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From the author of: The Survival Guide For The One Percent


chapter two, Production, and purchasing

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Over the last few decades, our country has ceased being a manufacturing, and agricultural based economy. I put agriculture in italics, because we're allowing ourselves to lose in that as well. Hold on to that thought, however, because the subject I started above comes back later. We have, instead, become a consumer based economy. I consider this an appalling development, and my kids, and grandkids are fully aware of how opportunities, when I was in my twenties, and thirties, were far from what they experience now. I was in the early stages of my career, when Silicon Valley came to be. It was the beginning of a new era. I grant this manufacturing, and technology development was geographically confined to several states. Those times, although somewhat volatile, were replete with opportunity.

It was also the beginning, of the beginning, of the end of a middle class. When Bush 41 came to office, it was clear he, and his international market concept were closing the coffin containing those opportunities, and putting nails in the lid. Although I am lucky enough to see my kids through college, and be able to qualify for jobs that pay above minimum wage, Bush's concept minimized their opportunities. The exporting of jobs went in to high gear. Political parties began adjusting employment statistics, and suggesting jobs were plentiful.
[employment statistics] More Information on the topic:
Any political party that concludes a fast food job should be included, and utilized to influence employment statistics is deliberately lying to their constituents. We got stuck in a consumer based economy; they promoted exporting jobs, and they're surprised with high unemployment percentages.

(The Occupational Employment Statistics (OES) survey is a semi-annual survey of approximately 200,000 non-farm business establishments conducted by the Bureau of Labor Statistics (BLS), headquartered in Washington, DC with six regional offices and one office in each state.)

By 1989 it was clear Bush had thrown things out of whack, and gave his reelection opponents the slogan "It's the economy Stupid." Clinton had no intention of repairing it, regardless of his speeches.

Clinton, ignorant, or not, about the full impact of the legislation, signed into law the "Financial Services Modernization Act." It was the true cause, and real beginning of the 2008 crash. The act removed ALL the protections against banks returning to the conduct that put us into the Great Depression. It removed the ability of the SEC, or any other financial regulatory agency, the authority to regulate large investment bank holding companies. The legislation was signed into law by President Bill Clinton, in 1999.

The Gramm–Leach–Bliley Act (GLBA):
The Gramm–Leach–Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999 and commonly pronounced ″glibba″, (Pub.L. 106–102, 113 Stat. 1338, enacted November 12, 1999) is an act of the 106th United States Congress (1999–2001).

It repealed the Glass–Steagall Act of 1933, removing barriers in the market among banking companies, securities companies and insurance companies that prohibited any one institution from acting as any combination of an investment bank, a commercial bank, and an insurance company. With the bipartisan passage of the Gramm–Leach–Bliley Act, commercial banks, investment banks, securities firms, and insurance companies were allowed to consolidate.

Furthermore, it failed to give to the SEC or any other financial regulatory agency the authority to regulate large investment bank holding companies. The legislation was signed into law by President Bill Clinton.

(A year before the law was passed, Citicorp, a commercial bank holding company, merged with the insurance company Travelers Group in 1998 to form the conglomerate Citigroup, a corporation combining banking, securities and insurance services under a house of brands that included Citibank, Smith Barney, Primerica, and Travelers. Because this merger was a violation of the Glass–Steagall Act and the Bank Holding Company Act of 1956, the Federal Reserve gave Citigroup a temporary waiver in September 1998. Less than a year later, GLBA was passed to legalize these types of mergers on a permanent basis. The law also repealed Glass–Steagall's conflict of interest prohibitions "against simultaneous service by any officer, director, or employee of a securities firm as an officer, director, or employee of any member bank".)
   about "The Financial Services Modernization Act"

By now, we're on the wrong track, and getting out would be a bitch. During the research for my novel, however, I discovered some terrific examples of some young people taking advantage of the dissatisfaction people possess, with our present situation. Here are some of them:

Looking more closely at the core structures of their new businesses, one finds far more than them filling a specific niche. They demonstrate the new "production" within America. Their customer, and client base illustrate a new "bought" in, and from Americans. I consider these developments to be a very bright new horizon developing, within this country.

