STOCKFLATION: AWARENESS AND CONCERN

The systems of production within American and civilization are handicapped with a misperception of what is good and bad for the system of production. Because people, especially politicians and necronomists, do not distinguish

between capitalizing production versus acquiring production, and
between production profits versus inflationary returns,

production is retarded and reduced. As expressed earlier, within a finite population or system of production, a rise in the busynesses manipulating the symbols of production can only come at the expense of the busynesses engineering real production. This is another way of expressing, in more human terms, how we live in a "zero-sum" world.

For a finite amount of human resources, the less given to actual production, the less will be the amount of production. Since the population will have not decreased, neither will the demand in the face of declining production. The result will be inflation in the prices of those products that are not being produced at the levels of previous times: shortage inflation (sinflation). Unstopped, the misdirection of human resources by the top policy makers will lead to massive unemployment among the population involved in actual production. Out of unemployment will rise resentment and violence toward the policy makers and the symbol manipulators.

Is America headed toward excessive busytime in manipulating symbols of production at the expense of production itself? Yes, for a "A 'labor market recession' is clearly under way" Hardest hit by unemployment were blue-collar workers (1980). Their unemployment rate surged from 8% in March to 9.7% in April. By contrast, unemployment among service workers rose from 7.1% to 8%, and the rate of white-collar workers increased merely from 3.3% to 3.7%.

Obvious in these figures are the relative greater losses of employment among those actually producing the basic goods on which the product worth of other services are dependent. This trend, found in the slump of Spring 1980, will accelerate with each additional slump as the manipulators of production symbols continue to privately centralize and monopolize control of the wealth produced each day.

This reduction in producer employment is simultaneously matched (catalyzed) by a rise in the "soppy" enterprises, the busynesses that handle scribbled-on paper products (or scratched-on plastic products). The following quotations reveal how there has been a marked rise in soppy activity and the questionable, if not obviously counterproductive, means whereby this rise has occurred.

What goes on with the stock market? Business is falling, but the Market is rising.

Cheaper credit makes it profitable to get back into the market on the cuff, to buy stocks on margin. Will the run-up continue?

On the cuff, hell! On the pooled savings of the small person, and of many of the unwillingly unemployed blue-collar. On the savings of someone who can't talk a banker into a consumer loan or even a production loan because too much money is being channeled into the speculative, busytime activities.

Despite the well-documented woes of many other areas of the American economy, there's no 1980 recession on Wall Street.

By all accounts, the stockbrokers and investment bankers of the financial community are enjoying their biggest year ever ...

Providing some action: Traders who are convinced the market is full of bargains already, with sound stocks undervalued as much as 50 percent.

This unprecedented boom can be appreciated in another way. One can look at the daily listing of stocks traded in the Wall Street Journal to see that the number of shares traded in the last few years and months have been expanding at a rate much, much faster than the population or, more importantly, production.

Reaction to the Boom: Increase the Misdirection?

There has been a growing awareness and concern about the boom in stock-trading from both private and public sources. However, the nature of the response is not a productive one from the private sources, especially from those who derive income from each transaction, especially from those who have no seeming personal reason to have the production stability that would come from reduced trade of stocks.

THE SECURITY INDUSTRY is growing worried that a continued surge in trading volume will cause major paperwork problems for Wall Street. Failure to prepare for the increase could create havoc.

This article projected that the day is near when 100 million shares will be traded.

What is the suggested solution to this concern? Their concern basically is to increase their income, naively, blissfully, or deceitfully unaware of the consequences on production. Clearly, if the means for people's foolish, counterproductive capacity increases, then the daily effect of people acquiring rather than capitalizing production will be greater. A better private response to the situation is:

Of course we're busy,
but what are we busy at?
If the Productive Individuals and Industries ...

