Communism: The Four-Part Series

A generation has passed since the Cold War ended — and along with it, a true understanding of communism. Young voters today grew up in school systems where capitalism was often a dirty word. They heard the siren call of socialism and its promise of being the great equalizer. They’re in for a rude awakening.

In this series, Glenn discusses the origins of communism, what it really means and what lurks behind the pleasant label of “democratic socialism.”

The four-part series is compiled below for your convenience.

Part I: How It’s Marketed

When Karl Marx was born in Prussia (now part of Germany) in 1818, 94 percent of the world’s population lived in poverty. 84 percent lived in extreme poverty. Feudalism as an economic system left a lot to be desired, like food. The capitalist system, under the Constitution of the United States, changed all of that dramatically.

In one of the greatest achievements in the history of mankind, just 9.6 percent of the world’s population lives in extreme poverty today. Back in 1818, America was just 42 years old and still developing, but it was already becoming the envy of the world. The capitalist — or free market — system was beginning to take hold and pull this country’s citizens out of poverty. It offered new opportunities for millions of citizens and immigrants were beginning to flood its shores.

Europe was a different matter. Monarchy and feudalism was still embedded throughout much of the continent. But great change was taking hold. Industrialization was bringing scores of people from the country to the cities — which were quickly becoming overcrowded. This led to massive discontent.

Marx, who despised what he saw of capitalism, would take advantage of this discontent, becoming radicalized at an early age.

After receiving his doctorate in philosophy, Marx and his wife moved to Paris in 1843, where he would meet a man who would become his life-long friend and colleague — Friedrich Engels. The two had supposedly been drawn to the plight of the workers from their childhoods. They both believed profits generated by the companies that employed them were stolen from wages the workers should have received.

As the two fed off each other, they became more and more radical in their thinking, until they became all-out revolutionaries and were both expelled from France. They moved to Belgium and in 1848, began to work on a pamphlet to share their beliefs. Initially entitled A Communist Confession of Faith, the pamphlet — written mostly by Marx — was published as The Communist Manifesto.

In 1867, Marx wrote another handbook for communist thinkers, Das Kapital. It was published in his home country, Germany, and translated into many other languages. In it, Marx made the point that capitalism exploited workers, and property rights simply kept rich people rich and poor people poor. He went on to write two additional volumes, which were published after his death at the age of 64 in 1883, by Engels.

Marx never experienced the Communist Revolution he sought in his lifetime. But his ideas would be remembered in the minds of others for decades to come. One young Russian was heavily and immediately influenced by Marx’s writing — a 17-year-old boy named Vladimir Lenin.

Part II: The Scourge Spreads

Communism’s first leader — Vladimir Lenin — fell ill and died in 1924, setting the stage for Josef Stalin. Just as it had been under the first few years of communist policies, the Soviet Union fell into another great famine in the early ’30s. Stalin brutally kept food from starving people, ordering his soldiers to shoot and kill peasants that came near it. Adding to the five million who had succumbed to the famine of 1921, another six million people died.

Former Ukrainian president, Victor Yushchenko, in a speech to the United States, put the total number of his dead countrymen at 20 million. It was essentially a genocide of the Ukrainian people, believed to have been planned by Stalin to eliminate the Ukrainian Independence Movement.

By the 1920s and 1930s, an Austrian named Adolf Hitler, once considered a joke in Germany, was a joke no longer. After joining and rising to the top of the National Socialist German Workers Party — the Nazi Party — Hitler attempted a coup in 1925, winding up in prison where he wrote Mein Kampf.

In Mein Kampf, Hitler laid out his intentions for ridding Germany of Jews and invading multiple nations. Somehow, the book captivated the imagination of many Germans. Hitler himself made a fortune from the proceeds. In 1933, he became chancellor of Germany and began implementing the policies he’d laid out to the German people. Hilter saw his brand of National Socialism as much more progressive than Soviet Communism.

Despite their animosity, the Communists and the National Socialists shared a thirst for blood and a lust for power. Hitler launched World War II with the invasion of Poland, and Germany then marched into France and Belgium. Soon, Europe was entrenched in the biggest and deadliest war in human history, the “workers” they spoke fondly of trampled in the ascension to power.

Before it was over, Hitler and his National Socialists had conducted the horrific Holocaust, with the extermination of six million Jews, and tens of millions more dying as a result of the war.