There are two levels of new ventures. One includes companies that most of us will not be utilizing directly, or produce products that are likely beyond our budgets. I want to focus on a couple of these, before I show some that are far more likely to assist a classic middle income buyer. A terrific example of this comes from a demise of Walmart, and is described below. Click here to move down the page to portion of this article.

These are two wonderful projects, but they need high end capital, and they couldn't have done things without it. Examples are below, and both are bringing some great jobs back to America. The only problem is that they are both created by the same genius of a guy, and they required what is known as "Shadow Banking".

An alternate source of capital:
The big banks no longer make enough money from classic banking to satisfy themselves. They're too busy on Wall Street, since the Financial Services Modernization Act of 1999. Others were needed to fill that niche.

The shadow banking system is a term for the collection of non-bank financial intermediaries that provide services similar to traditional commercial banks. Former Federal Reserve Chair Ben Bernanke provided a definition in April 2012: "Shadow banking, as usually defined, comprises a diverse set of institutions and markets that, collectively, carry out traditional banking functions--but do so outside, or in ways only loosely linked to, the traditional system of regulated depository institutions.

Bernanke would never be a fan of shadow banking, since it operates outside the standard control of the world's central banking system.

More on Shadow Banking below...
   about "Shadow Banking"

  • SpaceX:     From Wikipedia:

    "Space Exploration Technologies Corporation (SpaceX) is an American aerospace manufacturer, and space transport services company, with its headquarters in Hawthorne, California, USA. It was founded in 2002, by former PayPal entrepreneur, and Tesla Motors CEO, Elon Musk. The goal is creating the technologies to reduce space transportation, costs and enable the colonization of Mars. It has developed the Falcon 1 and Falcon 9 launch vehicles, both of which were designed from conception to eventually become reusable, and the Dragon spacecraft which is flown into orbit by the Falcon 9 launch vehicle to supply the International Space Station (ISS) with cargo."

    In mid December, 2015, they pulled off one of the most significant launch, combined with a successful return, and landing back at the same launch pad, of the first stage. The vehicle also deployed 11 communication satellites. All of this accomplished from one vehicle. It brings that technology, long dominated by the United States, back home to the good ole' USA. We will likely not be utilizing this company directly, but they will reduce our costs for communications dramatically.

  • Tesla:     From Wikipedia:

    Tesla Motors, Inc. is an American automotive, and energy storage company that designs, manufactures, and sells luxury electric cars, electric vehicle power train components, and battery products. Tesla Motors is a public company that trades on the NASDAQ stock exchange under the symbol TSLA. In the first quarter of 2013, Tesla posted profits for the first time in its history.

    Please note that although most of us will not be lucky enough to purchase one of their Roadsters, they are also an Energy Storage company. They have made enormous advances in battery life, and storage capabilities. That will, most certainly, bring all of us improvements in daily life. Their Roadster not only abandoned the internal combustion engine, they put electrical motors on EACH wheel. Power train horse power losses will improve the options we will all obtain in future automobile designs, even in the affordability of autos made for the middle class.

They're examples of the changes that need to be made. They're also doing it, for the most part, utilizing people, and capital, from what has become known as Shadow Banking. There is good news, and bad in that.

The nature of Shadow Banking
Shadow banking is what used to be called the “Secondary Market”. It meant that you would have to obtain capital from sources charging significantly higher interest rates. Venture capitalists were a component of the secondary market, but didn’t like the reference. They thought themselves an honorable breed. They’re 15% interest rate often accompanied a 35% stock position, and a first money in, and first money out clause. The rest of the secondary market included lenders that required extensive collateral, as well as very high interest rates. They were like the shark taking the last bite before you died. Even if you died, they had fed themselves quite adequately.

Since banks no longer offered their depositors interest rates even mildly acceptable, the one percent became a new source of capital, and often with improved rates, and conditions for the borrower.

The problem that now exists, since their entry into the market, is the stability of the U.S. dollar, or the Euro. A bank, or commodity house may consider the dollar, or the euro to be little more than a commodity, with which they could engage in purely speculative trading, or manipulation. The One Percent, however, now believe that since they earned those dollars, and they don’t like their value to be altered by others, their money is more sacred than the views held by bankers.