If the productive people and civilization are lucky, all the electricity will fail at NYSE and Amex. The need for and the effect of a high-speed automated system is akin to the comment of the Reichsbank CEO during the German Inflation of the 1920s. Speaking before some legislators, he "boasted of the installation of new high-speed currency printing presses that would enable money growth to keep up with skyrocketing prices." In addition, planes would be used to rush the money to the cities (primitive EFT). Neither the German CEOs nor their contemporaries today realize how the source of inflation is the multiplication of sopps (scribbled-on paper products) in place of more "daily" useful goods and service. Said another way, they believed the salvation was in the Banker's Law of Money Multiplication instead of Grandma's Law of Product Multiplication. If one realize how loans, money-market certificates, stocks, bonds, and other sopps are forms of currency, the words of the Reichsbank CEO should echo loudly when one hears bankers praising high interest rates to aid the saver "to keep up with skyrocketing prices."

While the author is not advocating this action, it should be noted how a group in France has sprung up which goes around vandalizing and destroying computers, modern Luddites. Unless the use of computers are restricted to capitalizing and sustaining production, instead of the present counterproductive role of stale production acquisition, it is only a matter of time before vandalism becomes rampant on Wall Street. And it won't be the simple busytime disruption of someone going around with "Crazy Glue", jamming all the locks so that no one can enter the buildings. The computers will be jammed, a process that is easier than the process of prevention. Computer crimes will grow not only for personal gain, but from some productive individual feeling that computers used for counter-productive busynesses should not be allowed to byte away at production.

If the productive individuals and industries are smart or lucky, the production busynesses will simply take their stocks off the NYSE and AMEX. The CEOs, Board of Directors, stockholders, and wage-earners of the production busynesses should realize how the stock markets do not allow productive capital formation. As detailed in the chapter "Producers' Choice: What Currency, What Products," the productive entities are allowing speculation with the symbols of their particular production enterprise which drains capital away from expanding production and buying products. This is destructive capital formation.

Unfortunately, too many interlocking boards of directors have intimate and personal gain from the soppy activity on Wall Street. This counterproductive interlocking relationship exist, unfortunately, between Wall Street and the biggest Board of Directors within the American Economic System Of Production, namely, Congress. Look at all the politicians who have become Directors in soppy busynesses, e.g., the former Representative from Grand Rapids Michigan--Jerry Ford at Shearsons. Or look at the comments by Donald T. Regan, former head of Merrill Lynch who became Secretary of Treasury under Ronald Reagan. A good summary on Regan's accolades of a booming stock market as the means for capital formation, an editorial comment suffices nicely:

Treasury Secretary Regan ventured deeper into economic forecasting Monday by telling the Financial Analysts Federation that the administration's economic package would boost trading on the New York Stock Exchange to as much as 90 million shares a day. You may not think Big Board volume is a major test of an economic package, but since commission income depends on trading volume rather than share prices, financial analysts certainly think it is.

When one comes across these conflict of interest comments by administrators in the Reagan administration, one should be a gadfly.

Considering the above reference, the song of insufficient capital formation--often sung by Regan--should be viewed in a new light. Are they talking about people forming capital so as to benefit the manipulators of scribbled-on paper products or America? An example of a someone who has a personal and professional interest in the quantity of stock transactions is Donald T. Regan who has $10 million worth of Merrill Lynch Stocks.

Regan, as a public and private policy maker has too much financial stake in economic conditions that speed up the quantity of stock transactions rather than economic stability in which people hold onto stocks and bonds for a long-time. In other words, Regan will not attempt to bring about the economic stability in which people hold onto the symbols of capital and production for the long-term. Regan has a stake in stableflation: the cheapening of economic stability for personal gain.

Williams of The SEC

There are few people in politics or economics that have a grasp of what is happening to the human systems of production. Few recognize the imbalancing of human resources which is occurring as the income from merely manipulating symbols of production outstrip the income from producing the substance. And even among those that do, their nebulous perceptions are clouded over by certain actions. One such person, deserving of both cheers and boos, is Harold Williams, who was chairman of the Security and Exchange Commission (SEC) under Jimmy Carter. Williams took note of the rising stock activity in the fashion of the stock manipulators themselves:

SEC Chairman Williams called for construction in early 1981 of a computer link allowing securities firms to send orders from exchange floors to the trading rooms of brokerage-dealers offering better prices.

This reaction, as noted before, is not the solution. More to the point, and on the plus-side, Mr. Williams began to put his finger on the problems when he raised questions about the diversification of Wall Street--treated in a following section.

