FRONA and Jobs

October 16, 2012

How High is High?

By Russell D. Longcore

American politicians, constantly jonesin’ for a vote fix to satisfy their addiction for power, promise that what THEY propose will return “high-paying jobs” to America once more. Messrs. Romney and Obama are presently jockeying for position on this very topic. It’s one of the most cynical, dastardly lies they tell to credulous Americans and to each other.

The Free Republic of North America will be the only location on the planet where high-paying jobs will again exist. But it won’t be for the reason most people think. More on that later.

For a quick primer on what a job is, go to It’s Demand, Stupid! and read it.

If you visit DumpDC regularly, you know what a “connotation word” is. I have written about them many times. “High-paying jobs” is a connotation phrase. A connotation phrase is one that carries a subjective cultural or emotional association. An example of a connotation word is “God.” Your emotional or cultural interpretation of that word might be the little statue in the corner that you bow down to, burn candles to, and offer chicken blood on an altar. Another person’s mental picture might be the God painted on the ceiling of the Sistine Chapel. But I can manipulate you by the use of the word so that you either agree with me or disagree with me. My definition of the word or phrase is probably not the same as yours. A dishonest person used that to his advantage.

So it is with “high-paying jobs.” What does “high” mean? As compared to what? What is the yardstick with which we measure high-ness?

I contend that high-paying jobs are a relic of the American past, never to return to American shores. Let me walk you through my thought process on this issue.

The level of technological manufacturing has never been higher than it is today. A large percentage of that manufacturing is done outside the USA. American manufacturers are getting their products built overseas. But has quality gone to hell?

No. It’s better than ever. But market forces are at work globally…even in a market distorted by the Dollar.

In the free market, competitors will challenge your offering of goods or services in one of three ways:

1. Same product, better price
2. Better product, same price
3. Better product, better price

Where are LOTS of the highest technology products of the planet built? China. China has cornered the market on technological manufacturing. According to Forbes.com, tech workers earn about $1.50 per hour in a company like Foxconn, which manufactures the iPad, the iPod, the iPhone, Kindle, Playstation and Xbox 360. But its 2011 revenue was $102.74 BILLION. And the world snaps up its manufactured products as fast as lightning.

Here are some tidbits of information about your Chinese competition:

1. In China today there are over 320 million people that speak English. That means they are all at least bilingual. It is also a number greater than the entire population of the USA.
2. The US individual savings rate is zero. The Chinese individual savings rate is 34%, and a lot of those savings ARE IN GOLD.

You can tell me about currency manipulation, free trade agreements, tariffs, duties, and lots of other advantages or disadvantages allegedly held by one nation or another. But here is what I observe:
1. A bilingual Chinese worker will be trained to perform very high-tech world-class manufacturing skills…and then perform those skills for about 15% of the wage that American workers expect.
2. The American corporations that manufacture offshore are not subject to the burdensome American regulations (like OSHA and ADA) that they suffer on American soil, are they?
3. Offshore workers are not subject to unemployment insurance, Worker’s Compensation or Obamacare, are they?
4. American corporations can lawfully incorporate in other countries and leave their profits offshore so they are not subject to confiscatory Washington taxation, can’t they?

So just exactly HOW and WHY are American corporations going to bring “high-paying jobs” back to North America? What would be their motivation? All of the reasons they moved operations offshore still exist, and Washington is not going to roll back laws, taxation or regulation to bring those jobs home. Corporations exist to enrich the shareholders, not to perform some social function for “the greater good.”

Now let’s discuss what Washington has done to cheat the entire planet.

The world economy is a balloon inflated by the US Dollar. The tools Washington has used are (1) fiat currency, (2) fractional reserve banking, and (3) inflation caused by issuing trillions of dollars with no underlying value. Because the dollar lost 95% of its value since 1971, wages have been stagnant for over 40 years.

According to InflationData.com, you would need $568.84 in 2012 to have the same buying power that $100 had in 1971, the year in which Richard Nixon closed the gold convertability window for the US Dollar.

So, using the same calculator, a non-union carpenter that earned $10.00 per hour in 1971 would have to earn $56.88 per hour in 2012 just to have the same purchasing power that he had in 1971. Do you know any non-union carpenters that earn $56.88 per hour? Neither do I. And remember…that $56.88 does not reflect any raise in pay due to an increase in productivity. THAT IS JUST TO BREAK EVEN and maintain purchasing power. $56.88 times 2,080 hours (40 hours/wk. x 52 weeks) is $118,310.40. Once again…do you know any non-union carpenters who earn $118K per year? Me neither. I can hire all the carpenters I want today for $25 per hour here in Atlanta.

