As the Dow Jones Industrial Average broke 11,000, the usual concerns were expressed again - - what is causing this economic boom and how long will it last?

I addressed these concerns before, just after the Dow Jones hit 10,000. I explained where the economic expansion came from on January 16, ("Why We Have An Unprecedented Economic Boom").

What is causing this boom is an old and obvious economic phenomenon: capital expansion. The entire third world, billions of people, is being built up for the first time. This development could have taken place a long time ago, but billions of people have continued to live at a level we would not allow a dog to be raised in because socialist planners wanted to plan for them.

Economic development is not a complicated process. You make something for me, and I give you something for it. To make these things, we need capital. We need money for training, for machinery, for communications equipment and all the rest.

At the end of World War II, Europe and Japan had been bombed out. All their capital was destroyed. They had to rebuild completely. The result was a huge long-term boom, caused by the vast capital flow into Europe and all the tens of millions of jobs that created.

The third world is many times as large as Europe was in 1945. Until very recently, most of the third world was locked into socialist stagnation. Now they are moving toward capitalism. In the past few years, the per capita income of many of these countries has doubled or tripled. For hundreds of millions of people, this requires a great deal of capital.

Five years of simple investment has done more for the people of each of these countries than forty years of planning. And the side benefit has been a continuing boom for us.

You see the results of this phenomenon all around you. Now that socialism is gone, capital is flowing into more and more of the third world. We are producing trillions of dollars worth of capital for billions of people.

The capital expansion of three-quarters of the world will take quite a while. This should be a period of prosperity for decades to come. A person with capital can be very rich in the long run with conservative, growth-oriented investments. My money is in conservative mutual funds, aimed at low dividends and growth.

So the first result of this analysis is that the long-term outlook is excellent. For those with money to invest, this advice: When the long term outlook is like this, one needs to go with the general upward trend. Don't get tricky.

But if this rosy scenario is true, why is it that there have been economic disasters going on all over the developed world? Europe has had massive unemployment for years, and Japan has had a major economic downturn, while Asia in general has had an economic catastrophe.

Europe's economic problems are fairly straightforward. As usual with problems today, they come from policies which are derived from trendy opinion. Trendy opinion says two things: 1) employers must provide lots of benefits for everybody, and 2), all white majority countries must have massive third world immigration. Third world immigration drives down the price of labor. But government policy keeps the price of labor high by requiring a lot of extra benefits for workers. If the price of labor is kept too high for the market, you get lots of unemployment.

So Europe can cut benefits or it can cut immigration.

Europeans want lots of benefits, but they want to keep up with trendy opinion by allowing lots of third world immigration. In the real world, when you do something stupid, you pay for it.

So why, despite the general prosperity, has an economic catastrophe occurred in Asia?

In Asia, the social system which runs the economy is still primitive. Lots of loans and other serious business were handled entirely on the basis of who knows who. Family connections and buddy systems controlled pretty well everything. People concentrated on being liked by the right people.

Business was done on the basis of the buddy system and on the basis of kinship. At the top where the big money was, little attention was paid to real business ability and the ability to pay back loans. The general economic climate was so good that this system went on for quite a while, but eventually it caught up with them.

It's really not much more complex than that.

I wrote about this sort of situation in my article of November 7, 1998, "The Bead Buyers." All this business of loaning money only to your buddies may be referred to as Oriental Wisdom. But it's really silly and primitive, and, as I said before, when you do something stupid, you pay for it.

You hear a lot of wisdom about how to deal in Asia and Latin America. You are told that they don't do business on the basis of your record for making money. We are told, correctly, that they are less interested in serious business questions than they are in getting to know you personally.
   
This advice is correct. It also tells you something about why those economies are in such trouble. Until grown men get beyond who loves who and start paying attention to business, they are in no position to run a serious and competitive economy.

Oh, by the way, I do remember that the title of this piece was "Kinky Sex." I used to be a college professor, so I know that you have to use a dirty trick like that to get someone to read an article about economics.

As long as Confederate Jews' first loyalty is to the Confederacy, I can understand their wanting to maintain a place of their own to go to. I desperately wish Southerners and whites had a place of their own to go to. But the official doctrine of liberals, and therefore of respectable conservatives, is that only Jews have a right to protect their group's existence.

My position is that of most decent people. I am very much against dual loyalties, but I can have some sympathy with Jews who want to maintain a separate homeland.

What I am absolutely against is self-styled "CHRISTIANS" who claim the BIBLE demands they use American lives and treasure to maintain Israel. These people imply that Christ requires that their main political loyalty be to Israel!