As to improved telecommunication on Wall Street, financiers error in believing this new technology will help America in the long-run. As telecommunications increases the dollars that the professional and lay person can make on Wall Street for each hour of speculation, an further imbalancing of human resources from substance to symbols will occur. Unless stopped, people will recognize too late that their dollar gains lack comparable gains in the substance of goods and services. They cause declining production which underlies shortage inflation that cheapens the real value of the dollars, of the symbols. Think of all the inflationary problems which could be solved if all the telecommunications used on Wall Street were used to

collect, filter, percolate, and hone

relevant information, issues, and individuals.

Reagan's and Regan's Proposal

Under a plan advanced by the Reagan and Regan team, the manpower and jurisdiction of the Security and Exchange Commission will be reduced. Under the banner of "fostering capital formation", advisors to President Reagan want to cut the SEC manpower by 75% since the Reagan team views the SEC investigations as counterproductive to an efficient stock market. Under the same banner, it wishes to eliminate enforcement efforts against "illegal tender offers, insider trading, and foreign payoffs." Even before these proposal, the SEC was having to curb its activity against the unethical--and impractical in the long-run as capitalism for a fewer few always self-destructs.

Flood of Securities Filings Swamps SEC, Which Sets Changes --- Every Registration Won't Be Checked, Only Those That Involve Initial Offerings.

Furthermore, the Ronald/Donald Reagan/Regan twins want to eliminate any public reporting of investigations. They cite the banking practice of secrecy of all investigations involving unethical behavior as being the most productive, efficient course for the brokerage industry to follow. Maybe for a fewer few.

As an indication of its intent, the Reagan transition team expressed that the aggressive SEC division head who has protected investor investments should be let go, namely, Stanley Sporkin. In gist and effect, all these recommendation, which were reported in a Wall Street Journal ignore the crucial distinction of capital formation for acquiring old production and capital formation for engineering new production. The Reagan/Regan deregulation of the security industry will increase the amount of destructive production acquisition at the expense of production capitalization. Production will collapse at a faster rate, more money will pursue inflationary returns rather than production profits. To head the regulation of the securities industries, Reagan appointed a "sopphist" on par with the former head of Merrill Lynch who now runs Treasury. For the SEC, Reagan chose the vice-chairman of E.F. Hutton, John Shad.

Has history ever seen such a well-organized effort
to destroy a system of production?

Diversion: Warning

Compounding the problem of unbridled pursuit of production acquisition and inflationary returns by brokers and bankers is the rise of diversification within the financial community. As described in the following paragraphs, the pursuit is a continuance of the "sopphist" philosophy of divorcing symbols from reality. Necronomic sopphists derive income not from capitalizing new production, but rather from speculating into old products or old production by acquiring stale sopps. Again, the departed chairman of the Security and Exchange Commission, Mr. Williams, provides fuel for the arguments that the stock market no longer fulfills its original function: stockflation is on the rise.

Brokers' diversification may dilute their capital raising [soppy dilution to be exact] function, SEC Chairman Harold M. Williams said. He urged the securities industry to concentrate on its usual business and cautioned against overlooking the needs of small companies.

Mr. Williams ... urged securities firms to follow the government's lead by giving precedence to the financing needs of small enterprises over starting new programs in insurance, commercial banking or real estate.

He warned that "to the extent that American industry finds itself unable to raise capital necessary to sustain its productive capacities and our national well-being--or seeks it elsewhere--it will be the securities industry whose reason for being may well be called into question."

By now it should be apparent that this text is calling into question the role of the nation's financiers in promoting production.

Less than 10% of financiers are capitalists capitalizing production that is both new and real; manipulation of the soppy symbols of capital is not real production. Questioning whether financiers promote production should be tempered with the awareness that the financiers are causing human resources--time, energy, and matter--to be diverted from production itself, especially the production of essential goods and services. The ways are numerous in which this counterproductive "crowding out" of human resources from production occurs; the SEC Chairman cited only a few.

Mr. Williams could have done better for himself and the American people. He should have awaken people to the need to stop the rise in diversification and stop the rise in people pursuing income from handling or speculating in stocks: the diversification from essential to less essential activity. The solution is not to reduce the regulation of the stock trades, either due to insufficient SEC manpower, or worse, a reduction of manpower and jurisdiction over stock transactions. The solution is education as to capitalism versus decapitalism, capitalizing versus acquiring, and symbols versus substance.

