“The goal of socialism is communism.” Vladimir Lenin
Inferential Analytics (IA), the forecasting method we have created and use, has generated a new theme. IA themes define significant macro developments that are in progress. IA themes almost always become full-blown realities in time. This is our first article about the new theme, which is particularly threatening and disturbing.
If this theme develops as the IA model projects, the resulting new reality will have a profound effect on every United States citizen living either within or outside the country. (U.S. citizens are taxed no matter where in the world they reside.) While the entire American experience will be re-shaped by this new reality, citizens’ financial freedom, and therefore their overall liberty is particularly at risk. This theme extends beyond the United States, especially to Europe, but in this article we will focus on the U.S. situation.
Before introducing and detailing the new theme, here is some context.
Until now, the United States has been able to fund its massive, structural deficits and debts by leveraging its unique position as issuer of the world’s reserve currency, the dollar, frequently referred to as the petrodollar. The dollar’s reserve privilege has enabled the nation to artificially enhance America’s financial quality of life by creating out of nothing colossal quantities of the currency. By perpetuating a system that forces other nations to use the dollar, strong, unnatural demand has kept the currency from imploding in value despite its hyper-creation.
Among other things, this currency privilege has hidden rapidly escalating corruption within the American financial and economic system. The costs of this corruption have been funded by chronic deficits and surging debt; in other words, by excess currency creation, or money printing. If the costs of this corruption had, instead, been forced to be paid from the existing, and not an inflated money stock, the economy would have collapsed by now from the leeching of the lifeblood of any truly capitalistic system: namely, capital.
As the techniques of monetary debasement, deceit and plunder have become more sophisticated, reckless and brazen, the looting of the American economy has expanded to an epic degree. For example, we now know for a fact that the United States Army alone (not the military, just the Army), cannot account for $6,500,000,000,000.00 ($6.5 trillion) of the money it has spent. Despite the astronomical amount of this missing money, it is a drop in the bucket compared to the total number of trillions that have been plundered from the nation by establishment corruption.
In the mid-1990s, when the escalating corruption within the Wall Street-centered global monetary and financial system had become so obvious that the Establishment eleech (our term for the “elite,” a word we no longer use because it does not describe their now totally parasitic nature) could no longer deny it with a straight face, a new term to describe the system was concocted: Crony Capitalism.
The term Crony Capitalism was meant to imply that the system remained capitalistic, even though a bit of cronyism had crept into it around the edges. Further, the term implied that it is natural for a certain amount of cronyism to accompany any capitalistic system, and that people should not be concerned about it, as it is a normal and expected development.
This was blatant propaganda and a lie. The term Crony Capitalism is a fundamental contradiction in terms, and a fallacy. It is like saying, “healthy corpse,” “honest thief,” “trustworthy liar,” or “loyal snitch.” Cronyism pollutes and destroys capitalism. They are natural enemies and polar opposites, and they cannot legitimately or naturally co-exist.
Through constant repetition, which is how lies are dressed up to appear true, the term crony capitalism took hold, and became the descriptor for what we were expected to believe was a slightly imperfect, but still fundamenally healthy and vibrant form of capitalism. This falsehood was believed, until now.
Today, people in nations around the world have figured out that the United States is deep within a debt vortex from which it can never escape; that its structural deficits are uncontainable unless the system flat-out collapses; that the dollar is a massive figment of the imagination, supported only by an ephemeral confidence completely disjointed from any logical justification for it; and that the nation’s socio-political reality is fractured, dysfunctional and irreversibly disintegrating at an accelerating rate.
Therefore, these international players are increasingly unwilling to play the dollar game, and are progressively withdrawing from the field. While the U.S. government and Crony Class are doing everything possible to keep the game alive, it is now obvious that they are failing.
With the United States approaching a time when it can no longer fund its structurally and systemically defective financial, monetary, economic, fiscal and socio-political contraptions with a combination of currency counterfeiting and the subtle extraction of wealth from the rest of the world, it is being left with only one means by which to perpetuate itself: plundering the private wealth of its own citizens.
This is the theme that has been identified by Inferential Analytics. We have named it: “Crony Communism.”
Crony Communism takes the absolute worst aspects of every former, parasitic national operating system that has existed in history, including socialism, communism, colonialism, tribalism, totalitarianism and statism and blends them into a new, malevolent, deceitful, destructive, deadening, militaristic, hyper-corrupt, soulless, and thoroughly evil form of human command and control. Its total financial and human cost will be unprecedented, if it plays out as the IA signals indicate it most likely will.
Crony communism is the actual “fundamental transformation,” or better termed “fundamental destruction” of the United States of America that Obama promised in 2008. The people should have listened to him more carefully when he said that, because he wasn’t kidding around.
