How Private Industry Can Lead the Way Out of State-generated Chaos

by James Jaeger

The unbelievably touchy issues that are taking place in Israel boil down to Middle Eastern oil, but there is a larger message for private industry.

The Israelis -- who would quickly be flooded out of existence without U.S. support -- are understandably concerned about anything that compromises their ability to negotiate security measures. Unfortunately, Obama delivered a speech last week that was perceived by Israeli leaders as seriously undermining some of their negotiating points: land-concessions for certain security options. So today, predictably, Obama was before AIPAC to explain why in the world he "disclosed" the "open secret" of the 1967 border without express permission from Israeli brass.

Obama gingerly explained that changes were happening in the Middle East (ME) so quickly, the Israelis and Palestinians better get their act together or they may never get the CHANCE to get their act together. Due to the Internet Revolution, youth all over the ME are revolting against dictators, oppression and the endless wars. If Israel and Palestine can't set a good example and end their "endless war" -- especially after 50 years of negotiating and beating around the bush with "open secrets" -- they will never do it. This could invite a massive flood of potentially 1.2 billion Arabs into the "Jewish state" of a mere 7 million.

One can see why Israel is legitimately concerned about their security and the help their big brother -- the U.S. -- provides.

But the reason this conflict persists is because there are factors that are omitted or altered in importance. In this case the major factor is Saudi Arabia and the importance of its oil reserves. This fact is usually omitted or undervalued by the power elite and their mainstream media. And the reason for this is because 25% of the world's proven oil comes from the Middle East. Each of the 4 Middle East countries that have significant oil production (Saudi Arabia, Iraq, Kuwait and UAE) have only 4 to 6 major oil fields, not hundreds. Saudi Arabia is the largest producer. Collectively the 14 largest oil fields in Saudi Arabia produce 20% of the world's daily supply of oil. Saudi Arabia has about 5 to 7 fields that produce 90% of all its oil, Ghawar being the largest and producing 65% of this 90%. These fields are an average of 54 years old and, despite intense exploration efforts in Saudi Arabia, as well as the entire Middle East, it has been decades since any new significant oil fields have been discovered. If Ghawar were to lose reservoir pressure tomorrow -- and it could because NO ONE knows how much oil it has due to intense secrecy -- 65% of 90% of Saudi Arabia's oil production would start down VERY sharply. No one can replace Saudi Arabia's spare production capacity, thus if Saudi Arabia were to peak, for all practical purposes, THE WORLD WOULD HAVE PEAKED! Since Saudi Arabia produces 20% of the world's oil, a loss of Ghawar alone would suddenly be a reduction of almost 10% of the world's oil supply, over night.(1)

Given the U.S. uses about 25% of the world's energy, the other "open secret" is the fact that the U.S. dominates Saudi Arabia, overtly or covertly, directly or indirectly, for its oil. Without Middle East oil, in particular Saudi oil, the U.S. could not survive as a superpower because it could not project military power around the world, especially into the Middle East for the protection of Israel. Unfortunately -- due to puerile conflicts built upon religious superstitions and ancient memes -- the Arab world disdains Israel and, by extension, the U.S. because it is protecting Israel by means of the very oil it is extracting from the Arab state of Saudi Arabia. Indeed, one of the major reasons a Saudi Arabian citizen named, Osama bin Laden, said he attacked the U.S. on September 11th, 2011 was because the U.S. had its tanks all over religious holy lands in Saudi Arabia to protect oil fields.

U.S. puppet governments in the ME -- such as Saudi Arabia and the former Egyptian government -- see this oil as their ticket to retaining power, but the people see this oil as theft of their vital resources, resources they need for independence and growth. In short, the people resent the fact that U.S.-supported dictators sell their oil to the West for the very tear gas used against them in their Freedom Rallies.


A solution to these problems might be for private industry, and the private capital markets, to reject the insanity of governments by developing an alternative liquid fuel to replace Middle Eastern oil.

If private industry truly wants big government off its back, then industry should stop partnering and propitiating to governments. It should stop attempting to sell its products to the U.S. military and the governments of the world. Industry itself should "go Indy" and have its own Freedom Movement. It should denounce government subsidies, special privileges and tax breaks (and the inevitable regulations and entanglements that come with them) as prices too high to pay for "stockholder value." Much greater stockholder value can come from selling to PEOPLE, not GOVERNMENTS. There are over 6.9 billion PEOPLE on the planet, whereas there are only 193 GOVERNMENTS.

