Category: Journal of a Wayward Philosopher

The Ills of Compulsory Schooling Continued

submitted by jwithrow.compulsory schooling

Journal of a Wayward Philosopher
The Ills of Compulsory Schooling Continued

January 30, 2015
Hot Springs, VA

The S&P opened at $2,019 today. Gold is down to $1,263 per ounce. Oil is still floating around $44 per barrel. Bitcoin is up slightly at $230 per BTC, and the 10-year Treasury rate opened at 1.70% today.

Yesterday we discussed the majesty that is childhood and we opined that compulsory schooling severely curtails the childhood experience and sets children up to struggle in adulthood. Today we will expand upon this and try to present a positive alternative.

First we must ask a question: why do we send our children to school?

Is it because we went to school when we were a child? Is it because we don’t have time to watch them during the day? Is it because we think they won’t learn unless they go to school? Is it because we think they must go to school in order to get into college? Is it because we think they need to go to school to learn social skills? Do we know?

Let’s glance back in time a little bit to the formative years of the modern school system:

“Ninety-nine [students] out of a hundred are automata, careful to walk in prescribed paths, careful to follow the prescribed custom. This is not an accident but the result of substantial education, which, scientifically defined, is the subsumption of the individual.” – William Torrey Harris, United States Commissioner of Education from 1889-1906

“Fitche laid it down that education should aim at destroying free will, so that, after pupils have left school, they shall be incapable, throughout the rest of their lives, of thinking or acting otherwise than as their schoolmasters would have wished.” – Bertrand Russel, British philosopher

“Children who know how to think for themselves spoil the harmony of the collective society…” – John Dewey, “father of modern education”

Eww. The school’s history textbooks left those little tidbits out.

We are on the record saying the public school system fails but that’s not entirely true. The public school system certainly fails to foster critical thinking and self-reference but that’s by design. The public school system has actually been wildly successful when judged by its original mission.

What compulsory education really does is prepare our children for an institutionalized life of subordination. We send our children to school not so they can flower into beautiful individuals capable of accessing their infinite potential but rather to mold them into obedient worker bees that will willingly assimilate into the status-quo as maintained by the establishment (governments/central banks/Wall Street/multi-nationals/Big-Agra/Big-Pharma/Big-Insurance/Big-Science/mega non-profits). This is why the public school system exists. As we’ve mentioned many times, this is not an indictment of teachers and local school employees – most of them work diligently to improve their school. But how do you reform an institution that already wildly succeeds at doing what it was created to do?

In school our children learn to hide their true self by putting on a mask and conforming to whatever is popular. They learn to follow arbitrary rules and to unquestioningly obey the “authorities”. They learn to uncritically memorize whatever information is presented to them and to regurgitate that information back in a way that is pleasing to the teacher. They learn that their job is to sit quietly and listen to the teacher without interrupting; anything else requires explicit permission. They learn that grades are the sole measurement of success thus they are conditioned to constantly seek external confirmation. They learn that life is a series of hoops to be struggled through because their educational curriculum consists of a tiered system whereby students advance to the next “grade” year after year. Children are constantly told that getting good grades is necessary to get into a good college so it is implied that the purpose of life is to successfully navigate the current system in order to make it to the next system.

So after they have successfully navigated the public school system for twelve consecutive years our children are told to mindlessly rush off to whatever college will accept them. The school system has taught them absolutely nothing about money and finance but nevertheless our children are told to take on massive student loans to pay for the next step. Some public school guidance offices will even walk children through the student loan application process. “Don’t worry”, they are told, “you won’t have to start making payments until a few years after you graduate.”

So they get to college and most students view it in the same light – as a series of hoops to jump through to get to the next level. Now the goal is to maintain a good G.P.A. so they can get a good job. A few frat parties later they find themselves completing college and going to university sponsored job fairs.

What comes next? The 8-5, new suits, public transportation, parking passes, a promotion, a new car, a mortgage, a promotion, marriage, children, a new mini-van, a promotion, a home equity line to renovate the kitchen and the next thing you know our children are middle aged, stuck in a mindless career, deep in debt, and stressed to the max. They have spent the vast majority of their time working a desk job to pay for their car, their house, their vacations, and their weekend entertainment because that is what they were conditioned to do. Sure, there are plenty of people who have found fulfillment following this path but there are far more who have not.

Suppose we changed the script? What if our children were provided the time and freedom to discover and pursue their passion at a young age? What if they were not herded into school for twelve years but instead spent that time learning about themselves and the world around them? What if they developed useful skills instead of mindless dogma?

What if they then deemed college to be a waste of time and money and instead crafted a superior higher-education curriculum. The possibilities for this are endless!

Maybe they spend one year traveling the world to learn about other cultures first hand. Maybe they find a compelling opportunity during their travels and set up an international business or charity dedicated to meeting real needs and demand. Maybe they come back and seek out an internship with a master in a field they are passionate about. Maybe they skip the internship and start their own business in their chosen field. Maybe they set out to build multiple microbusinesses designed to provide diverse income streams. Maybe they decide to pursue a specialized career and seek out additional education in that field. Maybe they decide to purchase an old neglected farm and spend their days healing the land and producing superior food products.

