Off the keyboard of RE

Published on Reverse Engineering November 2009

Discuss this article at the Kitchen Sink inside the Diner

 Note from RE: These articles were written originally on either or, but I no longer can find them.  There were also 2 other parts lost somewhere in Cyberspace.  As I recall I covered the Food Conduit and Education Conduit in those articles.  I may try to do a rewrite  in the Future to complete the series.


I was pondering some today on Dmitri Orlov’s latest rant in Part II of his 4 part, “The Oceans are Coming” series. Whether or not you buy the idea that there will be a significant sea level rise over the next century and what the ramifications of that are isn’t what I am concerned with in this post. It’s some observations he makes about the nature of Trade as it developed and how the Interior of the NA Continent eventually got exploited through the Railroads. This resulted in something of an epiphany for me, and I have a better grasp now of exactly how control over Conduits allowed wealth to become so centralized and allowed one group of players to exert so much control over seemingly autonomous nations.

From Dmitri:

It is very important to understand that, unlike the ancient and compact settlement patterns of Europe, and unlike its dense and active network of navigable rivers and canals, North America consists of a rather narrow but thickly settled coastal zone known as the Northeast Corridor, and the vast expanse of Wild West. Historically, the colonies survived through ocean trade. Until the advent of coal-fired railroads, the only parts of the interior that were economically viable were the ones that were within easy reach of a navigable waterway. Even then many inland settlers found grain to be too bulky for trade, and used it to make whiskey. The Erie Canal made Chicago a town rather than just a portage between the Great Lakes and the Mississippi River. The reason was simple: before the advent of railroads, it cost as much to transport cargo 30 or so miles overland as it did to ship it across the ocean.

Although we have had some form of World Trade for a long time (The Silk Road to China goes back to at least the Han Dynasty before the time of Christ), it was really in the 17th and 18th Century that trade really began to pick up with improvements in Navigation and the Technology of Sail. This enabled a number of things; primary among them was the ability to ship bulk goods cheaply. Overland shipment of goods prior to the Railroads required heavy labor of men and animals and was exceedingly slow and expensive. Large sailing ships however could move quite a bit of goods with very few men and the power of the Wind. Knowing the routes and how to navigate them across the Oceans gave anyone who had such knowledge a huge trade advantage, and early on these routes were kept very secret by the people who knew them. Dutch Pilots had some of the best Rutters, which were extremely important early on before Navigation techniques allowed the fixing of longitude by chronometers which could function on a sailing ship. So early on, the Dutch East India Company was able to basically gain a Monopoly on trade because they had sole control over the conduits for that trade. The British East India Company did basically the same thing a bit later, but not much.

At either end of the line, the Trading Company which controlled the conduit could take ALL of the profit involved in making these voyages with goods, so long as at either end no Goobermint Tariffs were dropped on them. So these folks quickly declared all Tariffs were detrimental to Trade, and the concept of Free Trade was born. On the Silk Road, free trade never existed, all along the way you had to pay for safe passage to some local Warlord, but travel on the High Seas circumvented all that nonsense, plus you could carry a lot more stuff cheaper than over the roads. So you make a LOT of profit this way, so long as nobody will drop a charge on you along the way. The folks who owned and ran these companies became wealthier than the Sovereign States they chartered their companies in, and those states became beholden to them. That was the beginning of Regulatory Capture.

However, up until the Railroads got invented, this form of mass profit taking was limited to Coastal Trade. The vast interior of the NA continent couldn’t be exploited for its wealth. Just clearing the area of the native population took some time, but even after that you couldn’t move a whole lot with just Teamsters and Wagons of Grain. The Railroads were a Game Changer here, and building them allowed the same folks who controlled the Shipping Lanes across the Oceans to control shipping across continents. Again, these companies did not want the individual States they passed thru to be able to drop tariffs on them, that would have killed their profit margin. So through the same type of regulatory capture, these Railroads got their own Rights of Way and they took all the profit from the trade of goods over long distances overland this way. You couldn’t as a local business compete with the Railroad to transport your goods another way, and they could charge you almost the entire cost of producing your grain to ship it to market. The only way you could compete would be to Distill the grain into Alcohol, and then because of its far smaller volume ship that yourself via Wagon to the big markets where it would fetch a good price. Thus the reason heavy Taxes were placed on Alcohol and why independent Distillation was made Illegal.