Right now, global industry, especially U.S. industry, is configured for three misguided practices: 1) consumerism, 2) war, and 3) debt. Consumerism is the opposite of production, a nation of people that make little or nothing but endlessly consume (often using debt to do so). Such a nation is "living off the fat of the land" -- their past production, the production of their parents and grandparents. War is just another form of consumerism, governments consuming the output of society by taxing and then destroying it. But both consumerism and war are facilitated by debt, an industry itself that operates upon counter-productive principles -- fractional reserve banking and fiat currency -- for unjust enrichment.(2)

To remedy these negative practices, global private industry, starting with U.S. private industry, should be dedicated to three far more prudent practices: 1) production, 2) peace, and 3) capital formation. Instead of the world minimizing or destroying itself over frivolous excess, blood and debt service -- products of government involvement -- it should encourage its industries, and free markets, to out-compete the statist vision of the so-called, Liberal World Order, with a vision of unlimited expansion made possible by production, peace and capital formation. And private industry CAN deliver production, peace and capital formation without governments or banking cartels.

In order to accomplish this, private industry needs to STOP looking at short-term profits it can make off of government transactions and START looking at the virtually unlimited profits it can make by servicing the potential 6.9 billion people of the world directly. Selling to, and partnering with, governments may seem like a short-cut to profits, but in the long-term such lead to the insanity of politics, commercial regulation, foreign entanglements, destructive wars, and higher corporate taxes to pay for more invasive government to "protect" us from it all. Also, the bigger a government gets, the more it competes for capital. This places private business at a disadvantage. Even the businesses that are partnered with the state must compete with the government for more capital as both grow. The government, on the other hand, can not only out-compete for available capital, but tax and monetize debt into fiat currency. This expansion of the currency then causes price inflation and drives the "cost-of-goods-sold" up, and business margins down.


It is therefore foolish for business leaders to take this road when so many possibilities for non-zero sum games exist by remaining free from government transactions. Stay away from business associates with guns.


As an example, there is potentially far more profit in selling a 50-cent toothbrush to 6.9 billion people than in selling a $1.5 million tomahawk missile to 193 governments. If you don't buy this, consider how many other personal, domestic and industrial products there are under human manufacture. There are literally millions, and most will buy a second toothbrush before they will buy a second tomahawk missile.

When certain businesses listen to the snake and eat the apple -- partner with government in exchange for immediate sales and/or special favors -- you can bet it's only a matter of time before these businesses will take your market share. THEN you are OUT of business, for the business that partners with big government will have advantages over you. It will have access to fiat currency and endless below-market loans created by the Federal Reserve System: the granddaddy of all businesses that partnered with government.

In the aggregate, all private industries will grow and prosper to the degree they shut the door on doing business with governments AND by doing business with companies that continue to do business with governments. Shun the business who comes to YOUR business meeting with a "partner" who has guns hanging from their hips.

Businesses and industries that won't disconnect from government partnerships and special favors should be shunned by all other businesses and industries. No big announcement needed. Just don't supply them or do business with them. Quietly cross them off your prospect lists and/or slowly attenuate them from your client roster by raising your prices to super high levels. The windfall profits you may experience for a while may more than offset the loss of a government-subsidized client. BUT if you fail to take action, you may be out of business before you CAN take action. So do it before a government-privileged business becomes the next Halliburton, Walmart, Exxon-Mobil or AOL-Time-Warner and eats your market-share.

The most effective time to disconnect is when you see tell-tale signs of ANY of your competitors selling-out to government in ANY way. When you see them getting loans at below market rates, this is a tell-tale sign. When you see them getting special tax deductions or credits, this is a tell-tale sign. When you see them getting subsidies, this is a tell-tale sign. When you see them in any way expanding or consolidating by means of any other method than true and fair market competition, this is a tell-tale sign. Stop doing business with that traitor-company. Stop supplying them with that bolt, wing-nut or widget they need to complete their product. Cut off any an all patronage to them. For Gods sake don't BUY anything from them or lend them any money. Just quietly disconnect from them and encourage all your honest (money) business associates to do the same. Also, move your business to private banks and shun Fed-member banks.


Have you ever wondered why the government rarely enforces the Sherman anti-trust laws on the books? It's for the above reasons. The government does NOT want to litigate over business that are "too big to fail" because it is the government that CREATES businesses that are "too big to fail."


And while governments are working at home to expand the state with Benedict Arnold-CEOs, they are working in the international realm as well. In the international realm the name of the game is war-profits. Any way a government can cause or expand a war, it will be in a position to expand its own power, jurisdiction and the profits of the companies that have sold out to it. These are the modern-day spoils of war. The U.S. vassal states are held not through direct subjugation, as in the Roman Empire, but through the U.S. Empire's floating reserve currency that allows it to monetize endless money to lend to and encumber countries through the rape-prone policies of the IMF.

