Adam Smith said that the four factors of production are land, labor, capital and management. The only quibble non-Marxist economists have had with that list for a quarter of a millennium has been to argue whether management is not really a subset of labor.

But what is critical is how little thinking, none actually, they have done on the word “land.” They have always thought in Adam’s terms, of “land” as meaning what a factory or a farm needed in HIS day. To Adam Smith the word “land” meant resources as well as a factory site. You need land to graze sheep on or to mine for coal.

Economic thinking on land as a factor of production, is where Adam Smith left it.

Today it is not uncommon for what Smith called “land” to be nonexistent. Some of the most expensive “land” on earth is above the fiftieth floor where a firm is located. SMOM is an independent country in Italy which is recognized by a number of other countries. It is located entirely on the second floor of an otherwise Italian building.

Location, location and location. Smith knew some locations were more valuable than others, but today it has an overwhelming importance he could not have imagined.

And that is least of “modern economitss'” problems with the first factor. Even in Adam Smith’s sense, the place you put a factory is mostly not a matter of resources. Africa has lots of resources and Japan has NONE, but how many people would put a factory in Africa?

This is why libertarian economists are such complete fools. They know very well that no sane businessman would put a factory in Haiti with the same percentage profits as he would accept in the United States. No LIBERTARIAN would pay the same amount for Haitian investments as he would for the same factory in America.

Why? Because Haiti is full of HAITIANS His money is subject to HAITIAN politics. PERIOD.

Yet every libertarian economist insists that if the American population moved out and the third world moved in, he would be just as willing to invest his money here. It is the American” land” that is productive, and a new population wouldn’t change it.

Like most of my propositions, once you put the thing in plain English you wonder about the sanity of those who haven’t.

It is a LONG time since I made my living as an economist. In aircraft negotiation I was officially an economist.

America now is a lot like Spain in the sixteenth century. Spain put all its effort into producing gold while other countries developed exports which immediately took all the gold. The United States has exactly the same source of wealth Spain did with its colonies, though it looks entirely different.

Gold was money. The United States produces money. It is true that China holds $700 billion in US money and bonds, but this is not the weapon you might think.

No, Virginia, China is not sitting there thinking how their vast US dollar gives them the power to destroy the white devils. If the dollar is destabilized, China loses seven hundred billion dollars it cannot afford to lose.

As I say, it is a long time since I really kept up with these things, but in 2008, when we had our monetary crisis our stock market dropped,. But it was a greater catastrophe abroad. Including in the Euro area, especially in the Euro area.

We got scared. They PANICKED.

It is hard to think of US dollars as like any other export. But US dollars underlie the world economy exactly the same way Spanish gold did. Money is a GOOD.

I remember laughing to myself at a deal China and Russia made about 1960. They were exchanging things, and there would be a gap, so they agree to settle that gap at six hundred million DOLLARS. I remember in Communist countries themselves there were foreign currency only shops where the local money was no good. For years after the collapse of the USSR dollars were called “the green ruble” and when you went to an ATM in Moscow they would ask if you wanted your money in dollars or rubles.

We know all this, but no one THINKS about it. The media, which is constantly preaching how much better Europe is than America, also preached about the superiority of Communist countries even more. So Europe’s out of control debt and the one long recession it has had for a generation is never mentioned, much less considered.

In 1960 no one even noticed that the USSR and China would not even consider dealing with each other in anything but dollars. But it is a lot like noticing if the United States and Britain refused to deal with each other in 1943 in anything but Reichmarks!

So we run deficits, big ones. Our production base is, as is said, disappearing, as Spain’s didn’t develop when its main product was gold. So people expect a collapse of the dollar.

It is true you can only export so much paper, but due to the Eurocentric media, people do not understand the other factors working here. If the dollar destabilizes, it is a disaster for those who hold all those trillions.

Obama’s economic policy scares Americans. But his policy has been standard in Europe. The Euro is worth more than American dollars, but who would HOLD Euros as a BASIC currency? You can be damned sure Europeans wouldn’t.

