be burned into my brain.

PURPLE BELT

“Send’em the Bill”
'The Times They Are a-Changin’. The ballad from Bob Dylan back in the early sixties really applies to every decade since. The seventies, the eighties, the nineties, and now the twenty first century. I want you to stop thinking about all the social changes going on.
Every generation has its own hot button issues about social problems.
This is Financial Black Belt, not social black belt. So all you social issues worriers I have one thing to say to you; vote financially conservative. Now let’s move on to financial worries.
The average American working family has no idea how bad they are getting screwed. They have become the mule pulling the wagon. The bills for the majority of babies being born in the hospitals I have worked at are being paid for by the hard working taxpayers who do not have benefits coming even close to the so called ‘poor’ or ‘needy’.
Reward good behavior, and discourage bad behavior. I think even an idiot can understand that logic. If you reward good behavior, you get more good behavior. If you reward bad behavior, you get more bad behavior.
I have been telling Pat for almost a decade that for the average working family of four if their health insurance bill is not the most expensive monthly bill they have, it is the second most expensive monthly bill.
A few years ago I got the proof. My 'health plan' at work changed to a new policy and administration company, and I was sent the information.
I live in a modest nice neighborhood in an average three bedroom two bath house. My monthly payment with taxes and insurance is about $1,600. I believe that my family definitely falls in the middle of the bell curve in Texas. My new 'health care benefits policy' (employers don’t call it health insurance because then they have to follow insurance regulations like covering medically necessary surgery) premium is just over $1,800 a month. That’s over twenty thousand dollars a year.
I could sure use the extra twenty thousand dollars a year I spend for health care in my pocket. That’s a few nice Hawaiian family vacations a year. Always think in terms of opportunity cost or opportunity loss. Because you have to pay twenty thousand dollars a year for health care means your family can’t go to Hawaii for a vacation a few times a year. But Mike, you only pay $500 of the $1,800. Yes, but if my employer did not have to pay the rest I could get that money paid directly to me. As a matter of fact I have the option of taking pay in lieu of benefits at my job. I absolutely have to have the health benefits do to my need for coverage of my disease.
I am not knocking my health care plan at all. I am lucky to have it. I am simply pointing out how messed up the whole system is. Think about that. The most expensive bill your family has to pay a month is given to other families for free. Let that simmer a few minutes.
The families paying for their own health insurance then have to pay the taxes to pay for the other families getting better health care for free. Sometimes the paying families can’t even deduct the health care insurance premiums on their income taxes at the same time the families receiving the free and better health care don’t even have to report the cost of the free health care they receive as income. Insanity.
There is no better health care coverage than Medicaid. No premiums (that you have to pay), no co-pays (that you have to pay), no deductibles (that you have to pay), and no preexisting premiums (that you…well you get the idea). Medicaid covers transplants, and it even goes back and covers health care cost ninety days prior to your acceptance (gee, I wonder if the hospitals had anything to do with getting that one in there). Try to get that in a private or even a group policy.
I worked in a hospital’s transplant intensive care unit taking care of patients getting heart and kidney transplants. Guess what? My hospital health care ‘benefits package’ did not cover transplants for its employees or their families. What the fuck. This is insanity. This same religious hospital that would not cover a transplant if an employee needed one loved to get some derelict drunk drug abuser out of the gutter and give him a $400,000 dollar heart transplant. You read that right, almost half a million dollars.
They loved all the good press they got from the more than willing media for 'helping the poor’. What they don’t tell anyone is that the hospital didn’t pay for the bums transplant anyway. It is real easy to get a no income bum on Medicaid and other government assistance. We the taxpayers pay for the majority of his heart transplant and the religious hospital gets all the credit. I pay, to that same hospital, premiums for a health care benefits policy that does not cover transplants.
Most of the other employees that I worked with had no idea our ‘health benefits package’ did not cover transplants, and when I pointed out to some of the other nurses working in the transplant intensive care unit two got so upset they quit. This did them no good because most of the other hospitals had gone to the same ‘health benefits’ type programs where they simply get away with not having to cover the things they don’t want to.
Oh, and guess what else we taxpayers had to cover. Remember the bum the hospital got out of the gutter and gave a new heart to (on our dime), well he comes back in and out of the hospital because he does not comply with the $100,000/year in medications/treatments (that we have to pay for) because, imagine this, he is too irresponsible (because he is usually too drunk and stoned). I saw this kind of bullshit all the time.
I have very mixed feelings about being an organ donor or a blood donor because of the abuse. The average American has no idea of the abuse of the system. I believe it is all right to tell someone that ruined their heart by using IV drugs or destroyed their liver by drinking insane amounts of alcohol for decades that you can’t have a transplant. By giving them a heart or liver transplant you are taking it away from a deserving person. (Do a quick Google search of 'Bartolome Moya heart transplant', but only on an empty stomach because it is enough to make you vomit.)
See for yourself. Go to your human resources department and see if your 'health care plan' covers transplants for you and your family members. My guess in a big fat no, and If it does the co-pays will be enormous. I have heard stories of persons needing transplants having to quit their jobs, selling all their assets, and even getting a divorce just so they get on Medicaid to be able to get the organ they need to save their life. What would you do if you child needed a heart transplant and your employers 'health care plan' did not cover transplants?
Insanity, and we conservatives keep being the dumb-asses falling on our swords. We are so afraid to let the government get involved in anything. I say we need to pay for large item goods like health care, schools, police, the military, and the building of roadways and public services collectively and some of them administered privately.
I believe the cost of health care, schools, roads, police, the military and government should be paid for equally by all Americans. I think the average working family does not have a problem with helping a hungry family eat or helping to pay their electric bill so they can stay warm in the winter, but comparing health care to food and electric is like comparing apples to oranges.
You would be outraged to have to pay taxes to house a ‘needy’ family in a home that is much nicer than yours (for free). It is like the average middle class working family paying top dollar to live in an old tent next to the sewer plant while the ‘poor’ are living for free in a mansion up on the hill. You should be outraged because that is what we are doing with health care.
Just like we need school vouchers to help insure quality education for every child in America, we also need health care vouchers to insure quality medical care for every American citizen. Like school vouchers, the cost is paid collectively and the service is administered privately. The key here is collectively paying for health care so that everyone pays and administering it privately so that it is runs efficiently. We do not want the government administering health care. We need the government completely clear of administering any health care or education other than basic regulations. Also, fund the vouchers on a daily basis so there is a financial incentive to keep you healthy.
Health care companies like Tricare, Humana, Blue Cross and others would all be competing for your business. If Humana did not perform well taking care of you this year you could switch to Tricare or Blue Cross the next year. Medicare and Medicaid would be gone.
Every American would have good quality health care coverage, and choosing your own provider every year would keep these companies working hard to keep your business. You would have a choice as to which company administered your health care.
Bad companies would be weeded out and good ones would rise to the top. That is how the free market system should work in health care. This is better than what I have at my job. I don’t have a choice. I am stuck with whatever ‘health care benefits package’ and company my employer chooses. The whole idea of getting your health care through your employer is completely moronic.
In America bad behavior is rewarded. If you have a baby you can’t afford, you are rewarded with free health care for you and the baby. Free food, free housing, free dental (including braces for the mom, WTF?), free school lunches and breakfasts. So what do you do if you have a baby you can’t afford? You have another one, then another one.
There is the baby mommy, the baby daddy, and then there is you and I; the baby money. The consequences of their bad behavior does not just go away, it is simply shifted to others by slick liberal politicians.
We then punish good behavior. A working couple gets married, saves up money, and has a baby. They get no help paying for their child. As a matter of fact they have to pay for their own housing, their own food, their own dental, their kids breakfast and lunches at school. They don’t even get to write any of this off on their taxes while the bad behavior parent not only gets these same things for free they don’t even have to count it as income.
The liberal politicians have become very good at removing the consequences of the bad behavior from their voters and dumping them onto their opponents voters. The fact is that actions have consequences, and the person doing the action should feel the consequences.
Long ago Prime Minister Margaret Thatcher correctly stated ‘the facts of life are conservative’. Liberals accept lazy as a disability to garner votes. Liberalism promotes poverty as a lifestyle choice. Liberals are very tolerant of like-minded thinkers. Tolerance seems to go out the door when you disagree with them. The scariest thing to liberal ideology is an intolerant hard fact.
The working families need to see that they are the tired old mules pulling the wagon. The mules are tired from pulling the wagon for the entitlement and political class. The entitlement and political class keep voting to keep the private sector pulling the wagon. You must learn to unhitch yourself from that wagon. The private sector has become a worn out mule with blinders on trying to pull the wagon up the hill backwards. The private sector needs to get the Club 52’s to start carrying some of the load.
Now let’s get back on topic. What do you think the hospital’s position is on the taxpayers paying for the lazy group? Let’s see. The hospital can use the charity money donated to them to pay for the poor, or they can get the taxpayers to pay the bill and keep the tax free charity money for themselves. That’s a real hard one to figure out (dont get me wrong, I believe in charity and charity hospitals but corporations do what is best for the corporation, even if it is a non-profit corporation.)
I was driving in my car listening to the radio several years ago and the news was talking about a hospital I used to work for that was sitting on a billion dollars cash. The question of the day was should the hospital pay taxes on that money. Of course the media missed the real question.
The real question is ‘why does a charity hospital have a billion dollars in cash?’ Of course by now you know the answer. It is because the hospitals no longer have to pay for a lot of the health care of the poor. You and I get to do that. The liberal media always seems to miss the real story.
The liberal media loves to chuckle when the right talks about the need for all Americans to become ‘compassionate conservatives’, I wonder if they would get the same feeling talking about the mythical creature called the ‘responsible liberal’?
In the 1990’s hospitals did not have a problem with patients that were abusing the emergency room having to sit in the waiting room for several hours. Hopefully long enough to get them to contemplate whether or not they really needed to be in an emergency room.
Now, the hospital administration is hounding staff to get every patient into the emergency room as fast as possible. In the past, emergency rooms used a triage system which got the really sick treated right away, and the not so sick treated as time allowed.
I wonder what has changed. Could it be that now the hospitals are getting everyone coming into the emergency room on some kind of government assistance? 
Administration hounds the doctors and nurses to work faster so an ingrown toenail doesn't have to wait in the waiting room for over 15 minutes. God forbid the patient leaves and goes to a primary care clinic like the rest of us. Now that all these lazy bums are covered by the government the hospital administrators want them to be seen right away. Health care managers have to pressure staff to work harder because of, you guessed it, government regulations connecting fee payments to how satisfied a patient with an ingrown toenail is while in an emergency room. Let the free market weed out the bad health care providers. Health Care Vouchers would fix the majority of our health care problems.
With everything being taken care of for the poor, they have now become the group with the most disposable income. They can now afford several tattoos, nice cell phones, expensive clothes, high dollar wheels and tires for their cars, and lots of drugs, cigarettes, and alcohol. What do you think the position of companies that sell cell phones, tattoos, nails, alcohol, cigarettes, and fast food is on the government taking money from working people and giving it to others who can now buy their products?
A society has 100 persons. Company X produces Product Y. Product Y costs 100 dollars a month. 50 of the persons in society make enough to afford Product Y. The other 50 persons cannot afford Product Y. Company X sells 50 of Product Y. Company X lobbies congress to pass legislation affirming that everyone has a ‘right’ to a Product Y. The government taxes the 50 persons who can afford Product Y enough money to pay for the other 50 persons to get Product Y for free. Now Company X sells 100 of Product Y. What position do you think the owner of Company X is on the government taxing others to pay for the poor to have Product Y?
I only see the medical abuse. How about all of the other abuses by these same people. Abuses of the legal system, food stamps, free housing, school lunch programs, and free daycare (so mom can sit at home and watch Oprah and Springer).
We have all heard or know about the abuses of the food stamp system. A person in front of us at the grocery store pays for his food with food stamps, and then has the cashier ring up his 12 pack of beer, a bottle of wine, and a carton of cigarettes that he pays for with cash. If you have money for beer and cigarettes, don’t ask someone else to pay for your food.
Some states even have cards they give the needy for the purchase of anything. Is it any wonder that an audit of this program showed much of the money going to strip bars, lottery tickets and even entire vacations?
When you don’t have to pay for your house, your health care, your kids, their health care, their daycare, their medicines, their braces, their dental, their school breakfasts and lunches, even a minimum wage job can have a lot of disposable income.
I can’t tell you how many times I have had a ‘needy’ mom or dad in the emergency room with two or three kids. All of the kids are eating chips, candy bars, and sodas out of the lobby vending machines. The parent had spent at least 10 dollars on the goodies, and then wants the emergency room doctor to write them a prescription for Tylenol because they can’t afford to buy it. What a bunch of bullshit. This happens all the time.
You are better off being poor. Join the Club 52’s. Get free health care, free housing, free food, free dental, free babies, free braces (9 out of 10 kids I see in the emergency room with braces are on Medicaid, even the mother is covered and has braces), free legal, free medicine, free daycare, free school breakfasts and lunches.
If you have kids that are about to go to college you are better off being poor. You can get free college education for your child. That’s right. Don’t believe me? Goggle ‘UTSAccess’. UTSA’s program for an all expense paid college for your child; if you are poor. If you worked hard to save money for your kids to go to college, well you screwed up. You should have just stopped working before their senior year of high school. Everything is covered with UTSAccess. All tuition, all housing, and all food. If they want some extra spending money their kid even gets first crack at the make work jobs around campus to make extra money. Must be nice. This is just the local university where I live. I would imagine most Universities have a similar program. This is a news release from when the program was started:

