Orrin Woodward Leadership

Inc Magazine Top 20 Leader Orrin Woodward shares his leadership secrets.

  • Orrin Woodward

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    Guinness World Record Holder for largest book signing ever, Orrin Woodward is a NY Times bestselling author of And Justice For All along with RESOLVED & coauthor of LeaderShift and Launching a Leadership Revolution. His books have sold over one million copies in the leadership and liberty fields. RESOLVED: 13 Resolutions For LIFE made the Top 100 All-Time Best Leadership Books and the 13 Resolutions are the framework for the top selling Mental Fitness Challenge personal development program.

    Orrin made the Top 20 Inc. Magazine Leadership list & has co-founded two multi-million dollar leadership companies. Currently, he serves as the Chairman of the Board of the LIFE Leadership. He has a B.S. degree from GMI-EMI (now Kettering University) in manufacturing systems engineering. He holds four U.S. patents, and won an exclusive National Technical Benchmarking Award.

    This blog is an Alltop selection and ranked in HR's Top 100 Blogs for Management & Leadership.

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Archive for the ‘Freedom/Liberty’ Category

Without freedom, there is no leadership.

Financial Fitness Pack is Breaking Sales Records

Posted by Orrin Woodward on September 18, 2014

The Financial Fitness Pack (FFP) is LIFE Leadership‘s #1 selling product. Why? Because practically everyone you talk to can benefit from applying the step-by-step principles taught in the FFP program. Understanding the Offense, Defense, and the Playing Field for financial success is essential to free a person from financial bondage.

To share the value of the FFP program to improve lives, CEO Chris Brady and his LIFE Leadership staff produced an amazing video that interviews leaders who have applied the principles. Where else can your customer purchase a life-changing financial program that pays for itself (it’s only $99 for crying out loud) from what most people save on interest debt alone! To truly be free, one must be free economically, politically, and spiritually. The FFP points a person onto the path to financial freedom.

In fact, many of LIFE Leadership‘s customers have converted to members after realizing they are saving enough from the FFP information (defense) to start funding their own business (offense). This is why I love LIFE Leadership so much. While most alleged “leaders” in society  are bantering back and forth pointing out who is to blame, the LIFE leaders are progressively changing their own lives so they can inspire others to change.

LIFE will model and message the proper principles in each area of life to help people solve life challenges rather than be frozen in fear because of them. This is why I am so proud to be in business with the LIFE Leadership community.

To purchase a Financial Fitness Pack and begin the journey to financial freedom click here.

Sincerely,

Orrin Woodward

Posted in Finances, Freedom/Liberty, LIFE Leadership | 16 Comments »

Murray Rothbard: The Banking Cartel

Posted by Orrin Woodward on September 8, 2014

Murray Rothbard is my favorite economist to read for several reasons. First, his extensive knowledge in economics, history, and business help him see connections where few others would. Second, his style of writing drives home his points in an enjoyable fashion and, even the few times where I believe he goes too far, I still marvel at his ability to muster the facts in a logical fashion to argue his point. to

As Chairman of the Board for LIFE Leadership, I am constantly reading, writing, and speaking. Identifying the top thinkers to read in each field is a high-priority for me and why Murray Rothbard is one of my favorites. For his thinking and writing clear the fog of ignorance on my different subjects. As an example, here is Rothbard’s description of how and why America cartelized its corporations in the late 19th century.

The Five Laws of Decline are alive and well in America and a return to the Six Duties of Society is going to take an active group of people who know leadership, history, and economics.

Sincerely,

Orrin Woodward

Murray Rothbard

Murray Rothbard

By the late 19th century, the Morgans took the lead in trying to pressure the US government to cartelize industries they were interested in — first railroads and then manufacturing: to protect these industries from the winds of free competition, and to use the power of government to enable these industries to restrict production and raise prices.

In particular, the investment bankers acted as a ginger group to work for the cartelization of commercial banks. To some extent, commercial bankers lend out their own capital and money acquired by CDs. But most commercial banking is “deposit banking” based on a gigantic scam: the idea, which most depositors believe, that their money is down at the bank, ready to be redeemed in cash at any time. If Jim has a checking account of $1,000 at a local bank, Jim knows that this is a “demand deposit,” that is, that the bank pledges to pay him $1,000 in cash, on demand, anytime he wishes to “get his money out.” Naturally, the Jims of this world are convinced that their money is safely there, in the bank, for them to take out at any time. Hence, they think of their checking account as equivalent to a warehouse receipt. If they put a chair in a warehouse before going on a trip, they expect to get the chair back whenever they present the receipt. Unfortunately, while banks depend on the warehouse analogy, the depositors are systematically deluded. Their money ain’t there.

