The Ati-thesis , Marxism

"By that definition, a state capitalist country is one where the government controls the economy and essentially acts like a single huge corporation, extracting the surplus value from the workforce in order to invest it in further production.[3] Friedrich Engels, in Socialism: Utopian and Scientific, argues that state capitalism would be the final stage of capitalism consisting of ownership and management of large-scale production and communication by the bourgeois state.[4]"

Quoted from Wikepedia

Sunday, February 28, 2016

Home Rule VS Dillon's Law


Sample of the book, Public Private Relationships and The New Owners of the Means of Production,, from the chapter To Be or Not To Be Sovereign. To read more and to find out which Maine towns have been made indentured to a corporation by the Maine Legislature purchase the downloadable manuscript in the side bar on the right.

In 1993 The Maine Legislature chartered its first Maine town that would be governed as an “instrumentality of the state” The town was given the name, The Loring Development Authority. It occupied a former military base which had lost 1000 jobs. Why let a crisis go to waste? A chance to implement a new political system!

The story of the Loring Naval Base, The Cutler Navy Base and the Brunswick Navy Base are another chapter in the saga of what happens to when The United States withdraws its' military presence and a void is created into which hostile forces move. The United States Navy was protecting America and Maine from our communist and fascistic foes in more ways than anyone realized. Once the military moved out, communism and fascism moved in on the territories in Maine formerly occupied by the United States military. All three bases are now Maine Constitutional no-go zones transformed by the Maine Legislature as municipal corporations serving as instrumentalists of the state, not only an increase in power of central government over local government but a complete absorption of a legal structure of local government- the municipal corporation into the all encompassing corporate state.

Home Rule VS Dillon's Law

24 years earlier in 1969 Maine became a constitutional Home Rule state:

Maine Constitution: Municipal Home Rule.

Section 1. Power of municipalitiesto amend their charters. The inhabitants of any municipality shall have the power to alter and amend their charters on all matters, not prohibited by Constitution or general law, which are local and municipal in character. The Legislature shall prescribe the procedure by which the municipality may so act.

Section 2. Construction of buildings for industrial use. For the purposes of fostering, encouraging and assisting the physical location, settlement and resettlement of industrial and manufacturing enterprises within the physical boundaries of any municipality, the registered voters of that municipality may, by majority vote, authorize the issuance of notes or bonds in the name of the municipality for the purpose of purchasing land and interests therein or constructing buildings for industrial use, to be leased or sold by the municipality to any responsible industrial firm or corporation.

The Resources Page for the National League of Cities explains the four types of power which are authorized for municipal governments in the USA:

Types of Authority Given
Political power in a state can be divided into three spheres: the local government, the state government and the functions that the two governments share. Within the local sphere, there are four categories in which the state allows discretionary authority:

Structural – power to choose the form of government, charter and enact charter revisionsFunctional – power to exercise local self government in a broad or limited mannerFiscal – authority to determine revenue sources, set tax rates, borrow funds and other related financial activitiesPersonnel – authority to set employment rules, remuneration rates, employment conditions and collective bargaining

Narrow Government Authority: Dillon's Rule

“Dillon's Rule is derived from the two court decisions issued by Judge John F. Dillon of Iowa in 1868. It affirms the previously held, narrow interpretation of a local government's authority, in which a substrate government may engage in an activity only if it is specifically sanctioned by the state government….” 

A municipal corporation can exercise only the powers explicitly granted to themA municipal corporation can exercise only the powers explicitly granted to themThose necessarily or fairly implied in or incident to the powers expressly grantedThose essential to the declared objects and purposes of the corporation, not simply convenient, but indispensable2... Dillon's Rule states that if there is a reasonable doubt whether a power has been conferred to a local government, then the power has not been conferred National League of Cities
It is beyond reasonable doubt that the Maine Constitution through Municipal Home Rule confers structural, functional and fiscal power to local government. Municipal Home Rule authorizes the inhabitants of the municipalities to make amendments to their municipal charter and mandates that the Legislature shall “prescribe the procedure by which the municipality may so act“. Home Rule also authorizes municipalities to issue bonds provided approval by a majority vote through a public referendum.