The point is this script would allow our children to make mindful decisions about how to spend their time free from modern society’s incessant dogma aimed at guilting people into feeling the need to fit in. This script would also allow for much greater flexibility if our children decided to change careers or lifestyles at a later time – which would be extremely common. The notion of working one job for forty years and then retiring is an unnatural New Deal relic that will soon be extinct. This model is simply not viable in any capacity; the economics just do not work.

Life is not a series of rigid systems to struggle through until retirement; it is a robust opportunity for temporal exploration and spiritual growth. It would be a shame to waste such an opportunity.

More to come,

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Joe Withrow
Wayward Philosopher

For more of Joe’s thoughts on the “Great Reset” and the paradigm shift underway please read “The Individual is Rising” which is available at http://www.theindividualisrising.com/. The book is also available on Amazon in both paperback and Kindle editions.

The Majesty of Childhood

submitted by jwithrow.majesty of childhood

Journal of a Wayward Philosopher
The Majesty of Childhood

January 29, 2015
Hot Springs, VA

The S&P opened at $1,993 today. Gold is down to $1,271 per ounce. Oil is back down to $44 per barrel. Bitcoin has drifted to $225 per BTC, and the 10-year Treasury rate opened at 1.75% today.

Systemic risk in the global economy seems to be growing. The Swiss National Bank recently announced a target interest rate range of -1.25% to -0.25%. The Gnomes of Zurich must have gone into hiding. Now Singapore has announced its intent to pursue a form of easing (money-printing) in order to slow the appreciation of the Singapore dollar. No one seems to want a currency that maintains purchasing power anymore – welcome to fiat bizarro world! It would be wise to have at least 10% of your capital in physical gold and silver bullion at this point.

Moving on…

Childhood is a magical experience full of awe, wonder, excitement, and purity. Children have no paychecks to earn or mortgage payments to make. They have no investment portfolios to monitor or insurance policies to structure. They may find it to be pretty, but children could not care less about what’s happening in the gold market. With no degrees, certifications, specializations, or political experience to speak of children are completely tuned out to any implication of status; they seem to understand innately that all people are endowed with individual rights that should not be violated. Children naturally expect to be treated with honesty and dignity which is why they so often use phrases like “But you said…” or “But that’s not fair…”.

Free from these trappings, children are able to live wholly in the moment. Several Eastern philosophies hold up that very state – living wholly in the present – as the highest ideal and many hours are devoted to meditation, yoga, and other techniques designed to train the mind to be still in the present. Children are able to perfectly achieve this present mindfulness without expending any effort or energy whatsoever. This is why children will enthusiastically collect pebbles and sea shells. Adults deem these objects worthless but children are able to appreciate them for their own natural beauty and uniqueness.

Children are almost entirely self-referential until we train them to submit to arbitrary rules and restrictions. Children gain fulfillment and satisfaction from their own accomplishments, no matter how minor, with little need for external incentives and motivations. I suspect this is what Jesus of Nazareth meant when he said “Truly I tell you, unless you change and become like little children you will never enter the kingdom of heaven.”

The truth is all children are born with an inner brilliance and an indomitable will. Children are natural-born learners and their thirst for understanding is unquenchable. Childhood curiosity is unmatched as children want to know the ‘why’ for everything. A child’s mental activity is through the roof!

As we discussed last month in our entry about raising children in the modern world, modern society extinguishes curiosity and subverts individual will by institutionalizing learning and imposing harsh external expectations upon children. Simply put, hierarchy is not natural to children. By enforcing a strict hierarchal structure chock full of arbitrary rules and regulations, modern schools drown the majesty of childhood in wave after wave of contradictory authoritarianism.

On the one hand we talk endlessly about freedom and independence but then we herd our children into compulsory schools that regiment their entire day with mandatory classes and their evening with mindless homework. How can the child be free and independent if he has no time for his own interests? We tell our children that every individual is special but then we tell them they must raise their hand and ask for permission to go to the restroom. That doesn’t make the kid feel particularly special. We encourage our children to play together in cooperation but then we punish them if they try to communicate with their neighbor in the classroom. What’s the kid to make of this?

Of course we justify all of this by saying the children need to learn to follow the rules and obey authority. We never make the distinction between natural rules such as “do not steal” and arbitrary rules such as “do not go to the bathroom without a hall pass”. Likewise we never make the distinction between “respect your parents” and “do not question your teachers”. This breeds a passive populace that will unquestioningly submit to all manner of arbitrary rules, regulations, licenses, restrictions, mandates, and taxes in adulthood as long as someone in “authority” issues them. Then you end up with dishonest money and a parasitic society.

I just can’t help but wonder… what if individuals with infinite potential were not automatically plugged in to institutionalized systems of compulsory education? What if more children were left free to learn in their own way on their own schedule? What if the majesty of childhood was not crushed by a regimented schedule and arbitrary rules as soon as the child reached a particular age? What if, instead of learning to hide their brilliance and subvert their will, children learned to be self-governing and self-driven?