​UTSA offers new financial aid program
By Marianne McBride Lewis
Director of Public Affairs
(Dec. 15, 2006)--UTSA officials announced today a new financial aid package effective fall 2007 for all first-time freshman Texas residents with a family income of $25,000 or less.
Students who fit the criteria will receive grants and scholarships to cover tuition and mandatory fees for four years if they complete 30 credit hours each year and maintain a grade point average of 2.0.
"At UTSA, one of our mandates is to provide access to higher education for groups traditionally underserved -- for students who are oftentimes the first in their family to attend college," said UTSA President Ricardo Romo.
"With this financial aid package, we want to reach out to low-income families in our region to let them know the cost of going to college just got more affordable. UTSA is going to provide a large portion of the funds needed to attend college -- at no cost to the family."
Currently, tuition and mandatory fees for 30 credit hours total approximately $6,000.
The new program, UTSAccess (Undergraduate Tuition Support and Access), includes work-study positions to enable students to work on campus 10-12 hours per week to earn money to help cover the cost of room and board and other educational expenses.
Lisa Blazer, UTSA assistant vice president for financial aid and enrollment services, said one advantage of the work-study component is that it provides part-time employment on campus with flexible work hours each semester.
"In addition to guaranteeing free tuition and mandatory fees, by getting this group of students set up for work-study jobs at school, we know they will feel more a part of UTSA, spend more time on campus, get to know more faculty and staff, and learn about services that are here to help them be successful," said Blazer.
The UTSAccess program will actively provide support programs to help students handle the 30 credit hours per year, so they can continue receiving funds and graduate on time. Support programs include increased academic advising, financial aid counseling, money management and tutoring.
To participate in UTSAccess, students with a family income of $25,000 or less must apply and be admitted to UTSA; apply for financial aid using the Free Application for Federal Student Aid (FAFSA) by the priority deadline of March 31, 2007; be registered for at least 12 credit hours each semester (15 credit hours recommended); complete 30 credit hours each year; and maintain a GPA of 2.0.
(The program is still in effect for the 2014 school year, and the maximum family income level is up to $30,000).