An honest warehouse makes sure that the goods entrusted to its care are there, in its storeroom or vault. But banks operate very differently, at least since the days of such deposit banks as the Banks of Amsterdam and Hamburg in the 17th century, which indeed acted as warehouses and backed all of their receipts fully by the assets deposited, e.g., gold and silver. This honest deposit or “giro” banking is called “100 percent reserve” banking. Ever since, banks have habitually created warehouse receipts (originally bank notes and now deposits) out of thin air. Essentially, they are counterfeiters of fake warehouse receipts to cash or standard money, which circulate as if they were genuine, fully backed notes or checking accounts. Banks make money by literally creating money out of thin air, nowadays exclusively deposits rather than bank notes. This sort of swindling or counterfeiting is dignified by the term “fractional reserve banking,” which means that bank deposits are backed by only a small fraction of the cash they promise to have at hand and redeem. (Right now, in the United States, this minimum fraction is fixed by the Federal Reserve System at 10 percent.)

Fractional Reserve Banking

Let’s see how the fractional-reserve process works, in the absence of a central bank. I set up a Rothbard Bank, and invest $1,000 of cash (whether gold or government paper does not matter here). Then I “lend out” $10,000 to someone, either for consumer spending or to invest in his business. How can I “lend out” far more than I have? Ahh, that’s the magic of the “fraction” in the fractional reserve. I simply open up a checking account of $10,000 which I am happy to lend to Mr. Jones. Why does Jones borrow from me? Well, for one thing, I can charge a lower rate of interest than savers would. I don’t have to save up the money myself, but can simply counterfeit it out of thin air. (In the 19th century, I would have been able to issue bank notes, but the Federal Reserve now monopolizes note issues.) Since demand deposits at the Rothbard Bank function as equivalent to cash, the nation’s money supply has just, by magic, increased by $10,000. The inflationary, counterfeiting process is under way.

“Unfortunately, while banks depend on the warehouse analogy, the depositors are systematically deluded. Their money ain’t there.”

The 19th-century English economist Thomas Tooke correctly stated that “free trade in banking is tantamount to free trade in swindling.” But under freedom, and without government support, there are some severe hitches in this counterfeiting process, or in what has been termed “free banking.”

First, why should anyone trust me? Why should anyone accept the checking deposits of the Rothbard Bank?

But second, even if I were trusted, and I were able to con my way into the trust of the gullible, there is another severe problem, caused by the fact that the banking system is competitive, with free entry into the field. After all, the Rothbard Bank is limited in its clientele. After Jones borrows checking deposits from me, he is going to spend that money. Why else pay for a loan? Sooner or later, the money he spends, whether for a vacation, or for expanding his business, will be spent on the goods or services of clients of some other bank, say the Rockwell Bank. The Rockwell Bank is not particularly interested in holding checking accounts on my bank; it wants reserves so that it can pyramid its own counterfeiting on top of cash reserves. And so if, to make the case simple, the Rockwell Bank gets a $10,000 check on the Rothbard Bank, it is going to demand cash so that it can do some inflationary counterfeit pyramiding of its own.

But, I, of course, can’t pay the $10,000, so I’m finished. Bankrupt. Found out. By rights, I should be in jail as an embezzler, but at least my phoney checking deposits and I are out of the game, and out of the money supply.

Hence, under free competition, and without government support and enforcement, there will only be limited scope for fractional-reserve counterfeiting. Banks could form cartels to prop each other up, but generally cartels on the market don’t work well without government enforcement, without the government cracking down on competitors who insist on busting the cartel, in this case, forcing competing banks to pay up.

Posted in Freedom/Liberty, LIFE Leadership | 17 Comments »

The Ethics of Money Production

Posted by Orrin Woodward on July 28, 2014

Jorg Guido Hulsmann

Jorg Guido Hulsmann

The Cobden Centre’s Andy Duncan did an excellent review of Jorg Guido Hulsmann’s fantastic book The Ethics of Money Production. In my opinion the number one battle for freedom begins with checking the Five Laws of Decline (FLD) destruction of the monetary system by the State elites. What is the point in checking government through representative government, separation of powers, term limits if the government can have access to practically unlimited funds? The State, simply by partnering with the Big Banks, runs a fraudulent Fractional Reserve Banking system anchored by the State’s favored central bank to bilk society’s monetary system. 

