Most of the people here know that I am a JFK/FDR labor democrat.
My goal is to make sure that everyone here today learns the 4 JFK/FDR solutions for ending the onrushing economic depression.
The hard reality is that the global economic depression that is now hitting North Africa, the Middle East and Europe will hit Alaska with full force within the next two years. The human suffering, that is completely unnecessary, could end up being as horrific as it is in many parts of the world today.
Our nation and the nations around globe require a fundamental economic reform and today you will learn the solutions to end the depression.
First I will give you the 4 federal policies that will end the economic depression, then I will give you the personal reason why I have published the United Alaska Campaigner economics newsletter for the past 31 years.
I will then integrate the solutions into the causes and dynamics of our current economic calamity. Finally I will recap the 4 solutions and then we will have a discussion.
Here are the 4 federal policies that will end the economic depression and begin a science and infrastructure-led recovery:
Number 1: Enact a 1% Wall Street sales tax, with a one million dollar per year per person exemption for small investors to curb high-speed gambling by financial cartels and fully fund Social Security, Medicare, Medicaid, education, food stamps and social safety net programs.
Number 2: Reject the oligarchic Trans-Pacific Partnership and promote technology and capital goods exports for building transportation, water management and energy production systems by enacting a 15% targeted trade tariff.
Number 3: Extract financial derivatives out of our FDIC insured banking system using the standards set by the 1933 Glass-Steagall Act and the 1936 Commodity Exchange Act.
Number 4: Create federal, state, municipal and port authority infrastructure bonds, productive capacity bonds, education bonds, technology bonds, and hospital bonds to sell through a new discount window at the United States Federal Reserve.
These four policies have been hotly debated for many years and now is the time to rally political campaigns around these issues.
My personal story begins in 1916 when my grandfather Charles Knappen was 15-years-old and walking down the street in uptown Chicago Illinois.
The union ironworkers took one look at this boy and began calling out to him because he was over 6-foot tall. In 1916 he entered the ironworkers as a water boy.
Charles went on to become the founding business agent for Ironworkers local 292 in South Bend Indiana. Eventually he became the owner of a nation-wide ironwork company that operated coast to coast.
Charles had two principles that ran his company: treat all men with respect and use the most modern tools and machinery.
Charles played a major role in guaranteeing that the American Indian was always welcome to become a union ironworker. He was also denied insurance because he was on the cutting edge of introducing that deadly man-killing technology known as welding.
Charles stood by his two principles and became successful to the point that one day he was asked to run for public office. The problem was that the men who wanted him to run were demanding that he violate his two most important principles. Charles said no to these men and could never understand why such ignorance could guide their thinking.
Why would men base their politics on racism and the hatred of technology?
The mission given to me by my grandmother was to understand that which my grandfather could never understand in his lifetime.
In 1976, my senior-year in high school, I began my quest to continue my grandfather’s work when I got my first break in understanding his dilemma.
My civics teacher told me that the key to understanding the political world was to read from the libraries of institutes and foundations that were connected to intelligence agencies. Getting news from the news media was always getting information second and third hand.
This tip from my high school teacher led me to see the world in a much different way than most people. History became my passion in life and my grandfather’s two principles remained my guide. I became forever committed to treating all humanity with respect and learning as much as possible about the advancement of technology.
As an Alaska union ironworker for 33 years, I would travel to the lower 48 every winter to learn about our nation and build industrial bridge crane buildings. After three decades I became one of Alaska’s leading experts on how to build both light and heavy industrial industries.
My grandfather’s principles served me well and I never gave up my commitment to learning history and industrial science. The history I will tell you now is based on his principles.
In 1971, it became clear that the Bretton Woods monetary agreements negotiated in 1944 had collapsed. As the remaining structures of the Bretton Woods system were deregulated and stumbled from crises to crises, the debt was papered over each time, providing the illusion of economic recovery. In 1971, a new period of financial warfare began between the constitutional nation state system and the old empire system of imperialist financial cartels.
Today in 2016, humanity faces a new world depression, while every category of infrastructure in our nation and many nations in the world are in an accelerating decline.