​I am not knocking helping out the less fortunate. I am simply pointing out there is a big difference between helping out with food, diapers, and some assistance with the electric bill now and then and a free college education. This has gotten ridiculous.
I believe taking care of the elderly, the truly sick and injured, and temporary assistance for the rest of society is our civil duty, but the vast majority of the working aged on the government dole are just plain lazy.
We have 2nd, 3rd, and 4th generations of families that expect the rest of us to take care of them. I deal with them all the time. President Obama just increased the poverty level line to get more people on government assistance to assure more future voters for liberal politicians like him.
When my multiple sclerosis is flared, I am sicker and in more pain from nerve pain and muscle spasms than most of the patients that I am taking care of in the emergency room. I seldom miss work because of the pain. I just work through it.
Medications take care of some of the pain but not most of it. Google ‘optic neuritis’, ‘peripheral neuropathy’, and ‘trigeminal neuralgia’ to read about the pain I have to endure while continuing to work to pay the taxes for the freeloaders to get free health care that is better than the plan I have to pay for.
Supply creates demand is Pat’s motto, and it is very true. If you create free health care, they will come. If you create free dental, they will come. If you create free housing, they will come. If you create any free government assistance program, they will come.
Words have changed meaning. Libertarian Joseph Sobran has redefined the definition for the following words in his quote; ‘Today, wanting someone else’s money is called ‘need’, wanting to keep your own money is called ‘greed’, and ‘compassion’ is when politicians arrange the transfer’.
These lazy Club 52’s live in a world where if they have any kind of pain, stress, worry, or inconvenience it is seen as something must be wrong and the government needs to fix it. A piece of shit politician looking for easy votes always knows just where to look.
Twenty thousand dollar kids are everywhere. Next time you are at Walmart look around. They are hard to miss. The mom has three or four kids and no wedding ring. The younger kids have silver teeth (stainless steel caps because mom won’t take care of their teeth) and the older kids wearing braces because they get them for free.
The parents shopping cart is full of toys, junk, and sugary foods items. It is like a flash back to the movie ‘Dumb and Dumber’ where Jim Carrey’s character goes to the store to get ‘just the necessities’. The next scene he is seen carrying two cases of beer, wearing a foam cowboy hat while playing with a paddle ball, and then he stops to spend his last dollars on a magazine called ‘Rhode Island Slut’. They have so much disposable income that they can buy a bunch of junk they really don’t need. 
The ultimate in lazy is what we here at Financial Black Belt call ‘the shufflers’. These are the Club 52’s that are too lazy to lift their feet when they walk, so they basically shuffle across the floor. They are usually wearing house slipper and walking very slow because they have nothing to do and nowhere to go. They are on ‘Club 52’ time.
Let me throw some numbers at you. A single mother living in public housing has three kids, and they are in the local head start daycare program. She works part-time at a fast food restaurant earning $12,000/year. She is on every government program available. Medicaid is about $10,000 per person per year. Head start is over $8,000 per child per year. Section 8 housing numbers are hard to find so I will use a very conservative estimate of $20,000 per year. Food stamps are about $1600/person/year.
Let’s look at these numbers. Mom earns $12,000 in income. Medicaid for the four of them is $40,000. Head Start for the three kids is $25,000. Housing is $20,000, and food stamps are at least $6,500 per year. That is over $100,000 for this family to live for one year. This mom pays no income tax, does not have to count any help as income, and then gets back money from the IRS called an ‘earned income tax credit’.
Things are different for the private sector self employed single mom with three kids. She is paying income taxes and both sides of the Medicare tax. For her to get $100,000 a year to live on she would have to make well over $140,000. Do you realize the top 10% of households in America make about $140,000.
Remember this example the next time the left vomits out the stupid numbers on income disparity and the top earners in America. (By the final draft of this book the income disparity has grown even bigger and President Obama has been in office for over five years. I guess it wasn't really President Bush’s fault after all. I am sure the media will clear everything up).
Now, I respect anyone working to help take care of there family, and I will concede the private sector family living on $100,000 a year lives a lot nicer than the family making $12,000 and on all the government programs. But, the amount needed for both families is the same. I want you to think about this: Money for one family is earned and increases our nation’s wealth. Money for the other is taken and decreases the wealth of our nation.
In case you didn’t notice, the government is giving the ‘poor’ mom about ten dollars for every one dollar she earns. That is not a subsidy; that’s hitting the lottery. Include in there the other benefits like free braces and college for the poor family and is it any wonder this lifestyle goes on for generations?
The liberals then demonize the 'wealthy' family as rich and greedy because they want to keep their hard earned money, while the poor family having the strong arm of the government to take money from others to give them free benefits is looked at as just being ‘needy’.
If having the government take money from the responsible to give to the irresponsible is a cure for poverty, our country would have long ago eradicated poverty from our nation. I wish it worked. I wish it were that easy. Even if it kept poverty from getting worse I would be a supporter, but it doesn’t. Throwing money at poverty without requiring changes in behavior only creates more poverty.
Remember Pat’s rule number one. Supply creates demand. If you supply money for crony capitalism and poverty, you will get more crony capitalism and poverty. Only a change in behavior of the poor will stop poverty, and only a smaller federal government with very limited powers will stop crony capitalism. Remember, with Federalism states can support increasing poverty and crony capitalism all they want, but they will soon go broke. With financial liberal politicians supporting crony capitalism and giving the poor everything they need in exchange for their votes, changing the behavior of the poor and large corporations in bed with corrupt politicians is not likely to happen.

