Dr. Frank Einstein (23 page)

     Then
the Democratic Governor Gray Davis was inaugurated.  He had warned the state not to deregulate the Energy laws.  So Enron wanted to get rid of him.  So first they invented artificial rolling blackouts.  Then they extorted the state in to pay thirty one billion United States Dollars in energy contracts.  Then after this, Enron purposely plummeted energy prices.  The plummet of price invoked the derivatives which then Enron collected billions on.  Now the state was stuck with thirty one billion United States Dollars in contracts that ended up being worth half of the original contracts.  Anger aroused against Davis for being duped by Enron.  So California recalled Davis and Enron's Stooge Arnold Schwarzenegger was elected to replace Davis.  So California essentially rewarded Enron for ripping them off, by giving them control of the governorship.  Fortunately Enron was involved in other scandals and they did not survive the year.

    
It was too bad that we did not know back then that Schwarzenegger had fathered an illegitimate child with his maid and paid off the mother. He probably would not have run for governor and Davis would not have been recalled.  But his wife Marie Shriver kept the truth hidden to support her husband.  Of course her grandfather had ripped off America billions so this is something she has been educated in--deceit.

    
Swartzeneggar is an Austrian.  Austrians are very affectionate people.  So Swartzeneggar loves to touch, especially women.  Of course we saw him groping women on archival news footage.  The Republicans said this was an unwarranted smear campaign from the liberal press. They said that Swartzeneggar did not grope anyone.  They said the media had manipulated the footage.  Of course the people believe them. This is because Republicans never lie.   They go after liars like Bill Clinton.  By rooting out liars meant that Republicans do not lie-- uh hum Nixon, W Bush.

     
Gray Davis was an effective governor.  However his opponents exploited his introvertiness.  An effective speaker; he lacked charisma.  Davis has Asperger syndrome.  This is a form of autism. It diagnosed people with very high intelligence. They are extraordinary thinkers, who have heightened sense of Justice, but lack the ability to relate to people.  We probably want people like Davis to run our government but we cannot vote for them because we feel uncomfortable with their personality.  The fact is I personally knew Gray Davis. 

     
I met him in the spring of nineteen ninety eight.  It was at a gathering to kick off the state democratic gubernatorial primary.  He sat alone in a campaign booth being ignored. A millionaire enterpurner had decided to run as a democrat. So he was there. He was throwing around loads of money around there attracting the crowds at the place.  Also Jane Harmon, an United States congress person from Hollywood had a small following because she, unlike Davis, had held and is holding a public office.    Davis had been governor Jerry Brown’s chief of staff twenty years before.    This was his first campaign. The last gubernatorial election Jerry Brown‘s sister had been nominated as the democratic candidate.  In the sixties their father Edmund governed.  Jerry and Edmund had bookended Reagan.  There may have been a feeling there of having enough already with the Browns, even with one of their chief of staff.

     
I listened to his presentation of his platform in its entirety. It was the same as mine.   We shooked each other’s hands at the finish of his presentation. He had my vote.

      At that time, I still had
the special education teacher position.  How I loved teaching my four students with cerebral palsy. Even more I enjoyed participating in the leadership of the teacher's union on all three levels [local: United Teachers of Los Angeles; statewide; California Teacher Association; national: National Educational Association].  The members encouraged and respected me. Even before becoming a teacher I had been elected to the state council of the California Teacher Association; also I was elected to the yearly national convention. I did this national convention for ten years.  I traveled the country all expenses paid. The union would pay the expenses to go to both political parties statewide meetings; BOTH Democrat and Republican. Finally, i was elected for  two years on the prestigious rules committee at national headquarters at Washington D.C. and on the leadership committee at the national conventions. It rewarded a much more liberal expense account. I rode high those years. It was the only time in my lifetime I felt professionally appreciated by others.  But it all came crashing down when I was falsely accused of having schizophrenia thereby losing my teaching position. To be in the teacher union you to have to be in a teaching position, no substitutes.  The union wanted to have substitutes but, except for ironically Los Angeles who banned me, the school districts administrators adamantly refused to allow substitutes union protection. To do so, would give union and the substitutes more power.  The administrators would never relinquish power.

   
  Soon after this meeting where I met Davis, the enthusiasm for the millionaire died a death; he might have been a clandestine republican who wanted to sabotage the democrats. For sabotage was the only way the Republicans could have won after the disastrous governorship of Pete Wilson. First there were rolling blackouts, Enron and the Koch brothers artificially manipulated of the energy supply for profits. They were too wrapped in their greed to realize that it was hurting the one that gave them deregulation. But they would learn from this mistake and artificially raise energy prices to get Davis recalled. Another Wilson disaster was his support for anti-Hispanic propositions.  

 
    With the millionaire gone, it was between Harmon and Davis.  Whoever won the democratic nomination was a shoe in for governor.   This was especially true because the Republicans nominated another neophyte millionaire, Michael Huffington, who believed he could purchase the governorship. He is the ex of Arianna Huffington. You will not believe how conservative she was back then, yet the same boisterousness.

   
  Davis platform became more appealing, than Harmon’s, especially to state’s unions. Thusly he won the nomination and election.  Then he won reelection.  I am irked that his opponents took him down based on his disability and not the merit of his five years as Governor.  It was they only they could do because he did an excellent job as Governor. 

   
Tom McClintock sponsored the recall, hoping that the Republicans would support him for his bid for governor as a reward for getting rid of Davis.  He was considered too extremist and consideration went to the very popular Schwarzenegger.  The recall was an embarrassment for California.  It was spectacle that no one took seriously.    

