Friday, November 30, 2012

Tax to Death, then Tax Again?

Balancing a ledger, "budgeting", is as old as civilized society.

A citizenry's decision makers are authorized to maintain status quo, but are constrained by an on going counter party risk of legitimacy from external forces.

July, 2011 witnessed a recent example.   

America's steep sell off  arose by way of America's Constitutionally expressed separation of powers.  The law makers and its main enforcer (President) were conflicted, agreeing only to challenge the each other on recent electorate expectations and forward going goal making.

Ultimately, no principled agreement could be reached.  "Kicking the can down the road," deferring any definite policy practice in spending and taxation was the only settlement to be had.

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The "Fiscal Cliff" has returned to humble our nation's solvency.

From a policy perspective, I hope that budget negotiation fails.  The major reason is that America's most reliable patriots, but for our veterans, the farmer, are at risk.

What will the "hand suffer?"  This historical and intellectual allusion offered by the leaders of western civilization still provokes.  Essentially, does an elected body allow its "producers" to retain their property intergenerationally?

2012 is all but passed, with 2013 firmly in view.

I believe that while the electorate may have only good intentions at choice, short sightedness will eventually be discovered as the resulting outcome, not solution. 

Counter parties seek to lawfully, by taxation, divest America's producing families with tax bills.  If a farmer, for example, seeks to pass along their operation to children, it must not exceed $600,000 dollars at time of farmer's death; otherwise, every dollar in excess of that amount will be taxed at roughly 50 percent.

This results in outrageous consequences as heirs, or any beneficiary, will likely be forced to write checks the government purposefully expects they CANNOT do.

Thus, a "selling of family farm" is the likely outcome.

To the more economically and politically astute, if you have conflicted ties that know no national boundaries, this is a quick method to raise funds at the expense of those politically distant, in favor of personal gains, at the cost of our nation's heritage, and reliable future.

The opportunity to behold the American experience can be grande, but uprooting its very fabric by confiscation, for redistribution, presents a lethal predicament for the fate of the body it is sworn, by loyalty oath, to uphold.

Given the rise in prices in the cost of living, disregarding the lack "of inflation" that economists parrot without waver, most know by native intelligence that day to day expenses require an ever growing allowance for the same, or less, purchasing power.  

Taking land and producing businesses from Americans is wrongful.  This tax deal should be rejected on principle.

If not, the precedent and its effects will be set; and when our lawmakers' lack compunction to defend this part of our country, then we do live in a lawless nation, and it no longer is a nation of the free as it has been compromised and treasonously inveigled.

America's sovereignty will have been toppled, and the time to complete ruin (i.e. social unrest and waxing violence, only begin to portend further uncertain grounds.


Monday, July 30, 2012

Good Old Gold



Game theory is a branch of economics that assesses outcomes by factoring probabilities of reward and risk.

Do these “factors” sound familiar?

1) Federal Reserve.

2) CFTC (Commodities and Futures Trading Comission).

3) NYSE-Next-LIFFE (the inter-national [sic] stock market).

The undergirding issue is the recent high valuation of precious metals.  Why have they increased in value so substantially?

2001-2011: Before the turn of the millennium, US equities consistently trended higher.  This past decade, however, equities have traded sideways.

1960's-1980's: this was the last period the market traded range bound.

Market Crashes: 1929, 1937, 1987 and 2007 were years that witnessed the largest sell offs in equities.

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I refresh this post with these generally known facts because they lend context to the most recent years.  Arguably, the height of equities was in the mid part of the last decade.  This preceded the most recent 2007-2008 "crash."

The most material economic mover in America was "housing."  A plethora of new macro economic reports gained reliance, like the Yale Professor's Case-Schiller index, which, in essence, aggregates home purchase data.

The ripple effect, creating a healthy economy, is base around housing booms as services and products (appliances, fixtures, among others) become more routine as new owners and lessees "upgrade" their life styles.

This boom, then bust, also traipsed on the heels of, effectively, two wars.  For younger readers, America long ago abandoned its Constitutional principle of requiring Congress to declare war (see the Joint War Resolution).

Congress, unlawfully (to my view), then went on to permit Presidents’ authority to conduct six-month “mini-wars” when they… wait… yes… NO!.. feel like it.