Indeed, my new book And Justice For All spells out how the elites plunder the production of society. Since Adam Smith and Jean Baptiste Say, economists have recognized the 3 factors of all production – labor, land, and capital. The elites have plundered all three factors of production. Thankfully, Human Slavery (the plunder of society’s production through the monopolization of labor) is diminishing worldwide along with Land Serfdom (the plunder of society’s production through monopolization of land). However, Financial Subjection (the plunder of society’s production through the monopolization of capital) is exploding.

Why is it, you ask? Simply put, society cannot resist oppression until it discovers its source. The central planning of the financial system is inconceivable, illogical, and inconsistent since its underlying presuppositions run counter to our alleged free market system. Nonetheless, because the FLD rewards too tempting to ignore, the State and Big Bankers fill society with propaganda designed to confuse and disorient. As a result, the elites capitalize on society’s ignorance for massive FLD gains. Fortunately, anyone who invests the time to read and understands The Ethics of Money Production will not remain ignorant.

LIFE Leadership intends to play its part in educating society in the 8F’s of life to play its part in the restoration of liberty. Below is a portion of Andy Duncan’s review.

Sincerely,

Orrin Woodward

The book is divided into three beautifully-written main parts:

  • The Natural Production of Money
  • Inflation
  • Monetary Order and Monetary Systems

These three parts cover everything you might think of, from the invention of metallic money all the way through to the end of Bretton-Woods and then the later creation of the Euro.  However, the heart of the book is a sequence of four chapters — in the second part of the book on Inflation —with two of these chapter titles, alas, unfortunately insisting on the use of American spellings and the appalling employment of the letter ‘zed’; the chapter content, however, is still very good, even if has fallen under the unwelcome control of an American spell-checker:

  • Legalized Falsifications
  • Legal Monopolies
  • Legal-Tender Laws
  • Legalized Suspensions of Payments

When you are the elite organisation calling yourself ‘The State’, you have a monopoly on law in a particular territory; it is with this power that you can subvert and distort the natural order of private property, thus leading to the impoverishment and helotry of everyone else within that territory, under your rule, even leading to the ridiculous notion that any debt this elite runs up — to maintain their position of privilege — is somehow ‘owed’ by the subjugated population, despite no-one ever asking their opinion about whether this debt should have been taken on by the elite and despite all the benefits of the spending of that debt going directly into the grasping hands of that same privileged elite.

The whole problem with money is the state’s imposition of legal privileges for bankers, given to bankers in return for the promise that they will always soak up the debts of politicians, to enable politicians to enslave their populations over time in a Procrustean bed of warfare and welfare, to the ultimate benefit of the politicians and their friends, and to the detriment of everyone else.

These chapters make clear how that mechanism of monetary enslavement operates, and therefore how we can break that mechanism and become free again from the appalling bondage of government bonds. It is with the removal of these legal privileges and a restoration of the natural order of private property rights that we will be able to put the wheels back on the cart, get moving again, and put the politicians back in their place,

Posted in Freedom/Liberty, LIFE Leadership | 13 Comments »

William Bradford on Property and Prosperity

Posted by Orrin Woodward on June 30, 2014

Private Property and Prosperity

And Justice For All

And Justice For All

The right to private property, as I discuss in my recently released Guinness World Record breaking book And Justice For All: The Quest for Concord, is an essential part of a working civilization. Without it, injustice and apathy quickly destroy the Six Duties of Society productivity. This isn’t just my opinion, it has been proven over and over again throughout history. For instance, the Pilgrims (a Godly group of Puritan separatist) attempted a communal approach to land when they first arrived in Plymouth, The catastrophic results nearly wiped out the colony.

Why? Because people quickly discover that regardless of how much work they do, they share in the rewards equally. This causes a Gresham’s Law decline in productivity as everyone seeks to do the minimum possible. However, because few work under this plan, famine and hunger result. For the past 20 years I have studied the effects of of compensation upon results. LIFE Leadership realizes that in a Compensated Community, the rewards must follow those who do the work. In other words, private property reigns.