​3rd degree burns.
I was working in a trauma center which was also a regional burn center. We got a call that a badly burned patient was coming in. A man was cleaning his garage floor with gasoline, and he had a gas water heater. Eventually the gas fumes were ignited by the pilot light of the water heater and blew the garage and patient up. He arrived with complete 3rd degree burns everywhere on his body except the bottoms of his feet. This patient was completely awake and alert, and he was loudly singing ‘The Star Spangled Banner’. He started talking with us, and he stated he was in no pain (as all of his pain receptors were burned off). He was swollen everywhere, and his skin looked like it was melting off of his body. Within about five minutes of arrival his head was swollen to the size of a basketball. We quickly put a breathing tube in him and sent him to our burn unit where he died within a few hours. All I can say is that burns are emotionally and physically devastating. You never forget the smell of a badly burned patient.

RED BELT

‘Most Fights are Over Before the Loser Knew it Began’
Financial freedom begins with learning to protect and grow your wealth. You must learn to protect yourself physically. You must also learn to protect yourself financially. While there are those that may want to attack you physically, I can guarantee you there are those who are now attacking you financially.
Just like you must learn to defend yourself from one group, you must learn to defend yourself from the other. I have studied martial arts since I was in high school, and I earned by black belt many years ago. Of the many "Pearls of Wisdom" Steve Ashcraft and Stan Singleton taught me, one holds true for both physical and financial protection: 'Most Fights Are Over Before The Loser Knew It Began'.
Most of us are in a fight for our wealth, and we don’t even know it. Who are our opponents? Bankers and financially liberal politicians are the enemy. They have been stealing wealth for generations. Our wealth, our parent’s wealth, and our grandparent’s wealth.
You must realize that you are in a fight and start fighting back. I learned about money, investing, and economics on my own. In karate, my instructors Steve and Stan taught me how to fight. They also taught me to know when to fight. That knowledge is just as important, and both are an applied knowledge.
They taught me that 'most fights are over before the loser knew it began’. You are in a fight for your wealth. If you do not realize this, you will lose. Just knowing you are in the fight can change the outcome and your life.
A karate instructor from my high school days named Herb Barbee used to teach us 'your belt only covers an inch of your ass, so you have to cover the rest’. What he was trying to teach us is that having a large amount of knowledge only makes a difference if it is applied correctly.
You must learn and understand the knowledge that I am teaching you, and then you must apply it to your life. You must fight to protect every dollar you earn and learn to have every dollar fighting to earn you more money.
Someone is in control of your wealth, and it had better be you. Be proactive. Remember, the default is the government and banks will get it. Wealth left on its own will be taken. The government works full-time to find new ways to take your money. Our Federal Government is an out of control monster and the banks will gladly take your wealth. Take the gloves off and start fighting back.
‘You are in a fight for your wealth’. This statement is the truth. The truth does not hinge on your willingness to believe it. The government and banks want to take your wealth, and they are willing to do anything to get it.
Banks spend billions of dollars every year trying to get you to borrow more money, refinance your house, or get their new credit card with the low introductory interest rate. The government has tens of thousands of full-time workers trying to figure out new ways to tax you away from your hard earned money. You are being financially assaulted.
Who benefits from a tax code that is over seventy thousand pages long? Not you. Let’s get rid of the IRS. The IRS tax code is unfair. The IRS ties up tremendous human resources both public and private. Fifty percent of the public pays no income taxes. Income taxes are used punitively by politicians. You have already learned that the Federal Government can create all the money it needs to operate.
The government and the banks are attacking your wealth. Most of us are too busy working to realize we are under assault. You only have one vote. So use it wisely. Be aggressive at lowering your taxable income. Become debt free and bring your bills down to a minimum.
Start a business doing something you enjoy then you can write off the cost of having fun. Like to travel? Start a travel blog. Like to fish? Start a fishing blog. Like to hunt? Start a hunting blog. You get the idea. Keeping overhead low and running it as a family business is the most important thing.
Another critical thing is having your spouse on board. You must be a team. You cannot be fighting two different fronts. If your spouse is not with you this is a fight you will continue to lose. You and your spouse can be socially liberal, socially conservative, or anywhere in between, but you both must become financially conservative.
There are financial conservatives and financial liberals, and the answer to one question defines both; What do you do when you continually run out of money before your next payday? A financial liberal will answer that we need more money coming in, while a financial conservative will answer that we need less money going out.
A lot of women are financial liberals. Not all, but a lot. Women generally have the nesting instinct wanting to take care of there home and family while the father protects and brings home the bacon. It is in our genes. Unfortunately, since the welfare state that started in the 1960's the liberals have pushed the father out of the family and replace him with the government as the money maker and protector (in some cases this was needed, but it has now become a way of life to not marry and have kids expecting the rest of society to pay for everything.) Women also have the most to gain by becoming financial conservatives.
Financially conservative homes are generally happier and have less money problems. Getting rid of mom’s job and that second car payment allows her to spend more time with the children. I know this makes the kids happy.
If you are going to be a Financial Black Belt you must become financially conservative. Banks and the government love for families to be financially liberal because they tend to spend more, they tend to pay more in taxes or benefit from big government spending, and they tend to be more accepting of a big and wasteful liberal government. Realizing you are in a fight is the first step to winning.

​Chicken truck fire.
I was a paramedic back in the 80’s. We got dispatched to a traffic accident way out in the county. It was the middle of the night, very dark, and out in the middle of nowhere. We arrived before the fire truck to find an 18 wheeler on fire. It had a flatbed trailer stacked up with chicken crates that had live chickens in them. Each crate held about one hundred chickens and there were hundreds of crates on this trailer. There were injured and dead chickens everywhere as a lot of the crates were thrown and broken open during the wreck. The truck was intact with the cab completely engulfed in flames, and the driver still in his seat burning. The fire was about one third of the way down the trailer. Burning chickens squawked as the huge fire slowly moved down the trailer. I walked down the road, and I found pieces of a Chevy Chevette. The mangled body of a local college student was spread about the side of the road. The car body, engine and transmission were in three different places. As I looked for survivors I came across a truck placard that said ‘explosives’. I instinctively ran as fast as I could away from the wreck. I eventually got my wits about me, and I realized I was running away from my partners Afonso and Richard (night-rider). I did not have a radio with me to call to warn them, so I crossed the road and ran back. Our fire truck had arrived, and I found Afonso and Richard helping Buzzy fight the fire. We eventually put out the fire and found an explosives truck wedged under the chicken truck with the driver burned down to ashes. It turned out he did not have any explosives in the truck. It is really eerie at some of these crash sites when you are out in the middle of nowhere, it is very dark, and everyone is dead. The families are completely unaware that their lives have completely changed. As a parent with my daughter in college, remembering this type of call makes me cringe. Your world can change in an instant.