The Cost of War:  1929 saw the beginning of War World 1.  1937 preceded America's involvement with War World 2.  

In both of these cases, America had to finance its way.  In the previous 19th century, America had been mostly "debt" free before the Civil War.  This was the first war that caused a substantial debt in America.  It was eventually paid in full.

Logic, then, would ask whether America ever paid off these first two wars.  Since the end of World War 2, America has seen "police actions" (read "war") in Korea, Vietnam, Cambodia, Laos, Afghanistan, Iraq-Kuwait, Libya (though not generally admitted) and, to date, interference in Syria.

The Dragon Claim: can you imagine suing the United Nations, a European President and US Government for property that your great-great-Grandparents loaned out?

Well.  This is what a few families in Japan and China have done.  What do they want?  They demand redress of 1 trillion US dollars because of a wrongful taking of a financial instrument that evidences a large collateral value based on underlying gold bullion.  Start at page 17 here http://img24.imageshack.us/img24/8408/1934reclamationdragonfa.pdf

If we accept this claim as true, then we assume that America's previous 19th century assistance with Japan in defending/evading Chinese conflict created good will for an initial loan (recall, America carried no debt at this time).

America made use of this loan so as to create a militia large enough to do successful battle in the War Worlds.

These loans, instead of being repaid, were further collateralized into bond notes.  

Arguably, the US paper currency system of a FRN ("Federal Reserve Note") bulk manufacture arose from this financed arrangement for these wars.  Previous to Democratic President F. Rosevelt's confiscation of gold and silver, most Americans would pay in gold and silver ounces (though barter was the usual method of exchange).  A gold ounce indicated $20 US dollars, while silver was a valued at $ 1.  

According to this claim, Kennedy bonds were the next "phase" in America's debtor status so that it would continue with "police actions" in the 60's.  This time, in south Asia.

The Present State of War:  what would you do if you might never pay off a debt?  What if war is the only answer?  

Does war pay?

The (alleged) theft of the Dragon Family financial instruments indicates it should.

Mortgage Fraud: the US government created securitization of mortgage loans in the 1970's.  In it, brokers oversee the sale of real estate with bond yields as the investor side of the transaction.  

In 2008, the precipice of the newly unemployed did battle with their mortgage payments, many opted for strategic default (leave the lender the keys to the house).  A newly elected, political environment encouraged the judicial system (especially federal and state Attorney Generals) to label these real estate sales fraudulent (i.e., meaning the banks could not regain possession, let alone title). 

Someone had to pay, but who was it?  



This chart shows the severity of the losses that banks hemmoraged.  2007-2009 saw a dramatic loss of valuation in American banks.  

This particular fund (including all major US banks) lost 660%.

Arguably, the most conflicted profiteers from the last decade's mortgage business either moved their accounts, or homes, or both.  

Here's one excerpt (http://goo.gl/wYB9O), among many, that details how the Department of Justice investigated transfer of mortgage proceeds into Switzerland: 

SWISS BANK INDICTED IN THE U.S. FOR FACILITATING TAX FRAUD
The Department of Justice announced that on February 2, 2012, Wegelin & Co., a Swiss bank, was indicted for conspiring with U.S. taxpayers and others to conceal from the IRS more than $1.2 billion in secret accounts.  The Department of Justice alleges that the conspiracies occurred from 2002 through 2011.

Among other things, the Department of Justice alleges that in 2008 and 2009, after UBS ceased servicing undeclared accounts for U.S. taxpayers, Wegelin, sought to acquire those U.S. taxpayers as clients.  In order to do so, they opened and serviced accounts for U.S. taxpayers.
There is, conspicuously, a significant correlation between the time period that these "tax evasion conspiracies" occurred and the banking sector, followed by every other sector lossed material valuation.

UBS is the United Bank of Switzerland.  The short story is that economic sanctions were threatened against Switzerland, led largely by the US, unless they disclosed account information.

Eventually, Switzerland conceded.  The "truth" can be viewed in a chart. 

Look at the currency rates between the US dollar and Swiss Franc "CHF".




Spanning from 2000 to 2012, this chart shows that it would have taken almost 2 Francs to get 1 Dollar in 2000-2002.

Notice when the "conspiracy" was said to begin from the above excerpt: 2002.

The 2007-2008 crash is reflected in by the change in the purchase power of the Dollar versus the Franc.