Until the morrow,

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Joe Withrow
Wayward Philosopher

For more of Joe’s thoughts on the “Great Reset” and the paradigm shift underway please read “The Individual is Rising” which is available at http://www.theindividualisrising.com/. The book is also available on Amazon in both paperback and Kindle editions.

The Emerging Cultural Shift

submitted by jwithrow.cultural shift

Journal of a Wayward Philosopher
The Emerging Cultural Shift

January 23, 2015
Hot Springs, VA

The S&P opened at $2,056 today. Gold is still at $1,296 per ounce. Oil is back down to $46 per barrel. Bitcoin is hanging around $233 per BTC, and the 10-year Treasury rate opened at 1.82% today.

Yesterday we examined the cultural shift towards top-down authoritarianism that occurred in America during the 20th century. We also observed a promising new cultural shift beginning to emerge; this time away from politics and towards non-coercion and free markets.

Mind you, the emerging cultural shift is still quiet and small so few people are aware of it at this time. It is also non-uniform in nature which is somewhat foreign to our way of thinking about culture in modern times. We are accustomed to thinking along the lines of hard-coded doctrine that must be accepted, believed, and adhered to. Everyone must agree on the specific bullet points handed down to them: If you are “conservative” then you must agree on these issues; if you are “liberal” then you must agree on these other issues; if you are “green” then you must agree on these issues, and so forth.

The emerging cultural shift does not fit into that top-down paradigm – it is more holographic in nature. The shift is comprised of many different ideas, views, and philosophies that sometimes overlap in certain places and other times overlap in different places. The hologram is held together by one underlying sentiment: non-coercion. The individuals who make up this emerging shift share the understanding that it is neither right nor necessary to force your ideas upon others. The old “Do unto others…” philosophy is making a comeback. With this mindset firmly in place, individuals are free to come together in those places where they overlap and they are free to diverge in those places where they do not overlap.

Everyone wins.

R. Buckminster Fuller once said: “You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.”

Guess what? The emerging cultural shift renders the current paradigm based on politics obsolete. Politics is nothing but a tool used by one group to force other groups to conform against their will. This is a win-lose model; politically connected groups win and all others lose. Politics is the almighty dragon within a top-down societal model; it is the shunned cockroach within a decentralized holographic model.

To some the holographic model sounds unrealistic. They just can’t fathom a community without a leader or a November without an election. They are like the Israelites in the book of Samuel who asked for a king to rule over them – they just couldn’t envision a better way. And who’s to blame them? For most of recorded human history people have identified with hierarchal institutional structures.

But the highest ‘entity’ in society is not the institution, it is the individual. All humans operate individually; there is no getting around that fact. Humans can choose to cooperate with one another but that is always an individual choice. All individuals are endowed with an indomitable will and they are left with the decision to either use their will or to subvert it. Institutions specialize in convincing individuals to subvert their own will for the benefit of the institution.

The emerging cultural shift is gaining steam for two reasons: ethics and economics.

Most of us are taught some variation of “love your neighbor as yourself” in our youth but we can very clearly see that this ideal is at odds with our authoritarian societal model. Political institutions litter the face of the Earth and they each subject individuals to all manner of taxes, regulations, mandates, restrictions, licenses, tags, identifying documents and they back these edicts with the threat of force and imprisonment. Sometimes these political institutions compete with each other and resort to violence as a resolution. Other times these institutions collude with each other to further enrich the ruling class at the expense of the public. It’s very difficult to expect individuals in society to exhibit a sound code of ethics when political aggression rules the day.

Further, most of us fundamentally understand we must produce before we can consume; there is no such thing as a free lunch as the old cliché goes. We also understand that if we consume less than we produce in the present then we have a surplus. That surplus can either be saved for future consumption, invested to increase future production, or it can be given to a neighbor in need. Each of these surplus scenarios is a win for both the individual and for society.

Our authoritarian society makes it extremely difficult for individuals to create a surplus, however, because it skims roughly 50% of individual production off the top via taxation. We are taxed on all income earned, all investment gains, all real estate owned, all vehicles owned, all gas purchased for those vehicles, all food and goods purchased, and any inheritance received. The political institutions then destroy all of the surplus skimmed from individual production on warfare, welfare, political favors, and unsustainable public works projects. This is why government buildings are always and everywhere the most prestigious buildings in existence – they are built with stolen money! To add insult to injury, the most powerful of our political institutions have not been content with their portion of the skim so they have borrowed massively against the production of future generations to enhance their spree of warfare, welfare, political favors, and public works. Such economic activity destroys capital and creates a net deficit which is a tremendous loss for both individuals and for society.

Free, innovative, entrepreneurial commerce creates an economic surplus while political intervention, aggression, and redistribution creates an economic deficit. Surpluses enrich while deficits impoverish. Factor in the ethical implications and the choice is clear, is it not?

More to come,

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Joe Withrow
Wayward Philosopher

For more of Joe’s thoughts on the “Great Reset” and the paradigm shift underway please read “The Individual is Rising” which is available at http://www.theindividualisrising.com/. The book is also available on Amazon in both paperback and Kindle editions.