William Bradford, the leader of the Plymouth Colony discovered this for himself. In fact, he captured the challenge and response in his history of the settlement. Private Property is the only way that a person can reap what he has sown. If he does not work, he will not eat as Paul stated. Hunger, it seems, has historically been a great motivator for people to act. A modern equivalent is the statement that a timid salesperson has skinny kids. :) If a person can eat without working, rest assured many people will follow Gresham’s Law and choose the same path.

Indeed, remember that someone always owns property. The choices are 1) private individuals with no monopoly of force or 2) the State with a monopoly of force. If feel much safer knowing private people own property, not only for the productivity gains, but also for the protection of liberty inherent within ownership. Private property tells the State to keep it hands off this private sphere. However, if the State owns everything then the peopler are merely serfs or slaves.

Leon Trotsky, the Russian communist, said as much when he cynically changed the Biblical admonition to work into “He who will not obey will not eat.” Simply put, allowing the State to own the land means the people are at the mercy of those in power. Therefore, those who hate private property inadvertently support oppression of the people and depression of the economy. Perhaps its time to learn from our Bradford’s history of the Plymouth Plantation.

Sincerely,

Orrin Woodward

All this while no supplies were heard of, nor did they know when they might expect any. So they began to consider how to raise more corn, and obtain a better crop than they had done, so that they might not continue to endure the misery of want. At length after much debate, the Governor, with the advice of the chief among them, allowed each man to plant corn for his own household, and to trust to themselves for that; in all other things to go on in the general way as before. So every family was assigned a parcel of land, according to the proportion of their number with that in view, — for present purposes only, and making no division for inheritance, — all boys and children being included under some family.

This was very successful. It made all hands very industrious, so that much more corn was planted than otherwise would have been by any means the Governor or any other could devise, and saved him a great deal of trouble, and gave far better satisfaction. The women now went willingly into the field, and took their little ones with them to plant corn, while before they would allege weakness and inability; and to have compelled them would have been thought great tyranny and oppression.

The failure of the experiment of communal service, which was tried for several years, and by good and honest men proves the emptiness of the theory of Plato and other ancients, applauded by some of later times, — that the taking away of private property, and the possession of it in community, by a commonwealth, would make a state happy and flourishing; as if they were wiser than God.

For in this instance, community of property (so far as it went) was found to breed much confusion and discontent, and retard much employment which would have been to the general benefit and comfort. For the young men who were most able and fit for service objected to being forced to spend their time and strength in working for other men’s wives and children, without any recompense. The strong man or the resourceful man had no more share of food, clothes, etc., than the weak man who was not able to do a quarter the other could. This was thought injustice. The aged and graver men, who were ranked and equalized in labour, food, clothes, etc., with the humbler and younger ones, thought it some indignity and disrespect to them. As for men’s wives who were obliged to do service for other men, such as cooking, washing their clothes, etc., they considered it a kind of slavery, and many husbands would not brook it.

This feature of it would have been worse still, if they had been men of an inferior class. If (it was thought) all were to share alike, and all were to do alike, then all were on an equality throughout, and one was as good as another; and so, if it did not actually abolish those very relations which God himself has set among men, it did at least greatly diminish the mutual respect that is so important should be preserved amongst them. Let none argue that this is due to human failing, rather than to this communistic plan of life in itself. I answer, seeing that all men have this failing in them, that God in His wisdom saw that another plan of life was fitter for them.

These matters premised, I will now proceed with my account of affairs here. But before I come to other things I must say a word about their planting this year. They felt the benefit of their last year’s harvest; for by planting corn on their own account they managed, with a great deal of patience, to overcome famine. This reminds me of a saying of Seneca’s (Epis. 123): that an important part of liberty is a well-governed belly, and patience in want.

The settlers now began to consider corn more precious than silver; and those that had some to spare began to trade with the others for small things, by the quart, pottle, and peck, etc.; for they had not money, and if they had, corn was preferred to it. In order that they might raise their crops to better advantage, they made suit to the Governor to have some land apportioned for permanent holdings, and not by yearly lot, whereby the plots which the more industrious had brought under good culture one year, would change hands the next, and others would reap the advantage; with the result that manuring and culture of the land were neglected. It was well considered, and their request was granted.

Every person was given one acre of land, for them and theirs, and they were to have no more till the seven years had expired; it was all as near the town as possible, so that they might be kept close together, for greater safety and better attention to the general employments.