Ultimately, if 2001 saw the pinnacle of America's Dollar purchasing power; 2011 indicates the dreary lows, it means Americans must not pay a dollar, quarter and dime for every one Franc.

---

Returning to the Dragon Family case, they alleged that the US and UN effectively stole possession of THEIR financial instrument.

Guess where the claim arose from?

Switzerland!

---CONCLUSION: PUTTING THE PUZZLE PIECES TOGETHER---

2007: the US market crashes.

2008: mortgage "fraud" suits commence.

2009: Federal Reserve beings "Quantitative Easing".  Stock market "rebounds."

2010: gold and silver go "parabolic", gold increased in value from $1,000 to nearly $2,000 (2011) / $ 15-$50 for silver.

2011: 

·        Summer: Greek and Italian Presidents are forced into retirement (fired?).
o   Connections:  was (French) IMF President “DSK” forced under criminal scrutiny (before a critical Presidential election? – politics as usual???).
·        Fall: MF Global files for bankruptsy protection.  While account holders will likely see a mere nickel for every dollar former US Senator (NJ) Corzine oversaw.  (Now) Former CEO Corzine has bought a large, French castle during this “scandle.” 
o   NOTE: MF clients CANNOT use, access or withdraw their funds. 

    • Gold and Silver contracts were the main commodity account holders intended to take possession of.  
      • Was MF unable to deliver the precious metal contracts?
  • Winter: 
    • JP Morgan and Goldman Sacs experience silver contract shortage.
    • CFTC sells all "brick and morter" assets.  Enters into substantially lesser lease arrangement for operations.
  • Winter: 
    • JP Morgan and Goldman Sacs experience silver contract shortage.
    • CFTC sells all "brick and morter" assets.  Enters into substantially lesser lease arrangement for operations.

2012:

  • Spring: JP Morgan announces $ 9 billion loss.  
  • Summer: SFO Magazine and PFG CEO Wassendorf, Sr., is investigated for massive Securities violations - commingling/embezzlement and forgery.
Conclusion: I have attempted to point out the major factors in this game theory that strategically implements war, institutional regulation (or, rather, the conflicted dealing by supposed guardians), finance and hard versus paper assets debate in causal sequence.

The sole linchpin that holds this bridge, a global narrative, between the 19th through into the 21st centuries, is that precious metals maintain value.

As seen, nations and their currencies, banks and companies come and go.  

BUT NOT "GOOD OLD GOLD."




   



Tuesday, February 14, 2012

Zoning in on Arizona


Celebrating an American state’s birthday seems, a tad, “UnAmerican.”  Interstate rivalries have been the thing of old tribal, tributary trial that the US Constitution intended to thwart.



This next week, I’ll continue in my land forays, celebrating, and investing in Arizona’s 100th birthday.  Not unlike President Thomas Jefferson, author of our Constitution, the plans include participating in caveats (a topic, perhaps, for another day).

The sixth largest brother amongst large “western” states, this "Top Ten" of the largest United States occupies the “west coast.”  I won’t mention them in order, but found these sets of state admission to the Union particularly astonishing. 

Am I the only citizen to find surprise in the fact California was admitted before West Virginia (in 1850, vis. 1863)?  How about Oregon, taking Kansas, Nebraska and “the Dakotas” by as little as two years and as stretched as three decades! 
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Vexillology is the study of flags.  In the context of the Colonial flag, there were “13 colonies.”  Of the 50 that “came to be”, only seven prominently display a single star.  The majority of them domiciled in the “west coast.”  There are even less that acknowledge multiple stars in bulk, with the state displaying all of them, with their star, in proper, ordinal admission to the union. 



This give and take, of state emphasis (with a single star), versus a new state recognizing its place in the demure (numerously, but particularly counted stars, united), hearken onto an ancient sense of proximity and vicinity.  But, as we see, the notion of the United States is not so simple.

A number of states, not so modestly, maintain a "Coat of Arms", with no inherently geographic derivation.  In the latent sense, they're all so novel and American.  Only a few display an analogous "Coat" of American Indian origins.



Maryland boasts the only flag bearing an English Coat of Arms, that of the Calverts, who, as Loyalists, fought against American sovereignty.  Washington’s Coat of Arms would offer an alternative to the rule, except that the “District” of Columbia is not a “state.”