How to Insulate Your Portfolio from the Fed’s Financial Destruction

submitted by jwithrow.zen garden portfolio

Journal of a Wayward Philosopher
How to Insulate Your Portfolio from the Fed’s Financial Destruction

January 16, 2015
Hot Springs, VA

The S&P opened at $1,992 today. Gold is up to $1,267 per ounce. Oil is back down under $47 per barrel. Bitcoin is checking in at $210 per BTC, and the 10-year Treasury rate opened at 1.72% today. Famed Swiss economist Marc Faber went on record at a global strategy session this week saying he expected gold to go up significantly in 2015 – possibly even 30%.

Yesterday we examined the Fed’s activity since 2007 and we noticed $3.61 trillion dollars sloshing around in the financial system that didn’t exist previously. Then we put two and two together and realized the answer was four… not five as the mainstream media claims. We came to the conclusion that the entire financial system is now dependent upon exponential credit creation out of thin air and that financial destruction cometh once the credit expansion stops.

Today let’s discuss some ideas for insulating our balance sheet from the ongoing financial crisis and the inevitable crack-up on the horizon.

The first and most important thing to understand is the difference between real money and fiat money. The Fed (and other central banks) issue fiat money at will – created from nothing. Dollars, euros, yen… none of them are real money; they are all fiat. These currencies do not represent real work, savings, or wealth and they certainly are not backed by anything of substance.

Most of these currencies exist as digital units out in cyberspace but if you read one of the paper notes in circulation it is completely honest with you:

”This note is legal tender for all debts, public and private.”

That means central bank notes are really good for paying debts but that’s about the extent of it.

All of these currencies depreciate over time in terms of purchasing power because they have no intrinsic value and their supply is unlimited. Even when a currency is “strong” as the U.S. dollar is currently, it is only strong measured against other currencies. Measure the dollar against your cost of living and you will see the real picture.

The point is we can’t trust central bank money.

Which leads us to the first way to insulate your portfolio from the Fed’s carnage: convert fiat money into real money – gold and silver. Gold and silver were demonetized in the late 60’s and early 70’s and the establishment has been downplaying their significance ever since. But there is a reason every central bank in the world still stockpiles gold. Gold and silver have been money for centuries and that is not going to change in a brief fifty year time span. Maybe one day cryptocurrencies will take the torch from gold and silver but that day is not today.

It is wise to maintain an asset allocation of 10-30% in physical gold and silver bullion. Precious metals will skyrocket in price measured against fiat currency as the Fed’s financial destruction plays out but in reality they are just a store of value. Precious metals will skyrocket in price only in terms of the fiat currency that is depreciating so dramatically.

Energy and commodity stocks, especially well managed resource companies, stand to boom as the monetary madness plays out as well. This is not a long-term strategy, however, so any gains captured during the commodity boom should be converted into hard assets or blue-chip equities after they have finished falling in price. There is enormous risk in the stock market so equities should make up a smaller portion of your asset allocation: 10-15% perhaps.

Despite everything said about fiat currency above, cash should still make up a large percentage of your portfolio; probably 20-30%. Cash loses purchasing power over time but it is still the primary medium of exchange so it is necessary to remain liquid. Ideally you should keep 6-12 months worth of reserve funds in cash and any cash above that threshold can be used to acquire assets as they go on sale. And plenty of assets will go on sale when the credit expansion stops.

The remainder of your asset allocation should be in real estate, provisions, other hard assets, and anything else that improves your quality of life. With all of the unjust systems and institutions to contend with it is easy to forget most of us are far richer than the wealthiest individuals living at the beginning of the 20th century. We have central heating and air in our homes, reliable auto travel over long distances, affordable air travel to anywhere in the world, way too much entertainment, cheap access to the internet which opens the door to all manner of information/commerce/entertainment, pocket-sized computers that double as telephones, and many other modern comforts that would be considered futuristic luxuries by the wealthiest of the wealthy one hundred years ago.

After properly aligning your portfolio to weather the Fed’s financial storm, focus on aligning your life to maximize fulfillment, purpose, and peace of mind. After all, your most valuable asset is time and time cannot be measured in financial terms.

More to come,

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Joe Withrow
Wayward Philosopher

For more of Joe’s thoughts on the “Great Reset” and the fiat monetary system please read “The Individual is Rising” which is available at http://www.theindividualisrising.com/. The book is also available on Amazon in both paperback and Kindle editions.

How the Fed Destroys the Middle Class

submitted by jwithrow.the Fed

Journal of a Wayward Philosopher
How the Fed Destroys the Middle Class

January 15, 2015
Hot Springs, VA

The S&P opened at $2,013 today. Gold is up to $1,262 per ounce. Oil rallied back up to $48 per barrel. Bitcoin has dived to $216 per BTC, and the 10-year Treasury rate opened at 1.81% today.

The big news in the markets today comes from the Swiss National Bank which announced that they will abandon the Franc’s peg to the Euro. This move suggests the SNB is expecting Europe to ramp up its very own quantitative easing program in a big way. If that happens we can expect the U.S. dollar to strengthen, Treasury rates to continue their decline, and gold to rise in price. Such a move could also spark another bull cycle for gold miners in the equity markets. We shall see.