Many have believed that communism will never happen in the United States, because it would hurt the Crony Class the worst, given that they possess the most money. What the people repeatedly fail to comprehend is that communism is intended for and inflicted upon them, but never upon the Crony eleech. History proves that the eleech live like royalty in communist regimes. Two of the most glaring examples are North Korea and Venezuela, but the phenomenon has been identical in every single communist system that has been implemented to date.
One notable example of this reality is Maria Gabriela Chavez, the 35 year old daughter of deceased Venezuelan president Hugo Chavez, who has never held a real job in her life, yet who happens to be the country’s richest person with a net worth of $4.2 billion. This phenomenal wealth is thanks to the plunder her so-called communist father schemed for her to receive. As the Venezuelan people eat family pets to survive and starve in the streets, Maria Gabriela lifts not a finger to lessen their anguish, despite possessing a fortune that she could not possibly spend in two dozen lifetimes.
This illustrates the sheer hypocrisy of communist organizers: while they force wealth redistribution upon the citizens, they refuse to contribute one penny of their own wealth to anyone, let alone to the general welfare of their society. Communist organizers and their Crony Class brethren are not just greedy, they are cheap. Maria Gabriela’s pathological greed is shared by every single communist organizer we have researched, from Kim Jong Un to the Castros to the living, phony, self-righteous, well-known communist frauds in the United States.
The establishment’s vast wealth will never be subjected to communist expropriation. It will be stashed in various “Foundations,” which would be much better termed “Fraudations,” or “Slushfundations,” where it will be fully exempt from all forms of taxation and fees. Communist impoverishment will be for us, the people, not them, the establishment. Only the well-connected Crony eleech will be provided the necessary licenses to establish fraudations and thereby escape taxation and expropriation. The Clinton Slushfundation comes to mind, as a leading indicator of this sub-theme.
While it is not possible in this brief overview for us to outline in detail each of the building blocks that, combined, will result in the imposition of Crony Communism upon the nation and its people, we can provide a glimpse of some of the more important tactics that will be used. These factors are not theory; they are reality. Each and every one of these tactics is already in play at this time.
The notion of “After Tax Savings” will be destroyed. It will be said that only criminals or greedy, selfish, anti-social hoarders save money. Savers will be villified for hurting their fellow citizens and “the economy” by not spending. All income net of taxes will be forced to be spent, to prop up a phony economy structured to enrich the Crony eleech. Any legacy money existing when people die will be forfeited to the state via confiscatory death taxes such as those outlined, as a first step, in Clinton’s campaign platform. Zero and negative interest rates will ensure that savings are expropriated by banking institutions controlling those funds, and by inflation, which is guaranteed to significantly escalate. (See Venezuela.)
The “cost structure of life” will be increased to make it impossible for people to save, get ahead or become independent of the state. This cost structure will include ever-increasing taxes; health insurance premiums; insurance deductibles; medical costs; licensing, registration, inspection and reporting fees; surcharges; arbitrary fines; food costs; energy costs; currency devaluation- and inflation-related costs; and virtually every other category of expense related to simply surviving in the crony communist society. As people become impoverished and can no longer afford these costs, they will receive subsidies while those who are not yet impoverished will continue to be charged the full boat until they, too, require subsidies as they disappear into the financial morass. (See Obamacare.)
Citizens will be required to file not just income tax returns, but personal asset returns detailing every financial asset and physical possession they own. A financial dossier will exist on every citizen, making it easy for the state to pinpoint and expropriate whatever wealth it wants. Executive Orders will be in place allowing the government to seize any and all assets on any pretext it creates, such as ambiguously defined “emergency situations.” Please note: such Executive Orders already exist, just like everything else in this list.
Cash will be eliminated so that any money still possessed by citizens is electronic, non-withdrawable, controlled and available for seizure. This objective has been publicly announced and is on a fast-track development path right now.
Entirely new taxes, fees and fines will be imposed upon individuals and businesses. These charges will be said to promote “fairness,” “equality,” “togetherness,” and similar high-sounding but totally phony terms, and will be named such things as “Climate Improvement Contribution,” “Wage Harmonization Donation,” “Refugee Resettlement Offering,” and “Financial Equalization Gratuity.” Once one brand new tax category has been fully implemented, a new one will be introduced, in a never-ending cycle that will only stop when all the people’s money has been stolen and nothing is left to loot.
Wealth taxes will be imposed on all who possess assets net of the tax and fee dragnet, an idea that has been formally introduced by the IMF. Please note that IMF employees do not pay income taxes on their lavish, taxpayer-funded salaries; they are exempt, which is a perfect illustration of our fundamental point that taxes and fees will be meant for the people, and not the establishment eleech.