Money is a VERY conservative commodity. The dollar has a history. Despite all the talk, few doubt that the dollar will be worth SOMETHING twenty years from now. The Euro, the only possible competition, depends on Germany, Spain, France, Italy, and whatever parts of Eastern Europe join the Euro area in coming years to all work in concert.

It is true that our industrial based has the same problem Spain’s did. But in the time of Spanish gold, industry was the way of the future. Industry is now the way of the past. I get the impression that Japan is producing as little of its exports cars as we do. Those are built in Korea or India and assembled in Japan paying Japanese labor, if indeed they ARE even assembled in Japan now.6

I wonder how many “Japanese” imported cars ever saw Japan?

It is hard for us to realize that it has always been a major problem for non-Americans to find a place to put their money safely. It was a conjecture in the 1960s that, despite the statement that norteamericanos owned everything in Latin America, the total investment by South Americans in the US was higher than ours in them. NOBODY kept his money in South America except as a temporary investment. The routine Brazilian inflation rate over fifty percent annually.

For years Central America has been trying to get a common currency. I don’t know if they have succeeded yet. But that is the important point: I don’t KNOW.

How many Americans know the NAME of the Chinese currency?

The American word “dollar” is as universal as the American word “OK.” Money is PSYCHOLOGY, and it will take generations before any other currency gets into the world’s mind the way the one we are pumping out does.

I always marvel at the endless trade deficits we run. What is allowing us to do that? I have just explained what does.

No one can understand today’s international economics without thinking about this. Economists don’t really think about this.

Mantra Thinking means taking a fresh look at what we take for granted. I can’t push the Mantra itself all the time, but sometimes I can get the conversation around to what, for the average person, is the mindlessness Mommy Professor never prepared him for.

In one episode of Seinfeld, the last scene had them going to the emergency room from a circumcision. Due to Costanza’s bungling, both he and the bis had been cut and needed to go to the hospital. The joke was NOT that somebody had been sliced and was bleeding, but that two ADULTS had been sliced. There was no question in anybody’s mind that adults who get cut must go to the emergency room.

The fun idea was that only the INFANT should have been sliced. It occurs to no one that the tiny baby needs any attention, though for him the cut is a lot more serious than it would be to an adult. Gentile babies born in a hospital have been sliced like this for over seventy years, routinely.

After the year 2000 a couple of doctors did experiments with modern electronic stuff and published their discovery: Circumcision is PAINFUL for the infant. In fact, with the machine they have been using since the 1930s, it is TRAUMATICALLY painful. It is so bad that some doctors have been giving kids some anesthetics in the last few years. Nobody considered it before.

I have also seen many, many hilarious scenes on TV of children getting their baby teeth pulled. It’s a real yuck! Their mouth is bleeding and some of the most sensitive nerves in the body are exposed. So they show fear. That means they are just little sissies, of course.

Now make that person into an adult who has a tooth coming out. Suddenly we need a trip to the dentist’s office, we need Novocain, we are dealing with court suits if it is done cruelly.

An adult who converts to Judaism is not ABOUT to have some dirty, uneducated old bis slice at him. They only take one drop of blood from an ADULT, and they are damned careful about THAT. But it’s always open season on infants, both Christian and Jewish.

It is not that everybody doesn’t KNOW about the cruelty of circumcision and tooth-pulling. It is just that no one THINKS about it. THINKING about what you know is Mantra Thinking.

BUGS has something unique to offer to everybody. We offer clear thinking on forbidden subjects. The key words here are two: 1) forbidden and 2) clear.

On the first word, every society has its Forbidden Zone, some more than others. In fact one may make the argument that if there is not a Forbidden Zone it is not a society. In a libertarian society the forbidden zone is forcing others to do what you want them to. The Mafia would love a libertarian society and, since libertarians oppose borders which restrict the factors of production they call labor and management, how could they keep the Mafioso out?

So, in order for libertarianism not to be laughed at its own convention, immigration is a forbidden subject. On of the best ways to ensure a productive, safe society is to keep it racially and culturally all-white or even all-Oriental IF the Orientals are committed to what they got from whites. Any discussion of this would be shouted down if a speaker managed to say it at a libertarian convention.

I talk about libertarianism first to demonstrate that, no matter how free they claim to be, every society, even the theoretical libertarian one, has a Forbidden Zone. That’s what makes it a society.)