An excerpt from Bradford’s History of the Plymouth Settlement; 1608-1650, by William Bradford, rendered into modern English by Harold Paget and published in 1909, originally titled Of Plymouth Plantation, reprint by Mantle Ministries: San Antonio, TX, 1988, pp. 115-116, 141-142.

Posted in Freedom/Liberty, Leadership/Personal Development, LIFE Leadership | 13 Comments »

The Rule of Law in Western Civilization

Posted by Orrin Woodward on June 6, 2014

Do not give in to evil, but proceed ever more boldly against it.

Do not give in to evil, but proceed ever more boldly against it.

Winston Churchill once wrote:

There are few words which are used more loosely than the word “Civilization.” What does it mean? It means a society based upon the opinion of civilians. It means that violence, the rule of warriors and despotic chiefs, the conditions of camps and warfare, of riot and tyranny, give place to parliaments where laws are made, and independent courts of justice in which over long periods those laws are maintained.

That is Civilization—and in its soil grow continually freedom, comfort and culture. When Civilization reigns, in any country, a wider and less harassed life is afforded to the masses of the people. The traditions of the past are cherished, and the inheritance bequeathed to us by former wise or valiant men becomes a rich estate to be enjoyed and used by all.

Today, this view is becoming increasingly ignored as the State seeks to gain more power over society. In the video below I discuss some of the ramifications of the Rule of Law on liberty in Western Civilization.

Sincerely,

Orrin WoodwardLIFE Leadership Chairman of the Board

 

Posted in Freedom/Liberty, LIFE Leadership | 17 Comments »

Thomas Woods – Meltdown

Posted by Orrin Woodward on May 31, 2014

Thomas Woods - Meltdown

Thomas Woods – Meltdown

The Austrian business-cycle theory is the missing factor in today’s economic discussions. It connects the dots on so many seemingly disparate data points and explains systematically what everyone else is treating as isolated events. Unfortunately, the business-cycle theory is rarely discussed and almost never truly understood by today’s talking heads.

The Austrian School of economics is the only school that has developed a working model of how savings and investment needs work together to create the natural rate of interest. No where is there a need for the central banks Statist central planning interventions to artificially lower the interest rates.

This, in fact, is why the theory is kept from mainstream discussions because it places the blame for the Global Financial Crisis where it belongs, namely, on the State’s partnership with the central banks to run the banking system cartel. The banking cartel is designed to protect the fraudulent fractional reserve banking system from collapsing upon itself. 

LIFE Leadership is set to release the first of my planned three book series on society and the State titled And Justice for All. The book will be available at the June Columbus major function. In the book, I describe how the State intervenes within society, allegedly to serve the populace, but actually to increase its power. I go on to describe how these State interventions affect society.  

Justice for all is the goal of every righteous society, but the government must be restrained to perform only its intended functions to accomplish the assignment. Who guards the guardians? This ought to be the question asked by all concerned citizens to ensure the destructive Five Laws of Decline do not destroy the productive Six Duties of Society.

Here is a brief summary on the business-cycle and Thomas Woods excellent book Meltdown from the Mises Institute. I highly encourage everyone to read this book as it is the best simple description of the business-cycle theory.

Sincerely,

Orrin WoodwardLIFE Leadership’s Chairman of the Board

Austrian business-cycle theory is straightforward, for those willing to devote the necessary time to study praxeology. But therein lies a problem. The average person lacks the patience to read Human Action and Man, Economy, and State. How then can he acquire the rudiments of Austrian cycle theory and grasp why the theory is true? To set the question aside, on the grounds that it is unnecessary for the man in the street to bother with such matters, is a counsel of despair. If the public does not understand the economics of depression, there is little hope that we can avoid disastrous government policies. Unless the free market receives sufficient popular support, our economic future is bleak.

Woods supplies just what we need. With great clarity, he shows that the Austrian theory of the cycle is firmly grounded in common sense. Additionally — and here his skill as a trained historian comes to the fore — he shows that Austrian theory explains not only the Great Depression but other less-well-known economic downturns as well. When the government followed a “hands-off” policy, recovery from a downturn was rapid; when, as most notably was the case in the New Deal, government tried to take control, the economy sputtered.

The basics of Austrian cycle theory fall readily into place once one considers a fundamental point: the economy can grow only by producing more goods. An expansion of the money supply does not suffice. Efforts to get something for nothing, by the government’s deficit spending or by an expansion of the money supply, cannot produce lasting prosperity.