The Arab-Israeli War is a perfect example of a very successful war that has been going on for over a half century -- generating profits and spawning additional profit-center wars all over the world, including the war on terror after 9-11. Although the parameters of each war are designed differently, all of them come down to rationale, bank financing and weapons manufacturing. Again, the sell-out companies that partner with governments are rewarded for their treason through participation in the spoils of war, directly or indirectly. When a government purchases missiles from the military-industrial-banking complex there is great profit to be made by a Halliburton. After the destruction caused by such missiles is done, there is again great profit to be made by a Halliburton in rebuilding the country.(3) George Bush's Iraq is a perfect example. Every private company that stoops to do business with the Halliburton's of the world cuts their own throat, and the throats of all other private companies, because unfair competition will eventually doom them all.

Everyone else will eventually lose for eventually the entire domestic economy will be re-configured to produce guns rather than butter and both the guns and the butter will be produced by only a handful of consolidated multinational corporations, government-partnered entities that are "too big to fail." The government protects its own. Does this not explain the Wall Street bailouts? Mussolini and Hitler could only have dreamed of such a glorious system!

And this is what the United States has become today: a corporate fascist-driven plutocracy that is the arms supplier to the world. Thus it is in the interest of the US for the world to be chaotic. The more chaos, the more wars, the more profits. This happened because millions of "concerned" citizens in private business were so corrupted by the cultural Marxists' "march through the institutions" they sold out to greed and instant-gratification. They bought from, and sold to, companies that decided to partner with thugs with guns.


So how do you get it back from the thugs and sell-outs?

You get it back by reversing direction and marching back up the very road you wandered down.

You take a look at the legislation, precedents and key events that occurred the past 100 years and you place these into chronological order.

Then you determine where on this time track private business and the middle class had the most prosperity. To determine this, you look at all stats, NOT just government stats as these are frequently biased in the direction of the statist agenda. You then look for the changes that occurred on the time track just BEFORE things went off the rails, e.g., stats worsening due to Keynesian economic policies. You then reverse whatever policies or laws that were enacted before the crash. Unfortunately, this could kill the patient if done too suddenly, so such reversal may have to be done over years or decades. Wandering back up the road you came down in reverse chronological order will eventually get you back to a point on the time track where things went off the rails. This is why you need to formulate the long-term time track: in order to analyze the data and the situations that evolved out of the data.

None of this pre-supposes that the time that "private business and the middle class had the most prosperity" was, or is, the "ideal scene." It is only suspected of having been a BETTER scene than the EXISTING SCENE by certain people. For some it was better, for some it was worse. Surely some things were better for a majority. Would no national debt be a better scene than a $14.4 trillion debt? Maybe, but then they didn't have cell phones or personal computers at the turn of the 19th Century, so maybe times were NOT better.

But all this uncertainty about the past is WHY an "ideal scene" should be postulated in present time. How would a current IDEAL SCENE compare with a previous "ideal scene" of "most prosperity"?


The only way to build a present-day IDEAL SCENE would be to ask everyone what they think. This would require giving as many as 6.9 billion people a survey. The survey could perhaps start with the 310 million in the U.S. and then continue with the rest of the world if it looked like any valuable data was coming in. Ideally it would be a short and professionally-written survey; but such could be very revealing.

Only after the IDEAL SCENE, as tabulated from the people of the world, is compiled can meaningful direction be given to any national or world reform movement. Obviously, if one does not know what the "ideal" direction to march in is, then any "leader" that says his or her direction -- reform movement, policy, law, revolution, ideology, economic, philosophic or religious system -- is correct, is merely an opinion. It is an opinion because it is not based on comprehensive and extensive data. A survey from 310 million people, or 6.9 billion people is comprehensive and extensive data.

The mainstream media, and government, constantly survey the People for data, any data. It calls them polls. It then uses this poll data to "substantiate" the ideologies and policy positions which the power elite prefers. This is what's called fallacious deductive reasoning: using data to argue for the validity of some pet hypothesis. This form of "data analysis" is intellectually dishonest because it depends on the omission of relevant data in order to successfully "substantiate" the desired postulate (ideology or position). When the scientific method is being used correctly, NO significant datum can be ignored and ALL conclusions or assertions must be falsifiable. For an experiment or social conclusion to be valid a) one may NOT cherry-pick the data to get their way; b) anyone who performs the exact same experiment (or survey) should be able to INDEPENDENTLY obtain the exact same results (or data-set); c) there must be some way to test the experiment against a "control" group or experiment, and d) there must be some way to empirically show that some assertion is false. In other words, the statement "God controls the Universe" is NOT falsifiable, THUS the subject of deities is NOT addressed in the realm of science, but in the realm of religion.

Generating a survey to elicit data for an "ideal scene" from a population with no hypothesis (ideology or position) in mind, is known as inductive reasoning. Inductive reasoning is totally data-driven. It does not rely on, or use, any pre-ordained hypotheses to come to a conclusion. The social-scientist that uses this method must be agnostic to the IDEAL SCENE that will eventually emerge as a property of the data outlining human needs and wants. This survey has never been done, so it's little wonder the world is chaotic, hence dominated BY a power elite. Of course, this is no news to the power elite: they have plenty of scientists that well-understand all of the above, thus, no survey will ever be done by them. They want THEIR postulate of an "ideal world" to prevail, not the postulate of billions of ordinary people.