If you ask the media, they will tell you the economy is recovering quite nicely. They will tell you they are a little disappointed the recovery has taken this long, but a recovery it is nonetheless. And sure enough, the economic landscape does look better now than it did in 2009. If you live in a metropolitan area you may even be tempted to think the media is absolutely correct – happy days are here again! The stock market has boomed, mortgage rates are on the floor, and the banks are lending once again… what more could anyone ask for?

Regretfully, I must point out that whatever recovery has taken place is due exclusively to a credit expansion of historic measures. Take a look at this chart from the Fed’s Board of Governors.

The Federal Reserve’s balance sheet expanded from $890 billion ($890,000,000,000) to $4.5 trillion ($4,500,000,000,000) in just six years. This balance sheet expansion represents the acquisition of assets by the Federal Reserve – U.S. Treasury Bonds and mortgage-backed securities specifically. What this means is the Fed purchased bonds from the federal government to finance government deficits and the Fed purchased mortgage-backed securities from Wall Street to bail out the banks.

The Fed saved the day!

But we must ask – where did the Fed get the dollars to save the financial system? Well if you are familiar with our work on fiat money then you know the Fed created those dollars out of thin air. That’s 3.61 trillion ($3,610,000,000,000) extra dollars floating around in the financial system conjured into existence. Is it any wonder interest rates hit the floor and stocks boomed?

Go back and ask the media and they will tell you this is normal. The Fed did what it was supposed to do, they will say, it exists to manage the financial system. The media has had six and half years to feel confident in this assessment. But the Fed itself shows us what the problem is – the recovery is unsustainable!

Let’s go back and look at the chart. The Fed has classified the period from the end of 2007 to the middle of 2009 as a recession. The Fed shows how it printed $1.41 trillion during that time period and brought an end to the recession. But then the Fed kept on printing – in even greater quantities! If the recession ended in 2009, why did the Fed need to create another $2.2 trillion over the next five years?

The answer is clear as day and the Fed shows us why – the recovery is solely dependent upon exponential credit expansion. It’s game over as soon as the credit stops expanding.

The fact is no structural reforms have taken place within the financial system since the crash of 2008. All of the underlying problems are still present; they have simply been papered over by credit creation of historic proportions. As much as the media would have you believe otherwise, you just can’t cure a debt problem with more debt.

”Sooner or later everyone sits down to a banquet of consequences.” said Robert Louis Stevenson.

For those living outside of the major U.S. metropolitan areas, that banquet of consequences is here. Middle America has been hollowed out and small town U.S.A. has been destroyed by the fiat monetary system that has been employed since 1971. Income inequality has risen rapidly, not because of greedy capitalists, but because politically-connected institutions have been the recipients of enormous quantities of money and credit created from nothing. What is occurring is a wealth transfer of epic proportions.

It is the middle class that bears the brunt of this massive wealth transfer. As we mentioned in our first journal entry of 2015, the Cantillon Effect is in full swing. The individuals and businesses farthest away from the printing press have their wealth systematically transferred away from them to the institutions with their cup under the money spigot. Don’t believe me? Take a trip to K-Street and observe what goes on there.

Of course there’s nothing new under the sun. This dynamic has played out numerous times in various places throughout modern history. It always leads to the destruction of the middle class and then the destruction of the monetary system itself.

Fortunately, individuals can insulate themselves from some of the financial destruction if they understand what is happening. It is understanding that is the most difficult part.

Until the morrow,

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Joe Withrow
Wayward Philosopher

For more of Joe’s thoughts on the “Great Reset” and the fiat monetary system please read “The Individual is Rising” which is available at http://www.theindividualisrising.com/. The book is also available on Amazon in both paperback and Kindle editions.

Crafting a World-Class Education

submitted by jwithrow.education

Journal of a Wayward Philosopher
Crafting a World-Class Education

January 9, 2015
Hot Springs, VA

The S&P opened at $2,063 today. Gold is up to $1,214 per ounce. Oil is still just under $49 per barrel. Bitcoin is flat at 287 per BTC, and the 10-year Treasury rate opened at 2.00% once again today.

Keep an eye on the oil patch – that’s where the interesting action will be as we move into 2015. Losses will start to crop up if the price of oil remains flat for any extended period of time. Most of the U.S. shale boom has been financed by debt, not equity. We can expect some of these losses to show up in the bond market as repayment becomes difficult at current prices.

But it won’t be quite that simple. Financing oil exploration also involves swap contracts and derivatives which are then packaged, moved, and sold. This means that some losses may not be borne by the oil companies but rather move over to the bank. But the banks are just middlemen so many of the swap contracts very well may have been sold to institutional investors such as exchange-traded funds. No one knows exactly where the risks are so discovering where the losses pop up if oil remains flat will be much like playing whack-a-mole.

Yesterday we discussed why the public school system fails and we decided the best thing for a concerned parent to do is opt out.

But then what? Most of us have gone through the public school system so we are accustomed to the rigid top-down model of education.

Do we look to private schools? Some of them probably offer a service that is superior to the public school system but they are still based on the authoritarian “gymnasium” model and they probably use the same politically-correct textbooks. And they are expensive! As mentioned yesterday, the Sudbury Valley Schools are an exception as they do not employ the “gymnasium” model. If you live close to one of these schools then that may be a great option.