A worldwide parasitical bubble created through the deregulation of financial derivatives is directly causing this collapse of our civilization and budget cutting austerity is now being offered as the primary solution.
Continuing cuts to Unemployment Insurance, Social Security, Medicare, Medicaid, food stamps, and other social safety net programs will directly cause a dramatic rise in our nation’s death rate and are becoming the final assault on the constitutional nation state system.
1971 began a new era in financial deregulation that would eventually lead to the current collapse of our civilization. In 1984, a few historians and economists recognized this destructive change and called for a new Bretton Woods monetary conference.
In 1984, in Washington D.C., I pledged with hundreds of other United States patriots to dedicate my life to the establishment of a new monetary system based on the “promotion of high rates of technological progress in developing the productive powers, conditions of life, and culture of populations.” This commitment led to publishing and distributing the United Alaska Campaigner economics newsletter for the past 31 years.
My current Alaska Emergency Employment Mobilization series continues this commitment and is designed to give Alaska the physical and political ability to actively participate in solutions based on a new international monetary system.
Putting the Alaska budgetary crisis into international and historical dynamics identifies solutions that cannot be understood from a state government point of view. An international “financial warfare” approach is one of the keys for identifying Alaska’s long-term economic interests.
We live in a time when declining financial credit for agriculture, industry and infrastructure is crushing almost the entire world economy. A massive parasitical bubble in financial derivatives, that were strictly illegal between 1936 and 1982, is directly causing this decline.
A major destabilization of this global bubble in 2008 resulted in an economic calamity for the entire world economy. The human suffering caused by this devaluation continues to this day even though this bubble has been temporarily stabilized through the “quantitative easing” policy of the United States Federal Reserve.
The root of our nation’s fiscal problem is that credit is being expanded for financial derivatives speculation, not physical production, thus collapsing tax revenues for federal, state and local governments— and Alaska is not an exception. A properly regulated financial system would have created the productive credit necessary for a diversified Alaskan economy many years ago.
The core problem in Alaska’s fiscal debate is that this debate has been restricted to the state budget while ignoring the fact that our state’s budgetary problem is directly linked to a lack of financial credit for physical production.
Selling Alaskan oil far below “world average government take” is a major contributing factor but the root of the problem is a commercial banking system that is dominated by the speculative gambling of financial derivatives.
No amount of budget cutting or personal tax increases will solve this problem because the international derivatives bubble will eventually destabilize again and come to a dramatic end.
In the context of the much larger financial derivatives problem, cutting budgets or increasing personal taxes will only increase human suffering while doing nothing to solve the root of the problem.
The proposal to “leverage” Alaska’s savings into “the markets” is the worst possible scenario because when the international derivatives bubble pops; Alaska will be saddled with a huge long- term unpayable debt.
What is required is a science and infrastructure-led recovery based on Federal Reserve bond sales, a 1% Wall Street sales tax to curb derivatives trading, and a “new global financial architecture” similar to the Bretton Woods reforms of 1944.
The financial standards set by the 1933 Glass-Steagall Act and the 1936 Commodity Exchange Act must also be put back into place if we are to survive as a nation.
State governments must work together to link the change in Federal Reserve policy to infrastructure priorities in each state. Alaska must take advantage of these anticipated changes and begin preparing the Alaska budgetary process for the inevitable change in Federal Reserve policy.
Alaska, as a resource-based economy, has already clearly identified a new large diameter gas pipeline as the number one priority infrastructure project for our state. The second most important infrastructure project is still not widely known due to a lack of understanding of the basic principles of physical economy and the science of technology.
The science of technology clearly identifies that only high energy-flux-density heavy industrial plasma processing has the ability to transform a resource-based economy. Mankind has burned wood, coal, oil, gas and uranium as primary heat sources; understanding the science of technology identifies the next step as hydrogen and fusion.
The role of a future orientated resource-based economy is to provide the in-depth logistical capacities necessary for the larger hydrogen and fusion-based world economy that is emerging.