This calculation is the same for all of us. Inflationdata.com states that the average annual inflation rate since 1914 is 3.24%. That is 98 years, friends. I think it has become a trend by now. And, because of the Quantitative Easings I, II and III, the inflation rate is poised to skyrocket into insolvency. DC has no choice but to either continue printing fiat money and buy Treasury bonds, or allow interest rates to increase, which will drive DC into insolvency. There is no third choice for Washington.

Dear Readers, is there any solution for this problem? Yes there is.

SECESSION.

The Free Republic of North America will be able to DOMINATE the global manufacturing marketplace because of:
1. Its metals-backed money. Precious metals money NEVER has inflation. EVER. The free market determines the prices for goods and services based upon metal weights, not fiat currencies. Hard money chases out bad money. FRONA has no central bank, and therefore has no opportunity to steal from the citizens through monetary policy. And by protecting the value of the money by not regulating or monopolizing it, FRONA creates an irresistible draw to businesses. Imagine living in a place where you KNOW your money will have the same value year in and year out.
2. The business of the Free Republic of North America is business. FRONA’s charter commitment to individual liberty and property rights naturally favors transactions between individuals. And businesses are organic extensions of individuals. What is a corporation but individuals investing together seeking a return on their investment? When property rights and contracts are held sacred, and not subject to governmental abrogation, business can thrive.
3. Regulation. FRONA’s Founders were smart enough to write a simple Charter that gives FRONA very limited functions. All else is left up to the citizens of FRONA to figure out on their own in the free market. FRONA will not be weighed down with the American-style regulations that chased business from its own shores. The absence of regulations will be an irresistible magnet to global companies to locate within The Free Republic. And don’t forget that the cost of American regulations is built into every product. But not in FRONA.
4. Taxation. No corporate taxes? No property taxes? No duties or tariffs? No Social Security, Medicare, or income tax withholding? Entire accounting departments that exist in American companies will not exist in FRONA companies. No tax other than the national sales tax could mean lower priced goods and services, or more profit for the business owner. Or both.

High-paying jobs are jobs in which the labor cost of a product or service allows an individual to trade his time for money at a price that may use less of his time and provide more free time for that individual. High-paying jobs are a function of what any goods or services take to produce. High-paying jobs are those in which the workers have a superior level of training and/or experience, and they are able to negotiate more money paid to them per hour of labor. And all that is due to the free market, which decides the price of any goods or services by supply and demand.

In FRONA, people will no longer denominate every transaction in Dollars. They will conduct commerce in WEIGHT AND PURITY. When someone asks your hourly rate, you might reply that you work for one ounce of “999” (99.9% pure) silver per hour. In today’s US Dollar, that would translate to about $34.00 per hour.

So the high-ness of a so-called “high-paying job” will be relative to the monetary unit in which it is measured. Sure, there will be high-paying jobs in FRONA. But not measured in Dollars. And they will exist because FRONA has created THE ONLY free-market environment where they can exist.

If US politicians can get you jobs that pay $56.88 an hour, but that money has only the purchasing power of $10 in 1971, what have they actually done for you? They have stolen your money’s value. And the higher the inflation rate, the more dollars it will take to buy goods and services. So if you earn $500 an hour or $5,000 an hour, you’re a sucker and DC knows it. They count on it.

Secession is the only hope for mankind to enjoy individual liberty and property rights in North America.

DumpDC. Six Letters That Can Change History.

Copyright 2012 Russell D. Longcore. Permission to reprint in whole or in part is gladly given, provided full credit is given.

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The FRONA Constitution

October 12, 2012

By Russell D. Longcore

FRONA is the acronym of The Free Republic of North America. This is my fictional name for the first american state that secedes. As I continue to write about state secession, I will use FRONA as my example of how I think secession should be done.

After I posted the article “Life in FRONA,” I started getting messages about how my corporate model is a bad idea. Of course, the complainers did not offer any better ideas, or any ideas at all. Just whining. So let’s look at how the FRONA charter would be structured.

LEADERSHIP

Somebody has to start this ball rolling. So a group of individuals will have to organize and create the Declaration of Independence, the Ordinance of Secession and the FRONA constitution (hereafter called the Charter).

Secession will spring forth from guys like me and folks like you. We have to do the intellectual heavy lifting now to prepare for our opportunity for liberty.

When it comes time for secession, the impetus may come from the grass roots folks, but it probably will end up in your state house. Most folks look to their state government as the leaders of their state. Unfortunately, for the most part, governors and state legislatures are the farm club for the Washington team. We should be extremely wary of any person who governed under the old system that failed. Remember that they approved of fiat money, fractional reserve banking and central banking. So I contend that the only thing that will motivate politicians toward secession is the economic collapse of the USA with the death, destruction and crime that occurs when The Shyt Hits The Fan.