Interpreting flags becomes an altogether time consuming matter, rivaling attempts at deciphering Coat of Arms.  It can ware and teem a laborious project.  A cadence, for example, is the subtle distinction in a Coat of Arms, in a family, that distinguishes one family member, or branch, from another.  Specifically, the extra use of two  escallops, or “sea shells”, mark the difference between Princes William and Harry, of the House of Windsor (the English Crown). 
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Returning to restate the tour of the facts, I look forward to an exciting opportunity to partake in the bounties of our nation’s youngest, “contiguous” state.

Also, New Mexico, happy belated 100th Birth Day  (this January past).  

Saturday, November 19, 2011

"In Time", a film review



This post is about the 2011 film “In Time.” 

But first, here’s my take on the state of the movie business. 

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At the macro level, “Hollywood” has suffered for two reasons: a) intellectual property theft (led largely by the Chinese) and b) the “lowest common denominator” effect.

By destroying props, injuring at least one character and frenetic-paced montage sequences, modern productions intend to traumatize their audience into submission; ultimately seeking to "condition the unconscious" through symbolism (see Carl Jung)  Even patrons with low scoring intelligence quotients can follow along.  Hence, the denominator effect.  

It is via this post-“shock” acceptance, that the audience can be rehabilitated by our "developed" economy's inculcated, MPAA censorship-approved lessons.
 
“Green lit” productions from the “left” imbue their captives with evolving lessons about expected and permissible social mores, or at least fantasies as to what is crossing a line should be versus what bending it is is

Film theorists explain the history behind this, but the concise form is that film has always been used an economic and political “propagandized” connection.  All the world leaders since the industrial world occurred have so framed their constituencies in this fashion. 
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For those who haven't seen this film, wiki’s synopsis reads fair: http://en.wikipedia.org/wiki/In_Time_(film).

The key issue involves the notion of time consumption.  In this science fiction world, the material categories of raison d’etre are assumed: shelter, sustenance and basic safety.  Thus, there is “no need” for currency, as we know it to be in a capitalist world - as in one US dollar. 

Currency, economically, means denominated consideration.  Currency is not inherently an asset, it’s a governmentally regulated means of benefit and detriment, from which the body politic creates relations to one another via state rules.

Will Salas, the effeminately played protagonist played by Justin Timberlake, makes, ironically, time-denominating, or regulating, machines.  It is ironic because he has so little time left in his life, only about two days from the movie’s commencement.  Thus, he was given three years of life as he is age 28.
The movie accurately explains human’s biology, the body no longer “matures”, but begins to degrade, at about the age of 25.  The characters are reminded of this by a thirteen digit time display embedded in each person’s forearm.

The working assumption is that the world’s populace can hypothetically live into eternity because of a scientific, genetic discovery.   

Will’s plight is typical of most “little guy” characters, his origins derive from an industrialist city where his opportunities for financial discretion and advancement is unfortunately predestined. 

He works in a factory so that he can earn more time, which is exchanged for things like rent or coffee.  But the governmental authorities, called “time keepers”, as well as all merchants, exclusively deal with the “inner-city” patrons from behind barriers (such as one encounters in most banks).

So it is with barriers or numbered zones, by which this dystopic city of Dayton (shot largely in Beverly Hills, Los Angeles and Pasadena) both confines and constricts its time-deprived subject from more desirable locations like New Greenwich.

Without startle, Will, whose name has a noted Nietzschean connection, shall inevitably escape and travel outside the impoverish Zone 12 from which he derives. 

He achieves this by a gratuitous gift from an existential, Solomaic immortal-like male suit in a bar named Hamilton.  Immortal because Hamilton has nearly a 100 years of life on his displayed clock.  Wise, yet nihilistic, because Hamilton wastefully lacks any appreciation of his good fortune so many prize.  Will saves this well dressed and coifed gentleman from some local criminals who take substantial steps in attempt to thieve [sic], and thus kill, him.

In return, the suicide desiring Hamilton surreptitiously gifts Will his years upon their reaching a terminal shelter from the crime scene.

With all this newly found time, Will can purchase services and goods that lead to his journey into New Greenwich (shot at the Avenue of the Stars – Beverly Hills).  