The speed with which an economy grows depends on the extent to which people prefer present goods to future goods. Other things being equal, people always prefer satisfaction in the present; but the extent to which this preference prevails is crucial for economic development. In order to obtain more consumer goods than are immediately available, people must postpone satisfaction by saving, enabling a greater production of capital goods to occur.

Look at it from the saver’s perspective. Saving more indicates a relatively lower desire to consume in the present. This is another incentive for businesses to invest in the future, to carry out time-consuming investment projects with an eye to future production, rather than produce and sell things now. (p. 67)

The extent that they are willing to do so determines the rate of economic growth.

The preference people have for the present forms the main part of the rate of interest: Mises called this the originary rate of interest. This rate registers the way people allocate resources between consumption and production.

Trouble arises when the government, by increasing the supply of bank credit, depresses the money rate of interest below the natural rate. Businessmen, seeing that money is available, invest in capital-goods industries, and the result is a boom.

Once the monetary expansion stops, the boom cannot be sustained. The entrepreneurs who expanded their production of capital goods need more money to sustain their projects, but not enough is available at an interest rate that will secure for them a positive return. In the absence of monetary expansion, the rate of interest rises, since time preference has not changed (or at least there is no reason to assume it has.) At the higher rate of interest that now prevails, formerly profitable enterprises now have to be liquidated. This process of liquidation is precisely the depression.

Posted in Freedom/Liberty, LIFE Leadership | 15 Comments »

Central Banks Lead a Monetary Cartel

Posted by Orrin Woodward on May 13, 2014

My studies for my new book And Justice for All (to be released by LIFE Leadership) have led me to an interesting conclusion – the central banking led bank cartel has captured Western Civilization’s productive capacity. It all centers around the mysterious Fraction Reserve Banking (FRB) process. The (FRB) process could not abuse society to the extent it does without the State approved cartel that backs the Too Big Too Fail (TBTF) entities. Indeed, the cartel permits banks to carry minimum reserve requirements and loan out money it technically does not have.

Fractional Reserve Banking

Fractional Reserve Banking

For instance, imagine a FRB system with a reserve requirement of 5%. This allows the FRB system to turn $1,000,000 into $20,000,000 (1 million/.05 = 20 million). The $1 million has been turned into 20 million, creating $19 million extra dollars out of FRB thin air). Even with just a 5% interest rate, this is approximately $1 million in interest income on an original investment of $1 million! This is an astronomical ROI of 100% before expenses because of the wonders of the FRB process. This cartel-protected profit is drawn from the productive elements of society who are paying interest on money that only exist on a ledger sheet or computer screen. If any other business were to attempt to sell 20 times as much product as he actually had on hand, he would be convicted of fraud. Not so with our State protected FRB cartel system.

Even worse, the FRB increases in the money supply leads to inflation and the subsequent boom/bust cycle. Basically, the fractional loans expand the money supply by further FRB loans until the people are buried in debt and can no longer service it. At this point, the debtors are bankrupted and the house, car, or business assets associated with the loans are returned to the bank. However, during a bust cycle, many debtors in society default at the same time sending the defaulted upon assets back to the banks at a sliver of their former prices. For just as the boom cycle inflated the money supply and prices through the FRB process initiating new loans, the numerous defaults deflate the money supply and prices when the loans are canceled.

In America, the 2008 financial debacle was caused by the boom/bust cycle activated by excessive FRB loans to non-qualified borrowers. When the original manageable interest-only payments reset to the higher interest and principal payments, the house owners defaulted en masse (many bankrupting themselves in the process). The meteoric rise in prices during the housing boom can be traced back to FRB system bubbling up the money supply through approving practically all mortgages. Of course, the central bank is designed as a lender of last resort if banks suffer too many defaults at any given time. But 2008 bust was bigger than the centrally planned cartel-managers could manage. In fact, the losses were so great that the big banks could not borrow enough money from the Fed Reserve to avoid bankrupting themselves (like they had so many consumers); therefore, the central banks and its crony cartel banks ran to the USA Treasury. Shamefully, rather than pay the piper for the FRB misdeeds, they instead sought State bailouts claiming they were TBTF. In essence, society suffered doubly from the evils inherent within the FRB cartel – it loses copious amounts of wealth during the bust period and then is forced to pick up the tab to “save” the banking systems profits. Is this really And Justice For All?