There is a new form of a revolt like confrontation between the One Percent's perception of their portfolio's value, and the view of the world's central banks. The even greater challenge is the spin offs from the BitCoin. Banks are creating versions of a new alternate, and de-centralized digital currency.

BitCoin, and these new decentralized digital currencies, is the focus of the next chapter.
  on "Shadow Banking".

Back to the big game, and the American consumer:

Those I want to illustrate as examples also demonstrate the capability to "Bootstrap" a new technology. They didn't go to shadow banking, nor did they start with a plan that asks for $500 million, from the government, to build a solar panel manufacturing business. The worse case of this is described, if you mouseover the text below:

[ Thanks, Barak. You didn't just make a fool of yourself on that one.
Mouseover this text for further details. ]
Solar panel manufacturing plant fails...
As soon as you provided those funds, you put a target on their back.

Soon thereafter, that company found themselves with the government responding to their antagonists' lobbying efforts to slow, or shut them down.

Those same critics, and antagonists, then provided nearly $1 billion to manufacture the same product in southern Idaho, but this time the funds went very quietly to a Chinese company.

This company also failed, after using government dollars, but when it failed, it received little media attention.

I live in northern Idaho. Idaho from south to north is like traveling to two different planets. The south is incomprehensible to those of us in the north, but to have them waste a full billion of government USD's isn't surprising. Neither is them keeping the press from saying anything about it.

Most, to all, have one principle in common. They change how things are made, and bought, and they kept an eye on the advantages they created for all of us, by providing a de-centralized source of product.

One of the first companies these methods might injure is Walmart.

Making Walmart hurt would be a terrific caliper of the U.S. consumer climbing back out. More importantly, it could demonstrate that a new made, and bought scenario could provide the U.S. citizen an improved source, as well as improved quality of food, and food related products.

Go to Green Sense Farms' website and check out their production capabilities. They are the real thing as depicted in the images shown below. Go to Green Sense Farms' Google maps location to check out their kind of building structure. They are claiming some amazing figures on what number of people they are able to feed. I am not claiming their numbers are actual, but if they are, we do not have a problem. So when the hell are we going to replace our outdated methods, with these?

Click on the image above for credits for the image,
and to see their facility.

Walmart has changed enormously, since the death of its founder, and now possesses the same international marketing strategy that has been forged into most of the high capital requirement industries. They are forced to remain in that model. We, the middle class consumer, while fighting back for our lost ground, do not have to remain their customers. Without us, they can not sustain their model.

If you want to know if you're in that group, and fighting back for lost ground, you likely are, if:

  • You're continuing to read this article. (Unless you're here to find out, "Who is this potential anarchist I have been hearing about, and how do we shut him up.)

  • You find yourself, by necessity, in Walmart, and hating every second. You're rushing to get what you need, so you can get the hell out. Being in Walmart by necessity, and hating it, also includes having to be there to purchase consumer electronics, or any product that, as a result of them selling the product, has driven their competitors out of business.

      (If you're happy to be in Walmart, sorry, but you deserve it. What percentage of their grocery, winter fruits, and vegetables, or packaged, and frozen food products come from countries that have "zero" regulations to protect you from manufacturing, or health related defects? Why do you think lobbyists fought so hard against labeling laws?)

  • You did business with Bernie Madoff. You purchased your home in 2003-2007, and are still waiting for the price to recover. You had a terrific job, but lost it, soon after 2008.

  • You are part of the very long list of people injured, in one way or another, by the financial services industry. That list would be too ridiculously long to enumerate.

Next time you're in Walmart, stop for a moment to look around at something you likely never have. Watch out !! The people behind you may be on a mission to get what they need, so they can get out.

Imagine the Walmart store, without any customers in it. Look around, and towards the ceiling area, so you can comprehend the size of the interior of that building. Now imagine it empty. For what could be a dozen, or more reasons, their business model crashes. For example: products from China are no longer making it to America.

(This one is easy. China is increasingly flexing its muscles, in the South China Sea. The U.S. Navy is responding. A single confrontation, and China could, and likely would, retaliate with a trade war. Walmart manufacturing base would have it products piling up on the docks, with no way to ship them here. Two of the U.S.'s largest corporations would be in big trouble. Walmart, and Apple.)