BROWN BELT- 3RD DEGREE

​‘WARNING-Debt May be Hazardous to Your Health’
Debt related stress sends many Americans to an early grave. All loans should include a label stating: WARNING: Debt may be hazardous to your health. Being in the medical field I see this all the time. Chronic stress can cause high blood pressure. This can lead to heart disease, strokes, and kidney failure. Chronic anxiety issues can cause mental and physical breakdowns. Stress is a normal defense mechanism designed to keep us safe. If a bear is chasing you, it is stress that increases your heart rate and breathing. It dilates your pupils so you can see better. Stress releases adrenaline so you can fight stronger and run faster. These are meant as temporary changes in body functions. You either get away from the bear or it eats you.
Your body is not designed to be under stress all the time. It is like running your car engine at full throttle. Before long something in your engine would give out and break. The same thing happens with your body. Chronic money problems cause chronic stress problems, and money problems are usually related to debt (at least in the working population). Debt keeps us at jobs we don't want. Working for someone we may not like. Working in conditions we may not want. It keeps us working extra hours or working a second job. To make things worse, the more money we make the more taxes we have to pay (as opposed to the lazy ones on the government dole that get more money for doing less).
‘Debt guarantees you a steady diet of eating shit’. Can you go to work today and tell your boss to ‘go to hell?’ My guess is probably not. Why? You can't lose your job. Why? You have too much debt. Debt keeps you working to pay taxes to the government and loans to the banks. The government and banks want to keep it that way. If you had no debt and were financially secure, would you be working at your current job? Would you be working for your current boss? Would you be working the amount of hours you currently work? My guess is probably not. The key to living well is to get debt free and financially secure.
Most of us are too busy working to even know what is going on. Stress at work causes stress at home which leads to family problems. With both parents working and still up to their eyeballs in debt, financial problems are the leading cause of divorce these days.
Having been in both the medical field and a lot of financial debt for over thirty years, I can tell you what I have learned from personal experience. Financial health comes from being debt free and in control of your own wealth. Mental health comes from being free of debt related stress that complicates your life. Physical health comes from doing everything you can to reduce stress related diseases. Work in a healthy job. Work healthy hours. Live in a healthy environment. You need a healthy mind and health body to become a Financial Black Belt.

BROWN BELT- 2ND DEGREE

‘Stop Playing Black Jack at the Poker Table’
The next time you watch TV, put on MTV and watch ‘Cribs’ for awhile. ‘Cribs’ is a show about entertainers that live these elaborate lives in their huge mansions. Most of the few times I have watched the show, I usually end up thinking that if these jokers deserve a good life, then so do the working people. These people make a lot of money because the free market works. I would not deny them any of their wealth, but wealth is subjective.
Most Americans can live nicely on a small amount of money if their bills are under control. The main objective is to become debt free and financially secure. Live healthy. Live off of investment income. Spend time with friends and family. Enjoy your life. That is the definition of wealth at Financial Black Belt.
You need to learn to use the rules and laws to benefit you. The banks and government made the rules and laws without you at the bargaining table. Use them to your advantage. The government and banks have you in a fighting ring blindfolded, your feet tied together, and both hands tied behind your back. You will always loose the battle until you break the chains of debt and taxes and start fighting back.
Take the gloves off and start fighting dirty. Go for the knees, nuts and eyes. This is how I was taught to fight a real fight. You can practice all the different fancy hand and foot techniques you want, but in a real fight its knees, nuts, and eyes.
Stop playing black jack at the poker table. Quit the game, you can’t win. This is the truth. You can’t change that fact. You can argue, spit, curse, kick, scream, holler, tear the page out and through it in the trash—it does not change the truth. The game is poker. If you don’t figure that out you will continue to lose. Use your vote to change the game back to black jack.
Do everything you can to shine a spotlight on liberal ideas because common sense and facts are a liberals worst enemy.
A family of four earning fifty to one hundred fifty thousand dollars a year is screwed. The poor are taken care of by the government, and the rich can take care of themselves. The middle class gets screwed. The game is rigged, and you are the sucker. The 51% sitting in the wagon will always keep voting the same 49% outside to keep pulling the wagon.
Fair fights are for losers. Never fight a fair fight. Walk away. Your objective is to win. Only fight when you have an unfair advantage. Use the rules and laws to benefit you. Up to your eyeballs in debt? Bring you income down and file Chapter 7 Bankruptcy (it is not that hard, I have done it). Paying too much income tax? Reduce your income level. Are payments and insurance on two cars breaking you? Get rid of one. Have mom quit her job. Max out your retirement account and start investing using the techniques taught in our Black Belt Training program. Start a low overhead home based business that you can run from anywhere. Get yourself into a cash position, and stay there. Use your money to make money.
Start a Family Limited Partnership, and use it to your advantage. Google: ‘Ted Tesser tax treatment of commodity futures and options’, and read the Triple Crown Strategy. A Family Limited Partnership is one of the best ways to control and increase your family’s wealth. This is how you fight back. Make the deck stacked in your favor. Only fight when you have an unfair advantage.
Conservatives keep thinking if they just work harder and vote republican that eventually they will win. They will never win because they keep trying to play black jack at the poker table. Don’t let your conservative moral values blind you. Stop falling on your sword. Remove the sword from your chest and use it to slay leftist ideology.
Warren Buffet was recently in the news talking about the wealthy not paying their fair share of taxes. I heard he used the example that he pays a lower amount or percent in income taxes than his secretary. Reflex thinking compels you to agree with him, but you need to start thinking critically.
I don’t know the details but it could go like this; Warren Buffet may claim very little income to pay income taxes on. He might however pay capital gains taxes which is currently 19% (President Obama is trying very hard to increase capital gains taxes). His secretary might be paid a salary well into the six figures; therefore she would have a final income tax assessment of about 39% (just like Warren Buffet and any other American would have if claiming the same amount of earned income).
There is a big difference in income tax versus capital gains taxes. If Warren Buffet’s secretary has investments, she will also have a capital gains tax of 19% (just like Warren Buffet and anyone else). If Warren Buffet uses the tax laws to keep his income tax liability low, that is just playing by the rules.
It is wrong to compare income taxes to capital gains taxes. Capital gains taxes are lower because of the risks involved with investing money. Income is riskless; investments are not.