This control over the Railroad conduit became even more important with the invention of the ICE and the need to move Bulk Barrels of Oil to Refineries. You might have a large Oilfield sitting under your property in Oklahoma or Texas, but without a Railroad Spur to move it cross the country to a refinery, it held no value. So you pretty much HAD to lease your Oil Rights to Standard Oil, because they controlled the conduit of the railroad also. If you were close enough to the Coast, you might build a Pipeline yourself to ship the goods out via a tanker ship that was part of the Plot in “There Will Be Blood”, a film about the early Oil Industry in America.

These same folks took control over each emerging Conduit, from the beginning telegraph Lines owned by Western Union to the Phone Lines of Bell Telephone to the Electricity produced by Edison Electric. Edison was of course backed by JP Morgan and the Vanderbilt family. Private Companies are all operating on the same Biz model which was monopoly control over a conduit through which they could sieve profit from everyone who used it and became dependent on it. Sure it was always possible to refuse this stuff, and the Amish did to a large extent, but MOST people bought the “Progress”. It improved their standard of living, though of course it improved the standard of living of those who controlled all this stuff a whole lot more.

I don’t want to ignore here the most important Conduit of all, the Conduit of MONEY, which is the intermediary in transmitting value from one place to another. This was the FIRST conduit which became Monopoly controlled, and the same Banking Families have been in control of this conduit since its inception in the colonial era on this go round. About everyone here now knows that the Money produced by the Fed isn’t “our money”, it belongs to the Banks who produce it, and these banks are held Privately for Profit. Gold as money, while it is possible to use was a direct challenge to the Private control of money, and so since Private money has been used, Gold has been taken out of circulation and sequestered away in vaults. It’s never going to come out of those vaults in any great quantity, and even if it did there isn’t enough to go round anymore, so it doesn’t present the danger it once did to private money distributed by the Banksters. What presents a danger to the Banksters now is that they are rendering their own money quite worthless, with nothing to really replace it. Just as there is nothing really to replace Oil to run the transportation system either.

All of these conduits are failing in Cascade Fashion now, from the Money to the Shipping industry to the Electric Grid and eventually here to the Communications grid. The civilization that grew up around these conduits is wholly dependent on them, and cannot survive without them. This is not to say individual people and communities cannot survive without them, just the civilization organization cannot. Those who will survive are those who are most able to live without these things, but that is a remarkably small segment of the population of the developed world. Those who built and control this system are the ones MOST dependent on it for maintaining their control. Once that is lost, so also will the power they have be lost. It’s all dependent on maintaining control over conduits which will no longer exist as the Oil becomes ever scarcer.

Knowledge of this makes Planning for the Future fairly straightforward in theory, if difficult to implement in practice. It means progressively removing yourself from dependence on all the Conduits, from Shipping to Electricity to Communications to Money. Very hard if not impossible to achieve in highly populated areas, somewhat more possible to achieve in remote low populated areas. However, ALL areas short of some incredibly isolated places deep in the Amazon are likely to experience quite a bit of Fallout (of one sort or another),and besides that INDIVIDUALLY IMHO I think it is quite impossible to be Independent of all the Conduits and also Independent of all other people in a Community to overcome their loss. So people who survive this will have to come together in Tribes, and have enough selflessness to give of themselves for the greater good of the Tribe. Greed and self-interest does not payoff in such societies, and people who conduct themselves in such a manner will go the way of the Dinosaur. The Meek Shall Inherit the Earth. Right after the Meek get VERY VERY ANGRY.