The problem is that a forbidden zone is a fortress against thought, manned by those who represent Militant Ignorance. When the telescope was invented by Western Society the old cosmology was doomed. Today Political Correctness, which was built on the assumptions that animals have no borders and no war, and that all mental problems are Responses to environmental factors are dead and rotting while standing there backed by the forces of Militant Ignorance.

Each year more and more obvious nonsense has to be defended to defend the Forbidden Zone. While the rest of society marches on, that Forbidden Zone Wall gets higher and higher, pours down hot oil on the attackers until it finally collapses.

Those of us who spend out time talking precisely about the Forbidden Zone of our society have a lot to offer people. Those who refuse to read our stuff because it is Forbidden, whether you call Forbidden Heresy or Hate, miss it all.

Libertarians can never have a free society because they refuse to listen to the simple reality that it is the people who make up a society. By definition, libertarianism must ignore the people and insist that all that is needed to make a country free is for them to have lots of copies of Ayn Rand there.

I almost said all their free society needs is for everybody to READ Ayn Rand. But they have no way of enforcing that. The only way to keep this from coming up at a Libertarian Convention is to shout it down.

But the rest of us can get a chuckle and, more important, a piece of real world knowledge from exposing the Libertarian Forbidden Zone. Every philosophy has its Forbidden Zone, and Libertarianism is just an extreme since it claims to have n forbidden zone.

If you look at the first paragraph again, you will see this discussion covers point 1. We’ll deal with point 2) separately.

“Negroes Riot After Smoking Marijuana.” This is the sort of lead in newspapers that helped lead to the outlawing of marijuana and rigorous penalties against its use.

Thousands of Civil War veterans became addicted to opium during the War, and even more had to have it to deal with the pain and even more with the pains diseases caught in the War left them with. During the War it was called God’s Own Medicine, the only effective remedy for pain.

Tens of thousands of veterans ordered opium in the mail, because, as you read now, “They were addicted to it.” Most of them probably ordered it because it was the only thing that kept their painful lives bearable.

George Washington had several POUNDS of opium on his regular grocery list.

Opium could not be restricted until the Civil War Army had pretty well died out. And when the campaign against opium got going, it, like the campaign against marijuana, stated that opium was causing the inferior races to go nuts. Those who criticize the War on Drugs point this out in every documentary.

Drug laws got through on racial inferiority when THAT was popular. Nothing has really changed except that the “Violent Negroes” and “Dangerous Orientals” have become “children” and nut jobs.

But the basic concept has not changed at all. Everybody believes in Freedom, but we cannot let you or me have what might fall into the hands of chinks, jigs, or, more lately, children and psychos.

When someone says “Freedom is the right to do what you wish so long as it doesn’t affect others” they are demonstrating what happens when a concept becomes Wordist and capitalized. Everything you do outside your own skull affects others, and the Freedom types want to be sure the right thing happens inside your skull, too.

It is hard to imagine a society that is less free than one in which you are not allowed to own anything that psycho could misuse. Children are officially unfree. They must be taken care of, and both our political left and our right would cheerfully extent childhood to the grave.

There is a white powdery substance that, used wrongly, could kill a million Americans. But it is freely available. It is called sugar, and it can be fatal to diabetics. Yet candy is freely available even to children and irresponsible adults.

Some people make money selling sugar with no restrictions at all. This certainly violates the Wordist definition of Freedom. People die of sugar shock all the time.

But Wordism never has to face its own silliness. In an earlier generation Prohibition was brought in with overwhelming approval. In fourteen years we learned better. Even the most fanatical anti-alcohol Bible Belt states got rid of it.

But the War on Drugs will never stop. We are not the people who learned better. We NEVER ask whether the present prohibitions WORK. It is like guns: psychos kill with guns, children should not run around shooting unsupervised, so they must outlawed.

Not because prohibition WORKS, but because they SHOULD be outlawed.

Mantra Thinking ALWAYS concentrated on what WORKS and how things really work. Wordist thinking leads to Freedom, which is, as Orwell said, is slavery. You cannot be free without Mantra Thinking.