Will the state that is contemplating secession actually consider a new way of organizing, or will the leaders simply keep doing the same things that failed…just with new bosses? My pragmatic side tells me “meet the new boss, same as the old boss.” Most of the population of the USA is so inured to “democracy” and Federalism that they cannot think. I’m betting that deprivation on a massive scale will jar the people who want to survive into considering a Plan B.

Think back to the days before the Continental Congress formed in 1774, before meeting to hammer out a Declaration of Independence. None of the men were “elected” by ANYONE. Many were delegates sent from the Colonies. Benjamin Franklin wasn’t elected to anything. He was simply a revered and influential intellectual of his day.

Everybody that showed up to organize the “D of I” wasn’t a fan of fighting King George. But they were committed to liberty. The group accepted parliamentary procedure as a framework in which to conduct their business.

I will deal with a Declaration of Independence another time. It is that document that will identify the new nation as The Free Republic of North America, known as FRONA. And the signatories will be the Founding “Fathers”…girls also welcomed to the club.

**BIG POINT**

Stop thinking about a new Constitution like the US Constitution. Even the Articles of Confederation are not relevant. Why? A state that is seceding is becoming a NATION. The stuff that deals with state’s rights, etc, don’t matter in a single nation. Frankly, there is a lot in the US Constitution that should be kicked into the ashbin of history.

**END OF BIG POINT**

I have already written an article on how to secede with Here is How To Secede From The Union.” Read it.

When the FRONA organizational group begins, it should utilize the framework of parliamentary procedure also. Robert’s Rules of Order would be a good place to start.

When a FRONA is created, the first officers will be chosen from among the Founders. That group might be 5 people or 50 people or 5,000 people or more. In the Corporate model there is usually a President, and/or a Chief Executive Officer, a Vice President, a Secretary and a Treasurer. Normally, a Board of Directors is either elected or appointed, and there is usually a Chairman of the Board chosen from among the Directors. So it will be with the FRONA organizational group. Let’s write FRONA’s Charter to create the same offices for us.

My recommendation is that the entry fee for eligibility to be in the FRONA Founder’s organization is one ounce of .999% pure silver. Once the charter is ratified and FRONA springs to life, one share of common stock would be issued to each person who paid the entry fee in FRONA. We can stipulate that only shareholders may be a FRONA citizen or hold an office in the FRONA government. We can also stipulate that shares may only be sold back to FRONA for the same one ounce of silver, and no other transfer of ownership will be valid or lawful.

Now let’s fill the officer’s positions. Anyone who paid the fee gets one vote. We will vote for each position until all positions are filled. Now we have a founding organization.

Let’s continue writing the Charter.

Any person who owns one share of common stock may vote on any issue brought before the FRONA Board of Directors for disposition. Voting may be done through proxy, in the same manner as proxy voting is done in corporations throughout the world. And every vote must sustain a quorum of voter/stockholders. For example, if there are 1 million outstanding shares, there must be no less than 500,001 votes cast in any instance for the outcome to be legitimate. And in FRONA, there WILL be proper identification required to prove one’s status as a legitimate voter. No people in cemeteries voting. Think about it. How often do you hear about massive voter fraud in corporations? HARDLY EVER. Why? Only shareholders can vote.

No more purely representative government, like the one in the US Constitution that was corrupted over time. Everyone gets to vote on everything. No more blaming the outcome on your Congressman.

What about preferred stock for FRONA? Why not issue a certain amount of preferred stock, denominated in .999% pure gold, available for purchase at a weight set by the free market? This would create instant capital for FRONA. Just a thought.

The Charter will have to contain sections about:

Monetary Policy
Taxation and Treasury
Civil Law
Criminal Law
Commerce
Matters of State (boundaries, citizenship, elections/voting, diplomacy, etc.)
Defense
Legislative (The Board of Directors)
Executive

The list will go on, but these sections can get the new nation started. The most important things that will be contained in the Charter are the limited functions of the Executives and the Board of Directors. Their duty under the Charter is to protect individual liberty and property rights.

Let’s not be naïve here. The US Constitution was supposed to form a pseudo-management company for the states, with strictly defined duties. That did not work out so well, and there are lots of reasons for that failure. The Corporate Model of Governance seeks to avoid the structural defects of the US Constitution and create a nation in which the free market can be truly free. There will always be men who wish to control and rule others. We simply desire to structure a nation in which those tyrants find little opportunity to practice their tyranny.

FRONA is the kind of nation I want to leave to my grandchildren.

Secession is the only hope for mankind to enjoy individual liberty and property rights in North America.

DumpDC. Six Letters That Can Change History.

Copyright 2012 Russell D. Longcore. Permission to reprint in whole or in part is gladly given, provided full credit is given.