Conduits: Part II

If you were reading closely, you should notice that I glossed over something very important with respect to the early Conduit of Shipping in the Colonial era. Read this portion of the first post:

“At either end of the line, the Trading Company which controlled the conduit could take ALL of the profit involved in making these voyages with goods, so long as at either end no Goobermint Tariffs were dropped on them. So these folks quickly declared all Tariffs were detrimental to Trade, and the concept of Free Trade was born. On the Silk Road, free trade never existed, all along the way you had to pay for safe passage to some local Warlord, but travel on the High Seas circumvented all that nonsense, plus you could carry a lot more stuff cheaper than over the roads.”

What is inaccurate in that statement? It ignores a very important part of the early trading through this period, which was PIRACY. It was not in fact completely impossible to have your merchandise “taxed”, because it was VERY taxing to have to fight off Pirates who would relieve you of your cargo somewhere out on the High Seas, where NOBODY had any Jurisdiction really. 100% Taxation rate on an individual cargo vessel, though so long as you only lost maybe 10% of your vessels this way, not outrageously taxing. When the piracy got bigger than that, THEN you got a problem.

What you had early on here in the Capitalist paradigm was one set of naval based thieves fighting with other naval based thieves for any and all wealth that could be transported about in ships. Spanish Conquistadores, the Marines of the era basically stole Gold from the Aztecs, then French and British Pirates stole the Gold from the Spanish ships. LOL. French Pirates were actually chartered by Da Goobermint and got funding from the East India companies through Stock Offerings; this was all just good Capitalism in da olden days. LOL. Did it ever really change? Nah, of course it did not, it just got obfuscated through all sorts of rules and laws for legalizing a variety of forms of theft but that is a complex topic for another post.

In this post, I just want to examine exactly why Goobermint and Navies got so big, first with the British and then our own Navy, which is absolutely astounding in size and scope right now, though its coming to the end of its working lifespan. The reason is to secure Trade routes over the Ocean from Piracy, to basically extend the “Law” of your country out over the High Seas. To ENFORCE such laws out there, you gotta have Ships of the Line, fast ships with Cannon that can protect your lumbering freighters loaded down with plundered Gold. The English built the best Navy, and they took control over all the shipping lanes with that Navy. Individual Pirates eventually could not compete with this, as the British East India Company, rather than paying their Taxes to the Pirates found it a better deal to use part of their profit to fund the Navy of Britain. In this way, the Military became the Enforcement Arm of Capitalism, connected through Da Goobermint. Thus began the “Military-Industrial” complex and its capture of Da Goobermint, which occurred LONG before Eisenhower identified it here in the US post WII. What this should tell you is that for so long as “Capitalism” has existed, it has NEVER been divorced from Da Goobermint, they are in fact one in the same thing. The Trade of Capitalism cannot be legislated and organized without the POWER of the Military, which comes from Da Goobermint.

The Railroad era was no different here, in order for the Railroads to gain their Rights of Way through Indian Territory, to keep those Native “Terrorists” from breaking up the tracks; they needed a Cavalry to go out and wipe out anybody who might not want a Railroad passing through their land. Once again, the Military made it possible for the Capitalists to exploit whatever wealth there was through exclusive control over the Conduit for trade, enforced by the Military which was part of Da Goobermint. Capitalism could not possibly FUNCTION without Goobermint Backing, and Goobermint could not function without the Wealth being sieved up by these conduits. A marriage made in HELL of course.

You can see over and over again how the Elite in charge of the Capitalist system used the Force of Goobermint to basically STEAL wealth from any indigenous population, even when the indigenous population supposedly constitutes Da Goobermint. As long as you buy Capitalism, you buy a military enforcement arm designed to steal wealth from somebody else. You CANNOT make Something from Nothing, and Capitalism never did. It just was a remarkably effective means of state sponsored THEFT, from its beginnings in the time of the Spanish Conquistadores and Mayer Rothschild, to its current dying days now.