Mass immigration will be used to destroy the nation’s identity, skew elections and reduce resistance to the overthrow of the nation’s institutions, values and traditions. It will also be used as an excuse to create an entirely new set of taxes and fees, to pay the exorbitant costs of providing food, housing, medical care, transportation and other resettlement and living costs of immigrants and “refugees.” Currently, 70% of the American population has less than $1,000 in savings. The communist organizers never explain who is supposed to pay the costs of bringing millions of immigrants into the country, because they have no answer and don’t care; their agenda is domestic regime change. The United States is already bankrupt, so “what difference, at this point, does it make?” They will simply counterfeit more currency, even if it means hyperinflation, an event they will sidestep via indexation clauses that will benefit them, but not the people.
Guns will be banned, which has happened in every single communist and totalitarian regime throughout history. Gun possession by government agents, members of the eleech, and mercenaries protecting the eleech will be legal and authorized. See Venezuela.
The Alternative Media will be shut down, and replaced by State Media which will become the monopoly provider of “news” and “information.” This explains why the MSM is currently licking the establishment’s boots and pushing its agenda with media bias so extreme it is actually laughable and absurd. They realize there is a huge payday for them as State Media monopolists under Crony Communism. Again, state control of the media is a consistent theme in all communist regimes.
For IA to signal a theme, literally hundreds of datapoints must converge upon a common story. While the above list contains just a small number of factors, it is indicative of how this new theme has developed.
The objective behind the vast array of taxes, surcharges, regulatory and licensing fees, inspection fees, fines and the like will be to transfer the maximum possible amount of private assets from the citizens to those in charge of the Crony Communist regime. As the people are systematically stripped of their assets and impoverished, they will become increasingly and ultimately totally dependent upon the state for their existence. This, of course, is the point.
Accompanying the full-blown overthrow of the nation by the for-profit (for them) Crony Communist regime will be an endless litany of slogans, many of which have already been used to brainwash and confuse the people. Examples abound, such as, “Change We can Believe In,” “Owning the Future,” “One American Family,” Stronger Together,” “Forward,” “Hope and Change,” and the like. Soon, we will be hearing new ones such as, “Service over Selfishness,” “Don’t Get: Give,” “Talent Must be Shared with All,” all of them deriving from the famous communist mantra, “From Each According to His Ability, to Each According to his Needs.” Slogans have been a cornerstone of communist overthrows throughout history.
Every single element of Crony Communism outlined above is either already in place to a certain degree, or has been officially proposed and recommended by the government and/or the Crony Class mouthpieces and shills. The only thing that has not happened, yet, is for all of these elements to be pulled together into one, interconnected system of Crony Communism. It is the amalgamation of the individual elements that is now demonstrably underway, and this is the critical change that has been detected by the Inferential Analytics model. This change vastly accelerates the imposition of Crony Communism upon the nation, and makes all the difference.
Inferential Analytics is a descriptive, predictive and prescriptive forecasting method. Typically, we omit the prescriptive aspect in our reports, because we view people as intelligent beings who are best able to plan for their own futures once they have been given a good idea about what is heading toward them.
However, in this case, we are going to depart from convention and issue a prescriptive statement. We are doing this because Crony Communism represents such a radical, sweeping and dangerous departure from everything the American people know and value that many might simply be incapable of believing it can happen here, internalizing what it will mean to them personally, and taking the necessary steps to protect themselves from its onslaught.
As we await further information (the outcome of the 2016 elections will have enormous implications for the Crony Communism theme), two prescriptions for readers are these: First, politically speaking, if you support any long-term, professional politicians, you are voting for Crony Communism, because those people have everything to gain from it, and are working to make it happen. Second, financially speaking, you need to slam on the brakes right now and get your houses in order. This means that all expenses not absolutely necessary should immediately be eliminated. You need to generate and protect precious financial resources however possible, because they will be necessary to fund your escape from Crony Communism, should it go full-blown. We can assure decent, principled, moral, productive, tax-paying, everyday American people that you will not want to live for one minute under Crony Communism, nor will you want your loved ones to live under it, either.
We regret feeling obligated to delineate the Crony Communism theme, and pray that the IA forecast is wrong. Given the accuracy of the IA method, which has been successfully back-tested for many years, we believe it would be wrong of us not to speak out publicly at this time, because this theme has a very high probability of coming true unless the people rise up to stop it.
October 13, 2016
Stewart Dougherty is the creator of Inferential Analytics, a forecasting method that applies to events proprietary, time-tested principles of human instinct, desire and action. In his view, forecasting methods not fundamentally based upon principles of human action are unlikely to be reliable over time. He is a graduate of Tufts University (BA) and Harvard Business School (MBA), and has developed IA over a period of 15+ years.