For the rest of us, we are on the frontier – it’s up to us to craft a world-class homeschool program. To do so we must first understand what education is. The word educate stems from the Latin word ‘educo’ which means “to bring up; to draw out”. You see, education is not about teaching; it is about learning. There is only learning. We’ve had it backwards for quite some time now.

An individual’s education actually begins the moment they are born; and maybe even the moment they are conceived. At birth, infants are completely helpless. Within twelve months’ time they have learned to follow objects with their eyes, move their appendages, hold their head up, coo and chuckle, roll from side to side, grasp objects in their hands, laugh, sit up, play with multiple objects, crawl, stand, and maybe even say a few words.

Within twenty four months’ time that same infant has learned to walk and play, climb stairs, color with crayons, use gestures, and use several words together intelligibly.

Within sixty months’ time the infant has learned how to move freely throughout the house, use sentences with nouns, verbs, and modifiers, recognize colors, recognize his or her own name, age, and gender, play with other children, communicate with adults, write his or her name, and to feed him or herself.

That is an amazing amount of development within a short period time! And guess what? There is no system in place mandating or forcing the infant to absorb any of this. The infant learns all of these essential items on his or her own with the guidance of parents and trusted adults.

In crafting a homeschool program it is important to allow this natural education to continue uninhibited. The curriculum chosen should supplement this natural education; it should not take the place of it.

The development of technology has, for the first time in history, made access to quality supplemental curriculum free to everyone with a computer and an internet connection. One can go online and read essays or view lectures on any subject imaginable. There are millions of articles and countless books available to read online at no cost to you. The Ludwig von Mises Institute’s web site offers the entire manuscript of many great books in the fields of Austrian Economics and the philosophy of Liberty absolutely free. The Ron Paul Curriculum offers K-12 curriculum completely online including a platform for students to interact with each other.

This type of technology is unprecedented in human history! Technology is not only liberating education from the confines of centralized authority, but it is doing so at a greatly reduced cost. It is completely possible for enterprising parents to supplement their child’s natural education with a world-class curriculum for pennies compared to what the public school system costs.

If you venture down this path be sure to familiarize yourself with the Homeschool Legal Defense Association as well as your state’s laws regarding homeschooling. And always keep the big picture in mind.

Education is not about indoctrinating children to think the same things we think. It’s not about taking up all of a child’s free time to keep him out of trouble. It’s not about “beating” other countries on standardized tests. It’s not about setting a child up to get into the best college or to secure a high-powered desk job.

Education is individual in nature. Children, free to discover and pursue their own passions, will learn so much more on their own than they ever could in a classroom. And they will grow into self-governing and self-driven adults capable of thriving in an ever-changing world.

More to come,

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Joe Withrow
Wayward Philosopher

For more of Joe’s thoughts on homeschooling and educational alternatives please read “The Individual is Rising” which is available at http://www.theindividualisrising.com/. The book is also available on Amazon in both paperback and Kindle editions.

Why the Public School System Fails

submitted by jwithrow.public school

Journal of a Wayward Philosopher
Why the Public School System Fails

January 8, 2015
Hot Springs, VA

The S&P opened at $2,036 today. Gold is checking in at $1,212 per ounce. Oil opened just under $49 per barrel. Bitcoin is trading hands at 286 per BTC, and the 10-year Treasury rate opened at 2.00% today.

The markets have kicked off 2015 with some healthy volatility! The S&P has dipped as low as $1,985 only to bounce back up. Oil has drifted as low as $47, bringing energy stocks down with it. The 10-year rate has dipped below 2% and threatened to drift lower. Bitcoin has fallen below $300 for the first time since 2013 and gold has climbed as high as $1,221.

Last month we contemplated raising children in the modern world and we decided compulsory education was not, in our humble opinion, in the student’s best interest. We reckoned that for any real learning to occur the student would have to be free to engage a topic of their own choice and then have the space to inspect, poke, jab, nudge, kick, and maybe even dance with that topic on their own timeline. Of course this method is the exact opposite of what is employed by the compulsory public school system that says the student must learn this topic in this way on this timeline with this grading scale and he better not interact with his neighbor while doing so.

As always, it is a minority position we take on the important matters of child-rearing and education. Perhaps this is why we had such an affinity for “Don Quixote” as a youngster. While the public school system is accepted as “normal” today, it is important to understand its origin.

The current public school system model was founded in Germany in the 1800s. The Germans called their model the “gymnasium” system and it was organized in part by the German military. This system separated students by grade and limited their interaction with students of differing ages. The intent was to foster a robust bond between the boys for they would be expected to train and fight together in the military as adults. Sure enough, this system created fiercely loyal soldiers.

Meanwhile, across the Atlantic in America, students were either educated at home or in small groups that were not separated by age. Individualized education in America was less geared towards memorizing facts and figures and more geared towards fundamental reading/writing/arithmetic, common sense, and self-confidence.

Age diversity helped older students develop responsibility and leadership skills by guiding the younger students along. Younger students got the benefit of both adult tutelage and guidance from the older kids. While seemingly a small point, having two distinct perspectives on the same topic goes a long way towards fostering critical thinking. Peter Gray, in Free to Learn, discussed this very dynamic as he observed students in Sudbury Valley School.

