Jim’s Rant For The Day. Cap’n Crunch’s USA Collapse Threat.
Here’s a fun mind experiment for ya to go with your morning coffee, but first the facts.
In the mid 60’s Cap’n Crunch cereal placed a yellow toy Bo’sun Mate whistle in each box as a prize. That whistle blew a perfect 2600 hertz, which just happened to be the same tone that the phone company used to switch phones to a long distance call. The tone meant that the payphone had collected the required money or the call data was prepared to be captured to add to your phone bill later. Pranksters learned that by using the whistle they could talk all over the world for free and the phone company could not stop them. One music major was getting rich in the Fraternity house by just whistling the tone. In fact, that is how the phone company discovered the problem; there was no money in the most popular payphone on campus.
At the time, there was just one phone company, Massachusetts Bell or Ma bell as it was called. Congress went into panic and immediately broke up Ma Bell into smaller companies so that if one went bankrupt another could take over. The fear was rightly that if Ma bell closed the U.S. would collapse economically from loss of phone service to carry on commerce. Congress also funded research to immediately replace the telephone tone technology to cut out Cap’n Crunch.
Now here’s the mind experiment. First imagine what would have happened if congress had not gotten involved and Ma Bell closed it’s doors. Do you agree that we would have seen some type of collapse?
Now multiply that same problem by 100 versions of that whistle impacting other industries, and at the same time imaging our do-nothing congress of today fixing that problem. That is what we actually have staring us in the face now. All of these bubbles, including derivatives, stock market manipulation, precious metals price games, bank fraud, real estate mortgage fraud, health insurance collusion and price fixing, pharmaceutical fraud etc. , they are so far out of control the congress is stymied.
Now, the final step in the experiment. Do you see the government clearing all of this mess up and taking us back into calm waters, or do you see the U.S. going down in the storm?