When Israel was negotiating with the Palestinians recently, many American "Christians" were more fanatically anti-Palestinian than Netanyahu's most extreme advisors. As one preacher said on cable, "You've heard people say, 'Don't mess with Texas?' Well, I say, 'Don't mess with Israel.'"

This blasphemous excuse for a Christian wants to fight against the Palestinians down to the last American. He is, in short, a traitor. What is worse, he excuses his treason in the name of God. Blasphemy is the nastiest form of treason.

The God-owners' loyalty to Israel is based on what has got to be the silliest set of fables anyone ever fell for. They simply have not read their history or their Bible. It would be funny if it were not both treason and blasphemy.

Just stating this nonsense shows how silly it is. The story is that in the first century all the Jews in the world lived in Israel, and every one of those Jews was a direct descendant of the Children of Israel in the Bible. Then the Romans destroyed the Temple and all the Jews left. A bunch of complete aliens, ancestors of today's Palestinians, came and took the place of the Children of Israel.

Today, the "Christian" conservatives tell us, every Jew on earth is a direct descendant of the Biblical Israelites. Now (sob!), the Children of Israel are coming home.

None of this is true. In the time Jesus was on earth, the overwhelming majority of the members of the Jewish religion were not in Israel. Not only that, but most Jews at the time were Hellenized. The Bible of most Jews then was in Greek, not Hebrew.

Some Jews had moved out of Israel, but Judaism was a fanatically missionary faith then. It is likely that almost all of the Jews outside Israel were the result of hundreds of years of conversions.

When the Apostles dealt with the Jews, many if not most of the people they dealt with were specifically converts. Many, if not most, of those who were already Jews were converts. Most of the people who had converted THEM were converts. This had gone on for several hundred years. Very, very few adherents of the Jewish religion outside Israel were descended from Israelites.

Since then, most of the new Jews have been converts. Just a few hundred years ago the whole Khazar people, hundreds of thousands, if not millions of them, converted to Judaism. Many, if not most, of today's American Jews are descendants of the Khazars.

So where did the myth that all Jews are Israelites come from? It came from historical necessity. What happened was this: when Christianity took over, any Jew who tried to convert anybody to Judaism would have been burned at the stake.

Later, after Islam took over Palestine from the Christians, it was also illegal for people to try to convert others to Judaism.

To survive, Judaism had to become a religion that did NOT convert people. This was quite a switch. In the time of Jesus, Judaism was a religion fanatically devoted to going out and getting converts.

But to survive under the Christians and Moslems, Judaism began a new myth. To keep the Christians and Moslems from banning Judaism, the Jews said they were all direct descendants of the Children of Israel. They said they had never converted people, and you had always had to be BORN a Jew. They only ALLOWED conversions. Now that they were not allowed to actively convert people, they said they had NEVER tried to convert people. It was the only way Judaism could survive.

There is another problem that is fatal to the whole insane theory the God-owners push about Israel. If it is true that the entire population of Israel marched out in the first century, it would have been the greatest population movement inside the Roman Empire in the entire history of that Empire. We have plenty of Roman history. If this titanic population movement had occurred, we would know about it in detail.

But in the real world, there is no record of it.

It didn't happen.

So what happened to the ACTUAL Children of Israel? According to REAL history, they stayed in Palestine. They are no longer Jews. Most of the population there, as in the rest of the Middle East, became Christian when the Christians took over in the fourth century. Later, when the Moslems took over, most of them became Moslem. In other words, the blood of the Children of Israel is in the Palestinians of today.

The "Christians" are driving the Children of Israel out of Israel in the name of the Bible!

Lately, one person commenting on the Serbian situation on television pointed out that Israel had conducted the most thorough act of ethnic cleansing since World War II. After all, the original Palestinian population made up almost 100% of the population before Zionism started in the nineteenth century. Now, the original Palestinian population is down to 18% of Israel. That is one hell of a job of ethnic cleansing. What really astonished me was that not one of the other people on the show objected to calling it "ethnic cleansing!" According to World Opinion and "Christian" conservatives, the Zionists had a right to drive the Palestinians out of their homeland.

The God-owners say the Jews are "coming home." According to these so-called "Christian" conservatives, any person a bunch of foreign rabbis have decided to call a Jew has a right to come in and drive out the Palestinians. The story is that the Palestinians, who have been in Palestine for thousands of years, don't belong there.

In the name of God, so-called "Christian" conservatives are helping drive the actual descendants of the Children of Israel out of Palestine!

That is how blasphemy always works.

When we get our independence and some clown who calls himself a "Christian" declares that his first loyalty is to Israel, let's give him a ticket to his real homeland and take away his Confederate passport. Israel won't take him, of course. Who needs other peoples' traitors?