By the end of World War II, Mao Zedong had gained control of northern China. He had convinced impoverished peasants to fight against Chinese nationalists, promising redistributed land and lower taxes.

Mao’s forces swept to victory, and the nationalists fled to Taiwan. But the poor in China never saw the promised equality or redistribution of wealth. Rather, Mao oversaw the starvation and slaughter of 60 million Chinese.

By 1981, five years after Mao’s death, 85 percent of China’s population lived in abject poverty. Yet Chairman Mao’s image appears on hipster T-shirts and coffee cups around the world, even showing up on Obama’s Christmas tree as a White House Christmas ornament in 2009.

As communism continued to spread across the Asian continent, World War II ended with Soviet troops occupying North Korea and U.S. troops in South Korea. The Soviets installed a North Korean communist leader to head the new communist government of North Korea. The Eastern Hemisphere had seen virtually nothing but bloodshed, oppression, and war during the first 33 years of communism and national socialism.

Unfortunately, communism eventually infected the Western Hemisphere, where another ruthless communist rose to power. Che Guevara, yet another Marxist revolutionary born to wealthy parents, was a ruthless, racist killer who seemed to have contempt for all those he pretended to care about. Like Mao, he is widely celebrated today by many on the American left as a hero of the worker and minorities.

According to the Black Book of Communism, during just the first year of Che’s revolution, firing squads executed 14,000 people. He sent thousands more, including homosexuals, to concentration camps. Che plotted the destruction of the Statue of Liberty, the Liberty Bell, the Washington Monument, as well as bombing Macy’s, Gimbels, Bloomingdale’s and Grand Central Station in New York City. In 1967, Che’s reign of terror finally ended, when he was executed by firing squad.

Despite the wake of oppression and death left by communism all over the world — 100 million peacetime deaths and millions more during revolutionary wars — many continue to glorify it to this day.

Part III: The Rise in America

America has been the single biggest force in changing the fortunes of the world, more than any other nation ever conceived. As such, you would assume the nation would be celebrated. And with many, it is. But with others, it’s mocked, ridiculed, derided, blamed and demonized. And then there are those within its own borders who have sought to fundamentally transform it.

Ever since communism took root in Russia and began spreading its philosophy around the globe, the United States has been fighting its spread from the outside. The more difficult battle, however, has come from within. Even with the freedom, prosperity and quality of life in America, for a variety of reasons, there have always been dissenters.

At the turn of the 20th century, men like Teddy Roosevelt and Woodrow Wilson adopted progressive ideology, believing the Constitution to be a living, breathing document. Like socialists and communists, progressives believe more in government than the individual. For them, the power and influence of government is the key to achieving social justice.

The term “social justice” has long been a euphemism for socialism and communism. Progressives share much in common with both socialists and communists, but progressives are simply more patient, willing to progress slowly, rather than through revolution.

In 1920, faced with a depression even greater than that of 1929, the Harding-Coolidge administration took a hands-off approach to government and cut spending in half. The economy bounced back almost immediately, bringing in the Roaring Twenties.

In 1929, however, the Hoover administration took the opposite approach, intervening to deal with the crisis. And in 1932, newly elected progressive Democrat Franklin Roosevelt became even more committed to government intervention and programs. The depression lasted another 13 years in America, much longer than the rest of the world, due to FDR’s so-called New Deal, with sky-high unemployment, rationing, inflation and a decade of misery.

By the ’30s and ’40s, suspicions were rampant that communists had infiltrated the highest levels of the U.S. government, although hard-core proof was hard to come by. Even U.S. President Franklin Roosevelt seemed to share the ideology of communists, proposing a second Bill of Rights that outlined work, rest and leisure, health protection, care in old age and sickness, housing, education and cultural benefits — rights included in the Soviet communist constitution.

The late 1940s and ’50s were a dangerous time for the United States. The Soviets had just successfully tested their first nuclear weapon after Soviet spies had stolen the technology from America. Communists took over China. And North Korean communists invaded South Korea, bringing us into yet another war. And a senator from Wisconsin, Joel McCarthy claimed to have the list of some 57 communists in the State Department. Eventually, even Hollywood entertainers, actors, directors and producers were blacklisted.