America began moving towards the German “gymnasium” model after the Civil War with the political class using force to move the shift along. Massachusetts passed the first compulsory school attendance law in 1852 and all states had compulsory school attendance laws on the books by 1918. Reading the work of John Dewey, one of the leading educators in 20th century America, provides troubling insight into why the shift was facilitated.

“The mere absorbing of facts and truths is so exclusively individual an affair that it tends very naturally to pass into selfishness. There is no obvious social motive for the acquirement of mere learning, there is no clear social gain in success thereat.”

The political objective was the centralization and control of education in order to reduce the American spirit of individualism and make students more malleable and group-oriented. John Taylor Gatto expanded upon the political shift of American education in his books Dumbing Us Down: The Hidden Curriculum of Compulsory Schooling and The Underground History of American Education: A School Teacher’s Intimate Investigation Into the Problem of Modern Schooling.

History and political motives aside, Gatto also outlined and then expanded upon several points that demonstrate how the public school system is “dumbing us down”. They are as follows:

1. It confuses the students. It presents an incoherent ensemble of information that the child needs to memorize to stay in school. Apart from the tests and trials that programming is similar to the television, it fills almost all the “free” time of children. One sees and hears something, only to forget it again.
2. It teaches them to accept their class affiliation.
3. It makes them indifferent.
4. It makes them emotionally dependent.
5. It makes them intellectually dependent.
6. It teaches them a kind of self-confidence that requires constant confirmation by experts (provisional self-esteem).
7. It makes it clear to them that they cannot hide, because they are always supervised.

Gatto’s points refer to the public school system itself; not to the individuals working within the system. Most school employees at the local level are well-intentioned and work hard to improve the quality of their school. But they are forced to operate within the confines of the gymnasium system and they are forced to use government-approved politically-correct textbooks. More money will not change this dynamic, it will only further empower the Department of Education and impoverish the public.

So what is a concerned parent to do? Opt out!

Until the morrow,

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Joe Withrow
Wayward Philosopher

For more of Joe’s thoughts on homeschooling and educational alternatives please read “The Individual is Rising” which is available at http://www.theindividualisrising.com/. The book is also available on Amazon in both paperback and Kindle editions.

Of Gold, Energy Stocks, and Bitcoin – Opportunities for the New Year

submitted by jwithrow.bitcoin

Journal of a Wayward Philosopher
Of Gold, Energy Stocks, and Bitcoin – Opportunities for the New Year

January 2, 2015
Hot Springs, VA

Welcome to the first business day of 2015! The S&P opened at $2,055 today. Gold is down to $1,171 per ounce. Oil is down to $52 per barrel. Bitcoin remains rather flat at $315 per BTC, and the 10-year Treasury rate opened at 2.20% today.

We spent our time yesterday going over how fiat money enslaves society and we agreed that this was critical to understand if we are going to have a chance at being financially independent. Wife Rachel said it was a rather dreary journal entry so today we will endeavor to be more positive.

Let’s take a look at some of the financial opportunities we have for 2015.

First, the precious metals are as cheap in dollar terms as they have been in several years. Gold and silver could still drift lower in 2015 but the fundamental case for owning them is as strong as ever. This is a great time to pick up some ounces if you are a little short on your precious metals asset allocation.

Over in the equity markets, energy stocks of all sorts have taken a beating with plummeting oil prices. Fund managers accentuated the crash in energy stocks as they sold at a loss for tax purposes and to show little exposure to the sector at year-end. This is a great opportunity for a contrarian to add some energy exposure to his or her portfolio. It is advisable to be very diligent in this endeavor, however, as marginable producers will be squeezed if oil prices remain this low for an extended period of time. Be sure to go with the companies that can survive at current prices, keep position sizes reasonable, and stick to your stop-losses.

Several notable analysts expect the Fed to launch QE4 the moment the S&P starts to tumble which would send stock prices soaring even further. Some of these analysts think this will occur in 2015. The Day of Reckoning will eventually come for the current fiat monetary system as the Great Reset continues to unfold, but that day is not here yet. 2015 may provide an opportunity to capture gains in the market and convert those gains into hard assets.

Even more speculative is Bitcoin which plummeted from a 2014 high of $939 in January all the way down to its current price of $315 over the course of the year. Maybe $315 is a good entry point, I don’t know. Of course Bitcoin opened 2013 at $13 so maybe it is still reverting back to the mean.

Personally, I am not sure what to make of Bitcoin. Free market advocates are die-hard in their belief that Bitcoin has the potential to rid the world of fiat money by eliminating the need for any middlemen and thus eliminating transactional friction. Free market detractors are pretty adamant in their belief that Bitcoin is a pump and dump scheme that will not be relevant for long because it does not meet all of the standard qualifications for hard money.

I am in the middle somewhere – Bitcoin’s functionality fascinates me but I don’t think it eliminates the need for precious metals within the monetary system. I think a small dollar-cost-average approach may be a reasonable method of testing the Bitcoin waters.