Based on the effect of the actions of the securities firms, they are misnamed. Misnomers are the rule with most necronomic institutions and the means by which their pied-piper advise is consumed. In terms of a stable system of production, modern security firms provide the opposite of "security"; rather, they should be called "nocurities". However, they can retain the name "brokerage firms" because of how they are breaking up the world's system of production.

Brokerage Diversion: Stamps, Land, and Coins

Among the diversions that expand the range of income for the financiers are the following.

Brokerage House Collects Profits by Trading in Stamps and Coins

Henry Harmison, a trustee for Primary Color Laboratory's pension fund, says he was an easy mark. "The name of the game is appreciation," he says, "and you know what a problem common stocks have been" [Appreciation in what: symbols or substance.]

Gold-Accumulation plans help small buyers amass inflationary hedge.

Yes, most people "know what a problem common stocks have been." Yet, most people ignore the problems that are cropping up in the common goods and services.

The source of these problems is simply a lack of production. Why? Because, collectively and individually, people are speculating in acquiring old products or production for "appreciation" income. They are not capitalizing needed new production for production profits. Or worse, they are ignoring the capital needs of existing, essential production; levels of productivity per capita cannot be maintained which results in shortage inflation per capita in the affected basic industries.

Shortage inflation in the essential goods and services eats up any paper returns from speculating for inflationary appreciations. The previous two quotations show how the professional and the individual are trying to derive income from acquiring old production or old products, e.g., stamps or coins. Clearly, if everyone tries to get ahead by lubricating the exchange of old products rather than the engineering new production, product shortages will develop. Prima facia, product shortages cheapen the product worth of old products: currency, stocks, land, precious metals etc.

Real estate has become an old product in which people attempt to beat inflation by speculative acquisition rather than something to be molded and improved as a basis for not only increased income but an increase in the corresponding wealth of humanity. Does it not seem readily recognizable that the more money tied up in the land, the less money there will be for production? Consequently, rising speculation in land prices crowd-out production, causing cash-starved production to go under. Sadly and tragically, many of the senior citizens are directly and indirectly capitalizing the shortage inflation in the essential goods and services on which they are so dependent. As an example of the aged having their money indirectly managed for old product acquisition, consider the following quotation.

ARE SOME INSTITUTIONAL INVESTORS missing a bet by shying away from real estate? Of the approximately $500 billion in pension funds and university endowments, only 1% is invested in real estate, according to a study by Thorndike, Doran, Paine & Lewis, Boston investment advisers. The firm, which doesn't invest in real estate itself, says that 5% to 10% of the institutions' funds could be invested safely in real estate.

Whether or not these necronomic advisers invest in real estate themselves, they are more than willing to talk you into so doing for a commission. The commission ratchets some of your wealth away while providing them living expenses so as to co-agitate more sopphism; were there any gains in products or production as a result of your transferring some of your wealth to a middleman who talked you into acquiring an old product?

Speculating in land value rather than investing in production profits is not having pension or university funds "invested safely." Pensioners should expect inflation from shortages of production relative to demand. Students and alumni should expect shortages of employment concomitantly, except for the new crop of sopphist. All these diversions by Wall Street financiers do not capitalize the creation of new, additional wealth. Instead, more and more of America's symbols of capital and substance of capital (human resources) are tied up in the speculation and manipulation of old products by a fewer few.

Financial Journals and Stockflation

The origin of stockflation, and its continual existence, rests not only with modern politicians and the necronomists, but with the leading financial medias. These informational outlets are as guilty as the individuals in confusing the acquisition of production with the capitalization of production, of not distinguishing inflationary returns from production of profits, and of not realizing the inflation is also due to production shortage. For instance, consider what THE journal erringly stated in an editorial: "It is not the securities industry's diversification that is causing the real problem here. It is inflation." It is a toss-up whether this editorial comment indicates intellectual incompetence or biased corruption ... or maybe it is both. Clearly, and unequivocally, if the capital formation center of the land "diverts" the pooled funds away from production, sinflation is going to occur.