Not unlike the US Dollar’s color, green, this class based setting is a highly sought after location (shot in Irvine and Beverly Hills). 

Will’s successful gambling places him in a better creditor status, but he is concurrently pursued by the investigating time keepers.

Will accepts a redux gambling opportunity from his previously defeated competitor, a majorly trademark named-branded time seller (representing a banker-type), named Phillipe.

But Will's seemingly pre-destined fate of economic cog is scoured after by the politce state agents - the Time Keepers. 

In the process of Will’s seeking time, he must now protect his attainment of it.  Contingencies of survival become more crucial, with time "on his side."  Genetically, he was not so entitled, but the carrot of possibility in economic progression and advancement is dangled, for him, and thus the audience, to be worthy bate.  
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The forgoing analysis of the base facts present the most consequential question.  It is, whether American’s, or citizen’s of developed and emerging economies, accept the material apparatus from which valuations are attached and class relations are constructed.

In the battle of ideas, In Time poses a plain dillemma to its English speaking audience, will you accept the time allocated to your young, “generation alphabet” life?

In a Hegelian fashion, a centralized state is contrasted with a free market, propertied one. 

On the one hand, the Marxist and Leninist articulated writings are relied on to juxtapose need from want.  On the other, wanting more time, alone, can be achieved by mere association with “propertied circle’s, who, paradoxically, create it (value, or time).
     
The very concept of nation-state identity, or Social Contract (as Rouseau wrote of), is questioned in the film when Will replies to the initial intake investigation by the Chief Time Keeper: “It’s not illegal to travel.” 

 One of the many Francophile founders, Alexander Hamilton, is thought of by the above said “immortal” who gifts Will the bountiful time to life.  Hamilton was also one of the founders of our Constitution and first Secretary of Treasury.

Once again, a post-industrialized, post-rust belt, post “manufacturing” America is called into question.  There are leading questions, with one unifying theme: will it last?

Can “the western” world of production and entitlements survive?

Is the year really 2011? 

Perhaps it is the year 5772 or 4709 as Hebrew or Chinese calendar’s might say.

The “seven” time categories (second, minute, hour, day, week, month and year) are denominated in 13 digit arrangements (following the Astrological, or Helenic, calendar, in contrast to the Augustan twelve hour and month cycles).    

The most seemingly trivial satire was the number of years Will, with the aid of his new love interest Silivia (played by the lovely Amanda Seyfried), eventually burglar (lawfully[?] by public necessity) from her father Phillipe (above mentioned banker).  It is a million years. 



Why a million?

Perhaps a reference to being a “millionaire,” it was confounding, I found it undeveloped.

Perhaps Phillipe’s statement: “We can always create more”, shines some light on the notion that the undergirding assumption of evolution, that science can study and propound further development of whatever valuable material is necessary to our interconnected world, is (hu)man made.

In this sense, social engineering has been reduced to a science, a premise without objection, from which no Supreme Being is recalled, let alone mentioned.

Will is thus left free, within  time, to remove the economic institution that is “cost of living.”  

Indeed, this is what he and Silvia do, by spreading the one-million year time credit machine taken from Phillipe’s vault, they gift it to the time expiring pedestrians in front of the neon-colored charity doing business as “The Mission.”

In the 21st century, one questions how many in the audience would appreciate the The Scope Trial: http://law2.umkc.edu/faculty/projects/ftrials/scopes/statcase.htm

In it, Tennessee sought to criminalize any public school's cirricula that explained man's origins with an evolutionary premise. 

Nearly one-hundred years later, the reverse is true, any form of "spiritual" acceptance is banned from implied, generally accepted opinion.  

In reference to my earlier thoughts on the state of Hollywood, I contend "In Time" proved a bona fide production, and return to, an "adult movie" (in the 20th century sense of the phrase).

Tuesday, November 1, 2011

The Locution of Location

Value derives from scarcity (Marshallian Cross).

In a typical market place, higher price, alone, dictates increased demand (Veblen Economics)

EXAMPLES

Aaa) If I were to offer a share of stock after the any great market crash (e.g. Great Depression), few buyers would step up.  

Bbb) Previous to precious metals dramatic bull run this past decade, even today,  a discrediting song about the Hunt's Bros. failed to attempt to corner the silver market, was all but adenominational chorus.