In chartering the three municipal corporations deemed to be instrumentalities of the state, the Maine Legislature failed to preform its constitutional duty to prescribe the procedure by which the inhabitants of the municipalities may amend their own charter. Instead the Legislature prescribed the procedure by which a board appointed by the state would govern the three municipal corporations, all three municipal corporations are assigned names of regional development authorities. By declaring each corporation to be an “instrumentality of the state”, the Maine Legislature violated Article IV Part Third Section 14 of the Maine Constitution which provides an exception to the prohibition against the Legislature chartering corporations by special acts of legislation for municipal purposes. In so making an exception for municipal purposes, the Constitution precludes chartering corporations for private, state, or regional purpose. 

Section fourteen, relating to corporations is compressive and peremptory.. It relates to all corporations, except only those for municipal purposes. It clearly prohibits their creation by special acts if the objects desired can be secured under existing general laws.'  Governor Seldon Connor's Speech 1876 3

 In the state governed municipal corporations, the constitutional terms of issuing bonds in Municipal Home Rule are scrapped and replaced with statutory terms. Municipal corporations so chartered without establishing municipal procedures for amending their charters, have no method by which to form municipal governments and are left without municipal procedures for conducting a public referendum on the issuance of bonds: The charters for the three state governed towns, Loring Development Authority, Washington County Development Authority, and Midcoast Regional Redevelopment Authority, are in many respects identical. The authority granted for issuing bonds reads like thus: 

2. Authority.   The authority may issue bonds from time to time in its discretion to finance the undertaking of an authorized activity under this article, including but not limited to the payment of principal and interest upon advances for surveys and plans, and may issue refunding bonds for the payment or retirement of bonds previously issued.

A. The principal and interest of bonds must be made payable solely from the income, proceeds, revenues and funds of the authority derived from or held for activities under this article. Payment of the principal and interest of bonds may be further secured by a pledge of a loan, grant or contribution from the Federal Government or other source in aid of activities of the authority under this article and by a mortgage of an urban activity or a project or part of a project, title to which is in the authority. [2011, c. 136, §4 (NEW).]

B. Bonds issued under this section do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction and are not subject to other laws or charters relating to the authorization, issuance or sale of bonds. Bonds issued under this article are declared to be issued for an essential public and governmental purpose and, together with interest on and income from the bonds, are exempt from all taxes. [2011, c. 136, §4 (NEW).]

The authority so granted is not the authority granted to municipalities by the Maine Constitution, that of a municipal bond authorized by a public referendum. 

Recall that the first thing the founding fathers of Maine's corporate state wanted to do was to eliminate public referendums on bonds. This was recommended by the corporate state founding fathers a mere eight years after Municipal Home Rule had been added to the Maine Constitution. Municipal Home Rule authorizes the use of municipal bonds and only municipal bonds for economic development requiring a majority vote by a public referendum. 

In 1977 the Report-Governor's Task Force For Economic Redevelopment, Recommended Legislation For An Economic Development Program -110th Congress, called for the elimination of local referendums on municipal bond issues 

2, eliminate the requirement for a local referendum on municipal bond issues.- Governors Task Force for Economic Redevelopment-1976

The Municipal Home Rule requirement for local referendum on bond issues is eliminated in the three municipalities designated to serve as instrumentalities of the state. These three municipalities can be likened to occupied territories existing as islands of an alternate system of government within the State of Maine. Their names imply that they are regional development authorities but the tax payer dollars they reel in are invested within their own geographical territory. 

Statistics in Maine places ranked by per capita income shows that the surrounding neighbors of the development authority towns have a per capital income that is on par with the rest of Maine, more or less. The region which the three regional development corporations develop is contained in the boundaries of their own municipal corporation. The names of the development corporation towns are not found in the statistics cited on .Maine places ranked by per capita income The Loring Air Base is found but not the town of Loring Development Authority. The towns of Washington are found but not the municipal corporation of the Washington Development Authority. There are no statistics to be found for the town of Midcoast Regional Redevelopment Authority and yet all three are chartered as municipal corporations. Are they just off the map of Maine? 