Why is it dying? Because the CONDUITS are dying. Or rather the ability to control the conduits is dying. The shift to Oil made Navies dependent on this, and so to control the high seas now, you need a LOT of oil. A few Nuke powered Subs and Carriers CANNOT control the great expanse of the Oceans, particularly when they are busy supporting Land Wars in a few hotspots around the globe. So you now have the re-emergence of Piracy along the coast of Somalia, and soon to be prevalent across ALL shipping lanes. There simply is no way the US Navy, big as it is, will be able to be funded and take on ALL the theft which is going to be part of this game. The actual amount of Wealth that they can protect to be moved is not sufficient to fund the hardware and manpower required. MOST of this stuff is bound for Davey Jones locker once push comes to shove here. It costs a LOT to build a big naval vessel; it is CHEAP to build a small cruise missile or even a speedboat with a torpedo warhead on it and some Suicide Towel Head ready to drive it. Big Boats are freaking SITTING DUCKS. They move real slowly, they cannot turn fast; you can hit on them easily as they enter or leave a port. You might not know where they are out on the high seas, but if they are going to fulfil their function as trade conduits, they MUST make port. SOMEBODY will hit on them and put them down, this is inevitable.

Many other conduits will die here also quickly. The electrical infrastructure is already teetering, HUGE blackout recently through Brazil, blamed variously on Hackers and Overload, whatever the cause is you know this has to become more prevalent as time goes by. The internet? Damn, one good hacker who gets pissed off when his Network Admin job goes south probably could take down the whole ball of wax. I don’t have to tell you how fast the MONEY conduit can go down here. You can see for yourself the volatility in the markets. All its going to take is a massive run on some asset class somewhere; it could be in freaking Hong Kong. Margin Calls get triggered, and the whole thing goes BALLISTIC.

No idea here what exactly will be the trigger, whether it is financial or political or military I have no real clue. I DO know however that these conduits have reached the end of their working lifespan, and they will COLLAPSE. This is inevitable, because of two very important principles. One, you CANNOT make Something from Nothing. Two, Infinite Growth in a world of Finite Resources is IMPOSSIBLE. This is the Brick Wall the Illuminati are running into here, and its WHY they will go down BIG TIME. Once the systems go down, they are DOGMEAT. Coming Soon to a Theatre Near You.

Conduits: Part III

Part III- Information Property Rights Conduit

As we passed into the Information Age, one of the most important Conduits for sieving wealth has been Intellectual Property law, which allows Ownership of something which doesn’t even have a physical form, you can’t see it, touch it, smell it or taste it. The ownership of Ideas. Most people see inventing something and gaining a Patent on the idea as a legitimate way to achieve great wealth. Invent the Light Bulb, like Edison and you become wealthy, right? Well in fact Edison never did get all that wealthy, since the Vanderbilts and JP Morgan took most of the profits from his inventions. He didn’t starve though.

In reality, Patent law and Copyright law is used as a means to control new conduits as they emerge. Yes, the person who invents such thing sometimes will get rich from it, but not as often as you would think. If you don’t sell out your invention to the big corporations, they will reverse engineer what you have come up with, tweak it enough so they can get a new patent and leave you in the dust. Defending your patents in court is expensive, and long before you might win such a battle if you are a small inventor you will likely be bankrupted in the fight.

Those who really succeed aren’t the inventors themselves usually, it’s the people who will ruthlessly STEAL the inventions and monopolize a market. The Big Gorilla, aka Bill Gates is the classic example of this. However, as much money as the Big Gorilla has made here, his empire is also being co-opted and undermined by bigger powers, who funded Google. Where do you think Sergei got all the money to turn Google into the behemoth it has become in just a few years?

Google now controls the Internet for all intents and purposes. “Cloud Computing” where you don’t actually have the software on your own computer but you have to access the internet (at a charge of course) in order to access a program on somebody else’s computer to manipulate and store your data (another charge) is the new model here. Has anyone else here noticed the absolute dearth of worthwhile programs you can buy which will work on your own computer now? Anything you can buy generally is locked up tighter than a Catholic School Virgin with a Kevlar chastity belt. You have to pay Licensing Fees to operate the software you buy year in and year out.