Ron Paul explains his thoughts on the banking cartel (which corroborates my research) in his book End the Fed:

American presidents actually worked to implement and defend the gold standard, which put a brake on the ability of the largest banks to expand credit without limit. The gold standard worked like a regulator in this way. Ultimately, banks had to function like every other business. They could expand and make risky loans up to a point, but when faced with bankruptcy, they had nowhere they could turn. They would have to contract loans and deal with extreme financial pressures. Risk bearing is a wonderful mechanism for regulating human decision making. This created a culture of lending discipline.

In the jargon of the day, the system lacked “elasticity.” That’s another way of saying that banks couldn’t expand money and credit as much as they wanted. They couldn’t inflate without limit and count on a centralized institution to bail them out…

The banking industry has always had trouble with the idea of a free market that provides opportunities for both profits and losses. The first part, the industry likes. The second part is another issue. That is the reason for the constant drive in American history towards the centralization of money and banking, a trend that not only benefits the largest banks with the most to lose from a sound money system, but also the government, which is able to use an elastic system as an alternative form of revenue support. The coalition of government and big bankers provides the essential backbone of support for the centralization of money and credit…

Consider the Soviet case: to my knowledge, no business ever went under with the Soviet system but society in general grew ever poorer. Think of that Soviet system applied to the banking industry and you have the Fed.

Sincerely,

Orrin Woodward

Posted in Freedom/Liberty | 13 Comments »

And Justice For All

Posted by Orrin Woodward on April 30, 2014

Lady Justice

Lady Justice

I am so excited to be finally releasing the first of a trilogy of books on the never-ending power-struggle between the State and Society in human history. And Justice for All will be released at the LIFE Leadership Major Convention in Columbus Ohio in June. I am so thankful to the LIFE Leaders who have blessed me with their friendship, thoughts, and suggestions to make this book better.

A special thanks to my amazing wife Laurie Woodward and our two youngest sons (Lance and Jeremy) for participating in our family discussions upon the concepts in this book. I have experienced first-hand the growth of these two teenager of their knowledge of the roles of the State and Society. 

Here is a short segment from the book to illustrate the power of ideas in one’s life.

Sincerely,

Orrin Woodward

Author Warren T. Brookes captures how the duality within human nature and methods for creating wealth has led to a division within the science of economics as well:

One view, defined by Adam Smith and Jean-Baptist Say, is that wealth is primarily metaphysical, the results of ideas, imagination, innovation, and individual creativity, and is therefore, relatively speaking, unlimited, susceptible to great growth and development . . . After all, if wealth truly is metaphysical, the result more of mind than matter, the “wealth of nations” has to be seen as the direct result of the creative activity of individuals and the degree to which that activity is either liberated or restricted by governmental, trade, or societal structures and strictures . . . The other, espoused by Thomas Malthus and Karl Marx, contends that wealth is essentially and primarily physical, and therefore ultimately finite. The modern presentation of this view argues that since usable energy is steadily diminishing into entropy, all wealth is really cost to be shared more equitably . . .  If one believes that wealth is primarily a function of material resources, and is therefore limited (or declining), it is only natural that one would see the role of economic policy as the just and collective conservation, distribution, and redistribution of these limited resources until the end is reached.

Smith and Say believe wealth is metaphysical, and since ideas are unlimited, society should employ the “economics means” of wealth creation to raise the tide of humanity and its societal ships. In contrast, Malthus and Marx believe wealth is physical, and since resources are limited, society should employ the “political means” of wealth expropriation to direct the tide equitably between societal ships. This divergence in economic thought relates back to the divergence in methods to create wealth which tracks back to the divergence within man himself.

One of the key objectives of this book is to educate leaders in the systematic interactions between these two opposing forces within society.  For only when this is understood can we achieve long lasting concord within society.  Towards that end, there are three questions that must be answered in order to achieve enduring concord within society.

  1. What areas of society prosper best under liberty and persuasion?
  2. What is the proper role of government within society to ensure justice for all?
  3. How does society check government’s “monopoly of force” from expanding into areas it doesn’t belong?