BROWN BELT- FIRST DEGREE

‘Wall Street Dead Ends at 1600 Pennsylvania Ave’
Wall Street bankers and big business owners are liberals if it benefits their bottom line, and there is no fatter pig to gore than the Federal Government. When a large political donor is involved in monetary shenanigans, Washington D.C. is there to bail them out. When Goldman Sachs and Citigroup were about to fail, their buddies in Washington D.C. stepped in.
The amount of corruption and greed may never be truly known, but the consequences of the whole mess will be dumped onto the American taxpayer as inflation, also called 'quantitative easing'. The worst part is that the disease was never removed. It continues today. Bad financially liberal policies and crony capitalism created greed in the banking industry, and when that greed got out of control the consequences came back to working Americans in the form of higher taxes and inflation.
The final cinch in this whole debt as money scheme is the bond market. Huge exchanges on Wall Street and around the world trading billions of dollars in Treasury bonds daily which legitimizes the whole debt as money scheme.
We are all invested in the bond market through IRA’s, 401k’s, and mutual funds. Being a United States citizen and using the U.S dollar to exchange goods and services helps to keep the whole thing orthodox.
I have heard that former Vice President Al Gore is trying to legitimize global warming (now called climate change) by having a carbon tax and starting a Carbon Exchange in Chicago similar to the bond market exchanges. If this is true and he and his cronies are allowed to start such a scheme it would never stop.
His scheme would continue to grow indefinitely just like the bond market has allowed Federal Government spending to grow out of control. The truth is that we all want clean air and water. The notion that we don’t buy into Al Gore’s carbon exchange scam to make him and his buddies rich does not change this fact.
The Federal Government supports the idea of debt. Our Federal debt has been in the news a lot recently and everyone should take notice. Our national debt will soon be over 17 trillion. When Pat and I started writing this book several years ago our national debt was well less than 10 trillion dollars.
This does not even include the over 100 trillion dollars of unfunded liabilities the Federal Government has from entitlement programs. Sometimes it is hard to get your hands around the idea of a number as large as 1 trillion, but let’s give it a try. If you spent one dollar every second, it would take you 17 minutes to spend a thousand dollars. To spend 1 million dollars it would take you 12 days. A billion dollars would take you over 32 years, and it would take you almost 33,000 years to spend a trillion dollars.
Think about that the next time you hear the liberal politicians in Washington D.C. wanting to give more of your hard earned money to their constituents to buy votes for their next election. Whenever you take money from group A and give it to group B, you will always have the support of group B. This is why Government must have very limited powers with moral people running it.
Wall Street loves the American public to be invested in stocks and bonds. It keeps everyone in the same boat. Everyone makes money when the market is going up. Even more important is everyone loses money when the market goes down. If you are losing money in the stock market, you will usually tolerate and accept it if everyone else is losing money. Keeping everyone in the same boat keeps Wall Street always having a life boat called the American taxpayer.
When Wall Street corruption gets out of hand, like the housing loan market did when a major brokerage house on Wall Street failed, the Federal Government is ready to step in. The Federal Government gave them a bail out, and shifted the consequences of Wall Street’s bad behavior to the taxpayers through monetary inflation. Of course it was the bad behavior of liberal politicians that caused the home loan problems in the first place.

​The Definition of Crazy.
I was working in a trauma center just standing around next to the report radio when a call came in from EMS. I answered back and they informed me they were called to a residence for a combative person who had pulled his eye out. They were waiting a few houses down for the police to arrive. They could see the patient on the porch with a large butcher knife in his hand. Others that were listening and I kind of laughed that it was probable a fake eye he had pulled out and that this was going to be nothing. A few minutes later our relaxed tone quickly changed as EMS called back telling us the police had arrived, and the patient stabbed himself in the chest three times. The paramedics were bringing him to our emergency room and were arriving shortly. On the trauma team that day I was the working nurse (meaning I took care of the patient) while the recording nurse documented and coordinated events with surgery and other departments. The patient arrived in trauma room B dripping with sweat, blue in color, and sitting straight up holding onto the stretcher rails having obvious extreme difficulty breathing. X-ray was already there and had placed an x-ray plate on the hospital gurney to get a chest x-ray right after we moved the patient from the EMS stretcher. As we moved the patient onto the gurney I quickly assessed the patient’s airway which was intact and listened to the lung sounds on his back which were very much diminished on his left side with three stab wounds to his left chest. Lab was already at the patient’s right arm trying to draw blood with a needle on a large syringe. The tech yelled ‘x-ray’ and we all stepped away from the gurney. The patient quickly grabbed the needled syringe from the lab girl as she was stepping back, and he started swinging the syringe back and forth at the staff like a knife. The whole team quickly tried to calm the patient. Within a few seconds this guy, who was still blue and dripping sweat, was standing on the gurney. The trauma room is very large with huge doors that unfortunately open inward and there is no way to close them because of all the equipment in the room. The patient was now looking at how to get off of gurney while still waving the syringe at the staff. We all started grabbing equipment while yelling at the patient to sit back down on the gurney. I looked down the hall as the paramedics were walking with their stretcher away from the trauma room. I hollered at them to bring the stretcher back to help us block the patient in the trauma room. I had grabbed a large rolling pole with medical equipment on it. Another nurse grabbed a wheelchair, and someone else grabbed a code cart. By now the paramedics were back, and we were all trying to set up a barricade to keep the patient in the trauma room. I looked back down the long hallway and saw a police officer walking our way. I yelled for him to come and help, and as I turned back the patient had gotten off of the gurney and was now trying to get out of the trauma room. This patient, who barely had the energy to stand, suddenly became a wild man. The paramedics had already thrown him back into the room a couple of times as he was trying to get over their stretcher when the police officer arrived. Looking into Trauma B, I was on the right side just outside the door, another nurse and staff member were on the left side with the wheelchair and crash cart, and EMS was in the middle with their stretcher sideways moving it from side to side to cut off any escape route. As the patient tried to come out EMS would block him. As the patient tried to crawl over their stretcher the paramedics would throw him back in the room. The police officer came up behind me, and when the patient saw the officer he bolted over the stretcher coming right at the officer swinging the needled syringe at him. The officer quickly turned and ran a few steps down the hall. My eyes where completely focused on the patient, and I was backing up going down the hall keeping the equipment pole between me and this crazy man. The policeman that turned and ran down the hall was not trying to get away and I knew exactly what he was doing as I had seen it done before. The officer being quickly surprised by the patient turned and ran a few steps as fast as he could while drawing his gun then quickly turned back around to reassess the situation with his gun pointed at the patient. I knew the patient would have to be shot to stop him, and I quickly calculated the angle of fire in my head and figured out I was in the wrong place. Trauma room C was right next to B and it is identical. I was crouching down right outside of trauma room C when the patient passed me heading straight for the officer. I knew at that moment I was going to get shot, and I just squatted down as low as I could get while still keeping the large pole between me and the patient. I was fortunate because the police officer was keenly aware of the surroundings and instead of going straight down the hall like I had thought, he went into trauma C so he would not be shooting toward the hospital staff. I heard ‘boom-boom’ as the patient ran by me, and he instantly dropped. Standing back up I was breathing in heavy gunpowder smoke, and I quickly realized I was not hit. I stood over the patient who was now lying balled up on the floor moaning. Within a few seconds we grabbed the patient and dragged him into trauma C. We started working on the patient who now had the three original stab wounds and two new gunshot wounds. We quickly got him to surgery, and the surgeons eventually saved his life. As the patient went to the operating room I started walking back to the emergency department with my coworkers. I remember saying ‘as crazy as this guy is he probable did pull his eye out’. Come to find out the patient was high on PCP and speed. He had gone to a friend’s house clawing at sores on his face that had developed over years of doing methamphetamine. He actually clawed and pulled his own eye out. The muscles and nerves attached to his eyeball caused him to think he had worms coming out of his face so he got a butcher knife and cut his eyeball out. This was truly one of the strangest things I have ever seen.