Of course there is no room for speculation until you have built a sensible level of resiliency and have a sturdy asset allocation model in place. Having debt cleared out, cash on hand, precious metals for insurance, a back-up energy source, and some food and wine stored in the cellar will insulate you from any storm that comes your way, regardless of how your speculation works out. Throw in good family and friends and you will be in great shape no matter what happens in 2015 and beyond.

What else could you ask for?

More to come,

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Joe Withrow
Wayward Philosopher

For more of Joe’s thoughts on the “Great Reset” and the fiat monetary system please read “The Individual is Rising” which is available at http://www.theindividualisrising.com/. The book is also available on Amazon in both paperback and Kindle editions.

How Fiat Money Enslaves Society

submitted by jwithrow.fiat currencies

Journal of a Wayward Philosopher
How Fiat Money Enslaves Society

January 1, 2015
Hot Springs, VA

Happy New Year!

The markets stayed in bed today nursing their hangovers so we have no updates for you. Check back with us tomorrow for market updates.

We have recently been discussing the difference between fiat money and real money so I thought it would be prudent to kick off 2015 by discussing how fiat money enslaves society.

I know, nobody is walking around in shackles and chains – the slavery is much more subtle than that. But I firmly believe this is the single most important issue of our time. You cannot understand finance and economics unless you understand how fiat money operates. And you cannot become financially independent unless you understand finance and economics.

So here’s how it works:

Government creates a currency and decrees it money. Being the narcissist institution that it is, Government usually prints faces of past government officials on the physical currency. Next Government creates a central bank and declares that the central bank will issue and manage the currency. Government then implements an income tax to supplement the other taxes in existence and decrees that all taxes must be paid with the government’s currency. Government then passes legal tender laws requiring citizens to accept its currency as payment for all private debts as well. The penalty for not paying taxes or for not accepting government currency as payment is jail.

In this way the government/central bank alliance has effectively created a situation where everyone under the government’s claimed jurisdiction is forced to use its fiat money. There is no way to completely opt out; at minimum everyone has to acquire enough fiat money to pay taxes or else they will be thrown in jail. And we’re not talking about one or two little taxes; we are talking about taxes on all income earned, taxes on all investment gains earned, taxes on all real estate owned, taxes on all vehicles owned, taxes on all gas purchased for those vehicles, taxes on all food and goods purchased, and taxes on any inheritance received. Virtually everything you do is taxed!

Add up all of the taxes across all levels of government and it is very likely you are paying out 50% of what you earn in taxes, especially if you live in a major metropolitan city. That means you are working six months of the year just to pay the government.

But wait, it gets even better!

The central bank is free to issue as much new fiat money as it pleases and the record clearly shows that all central banks very much enjoy creating lots of new currency. The law of supply and demand tells us that each unit of currency will be worth less as new currency enters the economy – this is intuitive. What’s less intuitive is something called the Cantillon Effect.

Classical economist Richard Cantillon noticed something very important about inflation back around 1730 in France. Cantillon observed that the original recipients of newly created money enjoyed much higher standards of living at the expense of later recipients. The reason for this, Cantillon noted in his economic treatise Essai, is because of the disproportionate rise in prices as a result of inflation; prices do not rise until after the first recipients of the new money spend it into the general economy.

What this means is the very act of creating new money from nothing effectively steals purchasing power from everyone except those who first receive the new money!

So who first receives the new money? Why, governments and their favored institutions of course! This is how governments and their favored institutions grew to be so fantastically large in the 1900’s – they steadily picked the public’s pocket for an entire century!

To tie it all together: Government creates currency from nothing and forces you to use it by levying all manner of taxes on you that can only be paid with the government’s fiat money. Then Government’s buddy, the central bank, inflates the money supply which depreciates the value of the currency you are forced to use and transfers that lost purchasing power from you to Government. This makes it very difficult for you to save money because the money constantly loses value over time. The result is you have to work harder and harder just to pay off Government lest it throw you in jail. And that is how fiat money enslaves society.

This process is why you could drive down Main Street in Small Town USA back in 1950 and see bustling storefronts and a vibrant economy. Drive down that same Main Street today and you will probably see empty buildings and boarded up windows. You just can’t earn an honest living as a small proprietor or shopkeep anymore because you are Cantillon’s last recipient of new money in those businesses. Decades of unrestricted inflation has destroyed the value of the money to the point where small proprietors cannot earn enough of it to keep up with rising prices. Fiat money has hollowed out Middle America to the point where there’s not much of it left. This is exactly what has happened throughout history where fiat money has been implemented – the middle class is destroyed.

Governments have experimented with fiat money all through history and the most recent monetary model is the most deceptive to date. Fortunately, a fiat monetary system always sows the seeds of its own destruction and cannot last forever. In the meantime you can employ some basic financial strategies to protect yourself once you understand how the fiat money system works. We’ll look at some of those strategies in a later entry.

Until the morrow,

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Joe Withrow
Wayward Philosopher

For more of Joe’s thoughts on the “Great Reset” and the fiat monetary system please read “The Individual is Rising” which is available at http://www.theindividualisrising.com/. The book is also available on Amazon in both paperback and Kindle editions.