     Schwarzenegger never solved the energy problem.  He found constantly himself in stalemate with Democratic Legislature over this.
  He was reelected because he promised to sign a bill to hike the minimum wage to eight United States dollars an hour.

 
   Davis acceptance of thirty billion United States Dollars in energy contracts was part of a sting operation to investigate the illegal activities of Enron.  When Schwarzenegger become governor, he shut the sting down.

      Davis is now the recognized authority on relationship between energy and derivatives.  But he would have been much more effective in going
after these damaging economic activities if he had remained California's Governor.

      "Cut the deficit!” is the new America mantra.  Remember, everyone in Congress is your enemy; they are trying to pull the wool over your eyes.  Congress will never cut the deficit.  Right now, Congress wants to makes cuts to Medicare.  This bill will cut Medicare, leaving seniors to suffer, but it will not cut the deficit. 

This article will explain why.

     
Politicians love to equate the national budget with a typical family budget.  Really? Really? Are you going to fall for that nonsense?  Any politicians who says that is belittling you.  Look, you got a life.   Unlike these congressmen, you have a job that is productive.  You do not have time to cut through the muck that politicians and the media, they control, to find the truth.  If you all were given the truth you all could make informed decisions.  But you are not allowed to hear the truth.

    
That is what I am here for.  I come from a completely different point of view.  A point you are never going to get from politicians or the media.  If you think I am too bizarre that is fine, but at least you got a different point of view.

    
The Federal Budget is nothing like a family budget.   Imagine you could print unlimited amounts of money, stealing your neighbor's property with lethal force, have people throw money at you because you are the most beautiful, most powerful thing on earth.  Banks want to lend to you unlimited amounts of money because they want to stay in your house so they can to do anything I mean, anything with anyone in your house.  If you print money you go to prison, the United States must do it.  If you steal you go to prison. You cannot put the United States government in prison, you are not the most beautiful powerful thing on earth; the United States is.  You do not have bankers wanting to stay in your house, but President Obama loves the Chinese snooping around the country.

     
Do you know why the deficit is bad?  And please do not say, “if I'm in debt, I cannot pay my bills".  If the Federal Government does not have money it just makes it out of thin air or borrows it.  If the United States asks, borrowers line up desperate to lend to America.  They lend not for the interest but for quip pro quo.  China makes loans to the United States so that the United States will turn around to buy Chinese goods and services. As long as we buy from China. And China wants to sell to United States.  China will wants to lend to the United States more and more money.   It's more than that.  China needs a place to dumps dollars.  When China sells its exports it gets paid in United States Dollars.  If it puts these dollars in their economy their currency will valuate and their cost of their goods will rise.  Their goods will be too expensive to sell at the rate they have been selling at. Their economy will be much more sluggish. Therefore, to dump their dollars they lend to United States Federal Reserve.

     
When the United States Deficit is greater than the United States Gross National Product, it is the beginning of real problems.  It has not done that.  Actually the deficit really will not affect the economy until it is double the Gross National Product.  We have a long ways to go before that happens to the United States.  

       But if the deficit is multiplied times the Gross National Product then the United States Dollar will lose a lot of value.  Let me give a scenario one hundred years from now.  Great Britain has kept it deficit under its Gross National Product but the United States goes over it multiple times.  A gallon of milk cost   seventy Great Britain pounds but an average worker makes two thousand one hundred Great Britain pounds a day.   In United States the milk will cost seventy United States Dollars but the average worker makes two hundred ten United States Dollars a day.  In today's terms that would be liken to prices being the same as today but the average wage would be ten United States Dollars  a day.  Welcome to the Philippines.  In this scenario of twenty one twelve, the United States would be a third world country.  This is the economic situation of the Philippines.  I have been living in the Philippines for several years.  Fortunately, I do not make ten United States Dollars a day.  My income is about average for the United States. Most of the people around me do it is make ten United States Dollar  a day—It is mind blowingly terrible!

      
We are a long way from this scenario.  You pay down the deficit when the economy is strong not when it is weak.  Our economy is too weak from the two thousand and eight crashes to worry about the deficit.  Yes if we pay down the debt now there would be a marginal stimulus, because of the release of money to the economy.  But this stimulus will be counteracted and overwhelmed by currency valuation.  You may think that having the opposite of devaluation is good, but it is not when it is too fast or too much.  If we woke tomorrow and found that the United States Dollar had doubled in value, against all currencies, that would be bad.  It would make the United States Dollar too valuable and unobtainable.   This was one of the causes of the Great Depression.  So if we made a real concerted effort to cut the deficit we would throw the economy in a Great Depression and within two year the economy would have negative growth: giving the United States an unemployment of twenty nine per cent.

     
There is no good solution to the two thousand and eight crash.  The only good solution would have been to prevent it in the first place.

     
In late nineteen nineties the economy was strong enough to pay down the debt.  For a short time, that is just what the government did.  Then George W. Bush was inaugurated president. He stopped reducing the deficit.  The economy was still good enough to reduce the deficit.  However President Bush, with the support of Congress, decided that there were more important things to work on than reducing the deficit. 

     
How did we get this massive debt, if it is even a massive debt?  When Franklin D, Roosevelt was elected president the national debt was thirty United States Dollars billion (six hundred  billion United States Dollars  today adjusted for inflation) since then both Democrats and Republicans have spent a lot.    From nineteen thirty three on, the deficit never went down until President Clinton reduced it.