The problem of inflation throughout history has been a result of production shortfalls due to non-productive activities diverting human resources away from production, e.g., war. A further indication of culpability on the part of the author's favorite daily journal is the following quotation from the same article entitled "Capital Question."

To the degree that the securities industry has been able to find a legal way to offer accounts that provide the investor with a return closer to or higher than the rate of inflation, the industry has been performing a real service.

Categorically, this is common sense nonsense--if one ask the right questions. For instance, why did the editor qualify the statement with "to find a legal way"? Does it mean that the Wall Street could not find a productive way as is argued within this text? Does this statement mean that the editor is aware of certain moral qualms about the nature of monopolistic acquisition that are justified by saying that such actions are within the laws established by law-makers? By law-makers who can be bought?

Has Wall Street provided "the investor with a return closer to or higher than the rate of inflation"? Before answering this question, one must realize that apples and oranges are being mixed. When necronomists speak of investors, they mean both production profit investors and inflationary return speculators; they mean both capitalist and acquisitor. Taken literally, the statement about Wall Street is false; investors with production profit motives have been suffering losses on the Big Board. Taken necronomically, the statement may have some truth. However, the degree of truth is eroded by the fact that the "returns" are measured in symbols of production (dollars) rather than product worth itself. Maybe people have been getting dollar returns close to the average rate of inflation. However, the inflation rate in their personal lifestyle, a lifestyle battered by sinflated essentials, is below the dollar return on necronomic speculation.

Capitalism's Virtues

In an book review on the editorial page ten days later than the above editorial, the Wall Street Journal provided a very good description of the capitalist and capitalism.

The capitalist is not so much one who takes but one who gives, investing actual wealth and irreplaceable energy in the hope of future rewards from which society as well as himself will benefit.

As to a good description of capitalism the following sweet words were written.

For ... the dynamic of capitalism consists not so much in the performance of mature firms as in the creation and growth of new ones.

The words would have been sweeter with a small but crucial addition.

Capitalism consists not so much in the performance OR ACQUISITION of mature firms as in the creation and growth of new ones.

Has any distinction been made between the capitalist and the decapitalist? The decapitalist is the nemesis of the creative, time-saving capitalist and is personified in the monopolistic, centristic, despotic acquisitor who creates nothing new. The acquisitor merely reshuffles money to old production which produces less wealth. Nowhere is there the warning of wolves in sheepskins who claim to be economists when they are necronomists.

The Wall Street Journal is merely an example of how the top policy makers in a system of production do not understand

that most inflation is caused by shortages,
that the currency transactions today determines the product worth, value, or inflation of currency tomorrow,
that increased handling of symbols of production comes at the expense of production itself,
that pooled resources merely acquiring production are counterproductive to the process of capitalizing production, and
that less than ten percent of the financiers in stocks are actually investment capitalists; most are inflationary, speculating acquisitors.

The Carter administration can be chided these for passively ignoring these distinctions. The Reagan/Regan team, on the other hand, can be criticized for actively blurring these distinctions and potentiating more destructive quantities and qualities of decapitalistic practices, e.g., deregulation of restrictions that effectively limit inflationary returns.

Bust Warnings

Even without considering the rise of counterproductive diversions on the part of financiers, politicians, and necronomists, there are rising warnings that the stock market is in for a big bust. Most people think that buying-on margin went out with the 1929 depression. Not true, the margins were merely raised. During the last months of 1980, margin buying were setting new records each month.

NYSE margin debt: up $720 million to record $12.5 billion, 3rd monthly increase.

Recall that the total value of new issues in 1980 was only $10 billion. The debt of people buying on margin, borrowing from bankers, was greater than the total amount of new issues. In other words, more money was borrowed last year to acquire old production for speculation than was invested into capitalizing new production.

Insider's Selling and Other Warnings

One of worst aspects of stockflation is the so-called insider selling of stock. Management is privy to information that indicates whether the corporation is going to flourish or stumble. Known in advance of the general public, such information allows the insider to "acquire" before a rise in stock prices or unacquire before a drop in the stock prices. Such practices are considered immoral and illegal because of the unfair advantage that the insiders have. The government attempts to prevent insiders from selling. However,

SEC Cracks Down on Insider Trades, but Violations Are Difficult to Prove.

