Averaging?

It is a well known fact that the powers that be, want America to partake in a 'one world' system, and this has never been a political teaching or campaign speech by either Democrats or Republicans. Those in power, who pull the strings, want America and the whole world to be "one," thereby stopping all wars, and strife. Naturally, this is impossible and a silly dream. Economically speaking, this would be a disaster. And isn't economics, as my hero Ludwig von Mises said, simply that, "People Act?" When people act, they always do it for their own benefit, whether it be looking for a better job, prettier girl friend, bigger house, or fancier car. Everyone wants to improve their lot in life by any means possible, and this is human nature. Last week, I wrote about China, and this week, I will show just how China has taken part in making us all "one world," and not with our permission. I urge you to get a book titled "China Inc," a paperback, authored by Ted Fishman, published by Scribner, copyright 2005, and whose first two pages are full of rave reviews by just about everyone.

Wal Mart is America's largest employer, and it has the lowest wages in America. Wal Mart, China's biggest customer, is dragging America down to Wal Mart's and China's level. The economic law of averages, takes the various categories of all weights, prices, wages, and measures, and combines them all. To get an average of any category, one then divides into the total, the number of factors involved, and the result is the average. If then, Wal Mart is the largest employer, if one takes the total number of Wal Mart employees at their average wage per hour, which is about $8, when the averages wage of America is figured, Wal Mart will have dragged the average wage in America way down. If several million wages of $8 per hour are averaged with several thousand at $20 per hour, which may be the remaining factory worker's wage, the average wage, and therefore living standard, will have been dragged down. If one examines the entire world's wages, and the entire world is "one," then the entire world's living standard will be the result of averaging the world's wages, translating them into one currency, in this case the dollar.

See why most thinking people don't want to be included in a "one world" program? Which nations have the most population? Isn't it India and China, and especially China? If China's wages and living standards are averaged into the rest of the world, and especially the United States, isn't it obvious that we will be degraded into the world averages? If a hundred million Chinese factory workers make an average of 40 cents an hour, which they do, according to the above mentioned book, then this will bring the world average way down. If the average Chinese citizen lives in a hovel, and scratches around in communal farms, has no indoor plumbing nor electricity or car, doesn't this bring down the world's average standard of living? And if India's citizens are about the same as China, and throw in Russians, Egyptians, Palestinians, Mexicans, and most South Americans, doesn't this bring down the average standard of living for the French, Brits, and Americans? Averages are of great import, because the world's average of anything, if we are to be part of it, decides how Americans, French, British, and maybe a few others will eventually live and prosper.

Do I care about the rest of the world's poverty? No. Do I care about being brought down to their level? Yes, and I don't want to be a part of it. Is it possible to defy and eradicate the economic laws of averages, so as to be left out of this low standard of living, which encompasses the world? Not if we are all to be 'one.' How then, did we excel so much in the past? How did we ever manage to live supremely, as we did in the past, only to see ourselves dragged down, screaming and protesting, to a much lower level? Actually, we aren't screaming and protesting, are we? We are simply doing our best to cope with what seems to be a huge storm that is enveloping us. A storm it is, with threatening dark clouds, and plunging barometric pressure. That storm is coming from China and India, with China taking the lead. Travelocity has Indians answering the phone, and Wal Mart, Home Depot, Loews, Hobby Lobby, Michaels, and every chain business for that matter, depends on China for their merchandise. As a result of the 'big box' outfits' purchasing power and habits, small stores and individual shop keeps must follow, because the U.S. factories are long gone, and their well paying jobs with them.

As I have said many times before, when a nation doesn't make what it consumes, it is in trouble. We are in trouble. As "markets" determine prices, and "markets" cannot be defeated, how can we return to our previous high standard of living? I don't think it's possible, to be honest. Look at any 1930's movie, and I dearly love them. (They have few special effects, wonderful story lines, no wholesale murder, violence, and sadism) Thirties films, and as prime examples take the "Thin Man" series. Nothing is foreign made. No foreign cars, or foreign anything. Prosperity wasn't exactly common, as the great depression was upon America and the world, but the cameras which shot the films, and the projectors which beamed them onto the movie palace screens, were made in America, as were the trolley cars which carried people to stores and theatres, probably made by Brill or St Louis Car Co. The few busses then were also made in America by maybe Twin Coach Ford, or White. The copper wire in homes and overhead trolley supply was made from Idaho or Montana copper mines, and the steel came from the Iron Range in Minnesota. The oil burned was from American wells, and tires on American made cars, was from American factories like Goodyear or Goodrich. People who rode bikes rode Schwins, Rollfasts, or Columbias, which were made in America, and radios were from Philco, in Philadelphia, or others; but made in America. The entire civilized American life was centered on American made products, made with American raw materials mined and grown here. We weren't being dragged down economically, and our inventiveness, original thinking, and supreme manufacturing abilities, were in high gear, and were tested to their utmost when WW II came around.

Like a hole in the dyke, which the little Dutch Boy stopped by sticking his finger in the leak, when the first tariffs were eliminated, the leak began in our life style, which would drag us down to the rest of the poverty stricken world. Tariffs secured our elevated, jealously guarded, untouchable, life style, which was the absolute envy of the entire world. Wasn't that nice? Few can remember it, but it was a fact. Just imagine an America with not a single foreign item in our pantry, stores, or garage. Fine cars? We didn't need Mercedes. We had Packard, Duesenberg, Lincoln and Cadillac. Mercedes couldn't hold a candle to them. American made Schlage locks on our doors, Otis elevators, American made suits, shirts, socks, shoes, and underwear. No leaks in the dyke. As much prosperity as was possible during the depression, but no foreign factories and imports costing Americans their jobs. There was 25% unemployment it is said, and actually a lot more probably, but it wasn't because of imports. It was because of the depression, and when a depression is over, usually everyone returns to work as they had done before. The depression was over because of the war, and after the war, for a first time in history, the victor rebuilt its former enemies, removed tariffs, and did everything stupidly. The result was beyond sticking a finger in a dyke, and it has cascaded down to us today, dragging us down to everyone else's level, and I deeply resent it. It's simple economics people. It is averaging us down, due to the absolute immensity of the rest of the world's poverty, and force feeding it to us. No more American made anything, be it tuxes, tires, TV sets, trolley cars, telephones, or any product which begins with any other letter of the alphabet. Now there is rumor that Mexican, Canadian and U.S. currencies will all be combined, and all borders erased. Won't that average us down now! Hopefully Canada and what's left of American thought and vocal protestation will stop that. I get so angry, simply writing this stuff! Protect yourself, and by all means have a happy new year.

December 28, 2006

Don Stott has been a precious metals dealer since 1977, has written five books, hundreds of columns, and his web site is www.coloradogold.com