I devote this book to my family who were loving enough to support my work despite their fear of who may read it.

Thomas Jefferson:

1. "When the government fears people there is liberty; when the people fear government there is tyranny"

2. "The good government is the one that governs as less as possible"

3. "Republic, ma'm… if you can keep it"

James Medison:

"The people, not the government, possess the absolute sovereignty"

Attributed to O. Bismarck:

The history lessons teach us that history lessons don't teach us at all"

Observation:

"Life is built out of bricks of paradoxes"

Proverb:

"Road to hell is paved with good intentions"

"Power corrupts, absolute power corrupts absolutely"

Tacitus:

"The more corrupt the state, the more it legislates"

R. Reagan:

"Government isn't solution to our problems. Government IS the problem."

T. Mann:

"Tolerance towards evil is a crime"

W. Churchill:

"civilisation is confronted with militant Mahommedanism".

"No stronger retrograde force exists in the world"

T. Edison:

"The strength of the Constitution, lies in the will of the people to defend it"

Attributed to Stalin :"It doesn't matter who votes– matters who counts the votes"

Me:

"The highest form of altruism is egoism because the only possible way to progress in society is the sum of individual successes. Prosperous and free country can consist only of prosperous and free -free from the government– individuals"

"There is no single survivable Nanny State in the world– it's dead end of civilization. Individual liberties and self-regulated free market with natural course of events is life of a nation while imposed by totalitarians artificial equality is a slow choking death sentence to a nation. "

"Free money is like narcotic: easy to start, hard to quit".

Folklore:

"Too big to fail" usually means "Too big to survive without paxpayor's subsidy".

I. Introduction

This book's content is primarily my personal opinions backed with some citations, quotations and basic popularized science to project the future trends. An academic level of such analysis would require many scientists and thousands of volumes. When the draft started getting closer to a thousand pages then I decided to cut mercilessly to a hundred pages that would contain the essence of the book, the summary, but the stubborn book started growing again. So, I had to stop it abruptly and publish as raw as it is. Thus, we shall be satisfied with just a short mini-version that gives a general idea, scatchy main points and the criteria for analysis that you can do yourself to follow my train of thoughts (rather than expanding to a thoroughly discussed and proven monograph). The format is a diary type draft written in short stretches almost every night after I was coming back home from hard work in a hospital. Why me? I lived in many countries with different systems and I have first hand experience with totalitarians of different kinds (communists, socialists, statists, islamists, nationalists and the like), I've a scientific mind and research background and my mind is not tainted by ideological filters, including political correctness. I just see things as they are, and I am not afraid to show the truth. Originally this was supposed to be published in the end of 2008, but the work turned out to be overwhelmingly burdensome and time consuming. May be, for better because it's safer now– in 2008 I'd be one of the very few critisizing the leftist regime with high risk of retalitation by the Obama's regime. Tell me who your friends are and I shall tell you who you are. All Obama's friends were America's haters. Now majority of Americans have woken up to realize what a huge mistake they made electing their enemy to rule them. Hopefully, it's not too late, although for sure it will be clear only on Jan. 20, 2011. There is still huge risk that Obama will push America on the railroad to serfdom where the next station is Greece and the final destination is Sudan. That's what Obama does right now in his native Kenya trying to change secular constitution to Shariah law based one. All it takes is to create another crisis– and Obama is very good at that– and then announce the Marshall law with all elections and Bill of rights suspended. If Stalin and Hitler did so– why another totalitarian can't?). Provoked by Obama's inaction Iran or North Korea might start a nuclear crisis, giving Obama a perfect excuse to postpone the elections until the next millenium and to cancel the result of November elections. Americans are so used to be in position to vote out the government they dislike that they can't imagine it's not granted , but it may be not the case anymore. When totalitarians grab enough power to the point of no return– then it doesn't matter anymore what WE, THE PEOPLE want. As Stalin was saying :"It doesn't matter who votes– matters who counts the votes". When tricked by Obama and misinformed by leftist media Americans elected Obama, they didn't realize that the Left wants to create a Nanny State, and that that would be a death sentence to America because Nanny State inevitably ruins demographics and the country starts dying out. There is no single Nanny State in the world that can survive– Europe has 1.38 children per woman including Muslims, Japan 1.3, S. Korea 1.1, Canada 1.4 and so forth. We shall discuss later in details why it is so, but it is just a fact of the matter, they all are doomed. The US is not completely welfare state yet, so the demographics are bearable now with 2.2 children per woman, but if the Democrats will shove Eurosocialism into throats of Americans– America will go extinct too. Each consequent shrinking generation will be taxed heavier and heavier just to pay back at least some of the embezzled by the government retirement funds until society implodes. Even now unfunded liabilities on Social Security alone are $106 trillion. Not billion! Scandinavian countries already tax 70% of income, and it will not take long until the domino effect, chain reaction from Greece will destroy the whole European Union within 5 years. Socialism never worked and never will, it is against the laws of nature (we shall discuss it later in details too). You choose redistributive society, the Nanny State under false pretext of "equality"– then you choose the path of self-destruction, slow choking death of the nation. You choose individual liberties and free market– then you choose life, prosperity and freedom. That's the only 2 choices available.