Unavoidably, with the Reagan/Regan team cutting SEC manpower and jurisdiction, the amount of insider sell-offs and buy-ups is going to rise.

The following quotation shows not only how insider buys and sells are done quite frequently but how an ominous message is coming through.

The intensity of insider stock selling in recent months is causing some securities experts to wonder whether the bull market is about to peak. Since early summer, corporate officers and directors (the so-called insiders) have been selling their own companies' securities with a determination that sends shivers through analysts' ranks.

The article went on to note how a lot of sell signals by insiders were seen in blue chips unaffected by insiders sells for many years, e.g., IBM, Xerox, and Philip Morris.

One does not have to be an insider to be privy to information that indicates the direction of a particular corporation or all corporations. Firms specialize in monitoring the stock transactions of insiders to forewarn outsiders of probable stock price exchanges. Realize that these services--and the money they directly and indirectly consume--do not expand or capitalize production one single cent.

Insider Trading Figures Provide Basis for a Florida Analyst's Market Advice.

Who is this Floridian advisor and what is the effect of his advice?

Granville: How a Market Guru Called the Big Drop--Or Else Set It Off

Yesterday's overall carnage chopped more than $40 billion from the total value of stocks traded on the U.S. stock exchanges and in the over-the-counter market. At year-end, these stocks had a total value of $135 trillion.

Who is Granville?

Granville, the Grand Ratcheteer

Does it not seem quite necrotic that one person can cause massive amounts of money to be directed away from capitalizing production? Granville conceitedly claimed that he can make the market move as no President has ever done. Productively appreciated, the egotistical comment is a sad reflection not only on Granville, but on the people we elect to be President. Furthermore, his comment on being able to move the market should not be construed that he has improved production. Quite to the contrary, his activities cause production to be constantly whittled away by people speculating on his advice. Personally, his egotistical conceited comment is on par with Nero fiddling while Rome burned. Another person's reaction was similar

"Granville got $5 million worth of free publicity by shouting 'Fire!' in a crowded theater," snapped one broker.

One of the worst things about Granville is the additional stockflation that will result. There are a lot of stock acquisitors, not capitalists, who got burned in the Granville sell-off, or were not in on the killing. Many of these people will subscribe to Granville's newsletter as a form of speculation insurance. It is not unsimilar to becoming buddy-buddy with the man who fixes the races at a horse track. The next time Granville yells "Fire!", all the brokerage firms may burn to the ground.

The absurdity of Granville is how the brokers cannot stop him. His fiddling will continue in a manner destructive to all but a fewer few. Why can't, or won't, the stock brokers break Granville? Because Granville merely carries to the logical extreme the acquisitors' income approach, namely, speculate on the change in the value of the symbols which are not tied to real production profits.

If more money can be acquired by anticipating value changes in the stock prices, much more money can be made by precipitating a change. The precipitation of price fluctuations of the easily altered symbols of production could not occur if they were not divorced from the substance of production. For the Granvilles the rationale is: Why waste time trying to figure which way the symbols will vary, for one should take advantage of the divorce between reality and symbols to cause greater variations between the two. An analogous situation would be the theater attendant who picks up lost money after the shows and who figures he can save time by yelling "Fire", and grabbing all the purses left behind.

The brokers cannot stop Granville without stopping themselves. Consequently, it is only a matter of time before someone yells "Wolf" and the stampede wipes out all the bulls and the bears.

Dual Destructive Nature of Insider's Trades

Insider trades are counterproductive in two ways. First of all, the insiders are composed of management and directors who will have their mental, temporal, and moral resources compromised; the urge to make a fast personal buck can come at the expense of corporate production profitability. In other words, the capacity for insider trades will cause a distraction of the management's human resources from the job to which they were elected or selected.

Secondly, and derivable from the first reason, the executives and directors are not going to rapidly realize how transactions of their stock on the national exchanges cause people to avoid direct purchases of bonds. In other words, if people tie money up in stock transactions, money for low-interest bonds and loans will not exist. Because the corporate stock is more volatile and available for acquisition and speculative income, people are increasingly ignoring corporate bonds.