The terms of bond repayment are written to sound like standard business investments to the undiscerning ear. The language seems intentionally misleading when it states that municipal corporations must cover the principal and interest of bonds payable solely from the income, proceeds, revenues and funds of the authority derived from or held for activities under this article. The qualifier “derived from” is applicable to “income proceeds and revenues” the qualifier “held for” applies to loans and grants from the federal or state government, which means the federal and state taxpayers cover the cost of the municipal corporations bond's. Whether it is a federal loan taken to pay for the first loan or a grant or a refunding bond, or through the ubiquitous “gifts from any source”, the implication is that the intention to pay back the bond money through created wealth is not important. The bonds can be paid back by redistributed wealth acquired from the federal government, or any source. The main function of the corporate state is to accumulate and redistribute capital and to use capital to leverage more capital. Wealth creation is incidental to the goal of capital accumulation by any means. A continual stream of capital derived from loans and grants can create the illusion of economic development success while serving to increase inflation and reducing the purchasing power of our dollars, which is a hidden means of wealth redistribution.

THE MAINE DEVELOPMENT FOUNDATION 10 §915. LEGISLATIVE FINDINGS AND INTENTThere is a need to establish a new basis for a creative partnership of the private and public sectors for economic development, a partnership which can capitalize on the interests, resources and efforts of each sector, but which does not compromise the public interest or the profit motive. The state's solitary burden to provide for development should lessen through involving the private sector in a leadership role. In so stating that 1977, c. 548, §1 (NEW).

The statement made that the bonds issued do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation and are not subject to other laws or charters relating to the authorization, issuance or sale of bonds, gives substance to the hypothesis of this book that Maine is no longer a state governed by its Constitution but is instead governed by the bylaws of development corporations. The next statement declares that the bonds issued are for an essential public and governmental purpose. If the bonds issued are for a government purpose, they are governed by the Constitution and statutes of Maine. The Legislature has no authority outside of that granted by the Maine Constitution. 

The following description of Home Rule states that  “although home rule powers are broad, in no event may a municipality enact a law that is specifically precluded by state law or that is contrary to state law.” The same relationship holds between the Legislature and the Constitution of Maine “although state legislative powers are broad, in no event may the Legislature enact a law that is specifically precluded by the Maine Constitution or that is contrary to the Maine Constitution: 

Home rule gives municipalities the power to determine their own goals without interference from the state Legislature or state agencies. It gives municipalities room to experiment with new approaches to government without first seeking approval from the state. It also allows municipalities to act more quickly on issues of local concern because they do not have to seek approval or their actions from the state Legislature.  although home rule powers are broad, in no event may a municipality enact a law that is specifically precluded by state law or that is contrary to state law. For example, a municipality may not vote to decriminalize narcotics that are illegal under state  law. It may, however, strengthen existing state laws. For instance, a municipality may act to restrict the sale of alcohol to a greater degree than is done in other municipalities.

Towns chartered by the Legislature to serve as instrumentalities of the state cannot collect property tax or provide municipal service using the general taxpayer funds. The state governed municipalities find other ways of providing the necessary services leaving one to wonder why the development authorities are chartered as municipal corporations as they are not governed by constitutional rule of law for municipal corporations and cannot perform the most essential functions of a municipal corporation.

Thursday, February 25, 2016

Donald Trump. Tax Opacity and the Secret World of Public Private Relationships

No surprise that my tweets promoting this book and its message are being blocked by the #mepolitics twitter stream. Suffice it to say that the #mepolitics twitter stream is the voice of the hegemony that my book confronts and challenges. The #mepolitics twitter stream is the combined voice of Maine political power and the Maine main stream media. Public Private Relationships and the New Owners of the Means of Production confronts the ways in which the hegemony of power has exploited the people of Maine and betrayed Maine's  Constitution.