Posted in Freedom/Liberty, LIFE Leadership | 23 Comments »

Ancient Greece’s Power Pendulum

Posted by Orrin Woodward on April 19, 2014

The Six Duties of Society (SDS) and the Five Laws of Decline (FLD) are present in every human society because it the seeds of both processes are inherent within the human heart. LIFE Leadership is a company that focuses on expanding the SDS and restraining the FLD. In a similar fashion, every successful society rises under the impetus of the SDS and eventually falls when the FLD kill it.

I promise that anyone who reads history with an SDS and FLD mindset will see it everywhere. For instance, the following video about the Greeks and the Power Pendulum is from a talk I gave last year. Listen to the video and tell me where else you have seen the FLD working within society.

Sincerely,

Orrin Woodward

Posted in Freedom/Liberty, LIFE Leadership | 5 Comments »

Robinson Crusoe: The Entrepreneur

Posted by Orrin Woodward on April 16, 2014

Financial Fitness Pack

Financial Fitness Pack

This is part 2 of Hernando de Soto’s enlightening example of the savings process role in a non-State-interventionist’s free market economy.  LIFE Leadership has taught, since its inception, the three keys to wealth (1. Long term Vision; 2. Delayed Gratification; 3. Utilize the Power of Compounding). Unfortunately, the State does not follow these concepts and, since 1913, it has rarely attempted to apply these principles. Instead, it chooses inflation, taxation, and debt accumulation, seeking short-term bandaid fixes while the underlying issues become a greater risk to society’s future.

Needless to say, the current lack of long term vision, delayed gratification, and positive power of compounding must be changed. I believe the only way to change the political process is to change the thinking of the populace. Instead of demanding the State take care of everything, what if we put the State on a fixed budget and demanded they balance it? Imagine someone in Washington having to balance the budget like practically every household in the world must.

The State must end the temporary stopgaps (printing money and debt growth) which only mortgage our children’s financial futures to satisfy the State’s financial lunacy.

What can we do? We can start by displaying financial literacy in our own home by applying the principles from the LIFE Leadership Financial Fitness Pack. On a weekly basis, I am receiving letters, emails, and LIFE Lines describing how the Financial Fitness Pack has changed their financial future. Indeed, how can we criticize the financial mess in Washington until we model the proper behavior personally?

Let’s lead our homes first and then find leaders who will do the same in every branch of government.

If you have applied the principles from the Financial Fitness Pack and have achieved progress in your personal financial situation then please share a comment below.

Sincerely,

Orrin Woodward

Robinson Crusoe’s production process, like any other, clearly arises from an act of entrepreneurial creativity, the actor’s realization that he stands to benefit, i.e., he can accomplish ends more valuable to him, by employing action processes which require a longer period of time (because they include more stages). Thus action or production processes yield capital goods, which are simply intermediate economic goods in an action process whose aim has not yet been reached. The actor is only willing to sacrifice his immediate consumption (i.e., to save) if he thinks that by doing so he will achieve goals he values more (in this case, the production of ten times more berries than he could gather by hand).

Furthermore Robinson Crusoe must attempt to coordinate as well as possible his present behavior with his foreseeable future behavior. More specifically, he must avoid initiating action processes that are excessively long in relation to his savings: it would be tragic for him to run out of berries (that is, to consume all he has saved) halfway through the process of producing a capital good and without reaching his goal. He must also refrain from saving too much with respect to his future investment needs, since by doing so he would only unnecessarily sacrifice his immediate consumption. Robinson Crusoe’s subjective assessment of his time preference is precisely what enables him to adequately coordinate or adjust his present behavior in relation to his future needs and behavior.

On the one hand, the fact that his time preference is not absolute makes it possible for him to forfeit some of his present consumption over a period of several weeks with the hope of thus being able to produce the stick. On the other hand, the fact that he does have a time preference explains why he only devotes his efforts to creating a capital good he can produce in a limited period of time and which requires sacrificing and saving for a limited number of days.

If Robinson Crusoe had no time preference, nothing would stop him from dedicating all of his efforts to building a hut right away (which, for example, might take him a month minimum), a plan he would not be able to carry out without first having saved a large quantity of berries. Therefore he would either starve to death or the project, out of all proportion to his potential saving, would soon be interrupted and abandoned. At any rate, it is important to understand that the real saved resources (the berries in the basket) are precisely the ones which enable Robinson Crusoe to survive during the time period he spends producing the capital good and during which he ceases to gather berries directly.

Posted in Finances, Freedom/Liberty, Leadership/Personal Development, LIFE Leadership | 9 Comments »