Now imagine the very best reason. Due to their failure, "YOU", and everyone who hates being there, no longer has to return to that building, while it continues to display a Walmart sign on the front. It is no longer a Walmart, because there was an alternative, and far superior use for that building.

When Walmart decides where, and how large a new store to build, it does so based upon a set of Demographics. There is an extremely interesting correlation between Walmart demographics, and another set. These demographics assess the size of buildings required to feed a given number of people, when utilizing a new paradigm in agricultural production techniques. The number of people Walmart needs in a specific area to build a regular store, or a super store, and the size of a building necessary to feed that same number of people, are within less than a 2% difference.

Back to Green Sense Farms, because they utilize one of those buildings, and produce foods with the new paradigm in agricultural production:

Go to Green Sense Farms' website and check out their production capabilities. They are the real thing as depicted in the images shown below. Go to Green Sense Farms' Google maps location to check out their kind of building structure. They are claiming some amazing figures on what number of people they are able to feed. I am not claiming their numbers are actual, but if they are, we do not have a problem. So when the hell are we going to replace our outdated methods, with these?

Click on the image above for credits for the image,
and to see their facility.

Below are some conceptual images of these building types interiors, as well as the conversion of the big box store parking areas into agricultural production. The production numbers for the quantity of people fed did not include the parking lot conversions. That production increases the number that can be fed, and can be utilized for growing fruit, or wheat, for providing flours, and even corn.

Interior of converted store. Image Credit: - big-box-agriculture

Converted parking lots. Image Credit: - big-box-agriculture

Original parking lots Image Credit: - big-box-agriculture

Converted foot print. Image Credit: - big-box-agriculture

An alternate design by another firm. Image Credit: Hammers Partners

Captive bred giant freshwater prawns (Macrobrachium rosenbergii). Image Credit: Professor Amir Sagi

The giant freshwater prawns, shown above, have a 30 plus year history of successful indoor aquaculture production. The freshwater, within which they grow, also becomes the source of nutrients for the hydroponically grown vegetables, within the building. Numerous species of fish are also placed into aquaculture production insuring access to an adequately high protein, to carbohydrate diet.

All the required foods, with a few exceptions such as fruits trees, are very easily produced, within the same space you find in a Walmart. Fruits trees could be covered by utilizing space outside the buildings, in what used to be their enormous parking lots. Except for the area below each tree, the asphalt remains, and is utilized to increase heat, and allows wet season access. The irrigation is by drip systems to reduce evaporation losses. All storm water, instead of being allowed to run off to storm drains, is collected in rain water harvesting tankage systems.

This type of cycle can be utilized within regions typically short of freshwater, such a southern California, or Arizona. The climates of both regions also demonstrate that a rooftop solar system covers over 85% of their electrical needs.

Rice has been successfully demonstrated to be a viable hydroponics crop, and can be grown in tiers, so as to quintuple production per square foot. (Economically viable exterior concrete wall elevations of the buildings have, so far, prevented more than five tiers.)

The foods items that need a improved solution are wheat, and corn production. They take space, and a lot of it. Wheat, and corn production, when seen being grown on vast scales, is done so in anticipation of supplying markets as far away as Europe, and Asia. The population models for these structures anticipates a customer population of 25-50,000. If the wheat, and corn are grown exclusively for flours, the parking lot areas begin to approach the required surface areas.

Even some of the toughest products can return to decentralized sources.

The goal, for local de-centralized production, is to provide needed foods, and to include protein at a reasonable cost. There are plenty of physicians that claim that the obesity problem is created by the high cost of protein. Pasta is far cheaper, by comparison. High protein diets consume calories to digest, so having pasta with a meal possessing adequate protein, will not increase body fat levels. Pasta alone? Well, you can guess.

Since rice has been solved, within these designs, you should expect your diet to become quite similar to that of classic asian. I have little problem with that transition, and in many ways I prefer it.

In all that I have described above, regarding local production, please note that local communities, and even cities, can begin a process of obtaining not only quality, but sustainability. These facilities can provide a continuous source of food, regardless of seasons.

Novel title image

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