Fortunately for me, I bought most of the really good programs before they all got locked up this way, including legacy Op Systems to run on any old computer. Most of the new stuff just has bells and whistles, nothing outrageously new and great has been created in the computing world since spreadsheets and databases and basic graphics programs, insofar as I am concerned anyhow. I have all my old software and it runs great. The only thing I like the Internet for is as a communication medium to write on. PAYING somebody to hold my data on their computer and use their programs? I’ll NEVER do that. It’s just another form of Taxation really. Unfortunately for anybody NEW coming into the game NOW, it’s becoming less possible all the time to get software that will run on any computer, particularly as they change the Op Systems so eventually they won’t even run the old software anymore. With some new computers, you cannot even take a Magnet to the hard drive to wipe it and then get it to run some programs after loading an old Op System, because they program in blocks in the chips on the motherboard. Fortunately again, I have a decent supply of older computers and laptops and spare parts which should last me the rest of my life without ever buying a new one. However, for MOST people, they will be limited to what the hardware producers will build, and it ALL will have Digital Copyright Protection software built onto the motherboard. To get these computers to do anything USEFUL, you will HAVE to sign up for Cloud Computing on somebody ELSE’S computer, and use the Internet to Access it. This is the Information Conduit that our Oligarchs have taken control of now. It was for a while a matter of CHOICE whether you would use the internet, and how you might use it. Now the choice is being removed, if you want to do business in any way, you MUST use the internet to access Cloud Computing. This is the Biz Model of control over a Conduit, repeated here for the Information Age.

Of course, this model will not succeed long term, because the rest of the conduits are already breaking down. The massive amount of power to run all the network servers is going to become increasingly expensive, and the ability to repair all the lines of fiber optic cable and copper wire will become ever less possible. In pieces, the internet will begin to break down, and then with it will go the ability to sieve profit in this way. How long it takes for this Conduit to break down completely is anybody’s guess, but IMHO 20 years is a max here. At least I hope it lasts that long, since it would take it to the end of my time walking the earth. I’ll definitely miss the ability to write here on the net when it disappears for good. However, I will NOT miss the Taxation that comes from being obligated to participate in some Conduit if you want to be a part of the society that is using it. I’ll pay my $100/mo Communications Package from ATT which gets me my Cell Phone and Internet for so long as this is not such a huge part of my paycheck I cannot afford it anymore. I’ll be damned if I will buy any more than that though. However, it still just does KILL me on a philosophical basis to know that every $100 I send in to keep my Communications lines open is money going straight into the pockets of the Oligarchy. Long as I want to continue to participate in this society, I HAVE to pay that Tax. When they jack up the rates to $500/mo for these services, I’ll probably have to drop out of this end of the society, and that will no doubt come to pass as ATT tries to survive. Just like Citibank raising CC interest to 30%. If you want a CC and what that does for you, you HAVE to pay those rates. Your only other choice is to opt out. “Go Galt” as some Ayn Rand Fans call this phenomenon. Ayn Rand was philosophical idiot, but the phenomenon is nonetheless true as an observation of what occurs in such scenarios.

Most folks will “Go Galt” here not by choice, but because they HAVE to. You’ll stop paying your income taxes, because you will lose your job. You’ll stop paying your property taxes, because you will lose your house. You’ll stop buying Cloud Computing on the Internet to run your Biz because you will HAVE no biz. Will you REFUSE the Handouts of Unemployment, Welfare and Food Stamps when YOU fall off the cliff? You would be a fool to do so of course. People who espouse principles here of despising the Leechfucks are almost to a person going to become Leechfucks themselves quite soon. Too bad we won’t be able to read about it here on the internet, I would really enjoy seeing these folks eat crow. Whether we hear about it or not though, Eat Crow they will. Coming Soon to a Theatre Near You.


Knarf plays the Doomer Blues

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