One of the big problems in the American Economic System Of Production is the collapse of the long-term bond market which provided inexpensive cash for long-term production improvements. Why are people avoiding bond buys? Because more money can be acquired by speculating in the old stale stocks that were issued long-ago to capitalize the existing, but decaying, production.

There are many ways that the counterproductiveness of stockflation can be terminated. The President could close the stock exchanges. The President could order a maturity date on stocks, i.e., a stock cannot be traded more frequently than once every seven or ten years. Or, the small people could stop it.

The small folk provide the cash that fuels the commissions. Refusing to gamble with symbols of production is the only solution. Acquisitor speculation is a gambling game which the small fries cannot win. The insiders know the fixes long before the small gullible producer, and with broker rates below the prime, the professionals have a monetary edge in financing the acquisitions.

Or, the corporations could withdraw the trading of their stocks from either of the national exchanges. They could set up in-house record-keeping for issuing stocks. Think about it. Furthermore,

What if all the corporations withdrew the trading of their stocks?

The next day they would be awash in funds to acquire bonds to capitalize long-term production.

Will the corporate executives and directors order a withdrawal of their stock from the exchanges? Probably not. Having an inside track, they are able to ratchet a lot of income by playing the market. In other words, they--like the bankers and brokers--have something to gain from production instability: stableflation. In better words, something is wrong when the captains of industry can derive income from the recession of production. This is not fair and free capitalism. Capitalism for a fewer few is the direction of America as corporate insiders continue to reap large inflationary returns by transacting the symbols of production which are divorced from production. Can something be done to regulate insider's trades? The following article heading depicts the situation: "The Unwinnable War on Insider Trading."

Ratcheting Wealth

The insiders, along with bankers, brokers, and all professional speculators, are participating in one of the greatest wealth re-distribution that has ever occurred. Where is it coming from? From the same source that it has always come from, from the people that produced the wealth. Each time one of the above people handles a product for someone, they charge for their service. Each charge represents some of the wealth being extracted from the person using the service. Because these services are redundant, overpriced, and frequent, the amount of wealth extracted from the basic producer is extreme.

Furthermore, as determiners of what symbols of products are the best buy of the moment, the "sopphist" are able to cause massive transactions in which the small people think that they are getting more security in the new "scribbled-on paper product." Look at all the diversification that has arisen in the securities market. The only people who benefit are the people who handle and manipulate the growing range of these soppy nocurities.

Each time a producer switches his investments or speculations, the sopphist extract some of the buying power--wealth--for having provided the service. The producer must wake up to the fact that the sopphist will never provide a stable investment. If the sopphist did, they would put themselves out of job. Nor will they allow the existing policy makers in Washington to provide a simple currency in which a producer can save.

There is another necronomic reason for having a wide range of products in which people can be confused. The bigger the tax and economic mess, the easier to find loopholes for inflationary returns, for more income than one productively deserves. Besides deriving income by reinstructing people on the best "investment" of the week or month, the sopphist can buy before the public has a real chance to make a killing. Besides ratcheting wealth away by providing artificially needed services, the sopphist are always the insiders when it comes to taking advantage of new sopps. Furthermore, the arrival of programmable computers allows the sopphist to constantly buy and sell for more income without producing a single good.

In the early nineteen eighties, a cry was raised against how the government acts to transfer wealth from the producers to the non-producers. While this is true, the amount of public transfer of wealth is small in comparison to the amount of wealth transferred through the larger, private sacred cows which the soppy, necronomists have devised. The real transfer of wealth occurs in the private sphere because the productive individuals and industries do not organize to prevent the ratcheting away of wealth from them of which legally tolerated insiders trade is but one example.

Ratcheteers and Racketeers

Ratcheteers differ little from the more traditional racketeer. Both put time into trying to get something without actually producing a more needed service or good. Sadly, ratcheteers do not recognize the destructive nature of their busytime activity. In this regard, they are one level below the racketeer who is cognizant of being of questionable productive value. In addition, and related somewhat with this knowledge of self-worth, the racketeer readily knows the boundaries beyond which he will harm him and his. The ratcheteers in their sopphistry, on the other hand, do not realize where they are taking themselves, production, and other producers.

Warning: Anyone found stealing lifehours will be forever banned from participation in and rewards of Better Democracy and Capitalism.
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