But maybe billions of ordinary people would never come up with a very ideal postulate. Or maybe they would never come up with the postulate that "only an elite is qualified to rule." Maybe only an elite SHOULD rule, as only such an elite has the education and training TO rule. No matter what considerations one can dream up on this, it could never hurt to consult millions of people on what they feel is the "ideal scene" for a world.

So, watch your TVs, vote for the DemoPublicans, drink your beer and continue to fight wars. It's your planet, and it's no wonder the Universe has quarantined us. But the steps to change things for the better, from every point of view, ARE knowable. Why not know and apply them? Maybe the touchy issues that are taking place in Israel and the Middle Eastern would evaporate into a new world of peace and abundance. As the Lord's Prayer could be interpreted: thy can be done on Earth, as we postulate is done in Heaven.

(1) Since Ghawar makes up a significant amount of Saudi Arabia's excess capacity, this excess capacity would go away exposing the world to runaway oil markets. World oil producers would thus be able to exploit everyone for higher prices because Saudi Arabia would no longer be in a position to reduce the demand through its excess capacity. Oil prices would sky rocket to $100, $120, $140 a barrel. This would translate into U.S. gas prices at the pump as high, or higher than they already are in Europe: $3 - 4 per liter (which is $10 per gallon). The sweetheart deal the U.S. government has with the Saudis would no longer be able to protect us with artificially discounted oil prices, thus the U.S. economy would go into a very serious tail spin. This would destabilize the dollar and set off a worldwide recession many times worse than the ones we have recently experienced. All this because one 50-year old oil field in Saudi Arabia lost reservoir pressure. Given no one has any idea what the world's oil supply actually is, and the fact that China is coming online as a major energy consumer at an annual growth rate of 7% to 10%, it's very risky to fail to develop alternative energy sources. Sure the United Sates is the "Middle East of Coal" and we could gasify this resource, but sooner or later, i.e., within the next century, the world will be demanding 20, 40, 80, 200 terawatts of power PER year. The ONLY technology that can deliver this amount of energy is plasma fusion. Thus it is inevitable that the world will have to develop plasma fusion sooner or later if it wants to continue to evolve and grow. See EARTH'S ENERGY PROBLEM at http://www.jaegerresearchinstitute.org/articles/energy.htm

(2) Banks that are able to create "money" out of thin air through fractional reserve and fiat-issue may be a different story. In essence, their profit is infinite, for creating a product at no cost (loans) and then renting that product for ANY sum (interest) results in a mathematically INFINITE return on investment. THIS is why you see banks on almost EVERY major street corner in America. These banks have partnered with government to create infinite amounts of "money" in order to fund the military-industrial-banking complex. The goal of this complex is real estate. Just as the 50-year war between Israel and Arabs is over real estate, the purpose of the U.S. military is the acquisition of real estate, in this case oil-rich real estate in the Middle East. So the power elite that owns and operates the Federal Reserve Banking Establishment (such including its alter ego, the rape-prone IMF/World Bank) has purchased the U.S. Congress and the President for the purpose of using their military to acquire all the desirable real estate around the world. It's as simple as that. If you could create all the money you wanted to pay soldiers to kill for you, wouldn't you do it? If you could simply buy up governments and surrounding media organizations with money you printed up on PAPER and then use these institutions to further your acquisition of planetary resources, such as land and oil, wouldn't YOU do it? Of course not, the average person is moral and ethical. That thought might be a challenge for the psychopaths that have hijacked the world's power centers. There are vastly more people in business motivated by the thrill of innovation and the rewards of a harmonious world than those who seek domination and to enrich themselves unjustly. The unfortunate thing is good people often fail to comprehend the full cost of a given action or policy and so under-value it.

(3) And now the military-industrial-banking complex has embarked on a brand new idea: wars that don't kill anyone . . . at least any of OUR little boys. Such wars are to be fought with the armada of new high-tech unmanned drones and vehicles. Why send a voter's son to do a robot's job? This brilliant strategy -- which is constantly advertised all over the mainstream media, and especially on the "Military Channel" -- will allow the U.S. Empire to wage profitable wars all over the world without their citizens even being aware. When a robot drone is shot down, no one cares. There is no funeral and no bad PR for the "war effort." When someone's little boy is shot down, all hell breaks out in the local citizenry. There is a funeral, there is bad PR. So little by little, the government, it's sell-out corporations and the banking freaks are trying to figure out ways they can keep their insane wars and chaos going.

Originated: 22 May 2011
Revised: 23 May 2011

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