BLACK BELT

'The Right Vehicle'
You can’t get to the moon on a moped. You have to be in the right vehicle to get you from where you are now to where you want to be. Don’t waste time in the wrong vehicle. The vehicle does not need to be fun, glamorous, or exciting. You can do those in your personal life. You need to map out where you are now and where you want to be. Focus on goals, and set dates. Financial Black Belt is the right vehicle. Use it as your guide.
Financial Black Belt uses the free market as the right vehicle. In particular we use the futures market. To be even more specific, we use the futures and commodity derivatives market. The Black Belt training will teach you how to use the derivatives market to help you become debt free and financially secure.
The futures derivatives market is very complicated, and it is my job to teach you the information you will need to know. I have broken it down into single ideas that you must understand. At the end you will be able to put all the information together and use it to start producing wealth. Your Black Belt training starts now.
THE MARKET IS EFFICIENT
The futures market is efficient. It brings together buyers and seller to find agreed upon pricing for goods. Farmers, ranchers, and CEOs of airline companies all share a desire to control the risk in doing business associated with unknown future prices. The farmer needs to know how much he can sell his corn for at the end of harvest before he even plants the seeds. The rancher needs to know how much he can sell his pigs for even before they are born. The CEO of an airline company needs to know how much he will pay for fuel six months from now.
The futures and derivatives market allows each to lock in prices to reduce risk. Most Americans use insurance policies to reduce the risk of financial loss from a house fire, a flood, or even a loved one’s death. By knowing future prices risk can be controlled and prices locked in or losses limited. This is not to say that everyone wins in the futures and derivatives markets.
THE MARKET IS UNPREDICTABLE AND CHAOTIC
The market is unpredictable. In the short run the market is unpredictable. In the long run the market goes up, but most of us don’t have the time to make this one work. If you have ten thousand dollars and 100 years to invest it, putting it into a good index fund will give you a good return (although it may not keep up with inflation).
The market is what you might call a random walk. As a matter of fact there was a book written called ‘A Random Walk Down Wall Street’. Author Burton Gordon Malkiel, a Princeton economist, argued that asset prices typically exhibit signs of a random walk and that one cannot consistently outperform market averages. While this reflects the stock market, the futures market does tend to be easier to read, if you know the language.
The market is chaotic. No one really knows which way the market is going to go in the short run. In the long run the market tends to go up because of inflation and new money coming into the market that can only go long in the market.
THE REGULATORS
There is a big difference between equities and futures contracts. Equities are stocks and bonds traded on exchanges regulated by the Securities and Exchange Commission or SEC. We stay away from stocks and equities because they are very emotionally driven. Derivatives on equities are also traded and governed by the SEC.
Futures and commodity contracts are traded on exchanges that are regulated by the Commodity Futures Trading Commission or CFTC. The CFTC also regulates options and derivatives related to futures and commodity contracts. CFTC margin requirements are much more favorable on commodities than stocks or index funds traded under SEC rules.
OPTION DERIVATIVES
A derivative is an option contract that is based off of a futures or commodity contract. It can also be associated with equities and traded in the equities options market. Do to the favorable treatment of margin requirement of the CFTC, we are only concerned with options on futures and commodities contracts traded under CFTC rules.
LONG VS SHORT
Long the market means you own the product or otherwise benefit from a price increase. If you own a farm and sell corn you grow to customers, you are long the corn market. If the price you receive for your corn goes up you make more money, and if the price goes down you make less money. If you own XYZ stock you are long that stock. If the price goes up you benefit. Again, if the price goes down you lose money. Basically, sellers and owners are long a market, whatever that market may be.
Short the market is the exact opposite. Consumers are short the market and benefit when prices go down. If the price of corn goes up we lose money, and if the price goes down we save money. We are all basically short the market in our daily lives. Consumers can be everyday persons like you and me or they can be large multi-million dollar corporations.
If a large company sells a product, it is long that product and benefits when the price of that product increases. If a product is needed by a large company, the company is short that product. A good example for understanding long and short markets is to think of the relationships between an oil company, an oil refinery, and an airline company.
The oil company sells crude oil to the oil refinery so the oil company is long the crude oil market. An oil refinery needs oil and it produces jet fuel, therefore the oil refinery is short the crude oil market and long the jet fuel market. The oil refinery benefits when the price of crude oil goes down or the price of jet fuel goes up. It needs and uses crude oil so it is short the crude oil market. It produces and sells jet fuel so it is long the jet fuel market. The airline company needs jet fuel to operate so it is short the jet fuel market. Understanding long and short is very important, and you may want to go over this section again and draw the example out on a piece of paper.
ANALYSIS
There are two schools of analysis in the futures pricing game. The first is fundamental analysis. Fundamental analysis price prediction involves looking at supply and demand numbers, seasonality forces, and environmental and political issue that might affect future prices. The second is technical analysis. This involves looking at past price movement to predict future prices. Patterns in price movement including price trend, contract volumes, and indicators that show how fast prices are moving are the key tools used by the technical trader. Both schools have their strengths and weaknesses. The main problem with both of these schools of thought is information overload. There is so much information out there that you can come up with a good reason to go long or short the same product at the same time. Knowing which information to follow is the key.
HEDGERS VS SPECULATORS
There are two main players in the futures market: Hedgers and speculators. Hedgers are persons and commercials that actually use or produce the goods being traded, and they need to lock in prices for risk control due to uncertainty in the market. These include farmers selling corn, wheat, or soybeans, dentists locking in the future price of silver they use in fillings, and ranchers that need to sell cattle or pigs. These same ranchers also need to buy corn for feed; therefore they can be long cattle and short corn. They are long cattle because they own or produce cattle and benefit from a price increase in cattle, and they are short corn because they have to buy corn to feed their cattle and they benefit from a price decrease in corn. Locking in prices is the only way to control the risks involved in their business.
Large corporations have to control their risks, and they use the futures and derivatives markets to lock in prices. Banks use futures and options to hedge risk in the currency and interest rate markets. The exchange rates of currencies can fluctuate greatly over time, and hedging allows for the control of risks involved. The main theme in all hedgers is that they actually have skin in the game. They are actually involved in the trade or use of the products involved.
Speculators are in the market to make money on the price movements in the market. Their main role is to provide liquidity to the markets. The more participants in the market, the easier it is to move in or out of the market. Speculators have only one motive in the futures and options markets; profit. Speculators are willing to take on some of the risks involved in the market for the potential to make money. Speculators try to make a profit and bring liquidity to the markets. Anything that increases volume can help find true pricing in the market. It can also increase volatility. A problem can occur when speculators are on only one side of the market and are in control of that market. Commercial traders are usually the big dogs, and they usually control the overall direction of the market. Large numbers of long speculators in the gold and fuels markets have recently driven their prices up (a long rally) only to be followed by a fast and hard drop in prices (a long reaction).
THE COMMODITY FUTURES TRADING COMMISSION