The social upheaval of the 1960s made the perfect breeding ground for a Marxist community organizer named Saul Alinsky to significantly influence young minds. Alinsky was a Marxist agitator, who believed that people could be agitated — even if they didn’t know they needed to be. The youth, affected by Alinsky’s Rules for Radicals, would grow up heavily influenced by him. However, rather than protest and agitate, they decided to effect change from the inside the political system.

Part IV: American Radicals

The lofty goals and idealistic promises of communism include income equality, thriving economies and perpetual peace. In essence, Utopia on earth. In reality, communism has resulted in millions killed during peacetime, continual war (or the threat of it), economic disaster, state-controlled media, governmental lies, labor camps, concentration camps, starvation, police states, lack of freedom and state-sponsored atheism. By its fruits ye shall know them.

Thanks in large part to the Constitution of the United States of America, Americans have largely avoided the fruits of communism --- but not entirely. There are those who believe America should scrap its founding principles and embrace Marxism, communism and socialism.

While very few openly advocate for communism, most hide behind the gentler moniker of Progressivism. Like Marxists, progressives seek social justice and the redistribution of wealth to obtain income equality. Unlike Marxists, they try to do it within the system rather than through revolution.

Some of American's radicals from the 1960s are now respected professors or politicians. Illinois' Bobby Rush, for instance, who cofounded the Illinois chapter of the Black Panthers is now a U.S. congressman from Illinois. This man who has helped write and pass legislation for the United States of America, had his apartment raided when he served as the defense minister for the Black Panthers. Police discovered illegal firearms, including rifles, a shotgun, training manuals on explosives, booby traps and an assortment of communist literature and propaganda.

Another respected member of American society is Bill Ayers, the cofounder of the violent, communist revolutionary terrorist group called the Weather Underground. Ayers is on record recounting an event in which a room of highly educated revolutionary figures plotted the logistics of eliminating 25 million Americans who were avowed capitalists that could not be "re-educated." Ayers later became a fugitive after bombings and plots targeting the military, police, the U.S. Capitol Building and the Pentagon. Astonishingly, Ayers never served time for his involvement with the Weather Underground, and later became a professor of English at the University of Illinois at Chicago. He was also a neighbor and fellow board member with another Chicago radical --- the future President of the United States, Barack Obama.

Obama spoke openly about preferring the company of radicals in college. What concerned so many about Obama was the sheer number of people around him throughout his entire life engaged in detestable acts that were contrary to the principles of the Constitution of the United States.

In his book, "Dreams from My Father," President Obama told of his close relationship with his mentor Frank, who turned out to be the card-carrying member of the Communist Party --- Frank Marshall Davis.

Obama's birth father was a Kenyan communist. His mother, a radical, as were his grandparents. After college, Obama's spiritual guide and mentor was Pastor Jeremiah Wright. He and Michelle attended his church in Chicago and listened to his sermons for more than 20 years, where Wright preached Marxist liberation theology and anti-Americanism.

The Marxist ideology of class warfare is a theme running rampant through the current election cycle for the next president. Hillary Clinton has been stoking the flames of class warfare. Self-avowed socialist Bernie Sanders is running is running on a platform of policies enshrined in the Constitution of the Soviet Union.

Certain Marxist principles have become so persuasive in America that progressives have not just taken over the Democratic Party, but they also have a foothold with the Republican Party. Somehow, the ideology that has produced more suffering on earth than literally anything else ever, has caused more peacetime death than anything, with the possible exception of infectious disease, has become celebrated.

Whatever the reality, the class warfare conducted by the left in America seems to be having an impact: There is a growing perception that communism and socialism are superior systems. In a recent poll, 11 percent of Americans believe communism is a morally superior system and 13 percent were unsure. Just 53 percent of Americans surveyed believed capitalism is better than socialism. A whopping 58 percent of America's college students have a favorable impression of socialism and 56 say the same for capitalism.

One of these ideological and economic systems --- capitalism or communism --- is responsible for pulling the world out of the Dark Ages and into the light of prosperity. The other is responsible for death and misery on an epic scale.

Listen to the Full Series on Communism

Part I: How It's Marketed

Part II: The Scourge Spreads

Part III: The Rise in America

Part IV: American Radicals

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Can you remember the economic crisis of 2008 and how you felt when the news broke that Lehman Brothers had collapsed? I have found an economic threat that everyone needs to be aware of, so you can prepare yourself in case we see another 2008 type collapse. I am going to present the evidence to you and I urge you to verify everything and to form your own opinion.