Technology defines what is a commercially viable resource and ascending the platform ladder of high energy-flux-density industrial technologies clearly identifies heavy industrial plasma processing as Alaska’s top science and technology priority if we are to remain competitive and commercially viable throughout the next generation of production.
To advance our oil, gas and mining industries and promote the creation of new industries, Alaska will require the building of a high-energy plasma physics prototype institute at the University of Alaska Anchorage.
Building a large diameter natural gas pipeline for exports and local consumption and building a plasma physics prototype institute for our new fuels, mining and manufacturing industries will become the driving forces for creating a diversified and jobs creating economy for many years into the future as we help to build a more peaceful and prosperous world.
When the international destabilization of the derivatives bubble begins again, the only alternative to depression will be the zero-interest rate leveraged sale of infrastructure and productive capacity bonds using a new discount window under the direction of the U.S. Treasury at the Federal Reserve.
The question is whether Alaska will be ready to leverage 50–100-year maturity, interest-bearing private and public bonds, and zero-interest public bonds to create a science and infrastructure-led recovery while developing new friends in the Pacific basin.
For thousands of years the great hope of humanity has been to break free from the old imperial empire system that enslaves and forces humanity into perpetual poverty and perpetual warfare.
The great hope is that someday every individual will have the freedom and standard of living to choose their own destiny, to develop their creativity, to make contributions of lasting value, and to live in a political world that values and promotes physical law and natural law principles.
Previous attempts in history to reform the old empire system created a world based on the optimism of the nation state system of constitutional democracies or what are more accurately called democratic republics. These attempts have been incomplete, yet the best hope for humanity is to continue the struggle to establish the nation state system as the dominant method of freeing the world from the old oligarchic empires.
People who are ignorant of this historical battle or who willfully deny the existence of the dynamic warfare between the nation state system and the old oligarchic empire system are framing the issue of the rise and fall of civilization with a false view of history.
With the inevitable collapse of the international derivatives bubble looming on the horizon, humanity is once again at a turning point in history where some people will challenge their strongly held oligarchic beliefs.
The question to ask these people is whether the nations of the world should continue to massively subsidize the illegal gambling debts of international financiers and instead protect the physical requirements of human populations.
Wall Street politicians deregulated our financial system and now we are living in a collapsing civilization. These same politicians say we can no longer afford to have defined benefit retirements, Social Security, Medicare, Medicaid, collective bargaining, universal education and food stamps. What a scam!
The fact is that most large U.S. corporations pay very little effective taxes while U.S. trade tariffs are at historic lows. The fact is also that Wall Street pays almost no taxes, wrecks our currency for gambling debts, teaches their stupid economic ideology in our colleges, and buys both Republican and Democratic politicians.
Now is the time to be very direct with our politicians in public. Cut through the confusion and ask the direct questions necessary for the survival of our civilization.
Do you support a tax on Wall Street gambling? Do you support a new Glass-Steagall Act to extract derivatives out of our commercial banking system? Do you support the sale of state infrastructure bonds directly to our Federal Reserve? Do you support a 15% targeted trade tariff?
Stand up and demand a change in our state’s relationship with our federal government. If a politician can only offer budget cuts as a solution then do not vote for them.
Cut derivatives out of our commercial banking system—don’t cut the life out of our economy. Alaska’s budgetary crisis cannot be solved using budget-cutting austerity.
Alaska’s brightest future lies in participating in a new worldwide financial architecture based on a science and infrastructure-led recovery.
Alaska’s mission in this new financial architecture is determined by our economic self-interest in participating in the dynamic advancement of plasma processing and the federal and international sale of our infrastructure and productive capacity bonds.
A 1% Wall Street sales tax and a 15% trade targeted tariff will fund our social programs while our new infrastructure and productive capacity bond system will put our nation back to work.
My proposal is that the economic platform that I learned by following my grandfather’s principles must be used to elect JFK/FDR labor democrats to public office in Alaska.
We will rebuild our bridges, dams, highways, railroads, water management systems, and power production and distribution systems. We will rebuild our nation!
Be sure to read or reread parts 8 and 9 of the Alaska Emergency Employment Mobilization. I will take questions now and hope we will have a good discussion.