The futures and derivatives market is regulated. The CFTC regulates the exchanges and the exchanges guarantee all outstanding positions. Even if a trader or broker was unable to fulfill his obligations, the exchange has taken on all positions and would fulfill the broker’s obligations. All contracts are standardized, and for every buyer there is a seller. Some have commented that futures and options trading is a zero sum game. For every winner there is a loser. This is true, but since a lot of the players involved are hedgers, it is really a win-win situation. Even if a speculator loses money, he has a chance to learn from his mistake and turn his monetary loss into a learning gain.
WHAT HAPPENS TO FUTURES CONTRACTS?
The majority of futures contracts are offset and not filled. For example a large trucking firm buys (goes long) a gasoline 10,000 gallon futures contract to hedge future fuel cost. Fuel is currently 3 dollars a gallon. His futures contract gives him the right to buy 10,000 gallons of gasoline for 3 dollars a gallon in 6 months. In 6 months gasoline costs 4 dollars a gallon. The trucking company might not be able to take delivery of 10,000 gallons of gasoline at 3 dollars a gallon. The trucking company instead might buy gasoline on the spot market for 4 dollars a gallon and then sells back the futures contract earning 1 dollar a gallon profit on the futures contract. This makes his overall cost of gas 3 dollars a gallon. The exchange is not always perfect. The trucking company may have to buy gas on the spot market for $4.10 a gallon. The difference is called a basis risk. Basis is the difference between the price of a product on the spot market vs the futures market. There is no perfect hedge, but futures allow a company to reduce risk to a point of acceptable tolerance.
There are also companies that buy or sell products that are not on listed exchanges. For example there is not a futures contract for goat meat. A goat rancher could see how goat prices correlate with pig or cattle prices. If the goat meat prices followed the pig futures prices better than the cattle futures prices, the goat rancher could use the pig futures market to cross hedge his positions and reduce risk. It is not a perfect hedge, but it is a close as he can get.
FUTURES PRICES
Futures prices are usually higher than spot prices due to cost of carry and insurance risk. This is called contango. Supply and demand forces, transportation cost changes, and even weather or political concerns can change the market to where current spot market prices are more than futures prices. A large commercial user of corn may need supply right now and drive up spot market prices higher than futures prices. This situation is called backwardation, and this is usually a temporary situation. You must always be keenly aware of which futures contract month your options are trading on. When a futures contract expires, options on the next month’s futures contract can become very volatile.
YOUR MONEY AND BROKERS
Brokers are selling a product. They always win by getting a commission. Don’t get me wrong, a broker wants you make money and stay in the game, but you are ultimately responsible for winning or losing. Your broker will always get his money. This is why we use deep discount online trading brokers that give no advice. We don’t want their advice. You must be informed and make your own decisions; Wrong or right. It is your money on the line. Just because they are a broker does not mean they know more than you do. It is like a car salesman giving you advice on engine repair. He is probably good at selling them but may not know how they really work.
Information can be anywhere from priceless to worthless, and you never find out until the game is over. Make sure you have no one else to blame but yourself for any mistake or drawdown. Always learn from a mistake and then move on. There are no gurus, only opinions. Always know why you are going into a trade or stay out.
THE SPOT MARKET
Products bought right now are traded on what is called ‘the spot market’, and products to be traded in the future are traded on the futures market. A futures contract is a legal contract on a product which is traded on an exchange. The contract spells out the amount of product, quality of the product, dates involved and responsibilities of the parties in the contract. When you go long (buy) the contract you benefit when the price of the product increases. When you go short (sell) the contract you benefit when the price of the product decreases.
STOCKS: MARKET LONG VS MARKET SHORT
Market long vs market short in the stock and mutual fund markets. If you buy a stock or mutual fund you are long the market. If the market goes up your position improves, and if the market goes down your position worsens. You buy Exxon stock, if the price of the stock goes up you make money, and if the price goes down you lose money. Going short the market is the exact opposite. If you are short the market and the price goes up, you lose money. When the price goes down you make money.
It is sometimes difficult to understand being short an investment because we are programmed to invest in things that go up in value. You open a position by buying a stock, and the price goes up. You close that position by selling the stock, and you make money. That transaction makes since to most of us. What you need to understand is that in the investment world you can open a position by selling something at a high price first and then buy it back at a lower price to complete the transaction. It is a concept that is foreign to most of us.
Most mutual funds must follow a long only investment plan. This means they can only buy investments (go long), and then later sell them at a higher price to make money. This rule helps to support the idea of increasing the overall value of the market, and is basically a good idea. When the DOW or S&P 500 go up it is good for our economy and our countries overall wealth increases. Rules set by the SEC try to keep our investments going in the same direction as our economy and our country—forward. Hedge funds can follow different rules and actually short the market. They can use their funds to bet on the market getting worse. Instead of opening a position by buying low then selling high, they sell high (go short) then close the position by buying low. It is a concept you will need to understand. Selling something you don’t own is contrarian to our normal way of thinking. There is also more risk involved, and therefore not suitable to most investors. So to clarify, when you open a position by buying a stock (going long) you are long the market, and your investment goes up when the market goes up. When you open a position by selling a stock (going short) you are short the market, and your investment improves as the market goes down. Being long the market you are betting the market will go up, and being short the market you are betting the market will go down.
FUTURES: MARKET LONG VS MARKET SHORT
Market long vs market short in the futures market. The futures market is a little different. As price moves up or down contracts are generated when a person who is betting the price will go up (the buyer or the long) is connected to a person who is betting the price will go down (the seller or the short). A contract is generated at the agreed upon price and both parties put up money on the bet called margin. Margin is a percent of the value of the contract. For instance a gold contract of 100 troy ounces trading at $1000 dollars/ounce has a value of $100,000 dollars. The margin each person has to put up is a percent of that value. If the margin on gold futures is 20%, each person has to put up a $20,000 dollar margin to be able to enter into the futures contract. The reward for this is that the leverage on a 20% margin contract is 5:1. So if you are long the contract and the price goes up $1 dollar, your account will go up 5 dollars. Of course leverage is a double edged sword. It can work against you the same way. If you are short the contract and the market goes up $1 dollar, your account loses $5 dollars.
For every winner there is a loser. Some call this a zero sum game, and if only speculators were in the market this would be true. Remember the futures market is a big risk pool for commercial users where they can offset the risks involved in their business. Many futures contracts are traded by commercial hedgers trying to offset risk. A corn farmer can plant his corn and make money as the price of corn goes up. He can also hedge his corn business by shorting a corn futures contract. While this locks in a maximum price he can eventually sell his corn thereby limiting his profit, it also guarantees him a set minimum price if the market goes down. The money he loses on the price of his corn going down he makes up for by being short a corn futures contract. The other side of the coin is as the price of corn goes up his profits are limited because his short corn futures contract loses money as corn prices increase. It is a trade off for the farmer to limit his profit by limiting his downside risk. Margins are much lower for commercial hedgers in the futures market because they already have a large investment in the market.
TYPES OF TRADING
There are many types of trading. There is long, short, spreads, straddles, synthetics, front spreads, back spreads, ratio spreads, credit and debit spreads, and many more. It is easy to get overwhelmed with the amount of information out there especially if this is new to you. Let someone else come up with the plan.
I have looked at almost every type of trading out there and my trading system is the most conservative plan with the best edge out there. Start small. Follow my plan. Learn from any mistakes.

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