What is that threat?

It is a bank called Deutsche Bank. They are by far the most dominant bank in Germany which is the world's fourth-largest economy. In 2018 they had €2.08 Trillion worth of assets and the second-placed bank (DZ Bank) had €506 Billion worth of assets. To show you how dominant this bank is, they have more assets than the 2nd, 3rd, 4th, 5th and 6th sized banks combined.
When we review a business there are three key parts to analysis:

  • Market sentiment
  • Business numbers
  • Technical Analysis

Market Sentiment

Deutsche Bank has a long history of potential scandals including going all the way back to World War 2 and dealing in Nazi gold. Below are five recent stories which have increased the negative sentiment around Deutsche Bank.

  1. In 2007, they purchased a portfolio of loans worth $7.8 billion and purchased insurance from Warren Buffets Company. It was discovered they did not set aside enough capital to cover any potential losses. Over the course of the ten years, they lost $1.6 billion, and when they sold the loan they did not update their financial statements to include the big loss
  2. The Panama Papers are an ongoing investigation looking for many things including offshore tax havens. These investigations have resulted in several heads of state resigning including in Iceland and Pakistan. Last November, 170 police raided 6 different offices in Frankfurt looking for evidence of money laundering.
  3. Estonia is a small country in Eastern Europe. It has a population of 1.3 million people and a GDP of €26 billion. In January, it was discovered Deutsche Bank got involved with a Danish bank called Danke Bank and processed over $230 billion worth of cross country payments (including from Soviet Russia) through one bank in Estonia.
  4. There have been rumors of issues with Deutsche for a while now and one of the solutions put forth was a merger with a bank called CommerzBank. The leaders of both companies met and they even got support from politicians. In April, news broke that the merger talks had failed because over worries the risks and costs would be too great.
  5. Last week in France, Investment banking boss Garth Ritchie and others were arrested in France over illicit tax transactions.

Business Numbers

Deutsche Bank is already struggling as they are losing staff, losing market share, and bonuses are expected to be down at least 10% and further rounds of cost-cutting to come. Now imagine the impact if business costs start going up.

The banking industry works in a very simple way. They raise funds through large bonds at low-interest rates and then sell those funds to business and individuals thru products like loans and credit cards at a higher interest rate which results in a potential profit.

Earlier this year, Deutsche Bank tried raising money through several bonds. They paid 180bp (basis points) on a two-year bond and 230bp on a seven-year bond. Let me put this in context for you. There is a small bank in Spain called Caixabank which paid 225bp on a five-year bond and one of the larger banks in Spain, BBVA paid 130bp on a five-year bond.

  • How and why is a small bank in Spain getting a better deal on bonds than a huge bank in Germany?
  • Why is a large bank in Spain getting a bond 100bp cheaper than a German bank?
  • What does the market know that we do not?

Stock Price

Deutsche is also missing revenue projections which further hurt the business ability to survive and prosper. As you can imagine all of this news has a deep and lasting impact on its stock price which is in deep trouble. Before I share the stock price, I need to put this into the context of the market and the industry compared to the big economic crash of 2008. Below you will see a chart of some banking stocks from around the world with their peak price prior to the 2008 crash, the low of the 2008 recession and the price today:

As you can see from the above chart the banks in America have recovered from the 2008 recession by anywhere up 375% and JP Morgan has not only recovered its price in full but is constantly setting new high's. Ireland went bankrupt and had to be bailed out by the EU/IMF following the 2008 crash and even our national bank has more than doubled its price since 2008. The worst performing bank I could find was Societe Generale which has issues but is still hovering around its 2008 low price levels.

Now let's put that into the context of Deutsche Bank. Not only has the stock not rebounded but it is over 65% below its 2008 low at $6.75.

Technical Analysis

When you are dealing with the stock market, you also have people who study pricing through technical analysis. Experts look at things like FIB sequences, trend lines, and support levels. Support levels are a key metric for a stock failing because are looking to find where it will find support and potentially bounce higher.

We are very close to a key support level ($6.40) and if the price goes below this level, there is no saying exactly how low the price could go. At least one company expects Deutsche to fall below this support level, as several weeks ago UBS downgraded the stock to a sell order. This news was compounded last Friday when rating agency Fitch, downgraded their credit rating to BBB or two levels above JUNK status.