First let us identify the main problems in the world and their causes that might give a clue how to solve them. They say– a theory that explains everything explains nothing. However, let's pick the challenge because we might be able to analyze virtually all the problems in societies using universal criterion of DEGREE OF FREEDOM. In the chapter about self-regulation and feed back we will study on the deeper level what is the scientific base of that, what the laws of nature govern these processes, but for now it is good enough to observe that freedom is THE most potent engine of progress. History had conducted both longitudinal and parallel studies such as accidental experiments with the same people divided politically– North and South Korea, East and West Germany, and every time the degree of freedom was directly proportional to the productivity and, thus, prosperity of the society. Now Northkoreans even physically several inches shorter than Southkoreans due to chronic starvation. When the freest in the world original American Constitution was created over 200 years ago America had very little human capital, financial capital, science, 'know how' and so forth. All Americans had was freedom, namely most important freedom-freedom from the government! America became the greatest country in the world only because it WAS the freest country in the world. People knew they can work hard and retain the fruits of their hard labor, and it was good enough to attract human capital, finances, technology and science from all over the world. America became the beacon of freedom, the freest country in the world, and, thus, the most prosperous country in the world. With the accelerating and worsening since 1913 encroachment of totalitarian "progressivism" Americans started losing their liberties along with worsening degree of freedom of the self-regulated market place, and, hence, the economic positions. Last 10 years America's share in the world's GDP dropped from 32 to 24%, and under Obama's regime keeps dropping faster and faster. As Dan Kennedy remarked regarding Obama, "if you set up to destroy our entire economic engine on purpose, you'd be hard pressed to achieve more in as short a time, at as fast a pace"

So, the governments in many countries say they try hard to achieve prosperity, but it seemingly gets even worse. Why? Because they don't treat the root cause of the problems , which is the lack of freedom = insuffiently free market, which in turn is because of too much government! Government IS the problem. You cannot extinguish fire by pouring more gasoline, as you cannot solve the "too much government = not enough freedom" problem, using the same government. All a government has to do is NOTHING beside guarding borders– just get it out of the way, don't let it touch anything with government's dead hand, let the gentle and invisible hand of self-regulated free market optimize society and economy. Whatever government touches– it hurts it, so let the government touch only our enemies both abroad and the criminals inside the country. Government has no business whatsoever meddling with economy or society under false pretext of "interstate commerce". 300 million of Americans are smart enough to manage their own affairs better than any stupid bureaucrat thousand miles away from them. One, each American knows the state of his/her affairs better than anyone in the world. Two, each one has incentives, the tightest positive and negative feed back loop from his/her actions. So, they have the highest chance of making the right decision. Three, if someone srews up– he/she screws up only him/herself while when Washington, DC, as always, screws up– they screw up whole country with repercussions all over the world. Why? Because they don't have a feed back from their actions or inactions, no liability at least until next elections, and with cover up of 96% totalitarian "progressive" MSM they might escape any liability at all! And may be even more important– the society and the economy is an extremely complex multifactorial system in a state of dynamic stability with trillions of interactions in real time of billions of factors pushing in different directions , sometimes with antagonistic purposes, with very narrow window of homeostasis, of dynamic stability, of equilibrium. Thus, no government, no group of experts can possibly comprehend this immensely colossal conglomerate of running engines, lest predict, plan and direct to improve the outcome. There's zero chance of successful government regulations because it is against the laws of nature, including the human nature and the laws of free market, and the result is that the government cure is always worse than the original ill due to the unintended consequences , but even after thousands of failures of socialism those delusional leftists from Chavez to Obama keep trying now. No "social engineering" can change the human nature, which is result of 4.5 billion years of natural selection; no "messiah" in the White House can change the laws of nature to fulfill his dreams about ecologically clean perpetual motion machine, or any other delusional ideas. Only self-regulated free market with the feedback loop can achieve the optimal outcome, the best possible compromise between all the variables. Free market is the only engine of progress, free market has created everything around us– all goods and services, the drastically improved quality of life, electronics and informatics while the instrument of coercion, the government, in exchange for the taken from our pocket money created nothing good: the word "public" became synonimous to poor quality from public toilets and schools to public women. Thanks to the free market, todays "poor" have better life quality than a prince 300 years ago. "Progressives" contributed to the society even less than the coercive government, which means negative numbers, because small and accountable government is a necessary evil but the "progressives" are not, and they are not more progressive than progressive syphilis. All they do is breaking fabric of society to as many as possible groups and then antagonizing them as in Roman "Divide et impera" = "Divide and conquer"; perpetuating discrimination; hurting economy, prosperity and individual liberties in the pursuit of imposed through the coersive government utopian "social justice and equality", which each time turns out to be an equality of bums in the gutter with the exception of the ruling "enlightened" leftist elite. So, all the choices in America's elections boil down to whether to vote for life or for the death of the nation; to vote for conservatives (which mean voting for demographic survival, for Free Market that is based on the unintended benefits of the productive "greed" with ensuing economic prosperity and individual freedoms) or to vote for the "progressive" totalitarian Democratic socialists with "social justice " demagoguery and unintended consequences of their destructive greed for people's powers and money.

However, let's discuss this matter in further chapters.