So, when we turn to the topic of real estate, in today's market, there are many cynics who have been scorched by such securitized transactions.

I omit discussion of bond tranches, securities derivatives and what the difference between marketable title and a good old squatter may or may not be HERE.

THE POINT

There are key regions to consider when investing in real estate.  Given the state of today's real estate, I suggest that any reasonably solvent investor consider multi-state-border locations.  

For example, here's Billoxi, Mississippi;



Within an hour, either way, you have New Orleans, LA or Mobile AL.  These cities offer unique, wholly diverse hubs of cuisine, festivals and laws.  

Louisiana is the root from which Las Vegas now hails as it was the first state to sanction "gambling."  But cross into Mississippi, and you have to respect the flow of the Mississippi, only counties on said river, in addition to Native American Casinos, are permitted to have land based casinos.  Alabama all but banishes the idea (with limited forms of exceptions).  Of course, contact an attorney if you can't conceal fervent zeal to further "deal."

Another example is Page, Arizona.  Although it remains a relatively quaint economic magnet, Page has proven to deliver.  It is one of the many towns that harnessed the vast American water ways that provides our agricultural prowess, electricity generating genius, habitat richness and basic populace necessities.  

But the following natural jewels are what attracts me: 

Zion National Park 



The Grand Canyon 



Lake Powell.  



If, as a hypo, you invest in Page, such unique and dramatic opportunities await to pursue.

The Take Away

If finances permit, investing in real estate at this juncture will prove sound (assuming at least a stress-less five-year window).

Next, possess and demonstrate the autonomy to be an "adult in full" (credit Tom Wolfe) and evaluate real estate with a myriad of avenues that diversely provide variety; in immediately close proximity.  

Translation, don't let peer pressure close your vision into certain cities or counties named after fruit, or limit yourself to what you (have) know(n).  

As an American, the Founders intended for us to enjoy not only these many privileges, but vast continental immunity to discover, enrich and unravel.  Indeed, there is no other nation as closely bound to secured liberty, as the United States of America.  

None.   





Sunday, May 8, 2011

Nimrod O' Kelly

Many Americans might recall nearly half of America was once French.  Many grip onto the English and French love/hate relations, calling the French "frogs," and even calling a burger's company "freedom fries."  


But all states west of the (Mississippi) derive from this origin.  Each state's internal design, indeed, was to follow a new Cartesian innovation for distribution as well.  


That is, all states west of said river, naturally, have county boundaries.  From here, Thomas Jefferson's genius began in designing squares within the larger squares.  


"Townships" are six (square) miles on each square's side.  Individual square miles consist of 640 acres.  From here, land developers have, ever since, filed with the county and / or city to "subdivide" the parcels into their future developments... .


President Jefferson sent James Monroe, a fellow architect of our Constitution, to finalize one of our nation's greatest real estate contracts - The Louisiana Purchase.


From it, many territories were pioneered and settled.  Congress passed Donation Land Grants that incentivized westward expansion.


"Manifest Destiny" may ring memory's bell.  Yes, basins were recorded and mountains named.  But every natural and artificial boundary or landmark, once established by our colonies, eventually required recordation after private Americans laid their weathered, strained grasps to stake out their land.  


Each man was promised a certain amount of land if i) improved and ii) occupied for iii) a duration of time.  These are the promises from which more than half of our states have, to this day, been united as America.  


In Oregon, one square mile beckoned and presented 78 year old Nimrod's finest dream. 


Nimrod is the lead character and title of Richard Lansing's non-fiction.  


This Oregonian law professor tracks the fresh breath of the American spirit.  Tomorrow's get-up, chastened and dared to rebirth what the horizon might bear to gift to the industrious.  This was Nimrod's case.


Nimrod's trial was documented on multiple criminal dockets and pitted in numerous civil offices spanning America's two oceanic coasts.  


Not so different from today, he endured much competition and, later, conflicted falsity and violence towards his endeavors. 


Besides recommending the book, it adds depth to time and place.  The features, details and terms challenge the reader to step out of their obligatory and selfish routines, to re-examine their surroundings, to dream of new "back-to-the-future" possibilities.


This is an American story of a man born at our country's penning, tracing his ambitions through our nation's internal civil strife.  With accounts and records extending into the 20th century, it is a fitting reading in the 21st.