Other Information

I know you are likely reading this and thinking "this bank must have smart people in charge and surely they have a plan, right?" I am sure there is a plan and while they have kept their cards close to their chest, they have spoken in the past about the areas they foresee having growth for the company – they include business in Saudi Arabia, UAE, and Egypt. Do they strike you as countries which are stable and will offer steady and reliable growth? Do you have to think really hard to imagine how this could go potentially very wrong?

Questions

I believe there is at least a solid case Deutsche is in a LOT of trouble. So what are possible scenarios for the future? I will lay out the key questions below but I must stress that it's impossible to say for sure what exactly will happen. One of the key numbers to remember here is they have roughly €50 billion worth of derivatives.

  • How likely is it that the bank can turn things around and survive?
  • How likely is it the bank continues to run into trouble, its stock price fails and eventually fails?
  • If you think it is likely it will fail, the question becomes what will the fallout be? Who will be affected?
  • Will they be bailed out?
  • If so, by whom? The German government, ECB, IMF, the Federal Reserve?
  • What will the German government think? Some members recently spoke out saying they would block public money for the proposed merger? Will they block funds if it failed?
  • Will other banks be exposed and affected? Will they have to take losses?
  • Will those losses be spread around or will one or more bank be mainly affect?
  • Will this affect the sentiment of the banking sector and cause a panic?
  • If there are issues and it starts affecting the stock prices, what will be the impact on other industries?

Last Question

The last question revolves solely around the banks and the regulators? How secure are the other banks? We all hear about how banks are now put through "stress tests" but how much trust do you put in those results? How much trust do you have in the regulators?

I know this may make me sound like a conspiracy theorist to some but it's an honest question. The Fed is on public record saying they want to keep this economy strong as long as possible. If a bank did not perform strongly in a stress test or even barely failed one, do you think they would report it?

Can you imagine the pressure that body would come under to stay silent? Can you imagine the rhetoric they would face with questions like, "Are you really going to fail one bank? Do you know how many people will lose their jobs if you do that?" Am I saying this is happening? No, but can you really rule it out 100% as a possibility?

I urge you to ponder on these questions, do your own research and find YOUR answers.

Update: The most freaquently asked question I have received from this column / show is how much time do we have to prepare. This is an impossible question to answer, as it could fail tomorrow, next week or might be next year. However I want to provide you a potential date for your diary – July 24th. That is when Deutsche will release their next earnings report and if it comes in below expectations, it could cause a further drop in price casting more doubt over the future viability of the bank.

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Survey: Where do you stand on these conspiracy theories?

Thought Catalog / Unsplash

Have you seen this survey on the most-believed conspiracy theories in America?

It's no surprise the survey has been getting so much attention. The results are actually a pretty disturbing.

Infographic: Belief in Conspiracy Theories in the United States | Statista

I decided to put together a quick survey of my own, with slightly different wording.

Up-vote the ones you agree with and down-vote the ones you disagree with.

I believe Lee Harvey Oswald killed JFK alone. However, I would not be surprised to find out the government sealed evidence that others were involved.

If by "deep state" you mean long-time Washington power brokers who are used to calling the shots and now feel threatened by Donald Trump not listening to their advice or council — yes, I do believe that many people like that are working against him and his administration.

Whether alien bodies are in Area 51 or not, I do believe the government knows more about UFOs than they have told us.

I do not believe the U.S. government was involved in 9/11, but as we know, NSA advisor Sandy Berger was caught destroying documents from the national archives related to both Bush and Clinton. All U.S. administrations have been to close to the Saudis, and the Saudis were involved in 9/11 at some level.

I believe the climate is always changing — it's natural. I would be willing to accept that man MAY play a role in this. But I do not believe in the solutions currently being discussed, nor do I believe the intention of most political activists are pure.

Any talk of the Illuminati provides the true dangers to man's freedom — like very powerful NGOS and men like George Soros — a perfect cover.

The U.S. government has done some horrible experiments on people and land — I also suspect they will do more things in the future. But I do not believe in the systematic spraying of chemicals using chemtrails.

The moon landing was real, but I see a time coming when people will not be able to trust their eyes due to deep fakes.

What do you think?

Let me know in the comments section below.