In other blocking news, national radio host Dana Loesch put out an excellent video on why she does not support Donald Trump and does not accept Mr Trump as a conservative. The video goes by the title of The Truth About Donald Trump and tells a story of Trumps past and his mobster business partners. Dana asks "Do we want a man with such a history picking cabinet members ?" Dana Loesch's  presentation is informed, documented and down to earth. Upon reading it, I became a Dana Loesch fan. Unfortunately it is no longer available on line. It has vanished without a trace and no news is to be found anywhere as to why.

A blog post by Caleb Howe on Red State gives the highest praise for  Dana Loesch's  video:

The REAL Donald Trump: Come Get To Know Him

You can still learn about Donald Trump's history of mobster associations on Dana Loesch's blog but a video is a far more potent means of getting a message out to a greater number of people.

I am going out on a limb here to say that Donald Trump and his lawyers are behind the dis-empowerment of Dana Loesch's voice. I don't have certain proof of this. It is based on logical deduction which starts with these two questions "Who gains by taking down Dana Loesch's video depicting Donald Trump's business relationships with mobsters ? and "Who has the means to do so ?". The answer to those questions point in an unwavering line to Donald Trump. I could add another question "Who has a long history of silencing others with threats of law suits ?"

This is important in relationship to my theory about the strange phenomena of Donald Trump's popularity. What is the cause of it? My conclusion is that Donald Trump transfers an illusion of empowerment to a political faction which feels dis-empowered. Donald Trump is a very rich man and a household name and promises to stick it to the GOP which is what has driven his base since they perceived Ron Paul to be treated unfairly by the GOP in the 2012 election. That is when the faction which has evolved into the Donald Trump base started campaigning against the GOP rather than against Obama, the political phenomena that inspired the counter phenomena of the Tea Party movement. Donald Trump's wealth and celebrity is experienced as their own power to stick it to the GOP. The entire substance of the antiestablishmentarian movement has devolved into the will to power. Beyond that the antiestablishmentarian movement has no identifiable belief system. That is why, no matter what Donald Trump says or does his base remains loyal. Donald Trump has become the equivalency of their own empowerment and that is the entirety of what motivates the antiestablishmentarian political faction. Other causes come and go but the will to power remains the same.

Ron Paul is a Tea Party hero primarily because of his activism in calling for an end to the federal reserve which Paul describes as both corrupt and unconstitutional. Paul  maintains that the Federal Reserve System is inflating our currency. In my book, Public Private Relationships and the New Owners of the Means of Production, I submit that the largest source of inflation is the growth of public private relationships, accompanied a growing centralization of economic capitalization by government- a capitalization strategy based on leveraging and leveraging and leveraging again- just as the Donald does. To substantiate my position I submit this chart from the US Census Bureau:

Donald Trump was born and bred into the system of public private relationships, starting out his own career by using his father's political connections to transform the family business from one using tax abatement for building low income housing to one using tax abatement's to build high priced hotels and apartments for the well to do. Donald Trump created the Trump brand as a symbol of gaudy over excess. 

As Mitt Romney calls for the candidates to reveal their tax records, Mr Trump hides behind tax privacy laws but promises to reveal his tax records after the primaries are over and done with, not exactly in those words but in this case the meaning is transparent. Mr Trump tells us he always makes sure to pay the lowest taxes. Read my book, Public Private Relationships and the Owners of the Means of Production to see how that is done with the help of the government. Given that Mr Trump is postponing the release of his tax records until after crucial votes, it is fair game to speculate on what we may discover within them.
According to Whit Richardson writing about the Cate Street Scandal in Pay Day At The Mill, an article published in the Portland Press Herald in April of 2015. there exists an entire investment industry exclusively targeting refundable tax credits. Mr Trump, sophisticated and all knowing as he is, must be aware of such an industry. Mr Trump explains his strategy as "paying the lowest tax possible" In the case of refundable tax credits that means getting the public to pay taxes to the private investor- or to put it another way to refund a large share of the capitalists investment for which the public receives no comparable share in profits. In the case of Maine, this deal is sold to the people as "job creation" . In exchange for capitalizing a large share of a privately owned operation, some tax payers will get wage earning jobs with high pay and good benefits all arranged by the state. 

Mr Trump tells us that he has been negotiating great deals for himself all these years and now he will do that for the people. In terms of negotiating great deals for himself aiming to pay as little tax a s possible, Mr Trump is an example of whom the Maine Legislature aims to please when they keep increasing the amount and expanding the limit of the refundable tax credits. In 2013 when the Expanded and Improved Seed Capital Tax Credit was passed, it was expanded and improved for capitalist investors like Mr Trump while the terms got worse for the taxpayers of Maine who have to fund the benefits going to private capitalists. When candidate Trump tells us that now he is going to negotiate great deals for the people, does he mean he will do away with refundable tax credits which require the people to underwrite private investments? I doubt it.

And so when Mr Trump finally reveals his tax records. long after the crucial primary votes needed for him to secure the nomination of the one time conservative party, will we find out that he has been securing for himself the lowest taxes possible trough tax exemptions and matching funds combined with refundable tax credits? A fair question to ask of a candidate who will not provide the voters with relevant information pertaining to the claims Mr Trump makes about his own success and how he got there.

My book Public Private Relationships and the New Owners of the Means of Production takes a look at how the Maine Legislature redistributes public wealth to private interests via public private relationships. It is a story line local to Maine about a phenomena that is taking place globally. I hope it will inform the reader and cause him or her to question with care the statements made by politicians like Mr Trump.

Sunday, February 14, 2016

New Book: Public Private Relationships and The New Ownership of The Means of Production

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or the last six years Mackenzie Andersen has been independently researching the history of Maine's economic development statutes. Public Private Relationships and The New Owners of the Means of Production takes all the research she accumulated since 2009 and hones it down into a snap shot. The result is an new perspective on the history of Maine focusing on the years since 1979 when under the Longley Administration, the State of Maine began its transformation into the corporation of Maine.
In 1979 Governor Longley invited the heads of Maine Industry to take the leadership role in writing new statutes which would over ride the Maine Constitution's prohibition against corporations chartered by special acts of legislation. Two corporations were chartered. The Maine Capital Corporation, a private investment corporation subsidized with tax credits and the Maine Development Foundation,which would design and function as activists for corporate development plans for Maine. That was the beginning of an ever expanding network of state corporations.

While this story focuses on the locality of Maine it is both a national and global story. It is both Agenda 21 and global capitalism as both are mutually compatible and both exemplify thinking globally acting locally. The Legislature and administrations of Maine justified the transformation of Maine from a state governed by the consent of the governed, a home rule state in which the Constitution permits local municipal referendums on bonds for economic development- to a state wide corporation governed by corporate bylaws and un-elected boards. The justification used to sell the new political philosophy is that other states are doing it and Maine must follow suit to compete.

The founders of the Maine Capital Corporation identified two primary goals, one of which was to eliminate public referendums. Public Private relationships and the New Owners of the Means of Production documents some of the innovative ways used by the Maine Legislature to achieve the goal of eliminating local public referendums.

The focus of the story line is Maine but folk wisdom deems that as Maine goes so goes the nation. The corporate state of Maine primarily focuses on leveraging capital as opposed to measurable wealth creation. It is no surprise that since 1979, there has been an exponential increase in inflation in the USA coinciding with Maine's transformation into a centrally managed economy. Since the establishment  of Maine's corporate state the gulf between the haves and the have nots in Maine has widened: Mackenzie Andersen  examines how the centrally managed economy organized by public private relationships works and mines its historical and political philosophic foundations.

The first two chapters and table of contents can be downloaded for free. In the first chapter Mackenzie defines her own take on conservatism and discusses the trans-formative Kelo vs New London Supreme Court decision so  praised by candidate Trump as to declare it "100 % correct". Mackenzie begs to differ.  In the next chapter Mackenzie discusses Governor Seldon Connor's inaugural speech and submits her own adjudication of what she identifies as a misinterpretation in the 1951 Opinion of the Justices.